[Federal Register Volume 76, Number 106 (Thursday, June 2, 2011)]
[Notices]
[Page 31957]
[FR Doc No: 2011-13682]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. NJ11-13-000]

Buckeye Power, Inc.; Notice of Filing

    Take notice that on May 19, 2011, Buckeye Power, Inc. (Buckeye), in
accordance with Rule 203 of the Federal Energy Regulatory Commission's
Rules of Practice and Procedure,\1\ submitted its Rate Schedule FERC
No. 2 containing Buckeye's monthly revenue requirement for its
contribution to supply of Reactive Power and Voltage Control from
Generation Sources Services, as provided by Buckeye's Greenville
generating plant.
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    \1\ 18 CFR 385.203 (2010).
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    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the comment date. On or
before the comment date, it is not necessary to serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on June 20, 2011.

    Dated: May 26, 2011.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-13682 Filed 6-1-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 136 (Wednesday, July 16, 2014)]
[Notices]
[Pages 41550-41551]
[FR Doc No: 2014-16567]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPPT-2013-0426; FRL-9907-87]

EPA's Design for the Environment Program Logo Redesign; Notice of
Public Meeting

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA is interested in soliciting input regarding the Agency's
Design for the Environment (DfE) Program's logo redesign. The Agency
will consider the information gathered from this notice and other
sources as it selects a logo for the DfE Program that accurately
communicates the program's efforts to advance human and environmental
health protection through safer products. The Agency will hold two
listening sessions via webinars on this topic to give the public the
opportunity to provide feedback on draft logo designs.

DATES: The webinars will be held on Monday, August 4, 2014, from 1:00
p.m. to 2:00 p.m., EDT; and Tuesday, August 5, 2014, from 1:00 p.m. to
2:00 p.m., EDT.

    To participate in any of the webinars, you must register no later
than 11:59 p.m., EDT, on Friday, August 1, 2014.
    To request accommodation of a disability, please contact the
technical person listed under FOR FURTHER INFORMATION CONTACT,
preferably at least 10 days prior to the webinar, to give EPA as much
time as possible to process your request.

ADDRESSES: The meetings/listening sessions will be held via webinars.
See Unit III. How can I participate in this meeting? in SUPPLEMENTARY
INFORMATION. Further information about the webinars can be found on the
DfE Web site at http://www.epa.gov/dfe/label.
    Registration: To register, please visit http://www.epa.gov/dfe/label. You may also register to participate in a webinar by contacting
the technical person listed under FOR FURTHER INFORMATION CONTACT.

FOR FURTHER INFORMATION CONTACT: For technical information contact:
Bridget Williams, Economics, Exposure and Technology Division (7406M),
Office of Pollution Prevention and Toxics, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001;
telephone number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>    For general information contact: The TSCA-Hotline, ABVI-Goodwill,
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202)
554-1404; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    You may be potentially affected by this action if you manufacture,
distribute, label, certify, verify, and purchase or use consumer,
commercial, or industrial products that may be considered as ``green,''
``sustainable,'' or ``environmentally preferable.'' Participation in
this activity is voluntary. The following list of North American
Industrial Classification System (NAICS) codes is not intended to be
exhaustive, but rather provides a guide to help readers determine
whether this document applies to them. Potentially affected entities
may include but are limited to:
     Manufacturing (NAICS codes 31-33).
     Construction (NAICS code 23).
     Wholesale trade (NAICS code 42).
     Retail trade (NAICS codes 44-45).
     Professional, scientific and technical services (NAICS
code 54).
     Accommodations and food Services (NAICS code 72).
     Other services, except public administration (NAICS code
81).
     Public administration (NAICS code 92).

B. How can I get copies of this document and other related information?

    The docket for this action, identified by docket identification
(ID) number EPA-HQ-OPPT-2013-0426, is available at http://www.regulations.gov or at the Office of Pollution Prevention and Toxics
Docket (OPPT Docket), Environmental Protection Agency Docket Center
(EPA/DC), EPA West Bldg., Rm. 3334, 1301 Constitution Ave. NW.,
Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding legal holidays. The telephone
number for the Public Reading Room is<PHONE_NUMBER>, and the telephone
number for the OPPT Docket is<PHONE_NUMBER>. Please review the visitor
instructions and additional information about the docket available at
http://www.epa.gov/dockets.
    Comments: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPPT-2013-0426, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
     Mail: Document Control Office (7407M), Office of Pollution
Prevention and Toxics (OPPT), Environmental Protection Agency, 1200
Pennsylvania Ave. NW., Washington, DC 20460-0001.
    Hand Delivery: OPPT Document Control Office (DCO), EPA East Bldg.,
Rm. 6428, 1201 Constitution Ave. NW., Washington, DC. ATTN: Docket ID
Number EPA-HQ-OPPT-2013-0426. Please review the visitor instructions
and additional information about the docket available at http://www.epa.gov/dockets.

