[Federal Register Volume 83, Number 97 (Friday, May 18, 2018)]
[Notices]
[Pages 23302-23305]
[FR Doc No: 2018-10605]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83229; File No. SR-BX-2018-019]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the Market
Order Spread Protection and Reorganize Rule Chapter VI, Section 18
Entitled, ``Order Price Protections''

May 14, 2018.
    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 May 7, 2018, Nasdaq BX, Inc. (``BX'' or the ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the Exchange. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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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 the Market Order Spread Protection
and reorganize Rule Chapter VI, Section 18 entitled, ``Order Price
Protections.''
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaqbx.cchwallstreet.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 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 purpose of the proposed rule change is to amend Chapter VI,
Section 18, entitled, ``Order Price Protection'' to ``Risk
Protections'' and relocate all the order protections into a single rule
and categorize them as either order protections, order and quote
protections or market maker protections. The Exchange believes that
placing all the order protections into a single rule will provide
market participants with information as to the availability of these
protections, which are all mandatory. The Exchange also proposes to
amend the Market Order Spread Protection and Acceptable Trade Range
Rules to add more specificity.
Universal Amendments
    The Exchange proposes to restructure Chapter VI, Section 18 into
three parts: (1) Order protections; (2) order and quote protections;
and (3) market maker protections. The Exchange proposes to reletter and
renumber the rule as well to provide a more organized structure. The
Exchange believes that categorizing the various protections provides
more information to market participants as to each of the risk
protections.
Order Price Protection
    The Exchange proposes only to reorganize the rule by adding new
lettering and numbering to conform to the remainder of the proposed
rule, no other amendments are being made to Order Price Protection.
Market Order Spread Protection
    The Exchange proposes to relocate the Market Order Spread
Protection rule from Chapter VI, Section 6(c) into Chapter VI, Section
18. The Exchange also proposes to amend the Market Order Spread
Protection at proposed Chapter VI, Section 18(a)(2) by adding an
additional sentence stating, ``Market Order Spread Protection shall not
apply to the Opening Process and during a halt.'' Today, the Market
Order Spread Protection does not apply during the Opening Process and
during a trading halt. The Exchange is adding this additional
specificity to the rule to make clear when the protection is operative.
    Both the Opening Process and trading halts have the same or more
restrictive boundaries as those proposed for the Market Order Spread
Protection. With respect to the Opening Process, a Valid Width National
Best Bid or Offer is required. A Valid Width National Best Bid or
Offer'' or ``Valid Width NBBO'' shall mean the combination of all away
market quotes and any combination of BX Options-registered Market Maker
orders and quotes received over the SQF Protocols within a specified
bid/ask differential as established and published by the Exchange.\3\
The Valid Width NBBO will be configurable by underlying, and tables
with valid width differentials will be posted by Nasdaq on its
website.\4\ The Exchange's threshold for the Market Order Spread
Protection is currently set at $5.\5\ Today, the maximum bid/ask
differentials are more restrictive for both Special Penny, Penny and
Non-Penny issues (up to $1.60, $2.00 and $2.25, respectively, for the
bid/ask differentials). The Exchange believes that the Market Order
Spread Protection is unnecessary during the Opening Process because
other protections are in place to ensure that the best bid and offer
displayed on the Exchange are within a reasonable range.
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    \3\ Away markets that are crossed will void all Valid Width NBBO
calculations. If any Market Maker orders or quotes on BX Options are
crossed internally, then all such orders and quotes will be excluded
from the Valid Width NBBO calculation. See BX Chapter VI, Section
8(a)(6).
    \4\ The table with the differentials is published on the
Exchange's website at: http://www.nasdaqtrader.com/content/technicalsupport/BXOptions_SystemSettings.pdf.
    \5\ The current Market Order Spread Differential is set at $5.
The table in note 4 above notes the current setting.
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    As provided in Chapter V, Section 4 trading halts are subject to
the reopening process as provided for in Chapter VI, Section 8. The
same protections noted for the Opening Process above will apply for
trading halts. The Exchange believes that the Market Order Spread
Protection is unnecessary during a trading halt because other
protections are in place to ensure that the best bid and offer
displayed on the Exchange are within a reasonable range.
Acceptable Trade Range
    The Exchange proposes to relocate the Acceptable Trade Protection
from Chapter VI, Section 10(7) into Chapter VI, Section 18(b)(1). The
Exchange also proposes to note more specifically within the rule that
this risk protection applies to both quotes and orders. Today, the rule
only refers to ``orders'' in a few places. The Exchange proposes to
note ``order/quotes'' in those instances to make clear that both orders
and quotes are protected. This addition and the categorization proposed
within this rule change should make that this protection more
transparent.
Anti-Internalization
    The Exchange proposes to relocate the Anti-Internalization
Protection from Chapter VI, Section 10(6) into Chapter VI, Section
18(c)(1). The Exchange proposes only to reorganize the rule by adding
new lettering and numbering to conform to the remainder of the proposed
rule, no other amendments are being made to the Anti-Internalization
rule. The Exchange also notes that the word ``exception'' is being
removed from this rule to conform the rule text to the remainder of the
rule.
Automated Removal of Quotes and Orders
    The Exchange proposes to relocate the Automated Removal of Quotes
and Orders from Chapter VII, Section 6(f) into Chapter VI, Section
18(c)(2). The Exchange proposes only to reorganize the rule by adding
new lettering and numbering to conform to the remainder of the proposed
rule, no other amendments are being made to the Automated Removal of
Quotes and Orders rule.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest,
by grouping the various order protections applied on BX into a single
rule for ease of reference and adding headers to the rule to make clear
whether the risk protection is an order, quote or order and market
maker protection. The Exchange believes the reorganization of the
existing rule and relocation of various rules into Rule Chapter VI,
Section 18 is a non-substantive rule change.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange is amending the Market Order Spread Protection to
provide more specificity to that rule. Today, the Market Order Spread
Protection does not apply during the Opening Process and during halts.
The Exchange is proposing to memorialize this exception into the rule
to provide more transparency as to the operation of this protection.
Both the Opening Process and trading halts have the same or more
restrictive boundaries as for the Market Order Spread Protection. With
respect to the Opening Process, a Valid Width

