[Federal Register Volume 79, Number 206 (Friday, October 24, 2014)]
[Notices]
[Pages 63619-63621]
[FR Doc No: 2014-25322]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket. No. AD14-14-000]

Price Formation in Energy and Ancillary Services, Markets
Operated by Regional Transmission, Organizations and Independent System
Operators: Supplemental Notice of Workshop on Price Formation: Scarcity
and Shortage Pricing, Offer Mitigation, and Offer Caps in RTO and ISO
Markets

    As announced in a Notice issued on September 5, 2014, the Federal
Energy Regulatory Commission (Commission) will hold a workshop on
Tuesday, October 28, 2014 to commence a discussion with industry on
scarcity and shortage pricing, offer mitigation, and offer caps in
energy and ancillary service markets operated by the Regional
Transmission Organizations and Independent System Operators (RTOs/
ISOs). The workshop will commence at 8:45 a.m. and conclude at 5 p.m.
and will be held at the Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426. This workshop is free of charge and
open to the public. Commission members may participate in the workshop.
    The agenda and a list of participants for this workshop are
attached. Those who plan to attend the workshop are encouraged to
complete the registration form located at https://www.ferc.gov/whats-new/registration/10-28-14-form.aspx. There is no registration deadline.
    The workshop will be transcribed. Transcripts of the workshop will
be available for a fee from Ace-Federal Reporters, Inc.<PHONE_NUMBER>
or 1-800-336-6646). Additionally, there will be a free webcast of the
workshop. The webcast will allow persons to listen to the workshop but
not participate. Anyone with Internet access who wants to listen to the
workshop can do so by navigating to the Calendar of Events at
www.ferc.gov, locating the technical workshop in the Calendar, and
clicking on the webcast link. The Capitol Connection provides technical
support for the webcast and offers the option of listening to the
meeting via phone-bridge for a fee. If you have any questions, visit
www.CapitolConnection.org or call<PHONE_NUMBER>.
    While this workshop is not for the purpose of discussing specific
cases, the workshop may address matters at issue in the following
Commission proceedings that are pending: Astoria Generating Company
L.P. v. New York Independent System Operator, Inc., Docket Nos. EL11-42
and EL11-50; California Independent System Operator Corporation, Docket
No. ER14-1386 and ER14-2484; Hudson Transmission Partners, LLC v. New
York Independent System Operator, Inc., Docket No. EL12-98; Independent
Power Producers of New York, Inc. v. New York Independent System
Operator, Inc., Docket No. EL13-62; ISO New England, Inc. and New
England Power Pool, Docket Nos. EL14-52, ER 14-1050, ER14-2419, and
ER14-2929; Midcontinent Independent System Operator, Inc., Docket Nos.
ER14-2156, and ER11-4081; PJM Interconnection, L.L.C., Docket Nos.
ER14-1144 and ER14-1145; New York Independent System Operator, Inc.,
Docket No. EL07-39; Old Dominion Electric Cooperative, Docket No. ER14-
2242; Seneca Power Partners, L.P. v. New York Independent System
Operator, Inc., Docket No. EL12-6; and Southwest Power Pool, Inc.,
Docket No. ER15-21.
    Commission workshops are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations please
send an email to<EMAIL_ADDRESS>or call toll free (866) 208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a fax to<PHONE_NUMBER>
with the requested accommodations.
    For more information about the workshop, please contact:
    Logistical information: Sarah McKinley, Office of External Affairs,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
    Scarcity/shortage pricing: Bob Hellrich-Dawson, Office of Energy
Policy and Innovation, Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>

    Offer mitigation and offer caps: Emma Nicholson, Office of Energy
Policy and Innovation, Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
    Dated: October 10, 2014.
Kimberly D. Bose,
Secretary.
[GRAPHIC] [TIFF OMITTED] TN24OC14.018

Price Formation in Energy and Ancillary Services Markets Operated by
Regional Transmission Organizations and Independent System Operators

