[Federal Register Volume 88, Number 53 (Monday, March 20, 2023)]
[Notices]
[Pages 16697-16700]
[FR Doc No: 2023-05542]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97133; File No. SR-Phlx-2023-08]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 7,
Section 4 Regarding Multiply Listed Options Fees

March 14, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 1, 2023, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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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 Substance
of the Proposed Rule Change

    The Exchange proposes to amend Phlx's Pricing Schedule at Options
7, Section 4, ``Multiply Listed Options Fees (Includes options
overlying equities, ETFs, ETNs and indexes which are Multiply Listed)
(Excludes SPY).''
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/phlx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The

Exchange has prepared summaries, set forth in sections A, B, and C
below, of the most significant aspects of such statements.

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

1. Purpose
    Phlx proposes to amend its Pricing Schedule at Options 7, Section
4, ``Multiply Listed Options Fees (Includes options overlying equities,
ETFs, ETNs and indexes which are Multiply Listed) (Excludes SPY).''
    Recently, Phlx established a QCC Growth Tier Rebate within section
B of Options 7, Section 4 to encourage Phlx members and member
organizations to transact a greater number of QCC Orders on Phlx. In
order to qualify for the QCC Growth Tier Rebate, a member's or member
organization's total floor transaction,\3\ and electronic QCC Orders
and Floor QCC Orders volume (``QCC transaction volume'') must exceed
12,500,000 contracts in a given month. In addition to the
aforementioned criteria, the member's or member organization's
respective Phlx House Account \4\ must execute QCC transaction volume
of 250,000 or more contracts in excess of the member's or member
organization's QCC transaction volume in January 2023. For members or
member organizations with no QCC transaction volume in January 2023,
the QCC transaction volume, in their respective Phlx House Account,
must be 250,000 or more contracts in a given month.
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    \3\ The term ``floor transaction'' is a transaction that is
effected in open outcry on the Exchange's trading floor. See Phlx
Options 7, Section 1(c). Of note, the term ``floor transaction'' is
more broadly defined than the term ``Open Outcry Floor Transaction''
which is discussed herein and is a subset of the term ``floor
transaction.''
    \4\ Each Phlx member or member organization is required to
establish one Phlx House Account with the Exchange's Membership
Department. Only one Phlx House Account is required to transact
business on Phlx. The Exchange assesses a $50.00 a month account fee
for this account as provided for within Options 7, Section 8A. A
Phlx member or member organization has the option of acquiring
multiple Phlx House Accounts depending on a member's or member
organization's business model and how they elect to organize their
business.
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    Further, a member or member organization may alternatively achieve
the QCC Growth Tier Rebate if a member's or member organization's Open
Outcry Floor Transaction \5\ volume in a given month exceeds 500,000
contracts. In addition to the aforementioned criteria, a member's or
member organization's respective Phlx House Account must execute QCC
transaction volume of 2,500,000 or more contracts in excess of the
member's or member organization's QCC transaction volume in January
2023. For members or member organizations with no QCC transaction
volume in January 2023, the QCC transaction volume, in their respective
Phlx House Account, must be 2,500,000 or more contracts in a given
month.
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    \5\ The term ``Open Outcry Floor Transaction'' includes all
transactions executed in open outcry on Phlx's trading floor except:
(1) dividend, merger, short stock interest, reversal and conversion,
jelly roll, and box spread strategy executions as defined in this
Options 7, Section 4; (2) Cabinet Transactions as defined in Options
8, Section 33; and (3) Customer-to-Customer transactions.
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    Today, the Exchange pays the QCC Growth Tier Rebates per Phlx House
Account. Specifically, the Exchange pays a $0.20 per contract QCC
Growth Tier Rebate on a QCC Order comprised of a Customer or
Professional order on one side and a Lead Market Maker, Market Maker,
Broker-Dealer, or Firm order on the other side. Further, the Exchange
pays a $0.26 per contract QCC Growth Tier Rebate on a QCC Order
comprised of a Lead Market Maker, Market Maker, Broker-Dealer, or Firm
order on one side and a Lead Market Maker, Market Maker, Broker-Dealer,
or Firm order on the other side.\6\
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    \6\ Members and member organizations are entitled to one QCC
Rebate in a given month, either the QCC Rebate in Section A or the
QCC Growth Tier Rebate in Section B in a given month, but not both.
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    At this time, the Exchange proposes to continue to pay the QCC
Growth Tier Rebate on all qualifying executed electronic QCC Orders, as
defined in Options 3, Section 12, and Floor QCC Orders, as defined in
Options 8, Section 30(e), except where the transaction is either: (i)
Customer-to-Customer; (ii) Customer-to-Professional; (iii)
Professional-to-Professional; or (iv) a dividend, merger, short stock
interest, reversal and conversion, jelly roll, and box spread strategy
executions (as defined in Options 7, Section 4).
    The proposed exclusions are similar to the exclusions for payments
on QCC Rebates in section A of Options 7, Section 4. Of note,
currently, QCC Growth Tier Rebates are not paid on Customer-to-
Customer, Customer-to-Professional, or Professional-to-Professional QCC
Orders because the QCC Growth Tier Rebate specifies it is only paid on
a QCC Order comprised of a Customer or Professional order on one side
and a Lead Market Maker, Market Maker, Broker-Dealer, or Firm order on
the other side, and a QCC Order comprised of a Lead Market Maker,
Market Maker, Broker-Dealer, or Firm order on one side and a Lead
Market Maker, Market Maker, Broker-Dealer, or Firm order on the other
side. The Exchange is including these exclusions to the QCC Growth Tier
Rebate to mirror the exclusions within QCC Rebates in section A.
    Notwithstanding, the limitation on eligible orders to receive a QCC
Growth Tier Rebate, the Exchange believes that the QCC Growth Tier
Rebate will continue to encourage market participants to send QCC
orders to Phlx for execution in an effort to earn higher QCC Rebates.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\8\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \9\
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    \9\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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    Likewise, in NetCoalition v. Securities and Exchange Commission
\10\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of
a market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\11\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \12\
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    \10\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \11\ See NetCoalition, at 534-535.
    \12\ Id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S.