National Best Bid or Offer is required. A Valid Width National Best Bid
or Offer'' or ``Valid Width NBBO'' shall mean the combination of all
away market quotes and any combination of BX Options-registered Market
Maker orders and quotes received over the SQF Protocols within a
specified bid/ask differential as established and published by the
Exchange.\8\ The Exchange's requirements during the Opening Process are
as as restrictive or more restrictive as the setting for the Market
Order Spread Protection. As provided in Chapter V, Section 4 trading
halts are subject to the reopening process as provided for in Chapter
VI, Section 8. The same protections noted for the Opening Process above
will apply for trading halts. The Exchange believes that the Market
Order Spread Protection is unnecessary during the Opening Process and
during a trading halt because other protections are in place to ensure
that the best bid and offer displayed on the Exchange are within a
reasonable range.
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    \8\ Away markets that are crossed will void all Valid Width NBBO
calculations. If any Market Maker orders or quotes on BX Options are
crossed internally, then all such orders and quotes will be excluded
from the Valid Width NBBO calculation. See BX Chapter VI, Section
8(a)(6).
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    The Exchange is also proposing to make clear that the Acceptable
Trade Range protection is an order and quote protection. This
particular rule does not specifically state orders and quotes in each
place either is mentioned with the rule. The Exchange believes adding
order/quote in each instance it appears will bring greater transparency
to the rule and protect investors and the public interest by providing
greater clarity to the rule.

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 proposal does not impose an
intra-market burden on competition with respect to the reorganization
and relocation of the various rules into Rule Chapter VI, Section 18
because the various price protections will continue to apply uniformly
to all market participants.
    The Exchange does not believe that not applying the Market Order
Spread Protection during the Opening Process and during a trading halt
creates an undue burden on competition because these mechanisms have
the same or more restrictive protections as the Market Order Spread
Protection.
    Finally, the amendments to the Acceptable Trade Range rule creates
an undue burden on competition because the additional language brings
more transparency to the existing rule.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ however, permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposal may become operative upon filing. The Exchange states
that it believes it is important for it to be able to manage the
administration of its rules on an immediately effective basis. Further,
with respect to the amendment to the Market Order Spread Protection and
Acceptable Trade Range, the Exchange believes that the amendment
protects investors and the public interest by providing more
transparency as to the operation of this protection during the Opening
Process and during halts for the Market Order Spread Protection and
also clarifies the Acceptable Trade Range rule. For these reasons, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest
and, therefore, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change operative upon filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-BX-2018-019 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-BX-2018-019. 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-BX-2018-019 and should be
submitted on or before June 8, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10605 Filed 5-17-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Notices]
[Pages 49554-49555]
[FR Doc No: 2018-21411]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC18-162-000.
    Applicants: Mendota Hills, LLC.
    Description: Application for Authorization Under Section 203 of the
Federal Power Act, et al. of Mendota Hills, LLC.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5133.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: EC18-163-000.
    Applicants: San Diego Gas & Electric Company, Citizens Sycamore-
Penasquitos Transmission.
    Description: Joint Application for Authorization Under Section 203
of the Federal Power Act of San Diego Gas & Electric Company, et. al.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5034.
    Comments Due: 5 p.m. ET 10/17/18.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER18-1883-001.
    Applicants: Midcontinent Independent System Operator, Inc.,
Michigan Electric Transmission Company, LLC.
    Description: Compliance filing: 2018-09-26_SA 3132 Compliance
Filing for METC-Wolverine T-T to be effective 6/1/2018.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5072.
    Comments Due: 5 p.m. ET 10/17/18.

    Docket Numbers: ER18-1974-001.
    Applicants: Otter Tail Power Company.
    Description: Compliance filing: Compliance Notification of
Effective Date to be effective 9/17/2018.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5086.
    Comments Due: 5 p.m. ET 10/17/18.

    Docket Numbers: ER18-2013-000.
    Applicants: Terra-Gen Dixie Valley, LLC.
    Description: Report Filing: Refund Report to be effective N/A.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5096.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: ER18-2474-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: Attachment V GIA Pro Forma
Clean-Up Filing to be effective 5/15/2018.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5120.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: ER18-2475-000.
    Applicants: Imperial Valley Solar 3, LLC.
    Description: Sec.  205(d) Rate Filing: Imperial Valley Solar 3, LLC
Co-Tenancy and Shared Use Agreement to be effective 9/26/2018.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5122.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: ER18-2476-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Historical Cleanup Filing,
MISO-PJM JOA, Section 9.4 to be effective 1/1/2014.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5098.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: ER18-2477-000.
    Applicants: DXT Commodities North America LLC.
    Description: Baseline eTariff Filing: Application for Market Based
Rate to be effective 11/25/2018.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5097.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: ER18-2478-000.
    Applicants: Southwestern Public Service Company.
    Description: Notice of cancellation of Interconnection Agreement
(No. 102-SPS) of Southwestern Public Service Company.
    Filed Date: 9/25/18.
    Accession Number: 20180925-5138.
    Comments Due: 5 p.m. ET 10/16/18.