Scarcity and Shortage Pricing, Offer Mitigation, and Offer Caps
Workshop

Docket No. AD14-14-000

    October 28, 2014

Agenda

    On October 28, 2014 a second conference will be held to address
matters of price formation in the energy and ancillary services markets
administered by the Regional Transmission Organizations (RTOs) and
Independent System Operators (ISOs).\1\ It will have three areas of
focus: Scarcity and shortage pricing, offer mitigation and offer caps
in the RTO/ISO markets. The RTO/ISO markets rely on security
constrained economic dispatch and locational marginal pricing to ensure
efficient dispatch of, and compensation to, resources. Ideally, RTO/ISO
market designs would rely on competitive pressure to ensure that
resource offers reflect marginal cost. Because the markets are
imperfect at times (e.g., structural issues, inelastic demand), the
RTO/ISO tariffs include specific rules to ensure prices remain just and
reasonable. These rules take the form of market power mitigation, offer
caps and scarcity pricing. Working together, these rules are intended
to protect against the exercise of market power while allowing prices
in the markets to rise in response to predetermined triggers (e.g., an
operating reserve deficiency) to elicit a market response (e.g.,
generator performance, load response) to support the reliable and
efficient operation of the market. These rules would ideally reflect
the value to load of maintaining reliability and avoiding involuntary
load curtailments.
---------------------------------------------------------------------------

    \1\ Price Formation in Energy and Ancillary Services Markets
Operated by Regional Transmission Organizations and Independent
System Operators, Notice of Workshop, Docket No. AD14-14-000 (Sept.
4, 2014).
---------------------------------------------------------------------------

    Through this conference and any papers Commission staff may release
in advance, Commission staff will explore the technical, operational
and market issues related to shortage pricing, offer mitigation, and
offer caps.

8:45 a.m.-9 a.m.--Welcome and Opening Remarks
9 a.m.-10:30 a.m.--Panel 1: Goals of Scarcity and Shortage Pricing and
Performance of Existing Pricing Rules

    Generally speaking, shortage pricing is the method RTOs/ISOs employ
to price energy and operating reserves during scarcity and shortage
conditions. Scarcity and shortage prices are intended to achieve two
primary goals. The first goal of scarcity and shortage pricing is to
send a short-term price signal to incentivize operation of existing
resources to help maintain reliability. In the short term, these prices
should be high enough to induce existing resources to be available to
the maximum extent possible and to induce imports to offer from
neighboring areas. The high prices should also signal consumers to
reduce demand.
    The second goal of scarcity and shortage pricing is to contribute
to efficient long-term economic entry and exit. When scarcity and
shortage prices accurately reflect consumers' valuation of avoidance of
an involuntary load curtailment, the resulting energy and ancillary
services prices can contribute to efficient long-run market
participation (entry and exit) by addressing part of the ``missing
money'' problem.\2\
---------------------------------------------------------------------------

    \2\ See, e.g., Johannes P. Pfeifenberger and Kathleen Spees, The
Brattle Group, and Kevin Carden and Nick Wintermantel, Astrape
Consulting, Resource Adequacy Requirements: Reliability and Economic
Implications at 83-84 (Sept. 2013), available at http://www.brattle.com/system/publications/pdfs/000/004/984/original/Resource_Adequacy_Requirements_Pfeifenberger_Spees_FERC_Sept_2013.pdf?1392303166.
---------------------------------------------------------------------------

    While scarcity and shortage pricing rules are designed to achieve
these two goals, in practice, system operator practices and experiences
may influence how the rules are administered and thus their efficacy.
    Panel 1 will explore how the goals of scarcity and shortage pricing
are balanced against the operational realities of employing
administrative pricing rules. The discussion will also focus on the
following:
    [ssquf] How the definition of a scarcity or shortage event and the
pricing triggers compare across RTO and ISO markets;
    [ssquf] The frequency and duration of scarcity or shortage events;
    [ssquf] To what extent the frequency and duration of scarcity or
shortage events support efficient entry and exit;
    [ssquf] How the actions system operators take to avert a scarcity
or shortage event are reflected in energy and ancillary service prices;
    [ssquf] Whether scarcity and shortage pricing rules and import/
export timing are sufficiently coordinated such that market
participants can schedule exports and imports efficiently to respond to
shortage conditions.
    Panelists:
     Matthew White, ISO New England Inc.
     Todd Ramey, Midcontinent Independent System Operator, Inc.
     Robert Pike, New York Independent System Operator, Inc.
     Adam Keech, PJM Interconnection, L.L.C.
     Richard Dillon, Southwest Power Pool, Inc.

