[Federal Register Volume 88, Number 227 (Tuesday, November 28, 2023)]
[Notices]
[Pages 83189-83199]
[FR Doc No: 2023-26112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99008; File No. SR-BX-2023-031]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend BX Options
7, Section 2 Regarding Fees and Rebates

November 21, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 17, 2023, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``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 amend its Pricing Schedule at Options 7,
Section 2.\3\
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    \3\ The Exchange initially filed the proposed pricing changes on
November 14, 2023 (SR-BX-2023-029). On November 16, 2023, the
Exchange withdrew that filing and submitted this filing.
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    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

forth in sections A, B, and C below, of the most significant aspects of
such statements.

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

1. Purpose
    The Exchange proposes to amend BX's Pricing Schedule at Options 7,
Section 2, BX Options Market-Fees and Rebates. Specifically, BX
proposes to (i) amend BX's fees and rebates for execution of contracts
at Options 7, Section 2(1) including note 1, and reserve note 2; (ii)
amend fees for routing contracts to markets other than the Exchange at
Options 7, Section 2(3); (iii) amend fees and rebates for execution of
contracts on the Exchange that generate an order exposure alert at
Options 7, Section 2(4); and (iv) amend fees and rebates for BX Price
Improvement Auction (``PRISM'') at Options 7, Section 2(5). Each change
will be described below.
Options 7, Section 2(1)
    Today, the Exchange assesses the following Penny Symbols and Non-
Penny Symbols Maker Rebates and Taker Fees:

                              Penny Symbols
------------------------------------------------------------------------
           Market participant              Maker rebate      Taker fee
------------------------------------------------------------------------
Lead Market Maker.......................      \2\ (0.29)           $0.50
Market Maker............................      \2\ (0.25)            0.50
Non-Customer............................          (0.12)            0.50
Firm....................................          (0.12)            0.50
Customer................................          (0.30)        \1\ 0.46
------------------------------------------------------------------------

                            Non-Penny Symbols
------------------------------------------------------------------------
                                          Maker rebate /
           Market participant                   fee          Taker fee
------------------------------------------------------------------------
Lead Market Maker.......................          (0.45)           $1.10
Market Maker............................          (0.40)            1.10
Non-Customer............................            0.45            1.10
Firm....................................            0.45            1.10
Customer................................      \3\ (0.90)            0.79
------------------------------------------------------------------------

    At this time, the Exchange proposes to reduce certain Penny Symbol
Maker Rebates and Taker Fees and increase certain Non-Penny Symbol
Maker Rebates and Taker Fees. With respect to the Penny Symbols, the
Exchange proposes to decrease the Maker Rebates for Lead Market Makers
\4\ from $0.29 to $0.24 per contract and decrease the Maker Rebates for
Market Makers \5\ from $0.25 to $0.20 per contract. While the Exchange
is reducing these Penny Symbol Maker Rebates for Lead Market Makers and
Market Makers, the Exchange will continue to offer the rebates to
incentivize market participants to direct order flow to BX.
Additionally, the Exchange proposes to reduce the Customer \6\ Penny
Symbol Taker Fee from $0.46 to $0.40 per contract. The Exchange
believes reducing this Penny Symbol Taker Fee will attract more
Customer order flow to BX.\7\
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    \4\ The term ``Lead Market Maker'' or (``LMM'') applies to a
registered BX Options Market Maker that is approved pursuant to
Options 2, Section 3 to be the LMM in an options class (options
classes). See BX Options 7, Section 1(a).
    \5\ The term ``BX Options Market Maker'' or (``M'') is a
Participant that has registered as a Market Maker on BX Options
pursuant to Options 2, Section 1, and must also remain in good
standing pursuant to Options 2, Section 9. In order to receive
Market Maker pricing in all securities, the Participant must be
registered as a BX Options Market Maker in at least one security.
See BX Options 7, Section 1(a).
    \6\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at The Options Clearing Corporation (``OCC'') which is not for
the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Options 1, Section
1(a)(48)). See BX Options 7, Section 1(a).
    \7\ The Exchange is proposing to add dollar signs in a few
places in the table in Options 7, Section 2(1) where the dollar sign
is missing.
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    With respect to Non-Penny Symbols, the Exchange proposes to
increase the Maker Rebates for Customers from $0.90 to $1.10 per
contract and increase the Taker Fees for all Non-Customers \8\ from
$1.10 to $1.25 per contract. The Exchange believes the increase to the
Non-Penny Symbol Customer Maker Rebate will attract more Customer order
flow to BX. With respect to the Non-Penny Symbol Taker Fee for Non-
Customers, while the Exchange is increasing these fees, the Exchange
believes that these fees will continue to draw participants seeking
liquidity to BX because BX is increasing its Non-Penny Customer Maker
Rebate to enhance its market quality and provide more trading
opportunities, which benefits all market participants.
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    \8\ The term ``Non-Customer'' shall include a Professional,
Broker-Dealer and Non-BX Options Market Maker. See BX Options 7,
Section 1(a).
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    The Exchange proposes to amend note 1 of Options 7, Section 2(1)
which currently reduces the Customer Penny Symbol Taker Fee from $0.46
to $0.33 per contract for trades which remove liquidity in SPDR S&P 500
ETF (``SPY''). With the proposed changes to the Customer Penny Symbol
Taker Fee noted herein, note 1 of Options 7, Section 2(1) would reduce
the Customer Penny Symbol Taker Fee from $0.40 to $0.33 per contract
for trades which remove liquidity in SPY. Additionally, the Exchange
proposes to extend this Customer Penny Symbol discount to transactions
that remove liquidity in Invesco QQQ Trust Series 1 (``QQQ'') and
iShares Russell 2000 ETF (``IWM''). The proposed rule text would
provide, ``Customer Taker Fee will be $0.33 per contract for trades
which remove liquidity in SPY, QQQ, and IWM.'' The Exchange believes
that note 1 will continue to attract Customer Penny Symbol SPY
transactions that remove liquidity as the Exchange will continue to
discount these fees for SPY. The addition of Taker Fee discounts for
QQQ and IWM will attract additional QQQ and IWM transactions that
remove liquidity to BX.

    The Exchange also proposes to reserve note 2 of Options 7, Section
2(1) which currently provides, ``The Maker Rebate for Lead Market
Makers and Market Makers in SPY will be $0.22 per contract. The Maker
Rebate for Lead Market Makers and Market Makers in AAPL and QQQ will be
$0.42 per contract.'' Today, the Penny Symbol Maker Rebates for Lead
Market Makers and Market Makers in SPY is reduced to $0.22 per contract
with this note 2. The Exchange would no longer reduce the Penny Symbol
Maker Rebates for Lead Market Makers and Market Makers in SPY to $0.22,
rather SPY would be paid the same Maker Rebates (a $0.24 per contract
Lead Market Maker Penny Symbol Maker Rebate and a $0.20 per contract
Market Maker Penny Symbol Maker Rebate) as all other options symbols.
Additionally, AAPL and QQQ would no longer be paid a $0.42 per contract
Penny Symbol Maker Rebate for Lead Market Makers and Market Makers,
rather AAPL and QQQ would be paid the same Maker Rebates (a $0.24 per
contract Lead Market Maker Penny Symbol Maker Rebate and a $0.20 per
contract Market Maker Penny Symbol Maker Rebate) as all other options
symbols. With this proposal, the Exchange would uniformly pay the
proposed Lead Market Maker and Market Maker Penny Symbol Maker Rebates
on all options symbols.
Options 7, Section 2(3)
    Currently, BX assesses a Non-Customer routing fee of $0.99 per
contract and a Customer routing fee of $0.23 per contract, in addition
to the actual transaction fee assessed by the away market, for routing
contracts to markets other than The Nasdaq Options Market LLC (``NOM'')
and Nasdaq Phlx LLC (``Phlx''). Currently, if the away market pays a
rebate, the Exchange assesses a Customer a Routing Fee of $0.13 per
contract for markets other than NOM and Phlx. Currently, BX assesses a
Customer a $0.13 per contract Fixed Fee in addition to the actual
transaction fee assessed when routing to NOM and Phlx.
    At this time, the Exchange proposes to assess a Non-Customer an
increased routing fee to route to any options exchange of $1.20 per
contract. The Exchange also proposes to assess a Customer a Fixed Fee
of $0.23 per contract, in addition to the actual transaction fee
assessed by the away market, for routing contracts to any options
exchange. The Exchange would no longer assess the lower routing of
$0.13 per contract, in addition to the actual transaction fee assessed,
when routing to NOM and Phlx. The Exchange will continue to assess a
$0.13 per contract routing fee if the away market pays a rebate,
including NOM and Phlx. The purpose of the proposed routing fees is to
recoup costs incurred by the Exchange when routing orders to other
options exchanges on behalf of options Participants. In determining its
proposed routing fees, the Exchange took into account transaction fees
assessed by other options exchanges, the Exchange's projected clearing
costs, and the projected administrative, regulatory, and technical
costs associated with routing orders to other options exchanges. The
Exchange will continue to use its affiliated broker-dealer, Nasdaq
Execution Services, to route orders to other options exchanges. Routing
services offered by the Exchange are completely optional and market
participants can readily select between various providers of routing
services, including other exchanges and broker-dealers. Also, the
Exchange notes that market participants may elect to mark their orders
as ``Do Not Route'' to avoid any routing fees.\9\ The Exchange believes
that the proposed Routing Fees would enable the Exchange to recover the
costs it incurs to route orders to away markets after taking into
account the other costs associated with routing orders to other options
exchanges. Also, the Exchange's proposal would uniformly assess the
same Customer routing fees, regardless of the away venue, of $0.23 per
contract, in addition to the actual transaction fee assessed, or $0.13
per contract if the away market pays a rebate.
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    \9\ See BX Options 3, Section 7(c).
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Options 7, Section 2(4)
    Today, the Exchange assesses the below fees and pays the below
rebates for execution of contracts on BX that generate an order
exposure alert \10\ pursuant to Options 5, Section 4.
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    \10\ An order exposure alert provides marketable orders on BX's
order book an additional opportunity for execution on BX when it is
not part of the national best bid or offer (``NBBO'') contra to the
order and the order locks or crosses the away best bid or offer
(``ABBO'').