    Docket Numbers: ER18-2479-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Third Revised ISA, SA No.
2962; Queue No. Z2-083 to be effective 8/28/2018.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5039.
    Comments Due: 5 p.m. ET 10/17/18.

    Docket Numbers: ER18-2480-000.
    Applicants: Michigan Electric Transmission Company, LLC.
    Description: Tariff Cancellation: Termination of Agreements to be
effective 6/1/2018.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5074.
    Comments Due: 5 p.m. ET 10/17/18.

    Docket Numbers: ER18-2481-000.
    Applicants: Public Service Company of Colorado.
    Description: Sec.  205(d) Rate Filing: PSCo-WAPA-Intercon-TSA-
Agrmt-376-0.1.0 to be effective 10/1/2018.
    Filed Date: 9/26/18.

    Accession Number: 20180926-5095.

    Comments Due: 5 p.m. ET 10/17/18.
    Docket Numbers: ER18-2482-000.
    Applicants: Wolverine Power Supply Cooperative, Inc.
    Description: Tariff Cancellation: Notice of Cancellation of Rate
Schedules to be effective 9/27/2018.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5113.
    Comments Due: 5 p.m. ET 10/17/18.

    Take notice that the Commission received the following electric
securities filings:

    Docket Numbers: ES18-62-000.
    Applicants: Oklahoma Gas and Electric Company.
    Description: Application under Section 204 of the Federal Power Act
for Authorization to Issue Securities of Oklahoma Gas and Electric
Company.
    Filed Date: 9/26/18.
    Accession Number: 20180926-5088.
    Comments Due: 5 p.m. ET 10/17/18.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: September 26, 2018.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2018-21411 Filed 10-1-18; 8:45 am]
 BILLING CODE 6717-01-P


Table 1 a:

Stack Parameters and Emissions by Degreaser Category from 1999 NEI Final Version 3 Data 8/ 16/ 2006 per Emis.

Point per Facility Fugitive 293 415 3 33 10.0 3. E 03 3. E 03 3. E 03 3. E 04 3. E 04 3. E 04 72 72 72 5.0 7.1 2,088 Stack 212 272 2 47 27.8 0.1 10 1.4 0.1 400 29.3 50 460 82.7 7.9 10.2 2,159 687 6 9 4,246 Fugitive 11 12 3 23 10.5 3. E 03 3. E 03 3. E 03 3. E 04 3. E 04 3. E 04 72 72 72 20.5 22.4 246 Stack 33 45 8 54 30.4 0.3 13 2.1 0.4 260 39.0 55 120 78.0 11.1 15.1 497 57 13 17 744 Fugitive 277 449 5 25 10.1 3. E 03 3. E 03 3. E 03 3. E 04 3. E 04 3. E 04 72 72 72 2.4 3.8 1,066 Stack 97 171 1 99 34.8 0.1 22 2.2 0.2 407 30.8 50 300 90.8 1.7 3.0 294 620 2 4 1,360 Fugitive 9 20 10 10 10.0 3. E 03 3. E 03 3. E 03 3. E 04 3. E 04 3. E 04 72 72 72 12.6 27.9 252 Stack 7 11 26.2 63 41.4 1.3 3.4 2.1 18.3 41 25.9 71.4 388 180.6 21.3 33.4 234 31 16 40 485 Fugitive 186 299 3 36 10.2 3. E 03 3. E 03 3. E 03 3. E 04 3. E 04 3. E 04 72 72 72 3.3 5.3 991 Stack 57 89 10 62 28.8 0.3 12 1.6 0.2 199 27.5 69 300 82.0 10.2 15.9 908 388 5 8 1,898 No. of Emission Points Total Total Total General Degreasing ( 243 Facilities) Conveyorized Vapor ( 44 Facilities)

Cold Solvent Cleaning ( 363 Facilities) Total Stack Diameter ( ft) Exit Gas Velocity ( ft/ s) Exit Temperature ( oF)

Open Top Vapor ( 496 Facilities) Degreaser Category a Emission Type b No. of Facilities c Stack Height ( ft) Halogenated Solvent Emissions ( t/ yr) d Min Max Ave. Min Max Ave. Min Max Ave. Total Min Max Ave. Average Emissions Web Cleaners ( Industrial and Film) ( 12 Facilities) Total Page 1 of 4 DCTM_ ARP. xls Table 1 a:

Stack Parameters and Emissions by Degreaser Category from 1999 NEI Final Version 3 Data 8/ 16/ 2006 per Emis.

Point per Facility No. of Emission Points Stack Diameter ( ft) Exit Gas Velocity ( ft/ s) Exit Temperature ( oF)

Degreaser Category a Emission Type b No. of Facilities c Stack Height ( ft) Halogenated Solvent Emissions ( t/ yr) d Min Max Ave. Min Max Ave. Min Max Ave. Total Min Max Ave. Average Emissions Fugitive 26 31 1 30 12.0 3. E 03 3. E 03 3. E 03 3. E 04 3. E 04 3. E 04 72 72 72 8.4 10.1 261 Stack 23 32 6 282 40.1 0.3 4 1.9 0.4 403 40.4 69 301 146.6 13.9 19.3 445 63 11 15 706 1,226 10.1 3. E 03 3. E 04 72 4 6 4,904 620 31.0 1.76 30.8 89.7 7 11 4,535 d Emissions of halogenated solvents from degreasers for each of the appropriate degreaser categories.

c Actual number of facilities is indicated in the parentheses under the degreaser category column. The sum of the number of facilities by emission type could be higher than the actual since some facilities could have both stack and fugitive emissions.

a Categories were assigned based on the SCC designations in NEI. See the attached Table 3 for the list of SCC codes corresponding to the degreaser categories. Supplemental degreasing facilities are determined based on process or emission release point descriptions.