10:30 a.m.-10:45 a.m.--Break
10:45 a.m.-12:30 p.m.--Panel 2: Lessons Learned from Existing Scarcity
and Shortage Pricing Rules

    Panel 2 will explore lessons learned from existing scarcity and
shortage pricing rules. Possible discussion items could include the
topics discussed in Panel 1 in addition to any other concerns panelists
may have. The RTOs/ISOs and the RTO/ISO market monitoring units will be
given an opportunity to discuss any issues raised by panelists.
    Panelists:
     Joseph Cavicchi, Compass Lexecon, speaking on behalf of
Electric Power Supply Association.
     Erica Bowman, America's Natural Gas Alliance.
     John Citrolo, PSEG Power.
     Charlie Bayless, North Carolina Electric Membership
Corporation.
     Joseph Bowring, Monitoring Analytics.

12:30 p.m.-1:30 p.m.--Lunch
1:30 p.m.-3:30 p.m.--Panel 3: Goals of Offer Caps and Market Power
Mitigation

    Panel 3 will provide the RTO/ISO Market Monitors an opportunity to
discuss the goals of the current incremental energy offer cap and
market power mitigation provisions in their respective markets, and to
provide a performance assessment with respect to those goals. The
market monitors will be asked to discuss the role the $1,000/MWh offer
cap plays in both the

mitigation rules and the shortage pricing rules. The market monitors
will also be asked to discuss whether: (1) Market power mitigation
provisions have a material impact on the price formation process; (2)
the short-run marginal costs estimates that underlie market power
mitigation provisions sufficiently account for all resource supply
costs, including opportunity costs; (3) RTO/ISO offer rules provide
sufficient flexibility for resources to reflect cost changes that occur
between day-ahead and real-time and across hours in real-time; and (4)
RTO/ISO rules provide sufficient protection against the exercise of
market power.
    Panelists:
     Eric Hildebrandt, California Independent System Operator
Corporation.
     Jeffrey McDonald, ISO New England Inc.
     Shaun Johnson, New York Independent System Operator, Inc.
     Joseph Bowring, Monitoring Analytics.
     Catherine Mooney, Southwest Power Pool, Inc.
     David Patton, Potomac Economics.

3:30 p.m.-3:45 p.m.--Break
3:45p.m.-4:45p.m.--Panel 4: Impacts of Offer Caps and Market Power
Mitigation

    Panel 4 will focus on the impacts that offer caps and offer
mitigation have on both buyers and sellers in wholesale markets.
Discussion will include comments from resource owners about whether the
current $1,000/MWh offer cap permits them to reflect their costs fully
in supply bids. Resource owners will also be asked to discuss: (1)
Whether the RTOs/ISOs permit all of the relevant costs, including
opportunity costs, to be included in the marginal cost estimates that
underlie market power mitigation provisions; and (2) whether RTO/ISO
offer rules permit resources to reflect changes in resource supply
costs that occur between day-ahead and real-time and across hours in
real-time. Panelists will be asked to comment on the role that offer
caps and market power mitigation procedures play in ensuring just and
reasonable rates. Of particular interest will be the extent to which
offers capped at some value (like the current $1000/MWh cap) play a
meaningful role in consumer protection. The RTOs/ISOs and the RTO/ISO
market monitoring units will be given an opportunity to discuss any
issues raised by panelists.
    Panelists:
     Joseph Cavicchi, Compass Lexecon, speaking on behalf of
Electric Power Supply Association.
     Abraham Silverman, NRG Energy, Inc.
     Edward Tatum, Old Dominion Electric Cooperative.
     Jeffrey Nelson, Southern California Edison.
     Charlie Bayless, North Carolina Electric Membership
Corporation.
     Patrick Connors, WPPI Energy, speaking on behalf of
Transmission Access Policy Study Group.

