[Federal Register Volume 76, Number 114 (Tuesday, June 14, 2011)]
[Notices]
[Pages 34796-34797]
[FR Doc No: 2011-14664]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64636; File No. SR-BX-2011-030]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Fees for Members Using the NASDAQ OMX BX Equities System

 June 8, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on May 25, 2011, NASDAQ OMX BX, Inc. (the ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to modify pricing for member using the NASDAQ
OMX BX Equities System. The Exchange will implement the proposed change
on June 1, 2011. The text of the proposed rule change is available at
http://nasdaqomxbx.cchwallstreet.com/, at the Exchange's principal
office, on the Commission's Web site at http://www.sec.gov, 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
    BX is proposing to modify its fees for trades that execute at
prices at or above $1.\3\ BX has a pricing model under which members
are charged for the execution of quotes/orders posted on the BX book
(i.e., quotes/orders that provide liquidity), while members receive a
rebate for orders that access liquidity. Since BX introduced this
pricing model in 2009, several other exchanges have emulated it,
including the EDGA Exchange, the BATS-Y Exchange, and the CBOE Stock
Exchange (``CBSX''). Currently, BX charges a fee to add liquidity of
$0.0018 per share executed, while providing a rebate for accessing
liquidity of $0.0014 per share executed.
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    \3\ Although BX is not modifying its fees for securities priced
below $1, it is moving the language describing such fees into Rule
7018(b) and redesignating existing Rule 7018(b) as Rule 7018(c).
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    Effective June 1, 2011, BX will introduce a tiered pricing
structure for both the fee and rebate portion of the pricing schedule.
First, although they are not paid a credit for liquidity provision,
certain BX members nevertheless find it advantageous to post liquidity
because the rebate paid to liquidity takers encourages more rapid
execution of posted orders. To provide further incentives to members to
post liquidity through BX, the Exchange is introducing a ``Qualified
Liquidity Provider'' program. A Qualified Liquidity Provider is a BX
member with (i) Shares of liquidity provided and (ii) total shares of
liquidity accessed and provided in all securities through one or more
of its NASDAQ OMX BX Equities System Market Participant Identifiers
(``MPIDs'') that represent more than 0.40% and 0.50%, respectively, of
the total consolidated volume reported to all consolidated transaction
reporting plans by all exchanges and trade reporting facilities during
the month. With respect to displayed orders entered through any MPID of
a Qualified Liquidity Provider that is a Qualified MPID, the member
will be charged $0.0015 per share executed, rather than the current
rate of $0.0018 per share executed. A ``Qualified MPID'' is an MPID
through which the member quotes at the national best bid or offer
(``NBBO'') an average of at least 25% of the time during regular market
hours (9:30 a.m. through 4 p.m.) during the month, in at least 150
securities. For each trading day, the percentage of time that a member
quotes at the NBBO for each security will be calculated by determining
the percentage of time quoting at the best bid and the percentage of
time quoting at the best offer, and determining the average of the two
percentages. Thus, for a given security, if a member quotes at the best
bid 10% of the day, and at the best offer 55% of the day, its average
at the NBBO will be 32.5% ((10 + 55)/2). The percentage for each day
will then be added and divided by the number of trading days in the
month to determine the overall percentage in each stock.\4\
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    \4\ The program is similar to the Supplemental Liquidity
Provider program of the New York Stock Exchange, under which members
may earn progressively higher liquidity provider credits if they
satisfy a requirement of quoting at the NBBO 10% or more of the time
and add specified levels of liquidity to the book, with the credit
rising as the amount of liquidity provided increases. See http://www.nyse.com/pdfs/nyse_equities_pricelist.pdf.
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    With respect to the rebate paid to members accessing liquidity, BX
is modifying the fee schedule to provide that the current credit of
$0.0014 will be paid only with respect to orders entered by a member
through an MPID through which the member accesses an average daily
volume of 3.5 million or more shares of liquidity during the month, or
provides an average daily volume of 25,000 or more shares of liquidity
during the month. Because these requirements are not especially high,
BX expects that most members seeking the higher rebate will be able to
achieve at least one of the criteria. However, for members that do not
achieve these requirements, the credit will be $0.0005 per share
executed.\5\ The change is designed to ensure that the most favorable
rebate is provided to members that consistently support the BX market
through liquidity provision or order routing at the levels required by
the new tier. To the extent that the change results in a fee increase
for some members, it will also help to offset the cost of implementing
the Qualified Liquidity Provider program.
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    \5\ By comparison, under the fee schedule of the EDGA Exchange,
a member accessing liquidity can earn a rebate of $0.00015 per share
executed if it adds or routes an average daily volume of 50,000
shares on the EDGA Exchange, but is charged $0.0030 per share
executed if it does not. See http://www.directedge.com/Membership/FeeSchedule/EDGAFeeSchedule.aspx. Thus, both aspects of BX's
proposed credit tiers are more favorable to its members than the
corresponding credit/fee of the EDGA Exchange.
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2. Statutory Basis
    BX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(4) of the Act,\7\ in

particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system which BX operates or
controls. All similarly situated members are subject to the same fee
structure, and access to BX is offered on fair and non-discriminatory
terms.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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    The new program for Qualified Liquidity Providers is reasonable and
equitable because it will reduce fees for members that contribute to
BX's market quality by directing a relatively large quantity of orders
to BX and quoting at the NBBO with regularity in a large number of
stocks. Volume-based discounts such as the proposed Qualified Liquidity
Provider program have been widely adopted in the cash equities markets,
and are equitable because they are open to all members on an equal
basis and provide discounts that are reasonably related to the value to
an exchange's market quality associated the requirements for the
favorable pricing tier. By adding not only volume requirements but also
requirements for Qualified Liquidity Providers to quote at the NBBO
with some degree of consistency, BX believes that it can use pricing
incentives to increase quoted depth at the NBBO, thereby also
benefiting market participants that direct orders to the quotes/orders
of Qualified Liquidity Providers.
    Similarly, the proposed pricing tier with respect to BX's credit
for members accessing liquidity is designed to provide incentives for
members to contribute to BX's market quality by accessing and/or
providing liquidity. Orders that provide liquidity increase the
likelihood that members seeking to access liquidity will have their
orders filled, while orders that access liquidity encourage liquidity
providers to post in the expectation of having their own orders filled.
Accordingly, BX believes that it is reasonable and equitable to use
pricing incentives, such as a higher rebate for accessing liquidity, to
encourage members to increase their participation in the market either
through liquidity provision or routing of liquidity accessing orders.
BX also notes that the credits it offers, both to members achieving the
tier and those that do not, are more favorable than the credit/fee
charged by the EDGA Exchange in comparable circumstances.
    Finally, BX notes that it operates in a highly competitive market
in which market participants can readily favor competing venues if they
deem fee levels at a particular venue to be excessive. In such an
environment, BX must continually adjust its fees to remain competitive
with other exchanges and with alternative trading systems that have
been exempted from compliance with the statutory standards applicable
to exchanges. BX believes that the proposed rule change reflects this
competitive environment because it will use pricing incentives to
encourage greater use of BX's order execution facilities.