Grand Total Stack b If the emission release point type code for a record was 99 ( unknown) then the stack height is used to make a determination. If the stack height is greater than 10 ft the emissions point is assumed to be a stack, otherwise it is assumed to be a fugitive.

1,206 Facilities ( 1,093 unique facilities) Grand Total Fugitive Supplemental Degreasing Facilities ( 48 Facilities) Total Page 2 of 4 DCTM_ ARP. xls Table 1 b:

Median Stack Parameters and Emissions by Degreaser Category from 1999 NEI Final Version 3 Data 8/ 16/ 2006 Stack Height ( ft) Stack Diameter ( ft) Exit Gas Velocity ( ft/ s) Exit Temperature ( oF)

Fugitive 293 415 10 3. E 03 3. E 04 72 1.8 2,088 Stack 212 272 28.9 1.75 28.1 80.5 3.7 2,159 687 4,246 Fugitive 11 12 10 3. E 03 3. E 04 72 10.7 246 Stack 33 45 32.0 1.5 22.2 72 5.4 497 57 744 Fugitive 277 449 10 3. E 03 3. E 04 72 0.1 1,066 Stack 97 171 35.8 2.1 27.8 80.2 0.5 294 620 1,360 Fugitive 9 20 10 3. E 03 3. E 04 72 2.3 252 Stack 7 11 32.8 1.6 25.2 88.9 5.8 234 31 485 Fugitive 186 299 10 3. E 03 3. E 04 72 2.4 991 Stack 57 89 25.3 1.8 27.7 83.9 0.8 908 388 1,898 Fugitive 26 31 10 3. E 03 3. E 04 72 1.5 261 Stack 23 32 32.2 2.1 31.6 122.7 0.6 445 63 706 No. of Emission Points Total Median Median ( Facility Level)

Open Top Vapor ( 496 Facilities)

Degreaser Category a Emission Type b No. of Facilities c Halogenated Solvent Emissions ( t/ yr) d Median Median Median Total Cold Solvent Cleaning ( 363 Facilities) Total Supplemental Degreasing Facilities ( 48 Facilities) Total General Degreasing ( 243 Facilities) Total Total Web Cleaners ( Industrial and Film) ( 12 Facilities) Total Conveyorized Vapor ( 44 Facilities) Page 3 of 4 DCTM_ ARP. xls Table 1 b:

Median Stack Parameters and Emissions by Degreaser Category from 1999 NEI Final Version 3 Data 8/ 16/ 2006 Stack Height ( ft) Stack Diameter ( ft) Exit Gas Velocity ( ft/ s) Exit Temperature ( oF)

No. of Emission Points Median Median ( Facility Level)

Degreaser Category a Emission Type b No. of Facilities c Halogenated Solvent Emissions ( t/ yr) d Median Median Median Total 1,226 10 3. E 03 3. E 04 72 2 4,904 620 29.5 1.8 28.1 82.1 3 4,535 b If the emission release point type code for a record was 99 ( unknown) then the stack height is used to make a determination. If the stack height is greater than 10 ft the emissions point is assumed to be a stack, otherwise it is assumed to be a fugitive.

1,206 Facilities ( 1,093 unique facilities) Grand Total Fugitive d Emissions of halogenated solvents from degreasers for each of the appropriate degreaser categories.

c Actual number of facilities is indicated in the parentheses under the degreaser category column. The sum of the number of facilities by emission type could be higher than the actual since some facilities could have both stack and fugitive emissions.

a Categories were assigned based on the SCC designations in NEI. See the attached Table 3 for the list of SCC codes corresponding to the degreaser categories.

Supplemental degreasing facilities are determined based on process or emission release point descriptions.

Grand Total Stack Page 4 of 4 DCTM_ ARP. xls


[Federal Register Volume 85, Number 86 (Monday, May 4, 2020)]
[Proposed Rules]
[Pages 26375-26378]
[FR Doc No: 2020-09287]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0394; Project Identifier AD-2019-00141-E]
RIN 2120-AA64

Airworthiness Directives; Honeywell International Inc. Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for all Honeywell International Inc. ALF502L, ALF502L-2, ALF502L-2A,
ALF502L-2C, ALF502L-3, ALF502R-3, ALF502R-3A, ALF502R-4, ALF502R-5,
ALF502R-6, LF507-1F, and LF507-1H model turbofan engines. This proposed
AD was prompted by a report of an engine experiencing an uncontained
release of low-pressure turbine (LPT) blades. This proposed AD would
require initial and repetitive visual inspections of the overspeed fuel
solenoid valve assembly and the fuel filter outlet. Depending on the
results of these inspections, the AD may require inspection of the
adjacent fuel system tube assemblies as well as replacement or overhaul
of the overspeed fuel solenoid valve assembly. This proposed AD would
also require periodic overhaul of the overspeed fuel solenoid valve
assembly. The FAA is proposing this AD to address the unsafe condition
on these products.

