[Federal Register Volume 84, Number 232 (Tuesday, December 3, 2019)]
[Notices]
[Pages 66245-66248]
[FR Doc No: 2019-26056]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87629; File No. SR-CboeBZX-2019-086]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.;
Suspension of and Order Instituting Proceedings To Determine Whether To
Approve or Disapprove a Proposed Rule Change To Introduce a Small
Retail Broker Distribution Program

November 26, 2019.

I. Introduction

    On October 1, 2019, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend the BZX fee schedule to introduce a Small
Retail Broker Distribution Program (the ``Program''). The proposed rule
change was immediately effective upon filing with the Commission
pursuant to Section 19(b)(3)(A) of the Act.\3\ The proposed rule change
was published for comment in the Federal Register on October 21,
2019.\4\ The Commission received no comment letters regarding the
proposed rule change. Under Section 19(b)(3)(C) of the Act,\5\ the
Commission is hereby: (i) Temporarily suspending the proposed rule
change; and (ii) instituting proceedings to determine whether to
approve or disapprove the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ See Securities Exchange Act Release No. 87312 (October 15,
2019), 84 FR 56235 (``Notice'').
    \5\ 15 U.S.C. 78s(b)(3)(C).
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II. Description of the Proposed Rule Change

    The Exchange proposes to amend its fee schedule to introduce a
pricing program that would allow certain Distributors \6\ to purchase
the Cboe One Summary Feed \7\ from the Exchange at discounted fees.
Currently, the Exchange charges $5,000 per month for external
distribution of Cboe One Summary Feed, and a Data Consolidation Fee of
$1,000 per month. The Exchange also charges a fee $10 per month for
each Professional User and $0.25 for each Non-Professional User.\8\
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    \6\ A Distributor of an Exchange market data product is any
entity that receives the Exchange market data product directly from
the Exchange or indirectly through another entity and then
distributes it internally or externally to a third party. See BZX
Fee Schedule.
    \7\ Cboe One Summary Feed is a data feed that offers top of book
quotations and execution information based on equity orders
submitted to the Exchange and its affiliated equities exchanges,
i.e., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc., and Cboe
BYX Exchange, Inc. See Notice, supra note 4, 84 FR at 56235.
    \8\ A ``Professional User'' of an Exchange market data product
is any user other than a Non-Professional User. See BZX Fee
Schedule. A ``Non-Professional User'' of an Exchange market data
product is a natural person or qualifying trust that uses data only
for personal purposes and not for any commercial purpose and, for a
natural person who works in the United States, is not: (i)
Registered or qualified in any capacity with the Commission, the
Commodities Futures Trading Commission, any state securities agency,
any securities exchange or association, or any commodities or
futures contract market or association; (ii) engaged as an
``investment adviser'' as that term is defined in Section 202(a)(11)
of the Investment Advisors Act of 1940 (whether or not registered or
qualified under that Act); or (iii) employed by a bank or other
organization exempt from registration under federal or state
securities laws to perform functions that would require registration
or qualification if such functions were performed for an
organization not so exempt; or, for a natural person who works
outside of the United States, does not perform the same functions as
would disqualify such person as a Non-Professional User if he or she
worked in the United States. Id.
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    Under the Exchange's proposal, Distributors that qualify for the
Program would be charged a discounted fee of $3,500 per month for the
distribution of Cboe One Summary Feed. Distributors that qualify for
the Program would also be charged a discounted Data Consolidation Fee
of $350 for Cboe One Summary Feed. The Exchange would

continue to charge the current Professional and Non-Professional User
fees for Cboe One Summary Feed.
    In order to qualify for the Program, a Distributor must meet the
following criteria: (i) Distributor is a broker-dealer distributing
Cboe One Summary Feed Data to Non-Professional Data Users with whom the
broker-dealer has a brokerage relationship; (ii) more than 50% of the
Distributor's total subscriber population must consist of Non-
Professional subscribers, inclusive of any subscribers not receiving
Cboe One Summary Feed; and (iii) Distributor distributes Cboe One
Summary Feed to no more than 5,000 Non-Professional Data Users.