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

    BX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Because the market
for order execution is extremely competitive, members may readily opt
to disfavor BX's execution services if they believe that alternatives
offer them better value. For this reason and the reasons discussed in
connection with the statutory basis for the proposed rule change, BX
does not believe that the proposed changes will impair the ability of
members or competing order execution venues to maintain their
competitive standing in the financial markets.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\8\ At any time within 60 days of the filing
of the proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-BX-2011-030 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BX-2011-030. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2011-030 and should be
submitted on or before July 5, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-14664 Filed 6-13-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 28 (Monday, February 11, 2013)]
[Notices]
[Page 9718]
[FR Doc No: 2013-03023]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4086-DR; Docket ID FEMA-2013-0001]

New Jersey; Amendment No. 7 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of New Jersey (FEMA-4086-DR), dated October 30, 2012, and
related determinations.

DATES: Effective Date: January 25, 2013.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) hereby gives notice that pursuant to the authority vested in the
Administrator, under Executive Order 12148, as amended, William L.
Vogel, of FEMA is appointed to act as the Federal Coordinating Officer
for this disaster.
    This action terminates the appointment of Michael J. Hall as
Federal Coordinating Officer for this disaster.

The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households In
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2013-03023 Filed 2-8-13; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 85, Number 222 (Tuesday, November 17, 2020)]
[Notices]
[Pages 73270-73271]
[FR Doc No: 2020-25303]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

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

    Docket Numbers: EC21-21-000.
    Applicants: North Fork Ridge Wind, LLC, The Empire District
Electric Company.
    Description: Application for Authorization Under Section 203 of the
Federal Power Act of North Fork Ridge Wind, LLC, et al.
    Filed Date: 11/6/20.
    Accession Number: 20201106-5317.
    Comments Due: 5 p.m. ET 11/27/20.

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

    Docket Numbers: ER10-1585-017; ER10-1594-017; ER16-733-008; ER10-
1617-017; ER20-2602-001; ER16-1148-008; ER10-1623-006; ER12-60-019;
ER10-1632-019; ER10-1628-017.
    Applicants: Alabama Electric Marketing, LLC, California Electric
Marketing, LLC, LQA, LLC, New Mexico Electric Marketing, LLC, Nobles 2
Power Partners, LLC, Tenaska Energ[iacute]a de Mexico, S. de R.L. de,
C.V., Tenaska Frontier Partners, Ltd., Tenaska Power Services Company,
Texas Electric Marketing, LLC, Tenaska Power Management, LLC.
    Description: Notification of Change in Status of the Tenaska MISO
MBR Sellers, et al.
    Filed Date: 11/9/20.
    Accession Number: 20201109-5195.
    Comments Due: 5 p.m. ET 11/30/20.

    Docket Numbers: ER10-2645-005.
    Applicants: Baconton Power LLC.
    Description: Notice of Non-Material Change in Status of Baconton
Power LLC.
    Filed Date: 11/6/20.
    Accession Number: 20201106-5316.
    Comments Due: 5 p.m. ET 11/27/20.

    Docket Numbers: ER11-4647-001.
    Applicants: UP Power Marketing, LLC.
    Description: Notice of Non-Material Change in Status of UP Power
Marketing LLC.
    Filed Date: 11/6/20.
    Accession Number: 20201106-5319.
    Comments Due: 5 p.m. ET 11/27/20.

    Docket Numbers: ER10-1801-005; ER10-2370-004; ER10-1805-006.
    Applicants: The Connecticut Light and Power Company, NSTAR Electric
Company, Public Service Company of New Hampshire.
    Description: Notice of Non-Material Change in Status of the
Eversource Companies, et al.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5138.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER12-161-023; ER12-645-024; ER14-25-018.
    Applicants: Bishop Hill Energy LLC, California Ridge Wind Energy
LLC, Prairie Breeze Wind Energy LLC.
    Description: Notice of Non-Material Change in Status of Bishop Hill
Energy LLC, et al.
    Filed Date: 11/9/20.
    Accession Number: 20201109-5182.
    Comments Due: 5 p.m. ET 11/30/20.

    Docket Numbers: ER18-1906-005; ER16-221-006; ER18-1907-005; ER17-
1757-006; ER10-1767-008; ER10-1532-008; ER10-1541-009; ER10-1642-010;
ER13-2349-007; ER13-2350-007.
    Applicants: Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy
Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc.,
Entergy Nuclear Palisades, LLC, Entergy Power, LLC, EWO Marketing, LLC,
EAM Nelson Holding, LLC, RS Cogen, LLC
    Description: Notification of non-material change in status of
Entergy Arkansas, LLC, et al.
    Filed Date: 11/6/20.
    Accession Number: 20201106-5333.
    Comments Due: 5 p.m. ET 11/27/20.

    Docket Numbers: ER21-110-000.
    Applicants: Harts Mill TE Holdings LLC.
    Description: Supplement to Harts Mill TE Holdings LLC tariff
filing.
    Filed Date: 11/6/20.
    Accession Number: 20201106-5314.
    Comments Due: 5 p.m. ET 11/27/20.