DATES: The FAA must receive comments on this proposed AD by June 18,
2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact Honeywell
International Inc., 111 S 34th Street, Phoenix, Arizona 85034-2802,
United States; phone:<PHONE_NUMBER>; website: https://aerospace.honeywell.com/en#/. You may view this service information at
the FAA, Airworthiness Products Section, Operational Safety Branch,
1200 District Avenue, Burlington, MA 01803. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0394; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, any comments received, and other information. The street
address for Docket Operations is listed above. Comments will be
available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Mark Matzke, Aerospace Engineer, Los
Angeles ACO Branch, FAA, 3960 Paramount Boulevard, Lakewood, CA 90712-
4137; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2020-0394;
Project Identifier AD-2019-00141-E'' at the beginning of your comments.
The FAA

specifically invites comments on the overall regulatory, economic,
environmental, and energy aspects of this NPRM. The FAA will consider
all comments received by the closing date and may amend this NPRM
because of those comments.
    Except for Confidential Business Information as described in the
following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The FAA will also post a report summarizing each substantive
verbal contact received about this NPRM.

Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this NPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this NPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission containing CBI as ``PROPIN.'' The FAA will treat
such marked submissions as confidential under the FOIA, and they will
not be placed in the public docket of this NPRM. Submissions containing
CBI should be sent to Mark Matzke, Aerospace Engineer, Los Angeles ACO
Branch, FAA, 3960 Paramount Boulevard, Lakewood, CA 90712-4137. Any
commentary that the FAA receives which is not specifically designated
as CBI will be placed in the public docket for this rulemaking.

Discussion

    The FAA received a report of an engine experiencing an uncontained
release of the LPT blades. Subsequent analysis by the manufacturer
determined that fuel system coking and/or contamination may slow the
response time and operation of the overspeed fuel solenoid valve
assembly resulting in the failure to arrest an engine overspeed. As a
result, engine overspeed may lead to uncontained release of the LPT
blades. This condition, if not addressed, could result in uncontained
LPT blade release, damage to the engine, and loss of the aircraft.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Honeywell Alert Service Bulletin (ASB) ALF/LF-72-
1120, Revision 1, dated January 6, 2020. The ASB describes procedures
for a one-time inspection of the overspeed fuel solenoid valve
assembly, fuel tube, and dual heater oil cooler.
    The FAA reviewed Honeywell Temporary Revision (TR) No. 72-1022,
dated October 14, 2019, to Honeywell Engine Manual Report No. 286.1,
Revision 27, dated August 27, 2004. The TR describes procedures for
repetitive overhaul of overspeed fuel solenoid valve assemblies
installed on Honeywell ALF502R model engines.
    The FAA reviewed Honeywell TR No. 72-202, dated October 10, 2019,
to Honeywell Engine Manual Report No. 507F.1, Revision 6, dated August
16, 2013. The TR describes procedures for repetitive overhaul of
overspeed fuel solenoid valve assemblies installed on Honeywell LF507-
1F model engines.
    The FAA reviewed Honeywell TR No. 72-177, dated October 10, 2019,
to Honeywell Engine Manual Report No. 507H.1, Revision 5, dated
September 30, 1999. The TR describes procedures for repetitive overhaul
of overspeed fuel solenoid valve assemblies installed on Honeywell
LF507-1H model engines.
    The FAA reviewed Honeywell TR No. 72-57, dated October 29, 2019, to
Honeywell Overhaul Manual 72-07-07, Revision 1, dated January 31, 2001.
The TR describes procedures for repetitive overhaul of overspeed fuel
solenoid valve assemblies installed on Honeywell ALF502L model engines.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Other Related Service Information

    The FAA reviewed Wright Components, Inc, Component Maintenance
Manual (CMM) 73-19-01, Initial Revision, dated July 30, 1982. The CMM
describes procedures for overhauling three-way two-position solenoid
operated fuel valves, part number 2-303-175-01.
    The FAA reviewed Honeywell Service Bulletin (SB) ALF502-72-0001,
Revision 24, dated October 29, 2019. The SB describes procedures for
repetitive visual inspections of overspeed fuel solenoid valve
assemblies installed on Honeywell ALF502R model engines.
    The FAA reviewed Honeywell SB LF507-1F-72-1, Revision 10, dated
October 29, 2019. The SB describes procedures for repetitive visual
inspections of overspeed fuel solenoid valve assemblies installed on
Honeywell LF507-1F model engines.
    The FAA reviewed Honeywell SB LF507-1H-72-1, Revision 9, dated
October 18, 2019. The SB describes procedures for repetitive visual
inspections of overspeed fuel solenoid valve assemblies installed on
Honeywell LF507-1H model engines.
    The FAA reviewed Honeywell SB ALF502-72-0005, Revision 17, dated
October 29, 2019. The SB describes procedures for repetitive visual
inspections of overspeed fuel solenoid valve assemblies installed on
Honeywell ALF502L model engines.

FAA's Determination

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

Proposed AD Requirements

    This proposed AD would require initial and repetitive visual
inspections of the overspeed fuel solenoid valve assembly and the fuel
filter outlet. Depending on the results of the inspection, this AD may
require inspection of the adjacent fuel system tube assemblies as well
as replacement or overhaul of the overspeed fuel solenoid valve
assembly. This proposed AD would also require periodic overhaul of the
overspeed fuel solenoid valve assembly.

Differences Between This Proposed AD and the Service Information

    Honeywell ASB ALF/LF-72-1120, Revision 1, dated January 6, 2020,
uses the term ``flights'' and recommends installing the improved
clamping of the overspeed fuel solenoid valve assembly to the in-line
fuel filter housing assembly introduced in AlliedSignal Aerospace SB
ALF502 73-0131, Revision 3, dated September 8, 1995, prior to re-
installation. This proposed AD uses ``engine cycles'' and does not
require installing the improved clamping of the overspeed fuel solenoid
valve assembly to the in-line fuel filter housing assembly as this is
not related to the unsafe condition of this proposed AD.