III. Suspension of the Proposed Rule Change

    Pursuant to Section 19(b)(3)(C) of the Act,\9\ at any time within
60 days of the date of filing of a proposed rule change pursuant to
Section 19(b)(1) of the Act,\10\ the Commission summarily may
temporarily suspend the change in the rules of a self-regulatory
organization (``SRO'') if it appears to the Commission that such action
is necessary or appropriate in the public interest, for the protection
of investors, or otherwise in furtherance of the purposes of the Act.
As discussed below, the Commission believes a temporary suspension of
the proposed rule change is necessary and appropriate to allow for
additional analysis of the proposed rule change's consistency with the
Act and the rules thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(C).
    \10\ 15 U.S.C. 78s(b)(1).
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    A fee change to introduce the Program was originally filed on
August 1, 2019. That proposal, CboeBZX-2019-069, was published for
comment in the Federal Register on August 20, 2019.\11\ The Commission
received no comment letters regarding the proposed rule change. On
September 30, 2019, the Division of Trading and Markets (the
``Division''), acting on behalf of the Commission by delegated
authority, issued an order temporarily suspending CboeBZX-2019-069
pursuant to Section 19(b)(3)(C) of the Act \12\ and simultaneously
instituting proceedings under Section 19(b)(2)(B) of the Act \13\ to
determine whether to approve or disapprove that proposal.\14\
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    \11\ See Securities Exchange Act Release No. 86667 (August 14,
2019), 84 FR 43233.
    \12\ 15 U.S.C. 78s(b)(3)(C).
    \13\ 15 U.S.C. 78s(b)(2)(B).
    \14\ See Securities Exchange Act Release No. 87164 (September
30, 2019), 84 FR 53208.
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    The Exchange continues to assert that the proposed fees for the
Program ``are reasonable as they represent a significant cost reduction
for smaller, primarily regional, retail brokers that provide top of
book data from BZX and its affiliated exchanges to their retail
investor clients.'' \15\ The Exchange also asserts that the ``proposed
fees are equitable and not unfairly discriminatory as the proposed fee
structure is designed to decrease the price and increase the
availability of U.S. equities market data to retail investors.'' \16\
Finally, the Exchange states that while the proposed fees are limited
to smaller firms that distribute data to no more than 5,000 Non-
Professional data users, it does not believe that the proposed fees for
the Program are inequitable or unfairly discriminatory.\17\
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    \15\ See Notice, supra note 4, 84 FR at 56237.
    \16\ Id. at 56238.
    \17\ Id.
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    When exchanges file their proposed rule changes with the
Commission, including fee filings like the Exchange's present proposal,
they are required to provide a statement supporting the proposal's
basis under the Act and the rules and regulations thereunder applicable
to the exchange.\18\ The instructions to Form 19b-4, on which exchanges
file their proposed rule changes, specify that such statement ``should
be sufficiently detailed and specific to support a finding that the
proposed rule change is consistent with [those] requirements.'' \19\
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    \18\ See 17 CFR 240.19b-4 (Item 3 entitled ``Self-Regulatory
Organization's Statement of the Purpose of, and Statutory Basis for,
the Proposed Rule Change'').
    \19\ See id.
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    Among other things, exchange proposed rule changes are subject to
Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which
requires the rules of an exchange to: (1) Provide for the equitable
allocation of reasonable fees among members, issuers, and other persons
using the exchange's facilities; \20\ (2) perfect the mechanism of a
free and open market and a national market system, protect investors
and the public interest, and not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers; \21\
and (3) not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\22\
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    \20\ 15 U.S.C. 78f(b)(4).
    \21\ 15 U.S.C. 78f(b)(5).
    \22\ 15 U.S.C. 78f(b)(8).
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    In temporarily suspending the Exchange's fee change, the Commission
intends to further consider whether the establishment of the Program is
consistent with the statutory requirements applicable to a national
securities exchange under the Act. In particular, the Commission will
consider whether the proposed rule change satisfies the standards under
the Act and the rules thereunder requiring, among other things, that an
exchange's rules provide for the equitable allocation of reasonable
fees among members, issuers, and other persons using its facilities;
not permit unfair discrimination between customers, issuers, brokers or
dealers; and do not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\23\
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    \23\ See 15 U.S.C. 78f(b)(4), (5), and (8), respectively.
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    Therefore, the Commission finds that it is appropriate in the
public interest, for the protection of investors, and otherwise in
furtherance of the purposes of the Act, to temporarily suspend the
proposed rule changes.\24\
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    \24\ For purposes of temporarily suspending the proposed rule
change, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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IV. Proceedings To Determine Whether To Approve or Disapprove the
Proposed Rule Change

    The Commission is instituting proceedings pursuant to Sections
19(b)(3)(C) \25\ and 19(b)(2)(B) of the Act \26\ to determine whether
the proposed rule change should be approved or disapproved. Institution
of proceedings does not indicate that the Commission has reached any
conclusions with respect to any of the issues involved. Rather, the
Commission seeks and encourages interested persons to provide
additional comment on the proposed rule change to inform the
Commission's analysis of whether to disapprove the proposed rule
change.
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    \25\ 15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily
suspends a proposed rule change, Section 19(b)(3)(C) of the Act
requires that the Commission institute proceedings under Section
19(b)(2)(B) to determine whether a proposed rule change should be
approved or disapproved.
    \26\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act,\27\ the Commission is
providing notice of the grounds for possible disapproval under
consideration:
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    \27\ 15 U.S.C. 78s(b)(2)(B).
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     Section 6(b)(4) of the Act, which requires that the rules
of a national securities exchange ``provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities,'' \28\
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    \28\ 15 U.S.C. 78f(b)(4).
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     Section 6(b)(5) of the Act, which requires, among other
things, that the rules of a national securities exchange