II. Background

    EPA is interested in soliciting input regarding the Agency's
redesign of the logo that represents the Design for the Environment
Program. While EPA does not intend to formally respond to all comments
that are submitted, EPA will consider the information gathered from
this notice and other sources as it selects a new DfE logo that
accurately reflects the program's efforts to advance human and
environmental health protection through the labeling of safer products.
    The EPA would like the DfE logo redesign to achieve the following:
     Better convey the scientific rigor and benefits of the
program (e.g., safer for human health) with a logo that is easier to
display on products, materials, and in digital media,
     Increase consumer and I/I purchaser recognition of
products bearing EPA's Safer Product Label, and
     Encourage innovation and development of safer chemicals
and chemical-based products.

III. How can I participate in this meeting?

    To participate in any of the webinars, identified by docket ID
number EPA-HQ-OPPT-2013-0426, you must register no later than 11:59
p.m., EDT, on Friday, August 1, 2014. To register, please visit the DfE
Web site at http://www.epa.gov/dfe/label. You may also register to
participate in a webinar by contacting the technical person listed
under FOR FURTHER INFORMATION CONTACT. Do not submit any information in
your request that is considered confidential business information
(CBI). Upon registration for a webinar, all registered participants
will receive information on how to participate in the webinar. For any
questions on webinar logistics or registration, consult the technical
person listed under FOR FURTHER INFORMATION CONTACT.

List of Subjects

    Environmental protection, environmentally preferable products,
green products, procurement, safer products, safer chemicals.

    Dated: July 7, 2014.
Wendy C. Hamnett,
Director, Office of Pollution Prevention and Toxics.
[FR Doc. 2014-16567 Filed 7-15-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 85, Number 133 (Friday, July 10, 2020)]
[Notices]
[Pages 41650-41653]
[FR Doc No: 2020-14870]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89225; File No. SR-NASDAQ-2020-034]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Nasdaq Rules 6130 and IM-6200-1

July 6, 2020.
    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 June 25, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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 Rule 6130 (Nasdaq Kill Switch) and
IM-6200-1 (Risk Settings) to provide Participants with additional
optional settings.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaq.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 changes under Nasdaq Rule 6130
(Nasdaq Kill Switch) and IM-6200-1 (Risk Settings) are to provide
Participants with additional optional settings in order to assist them
in their efforts to manage their risk levels. Once the optional risk
controls are set, the Exchange is authorized to take automated action
if a designated risk level for a Participant is exceeded. Such risk
settings would provide Participants with enhanced abilities to manage
their risk with respect to orders on the Exchange.