national market system, buyers and sellers of securities, and the
broker-dealers that act as their order-routing agents, have a wide
range of choices of where to route orders for execution'; [and] `no
exchange can afford to take its market share percentages for granted'
because `no exchange possesses a monopoly, regulatory or otherwise, in
the execution of order flow from broker dealers' . . . .'' \13\
Although the court and the SEC were discussing the cash equities
markets, the Exchange believes that these views apply with equal force
to the options markets.
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    \13\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
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    The Exchange's proposal to amend the QCC Growth Tier Rebate to pay
the QCC Growth Tier on all qualifying executed electronic QCC Orders
except where the transaction is either Customer-to-Customer; Customer-
to-Professional; Professional-to-Professional; or a dividend, merger,
short stock interest, reversal and conversion, jelly roll, and box
spread strategy executions (as defined in Options 7, Section 4) is
reasonable because despite the limitation on eligible orders to receive
a QCC Growth Tier Rebate, the Exchange believes that this rebate will
continue to provide incentives for members and member organizations to
engage in substantial amounts of trading activity which would serve to
bring additional open outcry liquidity to the trading floor and
additional QCC Order Flow to Phlx. This incentive may also encourage
members and member organizations to commence sending such order flow to
Phlx for the opportunity to earn this rebate. The proposed exclusions
are similar to the exclusions for payments on QCC Rebates in section A
of Options 7, Section 4.\14\
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    \14\ Of note, currently, QCC Growth Tier Rebates are not paid on
Customer-to-Customer, Customer-to-Professional, or Professional-to-
Professional QCC Orders because the QCC Growth Tier Rebate specifies
it is only paid on a QCC Order comprised of a Customer or
Professional order on one side and a Lead Market Maker, Market
Maker, Broker-Dealer, or Firm order on the other side, and a QCC
Order comprised of a Lead Market Maker, Market Maker, Broker-Dealer,
or Firm order on one side and a Lead Market Maker, Market Maker,
Broker-Dealer, or Firm order on the other side. The Exchange is
including these exclusions to the QCC Growth Tier Rebate to mirror
the exclusions within QCC Rebates in section A.
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    The Exchange's proposal to amend the QCC Growth Tier Rebate to pay
the QCC Growth Tier on all qualifying executed electronic QCC Orders
except where the transaction is either Customer-to-Customer; Customer-
to-Professional; Professional-to-Professional; or a dividend, merger,
short stock interest, reversal and conversion, jelly roll, and box
spread strategy executions (as defined in Options 7, Section 4) is
equitable and not unfairly discriminatory because any member or member
organization may qualify for the QCC Growth Tier Rebate. Further, the
Exchange will uniformly apply the proposed exceptions for eligible QCC
Orders.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Inter-Market Competition
    The proposal does not impose an undue burden on inter-market
competition. The Exchange believes its proposal remains competitive
with other options markets and will offer market participants with
another choice of where to transact options. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited.
Intra-Market Competition
    The proposed amendments do not impose an undue burden on intra-
market competition. In terms of intra-market competition, the Exchange
does not believe that its proposals will place any category of market
participant at a competitive disadvantage. The Exchange believes that
the proposed amendments to the QCC Rebate Growth Tier Rebates will
continue to provide incentives for members and member organizations to
engage in substantial amounts of trading activity which would serve to
bring additional open outcry liquidity to the trading floor and
additional QCC Order Flow to Phlx.
    The Exchange's proposal to amend the QCC Growth Tier Rebate to pay
the QCC Growth Rebates on all qualifying executed electronic QCC Orders
except where the transaction is either Customer-to-Customer; Customer-
to-Professional; Professional-to-Professional; or a dividend, merger,
short stock interest, reversal and conversion, jelly roll, and box
spread strategy executions (as defined in Options 7, Section 4) does
not impose an undue burden on competition because any member or member
organization may qualify for the QCC Growth Tier Rebate. Further, the
Exchange will uniformly apply the proposed exceptions for eligible QCC
Orders.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\15\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-Phlx-2023-08 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2023-08. This file
number should be included on the

subject line if email is used. To help the Commission process and
review your comments more efficiently, please use only one method. The
Commission will post all comments on the Commission's internet website
(http://www.sec.gov/rules/sro.shtml). Copies of the submission, all
subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all
written communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly.
    All submissions should refer to File Number SR-Phlx-2023-08 and
should be submitted on or before April 10, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05542 Filed 3-17-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Notices]
[Pages 42563-42566]
[FR Doc No: 2015-17490]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75435; File No. SR-EDGX-2015-32]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use of EDGX Exchange, Inc.

