" This bag contains seed treated with PCNB. To avoid possible adverse health effects,

when opening this bag or loading the treated seed, wear long sleeved shirt, long pants,

shoes plus socks, chemical resistant gloves, and a NIOSH approved respirator equipped with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter.

" Do Not Use for Food, Feed, or Oil."

" After seeds have been planted, do not enter or allow worker entry into treated areas during the restricted entry interval ( REI) of 12 hours. Exception: Once seeds are planted in soil or other planting media, the Worker Protection Standard allows workers to enter the treated area without restriction if there will be no worker contact with the soil/ media subsurface."  88

Description Amended Labeling Language Placement on Label One of these statements may be added to a label to allow reformulation of the product for a specific use or all additional uses supported by a formulator or user group " This product may be used to formulate products for specific use( s) not listed on the MP label if the formulator, user group, or grower has complied with U. S. EPA submission requirements regarding support of such use( s)."

" This product may be used to formulate products for any additional use( s) not listed on the MP label if the formulator, user group, or grower has complied with U. S. EPA submission requirements regarding support of such use( s)." Directions for Use Environmental Hazards Statements Required by the RED and Agency Label Policies " This chemical is toxic to fish and aquatic invertebrates. Do not discharge effluent containing this product into lakes, streams, ponds, estuaries, oceans, or other waters unless in accordance with the requirements of a National Pollution Discharge Elimination System ( NPDES) permit and the permitting authority has been notified in writing prior to discharge. Do not discharge effluent containing this product to sewer systems without previously notifying the local sewage treatment plant authority. For guidance contact your State Water Board or Regional Office of the EPA." Precautionary Statements  89

End Use Products NOTE: PPE established on the basis of Acute Toxicity of the end use product must be compared to the active ingredient PPE in this document. The more protective PPE must be placed in the product labeling. For guidance on which PPE is considered more protective, see PR Notice 93 7.

PPE Requirements Established by the RED for Liquid, Dry Flowable, or Water Dispersible Granule formulations ( excludes products labeled for seed treatment use)

NOTE: Products labeled for nonseed treatment uses must not be labeled for seed treatment use also. NOTE: When cole crops are not listed on the product label,

references to this use may be removed from the respirator statement.

NOTE: When greenhouse uses or bulb soak uses are prohibited on the product label, references to the corresponding use( s) may be removed from the respirator statement. " Personal Protective Equipment ( PPE)"

" Some materials that are chemical resistant to this product are ( registrant inserts correct chemical resistant material). If you want more options, follow the instructions for category ( registrant inserts A, B, C, D, E, F, G, or H) on an EPA chemical resistance category selection chart."

" Mixers, loaders, applicators, and other handlers must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves, except for applicators using groundboom equipment, and chemical resistant apron when involved in bulb soak applications.

In addition, all 1) mixers and loaders, 2) applicators making applications to cole crops, 3)

applicators performing bulb soak applications, and 4) applicators making applications in greenhouses must wear a NIOSH approved respirator equipped with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter."

" See Engineering Controls for more options."

Instruction to Registrant: Drop the " N" type prefilter from the respirator statement, if the pesticide product contains, or is used with, oil. Immediately following/ below Precautionary Statements: Hazards to Humans and Domestic Animals  90

End Use Products PPE Requirements Established by the RED for Wettable Powder formulations ( excludes products labeled for seed treatment use)

NOTE: Wettable powder formulations must be packaged in water soluble packets.

NOTE: Products labeled for nonseed treatment uses must not be labeled for seed treatment use also.

. NOTE: When cole crops are not listed on the product label,

references to this use may be removed from the respirator statement.

NOTE: When greenhouse uses or bulb soak uses are prohibited on the product label, references to the corresponding use( s) may be removed from the respirator statement. " Personal Protective Equipment ( PPE)"

" Some materials that are chemical resistant to this product are ( registrant inserts correct chemical resistant material). If you want more options, follow the instructions for category ( registrant inserts A, B, C, D, E, F, G, or H) on an EPA chemical resistance category selection chart."

" Mixers, loaders, applicators, and other handlers must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves except for applicators using groundboom equipment,

chemical resistant apron for all mixers and loaders and for all applicators involved in bulb soak applications.

In addition, all 1) applicators making applications to cole crops, 2) applicators performing bulb soak applications, and 3) applicators making applications in greenhouses must wear a NIOSH approved respirator with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter."

" See Engineering Controls for more requirements and options."

Instruction to Registrant: Drop the " N" type prefilter from the respirator statement, if the pesticide product contains, or is used with, oil. Immediately following or below Precautionary Statements: Hazards to Humans and Domestic Animals  91

End Use Products PPE Requirements Established by the RED for Granular Formulations NOTE: When cole crops are not listed on the product label,

references to this use may be removed from the respirator statement.

NOTE: When greenhouse uses are prohibited on the product label, references to these uses may be removed from the respirator statement . " Personal Protective Equipment ( PPE)"

" Loaders, applicators, and other handlers must wear:

long sleeved shirts and long pants,

shoes plus socks,

In addition, all 1) loaders, 2) applicators making applications to cole crops, and 3)

applicators making applications in greenhouses must wear a NIOSH approved respirator equipped with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter."

" See Engineering Controls for more options."

Instruction to Registrant: Drop the " N" type prefilter from the respirator statement, if the pesticide product contains, or is used with, oil. Immediately following/ below Precautionary Statements: Hazards to Humans and Domestic Animals PPE Requirements Established by the RED for Dust formulations labeled to treat seeds NOTE: Dust formulations are limited solely to seed treatment uses. " Personal Protective Equipment ( PPE)"

" Some materials that are chemical resistant to this product are ( registrant inserts correct chemical resistant material). If you want more options, follow the instructions for category ( registrant inserts A, B, C, D, E, F, G, or H) on an EPA chemical resistance category selection chart."

" All loaders, applicators, handlers involved in clean up of the seed treatment area, and handlers calibrating, maintaining, repairing, or cleaning seed treatment equipment must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves,

chemical resistant apron when loading, or cleaning spills or equipment,

a NIOSH approved half face, full face or hood style respirator with  a dust/ mist filtering cartridge ( MSHA/ NIOSH approval number prefix TC 21C), or  a canister approved for pesticides ( MSHA/ NIOSH approval number prefix TC 14G),

or Immediately following/ below Precautionary Statements: Hazards to Humans and Domestic Animals  92

End Use Products  a cartridge or canister with any N*, R or P or He filter. A quarter face cup style dust/ mist filtering respirator is not permitted."

" Persons drying or bagging treated seed, sewing or stacking bags containing treated seed,

or operating a forklift within the seed treatment area are handlers and must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves, except when sewing bags of treated seed,

a NIOSH approved respirator with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter. A NIOSH approved quarter face cup style dust/ mist filtering respirator is one type of respirator which is permitted."

" See Engineering Controls for more options."

Instruction to Registrant: Drop the " N" type prefilter from the respirator statement, if the pesticide product contains, or is used with, oil.

PPE Requirements Established by the RED for Liquid, Dry Flowable, and Water Dispersible Granule formulations labeled for seed treatment use NOTE: Products labeled for seed treatment uses must not be labeled for non seed treatment use also. " Personal Protective Equipment ( PPE)"

" Some materials that are chemical resistant to this product are ( registrant inserts correct chemical resistant material). If you want more options, follow the instructions for category [ registrant inserts A, B, C, D, E, F, G, or H] on an EPA chemical resistance category selection chart."

" All mixers, loaders, applicators, and handlers involved in clean up of the seed treatment area and all handlers calibrating, maintaining, repairing, or cleaning seed treatment equipment must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves,

chemical resistant apron when mixing, loading, cleaning up spills or equipment,

a NIOSH approved half face, full face or hood style respirator with  a dust/ mist filtering cartridge ( MSHA/ NIOSH approval number prefix TC 21C), or Immediately following/ below Precautionary Statements: Hazards to Humans and Domestic Animals  93

End Use Products  a canister approved for pesticides ( MSHA/ NIOSH approval number prefix TC 14G),

or  a cartridge or canister with any N*, R or P or He filter. A quarter face cup style dust/ mist filtering respirator is not permitted."

" Persons drying or bagging treated seed, sewing or stacking bags containing treated seed,

or operating a forklift within the seed treatment area are handlers and must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves, except when sewing bags of treated seed,

a NIOSH approved respirator with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter. A NIOSH approved quarter face cup style dust/ mist filtering respirator is one type of respirator which is permitted."