    The proposed pre-trade risk controls described below are meant to
supplement, and not replace, the Participant's own internal systems,
monitoring and procedures related to risk management. For
clarification, the Exchange does not guarantee that these controls will
be sufficiently comprehensive to meet all of a Participant's needs, nor
are the controls designed to be the sole means of risk management, and
using these controls will not necessarily meet a Participant's
obligations required by Exchange or federal rules (including, without
limitation, the Rule 15c3-5 under the Act \3\ (``Rule 15c3-5'')). Use
of the Exchange's Kill Switch or proposed risk setting in IM-6200-1(h)
will not automatically constitute compliance with Exchange or federal
rules and responsibility for compliance with all Exchange and SEC rules
remains with the Participant.\4\
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    \3\ 17 CFR 240.15c3-5.
    \4\ See Division of Trading and Markets, Responses to Frequently
Asked Questions Concerning Risk Management Controls for Brokers or
Dealers with Market Access, available at https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm.
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    Rule 6130(a) provides the definition of the Nasdaq Kill Switch,
which is an optional tool offered at no charge that enables
Participants to establish a pre-determined level of Net Notional Risk
Exposure (``NNRE''), to receive notifications as the value of executed
orders approaches the NNRE level, and to have order entry ports
disabled and open orders administratively cancelled when the value of
executed orders exceeds the NNRE level. Most order entry ports are
assigned to one MPID. In the event that multiple MPIDs are assigned to
one port, only the affected MPID is disabled from the port. The NNRE,
although not explicitly defined,\5\ accounts for the daily dollar
amount for buy and sell orders across all symbols, where both buy and
sell orders are counted as positive values. For purpose of calculating
NNRE, only executed orders are included.
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    \5\ The Exchange is not changing the NNRE functionality under
the proposed amendment. Rather, it is being renamed as the Gross
Executed Risk Exposure.
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    The Exchange is renaming the NNRE by proposing to remove references
to ``Net Notional Risk Exposure'' and to replace them with ``Gross
Executed Risk Exposure''. This risk level refers to a pre-established
maximum daily dollar amount for buy and sell orders across all symbols,
where both buy and sell orders are counted as positive values. For
purposes of calculating Gross Executed Risk Exposure, only executed
orders are included. The Exchange is not changing the NNRE calculation
under the proposed amendment. Rather, it will be renamed as the Gross
Executed Risk Exposure. This risk setting is similar to Cboe BZX
Exchange, Inc.'s (``BZX'') Interpretations and Policies .03(a)(1) of
BZX Rule 11.13.
    The Exchange is also proposing to add an additional risk setting
titled ``Gross Notional Risk Exposure,'' which refers to a pre-
established maximum daily dollar amount for buy and sell orders across
all symbols, where both buy and sell orders are counted as positive
values. For purposes of calculating Gross Notional Risk Exposure,
unexecuted orders on the Exchange book and executed orders are
included. This setting is similar to Interpretations and Policies
.03(a)(2) of BZX Rule 11.13, except BZX excludes unexecuted orders and
counts purchases as positive values and sales are counted negative
values. Additionally, the Exchange's rule is similar to New York Stock
Exchange LLC (``NYSE'') Rule 7.19(a)(5), except NYSE includes orders
routed on arrival. While the current functionality would continue to be
available, this additional proposed risk setting would allow a
Participant to manage its risk more comprehensively, instead of relying
solely on the NNRE functionality offered today. For purposes of Rule
6130, the Exchange proposes to use the term ``Participant'' as defined
in Rule 4701(c).\6\
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    \6\ Pursuant to Nasdaq Rule 4701 (c), a ``Participant'' is
defined as an entity that fulfills the obligations contained in Rule
4611 regarding participation in the System, and shall include: (1)
``Nasdaq ECNs,'' members that meet all of the requirements of Rule
4623, and that participates in the System with respect to one or
more System Securities; (2) ``Nasdaq Market Makers'' or ``Market
Makers'', members that are registered as Nasdaq Market Makers for
purposes of participation in the System on a fully automated basis
with respect to one or more System securities; and (3) ``Order Entry
Firms,'' members that are registered as Order Entry Firms for
purposes of entering orders in System Securities into the System.
This term shall also include any Electronic Communications Network
or Alternative Trading System (as such terms are defined in
Regulation NMS) that fails to meet all the requirements of Rule
4623.
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    The Exchange also proposes to make a conforming change to Rule
6130(b) by removing ``Net Notional Risk Exposure'' and replacing it
with ``Establishing and Adjusting Levels.'' The Exchange is also
proposing to specify that a Participant's clearing member, as discussed
below, may set the risk levels for each MPID individually. This action
is similar to Interpretations and Policies .03(b)(1) of BZX Rule 11.13
and NYSE Rule 7.19(b)(3)(B), except unlike NYSE, the Exchange does not
allow for setting risk levels at the sub-ID of an MPID. Additionally,
the proposal allows for the clearing member, in addition to the
Participant, to set and adjust the values before the beginning of a
trading day as well as set and adjust them during the trading day. This
is similar to Interpretations and Policies .03(b) of BZX Rule 11.13 and
NYSE Rule 7.19(b)(3)(A).
    The Exchange is proposing under Rule 6130(c) to allow clearing
members, if designated pursuant to Rule 6130(d), to receive
notifications when the total value of executed orders, and if
applicable, unexecuted orders associated with an MPID exceeds 50, 75,
85, 90, and 95 percent of the applicable risk level values. This rule
is similar to Interpretations and Policies .03(d) of BZX Rule 11.13 and
NYSE Rule 7.19(b)(4).
    A clearing member guarantees transactions executed on Nasdaq for
members with whom it has entered into a clearing arrangement, and
therefore bears the risk associated with those transactions. Because
clearing members bear the risk on behalf of their Participant, the
Exchange believes that it is appropriate for the clearing member to
have knowledge of what risk settings the Participant may utilize within
the Exchange's trading system, as well as the option to set and adjust
the risk levels. Therefore, the Exchange proposes to make the proposed
optional risk settings in Rule 6130 available to clearing members, if
so authorized by the Participant.
    Proposed Rule 6130(d) would allow for a Participant that does not
self-clear to allocate responsibility for establishing and adjusting
the risk levels to a clearing member that clears transactions on behalf
of the Participant. A Participant may request to sign up for the Kill
Switch optional setting by contacting Nasdaq Subscriber Services or by
completing a Front End Request form.\7\ In order to allocate
responsibility to a clearing member, a Participant must provide the
Exchange with authorization, either by providing Nasdaq Subscriber
Services with written authorization or by requesting the appropriate
user role and permission for the clearing member via the Front End
Request form. The Participant may adjust the user role and permissions
at any time. If a Participant chooses to designate responsibility to
its clearing member, the Participant may view any risk levels
established by the clearing member pursuant to proposed Rule 6130(d).
Additionally, by allocating responsibility to its clearing member,