Costs of Compliance

    The FAA estimates that this proposed AD affects 210 engines
installed on airplanes of U.S. registry.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Visual inspection of the fuel solenoid  2 work-hours x $85 per                $0            $170         $35,700
 valve, fuel filter outlet, and          hour = $170.
 adjacent fuel system tube assemblies.
Overhaul of overspeed fuel solenoid     0.25 work-hours x $85              7,700        7,721.25    1,621,462.50
 valve assembly.                         per hour = $21.25.
----------------------------------------------------------------------------------------------------------------

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

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Removal, Inspection, and Cleaning of the        2 work-hours x $85 per hour =                 $0            $170
 engine fuel tube assemblies.                    $170.
Replacement or overhaul of overspeed fuel       0.25 work-hours x $85 per hour =           7,700        7,721.25
 solenoid valve assembly.                        $21.25.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13   [Amended]

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

    Honeywell International Inc.: Docket No. FAA-2020-0394; Project
Identifier AD-2019-00141-E.

(a) Comments Due Date

    We must receive comments by June 18, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all Honeywell International Inc. ALF502L,
ALF502L-2, ALF502L-2A, ALF502L-2C, ALF502L-3, ALF502R-3, ALF502R-3A,
ALF502R-4, ALF502R-5, ALF502R-6, LF507-1F, and LF507-1H model
turbofan engines.

(d) Subject

    Joint Aircraft System Component (JASC) Code 7200, Engine
(Turbine/Turboprop); 7300, Engine Fuel and Control; and 7620, Engine
Emergency Shutdown System.

(e) Unsafe Condition

    This AD was prompted by a report of an engine experiencing an
uncontained release of low-pressure turbine (LPT) blades. The FAA is
issuing this AD to prevent failure of the LPT blades. The unsafe
condition, if not addressed, could result in uncontained LPT blade
release, damage to the engine, and loss of the aircraft.

(f) Compliance

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

(g) Required Actions

    (1) Perform an initial visual inspection of the overspeed fuel
solenoid valve assembly and fuel filter outlet in accordance with
the Accomplishment Instructions, paragraphs 3.B.(1) to (3), of
Honeywell Alert Service Bulletin (ASB) ALF/LF-72-1120, Revision 1,
dated January 6, 2020 (``Honeywell ASB ALF/LF-72-1120''), using the
times, as applicable, in paragraphs (g)(1)(i), (ii), and (iii) of
this AD.
    (i) If, on the effective date of this AD, the fuel solenoid
valve assembly has 1,500 or less engine cycles since last overhaul,
perform the inspection before exceeding 3,000 engine cycles since
last overhaul or within 5 years after the effective date of this AD,
whichever occurs first.
    (ii) If, on the effective date of this AD, the fuel solenoid
valve assembly has greater than 1,500 but less than 3,000 engine
cycles since last overhaul, perform the inspection before exceeding
3,500 engine cycles since last

overhaul or within 5 years after the effective date of this AD,
whichever occurs first.
    (iii) If, on the effective date of this AD, the fuel solenoid
valve assembly has 3,000 or more engine cycles since last overhaul,
perform the inspection before exceeding 500 engine cycles or within
5 years after the effective date of this AD, whichever occurs first.
    (2) Thereafter, repeat the visual inspection of the overspeed
fuel solenoid valve assembly, fuel filter outlet, and adjacent fuel
system tube assemblies at intervals not to exceed 3,000 engine
cycles since the last visual inspection using the Accomplishment
Instructions, paragraphs 3.B.(1) to (3), of Honeywell ASB ALF/LF-72-
1120.
    (3) If, based on the visual inspection required by paragraph
(g)(1) or (2) of this AD, an overspeed fuel solenoid valve assembly
is rejected for visual coking or varnish residue, as depicted in the
Accomplishment Instructions, paragraph 3.B.(3) of Honeywell ASB ALF/
LF-72-1120, before further flight:
    (i) Remove and inspect the adjacent fuel system tube assemblies
using the Accomplishment Instructions, paragraph 3.B.(3) of
Honeywell ASB ALF/LF-72-1120.
    (ii) Overhaul the overspeed fuel solenoid valve assembly or
replace it with a part eligible for installation using the
Accomplishment Instructions, paragraphs 3.B.(5) to (8), of Honeywell
ASB ALF/LF-72-1120.

    Note to paragraph (g)(3)(ii): Valves may be serviced at any
appropriately rated, FAA-approved repair facility.

    (4) At the next engine shop visit after the effective date of
this AD, and each shop visit thereafter, if the overspeed fuel
solenoid valve assembly time since new or since last overhaul,
whichever is less, exceeds 8,000 engine cycles or is unknown,
overhaul the overspeed fuel solenoid valve assembly in accordance
with the applicable Honeywell Temporary Revision (TR) for the
engine, as defined in paragraphs (h)(1) through (4).

(h) Definition

    For the purpose of this AD, the ``applicable Honeywell TR''
refers, depending on the affected engine model, to the following
engine model TRs:
    (1) Honeywell TR No. 72-1022, dated October 14, 2019, for
Honeywell ALF502R model engines;
    (2) Honeywell TR No. 72-202, dated October 10, 2019, for
Honeywell LF507-1F model engines;
    (3) Honeywell TR No. 72-177, dated October 10, 2019, for
Honeywell LF507-1H model engines; or
    (4) Honeywell TR No. 72-57, dated October 29, 2019, for
Honeywell ALF502L model engines.