July 13, 2015.
    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 July 2, 2015, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to amend its fees and rebates
applicable to Members \5\ and non-Members of the Exchange pursuant to
EDGX Rule 15.1(a) and (c) (``Fee Schedule'') to: (i) Delete fee codes
AA, AM, MT and current footnotes 12 and 13; (ii) amend fee code MM by:
(a) Updating its description, (b) deleting current footnote 11, and (c)
replacing the fee of $0.00120 per share for orders yielding fee code MM
with a rebate of $0.00150 per share for securities priced at or above
$1.00; (iii) add new fee code HI and revised footnote 11; and (iv) add
new fee code VI.
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    \5\ The term ``Member'' is defined as ``any registered broker or
dealer, or any person associated with a registered broker or dealer,
that has been admitted to membership in the Exchange. A Member will
have the status of a ``member'' of the Exchange as that term is
defined in section 3(a)(3) of the Act.'' See Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange submitted a proposed rule change with the Commission,
for July 6, 2015 effectiveness, to better align certain Exchange rules
and system functionality with that currently offered by its affiliate,
BATS Exchange, Inc. (``BZX'').\6\ In sum, these changes amended: (i)
Rule 11.6(l)(1)(B) by replacing the Hide Not Slide Re-Pricing \7\
instruction with a Display-Price Sliding \8\ instruction; (ii) Rule
11.6(l)(3) to provide that orders with a Non-Displayed \9\ instruction
and orders of Odd Lot \10\ size priced better than the National Best
Bid or Offer (``NBBO'') will no longer be ranked at the mid-point of
the NBBO; and (iii) Rule 11.8(d) to replace MidPoint Match Orders \11\
with MidPoint Peg Orders,\12\ the operation of which is identical to
the operation of Midpoint Peg Orders on BZX \13\ and EDGA.\14\ These
proposed changes resulted in a change to system functionality
concerning the interaction of orders at the midpoint of the NBBO. As a
result the above filing, the Exchange proposes the following amendments
to its Fee Schedule concerning fees and rebates for orders executed at
the midpoint of the NBBO: (i) Delete fee codes AA, AM, MT and current
footnotes 12 and 13; (ii) amend fee code MM by: (a) Updating its
description, (b) deleting current footnote 11, and (c) replacing the
fee of $0.00120 per share for orders yielding fee code MM with a rebate
of $0.00150 per share for securities priced at or above $1.00; (iii)
add new fee code HI and revised footnote 11; and (iv) add new fee code
VI. These amendments are also designed to simplify the fee and rebate
structure for orders that execute between the NBBO.
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    \6\ See SR-EDGX-2015-30 [sic] available at www.batstrading.com/regulation/rule_filings/edgx. A description of the changes proposed
in this filing may be found in BATS EDGX Exchange Modifications,
Effective July 6, 2015, available at http://cdn.batstrading.com/resources/release_notes/2015/BATS-EDGX-Exchange-Modifications-Effective-July-6-2015.pdf. [sic] (``EDGX BZX Harmonization
Filing'').
    \7\ See current Rule 11.6(l)(i)(B) for a description of the Hide
Not Slide instruction. See also the EDGX BZX Harmonization filing,
supra note 6.
    \8\ See id for a description of the Display-Price Sliding
instruction.
    \9\ See Exchange Rule 11.6(e)(2).
    \10\ See Exchange Rule 11.8(s)(2).
    \11\ A MidPoint Match Order is a non-displayed Market Order or
Limit Order with an instruction to execute only at the midpoint of
the NBBO. See current Exchange Rule 11.8(d).
    \12\ MidPoint Peg Orders are identical to MidPoint Match Orders
but for the following differences: (i) Midpoint Peg Order will be
able to execute at prices equal to or better than the midpoint of
the NBBO, and not just at the midpoint of the NBBO as is currently
the case with MidPoint Match Orders; and (ii) unlike MidPoint Match
Orders, MidPoint Peg Orders may be coupled with a Post Only
instruction. See the EDGX BZX Harmonization Filing, supra note 6.
    \13\ See BZX Rule 11.9(c)(9).
    \14\ See EDGA Rule 11.8(d).
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Deletion of Fee Codes AA, AM, MT and Footnotes 12 and 13
    The Exchange proposes to delete fee codes AA, AM, MT and related
footnotes 12 and 13.
    Fee Code AA. The Exchange appends fee code AA to buy and sell
MidPoint Match Orders that inadvertently match against each other and
share the same MPID (i.e., internalized trade). MidPoint Match Orders
yielding fee code AA are charged a fee of $0.00120 per share in
securities priced at or above $1.00 and 0.15% of the dollar value in
securities priced below $1.00.
    The Exchange now proposes to delete fee code AA. As discussed
above, EDGX has filed a proposed rule change with the Commission to
replace MidPoint Match Orders with MidPoint Peg Orders as of July 6,
2015. Therefore, fee code AA will no longer be necessary as of that
date. The Exchange notes that buy and sell MidPoint Peg Orders that
inadvertently match against each other and share the same MPID would
now yield either fee codes EA or ER, which are currently applied to
internalized trades.\15\
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    \15\ Under fee code EA, the side of an internalized trade that
adds liquidity is charged a fee a fee of $0.00045 per share in
securities priced at or above $1.00 and, like current fee code AA,
0.15% of the dollar value of the execution in securities priced
below $1.00. Under fee code ER, the side of an internalized trade
that removed liquidity is subject to the same rates as fee code EA.
Under both fee codes EA and ER, if a Member adds an ADV of at least
10,000,000 shares, then the Member's rate for internalization (fee
codes 5, EA or ER) decreases to $0.0001 per share per side. See EDGX
Fee Schedule available at http://batstrading.com/support/fee_schedule/edgx/.