    Docket Numbers: ER21-360-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Original ISA, Service
Agreement No. 5838; Queue No. AC2-078 to be effective 10/20/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5003.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-361-000.
    Applicants: New York Independent System Operator, Inc., New York
State Electric & Gas Corporation.
    Description: Sec.  205(d) Rate Filing: LGIA SA1894 among NYISO,
NYSEG, and Stony Creek Energy to be effective 10/28/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5006.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-362-000.
    Applicants: Central Hudson Gas & Electric Corporation.
    Description: Sec.  205(d) Rate Filing: Revision to FERC Rate
Schedule 206 to be effective 10/1/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5014.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-363-000.
    Applicants: AEP Texas Inc..
    Description: Sec.  205(d) Rate Filing: AEPTX-Woodward Mountain Wind
(2) Interconnection Agreement to be effective 10/26/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5015.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-364-000.
    Applicants: Midcontinent Independent System Operator, Inc., Ameren
Illinois Company.
    Description: Sec.  205(d) Rate Filing: 2020-11-10_SA 3299 Att
A_Ameren IL-Norris Electric-Effingham Proj. No. 4 to be effective 1/10/
2021.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5018.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-365-000.
    Applicants: Tri-State Generation and Transmission Association, Inc.
    Description: Sec.  205(d) Rate Filing: Amendment to Service
Agreement No. 871 to be effective 10/29/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5037.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-366-000.
    Applicants: Tucson Electric Power Company.
    Description: Sec.  205(d) Rate Filing: Concurrence to CAISO RS No.
6270 to be effective 11/11/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5048.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-367-000.
    Applicants: Basin Electric Power Cooperative.
    Description: Sec.  205(d) Rate Filing: Basin Electric Amendment to
Service Agreement No. 101 to be effective 10/30/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5049.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-368-000.
    Applicants: Tri-State Generation and Transmission Association, Inc.
    Description: Sec.  205(d) Rate Filing: Filing of Rate Schedule FERC
No. 318, Board Policy 124 to be effective 11/11/2020.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5076.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-369-000.
    Applicants: Wapello Solar LLC.
    Description: Baseline eTariff Filing: Application For Market Based
Rate Authority to be effective 12/18/2020.

    Filed Date: 11/10/20.
    Accession Number: 20201110-5091.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-370-000.
    Applicants: Cleco Power LLC.
    Description: Sec.  205(d) Rate Filing: Rate Schedule for Blackstart
Service to be effective 1/9/2021.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5104.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-371-000.
    Applicants: ISO New England Inc., New England Power Pool.
    Description: ISO New England Inc. submits Installed Capacity
Requirement, Hydro Quebec Interconnection Capability Credits and
Related Values for the 2024/2025 Capacity Commitment Period.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5133.
    Comments Due: 5 p.m. ET 12/1/20.

    Docket Numbers: ER21-372-000.
    Applicants: ISO New England Inc.
    Description: ISO New England Inc. submits Informational filing for
Qualification in the Forward Capacity Market.
    Filed Date: 11/10/20.
    Accession Number: 20201110-5136.
    Comments Due: 5 p.m. ET 11/25/20.

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

    Docket Numbers: ES21-10-000.
    Applicants: California Independent System Operator Corporation.
    Description: Application Under Section 204 of the Federal Power Act
for Authorization to Issue Securities for California Independent System
Operator Corporation.
    Filed Date: 11/5/20.
    Accession Number: 20201105-5205.
    Comments Due: 5 p.m. ET 11/27/20.

    Take notice that the Commission received the following public
utility holding company filings:

    Docket Numbers: PH21-2-000.
    Applicants: [Eacute]nergir Inc.
    Description: Energir Inc. submits FERC 65-B Waiver Notification.
    Filed Date: 11/6/20.
    Accession Number: 20201106-5332.
    Comments Due: 5 p.m. ET 11/27/20.

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

    Dated: November 10, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020-25303 Filed 11-16-20; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: April 1, 2008 (Volume 73, Number 63)]
[Notices]
[Page 17388]
[DOCID:fr01ap08-86]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57558; File No. SR-CBOE-2008-08]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Approving a Proposed Rule Change Regarding CBOE
Rules 6.45A and 6.45B

March 26, 2008.
    On February 6, 2008, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission''), pursuant to section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend CBOE Rules 6.45A and
6.45B regarding the application of participation entitlements to orders
executed electronically on the CBOE Hybrid Trading System (``Hybrid
system''). The proposed rule change was published for comment in the
Federal Register on February 21, 2008.\3\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
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    \1\15 U.S.C. 78s(b)(1).
    \2\17 CFR 240.19b-4.
    \3\See Securities Exchange Act Release No. 57332 (February 14,
2008), 73 FR 9610.
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    CBOE Rules 6.45A and 6.45B govern priority and allocation of trades
on the Hybrid system for equity options and index/ETF options,
respectively. Paragraph (a) of both rules set forth the manner in which
incoming electronic orders are allocated (the rules are substantially
the same). First, the appropriate Procedure Committee selects a base
matching algorithm (price-time priority, pro-rata priority, or CBOE's
Ultimate Matching Algorithm). If price-time or pro-rata priority
matching algorithms are selected, additional optional priority overlays
may be applied on a trade before the matching algorithm is used to
allocate the order. These additional optional priority overlays are
public customer priority, market-turner priority, and a Market-Maker
participation entitlement.\4\
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    \4\ The appropriate Procedure Committee determines, on a class-
by-class basis, whether one or more such optional priority overlays
may be applied and the sequence in which they are applied.
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    Currently, participation entitlements may be established for Hybrid
electronic executions pursuant to different Exchange rules.
Specifically, CBOE Rule 8.13 allows for the establishment of a
participation entitlement for a Preferred Market-Maker, if that Market-
Maker is quoting at the Exchange's best bid/offer at the time the order
is received. CBOE Rule 8.87 allows for a designated participation
entitlement applicable to the DPM in the class (or the DPM and the e-
DPMs combined, if there are e-DPMs in the class), if the DPM is quoting
at the Exchange best bid/offer at the time the order is received. CBOE
Rule 8.15B is virtually identical to Rule 8.87 except that it applies
to LMMs. In each case, the Market-Maker must be quoting at the best
bid/offer on the Exchange (the ``Exchanges BBO'') in order to receive a
participation entitlement.
    This proposed rule change will allow for more than one
participation entitlement to be activated for an option class (for
purposes of electronic trading on the Hybrid system under Rules 6.45A
and 6.45B), including in different priority sequences, provided that no
more than one entitlement could be applied on any given trade. Thus,
the Exchange could set up an allocation structure for a given option
class that contemplates using both the Preferred Market-Maker
entitlement and the DPM or LMM entitlement (DPMs and LMMs cannot be
assigned to the same class) with different priority positions. Since
participation entitlements are only awarded when a Market-Maker is
quoting at the Exchange's BBO, if the first designated Market-Maker is
not quoting at the Exchange's BBO, the proposed rule change will allow
for another designated Market-Maker later in the sequence to receive a
participation entitlement as long as it is quoting at the Exchange's
BBO.
    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\5\ In
particular, the Commission finds that the proposal is consistent with
Section 6(b)(5) of the Act,\6\ which requires, among other things, that
the rules of an exchange be designed to promote just and equitable
principles of trade, remove impediments to and perfect the mechanism of
a free and open market and a national market system, and, in general,
protect investors and the public interest. Although this change will
allow for more than one participation entitlement to be activated for a
class, it will not increase the participation entitlement percentage
applicable to any individual transaction above the existing level,
because only one entitlement will be applied on any given transaction.
The Commission therefore believes that the proposal is consistent with
the Act.
---------------------------------------------------------------------------