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----------------------------------------------------------------------------------------------------------------
Customer                                             Lead market      BX options
                                                           maker    market maker           Non-customer
----------------------------------------------------------------------------------------------------------------
Penny Symbols:
    Rebate for Order triggering order exposure             $0.34           $0.00           $0.00           $0.00
     alert......................................
    Fee for Order responding to order exposure              0.39            0.39            0.39            0.45
     alert......................................
Non-Penny Symbols:
    Rebate for Order triggering order exposure              0.70            0.00            0.00            0.00
     alert......................................
    Fee for Order responding to order exposure              0.85            0.85            0.85            0.89
     alert......................................
----------------------------------------------------------------------------------------------------------------

    At this time, the Exchange proposes to amend its pricing related to
execution of contracts on BX that generate an order exposure alert.
With respect to Customer fees and rebates, the Exchange proposes to
increase the Penny Symbol rebate for an order triggering an order
exposure alert from $0.34 to $0.47 per contract. The Exchange proposes
to increase the Customer Penny Symbol fee for orders that respond to an
order exposure alert from $0.39 to $0.47 per contract. The Exchange
proposes to increase the Customer Non-Penny Symbol rebate for an order
triggering an order exposure alert from $0.70 to $1.10 per contract.
The Exchange proposes to increase the Customer Non-Penny Symbol fee for
orders that respond to an order exposure alert from $0.85 to $1.25 per
contract.
    With respect to Lead Market Maker fees and rebates, the Exchange
proposes to increase the Penny Symbol rebate for an order triggering an
order exposure alert from $0.00 to $0.10 per contract. The Exchange
proposes to increase the Lead Market Maker Penny Symbol fee for orders
that respond to an order exposure alert from $0.39 to $0.50 per
contract. The Exchange proposes to increase the Lead Market Maker Non-
Penny Symbol rebate for an order triggering an order exposure alert
from $0.00 to $0.25 per contract. The Exchange proposes to increase the
Lead Market Maker Non-Penny Symbol fee for orders that respond to an
order exposure alert from $0.85 to $1.25 per contract.

    With respect to Market Maker fees and rebates, the Exchange
proposes to increase the Penny Symbol rebate for an order triggering an
order exposure alert from $0.00 to $0.10 per contract. The Exchange
proposes to increase the Market Maker Penny Symbol fee for orders that
respond to an order exposure alert from $0.39 to $0.50 per contract.
The Exchange proposes to increase the Market Maker Non-Penny Symbol
rebate for an order triggering an order exposure alert from $0.00 to
$0.25 per contract. The Exchange proposes to increase the Market Maker
Non-Penny Symbol fee for orders that respond to an order exposure alert
from $0.85 to $1.25 per contract.
    With respect to Non-Customer fees and rebates, the Exchange
proposes to increase the Penny Symbol rebate for an order triggering an
order exposure alert from $0.00 to $0.10 per contract. The Exchange
proposes to increase the Non-Customer Penny Symbol fee for orders that
respond to an order exposure alert from $0.45 to $0.50 per contract.
The Exchange proposes to increase the Non-Customer Non-Penny Symbol
rebate for an order triggering an order exposure alert from $0.00 to
$0.25 per contract. The Exchange proposes to increase the Non-Customer
Non-Penny Symbol fee for orders that respond to an order exposure alert
from $0.89 to $1.25 per contract.
    While the Exchange is increasing fees to respond to an order
exposure alert, it is also increasing rebates that trigger an order
exposure alert. The Exchange believes that this pricing will continue
to provide incentives to Participants to utilize the order exposure
functionality which facilitates the ability of the Exchange to bring
together participants and encourage more robust competition for orders.
Options 7, Section 2(5)
    Currently, the Exchange assesses the below fees and pays the below
rebates for orders executed in its PRISM Auction.

                                                                    Fees and Rebates
                                                                     [Per contract]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Submitted PRISM auction order   Response to PRISM auction fee   PRISM order traded with PRISM
---------------------------------------------------------               fee              --------------------------------         response rebate
                                                         --------------------------------                                -------------------------------
               Type of market participants                                  Initiating     Penny classes     Non-penny                       Non-penny
                                                            PRISM order        order                          classes      Penny classes      classes
--------------------------------------------------------------------------------------------------------------------------------------------------------
Customer................................................           $0.00           $0.00           $0.49           $0.94           $0.35           $0.70
Lead Market Maker.......................................            0.00            0.05            0.49            0.94            0.00            0.00
BX Options Market Maker.................................            0.00            0.05            0.49            0.94            0.00            0.00
Non-Customer............................................            0.00            0.05            0.49            0.94            0.00            0.00
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Exchange proposes to amend its PRISM pricing to delineate PRISM
Auction Orders \11\ in Penny and Non-Penny Classes. Today, the Exchange
assesses no PRISM Order \12\ fee to any Participant in Penny or Non-
Penny Classes and assesses Non-Customers a $0.05 per contract
Initiating Order \13\ fee in Penny and Non-Penny Classes. With respect
to PRISM Auction Orders submitted in Penny Classes, the Exchange
proposes to continue to assess no PRISM Order fee to any Participant
and also proposes to amend the Non-Customer Initiating Order Fees from
$0.05 to $0.00 per contract. Today, Customers are not assessed an
Initiating Order Fee in either Penny or Non-Penny Classes. With this
proposed change, no Participant will be assessed an Initiating Order
fee in Penny Classes.
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    \11\ A PRISM Auction Order is a two-sided, paired order
comprised of a PRISM Order and an Initiating Order. See BX Options
7, Section 2(5).
    \12\ A PRISM Order is one-side of a PRISM Auction Order that
represents an agency order on behalf a Public Customer, broker-
dealer or other entity which is paired with an Initiating Order. See
BX Options 7, Section 2(5).
    \13\ An Initiating Order is one-side of a PRISM Auction Order
that represents principal or other interest which is paired with a
PRISM Order. See BX Options 7, Section 2(5).
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    With respect to PRISM Auction Orders submitted in Non-Penny
Classes, the Exchange proposes to adopt new pricing. The Exchange
proposes to pay a Non-Penny Class PRISM Order rebate to a Customer of
$0.12 per contract. Similar to Penny Classes, the Exchange proposes to
assess no Non-Penny Class PRISM Order fees or Initiating Order fees to
any Participant. The Exchange believes that the proposed pricing will
encourage BX Participants to submit a greater amount of PRISM Orders to
BX as the Exchange will not assess PRISM Order or Initiating Order fees
to any BX Participant (Penny or Non-Penny Class) and it will pay a Non-
Penny Class Customer PRISM Order rebate of $0.12 per contract.
    With respect to a PRISM Response \14\ to a PRISM Auction \15\ the
Exchange proposes to increase the $0.49 per contract fee for Penny
Classes, which is currently assessed to all Participants (Customer,
Lead Market Maker, BX Options Market Maker, and Non-Customer), to $0.50
per contract for Lead Market Makers, BX Options Market Makers and Non-
Customers. The Exchange proposes to assess a Customer a $0.40 per
contract PRISM Response fee for Penny Classes. Additionally, the
Exchange proposes to increase the $0.94 per contract fee for Non-Penny
Classes, which is currently assessed to all Participants (Customer,
Lead Market Maker, BX Options Market Maker, and Non-Customer), to $1.25
per contract for Lead Market Makers, BX Options Market Makers and Non-
Customers. The Exchange proposes to assess a Customer a $0.79 per
contract PRISM Response fee for Non-Penny Classes. These proposes fees
are the same as the Taker Fees assessed to the same Participants when
removing liquidity from the order book. The Exchange is not amending
the rebates paid to a PRISM Order when that order trades with a PRISM
Response. The Exchange believes that the increased PRISM Response fees
will continue to attract order flow to BX since the Exchange is no
longer assessing any fees to submit PRISM Orders and Initiating Orders
and is now offering a Customer Non-Penny rebate to submit a PRISM Order
with this proposal.
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    \14\ A PRISM Response is interest that executed against the
PRISM Order pursuant to Options 3, Section 13. See BX Options 7,
Section 2(5).
    \15\ The Exchange proposes to add the word ``PRISM'' before
``Response'' in Options 7, Section 2(5) of the Pricing Schedule to
utilize the defined term in the description of the column header.
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Unrelated Market or Marketable Interest
    The Exchange assesses fees and pays rebates with respect to
unrelated market or marketable interest received prior to the
commencement of a PRISM Auction and during a PRISM Auction. Today, when
a PRISM Order is a Customer order and executes against unrelated market
or marketable interest received during a PRISM Auction, the Customer