" See Engineering Controls for more options."

Instruction to Registrant: Drop the " N" type prefilter from the respirator statement, if the pesticide product contains, or is used with, oil.

PPE Requirements Established by the RED for Wettable Powder formulations labeled for seed treatment use NOTE: Wettable powder formulations must be packaged in water soluble packets. " Personal Protective Equipment ( PPE)"

" Some materials that are chemical resistant to this product are ( registrant inserts correct chemical resistant material). If you want more options, follow the instructions for category [ registrant inserts A, B, C, D, E, F, G, or H] on an EPA chemical resistance category selection chart."

" All mixers, loaders, applicators, and handlers involved in clean up of the seed treatment area and all handlers calibrating, maintaining, repairing, or cleaning seed treatment equipment must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves,

chemical resistant apron when mixing, loading, cleaning up spills or equipment,  94

End Use Products a NIOSH approved half face, full face or hood style respirator with  a dust/ mist filtering cartridge ( MSHA/ NIOSH approval number prefix TC 21C), or  a canister approved for pesticides ( MSHA/ NIOSH approval number prefix TC 14G),

or  a cartridge or canister with any N*, R or P or He filter. A quarter face cup style dust/ mist filtering respirator is not permitted."

" Persons drying or bagging treated seed, sewing or stacking bags containing treated seed,

or operating a forklift within the seed treatment area are handlers and must wear:

long sleeved shirts and long pants,

shoes plus socks,

chemical resistant gloves, except when sewing bags of treated seed,

a NIOSH approved respirator with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter. A NIOSH approved quarter face cup style dust/ mist filtering respirator is one type of respirator which is permitted."

" See Engineering Controls for more options."

Instruction to Registrant: Drop the " N" type prefilter from the respirator statement, if the pesticide product contains, or is used with, oil.

User Safety Requirements " Follow manufacturer's instructions for cleaning/ maintaining PPE. If no such instructions for washables exist, use detergent and hot water. Keep and wash PPE separately from other laundry."

" Discard clothing and other absorbent materials that have been drenched or heavily contaminated with this product's concentrate. Do not reuse them." Precautionary Statements: Hazards to Humans and Domestic Animals immediately following the PPE requirements Engineering Controls for Liquid Formulations ( for labels where the use patterns make the use of an enclosed cab feasible) " Engineering Controls"

" When handlers use closed systems or enclosed cabs in a manner that meets the requirements listed in the Worker Protection Standard ( WPS) for agricultural pesticides ( 40 CFR 170.240( d)( 4,5), the handler PPE requirements may be reduced or modified as Immediately following User Safety Requirements  95

End Use Products specified in the WPS."

Engineering Controls for Wettable Powder Formulations " Engineering Controls"

" Water soluble packets when used correctly qualify as a closed mixing/ loading system under the Worker Protection Standard for Agricultural Pesticides [ 40 CFR 170.240( d)( 4)]."

" Mixers and loaders using water soluble packets must :

 wear the personal protective equipment required in the PPE section of this labeling for mixers and loaders, and  be provided and must have immediately available for use in an emergency, such as a broken package, spill, or equipment breakdown: chemical resistant footwear, and the type of respirator as specified in the PPE section of this label."

Include this statement on labels where the use patterns make the use of an enclosed cab feasible:

" When applicators use enclosed cabs in a manner that meets the requirements listed in the Worker Protection Standard ( WPS) for agricultural pesticides ( 40 CFR 170.240( d)( 5),

the handler PPE requirements may be reduced or modified as specified in the WPS." Immediately following User Safety Requirements Engineering Controls for Granular, Dry Flowable, and Dry Flowable Formulations ( for labels where the use patterns make the use of an enclosed cab feasible) " Engineering Controls"

" If applicators use enclosed cabs in a manner that meets the requirements listed in the Worker Protection Standard ( WPS) for agricultural pesticides ( 40 CFR 170.240( d)( 5),

the handler PPE requirements may be reduced or modified as specified in the WPS." Immediately following User Safety Requirements  96

End Use Products Engineering Controls for Dust Formulations Labeled For Seed Treatments " Engineering Controls"

" If loaders and/ or applicators use a closed system designed by the manufacturer to enclose the pesticide to prevent it from contacting handlers or other people while it is being handled and if the system has a properly functioning dust control system that is used and maintained in accordance with the manufacturer's written operating instructions,

handlers using the closed mixing/ loading and/ or application system must:

 wear long sleeve shirt, long pants, shoes, socks, and chemical resistant gloves,

 be provided, have immediately available, and wear, in case of emergency, such as a broken package or equipment breakdown, a NIOSH approved respirator with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P or HE filter." Immediately following User Safety Requirements Engineering Controls for Liquid,

Dry Flowable, or Water Dispersible Granule Formulations Labeled for Seed Treatments " Engineering Controls"

" If mixers/ loaders or applicators use a closed system designed by the manufacturer to enclose the pesticide to prevent it from contacting handlers or other people while it is being handled and if the system has a properly functioning dust control system that is used and maintained in accordance with the manufacturer's written operating instructions,

handlers using the closed mixing/ loading and/ or application system must:

 wear long sleeve shirt, long pants, shoes, socks, chemical resistant gloves, and chemical resistant apron,

 be provided, have immediately available, and wear, in case of emergency, such as a broken package or equipment breakdown, a NIOSH approved respirator with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P or HE filter." Immediately following User Safety Requirements  97

End Use Products User Safety Recommendations " User Safety Recommendations"

" Users should wash hands before eating, drinking, chewing gum, using tobacco, or using the toilet."

" Users should remove clothing/ PPE immediately if pesticide gets inside. Then wash thoroughly and put on clean clothing."

" Users should remove PPE immediately after handling this product. Wash the outside of gloves before removing. As soon as possible, wash thoroughly and change into clean clothing." Precautionary Statements under:

Hazards to Humans and Domestic Animals immediately following Engineering Controls ( Must be placed in a box.)

Environmental Hazard Statement " This pesticide is toxic to fish and aquatic invertebrates. Do not apply directly to water,

to areas where surface water is present, or to intertidal areas below the mean high water mark except as noted on appropriate labels. Drift and runoff may be hazardous to aquatic organisms in water adjacent to treated areas. Do not contaminate water when disposing of equipment wash waters or rinsate. This pesticide is toxic to birds and mammals.

Treated seed and granules on soil surface may be hazardous to terrestrial wildlife. Cover or collect any such materials spilled during loading." Precautionary Statements immediately following the User Safety Recommendations Restricted Entry Interval for products with directions for use within scope of the Worker Protection Standard for Agricultural Pesticides ( WPS)

( excludes products with directions for use as a seed treatment) " Do not enter or allow worker entry into treated areas during the restricted entry interval ( REI) of 12 hours. Exception: if the product is soil injected or soil incorporated, the Worker Protection Standard, under certain circumstances, allows workers to enter the treated areas without restriction if there will be no contact with anything that has been treated." Directions for Use,

Under Agricultural Use Requirements Box  98

End Use Products Restricted Entry Interval for products with directions for use as an on farm, planter box,

hopper box, or other at plant seed treatment " Do not enter or allow worker entry into treated areas during the restricted entry interval ( REI) of 12 hours." Exception: Once seeds are planted in soil or other planting media,

the Worker Protection Standard allows workers to enter the treated area without restriction if there will be no worker contact with the soil/ media subsurface." Directions for Use,

Under Agricultural Use Requirements Box Early Entry Personal Protective Equipment for products with directions for use within the scope of the WPS " PPE required for early entry to treated areas that is permitted under the Worker Protection Standard and that involves contact with anything that has been treated, such as plants, soil, or water, is:

* coveralls,

* shoes plus socks * chemical resistant gloves made of any waterproof material" Direction for Use Agricultural Use Requirements box General Application Restrictions " Do not apply this product in a way that will contact workers or other persons, either directly or through drift. Only protected handlers may be in the area during application." Directions for Use under General Precautions and Restrictions  99

End Use Products Other Application Restrictions For all products:

" Use of this product on cole crops ( unless labeled solely for treatment of clubroot), turf ( including lawns), green beans ( unless labeled solely for treatments to seeds), cotton ( unless labeled solely for treatments to seeds), potatoes, dry beans and peas ( unless labeled solely for treatments to seeds), garlic, peanuts ( unless labeled solely for treatments to seeds), tomatoes, peppers, or ornamentals ( except commercial production of flowering bulb plants and bulbs) is prohibited."