    \5\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-CBOE-2008-08) is approved.
---------------------------------------------------------------------------

    \7\15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-6610 Filed 3-31-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Notices]
[Pages 6451-6456]
[FR Doc No: 2019-03331]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85170; File No. SR-NYSEArca-2019-04]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Amending NYSE Arca Rule 5.2-E(j)(3) To Adopt
Generic Listing Standards for Investment Company Units Based on an
Index of Municipal Bond Securities

February 21, 2019.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on February 8, 2019, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') 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 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 amend NYSE Arca Rule 5.2-E(j)(3) (``Rule
5.2-E(j)(3)'') to adopt generic listing standards for Investment
Company Units (``Units'') based on an index of municipal bond
securities. The proposed 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.

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
    NYSE Arca Rule 5.2-E(j)(3) permits the Exchange to list a series of
Units based on an index or portfolio of underlying securities.
Currently, Rule 5.2-E(j)(3) includes generic listing standards for
Units based on an index or portfolio of equity or fixed income
securities or a combination thereof. The Exchange proposes to amend
Rule 5.2-E(j)(3) to add a new Commentary .02A to provide generic
listing standards for Units based on an index or portfolio of Municipal
Securities.\4\
---------------------------------------------------------------------------

    \4\ The term ``Municipal Securities'' has the definition given
to it in Section 3(a)(29) of the Securities Exchange Act of 1934.
---------------------------------------------------------------------------

    An index of Municipal Securities typically does not meet the
generic listing requirements for Units based on an index of fixed-
income securities.\5\ Nonetheless, the Commission has previously
approved proposed rule changes relating to listing and trading on the
Exchange of Units based on an index of Municipal Securities.\6\ Given

the large number of prior approvals by the Commission, the Exchange now
proposes to adopt generic listing standards for Units based on an index
of Municipal Securities that do not meet the generic listing standards
for Units based on an index of fixed-income securities.
---------------------------------------------------------------------------

    \5\ See Commentary .02(a)(2) to NYSE Arca Rule 5.2-E(j)(3).
Municipal Securities are typically issued in with individual
maturities of relatively small size, although they generally are
constituents of a much larger municipal bond offering. Therefore, an
index of Municipal Securities will typically be unable to satisfy
the requirement that component fixed income securities that, in the
aggregate, account for at least 75% of the weight of the index each
shall have a minimum principal amount outstanding of $100 million or
more.
    \6\ See Securities Exchange Act Release Nos. 67985 (October 4,
2012), 77 FR 61804 (October 11, 2012) (SR-NYSEArca-2012-92) (order
approving proposed rule change relating to the listing and trading
of iShares 2018 S&P AMT-Free Municipal Series and iShares 2019 S&P
AMT-Free Municipal Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02); 67729 (August 24, 2012), 77 FR 52776 (August 30,
2012) (SR-NYSEArca-2012-92) (notice of proposed rule change relating
to the listing and trading of iShares 2018 S&P AMT-Free Municipal
Series and iShares 2019 S&P AMT-Free Municipal Series under NYSE
Arca Equities Rule 5.2(j)(3), Commentary .02); 72523, (July 2,
2014), 79 FR 39016 (July 9, 2014) (SR-NYSEArca-2014-37) (order
approving proposed rule change relating to the listing and trading
of iShares 2020 S&P AMT-Free Municipal Series under NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02); 72172 (May 15, 2014), 79
FR 29241 (May 21, 2014) (SR-NYSEArca-2014-37) (notice of proposed
rule change relating to the listing and trading of iShares 2020 S&P
AMT-Free Municipal Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02); 72464 (June 25, 2014), 79 FR 37373 (July 1, 2014)
(File No. SR-NYSEArca-2014-45) (order approving proposed rule change
governing the continued listing and trading of shares of the
PowerShares Insured California Municipal Bond Portfolio, PowerShares
Insured National Municipal Bond Portfolio, and PowerShares Insured
New York Municipal Bond Portfolio); 75468 (July 16, 2015), 80 FR
43500 (July 22, 2015) (SR-NYSEArca-2015-25) (order approving
proposed rule change relating to the listing and trading of iShares
iBonds Dec 2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022
AMT-Free Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3));
74730 (April 15, 2015), 76 FR 22234 (April 21, 2015) (notice of
proposed rule change relating to the listing and trading of iShares
iBonds Dec 2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022
AMT-Free Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02); 74730 75376 (July 7, 2015), 80 FR 40113 (July 13,
2015) (SR-NYSEArca-2015-18) (order approving proposed rule change
relating to the listing and trading of Vanguard Tax-Exempt Bond
Index Fund under NYSE Arca Equities Rule 5.2(j)(3)).
---------------------------------------------------------------------------