4:45 p.m.-5 p.m.--Closing

[FR Doc. 2014-25322 Filed 10-23-14; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: March 1, 2006 (Volume 71, Number 40)]
[Notices]
[Page 10573-10574]
[DOCID:fr01mr06-122]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53347; File No. SR-BSE-2006-07]

Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Its Boston Options Exchange Trading Rules Regarding the
Extension of a Pilot Program That Increases the Standard Position and
Exercise Limits for Certain Options Traded

February 22, 2006.
    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 February 15, 2006, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the BSE. The Exchange has
filed the proposal as a ``non-controversial'' rule change pursuant to
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders it effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The BSE proposes to amend the rules of the Boston Options Exchange
(``BOX''), an options trading facility of the BSE, to extend its
current pilot program to increase the standard position and exercise
limits for equity option contracts and options on the Nasdaq-100 Index
Tracking Stock (``QQQQ'') (``Pilot Program''). The text of the proposed
rule change is available on the BSE's Web site (http://www.bostonstock.com
), at the BSE's principal office, 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 BSE 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 Pilot Program provides for an increase to the standard position
and exercise limits for equity option contracts and for options on
QQQQs for a six-month period.\5\ Specifically, the Pilot Program
increased the applicable position and exercise limits for equity
options and options on the QQQQ to the following levels:
---------------------------------------------------------------------------

    \5\ The Pilot Program, which commenced on March 3, 2005, is set
to expire on March 3, 2006. See Securities Exchange Act Release Nos.
51317 (March 3, 2005), 70 FR 12254 (March 11, 2005) (notice of
filing and immediate effectiveness of File No. SR-BSE-2005-10)
(``Pilot Program Notice''). See also Securities Exchange Act Release
No. 52264 (August 15, 2005), 70 FR 48992 (August 22, 2005) (notice
of filing and immediate effectiveness of File No. SR-BSE-2005-37,
which extended the Pilot Program).
    \6\ Except when the Pilot Program is in effect.

------------------------------------------------------------------------
   Current equity option contract        Pilot program equity option
             limit \6\                          contract limit
------------------------------------------------------------------------
                         13,500                               25,000
                         22,500                               50,000
                         31,500                               75,000
                        160,000                              200,000
                         75,000                              250,000
------------------------------------------------------------------------
                               CurrenPilot Program QQQQ option contract
                                                               limit
------------------------------------------------------------------------
                        300,000                              900,000
------------------------------------------------------------------------

    The Exchange believes that extending the Pilot Program for six
months is warranted due to positive feedback from members and for the
reasons cited in the original rule filing that proposed the adoption of
the Pilot Program.\7\ In addition, BOX has not encountered any problems
or difficulties relating to the Pilot Program since its inception. For
these reasons, the BSE requests that the Commission extend the Pilot
Program for an additional period of approximately six months, through
and including September 1, 2006.
---------------------------------------------------------------------------

    \7\ See Pilot Program Notice, supra note 5.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with section
6(b) of the Act,\8\ in general, and furthers the objective of section
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote
just and equitable principles of trade and to protect investors and the
public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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.

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

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

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

    Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the

Commission may designate, it has become effective pursuant to section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange provided the Commission
with written notice of its intent to file this proposed rule change at
least five business days prior to the date of filing the proposed rule
change. In addition, the Exchange has requested that the Commission
waive the 30-day pre-operative delay. The Commission believes that
waiving the 30-day pre-operative delay is consistent with the
protection of investors and in the public interest because it will
allow the Pilot Program to continue uninterrupted.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ Id.
    \14\ For the purposes only of waiving the pre-operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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 Act.

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 No. SR-BSE-2006-07 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BSE-2006-07. 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the BSE. 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 No. SR-BSE-2006-07 and should be
submitted on or before March 22, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-2817 Filed 2-28-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 204 (Wednesday, October 22, 2014)]
[Notices]
[Pages 63145-63146]
[FR Doc No: 2014-25072]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2014-0002]

Changes in Flood Hazard Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final notice.