For all products for which aerial application is feasible ( e. g., not on labels containing directions solely for use as seed treatment):

" Aerial applications prohibited."

For granular formulations:

" Application with a chest mounted rotary spreader ( belly grinder) is prohibited."

For products labeled for use on cole crops:

" Use as a seed treatment is prohibited."

For products labeled for use on ornamentals:

" Use as a seed treatment is prohibited. Use on ornamentals is limited to commercial production of flowering bulb plants or bulbs in commercial greenhouses, nurseries, or field production facilities. Use in residential settings is prohibited. Application directed at foliage or flowers is prohibited. Broadcast applications are prohibited."

For products labeled for use as seed treatment:

" For seed treatment applications only. Application to soil or foliage is prohibited." Directions for Use  100

End Use Products Application Restrictions Associated with the Directions for Use on Cole Crops NOTE: Application rates must be listed as amounts of formulated product. " Application by chemigation to cole crops is prohibited. This product may only be used for treatment of clubroot. Maximum seasonal application rate is 22.5 lb ai/ A/ season or ( registrant inserts application rate as amount of formulated product equivalent to 22.5 lb ai/ A/ season)." Directions for Use Application restrictions for products used for commercial seed treatments This product may not be used to treat seed unless the following language is placed on the pesticide label:

" Seeds that have been treated with this product that are then packaged and offered for sale or distribution must contain the following labeling:"

" This bag contains seed treated with PCNB. To avoid possible adverse health effects,

when opening this bag or loading the treated seed, wear long sleeved shirt, long pants,

shoes plus socks, chemical resistant gloves, and a NIOSH approved respirator equipped with:

 a dust/ mist filter with MSHA/ NIOSH approval number prefix TC 21C or  any N, R, P, or HE filter."

" Do Not Use for Food, Feed, or Oil."

" After seeds have been planted, do not enter or allow worker entry into treated areas during the restricted entry interval ( REI) of 12 hours. Exception: Once seeds are planted in soil or other planting media, the Worker Protection Standard allows workers to enter the treated area without restriction if there will be no worker contact with the soil/ media subsurface." Directions for Use  101

End Use Products Spray Drift " SPRAY DRIFT MANAGEMENT"

" Avoiding spray drift at the application site is the responsibility of the applicator and the grower. The interactions of many equipment and weather related factors determine the potential for spray drift. The applicator and the grower are responsible for considering these factors when making decisions about spraying."

" Apply only when the wind speed is less than or equal to 10 mph at the application site."

" Apply as a medium or coarser spray ( ASAE standard 527)."

" Apply using a nozzle height of no more than 4 feet above the ground or crop canopy." Directions for Use  102   Appendices Appendix A. Table of Use Patterns Subject to Reregistration Appendix B. Table of Generic Data Requirements and Studies Used to Make the Reregistration Decision Appendix C. Citations Considered to be Part of the Database Supporting Reregistration Appendix D. Combined Generic and Product Specific Data Call In Attachment 1. Chemical Status Sheets Attachment 2. Combined Data Call In Response Forms Plus Inserts Attachment 3. Generic and Product Specific Requirement Status and Registrant Response Forms and Instructions Attachment 4. End Use Product Batching for Reregistration Data Requirements Attachment 5. Registrants Sent this Data Call In Notice Attachment 6. Cost Share, Data Compensation Forms, Confidential Statement of Formula Form and Instructions Appendix E. List of Available Related Documents


[Federal Register Volume 87, Number 247 (Tuesday, December 27, 2022)]
[Notices]
[Pages 79408-79412]
[FR Doc No: 2022-28081]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96544; No. SR-NYSEARCA-2022-83]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE
Arca Options Fee Schedule

December 20, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on December 14, 2022, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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\ 15 U.S.C. 78a.
    \3\ 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 modify the NYSE Arca Options Fee Schedule
(``Fee Schedule'') regarding credits for Qualified Contingent Cross
(``QCC'') transactions. The Exchange proposes to implement the fee
change effective December 14, 2022.\4\ The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \4\ The Exchange originally filed to amend the Fee Schedule on
December 1, 2022 (SR-NYSEARCA-2022-79), then withdrew such filing
and amended the Fee Schedule on December 14, 2022 (SR-NYSEARCA-2022-
81), which latter filing the Exchange also withdrew on December 14,
2022.
---------------------------------------------------------------------------

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 purpose of this filing is to amend the Fee Schedule to modify
the credits offered for QCC transactions.\5\ The Exchange proposes to
implement the rule change on December 14, 2022.
---------------------------------------------------------------------------

    \5\ A QCC Order is defined as an originating order to buy or
sell at least 1,000 contracts that is identified as being part of a
qualified contingent trade coupled with a contra-side order or
orders totaling an equal number of contracts. See Rule 6.62P-
O(g)(1)(A).
---------------------------------------------------------------------------

    Currently, the Exchange offers Floor Brokers a credit of ($0.22)
per contract for Non-Customer vs. Non-Customer QCC transactions or
($0.11) per contract for Customer vs. Non-Customer QCC transactions.\6\
The Exchange also currently offers an additional ($0.04) per contract
credit to Floor Brokers on all Customer vs. Non-Customer QCC
transactions if they execute at least 500,000 contracts of credit-
eligible volume in QCC transactions in a month.\7\ QCC executions in
which a Customer is on both sides of the QCC trade are not eligible for
a credit, and the maximum Floor Broker credit for QCC transactions is
$375,000 per month per Floor Broker firm.\8\
---------------------------------------------------------------------------

    \6\ See Fee Schedule, QUALIFIED CONTINGENT CROSS (``QCC'')
TRANSACTION FEES AND CREDITS, available at: https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf.
    \7\ See id. at Endnote 13.
    \8\ See id.
---------------------------------------------------------------------------

    The Exchange now proposes to offer the credits on QCC transactions
currently available only to Floor Brokers to any broker submitting a
QCC transaction to the Exchange (a ``Submitting Broker''), whether the
broker is a Floor Broker on the Trading Floor or a broker that enters
orders electronically through an interface with the Exchange. In other
words, the Exchange proposes to offer the existing Floor Broker QCC
credits to any OTP Holder or OTP Firm (collectively, ``OTP Holder'')
that submits a QCC transaction to the Exchange.
    The Exchange also proposes to increase the credit offered on
Customer vs. Non-Customer QCC transactions from ($0.11) to ($0.16) and,
in light of such proposed increase, to eliminate the additional ($0.04)
credit currently offered on Customer vs. Non-Customer QCC transactions
to Floor Brokers that execute at least 500,000 contracts of credit-
eligible volume in QCC transactions in a month. The Exchange proposes
to eliminate the additional credit currently offered to qualifying
Floor Brokers because the proposed increased credit of ($0.16) on all
Customer vs. Non-Customer QCC transactions would provide Submitting
Brokers with a higher credit than the combination of the current
($0.11) and ($0.04) credits available on Customer vs. Non-Customer QCC
transactions.
    To effect these changes, the Exchange proposes to modify the Fee
Schedule to substitute the term ``Submitting Broker'' for ``Floor
Broker'' in connection with credits relating to QCC transactions.\9\
First, the Exchange proposes to modify the Participant column of the
table setting forth the fees and credits for QCC transactions to
provide for a ``Submitting Broker credit for Non-

Customer vs. Non-Customer QCC Transaction'' and a ``Submitting Broker
credit for Customer vs. Non-Customer QCC Transaction.'' The Exchange
also proposes to modify Endnote 13 to refer to a ``Submitting Broker''
rather than a ``Floor Broker,'' such that Endnote 13 would provide that
Customer vs. Customer QCC executions are not eligible for Submitting
Broker credits on QCC executions and that the maximum QCC credit
allowed will apply to a Submitting Broker firm. The Exchange also
proposes to modify Endnote 13 to delete the sentence setting forth the
additional ($0.04) credit on Customer vs. Non-Customer QCC
transactions.
---------------------------------------------------------------------------

    \9\ See proposed Fee Schedule, QUALIFIED CONTINGENT CROSS
(``QCC'') TRANSACTION FEES AND CREDITS & Endnote 13.
---------------------------------------------------------------------------