the Participant consents to the Exchange taking action as provided for
in proposed Rule 6130(e). Even if a clearing member is designated, a
Participant will continue to be notified by the Exchange of any action
taken regarding its trading activity. By allowing Participants to
allocate the responsibility for establishing and adjusting such risk
settings to its clearing member, the Exchange believes clearing members
may reduce potential risks that they assume when clearing for
Participants of the Exchange. A Participant may revoke responsibility
allocated to its clearing member at any time by following the same
process described above that is used to grant the clearing member
authorization.
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    \7\ The Front End Request form is available at https://www.nasdaqtrader.com/EASP/TraderEASP.aspx?id=FrontEndForm.
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    BZX and NYSE also provide similar designations to its clearing
members pursuant to Interpretations and Policies .03(c) of BZX Rule
11.13 and NYSE Rule 7.19(b)(2). However, unlike NYSE, the Exchange does
not allow for multiple risk level values to be in place at one time.
    The Exchange also proposes to renumber current Rule 6130(d) as Rule
6130(e) and retitle it to more accurately describe the provision by
removing ``Operation'' and replacing it with ``Breach Action and
Reinstatement.'' Additionally, the Exchange is proposing to clarify
that when a pre-established risk level is breached, the Kill Switch
will be triggered. With the limited exceptions noted below the Kill
Switch will operate at all times and on all orders when the Nasdaq
System is open. When a risk level is breached, order entry for the
breached MPID is disabled and all unexecuted orders are cancelled, with
the exception of cancellations prohibited by Nasdaq Rules 4752, 4753
and 4754. The Kill Switch function will not cancel orders directed to a
Nasdaq Cross during the period leading up to the Cross when order
cancellation is prohibited (i.e. between 9:28 a.m. ET to the time of
the Nasdaq Opening Cross; between 3:50 p.m. ET to the time of the
Nasdaq Closing Cross). Either the Participant or the clearing member
may contact the Exchange to request reactivation of the MPID before
trading will be reauthorized.
    As a reminder, pursuant to current Rule 6200, the Exchange will
continue to share any Participant risk settings in the trading system
that are specified in Rule 6130 and IM-6200-1 with the clearing member
that clears transactions on behalf of the Participant even if the
clearing member is not designated. Under current IM-6200-1, the
Exchange offers certain risk settings applicable to a Participant on
the Exchange. Proposed Rule IM-6200-1(h) would allow for a Participant
to limit the maximum dollar amount that the Participant may associate
with an order placed on the Exchange. This risk setting is similar to
the risk control provided by NYSE pursuant to Rule 7.19(a)(3). When the
Maximum Single Order Notional Check is enabled, if a Participant
breaches this risk setting, the single order will be rejected by the
system. The action taken is similar to NYSE Rule 7.19(c)(2).
    The Exchange is also proposing to make the following non-
substantive conforming changes:
     Capitalize the term ``Participant'' when referenced
throughout the rule.
     Remove the term ``open orders'' and replace with
``unexecuted orders''.
     Remove all references to the acronym ``NNRE'' throughout
the rule in conjunction with the removal of the reference to ``Net
Notional Risk Exposure.''
     Renumber IM-6200-1 to conform to the addition of proposed
Rule IM-6200-1(h).

2. Statutory Basis

    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Exchange believes the proposed amendment will
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it provides functionality
for a Participant to manage its risk exposure under Rule 6130 and IM-
6200-1, while also providing a notification system under Rule 6130(c)
that would help to ensure the Participant and its clearing member are
aware of developing issues. In addition, the proposed amendments to
Rule 6130 would provide clearing members, who have assumed certain
risks of Participants, greater control over risk tolerance and exposure
on behalf of their correspondent Participant, while helping to ensure
that both Participant and its clearing member are aware of developing
issues.
    A clearing member guarantees transactions executed on Nasdaq for
members with whom it has entered into a clearing arrangement, and
therefore bears the risk associated with those transactions. The
Exchange therefore believes that it is appropriate for the clearing
member to have knowledge of what risk settings the Participant may
utilize within the Exchange's trading system, as well as the option to
set and adjust the risk levels. The proposal will permit clearing
members who have a financial interest in the risk settings of
Participants with whom the Participants have entered into clearing
arrangements to better monitor and manage the potential risks assumed
by clearing members, thereby providing clearing members with greater
control and flexibility over setting their own risk tolerance and
exposure and aiding clearing members in complying with the Act.
    In addition, the Exchange believes that the proposed amendments
under Rule 6130 and IM-6200-1 are designed to protect investors and the
public interest because the proposed functionalities are a form of risk
mitigation that will aid Participants and clearing members in
minimizing their financial exposure and reduce the potential for
disruptive, market-wide events. The proposed Gross Executed Risk
Exposure and Gross Notional Risk Exposure settings are appropriate
measures to serve as an additional tool for Participants and clearing
members to assist them in identifying risk exposure by identifying when
the Participant is reaching its maximum dollar amount for purchases and
sales across all symbols. The Exchange also believes the proposed
amendments will assist Participants and clearing members in managing
their financial exposure which, in turn, could enhance the integrity of
trading on the securities markets and help to assure the stability of
the financial system. Moreover, a Participant may revoke responsibility
allocated to its clearing member at any time.
    Further, the Exchange believes that the proposed amendments under
Rule 6130 and IM-6200-1 will foster cooperation and coordination with
persons facilitating transactions in securities because under Rule
6130(c), the Exchange will provide alerts when a Participant's trading
activity reaches certain thresholds and under IM-6200-1, the Exchange
will limit the Participant's maximum dollar amount placed on an order.
As such, the Exchange may help clearing members monitor the risk levels
of corresponding Participants.
    Finally, the Exchange believes that the proposed rule changes do
not unfairly discriminate among the Exchange's Participants because use
of the risk settings under Rule 6130 and IM-6200-1(h) are optional and
available