(i) Credit for Previous Actions

    You may take credit for the initial visual inspection and
replacement required by paragraph (g)(1) to (3) of this AD if the
inspection was performed using the Accomplishment Instructions,
paragraphs 3.B.(1) to (2) or 3.B.(6), of Honeywell ASB ALF/LF-72-
1120, Revision 0, dated August 30, 2019.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Los Angeles ACO Branch, FAA, has the authority
to approve AMOCs for this AD, if requested using the procedures
found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your
request to your principal inspector or local Flight Standards
District Office, as appropriate. If sending information directly to
the manager of the certification office, send it to the attention of
the person identified in paragraph (k)(1) of this AD. Information
may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    (1) For more information about this AD, contact Mark Matzke,
Aerospace Engineer, Los Angeles ACO Branch, FAA, 3960 Paramount
Boulevard, Lakewood, CA 90712-4137; phone:<PHONE_NUMBER>; fax: 562-
627-5210; email<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
Honeywell International Inc., 111 S. 34th Street, Phoenix, Arizona
85034-2802, United States; phone:<PHONE_NUMBER>; website: https://aerospace.honeywell.com/en#/. You may view this referenced service
information at the FAA, Airworthiness Products Section, Operational
Safety Branch, 1200 District Avenue, Burlington, MA 01803. For
information on the availability of this material at the FAA, call
781-238-7759.

    Issued on April 28, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-09287 Filed 5-1-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 238 (Wednesday, December 11, 2013)]
[Notices]
[Pages 75396-75398]
[FR Doc No: 2013-29496]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70998; File No. SR-NYSEARCA-2013-133]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Proposes To Amend
the NYSE Arca Equities Schedule of Fees and Charges for Exchange
Services To Specify the Exclusion of Odd Lot Transactions From
Consolidated Average Daily Volume Calculations for a Limited Period of
Time for Purposes of Certain Transaction Pricing on the Exchange
Through January 31, 2014

December 5, 2013.
    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 November 22, 2013, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend the NYSE Arca Equities Schedule of
Fees and Charges for Exchange Services (the ``Fee Schedule'') to
specify the exclusion of odd lot transactions from consolidated average
daily volume (``CADV'') calculations for a limited period of time for
purposes of certain transaction pricing on the Exchange. The text of
the proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend the Fee Schedule to specify the
exclusion of odd lot transactions from CADV calculations for a limited
period of time for purposes of certain transaction pricing on the
Exchange. The Exchange proposes to implement the Fee Schedule on
December 9, 2013.
    The Exchange provides an ETP Holder with the opportunity to qualify
for one or more pricing Tiers based on its level of activity during a
particular month. Each Tier has a corresponding fee or credit that
applies to the ETP Holder's transactions during the month. Generally, a
qualifying ETP Holder would be subject to a lower transaction fee or a
higher transaction credit, depending on the particular Tier. Many of
these Tiers use a specific percentage of CADV as a threshold that an
ETP Holder's activity must meet or exceed in order to qualify for the
particular Tier. For example, an ETP Holder must, among other things,
provide liquidity an average daily volume (``ADV'') of 0.70% or more of
CADV during the month to qualify for Tier 1 pricing.\3\ As an
additional example, transaction pricing for an ETP Holder that is a
Lead Market Maker (``LMM'') can depend on the CADV for the security in
the previous month.
---------------------------------------------------------------------------

    \3\ To qualify for Tier 1, an ETP Holder must (1) provide
liquidity an ADV per month of 0.70% or more of CADV or (2)(a)
provide liquidity an ADV per month of 0.15% or more of CADV and (b)
be affiliated with an Options Trading Permit (``OTP'') Holder or OTP
Firm that provides an ADV of electronic posted executions (including
all account types) in Penny Pilot issues on NYSE Arca Options
(excluding mini options) of at least 100,000 contracts, of which at
least 25,000 contracts must be for the account of a market maker.
---------------------------------------------------------------------------

    CADV is a measure of transactions in Tape A, Tape B and Tape C
securities reported to the consolidated tape.

Transactions that are not reported to the consolidated tape are not
included in CADV for purposes of the Fee Schedule. An odd lot
transaction, which is generally an execution of less than 100 shares,
is not currently reported to the consolidated tape and is therefore not
currently included in CADV.\4\ Beginning December 9, 2013, odd lot
transactions will be reported to the consolidated tape.\5\ The Exchange
proposes to amend Footnote 3 in the Fee Schedule to specify that odd
lot transactions reported to the consolidated tape will be excluded
from CADV through January 31, 2014 for purposes of billing on the
Exchange. This proposed change is intended to maintain consistency in
the Exchange's current method of determining Tier qualifications for a
limited period of time in order to provide ETP Holders with an
opportunity to adjust to the potential impact of the inclusion of odd
lot transactions in CADV.
---------------------------------------------------------------------------

    \4\ See NYSE Arca Equities Rule 7.5. A round lot is generally an
execution of 100 shares or a multiple thereof.
    \5\ See Securities Exchange Act Release No. 70794 (October 31,
2013), 78 FR 66789 (November 6, 2013) (SR-CTA-2013-05) (Order
Approving the Eighteenth Substantive Amendment to the Second
Restatement of the CTA Plan). See also Securities Exchange Act
Release No. 70793 (October 31, 2013), 78 FR 66788 (November 6, 2013)
(File No. S7-24-89) (Order Approving Amendment No. 30 to the Joint
Self-Regulatory Organization Plan Governing the Collection,
Consolidation and Dissemination of Quotation and Transaction
Information for Nasdaq-Listed Securities Traded on Exchanges on an
Unlisted Trading Privileges Basis). See also Securities Exchange Act
Release No. 70898 (November 19, 2013), 78 FR 70386 (November 25,
2013) (SR-NYSE-2013-75). See also announcements regarding December
9, 2013 implementation date, available at https://cta.nyxdata.com/cta/popup/news/2385 and http://www.nasdaqtrader.com/TraderNews.aspx?id=uva2013-11. If the inclusion of odd lot
transactions in the consolidated tape is delayed to a date after
December 9, 2013, the manner of inclusion or exclusion of odd lot
transactions described in this proposal for purposes of billing on
the Exchange would similarly take effect on such later date.
---------------------------------------------------------------------------