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    Fee Code AM and Footnote 12. The Exchange appends fee code AM to
orders that add liquidity at the midpoint of the NBBO using: (i) An
order with a Non-Displayed instruction; or (ii) an order with a
Discretionary Range \16\ instruction. Under footnote 12, an order that
adds liquidity at the midpoint of the NBBO using an order with a Non-
Displayed instruction will receive fee code AM where it receives no
price improvement relative to its limit price and executes against the
following orders that receive fee code MT: A MidPoint Match order or an
order with a Non-Displayed and Post Only \17\ instruction. Footnote 12
further states that an order that adds liquidity at the midpoint of the
NBBO using an order with a Discretionary Range instruction will receive
fee code AM where it executes against a MidPoint Match order. Orders
that yield fee code AM pay no fee nor do they receive a rebate in
securities priced above or below $1.00.
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    \16\ See Exchange Rule 11.6(d).
    \17\ See Exchange Rule 11.6(n)(4).
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    The Exchange proposes to delete fee code AM and current footnote 12
as they would be no longer necessary due to the EDGX BZX Harmonization
Filing. Going forward, an order with a Non-Displayed instruction that
adds liquidity at the midpoint of the NBBO and receives price
improvement would be eligible to yield proposed fee code HI, which is
discussed in detail below and also charges no fee nor provides a rebate
in securities priced above or below $1.00. An order with a Non-
Displayed instruction that adds liquidity at the midpoint of the NBBO
and does not receive price improvement would be eligible to yield
existing fee code HA, which is yielded on orders with a Non-Displayed
instruction that add liquidity.\18\ Under the EDGX BZX Harmonization
Filing, an order with a Discretionary Range instruction that is posted
to the EDGX Book and executes against an incoming order with a Post
Only instruction at the midpoint of the NBBO would pay the applicable
fee for removing liquidity and the incoming order would receive the
applicable rebate.\19\
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    \18\ Orders that yield fee code HA receive a rebate of $0.00150
per share in securities priced at or above $1.00 and $0.00003 per
share in securities priced below $1.00.
    \19\ See Exchange Rule 11.6(d), as amended by the EDGX BZX
Harmonization Filing, supra note 6.
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    Fee Code MT and Footnote 13. The Exchange appends fee code MT to
orders that remove liquidity at the midpoint of the NBBO using: (1) A
MidPoint Match order; (2) an order with a Hide Not Slide instruction;
or (3) an order with a Non-Displayed and Post Only \20\ instruction
that receives price improvement relative to its limit price. Under
footnote 13, an order with a Hide Not Slide instruction that removes
liquidity at the midpoint of the NBBO will receive fee code MT if such
order also contains a Post Only instruction and the difference between
the NBB and NBO is $0.01. Footnote 13 further states that the Exchange
will charge the standard fee to remove liquidity to any order with a
Hide Not Slide instruction that does not contain a Post Only
instruction and to any order with a Hide Not Slide and Post Only
instruction that removes liquidity at the midpoint of the NBBO when the
difference between the NBB and NBO is larger than $0.01. Orders
yielding fee code MT are charged a fee of $0.00120 per share in
securities priced at or above $1.00 and 0.30% of the dollar value in
securities priced below $1.00.
---------------------------------------------------------------------------

    \20\ See Exchange Rule 11.6(n)(4).
---------------------------------------------------------------------------