be ``designed to perfect the operation of a free and open market and a
national market system'' and ``protect investors and the public
interest,'' and not be ``designed to permit unfair discrimination
between customers, issuers, brokers, or dealers,'' \29\ and
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    \29\ 15 U.S.C. 78f(b)(5).
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     Section 6(b)(8) of the Act, which requires that the rules
of a national securities exchange ``not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of [the Act].'' \30\
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    \30\ 15 U.S.C. 78f(b)(8).
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    As noted above, the proposal establishes new discounted fees for
Distributors of the Exchange's Cboe One Summary data feed. The
Commission notes that the Exchange's statements in support of the
proposed rule change are general in nature and lack detail and
specificity. The Exchange states that it operates in a highly
competitive environment, and its ability to price these products is
constrained by (i) competition among other national securities
exchanges that offer similar data products to their customers; and (ii)
real-time consolidated data disseminated by the securities information
processors.\31\ The Exchange also states that the proposed Program
would reduce fees charged to small retail brokers that provide access
to the Cboe One Summary Feed.\32\ The Exchange notes that it has one
distributor that qualifies and is taking advantage of the Program's
pricing,\33\ and notes that Program's fees are often lower than
Nasdaq's fees.\34\ The Exchange also notes that ``[w]hile there is no
`exact science' to choosing one eligibility threshold compared to
another, the Exchange believes that having more Non-Professional Data
Users across a firm's entire business . . . is indicative of a broker-
dealer that is primarily engaged in the business of serving retail
investors.'' \35\ The Exchange states that larger broker-dealers and/or
vendors benefit from lower subscriber fees and enterprise licenses,
that Distributors that provide data to more than 5,000 Non-Professional
data users ``enjoy cost savings compared to competitor products,'' and
that the proposed fees would ``ensure that small retail brokers that
distribute top of book data to their retail investor customers could
also benefit from reduced pricing . . .'' \36\
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    \31\ See Notice, supra note 4, 84 FR at 56239.
    \32\ See id. at 56237.
    \33\ See id. at 56236.
    \34\ See id. at 56238-39.
    \35\ See id. at 56238.
    \36\ Id.
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    Under the Commission's Rules of Practice, the ``burden to
demonstrate that a proposed rule change is consistent with the [Act]
and the rules and regulations issued thereunder . . . is on the [SRO]
that proposed the rule change.'' \37\ The description of a proposed
rule change, its purpose and operation, its effect, and a legal
analysis of its consistency with applicable requirements must all be
sufficiently detailed and specific to support an affirmative Commission
finding,\38\ and any failure of an SRO to provide this information may
result in the Commission not having a sufficient basis to make an
affirmative finding that a proposed rule change is consistent with the
Act and the applicable rules and regulations.\39\
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    \37\ Rule 700(b)(3), Commission Rules of Practice, 17 CFR
201.700(b)(3).
    \38\ See id.
    \39\ See id.
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    The Commission is instituting proceedings to allow for additional
consideration and comment on the issues raised herein, including as to
whether the proposed fees are consistent with the Act, and
specifically, with its requirements that exchange fees be reasonable
and equitably allocated; be designed to perfect the mechanism of a free
and open market and the national market system, protect investors and
the public interest, and not be unfairly discriminatory; or not impose
an unnecessary or inappropriate burden on competition.\40\
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    \40\ See 15 U.S.C. 78f(b)(4), (5), and (8).
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V. Commission's Solicitation of Comments

    The Commission requests written views, data, and arguments with
respect to the concerns identified above as well as any other relevant
concerns. Such comments should be submitted by December 24, 2019.
Rebuttal comments should be submitted by January 7, 2020. Although
there do not appear to be any issues relevant to approval or
disapproval which would be facilitated by an oral presentation of
views, data, and arguments, the Commission will consider, pursuant to
Rule 19b-4, any request for an opportunity to make an oral
presentation.\41\
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    \41\ 15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by an SRO. See Securities
Acts Amendments of 1975, Report of the Senate Committee on Banking,
Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th
Cong., 1st Sess. 30 (1975).
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    The Commission asks that commenters address the sufficiency and
merit of the Exchange's statements in support of the proposal, in
addition to any other comments they may wish to submit about the
proposed rule change.
    Interested persons are invited to submit written data, views, and
arguments concerning the proposed rule change, including whether the
proposed rule change is consistent with the Act. Comments may be
submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2019-086 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeBZX-2019-086. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBZX-2019-086 and should be submitted
on or before December 24, 2019. Rebuttal comments should be submitted
by January 7, 2020.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(3)(C) of the
Act,\42\ that File No. SR-CboeBZX-2019-086 be and hereby is,
temporarily suspended. In addition, the Commission is instituting
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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    \42\ 15 U.S.C. 78s(b)(3)(C).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\43\
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    \43\ 17 CFR 200.30-3(a)(57) and (58).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-26056 Filed 12-2-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Proposed Rules]
[Pages 12552-12554]
[FR Doc No: 2021-00748]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 73

[Docket No. FAA-2020-1053; Airspace Docket No. 20-ANM-32]
RIN 2120-AA66

Proposed Amendment of Restricted Area R-7001C and Establishment
of Restricted Areas R-7001D, R-7002A, R-7002B, and R-7002C; Guernsey,
WY

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend restricted area R-7001C and
establish three restricted areas, R-7001D, R-7002A, R-7002B, and R-
7002C at Guernsey, WY. The Wyoming Army National Guard (WYARNG)
requested the establishment of the new restricted areas to support its
air-to-ground firing from helicopters and longer range artillery
training. This additional airspace allows for the segregation of
hazardous activities from non-participating air traffic. The FAA is
also proposing to amend R-7001C to correct an inadvertent error to
ensure proper vertical separation.