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

SUMMARY: New or modified Base (1% annual-chance) Flood Elevations
(BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries
or zone designations, and/or the regulatory floodway (hereinafter
referred to as flood hazard determinations) as shown on the indicated
Letter of Map Revision (LOMR) for each of the communities listed in the
table below are finalized. Each LOMR revises the Flood Insurance Rate
Maps (FIRMs), and in some cases the Flood Insurance Study (FIS)
reports, currently in effect for the listed communities. The flood
hazard determinations modified by each LOMR will be used to calculate
flood insurance premium rates for new buildings and their contents.

DATES: The effective date for each LOMR is indicated in the table
below.

ADDRESSES: Each LOMR is available for inspection at both the respective
Community Map Repository address listed in the table below and online
through the FEMA Map Service Center at www.msc.fema.gov.

FOR FURTHER INFORMATION CONTACT: Luis Rodriguez, Chief, Engineering
Management Branch, Federal Insurance and Mitigation Administration,
FEMA, 500 C Street SW., Washington, DC 20472,<PHONE_NUMBER>, or
(email<EMAIL_ADDRESS>or visit the FEMA Map Information
eXchange (FMIX) online at www.floodmaps.fema.gov/fhm/fmx_main.html.

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) makes the final flood hazard determinations as shown in the
LOMRs for each community listed in the table below. Notice of these
modified flood hazard determinations has been published in newspapers
of local circulation and ninety (90) days have elapsed since that
publication. The Deputy Associate Administrator for Mitigation has
resolved any appeals resulting from this notification.
    The modified flood hazard determinations are made pursuant to
section 206 of the Flood Disaster Protection Act of 1973, 42 U.S.C.
4105, and are in accordance with the National Flood Insurance Act of
1968, 42 U.S.C. 4001 et seq., and with 44 CFR part 65.
    For rating purposes, the currently effective community number is
shown and must be used for all new policies and renewals.
    The new or modified flood hazard determinations are the basis for
the floodplain management measures that the community is required
either to adopt or to show evidence of being already in effect in order
to remain qualified for participation in the National Flood Insurance
Program (NFIP).
    These new or modified flood hazard determinations, together with
the floodplain management criteria required by 44 CFR 60.3, are the
minimum that are required. They should not be construed to mean that
the community must change any existing ordinances that are more
stringent in their floodplain management requirements. The community
may at any time enact stricter requirements of its own or pursuant to
policies established by other Federal, State, or regional entities.
    These new or modified flood hazard determinations are used to meet
the floodplain management requirements of the NFIP and also are used to
calculate the appropriate flood insurance premium rates for new
buildings, and for the contents in those buildings. The changes in
flood hazard determinations are in accordance with 44 CFR 65.4.
    Interested lessees and owners of real property are encouraged to
review the final flood hazard information available at the address
cited below for each community or online through the FEMA Map Service
Center at www.msc.fema.gov.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Chief executive          Community map            Effective date  of        Community
          State and county             Location and case No.   officer of community         repository                 modification              No.
--------------------------------------------------------------------------------------------------------------------------------------------------------
New Mexico:
    Taos (FEMA Docket No.: B-1422)..  Unincorporated areas    The Honorable Gabriel   Taos County,            August 22, 2014..............       350078
                                       of Taos County (14-06-  J. Romero, Chairman,    Administrative
                                       0477P).                 Taos County             Complex, 105 Albright
                                                               Commission, 105         Street, Suite H,
                                                               Albright Street,        Taos, NM 87571.
                                                               Suite A, Taos, NM
                                                               87571.
Oklahoma:
    Canadian (FEMA Docket No.: B-     City of Oklahoma City   The Honorable Mick      420 West Main Street,   August 18, 2014..............       405378
     1422).                            (12-06-2730P).          Cornett, Mayor, City    Suite 700, Oklahoma
                                                               of Oklahoma City, 200   City, OK 73102.
                                                               North Walker Avenue,
                                                               3rd Floor, Oklahoma
                                                               City, OK 73102.
    Pottawatomie (FEMA Docket No.: B- City of Shawnee (13-06- Mr. Brian McDougal,     City Hall, 16 West 9th  August 14, 2014..............       400178
     1416).                            0976P).                 Manager, City of        Street, Shawnee, OK
                                                               Shawnee, 16 West 9th    74801.
                                                               Street, Shawnee, OK
                                                               74801.
Texas:
    Denton (FEMA Docket No.: B-1422)  City of Frisco (13-06-  The Honorable Maher     City Hall, 6101 Frisco  August 18, 2014..............       480134
                                       3033P).                 Maso, Mayor, City of    Square Boulevard,
                                                               Frisco, 6101 Frisco     Frisco, TX 75034.
                                                               Square Boulevard,
                                                               Frisco, TX 75034.
    Harris (FEMA Docket No.: B-1422)  Unincorporated areas    The Honorable Ed M.     Harris County 10555     August 21, 2014..............       480287
                                       of Harris County (13-   Emmett, Harris County   Northwest Freeway
                                       06-4636P).              Judge, 1001 Preston     Houston, TX 77092.
                                                               Street, Suite 911,
                                                               Houston, TX 77002.
    Montgomery (FEMA Docket No.: B-   City of Conroe (13-06-  The Honorable Webb K.   City Hall, 505 West     August 21, 2014..............       480484
     1422).                            3145P).                 Melder, Mayor, City     Davis Street, Conroe,
                                                               of Conroe, P.O. Box     TX 77301.
                                                               3066, Conroe, TX
                                                               77305.
--------------------------------------------------------------------------------------------------------------------------------------------------------