    The Exchange also proposes conforming changes to modify the
description of the Firm and Broker Dealer Monthly Fee Cap (the
``Monthly Fee Cap''), as well as Endnote 9, to eliminate text referring
to QCC transactions executed by a Floor Broker from the Floor of the
Exchange.\10\ To reflect the proposed changes described above to extend
the current Floor Broker QCC credits to any Submitting Broker (whether
a Floor Broker on the Trading Floor or a broker that submits orders
electronically), the Exchange proposes to delete references to the
execution of QCC transactions by a Floor Broker on the on Floor of the
Exchange. The Exchange does not propose any other modifications to the
Monthly Fee Cap or Endnote 9.
---------------------------------------------------------------------------

    \10\ See proposed Fee Schedule, FIRM AND BROKER DEALER MONTHLY
FEE CAP & Endnote 9.
---------------------------------------------------------------------------

    Although the Exchange cannot predict with certainty whether the
proposed change would encourage OTP Holders to increase their QCC
volume, the proposed change is intended to incent OTP Holders to submit
additional QCC transactions to the Exchange by expanding the universe
of OTP Holders that would be eligible for credits on QCC transactions
and increasing the amount of the credit offered on Customer vs. Non-
Customer QCC transactions. The Exchange notes that the current Floor
Broker QCC credits, when adopted, were offered to Floor Brokers based
on their function in facilitating the execution of orders on the
Exchange and intended to incent Floor Brokers to aggregate their
trading activity, including QCC transactions, at the Exchange as a
primary execution venue.\11\ The instant proposal would continue to
provide QCC credits to Floor Brokers and would offer QCC credits to
other OTP Holders that submit QCC transactions to the Exchange as well.
The Exchange believes the proposed change would continue to encourage
Floor Broker QCC volume and also encourage additional OTP Holders to
increase QCC volume submitted to the Exchange by offering credits on
such transactions. The Exchange believes that the proposal, which also
increases the credit on Customer vs. Non-Customer QCC transactions,
could incentivize both Floor Brokers and other OTP Holders to aggregate
their trading activity at the Exchange, thereby making the Exchange a
more attractive venue for order execution and providing additional
trading opportunities for all market participants.
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 95471 (August 11,
2022), 87 FR 50662 (August 17, 2022) (SR-NYSEARCA-2022-50) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify the NYSE Arca Options Fee Schedule).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

The Proposed Rule Change Is Reasonable
    The Exchange operates in a highly competitive market. The
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \14\
---------------------------------------------------------------------------

    \14\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
---------------------------------------------------------------------------

    There are currently 16 registered options exchanges competing for
order flow. Based on publicly-available information, and excluding
index-based options, no single exchange has more than 16% of the market
share of executed volume of multiply-listed equity and ETF options
trades.\15\ Therefore, no exchange possesses significant pricing power
in the execution of multiply-listed equity and ETF options order flow.
More specifically, in October 2022, the Exchange had less than 12%
market share of executed volume of multiply-listed equity and ETF
options trades.\16\
---------------------------------------------------------------------------

    \15\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics.
    \16\ Based on a compilation of OCC data for monthly volume of
equity-based options and monthly volume of equity-based ETF options,
see id., the Exchange's market share in equity-based options
decreased from 12.30% for the month of October 2021 to 11.87% for
the month of October 2022.
---------------------------------------------------------------------------

    The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow, or discontinue or reduce use of certain categories of
products, in response to fee changes. Accordingly, competitive forces
constrain options exchange transaction fees. Stated otherwise,
modifications to exchange transaction fees can have a direct effect on
the ability of an exchange to compete for order flow.
    The Exchange believes that the proposed change is reasonable
because it is designed to incent OTP Holders to increase the number of
QCC transactions sent to the Exchange by offering credits to all OTP
Holders that execute QCC transactions (i.e., both continuing to offer
credits to Floor Brokers and providing credits to brokers that submit
QCC transactions electronically as well) and by increasing the amount
of the credit offered on Customer vs. Non-Customer QCC transactions. To
the extent that the proposed change attracts more volume to the
Exchange from both Floor Brokers and brokers that submit orders
electronically, this increased order flow would continue to make the
Exchange a more competitive venue for order execution, which, in turn,
promotes just and equitable principles of trade and removes impediments
to and perfects the mechanism of a free and open market and a national
market system. The Exchange notes that all market participants stand to
benefit from any increase in volume entered by Submitting Brokers,
which could promote market depth, facilitate tighter spreads and
enhance price discovery, to the extent the proposed change encourages
OTP Holders to utilize the Exchange as a primary trading venue, and may
lead to a corresponding increase in order flow from other market
participants. In addition, any increased liquidity on the Exchange
would result

in enhanced market quality for all participants.
    Finally, to the extent the proposed change continues to attract
greater volume and liquidity, the Exchange believes the proposed change
would improve the Exchange's overall competitiveness and strengthen its
market quality for all market participants. In the backdrop of the
competitive environment in which the Exchange operates, the proposed
rule change is a reasonable attempt by the Exchange to increase the
depth of its market and improve its market share relative to its
competitors. The Exchange's fees are constrained by intermarket
competition, as OTP Holders may direct their order flow to any of the
16 options exchanges, including those offering rebates on QCC
transactions.\17\ Thus, OTP Holders have a choice of where they direct
their order flow, including their QCC transactions. The proposed rule
change is designed to continue to incent OTP Holders to direct
liquidity and, in particular, QCC transactions to the Exchange. In
addition, to the extent OTP Holders are incentivized to aggregate their
trading activity at the Exchange, that increased liquidity could
promote market depth, price discovery and improvement, and enhanced
order execution opportunities for market participants.
---------------------------------------------------------------------------

    \17\ See, e.g., EDGX Options Exchange Fee Schedule, QCC
Initiator/Solicitation Rebate Tiers (applying ($0.14) per contract
rebate up to 999,999 contracts for QCC transactions when only one
side of the transaction is a non-customer or ($0.22) per contract
rebate up to 999,999 contracts for QCC transactions with non-
customers on both sides); BOX Options Fee Schedule at Section
IV.D.1. (QCC Rebate) (providing for ($0.14) per contract rebate up
to 1,499,999 contracts for QCC transactions when only one side of
the QCC transaction is a broker-dealer or market maker or ($0.22)
per contract rebate up to 1,499,999 contracts for QCC transactions
when both parties are a broker-dealer or market maker); Nasdaq ISE,
Options 7, Section 6.B. (QCC Rebate) (offering rebates on QCC
transactions of ($0.14) per contract when only one side of the QCC
transaction is a non-customer or ($0.22) per contract when both
sides of the QCC transaction are non-customers).
---------------------------------------------------------------------------