    In the Exchange's experience, indices of Municipal Securities are
able to satisfy all of the generic listing requirements applicable to
fixed-income indices contained in Commentary .02 to Rule 5.2-E(j)(3)
except the requirement that component securities in an index have a
minimum original principal amount outstanding. Specifically, Municipal
Securities are generally issued with individual maturities of
relatively small size, although they generally are constituents of a
much larger municipal bond offering. Therefore, Municipal Securities
are unable to satisfy the rule's requirement that ``at least 75% of the
Fixed Income Securities portion of the weight of the index or portfolio
each shall have a minimum original principal amount outstanding of $100
million or more.'' Notwithstanding the inability of a Municipal
Securities index to meet this aspect of the generic listing standards,
the Commission has previously approved for listing and trading a series
of Units based on such indices where the Exchange has demonstrated an
index is not susceptible to manipulation.\7\
---------------------------------------------------------------------------

    \7\ See Footnote 5 [sic], supra.
---------------------------------------------------------------------------

    The Exchange would apply existing Commentary .02 to Rule 5.2-
E(j)(3) and proposed Commentary .02A to Rule 5.2-E(j)(3) in a
``waterfall'' manner. Specifically, every series of Units based on an
index of fixed-income securities and cash (including an index that
contains Municipal Securities) would initially be evaluated against the
generic listing standards of existing Commentary .02 to Rule 5.2-
E(j)(3). If the index underlying a series of Units satisfied the
existing criteria of Commentary .02 to Rule 5.2-E(j)(3), the Exchange
would proceed with listing the Units. The Exchange would apply proposed
Commentary .02A to Rule 5.2-E(j)(3) only if (i) an index did not meet
the requirements of Commentary .02 to Rule 5.2-E(j)(3) and (ii) such
index contained only Municipal Securities and cash.
    The Exchange believes that if an index of fixed-income securities
and cash (including one that contains Municipal Securities) satisfies
the existing requirements of Commentary .02 to Rule 5.2-E(j)(3) its
constituent securities are sufficiently liquid to deter manipulation of
the index. Further, the proposed alternative listing standard, which
would only be applicable to an index consisting entirely of Municipal
Securities and cash, includes many requirements that are more stringent
than those applicable to an index of fixed-income securities and cash.
The Exchange believes these heightened requirements would deter
potential manipulation of such Municipal Securities indices even though
the index may include securities that have smaller original principal
amounts outstanding.
Comparison of Existing Quantitative Requirements for Fixed-Income
Indices vs. Proposed Quantitative Requirements for Municipal Securities
Indices
    Below is a comparison of the existing quantitative requirements for
Units based on an index of fixed-income securities versus the
Exchange's proposed alternative quantitative requirements for Units
based on an index of Municipal Securities:
    Original Principal Amount Outstanding:

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

------------------------------------------------------------------------
Existing Requirement for Fixed-Income       Fixed Income Security
 Securities:                                 components that in
                                             aggregate account for at
                                             least 75% of the Fixed
                                             Income Securities portion
                                             of the weight of the index
                                             or portfolio each shall
                                             have a minimum original
                                             principal amount
                                             outstanding of $100 million
                                             or more.
Proposed Requirement for Municipal          Municipal Security
 Securities:                                 components that in
                                             aggregate account for at
                                             least 90% of the Municipal
                                             Securities portion of the
                                             weight of the index or
                                             portfolio each shall have a
                                             minimum original principal
                                             amount outstanding of at
                                             least $5 million and have
                                             been issued as part of a
                                             transaction of at least $20
                                             million.
------------------------------------------------------------------------

    As discussed above, Municipal Securities are typically issued with
individual maturities of relatively small size, although they generally
are constituents of a much larger municipal bond offering. In
recognition of these smaller offering sizes, the Exchange proposes to
reduce the minimum original principal amount outstanding requirement
for component securities to at least $5 million. Further, the Exchange
proposes that qualifying securities must have been issued as part of a
transaction of at least $20 million. Lastly, the Exchange proposes to
increase the percentage weight of an index that must satisfy the
original principal amount outstanding requirement from 75% to 90%.
    The Exchange does not believe that reducing the minimum original
principal amount outstanding requirement for component securities will
make an index more susceptible to manipulation. The Exchange believes
that the requirement that component securities in a fixed-income index
have a minimum principal amount outstanding, in concert with the other
requirements of Commentary .02 to Rule 5.2-E(j)(3), is to ensure that
such index is sufficiently broad-based in scope as to minimize
potential manipulation of the index.\8\ However, based on empirical
analysis, the Exchange does not believe that an index of Municipal
Securities with lower original principal amounts outstanding is
necessarily more susceptible to manipulation.\9\ In 2016, Blackrock,
Inc. analyzed the potential manipulation of Municipal Securities and
found that such manipulation ``may be uneconomical and is unsupported
in

practice.'' \10\ In addition, the Exchange believes that its proposal
to require that 90% of the weight of a Municipal Securities Index meet
the original principal amount outstanding requirement (as opposed to
75% for fixed-income indices) will further deter potential manipulation
by ensuring that a greater portion of the index meet this minimum size
requirement.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 55783 (May 17,
2007), 72 FR 29194 (May 24, 2007) (SR-NYSEArca-2007-36) (order
approving the adoption of generic listing standards for Units based
on an index of fixed-income securities) at pg. 19-20.
    \9\ See Letter from Samara Cohen, Managing Director, U.S. Head
of iShares Capital Markets, Joanne Medero, Managing Director,
Government Relations & Public Policy, and Deepa Damre, Managing
Director, Legal & Compliance, BlackRock, Inc., to Brent J. Fields,
Secretary, Commission, dated October 18, 2017 in support of the
Exchange's proposal to facilitate the listing and trading of certain
series of Units listed pursuant to NYSE Arca Rule 5.2-E(j)(3) (SR-
NYSEArca-2017-56).
    \10\ See Id. at 3 and accompanying Footnote 11. Blackrock stated
``Our empirical analysis indicated that: (1) Given the over-the-
counter dealer-centric market for municipal bonds, the bid-ask
spread decreases with trade size; therefore, trading many small lots
to move matrix prices is likely to be costly; (2) large trades move
prices significantly and this effect is incorporated into prices
quickly; for manipulation to work by affecting bond prices, the
trades must be large, implying greater dollar cost and more
likelihood of detection even if markets were segmented; (3) while
pricing agents apply matrix pricing techniques to value non-traded
bonds, the effect is likely too small to permit price manipulation
of the corresponding index or ETF; and (4) market participants will
use all intraday data to come up with their own valuations
independently of pricing providers; ultimately, the price of an ETF
at a point in time reflects these estimates in a manner that
balances supply and demand.''
---------------------------------------------------------------------------