order receives a rebate of $0.35 per contract for Penny Classes and
$0.70 per contract for Non-Penny Classes, which represents the pricing
within Options 7, Section 2(5). In this case, the unrelated market or
marketable interest received during a PRISM Auction is assessed a $0.49
per contract fee for Penny Classes or a $0.94 per contract fee for Non-
Penny Classes as described in Options 7, Section 2(5).
    Likewise, today, when a PRISM Order is a Lead Market Maker, BX
Options Market Maker or Non-Customer order and executes against
unrelated market or marketable interest received during a PRISM
Auction, the Lead Market Maker, BX Options Market Maker or Non-Customer
order pays no fee, which represents the pricing within Options 7,
Section 2(5). In this case, the unrelated market or marketable interest
received during a PRISM Auction is assessed a $0.49 per contract fee
for Penny Classes or a $0.94 per contract fee for Non-Penny Classes as
described in Options 7, Section 2(5). In contrast, today, when a PRISM
Order is a Customer, Lead Market Maker, BX Options Market Maker or Non-
Customer order and executes against unrelated market or marketable
interest received prior to a PRISM Auction, the Customer, Lead Market
Maker, BX Options Market Maker or Non-Customer order is subject to the
Taker Fee within Options 7, Section 2(1).\16\ The Exchange applies the
order book pricing within Options 7, Section 2(1) to interest received
prior to the PRISM Auction, which is considered unrelated market or
marketable interest for purposes of the PRISM Auction. In contrast, the
Exchange applies PRISM pricing within Options 7, Section 2(5) to the
unrelated market or marketable interest when interest arrived during a
PRISM Auction.
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    \16\ Today, BX assesses the following Penny Symbol Taker Fees:
$0.50 per contract for a Lead Market Maker, Market Maker, Non-
Customer, and Firm and $0.46 per contract for a Customer. BX
assesses the following Non-Penny Symbol Taker Fees: $1.10 per
contract for a Lead Market Maker, Market Maker, Non-Customer, and
Firm and $0.79 per contract for a Customer. The Exchange is
proposing changes to these fees as described herein.
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    At this time, the Exchange proposes to amend the unrelated market
or marketable interest rule text in Options 7, Section 2(5) to reflect
the amendments proposed herein to Options 7, Section 2(1) order book
pricing and Options 7, Section 2(5) PRISM pricing. The Exchange
believes this pricing will continue to attract liquidity to BX and
reward Participants differently for the order flow.
Request for PRISM
    With respect to Request for PRISM \17\ Pricing, today, in lieu of
Options 7, Section 2(5) pricing, different pricing is assessed and paid
to PRISM Auction Orders which commenced as a Request for PRISM pursuant
to Options 3, Section 7(e)(1)(A)(1)(b) and executed in the PRISM
Auction. With respect to PRISM Orders, today, a rebate of $0.35 per
contract for Penny Classes and $0.70 per contract for Non-Penny Classes
is paid to a PRISM Order when a BX Participant responds to a Request
for PRISM with an Initiating Order, provided the PRISM Order trades
with an Initiating Order. Also, today, a rebate of $0.35 per contract
for Penny Classes and $0.70 per contract for Non-Penny Classes is paid
to the PRISM Order when the PRISM Order trades with a PRISM Response.
This pricing is not being amended.
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    \17\ A Request for PRISM is a mechanism to submit orders into a
PRISM Auction as described within Options 3, Section
7(e)(1)(A)(1)(b). See BX Options 7, Section 2(5).
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    With respect to Initiating Orders, today, a fee of $0.49 per
contract for Penny Classes and $0.94 per contract fee for Non-Penny
Classes is assessed to the Initiating Order when a BX Participant
responds to a Request for PRISM with an Initiating Order, provided the
PRISM Order trades with an Initiating Order. This pricing is being
amended such that a fee of $0.50 per contract for Penny Classes and
$1.25 per contract fee for Non-Penny Classes will be assessed to the
Initiating Order when a BX Participant responds to a Request for PRISM
with an Initiating Order, provided the PRISM Order trades with an
Initiating Order.
    With respect to Responses to a PRISM Auction, today, Responses to a
PRISM Auction is assessed $0.49 per contract fee for Penny Classes and
a $0.94 per contract fee for Non-Penny Classes. This pricing is being
amended such that Responses to a PRISM Auction will be assessed $0.50
per contract fee for Penny Classes and a $1.25 per contract fee for
Non-Penny Classes.
    While the Exchange is increasing the pricing to Initiating Orders
and Responses to a PRISM Auction, the Exchange believes that this
pricing remains competitive and will continue to attract PRISM Auction
order flow to BX.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\18\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\19\ 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, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The proposed changes to its Pricing Schedule are reasonable in
several respects. As a threshold matter, the Exchange is subject to
significant competitive forces in the market for options transaction
services that constrain its pricing determinations in that market. The
fact that this market is competitive has long been recognized by the
courts. In NetCoalition v. Securities and Exchange Commission \20\
(``NetCoalition''), the D.C. Circuit stated, ``[n]o one disputes that
competition for order flow is `fierce.' . . . As the SEC explained,
`[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .'' \21\
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    \20\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \21\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
---------------------------------------------------------------------------

    Numerous indicia demonstrate the competitive nature of this market.
For example, clear substitutes to the Exchange exist in the market for
options transaction services. The Exchange is only one of seventeen
options exchanges to which market participants may direct their order
flow. Within this environment, market participants can freely and often
do shift their order flow among the Exchange and competing venues in
response to changes in their respective pricing schedules. Within the
foregoing context, the proposal represents a reasonable attempt by the
Exchange to attract additional order flow to the Exchange and increase
its market share relative to its competitors.
Options 7, Section 2(1)
    The Exchange's proposal to reduce the Lead Market Maker and Market
Maker Penny Symbol Maker Rebates and the Customer Penny Symbol Taker
Fee is reasonable. Despite the reduction of these Penny Symbol Maker
Rebates for Lead Market Makers and Market Makers, the Exchange will
continue to

offer these rebates to incentivize Participants to continue to direct
order flow to BX. The reduction of the Customer Penny Symbol Taker Fee
from $0.46 to $0.40 per contract will attract more Customer order flow
to BX to take advantage of the lower rate.
    The Exchange's proposal to reduce the Lead Market Maker and Market
Maker Penny Symbol Maker Rebates and the Customer Penny Symbol Taker
Fee is equitable and not unfairly discriminatory. With respect to the
amendments to the Lead Market Maker and Market Maker Penny Symbol Maker
Rebates, the Exchange notes that unlike other market participants, Lead
Market Makers and Market Makers add value through continuous quoting
and the commitment of capital.\22\ Further, differentiating Lead Market
Makers and Market Makers is equitable and not unfairly discriminatory
because Lead Market Makers are subject to heightened quoting
obligations \23\ as compared to Market Makers. The higher rebate
therefore recognizes the differing contributions made to the liquidity
and trading environment on the Exchange by Lead Market Makers. Overall,
the Exchange believes that incentivizing both Lead Market Makers and
Market Makers to provide greater liquidity benefits all market
participants through the quality of order interaction. The reduction of
the Customer Penny Symbol Taker Fee from $0.46 to $0.40 per contract is
equitable and not unfairly discriminatory because Customers will
continue to receive favorable pricing as compared to other market
participants because Customer liquidity enhances market quality on the
Exchange by providing more trading opportunities, which benefits all
market participants.
---------------------------------------------------------------------------

    \22\ See BX Options 2, Section 4.
    \23\ Id.
---------------------------------------------------------------------------

    The Exchange's proposal to increase \24\ the Customer Non-Penny
Symbol Maker Rebate and Non-Customer Non-Penny Symbol Taker Fees is
reasonable. Increasing the Customer Maker Rebate from $0.90 to $1.10
per contract will attract more Customer order flow to BX. With respect
to increasing the Taker Fees for all Non-Customers from $1.10 to $1.25
per contract, the Exchange believes that these fees will continue to
draw participants seeking liquidity to BX because BX is increasing its
Non-Penny Customer Maker Rebate to enhance its market quality and
provide more trading opportunities, which benefits all market
participants.
---------------------------------------------------------------------------