    The Exchange believes that the proposed conforming changes are
reasonable because they would not modify the substantive provisions of
the Monthly Fee Cap or Endnote 9, but would instead promote consistency
and clarity in the Fee Schedule by removing text describing QCC
transactions as executed by Floor Brokers on the Floor of the Exchange,
consistent with the proposed changes described above to extend QCC
credits to any Submitting Broker.
    The Exchange cannot predict with certainty whether the proposed
change would encourage OTP Holders to increase their QCC order flow to
the Exchange, but believes that the proposed change, which would offer
credits on QCC transactions to all Submitting Brokers and increase the
amount of the credit available on Customer vs. Non-Customer QCC
transactions, would incent OTP Holders to direct additional QCC
transactions to the Exchange.
The Proposed Rule Change Is an Equitable Allocation of Credits and Fees
    The Exchange believes the proposed rule change is an equitable
allocation of its fees and credits. The proposed QCC credits are based
on the type of business transacted on the Exchange, and OTP Holders can
attempt to submit QCC transactions to earn the credits or not. In
addition, the proposed credits are equally available to all brokers
that enter QCC transactions. The Exchange also believes that the
proposed change is an equitable allocation of fees and credits because
it would provide for QCC credits to all Submitting Brokers (including
Floor Brokers, whose eligibility for QCC credits would not change) and
a consistent credit amount for all Customer vs. Non-Customer QCC
transactions. To the extent the proposed credits continue to incent
Floor Brokers and encourage other brokers to direct increased liquidity
to the Exchange, all market participants would benefit from enhanced
opportunities for price improvement and order execution. The Exchange
believes that the proposed conforming changes are equitable because
they would promote consistency and clarity in the Fee Schedule by
removing text describing QCC transactions as executed by Floor Brokers
on the Floor of the Exchange, in support of the proposed change to
extend QCC credits to any Submitting Broker, without modifying the
existing substantive provisions of the Monthly Fee Cap or Endnote 9.
    Moreover, the proposed credits are designed to incent Submitting
Brokers to encourage OTP Holders to aggregate their executions--
including QCC transactions--at the Exchange as a primary execution
venue. To the extent that the proposed change achieves its purpose in
attracting more volume to the Exchange, this increased order flow would
continue to make the Exchange a more competitive venue for, among other
things, order execution. Thus, the Exchange believes the proposed rule
change would improve market quality for all market participants on the
Exchange and, as a consequence, attract more order flow to the
Exchange, thereby improving market-wide quality and price discovery.
The Proposed Rule Change Is Not Unfairly Discriminatory
    The Exchange believes the proposed change is not unfairly
discriminatory because the proposed credits on QCC transactions would
be available to all Submitting Brokers on an equal and non-
discriminatory basis. The proposed change is also not unfairly
discriminatory to Floor Brokers because, although the Exchange proposes
to offer credits on QCC transactions to additional market participants,
Floor Brokers would continue to be eligible for the QCC credits
currently available to them. The Exchange also believes that the
proposed conforming changes to the Monthly Fee Cap and Endnote 9 are
not unfairly discriminatory because they are intended only to promote
consistency and clarity in the Fee Schedule by removing text describing
QCC transactions as executed by Floor Brokers on the Floor of the
Exchange, in alignment with the proposed change to extend QCC credits
to any Submitting Broker, and do not otherwise modify the substantive
provisions of those sections.
    The proposed credits are based on the type of business transacted
on the Exchange, and OTP Holders are not obligated to execute QCC
transactions. Rather, the proposal is designed to encourage OTP Holders
to increase QCC volume sent to the Exchange and to utilize the Exchange
as a primary trading venue for all transactions (if they have not done
so previously). To the extent that the proposed change attracts more
QCC transactions to the Exchange, this increased order flow would
continue to make the Exchange a more competitive venue for order
execution. Thus, the Exchange believes the proposed rule change would
improve market quality for all market participants on the Exchange and,
as a consequence, attract more order flow to the Exchange, thereby
improving market-wide quality and price discovery. The resulting
increased volume and liquidity would provide more trading opportunities
and tighter spreads to all market participants and thus would 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 interest.
    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.

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

    In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed rule change would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the Exchange believes
that the proposed change would encourage the submission of additional
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and enhancing order execution opportunities
for all market participants. As a result, the Exchange believes that
the proposed change furthers the Commission's goal in adopting
Regulation NMS of fostering integrated competition among orders, which
promotes ``more efficient pricing of individual stocks for all types of
orders, large and small.'' \18\
---------------------------------------------------------------------------

    \18\ See Reg NMS Adopting Release, supra note 14, at 37499.
---------------------------------------------------------------------------

    Intramarket Competition. The proposed change is designed to attract
additional order flow to the Exchange (particularly in QCC
transactions), which could increase the volumes of contracts traded on
the Exchange. Greater liquidity benefits all market participants on the
Exchange, and increased QCC transactions could increase opportunities
for execution of other trading interest. The proposed credit would be
available to all similarly-situated Submitting Brokers that execute QCC
trades. The Exchange does not believe that the proposed conforming
changes would impose any burden on intramarket competition that is not
necessary or appropriate, as they are intended only to promote clarity
and consistency in the Fee Schedule in consideration of the proposed
change to extend QCC credits to all Submitting Brokers, whether a Floor
Broker or a broker that submits orders to the Exchange electronically.
    Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily favor one
of the 16 competing option exchanges if they deem fee levels at a
particular venue to be excessive. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges and to attract order flow to the Exchange. Based on publicly-
available information, and excluding index-based options, no single
exchange has more than 16% of the market share of executed volume of
multiply-listed equity and ETF options trades.\19\ Therefore, currently
no exchange possesses significant pricing power in the execution of
multiply-listed equity and ETF options order flow. More specifically,
in October 2022, the Exchange had less than 12% market share of
executed volume of multiply-listed equity and ETF options trades.\20\
---------------------------------------------------------------------------

    \19\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics.
    \20\ Based on a compilation of OCC data for monthly volume of
equity-based options and monthly volume of equity-based ETF options,
see id., the Exchange's market share in equity-based options
decreased from 12.30% for the month of October 2021 to 11.87% for
the month of October 2022.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change reflects this
competitive environment because it modifies the Exchange's fees in a
manner designed to continue to incent OTP Holders to direct trading
interest (particularly QCC transactions) to the Exchange, to provide
liquidity and to attract order flow. To the extent that Submitting
Brokers are incentivized to utilize the Exchange as a primary trading
venue for all transactions, all of the Exchange's market participants
should benefit from the improved market quality and increased
opportunities for price improvement. The Exchange also believes that
the proposed conforming changes would not impose any burden on
intermarket competition that is not necessary or appropriate; the
proposed conforming changes are intended only to promote consistency
with the proposed change to extend QCC credits to all Submitting
Brokers, whether a Floor Broker or a broker that submits orders to the
Exchange electronically, thereby improving the clarity of the Fee
Schedule.
    The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues. In
such an environment, the Exchange must continually review, and consider
adjusting, its fees and credits to remain competitive with other
exchanges. For the reasons described above, the Exchange believes that
the proposed rule change reflects this competitive environment. The
Exchange further believes that the proposed change could promote
competition between the Exchange and other execution venues, including
those that currently offer rebates on QCC transactions, by encouraging
additional orders (and, in particular, QCC transactions) to be sent to
the Exchange for execution.\21\
---------------------------------------------------------------------------

    \21\ See note 17, supra.
---------------------------------------------------------------------------

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) \22\ of the Act and subparagraph (f)(2) of Rule
19b-4 \23\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78s(b)(3)(A).
    \23\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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) \24\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEARCA-2022-83 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-NYSEARCA-2022-83. 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-NYSEARCA-2022-83, and should be
submitted on or before January 17, 2023.
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-28081 Filed 12-23-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 219 (Thursday, November 12, 2020)]
[Notices]
[Pages 71952-71956]
[FR Doc No: 2020-24962]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90352; File No. SR-CboeBZX-2020-078]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Equity Transaction Fee Rebate Tiers

November 5, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 2, 2020, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. 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

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to amend the fee schedule. The text of the proposed rule
change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its fee schedule applicable to its
equities trading platform (``BZX Equities'') to: (1) Update the
Supplemental Incentive Program Tiers; (2) update the Lead Market Maker
(``LMM'') Add Volume Tiers and (3) eliminate the Non-Displayed Tape A
Tier 1, effective November 2, 2020.
    The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 16 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues
that do not have similar self-regulatory responsibilities under the
Exchange Act, to which market participants may direct their order flow.
Based on publicly available information,\3\ no single registered
equities exchange has more than 18% of the market share. Thus, in such
a low-concentrated and highly competitive market, no single equities
exchange possesses significant pricing power in the execution of order
flow. The Exchange in particular operates a ``Maker-Taker'' model
whereby it pays credits to members that provide liquidity and assesses
fees to those that remove liquidity. The Exchange's fee schedule sets
forth the standard rebates and rates applied per share for orders

that provide and remove liquidity, respectively. Currently, for orders
priced at or above $1.00, the Exchange provides a standard rebate of
$0.0020 per share for orders that add liquidity and assesses a fee of
$0.0030 per share for orders that remove liquidity. For orders priced
below $1.00, the Exchange provides a standard rebate of $0.0009 per
share for orders that add liquidity and assesses a fee of 0.30% of
total dollar value for orders that remove liquidity. Additionally, in
response to the competitive environment, the Exchange also offers
tiered pricing which provides Members opportunities to qualify for
higher rebates or reduced fees where certain volume criteria and
thresholds are met. Tiered pricing provides an incremental incentive
for Members to strive for higher tier levels, which provides
increasingly higher benefits or discounts for satisfying increasingly
more stringent criteria.
---------------------------------------------------------------------------

    \3\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, Month-to-Date (October 28, 2020), available at https://markets.cboe.com/us/equities/market_statistics/.
---------------------------------------------------------------------------