    In the EDGX BZX Harmonization Filing, the Exchange decommissioned
the MidPoint Match Order and replaced it with the MidPoint Peg Order.
The Exchange also replaced the Hide Not Slide instruction with Display-
Price Sliding. As a result of these changes, fee code MT and footnote
13 are no longer necessary as the MidPoint Match Order and Hide Not
Slide instruction would no longer be available. As a result of deleting
fee code MT, orders that remove liquidity at the midpoint of the NBBO
will now be charged EDGX's standard removal rate of $0.00290 per share
regardless of the difference between the NBB and NBO.
Fee Code MM and Footnote 11
    Currently, fee code MM is applied to orders that add liquidity at
the midpoint of the NBBO using: (i) A MidPoint Match Order; (ii) an
order with a Hide Not Slide instruction; or (iii) an order with a Non-
Displayed instruction. Under footnote 11, an order with a Non-Displayed
instruction will receive fee code MM where it receives price
improvement relative to its limit price and it executes against the
following orders that receive fee code MT: A MidPoint Match Order, an
order with a Hide Not Slide instruction and Post Only instruction when
the difference between the NBB and NBO is $0.01, or an order with a
Non-Displayed and Post Only instruction. Orders yielding fee code MM
are charged a fee of $0.0012 per share in securities priced at $1.00 or
above and receive a rebate of $0.00003 per share in securities priced
below $1.00.
    As discussed above, in the EDGX BZX Harmonization Filing the
Exchange decommissioned the MidPoint Match Order and replaced it with
the MidPoint Peg Order as well as replaced the Hide Not Slide
instruction with Display-Price Sliding. As a result of these changes,
fee code MM is to be amended to remove references to MidPoint Match
Orders and the Hide Not Slide instruction. The Exchange also proposes
to amend the description of the of fee code MM to state that fee code
MM will be applied to Non-Displayed orders that add liquidity using a
MidPoint Peg Order. Footnote 11 is proposed to be deleted as those
conditions would no longer be necessary to receive fee code MM. Lastly,
the Exchange proposes to replace the fee of $0.00120 per share for
orders yielding fee code MM in securities priced at or above $1.00 with
a rebate of $0.00150 per share. Orders yielding fee code MM in
securities priced below $1.00 would continue to receive a rebate of
$0.00003 per share.
    In the EDGX BZX Harmonization Filing discussed above, the Exchange
decommissioned the MidPoint Match Order and replaced it with the
MidPoint Peg Order as well as replaced the Hide Not Slide instruction
with Display-Price Sliding. As a result of these changes, fee code MM
is being amended to reflect that the MidPoint Match Order and the Hide
Not Slide instruction would no longer be available. Going forward,
orders with a Non-Displayed instruction that add liquidity and receive
price improvement will be eligible to yield proposed fee code HI
discussed below. In addition, an order with a Display-Price Sliding
instruction that receives price improvement, which may include an
execution at the midpoint of the NBBO, would be eligible to yield
proposed fee code VI discussed below.
Fee Codes HI, VI and Footnote 11
    The Exchange proposes to add new fee code HI and revised footnote
11. Proposed fee code HI will be yielded to orders with a Non-Displayed
instruction that add liquidity and receive price improvement, as
described below. Such orders that yield fee code HI will pay no fee nor
receive a rebate for executions in securities price at or above $1.00
as well as in securities priced below $1.00. Footnote 11 would be
appended to fee code HI and would state that fee code HI will not be
available to the Reserve Quantity of an order or to orders with a
Discretionary Range instruction. Orders with a Non-Displayed
instruction that add liquidity that previously received fee code MM
will

now receive fee code HI where they receive price improvement relative
to its limit price.
    The Exchange also proposes to adopt new fee code VI, which would be
yielded on Displayed orders that are subject to price sliding that add
liquidity and receive price improvement, as described below. Such
orders that yield fee code VI will pay no fee nor receive a rebate for
executions in securities price at or above $1.00 as well as in
securities priced below $1.00.
    As part of the EDGX BZX Harmonization Filing, under Rule
11.10(a)(4)(D) the Exchange will execute the incoming order to sell
(buy) against a resting order with a Non-Displayed instruction or an
order subject to Display-Price Sliding at one-half minimum price
variation less (more) than the price of an order displayed on the EDGX
Book. In such case, an order with a Non-Displayed instruction or an
order subject to a Display-Price Sliding instruction resting on the
EDGX Book would receive price improvement relative to its limit price.
Because such resting orders will receive price improvement, the
Exchange proposes to execute the orders yielding fee codes HI or VI
without providing a rebate or charging a fee. The Exchange believes
that price improvement received for executions of orders with a Non-
Displayed instruction or subject to Display-Price Sliding (rather than
price improvement and a liquidity rebate) is appropriate because the
price improvement received will offset the change in the fee structure
for such orders. The Exchange notes that BZX also offers fee codes HI
and VI on the same terms and for the same rates.\21\
---------------------------------------------------------------------------

    \21\ See BZX Fee Schedule available at http://batstrading.com/support/fee_schedule/bzx/.
---------------------------------------------------------------------------

Implementation Date
    The Exchange proposes to implement these amendments to its Fee
Schedule on July 6, 2015.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of section 6 of the Act,\22\ in general, and
furthers the objectives of section 6(b)(4),\23\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive. The proposed rule change reflects a competitive
pricing structure designed to incent market participants to direct
their order flow to the Exchange. The Exchange believes that the
proposed rates are equitable and non-discriminatory in that they apply
uniformly to all Members. The Exchange believes the fees and credits
remain competitive with those charged by other venues and therefore
continue to be reasonable and equitably allocated to Members.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f.
    \23\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The proposed fee changes are necessary due to the EDGX BZX
Harmonization Filing, which is designed to provide consistent
functionality between the Exchange and BZX, thereby reducing complexity
and streamlining duplicative functionality, resulting in simpler
technology implementation, changes and maintenance by Users of the
Exchange that are also participants on BZX. Likewise, the proposed fee
changes will streamline its pricing for executions that occur at the
midpoint of the NBBO and provide a consistent pricing scheme between
the Exchange and BZX, also reducing complexity for Members of the
Exchange that are also participants on BZX. The proposed rule changes
do not propose to implement new or unique pricing that is not currently
available on BZX. As such, the proposed rule change would provide for
the equitable allocation of reasonable dues, fees and other charges
among its Members and other persons using its facilities.
    Specifically, the Exchange believes it is equitable and reasonable
to delete fee codes AA, AM, and MT as well as current footnotes 11, 12,
and 13, as the functionality necessary to yield these fee codes will be
decommissioned or modified as a result of the EDGX BZX Harmonization
Filing. As explained above, functionality that is to be retained by the
Exchange will be captured under existing fee codes or proposed fee
codes HI and VI. For the same reasons, the Exchange also believes it is
equitable and reasonable to amend the description of fee code MM to
reflect the functionality changes included in the EDGX BZX
Harmonization Filing. Furthermore, the Exchange believes it is
equitable and reasonable to replace its fee of $0.00120 per share for
securities priced above $1.00 with a rebate of $0.00150 per share. The
Exchange believes that providing a rebate to MidPoint Peg Orders that
add liquidity is a reasonable means by which to incentive Members to
provide liquidity at the midpoint of the NBBO. In addition, the
Exchange believes that by encouraging the use of MidPoint Peg Orders,
Members seeking price improvement would be more motivated to direct
their orders to EDGX because they would have a heightened expectation
of the availability of liquidity at the midpoint of the NBBO.
    Because orders that yield fee codes HI or VI will receive price
improvement, the Exchange proposes to execute the orders without
providing either a liquidity rebate or charging a fee. The Exchange
believes that price improvement received for executions of orders with
a Non-Displayed instruction or subject to Display-Price Sliding (rather
than price improvement and a liquidity rebate) is appropriate because
the price improvement received will offset the change in the fee
structure for such orders. The Exchange also believes that proposed fee
code VI and HI as well as proposed footnote 11, are equitable and
reasonable because they are identical to like named fee codes HI and VI
offered by BZX which are offered on the same terms and for the same
rate.\24\
---------------------------------------------------------------------------