(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')

    Dated: September 29, 2014.
Roy E. Wright,
Deputy Associate Administrator for Mitigation, Department of Homeland
Security, Federal Emergency Management Agency.
[FR Doc. 2014-25072 Filed 10-21-14; 8:45 am]
BILLING CODE 9110-12-P


[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3210-3213]
[FR Doc No: 2016-00899]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76888; File No. SR-CBOE-2015-122]

 Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to COPS

January 13, 2016.
    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 December 31, 2015, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') 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
Exchange. The Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Exchange proposes to extend the contributor compensation
structure of the Customized Option Pricing Service (``COPS''). There is
no new proposed rule text.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to extend the
contributor compensation structure of the Exchange's COPS,\5\
specifically, the COPS data revenue-sharing plan. The Exchange is not
proposing to change the fees for COPS data.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release Nos. 34-67813 (September
10, 2012), 77 FR 56903 (September 14, 2012) (SR-CBOE-2012-083); 34-
67928 (September 26, 2012), 77 FR 60161 (October 2, 2012) (SR-CBOE-
2012-090); 34-70705 (October 17, 2013), 78 FR 63265 (October 23,
2013) (SR-CBOE-2013-097); 34-70845 (November 12, 2013), 78 FR 69168
(November 18, 2013) (SR-CBOE-2013-104); 34-72621 (July 16, 2014), 79
FR 42616 (July 22, 2014) (SR-CBOE-2014-057); 34-74159 (January 28,
2015), 80 FR 5863 (February 23, 2015) (SR-CBOE-2015-007); and 34-
74937 (May 12, 2015), 80 FR 28319 (May 18, 2015) (SR-CBOE-2015-046).
---------------------------------------------------------------------------

Background
    COPS provides market participants with an ``end-of-day'' \6\ file
and ``historical'' \7\ files of valuations for Flexible Exchange
(``FLEX'') \8\ options and certain over-the-counter (``OTC'') options
(collectively, ``COPS Data''). Market Data Express, LLC (``MDX''), an
affiliate of CBOE, offers COPS Data for sale to all market
participants. COPS Data is available to ``Subscribers'' for internal
use and internal distribution only, and to ``Customers'' who, pursuant
to a written vendor agreement between MDX and a Customer, may
distribute the COPS Data externally (i.e., act as a

vendor) and/or use and distribute the COPS Data internally.
---------------------------------------------------------------------------

    \6\ ``End of day'' refers to data that is distributed prior to
the opening of the next trading day.
    \7\ ``Historical'' COPS data consists of COPS data that is over
one month old (i.e., copies of the ``end-of-day'' COPS file that are
over one month old).
    \8\ FLEX options are exchange traded options that provide
investors with the ability to customize basic option features
including size, expiration date, exercise style, and certain
exercise prices.
---------------------------------------------------------------------------