Proposed Updates to the Supplemental Incentive Program Tiers
    The Exchange currently offers three different Supplemental
Incentive Program Tiers under footnote 1 of the Fee Schedule, wherein a
Member may receive an additional rebate for qualifying orders where a
Member adds a certain Tape ADAV \4\ as a percentage of that Tape's TCV.
Specifically, the Supplemental Incentive Program Tiers offered are as
follows:
---------------------------------------------------------------------------

    \4\ ``ADAV'' means average daily added volume calculated as the
number of shares added per day.
---------------------------------------------------------------------------

     Supplemental Incentive Program--Tape A Tier offers an
additional rebate of $0.0001 for orders yielding fee code V \5\ where a
Member has a Tape A ADAV greater than or equal to 0.30% of the Tape A
TCV;
---------------------------------------------------------------------------

    \5\ Appended to orders that add liquidity to BZX (Tape A) and
offered a rebate of $0.002000 per share.
---------------------------------------------------------------------------

     Supplemental Incentive Program--Tape B Tier offers an
additional rebate of $0.0001 for orders yielding fee code B \6\ where a
Member has a Tape B ADAV greater than or equal to 0.30% of the Tape B
TCV; and
---------------------------------------------------------------------------

    \6\ Appended to orders that add liquidity to BZX (Tape B) and
offered a rebate of $0.00200 per share.
---------------------------------------------------------------------------

     Supplemental Incentive Program--Tape C Tier offers an
additional rebate of $0.0001 for orders yielding fee code Y \7\ where a
Member has a Tape C ADAV greater than or equal to 0.30% of the Tape C
TCV;
---------------------------------------------------------------------------

    \7\ Appended to orders that add liquidity to BZX (Tape C) and
offered a rebate of $0.00200 per share.
---------------------------------------------------------------------------

    The proposed rule change amends the tiers' criteria by increasing
the percentage of Tape ADAV over Tape TCV from 0.30% to 0.40% for
Supplemental Incentive Program--Tape A and Tape C Tiers, and from 0.30%
to 0.50% for Supplemental Incentive Program--Tape B Tier. The proposed
rule change to the Supplemental Incentive Program Tiers does not alter
any of the additional rebate amounts currently offered. Although the
proposed changes to the thresholds result in more stringent criteria,
Members still have an opportunity to receive the additional rebate if
they meet the applicable tier threshold. Moreover, the proposed changes
are designed to encourage Members to increase their Displayed liquidity
in Tape A, B and C securities on the Exchange, thereby contributing to
a deeper and more liquid market, which benefits all market participants
and provides greater execution opportunities on the Exchange.
Proposed Updates to the LMM Add Volume Tiers
    Under the Exchange's LMM Program, the Exchange offers daily
incentives for LMMs in securities listed on the Exchange for which the
LMM meets certain Minimum Performance Standards.\8\ Such daily
incentives are determined based on the number of Cboe-listed securities
for which the LMM meets such Minimum Performance Standards and the
average auction volume across such securities. Generally, the more LMM
Securities \9\ for which the LMM meets the Minimum Performance
Standards and the higher the auction volume across those securities,
the greater the total daily payment to the LMM. Currently, the Exchange
offers 3 LMM Add Volume Tiera [sic] under footnote 14 of the Fee
Schedule, which provides an additional rebate for applicable LMM
orders. Specifically, the Supplemental Incentive Program Tiers
currently offered are as follows:
---------------------------------------------------------------------------

    \8\ As defined in Rule 11.8(e)(1)(E), the term ``Minimum
Performance Standards'' means a set of standards applicable to an
LMM that may be determined from time to time by the Exchange. Such
standards will vary between LMM Securities depending on the price,
liquidity, and volatility of the LMM Security in which the LMM is
registered. The performance measurements will include: (A) Percent
of time at the NBBO; (B) percent of executions better than the NBBO;
(C) average displayed size; and (D) average quoted spread. For
additional detail, see Original LMM Filing.
    \9\ As defined in Rule 11.8(e)(1)(D), the term ``LMM Security''
means a Listed Security that has an LMM. As defined in Rule
11.8(e)(1)(B), the term ``Listed Security'' means any ETP or any
Primary Equity Security or Closed-End Fund listed on the Exchange
pursuant to Rule 14.8 or 14.9.
---------------------------------------------------------------------------

     LMM Add Volume Tier 1 provides an additional rebate of
$0.0001 for orders yielding fee codes B, V and Y where an LMM (1) has
an ADAV greater than or equal to 0.20% of the TCV, (2) has an Average
Aggregate Daily Auction Volume in LMM Securities greater than or equal
to 500,000 and (3) is enrolled in at least 75 LMM Securities.
     LMM Add Volume Tier 2 provides an additional rebate of
$0.0006 for orders yielding fee codes V and ``HV'' \10\ where an LMM
(1) is enrolled in at least 50 LMM Securities, and (2) has a Tape A
ADAV greater than or equal to 0.10% of the Tape A TCV;
---------------------------------------------------------------------------

    \10\ Appended to non-displayed orders that add liquidity (Tape
A) and are assessed a standard rebate of $0.00150.
---------------------------------------------------------------------------

     LMM Add Volume Tier 3 provides an additional rebate of
$0.0003 for orders yielding fee codes B and ``HB'' \11\ where an LMM
(1) is enrolled is enrolled in at least 50 LMM Securities, and (2) has
a Tape B ADAV greater than or equal to 0.20% of the Tape B TCV;
---------------------------------------------------------------------------

    \11\ Appended to non-displayed orders that add liquidity (Tape
B) and are assessed a standard rebate of $0.00150.
---------------------------------------------------------------------------

     LMM Add Volume Tier 4 provides an additional rebate of
$0.0006 for orders yielding fee codes Y and ``HY'' \12\ where an LMM
(1) is enrolled in at least 50 LMM Securities, and (2) has a Tape C
ADAV greater than or equal to 0.10% of the Tape C TCV.
---------------------------------------------------------------------------

    \12\ Appended to non-displayed orders that add liquidity (Tape
C) and are assessed a standard rebate of $0.00150.
---------------------------------------------------------------------------

    The Exchange proposes to update the TCV thresholds in LMM Add
Volume Tiers 2, 3 and 4 as follows below. The Exchange notes that the
additional rebates currently provided in each tier remain the same, as
do the remaining criteria for each tier.
     To meet the proposed criteria in Tier 2, a Member must add
a Tape A ADV greater than or equal to 0.20% (instead of 0.10%) of the
Tape A TCV.
     To meet the proposed criteria in Tier 3, a Member must add
a Tape B ADV greater than or equal to 0.35% (instead of 0.20%) of the
Tape B TCV.
     To meet the proposed criteria in Tier 4, a Member must add
a Tape C ADV greater than or equal to 0.20% (instead of 0.10%) of the
Tape C TCV.
    Although the proposed changes to these thresholds result in more
stringent criteria, Members will still have an opportunity to receive
the additional rebates for meeting the applicable tier thresholds.
Moreover, the proposed changes are designed to encourage LMMs to
increase both their Displayed and Non-Displayed liquidity in Tape A, B
and C securities on the Exchange, thereby contributing to a deeper and
more liquid market, which benefits all market participants and provides
greater execution opportunities on the Exchange.