DATES: Comments must be received on or before April 19, 2021.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, Washington, DC 20590-0001;
telephone: 1<PHONE_NUMBER>, or<PHONE_NUMBER>. You must identify FAA
Docket Number FAA-2020-0153; Airspace Docket No. 20-ANM-32 at the
beginning of your comments. You may also submit comments through the
internet at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Christopher McMullin, Rules and
Regulations Group, Office of Policy, Federal Aviation Administration,
800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code (U.S.C.). 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. This rulemaking is promulgated under the authority
described in Subtitle VII, Part A, Subpart I, Section 40103. Under that
section, the FAA is charged with prescribing regulations to assign the
use of the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it would amend and establish restricted area airspace at
Guernsey, WY, to contain activities deemed hazardous to
nonparticipating aircraft.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket
Number FAA-2020-0153; Airspace Docket No. 20-ANM-32) and be submitted
in triplicate to the Docket Management Facility (see ADDRESSES section
for address and phone number). You may also submit comments through the
internet at https://www.regulations.gov.
    Commenters wishing the FAA to acknowledge receipt of their comments

on this action must submit with those comments a self-addressed,
stamped postcard on which the following statement is made: ``Comments
to FAA Docket FAA-2020-0153; Airspace Docket No. 20-ANM-32.'' The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified comment
closing date will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the comment
closing date. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRM's

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the office of the Western Service Center, Operations
Support Group, Federal Aviation Administration, 2200 South 216th St.,
Des Moines, WA 98198.

Background

    In a final rule published on February 14, 1962, the FAA established
restricted area R-7001 (27 FR 1355) at Guernsey, WY, in order to
provide special use airspace for the hazardous artillery firing
conducted by Army National Guard (Army) units during its annual summer
training periods. Since R-7001 was established, the Army's activities
and technologies have changed, requiring amendments to R-7001 and the
establishment of new restricted areas to ensure non-participating
aircraft are protected from hazardous activity in the National Airspace
System (NAS). Currently, the restricted areas at Guernsey, WY, are
designated as R-7001A, R-7001B, and R-7001C. In August 1979, the FAA
divided R-7001 vertically into R-7001A and R-7001B (44 FR 34114; June
14, 1979) to provide greater flexibility for military training and
divide the airspace vertically to allow non-participating aircraft
access to unused portions of the airspace, when not in use. The FAA
established R-7001C in February 1985 (50 FR 6156; February 14, 1985) to
protect the NAS from the high angle fire of various weapons and permit
maximum firing capability of these weapons.
    In order to address the advances in weapons systems capabilities
and provide the United States Army the ability to conduct longer range
artillery training, several Controlled Firing Areas (CFA) were
established for use in the same location as R-7002A, R-7002 B, and R-
7002C. The current configuration of restricted areas and CFAs can no
longer support the full capability of the artillery in part, due to the
operational limitations of the CFAs. Camp Guernsey Joint Training
Center hosts several exercises throughout the year. During these
exercises, 155mm artillery, M270 Multiple Launch Rocket System (MLRS),
and M142 High Mobility Artillery Rocket System (HIMARS) are fired.
Additionally, Guernsey, WY is the closest restricted area complex to
F.E. Warren Air Force Base, WY. The development of these new restricted
areas would accommodate the United States Air Force's activities and
provide for its ability to train locally for air-to-ground firing from
helicopters, and the associated Weapon Danger Zones (WDZ).
    Finally, while conducting the evaluation of the restricted areas at
Guernsey, WY, the FAA noted that R-7001B and R-7001C were inadvertently
overlapping airspace. The ceiling of R-7001B stops at 23,500 feet mean
sea level (MSL) and the floor of R-7001C starts at 23,500 feet MSL.
This is an error and the proposed amendment would provide the necessary
vertical separation between the two restricted airspace areas.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 73 to amend restricted area R-7001C and
establish R-7001D, R-7002A, R-7002B, and R-7002C at Guernsey, WY. The
FAA is proposing this action at the request of the WYARNG activities
and due to correct an inadvertent error. Full legal descriptions are in
the ``The Proposed Amendment'' section of this NPRM.
    The proposed restricted areas are described below.
    R-7001C: R-7001C would retain the current boundaries, but the floor
of the restricted area would begin at 23,501 feet MSL. No other changes
would be made to the legal description.
    R-7001D: R-7001D would be established above R-7001C and would have
the same boundaries as the existing restricted area. The altitudes
would be from 30,001 to 45,000 feet MSL. Operations would be limited to
20 days a year.
    R-7002A: R-7002A would be established north of, and sharing its
southern boundary with R-7001A, R-7001B, and R-7001C. The altitudes
would be from the surface to 23,500 feet MSL. Operations would be
limited to 20 days a year.
    R-7002B: R-7002B would be established on the southeast border, and
sharing its northern boundary with R-7001A, R-7001B, and R-7001C. The
altitudes would be from the surface to 23,500 feet MSL. Operations
would be limited to 20 days a year.
    R-7002C: R-7002C would be established west of, and sharing its
eastern border with R-7001A, R-7001B, and R-7001C. The altitudes would
be from the surface to 23,500 feet MSL. Operations would be limited to
20 days a year.

Regulatory Notices and Analyses

    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under
Department of Transportation (DOT) Regulatory Policies and Procedures
(44 FR 11034; February 26, 1979); and (3) does not warrant preparation
of a regulatory evaluation as the anticipated impact is so minimal.
Since this is a routine matter that will only affect air traffic
procedures and air navigation, it is certified that this proposed rule,
when promulgated, will not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 73

    Airspace, Prohibited areas, Restricted areas.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 73 as follows:

PART 73--SPECIAL USE AIRSPACE

0
1. The authority citation for part 73 continues to read as follows:

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

Sec.  73.70   Wyoming [Amended]

0
2. Sec.  73.70 is amended as follows:
* * * * *

R-7001C Guernsey, WY [Amended]

    Boundaries: Beginning at lat. 42[deg]27'30'' N, long.
104[deg]52'32'' W; to lat. 42[deg]27'30'' N, long. 104[deg]42'32''
W; to lat. 42[deg]22'30'' N, long. 104[deg]42'32'' W; to lat.
42[deg]20'00'' N, long. 104[deg]52'32'' W; to the point of
beginning.
    Designated altitudes: 23,501 feet MSL to 30,000 feet MSL.
    Time of designation: Intermittent, 24 hours in advance by NOTAM.
    Controlling agency: FAA, Denver ARTCC.
    Using agency: Adjutant General, State of Wyoming.