    \24\ The Exchange proposes to increase the Maker Rebates for
Customer from $0.90 to $1.10 per contract and increase the Taker
Fees for all Non-Customers from $1.10 to $1.25 per contract.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the Customer Non-Penny Symbol
Maker Rebate and Non-Customer Non-Penny Symbol Taker Fees is equitable
and not unfairly discriminatory. The increase in the Customer Non-Penny
Symbol Maker Rebate from $0.90 to $1.10 is equitable and not unfairly
discriminatory because Customers will continue to receive favorable
pricing as compared to other market participants because Customer
liquidity enhances market quality on the Exchange by providing more
trading opportunities, which benefits all market participants. The
increase in the Non-Penny Symbol Taker Fees for all Non-Customers from
$1.10 to $1.25 per contract, is equitable and not unfairly
discriminatory because the Exchange will uniformly assess the Non-Penny
Taker Fees to all Non-Customers.
    With respect to note 1 of Options 7, Section 2(1), the Exchange's
proposal to reduce the Customer Penny Symbol Taker Fee from the
proposed $0.40 per contract to $0.33 per contract for trades which
remove liquidity in SPY, the Exchange believes that this is reasonable
because note 1 will continue to attract Customer Penny Symbol SPY
transactions that remove liquidity as the Exchange will continue to
offer this discount, albeit a lesser discount as proposed. Also,
Customers will continue to receive favorable pricing in SPY as compared
to Non-Customers. Additionally, the Exchange's proposal to extend this
discount to Customer Penny Symbol transactions that remove liquidity in
QQQ and IWM will attract QQQ and IWM transactions that remove liquidity
to BX. In addition, the Exchange believes that it is reasonable to pay
lower fees in SPY, QQQ and IWM as compared to other options symbols
because the Exchange is seeking to incentivize greater order flow in
these highly liquid Penny Symbols which are subject to greater
competition among options exchanges. Finally, the Exchange's proposal
to reserve note 2 of Options 7, Section 2(1) is reasonable because the
Exchange would assess the Penny Symbol Maker Rebate for Lead Market
Makers and Market Makers in SPY, AAPL and QQQ the same fees as it
assesses to all other options symbols.
    With respect to note 1 of Options 7, Section 2(1), the Exchange's
proposal to reduce the Customer Penny Symbol Taker Fee from $0.40 to
$0.33 per contract for trades which remove liquidity in SPY and also
extend this discount to Customer Penny Symbol Taker Fees that remove
liquidity in QQQ and IWM is equitable and not unfairly discriminatory
because Customer liquidity enhances market quality on the Exchange by
providing more trading opportunities, which benefits all market
participants. Additionally, the Exchange will assess the lower Taker
Fee uniformly to all Customer Penny Symbol Taker Fees in SPY, QQQ and
IWM. Finally, the Exchange's proposal to reserve note 2 of Options 7,
Section 2(1) is equitable and not unfairly discriminatory because the
Exchange would pay the same Penny Symbol Maker Rebates to Lead Market
Makers and Market Makers for all other options symbols.
Options 7, Section 2(3)
    The Exchange's proposal to assess a Non-Customer an increased
routing fee of $1.20 to route to another options exchange and a
Customer a Fixed Fee of $0.23 per contract, in addition to the actual
transaction fee assessed by the away market, for routing contracts to
any options exchange \25\ is reasonable because the proposed Routing
Fees would enable the Exchange to recover the costs it incurs to route
orders to away markets after taking into account the other costs
associated with routing orders to other options exchanges. In
determining its proposed routing fees, the Exchange took into account
transaction fees assessed by other options exchanges, the Exchange's
projected clearing costs, and the projected administrative, regulatory,
and technical costs associated with routing orders to other options
exchanges. While the Exchange is no longer offering a discounted
Routing Fee to route to NOM and Phlx, the Exchange notes that the
Routing Fee will be $0.13 for these markets, similar to other options
markets, if they pay a rebate.\26\ Routing services offered by the
Exchange are completely optional and market participants can readily
select between various providers of routing services, including other
exchanges and broker-dealers. Also, the Exchange notes that market
participants may elect to mark their orders as ``Do Not Route'' to
avoid any routing fees.\27\
---------------------------------------------------------------------------

    \25\ The Exchange would no longer assess the lower routing of
$0.13 per contract, in addition to the actual transaction fee
assessed, when routing to NOM and Phlx.
    \26\ Both NOM and Phlx offer rebates. See NOM's Pricing Schedule
at Options 7, Section 2 and Phlx's Pricing Schedule at Options 7,
Sections 2 and 4.
    \27\ See BX Options 3, Section 7(c).
---------------------------------------------------------------------------

    The Exchange's proposal to assess a Non-Customer an increased
routing fee of $1.20 to route to another options exchange and a
Customer a Fixed Fee of $0.23 per contract, in addition to the actual
transaction fee assessed by the away market, for routing contracts to

any options exchange is equitable and not unfairly discriminatory as
all Non-Customers would be assessed a uniform routing fee.
Additionally, Customers will be uniformly assessed the same fee,
regardless of the destination market. Customers will continue to
receive favorable pricing as compared to other market participants
because Customer liquidity enhances market quality on the Exchange by
providing more trading opportunities, which benefits all market
participants. Finally, the Exchange notes that market participants may
elect to market orders as Do Not Route to avoid any routing fees.
Options 7, Section 2(4)
    The Exchange's proposal to amend its pricing related to execution
of contracts on BX that generate an order exposure alert is reasonable.
While the Exchange is increasing fees to respond to an order exposure
alert, it is also increasing rebates that trigger an order exposure
alert. The Exchange believes that this pricing will continue to provide
incentives to Participants to utilize the order exposure functionality
which facilitates the ability of the Exchange to bring together
participants and encourage more robust competition for orders. For
Penny Symbols and Non-Penny Symbols, increasing the Customer rebate for
orders triggering order exposure alert, and offering higher Customer
rebates as compared to Non-Customer rebates is reasonable because it
encourages the desired Customer behavior by attracting Customer
interest to the Exchange. Increasing the Customer, Lead Market Maker,
Market Maker, and Non-Customer fees for orders responding to order
exposure alerts in Penny Symbols and Non-Penny Symbols is reasonable
because the associated revenue will allow the Exchange to maintain and
enhance its services. Additionally, for Penny Symbols, Customers would
pay the lowest fee for responding to order exposure alert while all
Participants are assessed the same fee for Non-Penny Symbols.
    The Exchange's proposal to amend its pricing related to execution
of contracts on BX that generate an order exposure alert is equitable
and not unfairly discriminatory. Customers are being paid higher Penny
Symbol and Non-Penny Symbol rebates and lower Penny Symbols fees as
compared to Non-Customers because Customer activity enhances liquidity
on the Exchange for the benefit of all market participants and benefits
all market participants by providing more trading opportunities, which
attracts market makers. An increase in the activity of these market
participants in turn facilitates tighter spreads, which may cause an
additional corresponding increase in order flow from other market
participants. The Exchange also is assessing the same Non-Penny Symbol
fees uniformly to all Participants.
Options 7, Section 2(5)
    The Exchange's proposal to amend its PRISM pricing is reasonable
because the Exchange proposes to not assess an Initiating Order fee in
Penny and Non-Penny Classes. Today, the Exchange assesses no PRISM
Order fee to any Participant in Penny or Non-Penny Classes and assesses
Non-Customers a $0.05 per contract Initiating Order fee in Penny and
Non-Penny Classes. The Exchange proposes to continue to assess no PRISM
Order fee and also proposes to amend the Non-Customer Initiating Order
Fees from $0.05 to $0.00 per contract. Today, Customers are not
assessed an Initiating Order Fee in either Penny or Non-Penny Classes.
With this proposed change, no Participant will be assessed an
Initiating Order fee in Penny Classes and Non-Penny Classes. Further,
the Exchange proposes to pay a Non-Penny Class PRISM Order rebate to a
Customer of $0.12 per contract. The Exchange believes that the proposed
pricing will encourage BX Participants to submit a greater amount of
PRISM Orders to BX as the Exchange will not assess PRISM Order or
Initiating Order fees to any BX Participant and it will pay a Non-Penny
Class PRISM Order rebate to a Customer of $0.12 per contract. With
respect to a PRISM Response to a PRISM Auction the Exchange's proposal
to increase the $0.49 per contract fee for Penny Classes, which is
currently assessed to all Participants to $0.50 per contract and the
proposal to increase the $0.94 per contract fee for Non-Penny Classes,
which is currently assessed to all Participants, to $1.25 per contract
is reasonable because despite these increases, the Exchange believes
that the pricing will continue to encourage Participants to send order
to BX's PRISM Auction. Additionally, the proposed PRISM Response fees
would be equivalent to the Penny Symbol Taker Fees in Options 7,
Section 2(1) of $0.50 per contract for Lead Market Makers, BX Options
Market Makers and Non-Customers and $0.40 per contract for Customers.
Additionally, the proposed PRISM Response Fees would be equivalent to
the Non-Penny Symbol Taker Fees in Options 7, Section 2(1) of $1.25 per
contract for Lead Market Makers, BX Options Market Makers and Non-
Customers and $0.79 per contract for Customers. The Exchange's proposal
harmonizes the PRISM Response fees for Penny and Non-Penny Classes so
that they are the same as the Taker Fees assessed to each market
participant when they remove liquidity from the order book. The
Exchange believes that it is reasonable to assess Penny and Non-Penny
Class PRISM Response Fees that are equivalent to those Taker Fees
assessed to Participants for removing liquidity from the order book
because orders resting on the order book may respond to PRISM Auctions
similar to PRISM Responses entered during a PRISM Auction. The Exchange
believes that despite the increase in these PRISM Response Fees, the
fees remain competitive with the pricing to remove liquidity from the
order book.
    The Exchange's proposal to amend its PRISM pricing is equitable and
not unfairly discriminatory. The Exchange will uniformly not assess a
Penny Class or Non-Penny Class PRISM Order fee or Initiating Order Fee
to any Participant. While Customers will receive a Penny Symbol PRISM
Order rebate, the Exchange notes that Customer activity enhances
liquidity on the Exchange for the benefit of all market participants
and benefits all market participants by providing more trading
opportunities, which attracts market makers. The proposed PRISM
Response Fees would be equivalent to the Penny Symbol Taker Fees in
Options 7, Section 2(1) of $0.50 per contract for Lead Market Makers,
Market Makers and Non-Customers and $0.40 per contract for Customers.
Additionally, the proposed PRISM Response Fees would be equivalent to
the Non-Penny Symbol Taker Fees in Options 7, Section 2(1) of $1.25 per
contract for Lead Market Makers, Market Makers and Non-Customers and
$0.79 per contract for Customers. Assessing Customers a lower Response
Fee as compared to Non-Customers is equitable and not unfairly
discriminatory because Customer activity enhances liquidity on the
Exchange for the benefit of all market participants and benefits all
market participants by providing more trading opportunities, which
attracts market makers. Further, assessing no fee to the Initiating
Order and assessing Response Fees as described above to Participants
that respond to the PRISM Auction is equitable and not unfairly
discriminatory because the Exchange desires to encourage Participants
to submit PRISM Orders to BX. Responders, similar to Participants that
remove liquidity from the order book, may interact with the PRISM Order
and receive an allocation. Of note, any BX Participant may respond to a
PRISM