to all Participants, and not a prerequisite for participation on the
Exchange. In addition, because all orders on the Exchange would pass
through the risk checks, there would be no difference in the latency
experienced by Participants who have opted to use the risk settings
versus those who have not opted to use them.\10\
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    \10\ All Exchange orders pass through a basic risk checks
regardless of whether a Participant opts into a risk setting.
---------------------------------------------------------------------------

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. In fact, the Exchange believes
that the proposal will have a positive effect on competition because,
it would allow the Exchange to offer risk management functionality that
is comparable to functionality being offered by other national
securities exchanges.\11\ Moreover, by providing Participants and their
clearing members additional means to monitor and control risk, the
proposed rule may increase confidence in the proper functioning of the
markets and contribute to additional competition among trading venues
and broker-dealers. Rather than impede competition, the proposal is
designed to facilitate more robust risk management by Participants and
clearing members, which, in turn, could enhance the integrity of
trading on the securities markets and help to assure the stability of
the financial system.
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release Nos. 88904(May 19,
2020) 85 FR 31560 (May 26, 2020) (SR-NYSEArca-2020-43); 88776 (April
29, 2020) 85 FR 26768 (May 5, 2020) (SR-NYSE-2020-17) (Approval
Order); 88599 (April 8, 2020) 85 FR 20793 (April 14, 2020) (SR-
CboeBZX-2020-006) (Approval Order).
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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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of 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.
---------------------------------------------------------------------------

    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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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_ADDRESS>Please include
File Number SR-NASDAQ-2020-034 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-NASDAQ-2020-034.
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-NASDAQ-2020-034 and should
be submitted on or before July 31, 2020.

    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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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14870 Filed 7-9-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 203 (Tuesday, October 21, 2014)]
[Notices]
[Pages 63003-63005]
[FR Doc No: 2014-24949]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73363; File No. SR-BATS-2014-038]

Self-Regulatory Organizations; BATS Exchange, Inc.; Order
Granting Approval of a Proposed Rule Change to Rules 11.9 and 21.1 of
BATS Exchange, Inc. To Add Price Adjust Functionality

October 15, 2014.

I. Introduction

    On August 26, 2014, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``Commission'') pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend Exchange Rules 11.9 and 21.1 to add Price
Adjust functionality to the Exchange's equities and options trading
platforms. The proposed rule change was published for comment in the
Federal Register on September 4, 2014.\3\ The Commission did not
receive any comments on the proposed rule change. This order approves
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 72945 (August 28,
2014), 79 FR 52790 (``Notice'').
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II. Description of the Proposal

    The Exchange has proposed to amend BATS Rule (``Rule'') 11.9 to add
a new, optional Price Adjust functionality to the Exchange's cash
equities trading platform (``BATS Equities'').\4\ Consistent with its
practice of offering similar functionality for the Exchange's equity
options trading platform (``BATS Options'') as it does for BATS
Equities, the Exchange also has proposed to amend Rule 21.1 to add
Price Adjust functionality to BATS Options.\5\ On both BATS Equities
and BATS Options, the Price Adjust functionality would have to be
elected by a User \6\ in order to be applied by the Exchange.
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    \4\ See proposed Rule 11.9(g).
    \5\ See proposed Rules 21.1(i) and (j).
    \6\ As defined in Rule 1.5(cc), a User is ``any Member or
Sponsored Participant who is authorized to obtain access to the
System pursuant to Rule 11.3.''
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BATS Equities