R-7001D Guernsey, WY [New]

    Boundaries: Beginning at lat. 42[deg]27'30'' N, long.
104[deg]52'32'' W; to lat. 42[deg]27'30'' N, long. 104[deg]42'32''
W; to lat. 42[deg]22'30'' N, long. 104[deg]42'32'' W; to lat.
42[deg]20'00'' N, long. 104[deg]52'32'' W; to the point of
beginning.
    Designated Altitudes: 30,001 feet MSL to 45,000 feet MSL.
    Time of Designation: By NOTAM, at least 24 hours in advance.
    Controlling Agency: FAA, Denver ARTCC.
    Using Agency: Adjutant General, State of Wyoming.

R-7002A Guernsey, WY [New]

    Boundaries: Beginning at lat. 42[deg]27'55'' N, long.
104[deg]52'33'' W; to lat. 42[deg]27'55'' N, long. 104[deg]51'46''
W; to lat. 42[deg]28'21'' N, long. 104[deg]51'45'' W; to lat.
42[deg]28'21'' N, long. 104[deg]48'46'' W; to lat. 42[deg]27'56'' N,
long. 104[deg]48'46'' W; to lat. 42[deg]27'55'' N, long.
104[deg]47'28'' W; to lat. 42[deg]27'30'' N, long. 104[deg]46'43''
W; to lat. 42[deg]27'30'' N, long. 104[deg]52'32'' W; to the point
of beginning.
    Designated Altitudes: Surface to 23,500 feet MSL.
    Time of Designation: By NOTAM, at least 24 hours in advance.
    Controlling Agency: FAA, Denver ARTCC.
    Using Agency: Adjutant General, State of Wyoming.

R-7002B Guernsey, WY [New]

    Boundaries: Beginning at lat. 42[deg]22'24'' N, long.
104[deg]42'54'' W; to lat. 42[deg]21'41'' N, long. 104[deg]42'52''
W; to lat. 42[deg]21'11'' N, long. 04[deg]43'17'' W; to lat.
42[deg]21'12'' N, long. 104[deg]47'16'' W; to lat. 42[deg]21'19'' N,
long. 104[deg]47'16'' W; to the point of beginning.
    Designated Altitudes: Surface to 23,500 feet MSL.
    Time of Designation: By NOTAM, at least 24 hours in advance.
    Controlling Agency: FAA, Denver ARTCC.
    Using Agency: Adjutant General, State of Wyoming.

R-7002C Guernsey, WY [New]

    Boundaries: Beginning at lat. 42[deg]27'03'' N; long.
104[deg]53'54'' W; to lat. 42[deg]27'03'' N; long. 104[deg]52'32''
W; to lat. 42[deg]20'00'' N; long. 104[deg]52'32'' W; to lat.
42[deg]20'18'' N; long. 104[deg]51'19'' W; to lat. 42[deg]19'42'' N;
long. 104[deg]51'17'' W; to lat. 42[deg]19'43'' N; long.
104[deg]53'03'' W; to lat. 42[deg]20'49'' N; long. 104[deg]54'38''
W; to lat. 42[deg]22'43'' N; long. 104[deg]54'38'' W; to lat.
42[deg]22'48'' N; long. 104[deg]53'22'' W; to lat. 42[deg]23'39'' N;
long. 104[deg]53'23'' W; to lat. 42[deg]23'40'' N; long.
104[deg]53'58'' W; to the point of beginning; excluding that
airspace 500 feet AGL and below \1/4\ mile either side of the BNSF
railroad.
    Designated Altitudes: Surface to 23,500 feet MSL.
    Time of Designation: By NOTAM, at least 24 hours in advance.
    Controlling Agency: FAA, Denver ARTCC.
    Using Agency: Adjutant General, State of Wyoming.
* * * * *

    Issued in Washington, DC, on January 11, 2021.
George Gonzalez,
Acting Manager, Rules and Regulations Group.
[FR Doc. 2021-00748 Filed 3-3-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Notices]
[Pages 36579-36582]
[FR Doc No: 2022-13080]

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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2021-0037; Notice 1]

BMW of North America, LLC, Receipt of Petition for Decision of
Inconsequential Noncompliance

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).

ACTION: Receipt of petition.

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

SUMMARY: BMW of North America, LLC, a subsidiary of BMW AG, Munich,
Germany, (collectively ``BMW''), has determined that certain Model Year
(MY) 2018-2021 BMW K 1600 motorcycles do not fully comply with Federal
Motor Vehicle Safety Standard (FMVSS) No. 123, Motorcycle Controls and
Displays. BMW filed an original noncompliance report dated March 18,
2021, and, subsequently, BMW petitioned NHTSA on April 9, 2021, for a
decision that the subject noncompliance is inconsequential as it
relates to motor vehicle safety. This notice announces receipt of BMW's
petition.

DATES: Send comments on or before July 18, 2022.