Auction. Similar to the manner in which the Exchange assesses fees to
takers of liquidity in Options 7, Section 2(1), Participants who remove
liquidity are assessed fees to interact with the liquidity. The
Exchange incentivizes Participants that add liquidity on our markets by
assessing lower fees and/or rebates to encourage order flow to be sent
to BX. The Exchange believes that creating a similar model to encourage
Participants to bring two-sided orders into the PRISM Auction and
assessing higher fees for the Participants that interact with those
orders is equitable and not unfairly discriminatory as well as
consistent with the fee structure in place on BX today. Finally, BX
Participants may elect not to utilize the PRISM Auction and only
transact options on the order book, in which case they would not incur
the Responder Fees.

Unrelated Market or Marketable Interest

    The Exchange's proposal to amend the unrelated market or marketable
interest rule text in Options 7, Section 2(5) to reflect the proposed
changes to Options 7, Section 2(1) order book pricing and Options 7,
Section 2(5) PRISM pricing is reasonable because the Exchange seeks to
incentivize Participants to submit PRISM Auction Orders to receive a
guaranteed execution, potential price improvement, and Customer
rebates. The Exchange's PRISM pricing assesses fees to PRISM Responses
and unrelated market or marketable interest that allocated in the PRISM
Auction and rewards those BX Participants with a guaranteed execution
and potential price improvement. The response fees assessed by the
Exchange are intended to fund the Customer rebates paid by the Exchange
which seek to incentivize increased Customer order flow to the PRISM
Auction. While the Exchange's proposal increases these fees, the
Exchange believes this pricing will continue to attract liquidity to BX
and reward Participants differently for the order flow.
    The Exchange's proposal to amend the unrelated market or marketable
interest rule text in Options 7, Section 2(5) to reflect the proposed
changes to Options 7, Section 2(1) order book pricing and Options 7,
Section 2(5) PRISM pricing is equitable and not unfairly
discriminatory. All BX Participants who submitted unrelated market or
marketable interest which rested on the order book prior to the
commencement of a PRISM Auction will be uniformly paid a Maker Rebate.
The Exchange's proposal would treat BX Participants who submitted
unrelated market or marketable interest which rested on the order book
prior to the commencement of a PRISM Auction in the same manner as
other BX Participants who posted liquidity on the order book as they
would both be considered makers of liquidity. Further, all Participants
who submitted a PRISM Order that executed against the unrelated market
or marketable interest that posted to the order book prior to the
commencement of a PRISM Auction would be uniformly assessed a Taker
Fee. The Exchange's proposal would treat BX Participants who submitted
PRISM Order that executed against the unrelated market or marketable
interest that posted to the order book prior to the commencement of a
PRISM Auction in the same manner as other BX Participants who removed
liquidity from the order book as they would both be considered takers
of liquidity.
Request for PRISM
    The Exchange's proposal to amend pricing for PRISM Orders submitted
via a Request for PRISM is reasonable. While the Exchange is increasing
the Initiating order fees in Penny and Non-Penny Classes as well as the
Responses to a PRISM Auction in Penny and Non-Penny Classes, the
Exchange believes that this pricing will continue to incentivize BX
Participants to utilize the Request for PRISM feature to obtain
liquidity, potential price improvement, as well as a rebate for the
PRISM Order. Further, the Exchange notes that it will continue to offer
certain rebates to attract BX Participants to utilize the Request for
PRISM mechanism. Further, the Exchange believes it is reasonable to
assess a higher fee for the Initiating Order that was submitted with
the Request for PRISM mechanism, where fees are the same as those
assessed to responders in the PRISM Auction, because BX Participants
are able to obtain immediate liquidity. The Request for PRISM mechanism
is utilized by Participants as a liquidity seeking tool that if not
available would require a BX Participant to source liquidity from third
parties, expending time and potential additional cost. The Request for
PRISM mechanism offers Participants the opportunity to immediately
commence a PRISM Auction without the need to source liquidity.
Liquidity providers that enter orders directly into PRISM and do not
utilize the Request for PRISM mechanism have expended time sourcing
liquidity with third parties outside of the Exchange. The Exchange
believes that BX Participants benefit from the liquidity seeking
mechanism that is being offered by the Exchange to allow certain market
participants to compete with other market participants whose business
model is designed to source liquidity. The proposed fee for Initiating
Orders who respond to a Request for PRISM, when the PRISM Order trades
with an Initiating Order, would enable the Exchange to offer rebates to
BX Participants submitting PRISM Orders into the Request for PRISM
mechanism. The Exchange believes the fees for responders are reasonable
because responders to a PRISM Auction would pay the same fee of $0.50
per contract fee for Penny Classes and $1.25 per contract fee for Non-
Penny Classes regardless of whether the Request for PRISM mechanism was
utilized to initiate a PRISM Auction or the PRISM Auction Order was
entered directly into PRISM as a paired order.
    The Exchange's proposal to amend pricing for PRISM Orders submitted
via a Request for PRISM is equitable and not unfairly discriminatory
because any BX Participant may utilize the Request for PRISM feature.
Also, any BX Participant may respond to a PRISM Auction and all BX
Participants benefit from the ability to interact with additional order
flow.\28\ The Request for PRISM mechanism provides greater flexibility
for Participants submitting orders into PRISM, specifically providing
an avenue for BX Participants desiring to send orders to the PRISM
mechanism to locate an Initiating Order to pair their PRISM Order with
and participate in a PRISM Auction. All Participants that enter a PRISM
Order into the Request for PRISM mechanism are uniformly entitled to a
rebate if the PRISM Order trades with the Initiating Order or if the
PRISM Order trades with a PRISM Response. Also, all Participants that
enter Initiating Orders into the Request for PRISM mechanism are
uniformly assessed a fee provided the PRISM Order trades with the
Initiating Order. The proposed fees for an Initiating Order entered
into the Request for PRISM mechanism that trade with a PRISM Response
are equivalent to the pricing for responders pursuant to Options 7,
Section 2(5) because BX Participants benefit from the liquidity seeking
mechanism that is being offered. The mechanism allows certain market
participants to compete with other market participants whose business
model is designed to source liquidity.
---------------------------------------------------------------------------

    \28\ The identity of the sender and the recipients are not known
to any party.