    \24\ See supra note 21.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange notes that the
proposal will streamline its pricing for executions that occur at the
midpoint of the NBBO and provide a consistent pricing scheme between
the Exchange and BZX, thereby reducing complexity for Members of the
Exchange that are also participants on BZX. The Exchange believes its
streamlined pricing for executions at the midpoint of the NBBO will
increase competition amongst the Exchange and its competitors for price
improving liquidity. The Exchange believes that providing a rebate to
MidPoint Peg Orders that add liquidity under fee code MM will increase
competition for liquidity at the midpoint of the NBBO. Thus, the
Exchange believes this proposed rule change is necessary to permit fair
competition among national securities exchanges.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to section
19(b)(3)(A) of the Act \25\ and paragraph (f) of Rule 19b-4
thereunder.\26\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(3)(A).
    \26\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-EDGX-2015-32 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-EDGX-2015-32. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing will also be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-EDGX-2015-32 and should be
submitted on or before August 7, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
---------------------------------------------------------------------------

    \27\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-17490 Filed 7-16-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: April 17, 2007 (Volume 72, Number 73)]
[Rules and Regulations]
[Page 19116-19117]
[DOCID:fr17ap07-9]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 381

[Docket No. RM07-12]

Annual Update of Filing Fees

April 9, 2007.
AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Final rule; annual update of Commission filing fees.

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

SUMMARY: In accordance with 18 CFR 381.104, the Commission issues this
update of its filing fees. This notice provides the yearly update using
data in the Commission's Management, Administrative, and Payroll System
to calculate the new fees. The purpose of updating is to adjust the
fees on the basis of the Commission's costs for Fiscal Year 2006.

EFFECTIVE DATE: May 17, 2007.

FOR FURTHER INFORMATION CONTACT: Elizabeth Misiewicz, Office of the
Executive Director, Federal Energy Regulatory Commission, 888 First
Street, NE., Room 4R-03, Washington, DC 20426,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Document Availability: In addition to
publishing the full text of this document in the Federal Register, the
Commission provides all interested persons an opportunity to view and/
or print the contents of this document via the Internet through FERC's
Home Page (http://www.ferc.gov) and in FERC's Public Reference Room

during normal business hours (8:30 a.m. to 5 p.m. Eastern time) at 888
First Street, NE., Room 2A, Washington DC 20426.
    From FERC's Web site on the Internet, this information is available
in the eLibrary (formerly FERRIS). The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field and follow other directions on the search page.
    User assistance is available for eLibrary and other aspects of
FERC's website during normal business hours. For assistance, contact
FERC Online Support at<EMAIL_ADDRESS>or toll free at (866)
208-3676, or for TTY, contact<PHONE_NUMBER>.

Annual Update of Filing Fees

    The Federal Energy Regulatory Commission (Commission) is issuing
this notice to update filing fees that the Commission assesses for
specific services and benefits provided to identifiable beneficiaries.
Pursuant to 18 CFR 381.104, the Commission is establishing updated fees
on the basis of the Commission's Fiscal Year 2006 costs. The adjusted
fees announced in this notice are effective May 17, 2007. The
Commission has determined, with the concurrence of the Administrator of
the Office of Information and Regulatory Affairs of the Office of
Management and Budget, that this final rule is not a major rule within
the meaning of section 251 of Subtitle E of Small Business Regulatory
Enforcement Fairness Act, 5 U.S.C. 804(2). The Commission is submitting
this final rule to both houses of the United States Congress and to the
Comptroller General of the United States.
    The new fee schedule is as follows:
    Fees Applicable to the Natural Gas Policy Act:
    1. Petitions for rate approval pursuant to 18 CFR 284.123(b)(2).
(18 CFR 381.403): $10,420.
    Fees Applicable to General Activities:
    1. Petition for issuance of a declaratory order (except under Part
I of the Federal Power Act). (18 CFR 381.302(a)): $20,940.
    2. Review of a Department of Energy remedial order:
    Amount in controversy:
    $0-9,999 (18 CFR 381.303(b)): $100.
    $10,000-29,999 (18 CFR 381.303(b)): $600.
    $30,000 or more (18 CFR 381.303(a)): $30,560.
    3. Review of a Department of Energy denial of adjustment:
    Amount in controversy:
    $0-9,999 (18 CFR 381.304(b)): $100.
    $10,000-29,999 (18 CFR 381.304(b)): $600.
    $30,000 or more (18 CFR 381.304(a)) $16,020.
    4. Written legal interpretations by the Office of General Counsel
(18 CFR 381.305(a)): $6,000.
    Fees Applicable to Natural Gas Pipelines:
    1. Pipeline certificate applications pursuant to 18 CFR 284.224 (18
CFR 381.207(b)): $1,000\*\
---------------------------------------------------------------------------