ADDRESSES: Interested persons are invited to submit written data,
views, and arguments on this petition. Comments must refer to the
docket and notice number cited in the title of this notice and
submitted by any of the following methods:
     Mail: Send comments by mail addressed to the U.S.
Department of Transportation, Docket Operations, M-30, West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC
20590.
     Hand Delivery: Deliver comments by hand to the U.S.
Department of Transportation, Docket Operations, M-30, West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC
20590. The Docket Section is open on weekdays from 10 a.m. to 5 p.m.
except for Federal holidays.

     Electronically: Submit comments electronically by logging
onto the Federal Docket Management System (FDMS) website at https://www.regulations.gov/. Follow the online instructions for submitting
comments.
     Comments may also be faxed to<PHONE_NUMBER>.
    Comments must be written in the English language and be no greater
than 15 pages in length, although there is no limit to the length of
necessary attachments to the comments. If comments are submitted in
hard copy form, please ensure that two copies are provided. If you wish
to receive confirmation that comments you have submitted by mail were
received, please enclose a stamped, self-addressed postcard with the
comments. Note that all comments received will be posted without change
to https://www.regulations.gov, including any personal information
provided.
    All comments and supporting materials received before the close of
business on the closing date indicated above will be filed in the
docket and will be considered. All comments and supporting materials
received after the closing date will also be filed and will be
considered to the fullest extent possible.
    When the petition is granted or denied, notice of the decision will
also be published in the Federal Register pursuant to the authority
indicated at the end of this notice.
    All comments, background documentation, and supporting materials
submitted to the docket may be viewed by anyone at the address and
times given above. The documents may also be viewed on the internet at
https://www.regulations.gov by following the online instructions for
accessing the docket. The docket ID number for this petition is shown
in the heading of this notice.
    DOT's complete Privacy Act Statement is available for review in a
Federal Register notice published on April 11, 2000 (65 FR 19477-78).

FOR FURTHER INFORMATION CONTACT: Frederick Smith, General Engineer,
NHTSA, Office of Vehicle Safety Compliance,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Overview

    BMW has determined that certain MY 2018-2021 BMW K 1600 motorcycles
do not fully comply with the requirements of paragraph S5.2.5 of FMVSS
No. 123, Motorcycle Controls and Displays (49 CFR 571.123). BMW filed a
noncompliance report dated March 18, 2021, pursuant to 49 CFR part 573,
Defect and Noncompliance Responsibility and Reports. BMW subsequently
petitioned NHTSA on April 9, 2021, for an exemption from the
notification and remedy requirements of 49 U.S.C. Chapter 301 on the
basis that this noncompliance is inconsequential as it relates to motor
vehicle safety, pursuant to 49 U.S.C. 30118(d) and 30120(h) and 49 CFR
part 556, Exemption for Inconsequential Defect or Noncompliance.
    This notice of receipt of BMW's petition is published under 49
U.S.C. 30118 and 30120 and does not represent any Agency decision or
other exercise of judgment concerning the merits of the petition.

II. Motorcycles Involved

    Approximately 4,966 MY 2018-2021 BMW K 1600 GTL, B, and Grand
America motorcycles manufactured between April 13, 2017, and February
23, 2021, are potentially involved.

III. Noncompliance

    BMW explains that the noncompliance is that the subject motorcycles
are equipped with passenger footrests that fold upward and slightly
forward, but not rearward, when not in use, and, therefore, do not
fully comply to the requirements specified in paragraph S5.2.5 of FMVSS
No. 123.

IV. Rule Requirements

    Paragraph S5.2.5 of FMVSS No. 123 includes the requirements
relevant to this petition. Footrests shall be provided for each
designated seating position. Each footrest for a passenger other than
an operator shall fold rearward and upward when not in use.

V. Summary of BMW's Petition

    The following views and arguments presented in this section, ``V.
Summary of BMW's Petition,'' are the views and arguments provided by
BMW. They have not been evaluated by the Agency and do not reflect the
views of the Agency. BMW describes the subject noncompliance and
contends that the noncompliance is inconsequential as it relates to
motor vehicle safety.
    In support of its petition, BMW submitted the following reasoning:
    1. Passenger Footrest Location: For the MY 2021 BMW K 1600 GTL, the
passenger footrest is attached to the mounting bracket and the bracket
is bolted to the motorcycle frame. Similar configurations are
applicable to the K 1600 B and K 1600 Grand America. There are slight
differences in the geometry and mounting locations for the passenger
footrest between the K 1600 GTL and the K 1600 B/Grand America. The
mounting locations for the rider footrest are identical, but for the K
1600 GTL, the mounting location for the passenger footrest is higher.
    2. Lean Angle: The lean angle is the angle that is subtended by the
intersection of a plane passing through the longitudinal axis of the
motorcycle when it is upright (vertical), and a plane passing through
the longitudinal axis of the motorcycle when the motorcycle is at a
specific angle (i.e., the lean angle) from upright (vertical).
    3. Ground Contact of Certain Components/Distance to Passenger
Footrest: During a banked turn, although there is no possibility for
ground contact to occur with the passenger footrest, an analysis was
performed to determine the distance between the passenger footrest and
the ground when other motorcycle components contact the ground.
    a. K 1600 GTL: While in a banked turn, the first component that
could contact the ground would be the rider's footrest at an angle of
approximately 39 degrees. At this lean angle, the passenger footrest
would be at a distance to the ground of approximately 95.4 mm (3.8 in)
in a left lean angle, and approximately 93.9 mm (3.7 in) in a right
lean angle.
    If the rider continued to increase the lean angle, other
components, such as the engine spoiler, or the engine protection guard
(if equipped), at approximately 43 degrees, would contact the ground.
At this lean angle, the passenger footrest would be at a distance to
the ground of approximately 63.3 mm (2.5 in) in a left lean angle, and
approximately 61.8 mm (2.4 in) in a right lean angle. The distance-to-
ground measurements for the passenger footrest, if it were even
possible for the silencer to contact the ground at a lean angle of
approximately 46 degrees (left) and approximately 47.9 degrees (right),
was calculated, see Table 1 below.
    b. K 1600 B/K 1600 Grand America: Similar to the analysis for the K
1600 GTL, analyses were performed for the K 1600 B and the K 1600 Grand
America. In a banked turn, if the rider continued to increase the lean
angle, there are a number of components that would contact the ground,
and at those points, the passenger footrest would be several inches
from the ground.
    c. K 1600 Grand America: Please note that for the K 1600 Grand
America, the rider floorboard and the engine protection guard are
standard equipment. While in a banked turn, the first component that
could contact the ground would be the rider's floorboard at an angle of
approximately 34.5 degrees. At this lean angle, the passenger footrest
would be at a