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

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Intermarket Competition
    The proposal does not impose an undue burden on inter-market
competition. The Exchange believes its proposal remains competitive
with other options markets and will offer market participants with
another choice to initiate a price improvement auction. The Exchange
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, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees to remain competitive
with other exchanges. Because competitors are free to modify their own
fees in response, and because market participants may readily adjust
their order routing practices, the Exchange believes that the degree to
which fee changes in this market may impose any burden on competition
is extremely limited.
Intramarket Competition
Options 7, Section 2(1)
    The Exchange's proposal to reduce certain Penny Symbol Maker
Rebates and Taker Fees and increase certain Non-Penny Symbol Maker
Rebates and Taker Fees does not impose an undue burden on competition.
With respect to the amendments to the Lead Market Maker and Market
Maker Penny Symbol Maker Rebates, the Exchange notes that unlike other
market participants, Lead Market Makers and Market Makers add value
through continuous quoting and the commitment of capital.\29\ Further,
differentiating Lead Market Makers and Market Makers is equitable and
not unfairly discriminatory because Lead Market Makers are subject to
heightened quoting obligations \30\ as compared to Market Makers. The
higher rebate therefore recognizes the differing contributions made to
the liquidity and trading environment on the Exchange by Lead Market
Makers. Overall, the Exchange believes that incentivizing both Lead
Market Makers and Market Makers to provide greater liquidity benefits
all market participants through the quality of order interaction. The
reduction of the Customer Penny Symbol Taker Fee from $0.46 to $0.40
per contract and the increase in the Non-Penny Symbol Maker Rebates for
Customers from $0.90 to $1.10 does not impose an undue burden on
competition because Customers will continue to receive favorable
pricing as compared to other market participants because Customer
liquidity enhances market quality on the Exchange by providing more
trading opportunities, which benefits all market participants. The
Exchange's proposal to increase the Non-Penny Symbol Taker Fees for all
Non-Customers from $1.10 to $1.25 per contract does not impose an undue
burden on competition because the Exchange will uniformly assess the
Non-Penny Taker Fees to all Non-Customers.
---------------------------------------------------------------------------

    \29\ See BX Options 2, Section 4.
    \30\ Id.
---------------------------------------------------------------------------

    With respect to note 1 of Options 7, Section 2(1), the Exchange's
proposal to reduce the Customer Penny Symbol Taker Fee from $0.40 to
$0.33 per contract for trades which remove liquidity in SPY and also
extend this discount to Customer Penny Symbol Taker Fees that remove
liquidity in QQQ and IWM does not impose an undue burden on competition
because Customer liquidity enhances market quality on the Exchange by
providing more trading opportunities, which benefits all market
participants. Additionally, the Exchange will assess the lower Taker
Fee uniformly to all Customer Penny Symbol Taker Fees in SPY, QQQ and
IWM. Finally, the Exchange's proposal to reserve note 2 of Options 7,
Section 2(1) does not impose an undue burden on competition because the
Exchange would pay the same Penny Symbol Maker Rebates to Lead Market
Makers and Market Makers for all other options symbols.
Options 7, Section 2(3)
    The Exchange's proposal to assess a Non-Customer an increased
routing fee of $1.20 to route to another options exchange and a
Customer a Fixed Fee of $0.23 per contract, in addition to the actual
transaction fee assessed by the away market, for routing contracts to
any options exchange does not impose an undue burden on competition
because all Non-Customers would be assessed a uniform routing fee.
Additionally, all Customers will be uniformly assessed the same fee,
regardless of the destination market. Customers will continue to
receive favorable pricing as compared to other market participants
because Customer liquidity enhances market quality on the Exchange by
providing more trading opportunities, which benefits all market
participants. Finally, the Exchange notes that market participants may
elect to market orders as Do Not Route to avoid any routing fees.
Options 7, Section 2(4)
    The Exchange's proposal to amend its pricing related to execution
of contracts on BX that generate an order exposure alert does not
impose an undue burden on competition. Customers are being paid higher
Penny Symbol and Non-Penny Symbol rebates and lower Penny Symbols fees
as compared to Non-Customers because Customer activity enhances
liquidity on the Exchange for the benefit of all market participants
and benefits all market participants by providing more trading
opportunities, which attracts market makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The Exchange also is assessing the
same Non-Penny Symbol fees uniformly to all Participants.
Options 7, Section 2(5)
    The Exchange's proposal to amend its PRISM pricing does not impose
an undue burden on competition. The Exchange will uniformly not assess
a Penny Class or Non-Penny Class PRISM Order fee or Initiating Order
Fee to any Participant. While Customers will receive a Penny Symbol
PRISM Order rebate, the Exchange notes that Customer activity enhances
liquidity on the Exchange for the benefit of all market participants
and benefits all market participants by providing more trading
opportunities, which attracts market makers. Additionally, the Exchange
will uniformly assess the PRISM Response fee to all Participants. The
proposed PRISM Response Fees would be equivalent to the Penny Symbol
Taker Fees in Options 7, Section 2(1) of $0.50 per contract for Lead
Market Makers, Market Makers and Non-Customers and $0.40 per contract
for Customers. Additionally, the proposed PRISM Response Fees would be
equivalent to the Non-Penny Symbol Taker Fees in Options 7, Section
2(1) of $1.25 per contract for Lead Market Makers, Market Makers and
Non-Customers and $0.79 per contract for Customers. Assessing Customers
a lower Response Fee as compared to Non-Customers is equitable and not
unfairly discriminatory because Customer activity enhances liquidity on
the Exchange for the benefit of all market participants and benefits
all market participants by providing more trading opportunities, which
attracts market makers. Further, assessing no fee

to the Initiating Order and assessing Response Fees as described above
to Participants that respond to the PRISM Auction is equitable and not
unfairly discriminatory because the Exchange desires to encourage
Participants to submit PRISM Orders to BX. Responders, similar to
Participants that remove liquidity from the order book, may interact
with the PRISM Order and receive an allocation. Of note, any BX
Participant may respond to a PRISM Auction. Similar to the manner in
which the Exchange assesses fees to takers of liquidity in Options 7,
Section 2(1), Participants who remove liquidity are assessed fees to
interact with the liquidity. The Exchange incentivizes Participants
that add liquidity on our markets by assessing lower fees and/or
rebates to encourage order flow to be sent to BX. The Exchange believes
that creating a similar model to encourage Participants to bring two-
sided orders into the PRISM Auction and assessing higher fees for the
Participants that interact with those orders is equitable and not
unfairly discriminatory as well as consistent with the fee structure in
place on BX today. Finally, BX Participants may elect not to utilize
the PRISM Auction and only transact options on the order book, in which
case they would not incur the Responder Fees.
Unrelated Market or Marketable Interest
    The Exchange's proposal to amend the unrelated market or marketable
interest rule text in Options 7, Section 2(5) to reflect the proposed
changes to Options 7, Section 2(1) order book pricing and Options 7,
Section 2(5) PRISM pricing does not impose an undue burden on
competition. All BX Participants who submitted unrelated market or
marketable interest which rested on the order book prior to the
commencement of a PRISM Auction will be uniformly paid a Maker Rebate.
The Exchange's proposal would treat BX Participants who submitted
unrelated market or marketable interest which rested on the order book
prior to the commencement of a PRISM Auction in the same manner as
other BX Participants who posted liquidity on the order book as they
would both be considered makers of liquidity. Further, all Participants
who submitted a PRISM Order that executed against the unrelated market
or marketable interest that posted to the order book prior to the
commencement of a PRISM Auction would be uniformly assessed a Taker
Fee. The Exchange's proposal would treat BX Participants who submitted
PRISM Order that executed against the unrelated market or marketable
interest that posted to the order book prior to the commencement of a
PRISM Auction in the same manner as other BX Participants who removed
liquidity from the order book as they would both be considered takers
of liquidity.
Request for PRISM
    The Exchange's proposal to amend pricing for PRISM Orders submitted
via a Request for PRISM does not impose an undue burden on competition
because any BX Participant may utilize the Request for PRISM feature.
Also, any BX Participant may respond to a PRISM Auction and all BX
Participants benefit from the ability to interact with additional order
flow.\31\ The Request for PRISM mechanism provides greater flexibility
for Participants submitting orders into PRISM, specifically providing
an avenue for BX Participants desiring to send orders to the PRISM
mechanism to locate an Initiating Order to pair their PRISM Order with
and participate in a PRISM Auction. All Participants that enter a PRISM
Order into the Request for PRISM mechanism are uniformly entitled to a
rebate if the PRISM Order trades with the Initiating Order or if the
PRISM Order trades with a PRISM Response. Also, all Participants that
enter Initiating Orders into the Request for PRISM mechanism are
uniformly assessed a fee provided the PRISM Order trades with the
Initiating Order. The proposed fees for an Initiating Order entered
into the Request for PRISM mechanism that trade with a PRISM Response
are equivalent to the pricing for responders pursuant to Options 7,
Section 2(5) because BX Participants benefit from the liquidity seeking
mechanism that is being offered. The mechanism allows certain market
participants to compete with other market participants whose business
model is designed to source liquidity.
---------------------------------------------------------------------------

    \31\ The identity of the sender and the recipients are not known
to any party.
---------------------------------------------------------------------------

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\32\
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
file number SR-BX-2023-031 on the subject line.