    COPS Data consists of indicative \9\ values for four categories of
``customized'' options. The first category of options is all open
series of FLEX options listed on any exchange that offers FLEX options
for trading.\10\ The second category is OTC options that have the same
degree of customization as FLEX options. The third category includes
options with strike prices expressed in percentage terms. Values for
such options are expressed in percentage terms and are theoretical
values.\11\ The fourth category includes ``exotic'' options.\12\
---------------------------------------------------------------------------

    \9\ ``Indicative'' values are indications of potential market
prices only and as such are neither firm nor the basis for a
transaction.
    \10\ Current FLEX options open interest spans over 2,000 series
on over 300 different underlying securities.
    \11\ These values are theoretical in that they are indications
of potential market prices for options that have not traded (i.e. do
not yet exist). Market participants sometimes express option values
in percentage terms rather than in dollar terms because they find it
is easier to assess the change, or lack of change, in the
marketplace from one day to the next when values are expressed in
percentage terms.
    \12\ Exotic options are options which are generally traded OTC
and are more complex than standard options, usually relating to
determination of payoff. An exotic option may also include a non-
standard underlying instrument, developed for a particular client or
for a particular market.
---------------------------------------------------------------------------

    The Exchange uses values produced by CBOE Trading Permit Holders
(``TPHs'') to produce COPS Data. Participating CBOE TPHs submit values
to MDX on options series specified by MDX on a daily basis. These
values are generated by the TPHs' internal pricing models. The
valuations that MDX ultimately publishes are an average of multiple
contributions of values from participating CBOE TPHs. For each value
provided by MDX through COPS, MDX includes a corresponding indication
of the number of TPH contributors that factored into that value.
    CBOE TPHs that meet the following objective qualification criteria
are allowed to contribute values to MDX for purposes of producing COPS
Data. Interested CBOE TPHs must be approved by the Exchange, have the
ability to provide valuations to MDX in a timely manner each day after
the close of trading, and sign a services agreement with CBOE.
Interested CBOE TPHs must also have the ability to provide both
indicative and implied volatility valuations on several different types
of options, including (i) options on all open FLEX series traded on any
exchange that offers FLEX options for trading, (ii) options on any
potential new FLEX options series, (iii) OTC options that have the same
degree of customization as FLEX options, (iv) customized options where
the strike price is expressed in percentage terms (the valuations
provided to MDX must also be expressed in percentage terms), and (v)
exotic options. In addition, interested CBOE TPHs must participate in a
testing phase with MDX. The values submitted by a TPH during the
testing phase and in live production must meet MDX's quality control
standards designed to ensure the integrity and accuracy of COPS Data.
MDX has implemented procedures including monthly performance reviews to
help ensure the integrity and accuracy of COPS Data.
    To help ensure that MDX receives numerous values from multiple TPHs
on a consistent basis, MDX shares revenue from the sale of COPS Data
with participating CBOE TPHs.\13\ The amount of revenue that MDX shares
with participating TPHs is a percentage of the total revenue received
by MDX from the sale of COPS Data. The revenue sharing is based on the
following table:
---------------------------------------------------------------------------

    \13\ The fees that MDX charges for COPS Data are set forth on
the Price List on the MDX Web site (www.marketdataexpress.com). MDX
currently charges a fee per option per day for ``end-of-day'' COPS
data. The amount of the fee is reduced based on the number of
options valuations purchased.

----------------------------------------------------------------------------------------------------------------
                                           Total revenue
      Number of participating TPHs           share  %                     Revenue share per TPH  %
----------------------------------------------------------------------------------------------------------------
3......................................                21  7
4......................................                24  6
5 or more..............................                30  30 divided by the number of participating TPHs.
----------------------------------------------------------------------------------------------------------------

    If only three TPHs participate, MDX shares 21% of total revenue
with each TPH receiving a 7% share. If four TPHs participate, MDX
shares 24% of total revenue with each TPH receiving a 6% share. If five
or more TPHs participate, MDX shares 30% of total revenue divided
equally among the TPHs. There are currently three participating TPHs.
    In July 2014, the Exchange submitted a proposed rule change to,
among other things, temporarily change the COPS contributor
compensation structure from a revenue sharing plan to a fixed payment
structure for a six-month period (``Fixed Payment Period'').\14\ In May
2015, the Exchange submitted a proposed rule change to change the COPS
contributor compensation structure for the remainder of 2015.\15\
Pursuant to that proposed rule change, as of May 1, 2015, all revenue
from the sale of COPS Data was paid to COPS contributors, with revenue
divided equally among COPS contributors. As described in that proposed
rule change, MDX would transition back to the revenue share plan
described above on January 1, 2016.
---------------------------------------------------------------------------