distance to the ground of approximately 85.1 mm (3.4 in) in a left lean
angle, and approximately 83.5 mm (3.3 in) in a right lean angle.
    If the rider continued to increase the lean angle, the rider's
footrest could contact the ground at an angle of approximately 39
degrees. At this lean angle, the passenger footrest would be at a
distance to the ground of approximately 51.1 mm (2.0 in) in a left lean
angle, and approximately 49.5 mm (1.9 in) in a right lean angle. If the
rider continued to increase the lean angle, the silencer, at
approximately 42 degrees, would contact the ground. At this lean angle,
the passenger footrest would be at a distance to the ground of
approximately 24.4 mm (1.0 inches) in a left-leaning condition and
approximately 18.8 mm (0.7 inches) in a right-leaning condition.
    d. K 1600 B: While in a banked turn, the first component that could
contact the ground would be the rider's footrest at an angle of
approximately 39 degrees. At this lean angle, the passenger footrest
would be at a distance to the ground of approximately 51.1 mm (2.0 in)
in a left lean angle, and approximately 49.5 mm (1.9 in) in a right
lean angle.
    If the rider continued to increase the lean angle, the passenger
footrest would be at a distance to the ground of approximately 24.4 mm
(1.0 inches) in a left-leaning condition, and approximately 18.8 mm
(0.7 inches) in a right-leaning condition.
    e. Summary Table for All Models: A summary of the measurements is
contained in Tables 1 and 2 below. Table 1 includes the motorcycle
models, components that were used in the analyses, and the lean angles
for the various components. Table 2 contains the distance to the ground
of the passenger footrest when specific components are in contact with
the ground.

                                                                         Table 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
             Model                     K 1600 GTL              K 1600 B              K 1600 GA               K 1600 GTL            K 1600 B/K 1600 GA
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Lean angle                Lean angle
           Component                  Std/Opt/Acc            Std/Opt/Acc            Std/Opt/Acc        Lean angle     right      Lean angle     right
                                                                                left  (deg)     (deg)     left  (deg)     (deg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rider Footrest.................  Std..................  Std..................  Std..................           39           39           39           39
Engine Protection Guard........  Opt..................  Opt..................  Std..................           43           43           43           43
Rider Floorboard...............  Not available........  Acc..................  Std..................          N/A          N/A         34.5         34.5
LED Auxiliary Light............  Opt..................  Opt..................  Opt..................           43           43           43           43
Engine Spoiler.................  Std..................  Std..................  Std..................         43.5         43.5         43.5         43.5
Gear Lever.....................  Std..................  Std..................  Std..................         42.5          N/A         42.5          N/A
Foot Brake.....................  Std..................  Std..................  Std..................          N/A         43.7          N/A         43.7
Silencer.......................  Std..................  Std..................  Std..................           46         47.9           42           42
Side Stand.....................  Std..................  Std..................  Std..................           46          N/A         43.8          N/A
Center Stand...................  Std..................  Opt..................  Opt..................           46           46         42.5         42.5
Engine Protector Pad...........  Std..................  Std..................  Std..................         48.5         47.9         48.5         47.9
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                         Table 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Model                                           K 1600 GTL                                 K 1600 B/K 1600 Grand America
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Distance to   Lean angle  Distance to               Distance to   Lean angle  Distance to
                    Component                      Lean angle     ground       right        ground     Lean angle     ground       right        ground
                                                  left  (deg)      (mm)        (deg)         (mm)     left  (deg)      (mm)        (deg)         (mm)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Passenger Footrest..............................           39         95.4         39.0         93.9         34.5         85.1         34.5         83.5
                                                           43         63.3         43.0         61.8         39.0         51.1         39.0         49.5
                                                           46         39.3         47.9         22.5         42.0         24.4         42.0         18.8
--------------------------------------------------------------------------------------------------------------------------------------------------------