Paper Comments

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

All submissions should refer to file number SR-BX-2023-031. 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 (https://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
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. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication

submitted material that is obscene or subject to copyright protection.
All submissions should refer to file number SR-BX-2023-031 and should
be submitted on or before December 19, 2023.
---------------------------------------------------------------------------

    \33\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
Christina Z. Milnor,
Assistant Secretary.
[FR Doc. 2023-26112 Filed 11-27-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 178 (Thursday, September 15, 2022)]
[Rules and Regulations]
[Pages 56576-56578]
[FR Doc No: 2022-19810]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-0689; Project Identifier MCAI-2022-00215-T;
Amendment 39-22160; AD 2022-18-09]
RIN 2120-AA64

Airworthiness Directives; Airbus SAS Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: The FAA is superseding Airworthiness Directive (AD) 2019-26-
11, which applied to certain Airbus SAS Model A319-112, -115, and -132;
A320-214, -216, -232, -233, -251N, and -271N; and A321-211, -231, -232,
-251N, and -253N airplanes; and AD 2021-23-15, which applied to certain
Airbus SAS Model A319-111, -112, -113, -114, -115, -131, -132, and -
133; A320-211, -212, -214, -216, -231, -232, and -233; and A321-111, -
112, -131, -211, -212, -213, -231, and -232 airplanes. AD 2019-26-11
required replacing the affected bumpers with serviceable bumpers. AD
2021-23-15 required modifying the waste compartment door of each
affected galley. This AD was prompted by reports that the waste
compartment door opened prematurely during a test, that container/
galley end stop bumpers were damaged in service, and that additional
airplanes are subject to the unsafe conditions described in those ADs.
This AD continues to require the actions in AD 2019-26-11 and AD 2021-
23-15, and adds airplanes to the applicability; as specified in a
European Union Aviation Safety Agency (EASA) AD, which is incorporated
by reference. The FAA is issuing this AD to address the unsafe
condition on these products.

DATES: This AD is effective October 20, 2022.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of October 20,
2022.

ADDRESSES: For material incorporated by reference (IBR) in this AD,
contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone
+49 221 8999 000; email [email protected]; internet
www.easa.europa.eu. You may find this IBR material on the EASA website
at https://ad.easa.europa.eu. You may view this material at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available in the AD
docket at https://www.regulations.gov by searching for and locating
Docket No. FAA-2022-0689.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2022-0689; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this final rule, the
mandatory continuing airworthiness information (MCAI), any comments
received, and other information. The address for Docket Operations is
U.S. Department of Transportation, Docket Operations, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Vladimir Ulyanov, Aerospace Engineer,
Large Aircraft Section, FAA, International Validation Branch, 2200
South 216th St., Des Moines, WA 98198; telephone<PHONE_NUMBER>; email
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2022-0026, dated February 16, 2022
(EASA AD 2022-0026) (also referred to as the MCAI), to correct an
unsafe condition for certain Airbus SAS Model A319-111, A319-112, A319-
113, A319-114, A319-115, A319-131, A319-132, A319-133, A320-211, A320-
212, A320-214, A320-215, A320-216, A320-231, A320-

232, A320-233, A320-251N, A320-271N, A321-111, A321-112, A321-131,
A321-211, A321-212, A321-213, A321-231, A321-232, A321-251N and A321-
253N airplanes. Model A320-215 airplanes are not certificated by the
FAA and are not included on the U.S. type certificate data sheet; this
AD therefore does not include those airplanes in the applicability.
    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 to supersede AD 2019-26-11, Amendment 39-21022 (85 FR 6755,
February 6, 2020) (AD 2019-26-11), which applied to certain Airbus SAS
Model A319-112, A319-115, A319-132, A320-214, A320-216, A320-232, A320-
233, A320-251N, A320-271N, A321-211, A321-231, A321-232, A321-251N, and
A321-253N airplanes; and AD 2021-23-15, Amendment 39-21813 (86 FR
68894, December 6, 2021) (AD 2021-23-15), which applied to certain
Airbus SAS Model A319-111, -112, -113, -114, -115, -131, -132, and -133
airplanes; Model A320-211, -212, -214, -216, -231, -232, and -233
airplanes; and Model A321-111, -112, -131, -211, -212, -213, -231, and
-232 airplanes. The NPRM published in the Federal Register on June 21,
2022 (87 FR 36778). The NPRM was prompted by a report that during re-
engineering of galley G5, a 9G forward full scale qualification test
was performed, and the door of the waste compartment opened before the
required load was reached, and by reports of finding container/galley
end stop bumpers damaged in service. The NPRM was also prompted by the
determination that additional airplanes are subject to the unsafe
condition. The NPRM proposed to continue to require the actions in AD
2019-26-11 and AD 2021-23-15, and to add airplanes to the
applicability, as specified in EASA AD 2022-0026.
    The FAA is issuing this AD to address potential failure of the
galley door and release of waste bins during a rejected take-off or an
emergency landing, and potential container detachment from the galley
under certain forward loading conditions, possibly resulting in damage
to the airplane and injury to occupants. See the MCAI for additional
background information.

Discussion of Final Airworthiness Directive

Comments

    The FAA received a comment from the Air Line Pilots Association,
International (ALPA), who supported the NPRM without change.

Conclusion

    The FAA reviewed the relevant data, considered the comment
received, and determined that air safety requires adopting this AD as
proposed. Except for minor editorial changes, this AD is adopted as
proposed in the NPRM. None of the changes will increase the economic
burden on any operator. Accordingly, the FAA is issuing this AD to
address the unsafe condition on these products.

Related Service Information Under 1 CFR Part 51

    EASA AD 2022-0026 specifies procedures for modifying the affected
galleys by replacing the affected bumpers with serviceable bumpers; for
modifying the waste compartment door of each affected galley by
installing a door catch bracket and a new striker, and for re-
identifying the affected galleys. This material is reasonably available
because the interested parties have access to it through their normal
course of business or by the means identified in the ADDRESSES section.

Costs of Compliance

    The FAA estimates that this AD affects 1,507 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
            Action                    Labor cost          Parts cost       Cost per  product        operators
----------------------------------------------------------------------------------------------------------------
Retained actions from AD 2019-  Up to 54 work-hours x               $0  Up to $4,590..........  Up to
 26-11 (274 airplanes).          $85 per hour = Up to                                            $1,257,660.
                                 $4,590.
Retained actions from AD 2021-  5 work-hours x $85 per               0  $425..................  $59,925.
 23-15 (141 airplanes).          hour = $425.
New actions (Up to 1,092        Up to 59 work-hours x                0  Up to $5,105..........  Up to
 airplanes).                     $85 per hour = Up to                                            $5,476,380.
                                 $5,105.
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some or all of the costs of this AD
may be covered under warranty, thereby reducing the cost impact on
affected individuals. The FAA does not control warranty coverage for
affected individuals. As a result, the FAA has included all known costs
in the cost estimate.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

The Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive (AD) 2019-26-11, Amendment 39-21022
(85 FR 6755, February 6, 2020); and AD 2021-23-15, Amendment 39-21813
(86 FR 68894, December 6, 2021); and
0
b. Adding the following new AD:

2022-18-09 Airbus SAS: Amendment 39-22160; Docket No. FAA-2022-0689;
Project Identifier MCAI-2022-00215-T.

(a) Effective Date

    This airworthiness directive (AD) is effective October 20, 2022.

(b) Affected ADs

    This AD replaces AD 2019-26-11, Amendment 39-21022 (85 FR 6755,
February 6, 2020) (AD 2019-26-11); and AD 2021-23-15, Amendment 39-
21813 (86 FR 68894, December 6, 2021) (AD 2021-23-15).

(c) Applicability

    This AD applies to the Airbus SAS airplanes specified in
paragraphs (c)(1) through (3) of this AD, certificated in any
category, as identified in European Union Aviation Safety Agency
(EASA) AD 2022-0026, dated February 16, 2022 (EASA AD 2022-0026).
    (1) Model A319-111, -112, -113, -114, -115, -131, -132, and -133
airplanes.
    (2) Model A320-211, -212, -214, -216, -231, -232, -233, -251N,
and -271N airplanes.
    (3) Model A321-111, -112, -131, -211, -212, -213, -231, -232, -
251N, and -253N airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 25, Equipment/
Furnishings.

(e) Unsafe Condition

    This AD was prompted by a report that during re-engineering of
galley G5, a 9G forward full scale qualification test was performed,
and the door of the waste compartment opened before the required
load was reached, and by reports of finding container/galley end
stop bumpers damaged in service. This AD was also prompted by the
determination that additional airplanes are subject to the unsafe
condition. The FAA is issuing this AD to address potential failure
of the galley door and release of waste bins during a rejected take-
off or an emergency landing, and potential container detachment from
the galley under certain forward loading conditions, possibly
resulting in damage to the airplane and injury to occupants.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2022-0026.

(h) Exceptions to EASA AD 2022-0026

    (1) Where EASA AD 2022-0026 refers to December 11, 2018 (the
effective date of EASA AD 2018-0255), this AD requires using January
10, 2022 (the effective date of AD 2021-23-15).
    (2) Where EASA AD 2022-0026 refers to May 29, 2019 (the
effective date of EASA AD 2019-0106), this AD requires using March
12, 2020 (the effective date of AD 2019-26-11).
    (3) Where EASA AD 2022-0026 refers to its effective date, this
AD requires using the effective date of this AD.
    (4) The ``Remarks'' section of EASA AD 2022-0026 does not apply
to this AD.