    As described above, CADV is also used in the Fee Schedule to
differentiate between securities with different CADV levels for
purposes of LMM pricing. Odd lot transactions are currently excluded
when determining the particular LMM Tier that applies because odd lot
transactions are not currently reported to the consolidated tape. In
contrast to the proposed change described above, the Exchange will not
make any adjustment beginning on December 9, 2013 to consolidated tape
figures for purposes of determining the applicable LMM Tier.\6\
Therefore, beginning December 9, 2013, odd lot transactions reported to
the consolidated tape would be included in LMM Tier determinations.
These determinations are based on CADV from the previous month and LMMs
would therefore be able to adjust their activity immediately on
December 9, 2013 based on November 2013 CADV.
---------------------------------------------------------------------------

    \6\ The Exchange will reflect this in Footnote 3 in the Fee
Schedule.
---------------------------------------------------------------------------

    The proposed change is not otherwise intended to address any other
issues and the Exchange is not aware of any problems that ETP Holders
would have in complying with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change 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, because it provides for the equitable allocation of
reasonable dues, fees, and other charges among its members, issuers and
other persons using its facilities and does not unfairly discriminate
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed change is reasonable
because it will maintain consistency in the current manner of measuring
ETP Holder activity with respect to transaction pricing on the Exchange
for a limited period of time. Absent this change, the denominator of a
Tier threshold calculation (i.e., CADV) would increase immediately when
odd lot transactions begin to be reported to the consolidated tape and
an ETP Holder would therefore need to immediately increase its own
activity (i.e., the numerator) to qualify for the Tier compared to when
odd lot transactions were not included in the consolidated tape.
However, such an increase in ETP Holder activity would not result in
any corresponding benefit to the ETP Holder, because the Exchange is
not proposing a change to the Tier rates. The Exchange anticipates that
the eventual impact on determining Tier qualifications will be minimal
when odd lot transactions begin to be included in CADV. Notwithstanding
the anticipated minimal impact, however, the Exchange believes that it
is reasonable to provide ETP Holders with a limited transition period
to adapt to such impact.
    The Exchange believes that it is reasonable to include odd lot
transactions in LMM Tier determinations immediately on December 9, 2013
because such determinations are based on CADV from the previous month.
LMMs would therefore be able to adjust their activity immediately on
December 9, 2013 based on November 2013 CADV. This is different than
with excluding odd lot transactions from other CADV calculations for a
limited period of time because such other CADV calculations are
determined based on the actual billing month, not a prior month.
Furthermore, the Exchange does not anticipate that including odd lot
transactions in these determinations beginning on December 9, 2013
would have a significant impact on the number of securities for which
each particular LMM Tier would otherwise apply absent the inclusion of
odd lot transactions.\9\
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    \9\ Based on October 2013 data, the applicable LMM Tier would
change for only one security by including odd lot transactions.
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    The proposed change is equitable and not unfairly discriminatory
because it would apply to all ETP Holders equally. More specifically,
odd lot transactions would be excluded from CADV for billing purposes
for all ETP Holders for a limited period of time. The proposed change
is also equitable and not unfairly discriminatory because the inclusion
of odd lots in the CADV calculation beginning on February 1, 2014 would
occur at the same time for all ETP Holders, after the same nearly two
month transition period. The proposed change is also equitable and not
unfairly discriminatory because odd lot transactions would be
immediately included in LMM Tier determinations for all ETP Holders
that operate as LMMs. Immediately including odd lot transactions
reported to the consolidated tape in LMM Tier determinations is
equitable and not unfairly discriminatory because LMMs would be able to
adjust their activity immediately on December 9, 2013 based on November
2013 CADV. Finally, the Exchange believes that it is subject to
significant competitive forces, as described below in the Exchange's
statement regarding the burden on competition.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\10\ the Exchange
does not believe that the proposed rule change will impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. Instead, the proposed change would maintain
consistency in the Exchange's current method of determining Tier

qualifications for a limited period of time in order to give ETP
Holders an opportunity to adjust to the inclusion of odd lot
transactions in CADV. This proposed change is also designed to maintain
competition on the Exchange by eliminating the potential for ETP
Holders to immediately fail to qualify for a Tier due to the inclusion
of odd lot transactions in the consolidated tape beginning on December
9, 2013. The Exchange believes that competition would not be burdened
by including odd lot transactions in LMM Tier determinations because
the Exchange anticipates that this would not have a significant impact
on the number of securities for which each particular LMM Tier would
otherwise apply absent the inclusion of odd lot transactions--i.e.,
only one security to which an LMM is assigned based on October 2013
data.
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    \10\ 15 U.S.C. 78f(b)(8).
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    Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee or credit levels at a particular
venue to be unattractive. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and credits to
remain competitive with other exchanges. The billing method described
herein is based on objective standards that are applicable to all ETP
Holders and reflects the need for the Exchange to offer significant
financial incentives to attract order flow. For these reasons, the
Exchange believes that the proposed rule change reflects this
competitive environment and is therefore consistent with the Act.

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

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

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2013-133 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-NYSEArca-2013-133. 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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; 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-NYSEArca-2013-133 and should
be submitted on or before January 2, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-29496 Filed 12-10-13; 8:45 am]
BILLING CODE 8011-01-P