    Currently, the Exchange offers price sliding to ensure compliance
with Regulation NMS and Regulation SHO for BATS Equities, as well as
price sliding for BATS Options to ensure compliance with rules
analogous to Regulation NMS adopted by the Exchange and other options
exchanges. With respect to price sliding offered to ensure compliance
with Regulation NMS (``display-price sliding''), under the Exchange's
current rules for BATS Equities, if, at the time of entry, a non-
routable order would lock or cross a Protected Quotation \7\ displayed
by another trading center, the Exchange ranks (and in the case of a
cross, re-prices) such order at the locking price, and displays such
order at one minimum price variation below the NBO for bids and above
the NBB for offers.\8\ The Exchange currently offers display-price
sliding functionality to avoid locking or crossing other markets'
Protected Quotations, but does not price slide to avoid executions on
the Exchange's order book (``BATS Book''). Specifically, when the
Exchange receives an incoming order that could execute against resting
displayed liquidity but an execution does not occur because such
incoming order is designated as an order that will not remove liquidity
(e.g., a BATS Post Only Order), then the Exchange will cancel the
incoming order unless it is permitted to remove liquidity upon
entry.\9\
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    \7\ As defined in Rule 1.5(t), applicable to BATS Equities, a
``Protected Quotation'' is ``a quotation that is a Protected Bid or
Protected Offer.'' In turn, the term ``Protected Bid'' or
``Protected Offer'' means ``a bid or offer in a stock that is (i)
displayed by an automated trading center; (ii) disseminated pursuant
to an effective national market system plan; and (iii) an automated
quotation that is the best bid or best offer of a national
securities exchange or association.'' As defined in BATS Rule 27.1,
applicable to BATS Options, a ``Protected Quotation'' is ``a
Protected Bid or Protected Offer.'' In turn, the term ``Protected
Bid'' or ``Protected Offer'' means ``a Bid or Offer in an options
series, respectively, that: (A) Is disseminated pursuant to the OPRA
Plan; and (B) Is the Best Bid or Best Offer, respectively, displayed
by an Eligible Exchange.'' An ``Eligible Exchange'' is defined in
Rule 27.1 as means ``a national securities exchange registered with
the SEC in accordance with Section 6(a) of the Exchange Act that:
(a) is a Participant Exchange in OCC (as that term is defined in
Section VII of the OCC by-laws); (b) is a party to the OPRA Plan (as
that term is described in Section I of the OPRA Plan); and (c) if
the national securities exchange chooses not to become a party to
this Plan, is a participant in another plan approved by the
Commission providing for comparable Trade-Through and Locked and
Crossed Market protection.''
    \8\ See Rule 11.9(g)(1).
    \9\ The Exchange notes that BATS Post Only Orders are permitted
to remove liquidity from the BATS Book if the value of price
improvement associated with such execution equals or exceeds the sum
of fees charged for such execution and the value of any rebate that
would be provided if the order posted to the BATS Book and
subsequently provided liquidity. See Rule 11.9(c)(6). Similarly,
Partial Post Only at Limit Orders are permitted to remove price
improving liquidity as well as a User-selected percentage of the
remaining order at the limit price if, following such removal, the
order can post at its limit price. See Rule 11.9(c)(7).
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    Under the proposed Price Adjust process, by contrast, an order
eligible for display by the Exchange that, at the time of entry, would
create a violation of Rule 610(d) of Regulation NMS by locking or
crossing a Protected Quotation of an external market or the Exchange
will be ranked and displayed at one minimum price variation below the
current NBO (for bids) or to one minimum price variation above the
current NBB (for offers).\10\ Thus, the proposed Price Adjust process
differs from the Exchange's current display-price sliding process in
two main ways. First, the Price Adjust process would both rank and
display such an order at one minimum price variation below the current
NBO or above the current NBB