    \14\ See Securities Exchange Act Release No. 34-72621 (July 16,
2014), 79 FR 42616 (July 22, 2014) (SR-CBOE-2014-057).
    \15\ Securities Exchange Act Release No. 34-74937 (May 12,
2015), 80 FR 28319 (May 18, 2015) (SR-CBOE-2015-046). The Exchange
is not proposing to eliminate the revenue share plan, but rather
extend its temporary suspension as described in this rule filing.
---------------------------------------------------------------------------

Proposal
    The Exchange proposes to extend the current COPS contributor
compensation structure for six months. All revenue from the sale of
COPS Data will continue to be paid to COPS contributors through June
30, 2016. The revenue will continue to be divided equally among COPS
contributors. The Exchange had hoped that at the end of 2015, COPS
revenue would be at a level such that the COPS contributors would
receive a revenue share roughly in line with the fixed payments they
received during the Fixed Payment Period. This has not yet occurred.
The payments to COPS contributors are intended to, at a minimum, help
COPS contributors cover their costs of producing valuations for COPS
while the Exchange continues to grow the COPS business. MDX will
transition back to the revenue share plan described above on July 1,
2016.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange

and, in particular, the requirements of Section 6(b) of the Act.\16\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \17\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \18\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ Id.
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change is not designed to
permit unfair discrimination between CBOE TPHs because all COPS data
revenue would be divided equally among TPH contributors for an
additional six months. The Exchange believes the proposed rule change
is consistent with the protection of investors and the public interest
in that it would provide incentive for all of the COPS contributors to
continue to participate in COPS while the Exchange continues to grow
the COPS business, thereby helping to maintain the quality of COPS
Data.

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

    CBOE 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. To the contrary, the Exchange
believes the proposal is procompetitive in that it will incentivize
COPS contributors to continue producing quality valuations to help keep
COPS competitive with other similar market data products.\19\
---------------------------------------------------------------------------

    \19\ Market data vendors including SuperDerivatives, Markit,
Prism, and Bloomberg's BVAL service produce option value data that
is similar to COPS Data. The Options Clearing Corporation (``OCC'')
also produces FLEX option value data that is similar to the FLEX
option value data that is included in COPS.
---------------------------------------------------------------------------

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

    Because the foregoing rule does not (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, provided that the self-regulatory organization
has given the Commission written notice of its intent to file the
proposed rule change at least five business days prior to the date of
filing of the proposed rule change or such shorter time as designated
by the Commission,\20\ the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \21\ and Rule 19b-4(f)(6)
thereunder.\22\
---------------------------------------------------------------------------

    \20\ The Exchange has fulfilled this requirement.
    \21\ 15 U.S.C. 78s(b)(3)(A).
    \22\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \23\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange believes
that the proposal is consistent with the protection of investors and
the public interest because it help COPS contributors cover their costs
of producing valuations for COPS while the Exchange continues to grow
the COPS business, and thereby assist the Exchange with maintaining its
current roster of TPH contributors. The Commission believes that it is
consistent with the protection of investors and the public interest to
waive the 30-day operative delay so that the proposal may take effect
upon filing and allow the current COPS contributor compensation
structure to continue without interruption. For this reason, the
Commission designates the proposed rule change to be operative upon
filing.\25\
---------------------------------------------------------------------------

    \23\ 17 CFR 240.19b-4(f)(6).
    \24\ 17 CFR 240.19b-4(f)(6)(iii).
    \25\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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.

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-CBOE-2015-122 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-CBOE-2015-122. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official

business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing 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-CBOE-2015-122 and should be submitted on or before
February 10, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00899 Filed 1-19-16; 8:45 am]
 BILLING CODE 8011-01-P