Non-Displayed Add Volume Tape A Tier 1
    The Exchange also proposes to eliminate Non-Displayed Add Volume
Tape A Tier 1, which is currently described under footnote 1 of the
fees schedule. Particularly, this tier applies to orders yielding fee
code HV and provides a $0.00275 per share rebate to Members that add an
ADV greater than or equal to 0.20% of the TCV as Non-Displayed orders
that yield fee codes HI or HV. Particularly, no Member has reached this
tier in several months and the Exchange therefore no longer wishes to,
nor is it required to, maintain such tiers.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\13\ in general, and
furthers the objectives of Section 6(b)(4),\14\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members, issuers and other persons
using its facilities. The Exchange operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. The proposed rule changes
reflect a competitive pricing structure designed to incentivize market
participants to direct their order flow to the Exchange, which the
Exchange believes would enhance market quality to the benefit of all
Members. The Exchange notes that relative volume-based incentives and
discounts have been widely adopted by exchanges, including the
Exchange, and are reasonable, equitable and non-discriminatory because
they are open to all members on an equal basis and provide additional
benefits or discounts that are reasonably related to (i) the value to
an exchange's market quality and (ii) associated higher levels of
market activity, such as higher levels of liquidity provision and/or
growth patterns. Additionally, as noted above, the Exchange operates in
highly competitive market. The Exchange is only one of several equity
venues to which market participants may direct their order flow, and it
represents a small percentage of the overall market. It is also only
one of several maker-taker exchanges. Competing equity exchanges offer
similar tiered pricing structures, including schedules of rebates and
fees that apply based upon members achieving certain volume and/or
growth thresholds, as well as assess similar fees or rebates for
similar types of orders, to that of the Exchange. These competing
pricing schedules, moreover, are presently comparable to those that the
Exchange provides, including the pricing of comparable criteria and/or
fees and rebates.
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    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Regarding the proposed updates to the Supplemental Incentive and
LMM Add Volume Tiers, the Exchange believes that the proposed tiers are
reasonable because each of the tiers, as modified, continue to be
available to all Members and provide Members an opportunity to receive
an additional rebate, albeit using more stringent criteria.
Additionally, the Exchange also believes that the tiers, even as
amended, are reasonable, equitable and not unfairly discriminatory
because competing equity exchanges offer similar tiered pricing
structures with comparable criteria to that of the Supplemental
Incentive \15\ and LMM Add Volume Tiers.\16\ The Exchange also believes
that the current additional rebates continue to be commensurate with
the proposed criteria. That is, the additional rebates reasonably
reflect the difficulty in achieving the corresponding criteria as
amended.
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    \15\ See NYSE Price List, ``Credit Applicable to Supplemental
Liquidity Providers (``SLPs'')'' and Nasdaq Equity 7, Section
118(a)(1).
    \16\ See e.g., Nasdaq Phlx Equity 7 Pricing Schedule, Section
3(c), which provides up to an additional credit of $0.0003 for
various order and quoting volume thresholds for the exchange's
qualified market makers (``QMMs'').
---------------------------------------------------------------------------

    The Exchange further believes that the proposed criteria and
corresponding additional rebates per tier are reasonable and equitable.
Generally, Tape B experiences less variability in terms of broader
market share, whereas Tape A and C tend to experience more volatility.
As a result, the Exchange has observed that Members generally submit
less Tape volume in connection with Tape A and Tape C. For example, the
average Tape ADAV as a percentage of Tape TCV in Tape A and Tape C from
LMM Members in the last month was lower than their average Tape ADAV
over Tape TCV in Tape B. As a result, the Exchange believes Members are
more easily able to meet a volume requirement for Tape B, and
therefore, it is equitable to provide for a slightly higher ADAV Tape B
threshold of Tape B TCV than that for Tape A and C.
    The Exchange believes the proposed changes are also a reasonable
means to incentivize Members to continue to provide liquidity adding,
displayed volume (Supplemental Incentive Tiers) and displayed and non-
displayed volume (for LMM Add Volume Tiers), which will benefit all
market participants by incentivizing continuous liquidity and thus,
deeper more liquid markets as well as increased execution
opportunities. Particularly, the proposed changes are designed to
incentivize continuous displayed liquidity, which signals other market
participants to take the additional execution opportunities provided by
such liquidity, while the proposed incentives to provide non-displayed
liquidity will further contribute to a deeper, more liquid market and
provide even more execution opportunities for active market
participants at improved prices. This overall increase in activity
deepens the Exchange's liquidity pool, offers additional cost savings,
supports the quality of price discovery, promotes market transparency
and improves market quality, for all investors.
    In addition to this, the Exchange believes that the proposal
represents an equitable allocation of rebates and is not unfairly
discriminatory because all Members will continue to be eligible for the
Supplemental Incentive Tiers, as amended, and for the LMM Add Volume
Tiers, as amended. Without having a view of activity on other markets
and off-exchange venues, the Exchange has no way of knowing whether
this proposed rule change would definitely result in any Members
qualifying for the proposed tiers. The Exchange notes that most
recently, seven Members satisfied Supplemental Incentive Tier Tape A,
seven members satisfied Supplemental Incentive Tier Tape B, and five
Members satisfied Supplemental Incentive Tier Tape C. While the
Exchange has no way of predicting with certainty how the proposed tier
will impact Member activity, the Exchange anticipates that
approximately four Members will be able to satisfy Supplemental
Incentive Tier Tape A (as amended), five Members will be able to
satisfy Supplemental Incentive Tier Tape B (as amended) and three
Members will be able to satisfy Supplemental Incentive Tier Tape C (as
amended). With respect to the LMM Add Volume Tiers, the Exchange notes
that most recently, one Member satisfied LMM Add Volume Tier 2, two
Members satisfied LMM Add Volume Tier 3 and two Members satisfied LMM
Add Volume Tier 4. While the Exchange has no way of predicting with
certainty how the proposed tier will impact Member activity, the
Exchange anticipates that approximately one Member will be able to
satisfy LMM Add Volume Tier 2 (as amended), one Member will be able to

satisfy LMM Add Volume Tier 3 (as amended) and one Member will be able
to satisfy LMM Add Volume Tier 4 (as amended). The Exchange also notes
that the proposed tiers will not adversely impact any Member's ability
to qualify for other rebate tiers. Rather, should a Member not meet the
proposed criteria for a tier, the Member will merely not receive the
corresponding additional rebate.
    Finally, the Exchange believes the proposed amendment to remove
Non-Displayed Add Volume Tape A Tier 1 is reasonable because no Member
has achieved this tier in several months. Moreover, the Exchange is not
required to maintain this tier and Members still have a number of other
opportunities and a variety of ways to receive enhanced rebates for
Non-Displayed liquidity, including the enhanced rebates under the Non-
Displayed Add Volume Tiers under footnote 1 of the fees schedule. The
Exchange believes the proposal to eliminate these tiers is also
equitable and not unfairly discriminatory because it applies to all
Members.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act. Rather, as discussed above,
the Exchange believes that the proposed change would encourage the
submission of additional order flow to a public exchange, thereby
promoting market depth, execution incentives and enhanced execution
opportunities, as well as price discovery and transparency for all
Members. As a result, the Exchange believes that the proposed change
furthers the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.'' \17\
---------------------------------------------------------------------------

    \17\ Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change does not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Particularly, the proposed
changes apply to all Members equally in that all Members continue to be
eligible for the Supplemental Incentive Tiers and LMM Add Volume Tiers
(and have the same opportunity to become an LMM Member), have a
reasonable opportunity to meet the tiers' criteria and will all receive
the corresponding additional rebates if such criteria are met.
Additionally, the proposed tier changes are designed to attract
additional order flow to the Exchange. The Exchange believes that the
updated tier criteria would incentivize market participants to direct
liquidity adding order flow to the Exchange, bringing with it
additional execution opportunities for market participants and improved
price transparency. Greater overall order flow, trading opportunities,
and pricing transparency benefits all market participants on the
Exchange by enhancing market quality and continuing to encourage
Members to send orders, thereby contributing towards a robust and well-
balanced market ecosystem.
    Next, the Exchange believes the proposed rule change does not
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As previously
discussed, the Exchange operates in a highly competitive market.
Members have numerous alternative venues that they may participate on
and direct their order flow, including 15 other equities exchanges and
off-exchange venues and alternative trading systems. Additionally, the
Exchange represents a small percentage of the overall market. Based on
publicly available information, no single equities exchange has more
than 18% of the market share. Therefore, no exchange possesses
significant pricing power in the execution of order flow. Indeed,
participants can readily choose to send their orders to other exchange
and off-exchange venues if they deem fee levels at those other venues
to be more favorable. Moreover, the Commission has repeatedly expressed
its preference for competition over regulatory intervention in
determining prices, products, and services in the securities markets.
Specifically, in Regulation NMS, the Commission highlighted the
importance of market forces in determining prices and SRO revenues and,
also, recognized that current regulation of the market system ``has
been remarkably successful in promoting market competition in its
broader forms that are most important to investors and listed
companies.'' \18\ The fact that this market is competitive has also
long been recognized by the courts. In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .''.\19\ Accordingly, the Exchange does not believe its
proposed fee change imposes any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \18\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \19\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
---------------------------------------------------------------------------

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

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

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \20\ and paragraph (f) of Rule 19b-4
thereunder.\21\ 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 will institute
proceedings to determine whether the proposed rule change should be
approved or disapproved.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2020-078 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-CboeBZX-2020-078. 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-CboeBZX-2020-078 and should be submitted
on or before December 3, 2020.
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-24962 Filed 11-10-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 192 (Wednesday, October 3, 2018)]
[Notices]
[Pages 49971-49973]
[FR Doc No: 2018-21458]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Notice No. NOA-18-01]

Consensus Standards, Light-Sport Aircraft

AGENCY: Federal Aviation Administration, DOT.