    The Exchange notes that the Commission has previously approved the
listing and trading of several series of Units where the underlying
Municipal Securities index required that component securities
representing at least 90% of the weight of the index have a minimum
original principal amount outstanding of at least $5 million and have
been issued as part of a transaction of at least $20 million.\11\
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 84049 (September 6,
2018), 83 FR 46228 (September 12, 2012) (SR-NYSEArca-2018-38) (order
approving, among other things, revisions to the continued listing
criteria applicable to the iShares New York AMT-Free Muni Bond ETF).
---------------------------------------------------------------------------

    Maximum Weight of Component Securities:

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

------------------------------------------------------------------------
Existing Requirement for       No component fixed-income security
 Fixed-Income Securities:       (excluding Treasury Securities and GSE
                                Securities) shall represent more than
                                30% of the Fixed Income Securities
                                portion of the weight of the index or
                                portfolio, and the five most heavily
                                weighted component fixed-income
                                securities in the index or portfolio
                                shall not in the aggregate account for
                                more than 65% of the Fixed Income
                                Securities portion of the weight of the
                                index or portfolio.
Proposed Requirement for       No component Municipal Security shall
 Municipal Securities:          represent more than 10% of the Municipal
                                Securities portion of the weight of the
                                index or portfolio, and the five most
                                heavily weighted component Municipal
                                Securities in the index or portfolio
                                shall not in the aggregate account for
                                more than 30% of the Municipal
                                Securities portion of the weight of the
                                index or portfolio.
------------------------------------------------------------------------

    The Exchange proposes to substantially reduce the maximum weight
that any individual Municipal Security, or group of five Municipal
Securities, can have in a Municipal Securities index. The current
generic listing rules for Units based on a fixed-income index permit
individual component securities to account for up to 30% of the weight
of such index and the top-five weighted component securities to account
for up to 65% of the weight of such index. The Exchange proposes to
reduce these metrics to 10% for individual Municipal Securities and 30%
for the top-weighted Municipal Securities in an index.
    The Exchange believes that its proposal will reduce the likelihood
that a Municipal Securities index underlying a series of Units could be
subject to manipulation by ensuring that no individual Municipal
Security, or group of five Municipal Securities, represents an outsized
weight of a Municipal Securities index.
    Diversification of Issuers:

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

------------------------------------------------------------------------
Existing Requirement for       An underlying index or portfolio
 Fixed-Income Securities:       (excluding one consisting entirely of
                                exempted securities) must include a
                                minimum of 13 non-affiliated issuers.
Proposed Requirement for       An underlying index or portfolio must
 Municipal Securities:          include a minimum of 13 non-affiliated
                                issuers.
------------------------------------------------------------------------

    The current generic listing rules for Units based on an index of
fixed-income securities require that such index must include securities
from at least thirteen non-affiliated \12\ issuers. Notably, the
current rules exempt indices consisting entirely of exempted securities
from complying with this diversification requirement. Municipal
Securities are included in the definition of exempted securities.\13\
Therefore, an index of Municipal Securities that otherwise met the
requirements of Commentary .02 to Rule 5.2-E(j)(3) would not be
required to satisfy any minimum issuer diversification requirement.
Nonetheless, the Exchange proposes that a Municipal Securities Index be
required to include securities from at least 13 non-affiliated issuers.
The Exchange believes that requiring such diversification will reduce
the likelihood that an index can be manipulated by ensuring that
securities from a variety of issuers are represented in an index of
Municipal Securities.
---------------------------------------------------------------------------

    \12\ Rule 405 under the Securities Act of 1933 defines an
affiliate as a person that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under
common control with such person. Control, for this purpose, is the
possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person, whether
through the ownership of voting securities, by contract, or
otherwise.
    \13\ See Section 3(a)(12) of the Securities Exchange Act of
1934.
---------------------------------------------------------------------------

    Number of Components:

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

------------------------------------------------------------------------
Existing Requirement for Fixed-Income    Thirteen.
 Securities:
Proposed Requirement for Municipal       Five Hundred.
 Securities:
------------------------------------------------------------------------

    The current generic listing rules for Units based on an index of
fixed-income securities do not have an explicit requirement that an
index contain a minimum number of securities. However, given that such
rules require an index to contain securities from at least thirteen
non-affiliated issuers, there is a de facto requirement that an index
of fixed-income securities contain at least thirteen component
securities. As described above, a fixed-income index comprised entirely
of exempted securities (including Municipal Securities) is not required
to satisfy the issuer diversification test, thereby allowing it to have
no minimum number of component securities.
    The Exchange proposes to require that a Municipal Securities Index
contain at least 500 component securities. The Exchange believes that
such requirement will ensure that a Municipal Securities index is
sufficiently broad-based and diversified to make it less susceptible to
manipulation.
    The Exchange proposes that the quantitative requirements described
above would apply to a Municipal

Securities index underlying a series of Units on both an initial and
continued basis.
    The Exchange proposes to amend Commentary .03 to NYSE Arca Rule
5.2-E(j)(3) to specify that the Exchange may approve a series of Units
for listing based on a combination of indexes, including an index of
Municipal Securities. To the extent that an index of Municipal
Securities is included in a combination, proposed Commentary .03 will
specify that the Municipal Securities index must meet all requirements
of Commentary .02A. In addition, Commentary .03 will be amended to
specify that requirements related to index dissemination and related
continued listing standards will apply to indexes of Municipal
Securities. The Exchange notes that a combination index that includes
an index of Municipal Securities will not be permitted to seek to
provide investment results in a multiple of the direct or inverse
performance of such combination index.
Additional Requirements
    In addition to the quantitative requirements described above, the
Exchange proposes to adopt additional rules related to (i) index
methodology and calculation, (ii) dissemination of information, (iii)
initial shares outstanding, (iv) hours of trading, (v) surveillance
procedures, and (vi) disclosures. Such additional requirements are
consistent with the requirements applicable to Units based on an index
of U.S. equity securities, global equity securities and fixed-income
securities.
    The Exchange proposes to adopt Commentary .02A(b) to Rule 5.2-
E(j)(3) which will require that (i) if a Municipal Securities index is
maintained by a broker-dealer or fund advisor, the broker-dealer or
fund advisor shall erect and maintain a ``firewall'' around the
personnel who have access to information concerning changes and
adjustments to the index; (ii) the current index value for Units listed
pursuant to proposed Commentary .02A(a) will be widely disseminated by
one or more major market data vendors at least once per day and if the
index value does not change during some or all of the period when
trading is occurring on the NYSE Arca Marketplace, the last official
calculated index value must remain available throughout NYSE Arca
Marketplace trading hours; and (iii) any advisory committee,
supervisory board, or similar entity that advises a Reporting Authority
\14\ or that makes decisions on the index composition, methodology and
related matters, must implement and maintain, or be subject to,
procedures designed to prevent the use and dissemination of material
non-public information regarding the applicable Municipal Securities
index.
---------------------------------------------------------------------------