    \*\ This fee has not been changed.
---------------------------------------------------------------------------

    Fees Applicable to Cogenerators and Small Power Producers:
    1. Certification of qualifying status as a small power production
facility (18 CFR 381.505(a)): $18,000.
    2. Certification of qualifying status as a cogeneration facility
(18 CFR 381.505(a)): $20,380.
    The Commission is eliminating the fee for applications for exempt
wholesale generator status.

List of Subjects in 18 CFR Part 381

    Electric power plants, Electric utilities, Natural gas, Reporting
and recordkeeping requirements.

Thomas R. Herlihy,
Executive Director.

0
In consideration of the foregoing, the Commission amends part 381,
Chapter I, Title 18, Code of Federal Regulations, as set forth below.

PART 381--FEES

0
1. The authority citation for part 381 continues to read as follows:

    Authority: 15 U.S.C. 717-717w; 16 U.S.C. 791-828c, 2601-2645; 31
U.S.C. 9701; 42 U.S.C. 7101-7352; 49 U.S.C. 60502; 49 App. U.S.C. 1-
85.

Sec.  381.302  [Amended]

0
2. In 381.302, paragraph (a) is amended by removing ``$19,890'' and
adding ``$20,940'' in its place.

Sec.  381.303  [Amended]

0
3. In 381.303, paragraph (a) is amended by removing ``$29,040'' and
adding ``$30,560'' in its place.

Sec.  381.304  [Amended]

0
4. In 381.304, paragraph (a) is amended by removing ``$15,230'' and
adding ``$16,020'' in its place.

Sec.  381.305  [Amended]

0
5. In 381.305, paragraph (a) is amended by removing ``$5,700'' and
adding ``$6,000'' in its place.

Sec.  381.403  [Amended]

0
6. Section 381.403 is amended by removing ``$9,900'' and adding
``$10,420'' in its place.

Sec.  381.505  [Amended]

0
7. In 381.505, paragraph (a) is amended by removing ``$17,110'' and
adding ``$18,000'' in its place and by removing ``$19,360'' and adding
``$20,380'' in its place.

Subpart H of Part 381 [Removed]

0
8. Subpart H of part 381 (consisting of Sec.  381.801) is removed.

[FR Doc. E7-7190 Filed 4-16-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 88, Number 197 (Friday, October 13, 2023)]
[Rules and Regulations]
[Pages 70889-70891]
[FR Doc No: 2023-22701]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2023-0735]
RIN 1625-AA00

Safety Zone; Atlantic Ocean, Jacksonville Beach, FL

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing a temporary safety zone on the
waterways surrounding Jacksonville, Florida during the 2023
Jacksonville Beach Sea and Sky Air Show. The safety zone is necessary
to ensure the safety of event participants and spectators. Entry of
vessels or persons into this zone is prohibited unless specifically
authorized by the Captain of the Port (COTP) Jacksonville or a
designated representative.

DATES: This rule is effective from 7 a.m. until 5 p.m. on October 20,
2023, through October 22, 2023.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://www.regulations.gov, type USCG-
2023-0735 in the search box and click ``Search.'' Next, in the Document
Type column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Marine Science Technician First Class Anthony DeAngelo,
Waterways Management Division, Sector Jacksonville, FL, U.S. Coast
Guard; telephone<PHONE_NUMBER>; email [email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

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

II. Background Information and Regulatory History

    The Coast Guard is issuing this temporary rule without prior notice
and opportunity to comment pursuant to authority under section 4(a) of
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because it is impracticable. The Coast Guard
was notified of the event without ample time for the NPRM process. We
must establish the safety zone by October 20, 2023, and lack sufficient
time to provide for a reasonable comment period and then consider those
comments before issuing this rule.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying the effective date of
this rule would be contrary to the public interest because immediate
action is needed to ensure the safety of the participants and vessels
during the 2023 Jacksonville Beach Sea and Sky Air Show.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 46 U.S.C.
70034. The Captain of the Port Sector Jacksonville (COTP) has
determined that potential hazards associated with the 2023 Jacksonville
Beach Sea and Sky Air Show will be a safety concern for persons and
vessels in the regulated area. This rule is needed to ensure the safety
of the event participants, the general public, vessels and the marine
environment in the navigable waters within the safety zone during the
2023 Jacksonville Beach Sea and Sky Air Show.