(rather than ranking the order at the locking price). Second, Price
Adjust would be based on Protected Quotations at external markets and
at the Exchange (rather than just Protected Quotations at external
markets).
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    \10\ See proposed Rule 11.9(g)(2)(A).
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    Because the Exchange will route orders to external markets with
locking or crossing quotations, the Exchange notes that the Price
Adjust process would only be applicable to non-routable orders,
including BATS Only Orders, BATS Post Only Orders and Partial Post Only
at Limit Orders. In turn, because BATS Only Orders will execute against
locking or crossing interest on the Exchange (including both Protected
Quotations as well as any non-displayed interest), the fact that Price
Adjust would be based on Protected Quotations at the Exchange is only
relevant for BATS Post Only Orders and Partial Post Only at Limit
Orders. The Price Adjust process would adjust, as described above, the
price of a display-eligible BATS Post Only Order or Partial Post Only
at Limit Order that would lock or cross a Protected Quotation displayed
by the Exchange unless such order is permitted to remove liquidity as
described in Rules 11.9(c)(6) and (c)(7), respectively,\11\ whereas the
display-price sliding process would cancel such order back to the User
unless it is permitted to remove liquidity under Rules 11.9(c)(6) or
(c)(7).
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    \11\ See proposed Rule 11.9(g)(2)(D).
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    In addition, the Exchange has proposed that, in the event the NBBO
changes such that an order subject to Price Adjust would not lock or
cross a Protected Quotation, the order will receive a new timestamp,
and will be displayed at the price that originally locked the NBO (for
bids) or NBB (for offers) on entry.\12\ All orders that are re-ranked
and re-displayed pursuant to Price Adjust would retain their priority
as compared to other orders subject to Price Adjust based upon the time
such orders were initially received by the Exchange.\13\ Further, as
proposed, following the initial ranking and display of an order subject
to Price Adjust, an order will only be re-ranked and re-displayed to
the extent it achieves a more aggressive price.\14\ In order to offer
multiple-price sliding to Exchange Users that select Price Adjust, the
Exchange also has proposed that the ranked and displayed prices of an
order subject to Price Adjust may be adjusted once or multiple times
depending upon the instructions of a User and changes to the prevailing
NBBO.\15\ Multiple-price sliding pursuant to Price Adjust would be
optional and would have to be explicitly selected by a User before it
will be applied (the same is true for display-price sliding). Orders
subject to multiple price sliding for Price Adjust would be permitted
to move all the way back to their most aggressive price, whereas orders
subject to Price Adjust without an explicit selection of multiple price
sliding may not be adjusted to their most aggressive price, depending
upon market conditions and the limit price of the order upon entry.
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    \12\ See proposed Rule 11.9(g)(2)(B).
    \13\ Id.
    \14\ Id.
    \15\ See proposed Rule 11.9(g)(2)(C).
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    Further, the Exchange has proposed that in the event the NBBO
changes such that display-eligible orders subject to display-price
sliding and Price Adjust would not lock or cross a Protected Quotation
and are eligible to be displayed at a more aggressive price, the System
will first display all orders subject to display-price sliding at their
ranked price followed by orders subject to Price Adjust, which will be
re-ranked and re-displayed as set forth in proposed Rule
11.9(g)(2).\16\ The Exchange believes it is reasonable to un-slide
orders subject to display-price sliding before it un-slides orders
subject to Price Adjust because Price Adjust is a less aggressive form
of price sliding than display-price sliding, in that an order submitted
by a User that elects Price Adjust will be displayed and ranked at the
same price rather than ranked at the locking price and displayed at a
less aggressive price.
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    \16\ See proposed Rule 11.9(g)(3).
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    The Exchange currently applies display-price sliding to Non-
Displayed Orders that cross Protected Quotations of external markets.
The Exchange is not proposing to change its handling of Non-Displayed
Orders other than by updating the language of its rule to reflect that
it will handle Non-Displayed Orders for which a User has selected Price
Adjust in the same way as it currently handles Non-Displayed Orders for
which a User has selected display-price sliding.\17\ As such, Non-
Displayed Orders that are subject to Price Adjust (or display-price
sliding) would be ranked at the locking price on entry.\18\ The
proposed rule also would state that price sliding for Non-Displayed
Orders is functionally equivalent to the handling of displayable orders
except that such orders will not have a displayed price and will not be
re-priced again unless such orders cross a Protected Quotation of an
external market (i.e., such orders are not un-slid).\19\
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    \17\ See proposed Rule 11.9(g)(4).
    \18\ Id.
    \19\ Id.
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    Lastly, the Exchange does not propose to modify its current short
sale price sliding functionality, which is designed to ensure
compliance with Regulation SHO, and proposes to apply that
functionality to orders for which Price Adjust is chosen. As a result,
orders for which a User selects either display-price sliding or Price
Adjust will be subject to the Exchange's existing short sale price
sliding functionality.\20\
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    \20\ See proposed Rule 11.9(g)(6).
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BATS Options--Price Adjust

    In order to maintain consistency between analogous processes
offered by BATS Equities and BATS Options, the Exchange has proposed to
amend Rule 21.1 to add Price Adjust functionality to BATS Options,
largely in conformance with the changes described above related to the
Price Adjust process on BATS Equities. BATS Options currently offers
display-price sliding (including multiple display-price sliding) to
ensure compliance with locked and crossed market rules relevant to
participation on BATS Options. The proposed Price Adjust functionality
for BATS Options, as described in proposed Rules 21.1(i) and (j), is
similar to the proposed functionality for BATS Equities, with the
exception that it omits language related to applying Price Adjust to
non-displayed orders because BATS Options does not have non-displayed
orders.