    \14\ The term ``Reporting Authority'' has the meaning given to
it in NYSE Arca Rule 5.1-E(b)(16).
---------------------------------------------------------------------------

    The Exchange proposes to adopt Commentary .02A(c) which will
require that one or more major market data vendors shall disseminate
for each series of Units based on an index or portfolio of Municipal
Securities an estimate, updated at least every 15 seconds during the
Core Trading Session, of the value of a share of each series (the
``Intraday Indicative Value''). The Intraday Indicative Value may be
based, for example, upon current information regarding the required
deposit of securities and cash amount to permit creation of new shares
of the series or upon the index value. The Intraday Indicative Value
may be calculated by the Exchange or by an independent third party
throughout the day using prices obtained from independent market data
providers or other independent pricing sources such as a broker-dealer
or price evaluation services. If the Intraday Indicative Value does not
change during some or all of the period when trading is occurring on
the Exchange, then the last official calculated Intraday Indicative
Value must remain available throughout Exchange trading hours.
    The Exchange proposes to adopt Commentary .02A(d) stating that a
minimum of 100,000 shares of a series of Units will be required to be
outstanding at commencement of trading.
    The Exchange proposes to adopt Commentary .02A(e) stating that the
hours of trading for the Units will be as specified in NYSE Arca Rule
7.34-E(a).
    The Exchange proposes to adopt Commentary .02A(f) specifying that
Units that are listed or traded pursuant to unlisted trading privileges
will be subject to the Exchange's written surveillance procedures.
    Pursuant to NYSE Arca Rule 5.2-E(j)(3)(A)(v), the Exchange will
obtain a representation from an issuer of Units based on an index of
Municipal Securities that the net asset value per share of the series
will be calculated daily and will be made available to all market
participants at the same time.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \15\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that Units
listed pursuant to proposed NYSE Arca Rule 5.2-E(j)(3), Commentary .02A
will be subject to the existing trading surveillances, administered by
FINRA on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws.
The Exchange represents that these procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws. FINRA, on behalf of the Exchange, will communicate as
needed regarding trading in the Shares with other markets that are
members of the ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement. FINRA also can access
data obtained from the MSRB relating to municipal bond trading activity
for surveillance purposes in connection with trading in the Shares.
FINRA, on behalf of the Exchange, is able to access, as needed, trade
information for certain fixed income securities held by a Fund reported
to FINRA's TRACE.
    Pursuant to proposed Commentary .02A(b), if the index is maintained
by a broker-dealer or fund advisor, the broker-dealer or fund advisor
shall erect and maintain a ``firewall'' around the personnel who have
access to information concerning changes and adjustments to the index.
Further, any advisory committee, supervisory board, or similar entity
that advises a Reporting Authority or that makes decisions on the index
composition, methodology and related matters, must implement and
maintain, or be subject to, procedures designed to prevent the use and
dissemination of material non-public information regarding the
applicable index.
    The index value of a series of Units listed pursuant to proposed
Commentary .02A will be widely disseminated by one or more major market
data vendors at least once per day and if the index value does not
change during some or all of the period

when trading is occurring on the Exchange, the last official calculated
index value must remain available throughout Exchange trading hours. In
addition, the IIV for the Units will be disseminated by one or more
major market data vendors, updated at least every 15 seconds during the
Exchange's Core Trading Session.
    The Exchange believes that the proposed listing standard will
ensure that indices underlying a series of Units are sufficiently well-
diversified to protect against index manipulation. On an initial and
continuous basis, each index will contain at least 500 component
securities. In addition, on an initial and continued basis, at least
90% of the Municipal Securities portion of the weight of the index or
portfolio each shall have a minimum original principal amount
outstanding of at least $5 million and have been issued as part of a
transaction of at least $20 million. Further, on an initial and
continued basis, no component Municipal Security shall represent more
than 10% of the Municipal Securities portion of the weight of the index
or portfolio, and the five most heavily weighted component Municipal
Securities in an index or portfolio shall not in the aggregate account
for more than 30% of the Municipal Securities portion of the weight of
such index or portfolio. Lastly, on an initial and continued basis, an
underlying index or portfolio must include a minimum of 13 non-
affiliated issuers. The Exchange believes that this significant
diversification and the lack of concentration among constituent
securities provides a strong degree of protection against index
manipulation.
    In addition, the Exchange represents that Units listed to the
proposed generic listing rule will comply with all other requirements
applicable to Units including, but not limited to, the applicable rules
governing the trading of equity securities, trading hours, trading
halts, surveillance, information barriers and the Information Bulletin
to ETP Holders, as set forth in Exchange rules applicable to Units.
    The Exchange believes that its proposed amendments to Commentary
.03 are consistent with the Act because any index of Municipal
Securities included in a combination index will be required to meet the
requirements of proposed Commentary .02A. In addition, such index will
be required to meet the index dissemination and continued listing
requirements of Commentary .03. Lastly, a combination index that
includes an index of Municipal Securities will not be permitted to seek
to provide investment results in a multiple of the direct or inverse
performance of such combination index.
    In support of its proposed rule change, the Exchange notes that the
Commission has previously approved the listing and trading of several
series of Units where the underlying Municipal Securities index
required that component securities representing at least 90% of the
weight of the index have a minimum original principal amount
outstanding of at least $5 million and have been issued as part of a
transaction of at least $20 million.\16\ Further, the Exchange notes
that the other elements of the proposed rule are each the same or more
restrictive than the generic listing rules applicable to Units based on
an index of fixed-income securities. The Exchange, therefore, believes
that indices underlying a series of Units listed pursuant to the
proposed generic rules will be sufficiently broad-based to deter
potential manipulation.
---------------------------------------------------------------------------