IV. Discussion of the Rule

    This rule establishes a safety zone on certain waters of
Jacksonville, Florida, during the 2023 Jacksonville Beach Sea

and Sky Air Show. The safety zone will be enforced from 7 a.m. until 5
p.m. on October 20, 2023, through October 22, 2023. The safety zone
will cover waters within the points starting at 30[deg]18'00'' N,
081[deg]23'06'' W, then proceeding to the East to point 30[deg]17'54''
N, 081[deg]21'54'' W, then to the Southeast to point 30[deg]16'12'' N,
081[deg]21'34'' W, then to the Southwest to point 30[deg]16'06'' N,
081[deg]22'43'' W, then proceeding to the first point.
    No person or vessel will be permitted to enter, transit through,
anchor in, or remain within the safety zone without first obtaining
permission from the COTP or a designated representative. If
authorization to enter, transit through, anchor in, or remain within
the safety zone is granted by the COTP or a designated representative,
all persons and vessels receiving such authorization must comply with
the instructions of the COTP or a designated representative. The Coast
Guard will provide notice of the safety zone by Broadcast Notice to
Mariners, and/or by on-scene designated representatives.

V. Regulatory Analyses

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

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. This rule has not been designated a ``significant
regulatory action,'' under section 3(f) of Executive Order 12866, as
amended by Executive Order 14094 (Modernizing Regulatory Review).
Accordingly, this rule has not been reviewed by the Office of
Management and Budget (OMB).
    This regulatory action determination is based on following reasons:
(1) the temporary safety zone will only be enforced for a total of 10
hours per day, for 3 consecutive days; (2) although persons and vessels
may not enter, transit through, anchor in, or remain within the safety
zone without authorization from the COTP or a designated
representative, they may operate in the surrounding area during the
enforcement period; (3) persons and vessels may still enter, transit
through, anchor in, or remain within the areas during the enforcement
period if authorized by the COTP or a designated representative.

B. Impact on Small Entities

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

C. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

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

E. Unfunded Mandates Reform Act

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

F. Environment

    We have analyzed this rule under Department of Homeland Security
Directive 023-01, Rev. 1, associated implementing instructions, and
Environmental Planning COMDTINST 5090.1 (series), which guide the Coast
Guard in complying with the National Environmental Policy Act of 1969
(42 U.S.C. 4321-4370f), and have determined that this action is one of
a category of actions that do not individually or cumulatively have a
significant effect on the human environment. This rule involves a 1.7
nautical mile perimeter safety zone, lasting the duration of the marine
event and thus limited in time and scope. This zone will prohibit entry
while in effect. It is categorically excluded from further review under
paragraph L60a of Appendix A, Table 1 of DHS Instruction Manual 023-01-
001-01, Rev. 1. A Record of Environmental Consideration supporting this
determination is available in the docket. For instructions on locating
the docket, see the ADDRESSES section of this preamble.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to call or email the person listed in the FOR
FURTHER INFORMATION CONTACT section to

coordinate protest activities so that your message can be received
without jeopardizing the safety or security of people, places, or
vessels.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority: 46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No.
00170.1, Revision No. 01.3.

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2. Add Sec.  165.T07-0735 to read as follows:

Sec.  165.T07-0735  2023 Jacksonville Beach Sea and Sky Airshow.

    (a) Location. The following area is a safety zone: All waters of
the Atlantic Ocean off the coast of Jacksonville Beach, from surface to
bottom, that are within the 1.7 nautical mile perimeter that begins at
30[deg]18'00'' N, 081[deg]23'06'' W, then proceeding to the East to
point 30[deg]17'54'' N, 081[deg]21'54'' W, then to the Southeast to
point 30[deg]16'12'' N, 081[deg]21'34'' W, then to the Southwest to
point 30[deg]16'06'' N, 081[deg]22'43'' W, then proceeding to the first
point.
    (b) Definitions. As used in this section, the term ``designated
representative'' means a Coast Guard Patrol Commander, including a
Coast Guard coxswain, petty officer, or other officer operating a Coast
Guard vessel and a Federal, State, and local officer designated by or
assisting the Captain of the Port Jacksonville (COTP) in the
enforcement of the safety zone.
    (c) Regulations. (1) All persons and vessels are prohibited from
entering, transiting through, anchoring in, or remaining within the
regulated area unless authorized by the COTP Jacksonville or a
designated representative.
    (2) Persons and vessels desiring to enter, transit through, anchor
in, or remain within the regulated area may contact the COTP
Jacksonville by telephone at<PHONE_NUMBER>, or a designated
representative via VHF-FM radio on channel 16 to request authorization.
If authorization is granted, all persons and vessels receiving such
authorization must comply with the instructions of the COTP
Jacksonville or a designated representative.
    (3) The Coast Guard will provide notice of the regulated area by
Local Notice to Mariners, Broadcast Notice to Mariners via VHF-FM
channel 16, or the COTP's designated representative.
    (d) Enforcement period. This section will be enforced from 7 a.m.
until 5 p.m. on October 20, 2023, through October 22, 2023.

    Dated: October 6, 2023.
J.D. Espino-Young,
Captain, U.S. Coast Guard, Captain of the Port Jacksonville.
[FR Doc. 2023-22701 Filed 10-12-23; 8:45 am]
BILLING CODE 9110-04-P