III. Discussion and Commission Findings

    After careful review of the proposal, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
the rules and regulations thereunder that are applicable to a national
securities exchange.\21\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\22\
which requires, among other things, that the rules of an exchange be
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.
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    \21\ In approving the proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
    \22\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to offer Price Adjust
functionality is consistent with Section

6(b)(5) of the Act,\23\ as well as Rule 610 of Regulation NMS \24\ and
Rule 201 of Regulation SHO.\25\ The Exchange notes that it is not
modifying the overall functionality of price sliding, which, to avoid
locking or crossing quotations of other market centers or to comply
with applicable short sale restrictions, displays orders at permissible
prices while retaining a price at which the User is willing to buy or
sell, in the event display at such price or an execution at such price
becomes possible.\26\ Instead, the Exchange is making changes to adopt
an optional form of price sliding, Price Adjust, which will rank orders
at their displayed price rather than, as with the current display-price
sliding process, at the locking price. The exchange notes that, as a
result, while subject to Price Adjust sliding, an order is ranked at a
less aggressive price than it would be under the display-price sliding
process, which may be preferable to certain Users that wish to provide
liquidity but do not wish to cross the spread (i.e., if buying, do not
wish to trade at the NBO or if selling, do not wish to trade at the
NBB).\27\
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    \23\ Id.
    \24\ 17 CFR 242.610.
    \25\ 17 CFR 242.201.
    \26\ See Notice, supra, note 3 at 52793.
    \27\ Id.
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    In addition, as noted above, in contrast to display-price sliding,
which is based solely on Protected Quotations at equities markets and
options exchanges other than the Exchange, the proposed Price Adjust
process would be based on Protected Quotations at external markets and
at the Exchange. According to the Exchange, applying the Price Adjust
process to orders that, upon entry, cannot be executed or displayed at
their limit price should contribute to more displayed liquidity on the
Exchange than if such orders were cancelled back to the User.\28\
Therefore, the Exchange believes the proposal to apply the Price Adjust
process to orders that cannot be displayed because they would lock or
cross displayed contra-side interest on the Exchange (and not just
external markets) will promote just and equitable principles of trade,
remove impediments to, and perfect the mechanism of, a free and open
market and a national market system.\29\ The Exchange also states that
the proposed Price Adjust process will enable the System to avoid
displaying a locking or crossing quotation in order to ensure
compliance with Rule 610(d) of Regulation NMS.\30\
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    \28\ Id.
    \29\ Id.
    \30\ Id.
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    Further, the Exchange believes it is reasonable to un-slide
display-price sliding orders before it un-slides Price Adjust orders
because Price Adjust is a less aggressive form of price sliding than
display-price sliding, in that an order submitted by a User would be
displayed and ranked at the same price rather than ranked at the
locking price and displayed at a less aggressive price.\31\ Because
orders subject to display-price sliding are ranked at and subject to
execution at higher prices when buying and lower prices when selling,
the Exchange believes that such orders should be re-displayed before
orders subject to Price Adjust orders in response to changes to the
NBBO.\32\
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    \31\ Id.
    \32\ Id.
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    Rule 610(d) requires exchanges to establish, maintain, and enforce
rules that require members reasonably to avoid ``[d]isplaying
quotations that lock or cross any protected quotation in an NMS
stock.'' \33\ Such rules must be ``reasonably designed to assure the
reconciliation of locked or crossed quotations in an NMS stock,'' and
must ``prohibit . . . members from engaging in a pattern or practice of
displaying quotations that lock or cross any quotation in an NMS
stock.'' \34\ The Exchange believes that the proposed Price Adjust
functionality for BATS Equities as well as BATS Options will assist
Users by displaying orders at permissible prices.\35\ Similarly, Rule
201 of Regulation SHO \36\ requires trading centers to establish,
maintain, and enforce written policies and procedures reasonably
designed to prevent the execution or display of a short sale order at a
price at or below the current NBB under certain circumstances. The
Exchange represents that its short sale price sliding will continue to
operate the same for Users that select Price Adjust as it does for
Users that select the display-price sliding process currently offered
by the Exchange.\37\
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    \33\ 17 CFR 242.610(d).
    \34\ Id.
    \35\ See Notice, supra, note 3 at 52793.
    \36\ 17 CFR 242.201.
    \37\ See Notice, supra, note 3 at 52793.
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    For the reasons noted above, the Commission finds that the proposed
rule change is consistent with the Act, including Section 6(b)(5) of
the Act,\38\ which requires, among other things, that the rules of an
exchange be designed to promote just and equitable principles of trade,
remove impediments to, and perfect the mechanism of, a free and open
market and a national market system, and, in general, protect investors
and the public.
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    \38\ 15 U.S.C. 78f(b)(5).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\39\ that the proposed rule change, SR-BATS-2014-038, be, and
hereby is, approved.
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    \39\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
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    \40\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24949 Filed 10-20-14; 8:45 am]
BILLING CODE 8011-01-P