    \16\ See note 10[sic], infra [sic].
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    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest.
The Exchange believes that a large amount of information will be
publicly available regarding Units listed pursuant to the proposed
rule, thereby promoting market transparency. As described above, the
IIV will be widely disseminated by one or more major market data
vendors at least every 15 seconds during the Exchange's Core Trading
Session. The current value of an index underlying a series of Units
will be disseminated by one or more major market data vendors at least
once per day. Information regarding market price and trading volume of
the Units will be continually available on a real-time basis throughout
the day on brokers' computer screens and other electronic services, and
quotation and last sale information will be available via the CTA high-
speed line. Prior to the commencement of trading, the Exchange will
inform its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Units. If the
Exchange becomes aware that the NAV is not being disseminated to all
market participants at the same time, it will halt trading in the Units
until such time as the NAV is available to all market participants.
With respect to trading halts, the Exchange may consider all relevant
factors in exercising its discretion to halt or suspend trading in the
Units. Trading also may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Units
inadvisable. If the IIV or the index values are not being disseminated
as required, the Exchange may halt trading during the day in which the
interruption to the dissemination of the applicable IIV or an index
value occurs. If the interruption to the dissemination of the
applicable IIV or an index value persists past the trading day in which
it occurred, the Exchange will halt trading. Trading in Shares of the
Funds will be halted if the circuit breaker parameters in NYSE Arca
Rule 7.12-E have been reached or because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Units
inadvisable. In addition, investors will have ready access to
information regarding the IIV, and quotation and last sale information
for the Units.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of exchange-traded products based on municipal bond
indexes that will enhance competition among market participants, to the
benefit of investors and the marketplace. The Exchange has in place
surveillance procedures relating to trading in the Units and may obtain
information via ISG from other exchanges that are members of ISG or
with which the Exchange has entered into a comprehensive surveillance
sharing agreement. In addition, investors will have ready access to
information regarding the IIV and quotation and last sale information
for the Units. Trade price and other information relating to municipal
bonds is available through the MSRB's EMMA system.

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

    The Exchange does not believe that its proposal would impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of Units
based on an index of Municipal Securities which will enhance
competition among market participants, to the benefit of investors and
the marketplace.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or up to 90 days (i) as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or (ii) as to which the self-regulatory
organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2019-04 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-2019-04. 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-2019-04 and should be submitted
on or before March 20, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-03331 Filed 2-26-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 206 (Thursday, October 24, 2013)]
[Rules and Regulations]
[Pages 63380-63381]
[FR Doc No: 2013-24702]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2013-0600; Airspace Docket No. 13-ANM-18]

Amendment of Class E Airspace; St. George, UT

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends Class E airspace at St. George Municipal
Airport, St. George, UT, by removing the operating hours established by
a Notice to Airmen (NOTAM) due to the airport changing from a part time
to a full time facility. This improves the safety and management of
Instrument Flight Rules (IFR) operations at the airport.

DATES: Effective date, 0901 UTC, December 12, 2013. The Director of the
Federal Register approves this incorporation by reference action under
1 CFR Part 51, subject to the annual revision of FAA Order 7400.9 and
publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: Eldon Taylor, Federal Aviation
Administration, Operations Support Group, Western Service Center, 1601
Lind Avenue SW., Renton, WA, 98057; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

History

    On July 29, 2013, the FAA published in the Federal Register a
notice of proposed rulemaking (NPRM) to amend controlled airspace at
St. George, UT (78 FR 45473). Interested parties were invited to
participate in this rulemaking effort by submitting written comments on
the proposal to the FAA. No comments were received.
    Class E airspace designations are published in paragraph 6002, of
FAA Order 7400.9X dated August 7, 2013, and effective September 15,
2013, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in that Order.

The Rule

    This action amends Title 14 Code of Federal Regulations (14 CFR)
Part 71 by amending Class E surface airspace, at St. George Municipal
Airport, St. George, UT. Due to increased air traffic, controlled
airspace is now continuous 24 hours, no longer requiring a NOTAM. The
boundaries of the controlled airspace area remain the same. This action
enhances the safety and management of aircraft operations at St. George
Municipal Airport.
    The FAA has determined this regulation only involves an established
body of technical regulations for which frequent and routine amendments
are necessary to keep them operationally current. Therefore, this
regulation: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
only affects air traffic procedures and air navigation, it is certified
this rule, when promulgated,

does not have a significant economic impact on a substantial number of
small entities under the criteria of the Regulatory Flexibility Act.
The FAA's authority to issue rules regarding aviation safety is found
in Title 49 of the U.S. Code. Subtitle 1, Section 106 discusses the
authority of the FAA Administrator. Subtitle VII, Aviation Programs,
describes in more detail the scope of the agency's authority. This
rulemaking is promulgated under the authority described in Subtitle
VII, Part A, Subpart I, Section 40103. Under that section, the FAA is
charged with prescribing regulations to assign the use of airspace
necessary to ensure the safety of aircraft and the efficient use of
airspace. This regulation is within the scope of that authority as it
amends controlled airspace at St. George Municipal Airport, St. George,
UT.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1E, ``Environmental Impacts: Policies and
Procedures,'' paragraph 311a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR Part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR Part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR Part 71.1 of the Federal
Aviation Administration Order 7400.9X, Airspace Designations and
Reporting Points, dated August 7, 2013, and effective September 15,
2013 is amended as follows:

Paragraph 6002 Class E airspace designated as surface areas.

* * * * *

ANM UT E2 St. George, UT [Amended]

St. George Municipal Airport, UT
    (Lat. 37[deg]02'11'' N., long. 113[deg]30'37'' W.)

    Within a 4.5-mile radius of St. George Municipal Airport.

    Issued in Seattle, Washington, on September 26, 2013.
Johanna Forkner,
Acting Manager, Operations Support Group, Western Service Center.
[FR Doc. 2013-24702 Filed 10-23-13; 8:45 am]
BILLING CODE 4910-13-P