(i) Additional AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Large Aircraft Section, International Validation Branch, FAA, has
the authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or responsible Flight
Standards Office, as appropriate. If sending information directly to
the Large Aircraft Section, International Validation Branch, send it
to the attention of the person identified in paragraph (j) of this
AD. Information may be emailed to: [email protected].
Before using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, Large Aircraft
Section, International Validation Branch, FAA; or EASA; or Airbus
SAS's EASA Design Organization Approval (DOA). If approved by the
DOA, the approval must include the DOA-authorized signature.
    (3) Required for Compliance (RC): Except as required by
paragraph (i)(2) of this AD, if any service information contains
procedures or tests that are identified as RC, those procedures and
tests must be done to comply with this AD; any procedures or tests
that are not identified as RC are recommended. Those procedures and
tests that are not identified as RC may be deviated from using
accepted methods in accordance with the operator's maintenance or
inspection program without obtaining approval of an AMOC, provided
the procedures and tests identified as RC can be done and the
airplane can be put back in an airworthy condition. Any
substitutions or changes to procedures or tests identified as RC
require approval of an AMOC.

(j) Related Information

    For more information about this AD, contact Vladimir Ulyanov,
Aerospace Engineer, Large Aircraft Section, FAA, International
Validation Branch, 2200 South 216th St., Des Moines, WA 98198;
telephone<PHONE_NUMBER>; email [email protected].

(k) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) European Union Aviation Safety Agency (EASA) AD 2022-0026,
dated February 16, 2022.
    (ii) [Reserved]
    (3) For EASA AD 2022-0026, contact EASA, Konrad-Adenauer-Ufer 3,
50668 Cologne, Germany; telephone +49 221 8999 000; email
[email protected]; internet www.easa.europa.eu. You may find this
EASA AD on the EASA website at https://ad.easa.europa.eu.
    (4) You may view this material at the FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St.,
Des Moines, WA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>.
    (5) You may view this material that is incorporated by reference
at the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, email
[email protected], or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on August 19, 2022.
Christina Underwood,
Acting Director, Compliance & Airworthiness Division, Aircraft
Certification Service.
[FR Doc. 2022-19810 Filed 9-14-22; 8:45 am]
BILLING CODE 4910-13-P


MEMORANDUM

DATE:                  12/1/14

FROM:                 Ken Mitchell/EPA Region 4

TO:                       Clean Power Plan for Existing Power Plants; Docket Id: OAR - 2013-0602

SUBJECT:            Discussion of the Clean Power Plan with Florida Department of Environmental Protection

SUMMARY:         THE EPA OFFICE OF ATMOSPHERIC PROGRAMS provided information on the Clean Power Plan to the  Florida Department of Environmental Protection on August 27, 2014. The Clean Power Plan for  Existing Power Plants was proposed on June 2, 2014.   ATTENDEES:

EPA Erich Eschmann/EPA OAP

External Stakeholders Cindy Mulkey/FL DEP


[Federal Register Volume 88, Number 20 (Tuesday, January 31, 2023)]
[Notices]
[Pages 6357-6358]
[FR Doc No: 2023-01863]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Intent of Waiver/Release With Respect to Land;
Lakefield Airport, Celina, Ohio

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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

SUMMARY: The FAA is considering a proposal to change approximately 7.07
acres of airport land from aeronautical use to non-aeronautical use and
to authorize the sale of this airport property located at Lakefield
Airport, Celina, Ohio. The aforementioned land is not needed for
aeronautical use. The subject properties, airport parcels 11a and 13a,
are bound on the south side by the south line of the southwest quarter
of section 30, on the west by existing industrial parcels and the
Franklin Drive right-of-way, and on the north and east by airport
property. Currently parcel #11a is a maintained turf field and parcel
#13a is being utilized as farmland. The airport is proposing the
release and sale of this land for non-aeronautical development.

DATES: Comments must be received on or before March 2, 2023.

ADDRESSES: Documents are available for review by appointment at the FAA
Detroit Airports District Office, Mr. Delvin Lewis, Program Manager,
11677 S Wayne Road, Ste. 107, Romulus, MI 48174, Telephone: (734) 229-
2900/Fax:<PHONE_NUMBER> and Mr. Gary Lefeld, Lakefield Airport
Authority Board President, Lakefield Airport, Attention Kim Everman,
Administrator--Mercer County Commissioners, 220 W Livingston Street,
Room A201, Celina, Ohio, 45822. Telephone:<PHONE_NUMBER>.
    Written comments on the Sponsor's request must be delivered or
mailed to: Delvin Lewis, Program Manager, Federal Aviation
Administration, Detroit Airports District Office, 11677 S Wayne Road,
Ste. 107, Romulus, MI 48174, Telephone Number:<PHONE_NUMBER>/FAX
Number:<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Delvin Lewis, Program Manager, Federal
Aviation Administration, Detroit Airports District Office, 11677 S
Wayne Road, Ste. 107, Romulus, MI 48174. Telephone Number: (734) 229-
2922/FAX Number:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In accordance with section 47107(h) of title
49, United States Code, this notice is required to be published in the
Federal Register 30 days before modifying the land-use assurance that
requires the property to be used for an aeronautical purpose.
    The properties are vacant and have no existing aeronautical use.
Parcel #11 received Federal reimbursement through Airport Improvement
Program (AIP) grant #3-39-0016-014-2011, and Parcel #13 received
Federal reimbursement through AIP grant #3-39-0016-005-2002. The
sponsor proposes to sell the parcels to non-aviation businesses in an
industrial park located adjacent to the subject parcels to expand their
existing operations. The sponsor will receive fair market value for the
sale of these properties.
    The disposition of proceeds from the release of the airport
property will be in accordance with FAA's Policy and Procedures
Concerning the Use of Airport Revenue, published in the Federal
Register on February 16, 1999 (64 FR 7696).
    This notice announces that the FAA is considering the release of
the subject

airport properties at the Lakefield Airport located in Celina, Ohio
from its obligations to be maintained for aeronautical purposes.
Approval does not constitute a commitment by the FAA to financially
assist in the change in use of the subject airport property nor a
determination of eligibility for grant-in-aid funding from the FAA.

Legal Description

Parcel 11a--3.489 Acres

    Being part of a 35.58 acres tract as recorded in Deed Volume 208
Page 153 in the Southwest Quarter of Section 30, Town 6 South, Range 3
East, Franklin Township, Mercer County, Ohio, and described as follows:
    Commencing at an Iron Pin Found marking the Southwest corner of
Section 30;
    Thence North 89[deg]50'30'' East along the South line of the
Southwest Quarter of Section 30, a distance of one thousand eight
hundred thirty-eight and seventy-nine hundredths feet (1838.79') to an
Iron Pin Found, marking the TRUE POINT OF BEGINNING;
    Thence North 00[deg]04'57'' West along the East line of tracts as
recorded in Instrument #202000006905, Instrument #201900000583 and
Franklin Drive right-of-way, a distance of seven hundred seventy and
zero hundredths feet (770.00') to an Iron Pin Found;
    Thence North 89[deg]50'30'' East a distance of one hundred ninety-
seven and forty-three hundredths feet (197.43') to an Iron Pin Found;
    Thence South 00[deg]04'40'' East a distance of seven hundred
seventy and zero hundredths feet (770.00') to an Iron Pin Found;
    Thence South 89[deg]50'30'' West along the South line of the
Southwest Quarter of Section 30 a distance of one hundred ninety-seven
and thirty-six hundredths feet (197.36') to the TRUE POINT OF
BEGINNING, containing 3.489 acres of land more or less.
    Said tract to be subject to all highways and any other easements or
restrictions of record.

Parcel 13a--3.581 Acres

    Being part of a 28.6 acres tract as recorded in Instrument
#200300002194 in the Southwest Quarter of Section 30, Town 6 South,
Range 3 East, Franklin Township, Mercer County, Ohio, and described as
follows:
    Commencing at an Iron Pin Found marking the Southwest corner of
Section 30;
    Thence North 89[deg]50'30'' East along the South line of the
Southwest Quarter of Section 30, a distance of two thousand thirty-six
and fifteen hundredths feet (2036.15') to an Iron Pin Found, marking
the TRUE POINT OF BEGINNING;
    Thence North 00[deg]04'40'' West along the East line of a tract as
recorded in Deed Volume 208 Page 153, a distance of seven hundred
seventy and zero hundredths feet (770.00') to an Iron Pin Set;
    Thence North 89[deg]50'30'' East a distance of two hundred two and
fifty-seven hundredths feet (202.57') to an Iron Pin Set;
    Thence South 00[deg]04'57'' East a distance of seven hundred
seventy and zero hundredths feet (770.00') to an Iron Pin Set;
    Thence South 89[deg]50'30'' West along the South line of the
Southwest Quarter of Section 30 a distance of two hundred two and
sixty-four hundredths feet (202.64') to the TRUE POINT OF BEGINNING,
containing 3.581 acres of land more or less.
    Said tract to be subject to all highways and any other easements or
restrictions of record.

    Issued in Romulus, Michigan, on January 25, 2023.
John L. Mayfield Jr.,
Manager, Detroit Airports District Office, FAA, Great Lakes Region.
[FR Doc. 2023-01863 Filed 1-30-23; 8:45 am]
BILLING CODE 4910-13-P