ACTION: Notice of availability; request for comments.

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

SUMMARY: This notice announces the availability of two new and two
revised consensus standards relating to the provisions of the Sport
Pilot and Light-Sport Aircraft rule issued July 16, 2004, and effective
September 1, 2004. ASTM International Committee F37 on Light-Sport
Aircraft developed the new and revised standards with Federal Aviation
Administration participation. By this notice, the Federal Aviation
Administration finds the new and revised standards acceptable for
certification of the specified aircraft

under the provisions of the Sport Pilot and Light-Sport Aircraft rule.

DATES: Comments must be received on or before December 3, 2018.

ADDRESSES: Mail comments to: Federal Aviation Administration, Small
Airplane Standards Branch, Programs and Procedures, AIR-694, Attention:
Terry Chasteen, Room 301, 901 Locust, Kansas City, Missouri 64106.
Comments may also be emailed to: [email protected].
Specify the standard being addressed by ASTM designation and title.
Mark all comments: Consensus Standards Comments.

FOR FURTHER INFORMATION CONTACT: Terry Chasteen, Light-Sport Aircraft
Program Manager, Programs and Procedures, AIR-694, Small Airplane
Standards Branch, Aircraft Certification Service, Federal Aviation
Administration, 901 Locust, Room 301, Kansas City, Missouri 64106;
telephone<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION: This notice announces the availability of
two new and two revised consensus standards that supersede previously
accepted consensus standards relating to the provisions of the Sport
Pilot and Light-Sport Aircraft rule. ASTM International Committee F37
on Light-Sport Aircraft developed the new and revised standards. The
FAA expects a suitable consensus standard to be reviewed periodically.
The review cycle will result in a standard revision or reapproval. A
standard is revised to make changes to its technical content or is
reapproved to indicate a review cycle has been completed with no
technical changes. A standard is issued under a fixed designation
(e.g., F2245); the number immediately following the designation
indicates the year of original adoption or, in the case of revision,
the year of last revision. A number in parentheses following the year
of original adoption or revision indicates the year of last reapproval.
For example, F2242-05(2013) designates a standard that was originally
adopted (or revised) in 2005 and reapproved in 2013. A superscript
epsilon ([egr]) indicates an editorial change since the last revision
or reapproval. A notice of availability (NOA) will only be issued for
new or revised standards. Reapproved standards issued with no technical
changes or standards issued with editorial changes only (i.e.,
superscript epsilon [[egr]]) are considered accepted by the Federal
Aviation Administration (FAA) without need for an NOA.
    Comments Invited: Interested persons are invited to submit such
written data, views, or arguments as they may desire. Communications
should identify the consensus standard number and be submitted to the
address specified above. All communications received on or before the
closing date for comments will be forwarded to ASTM International
Committee F37 for consideration. The standard may be changed in light
of the comments received. The FAA will address all comments received
during the recurring review of the consensus standard and will
participate in the consensus standard revision process.
    Background: Under the provisions of the Sport Pilot and Light-Sport
Aircraft rule, and revised Office of Management and Budget (OMB)
Circular A-119, ``Federal Participation in the Development and Use of
Voluntary Consensus Standards and in Conformity Assessment
Activities,'' revised January 27, 2016, industry and the FAA have been
working with ASTM International to develop consensus standards for
light-sport aircraft. These consensus standards satisfy the FAA's goal
for airworthiness certification and a verifiable minimum safety level
for light-sport aircraft. Instead of developing airworthiness standards
through the rulemaking process, the FAA participates as a member of
Committee F37 in developing these standards. The use of the consensus
standard process facilitates government and industry discussion and
agreement on appropriate standards for the required level of safety.

Comments on Previous Notices of Availability

    In the previous NOA issued on March 27, 2017, and published in the
Federal Register on April 3, 2017 (82 FR 16271), the FAA asked for
public comments on the revised consensus standards accepted by that
NOA. The comment period closed on June 2, 2017. No public comments were
received.

Consensus Standards in This Notice of Availability

    The FAA has reviewed the standards presented in this NOA for
compliance with the regulatory requirements of the rule. Any light-
sport aircraft issued a special light-sport airworthiness certificate,
which has been designed, manufactured, operated, and maintained in
accordance with these and previously accepted ASTM consensus standards
provides the public with the appropriate level of safety established
under the regulations. Manufacturers who choose to produce these
aircraft and certificate these aircraft under 14 CFR 21.190 or 14 CFR
21.191 are subject to the applicable consensus standard requirements.
    The FAA maintains a listing of the latest FAA-accepted standards
specific to special light-sport aircraft and information on previously
accepted standards on the following FAA website: http://www.faa.gov/aircraft/gen_av/light_sport/. The FAA also maintains a separate general
listing of standards accepted by the FAA that have or may have
applicability to other types of certifications. This general listing
includes the FAA-accepted standards specific to special light-sport
aircraft. A link to this general listing of standards is available on
the following FAA website: http://www.faa.gov/aircraft/gen_av/light_sport/.

The Revised Consensus Standard and Effective Period of Use

    The following previously accepted consensus standards have been
revised, and this NOA is accepting the later revision. Either the
previous revision or the later revision may be used for the initial
airworthiness certification of special light-sport aircraft until
October 3, 2019. This overlapping period of time will allow aircraft
that have started the initial airworthiness certification process using
the previous revision level to complete that process. After October 3,
2019, manufacturers must use the later revision and must identify the
later revision in the Statement of Compliance for initial airworthiness
certification of special light-sport aircraft unless the FAA publishes
a specific notification otherwise. The following Consensus Standards
may not be used after October 3, 2019:

ASTM Designation F2241-14, titled: Standard Specification for Continued
Airworthiness System for Powered Parachute Aircraft
ASTM Designation F2295-06, titled: Standard Practice for Continued
Operational Safety Monitoring of a Light Sport Aircraft
ASTM Designation F2339-06(2009), titled: Standard Practice for Design
and Manufacture of Reciprocating Spark Ignition Engines for Light Sport
Aircraft
ASTM Designation F2354-05b(2013), titled: Standard Specification for
Continued Airworthiness System for Lighter-Than-Air Light Sport
Aircraft
ASTM Designation F2425-05a(2018), titled: Standard Specification for
Continued Airworthiness System for Weight-Shift-Control Aircraft
ASTM Designation F2483-12, titled: Standard Practice for Maintenance

and the Development of Maintenance Manuals for Light Sport Aircraft

The Consensus Standards

    The FAA finds the following new and revised consensus standards
acceptable for initial airworthiness certification of the specified
aircraft under the provisions of the Sport Pilot and Light-Sport
Aircraft rule. The following consensus standards become effective
October 3, 2018 and may be used unless the FAA publishes a specific
notification otherwise:

ASTM Designation F2339-17, titled: Standard Practice for Design and
Manufacture of Reciprocating Spark Ignition Engines for Light Sport
Aircraft
ASTM Designation F2483-18 [egr], titled: Standard Practice for
Maintenance and the Development of Maintenance Manuals for Light Sport
Aircraft
ASTM Designation F3198-18, titled: Standard Specification for Light
Sport Aircraft Manufacturer's Continued Operational Safety (COS)
Program
ASTM Designation F3206-17, titled: Standard Practice for Independent
Audit Program for Light Aircraft Manufacturers

Availability

    ASTM International, 100 Barr Harbor Drive, Post Office Box C700,
West Conshohocken, PA 19428-2959 copyrights these consensus standards.
Individual reprints of a standard (single or multiple copies, or
special compilations and other related technical information) may be
obtained by contacting ASTM at this address, or at<PHONE_NUMBER>
(phone),<PHONE_NUMBER> (fax), through [email protected] (email), or
through the ASTM website at www.astm.org. To inquire about standard
content and/or membership or about ASTM International Offices abroad,
contact Joe Koury, Staff Manager for Committee F37 on Light-Sport
Aircraft:<PHONE_NUMBER>, [email protected].

    Issued in Kansas City, Missouri, on September 25, 2018.
Steven W. Thompson,
Acting Manager, Small Airplane Standards Branch, Aircraft Certification
Service.
[FR Doc. 2018-21458 Filed 10-2-18; 8:45 am]
 BILLING CODE 4910-13-P