    4. Test Rides to Assess Component Contact with Ground: Test rides
were conducted with a K 1600 GTL and with a K 1600 Grand America to
evaluate the issue in a dynamic/real-world environment. Brief on-board
videos were taken to provide a close-up view of certain components
prior to, and at, contact with the Ground.
    a. K 1600 GTL: When the rider is performing a banked turn and is
just starting to increase the lean angle, at this point no component
has contacted the ground. As the angle increases, the rider achieves an
angle where the rider's footrest first starts to contact the ground and
is evident by white ``sparks'' as a result of the contact. At this
point, the passenger footrest is still approximately several inches
from the ground.
    b. K 1600 B/Grand America: A similar video for the K 1600 Grand
America depicts a similar condition. As the rider increases the lean
angle in a banked turn, the rider's footrest will eventually contact
the ground and, at that point, the passenger footrest is still
approximately several inches from the ground.
    5. Conclusion: While in a banked turn, there is no possibility for
the passenger footrest to contact the ground. If the lean angle is
increased, there are a number of motorcycle components that would
contact the ground and, at those points, the passenger footrest is
still approximately several inches from the ground.
    6. Field Experience: BMW has not received any complaints from
vehicle owners and is not aware of any accidents or injuries that have
occurred as a result of this issue.
    7. Vehicle Production: Vehicle production has been corrected to
conform to paragraph S5.2.25 of FMVSS No. 123.
    BMW concludes that the subject noncompliance is inconsequential as
it relates to motor vehicle safety and that its petition to be exempted
from providing notification of the noncompliance, as required by 49
U.S.C. 30118, and a remedy for the noncompliance, as required by 49
U.S.C. 30120, should be granted.
    NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and
30120(h)) that permit manufacturers to file petitions for a
determination of

inconsequentiality allow NHTSA to exempt manufacturers only from the
duties found in sections 30118 and 30120, respectively, to notify
owners, purchasers, and dealers of a defect or noncompliance and to
remedy the defect or noncompliance. Therefore, any decision on this
petition only applies to the subject vehicles that BMW no longer
controlled at the time it determined that the noncompliance existed.
However, any decision on this petition does not relieve vehicle
distributors and dealers of the prohibitions on the sale, offer for
sale, or introduction or delivery for introduction into interstate
commerce of the noncompliant vehicles under their control after BMW
notified them that the subject noncompliance existed.

(Authority: 49 U.S.C. 30118, 30120: delegations of authority at 49
CFR 1.95 and 501.8)

Otto G. Matheke, III,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 2022-13080 Filed 6-16-22; 8:45 am]
BILLING CODE 4910-59-P


[Federal Register Volume 84, Number 210 (Wednesday, October 30, 2019)]
[Notices]
[Page 58189]
[FR Doc No: 2019-23655]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87400; File No. SR-NYSEArca-2019-61)

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To Amend the Exchange's Options and Equities Fee Schedules
Related to Co-Location Services To Offer Access to a Network Providing
Connection to the Three Equities and Options Feeds

October 24, 2019.
    On August 22, 2019, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
establish a network providing connection to three equities and options
feeds \3\ and amend the Exchange's fee schedules relating to co-
location services to offer access to the network. The proposed rule
change was published for comment in the Federal Register on September
10, 2019.\4\ One comment on the proposed rule change has been
received.\5\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Securities Industry Automation Corporation disseminates
information concerning: (1) Last-sale price information in Tape A
and Tape B-listed securities pursuant to the CTA Plan, (2) quotation
information in Tape A and B-listed securities pursuant to the CQ
Plan, and (3) quotation and last-sale price information in exchange
options trading pursuant to the OPRA Plan. See Notice, infra note 4,
at footnote 8.
    \4\ See Securities Exchange Act Release No. 86868 (September 4,
2019), 84 FR 47610.
    \5\ See Letter from John M. Yetter, Vice President and Senior
Deputy General Counsel, Nasdaq, to Vanessa Countryman, Secretary,
Commission, dated October 24, 2019.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \6\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding, or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day after publication of the notice for this proposed rule change
is October 25, 2019. The Commission is extending this 45-day time
period.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period
within which to take action on the proposed rule change so that it has
sufficient time to consider the proposed rule change and the comments
received. Accordingly, the Commission, pursuant to Section 19(b)(2) of
the Act,\7\ designates December 9, 2019, as the date by which the
Commission shall either approve or disapprove, or institute proceedings
to determine whether to disapprove, the proposed rule change (File No.
SR-NYSEArca-2019-61).
---------------------------------------------------------------------------

    \7\ Id.
    \8\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-23655 Filed 10-29-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 51 (Monday, March 16, 2020)]
[Notices]
[Pages 14993-14995]
[FR Doc No: 2020-05240]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88355; File No. SR-BOX-2020-05]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee
Schedule on the BOX Options Market LLC (``BOX'') Facility To Amend
Section V., Eligible Orders Routed to an Away Exchange

March 10, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 2, 2020, BOX Exchange LLC (the ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by the Exchange. The Exchange filed the proposed
rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule
19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule on
the BOX Options Market LLC (``BOX'') facility. The text of the proposed
rule change is available from the principal office of the Exchange, at
the Commission's Public Reference Room and also on the Exchange's
internet website at http://boxexchange.com.

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 the Fee Schedule for trading on BOX
to amend Section V., Eligible Orders Routed to an Away Exchange.
    Currently, BOX uses third-party broker-dealers to route orders to
other exchanges and incurs transaction fees for each order routed to
and executed at an away market, as well as related costs for routing
such orders. To offset the fees and costs incurred by the Exchange for
orders routed to other exchanges, the Exchange charges a $0.60 per
contract fee for customer accounts.\5\ The Exchange is now proposing to
amend Section V. of the BOX Fee Schedule. Specifically, the Exchange
proposes to charge $0.85 per contract for Non-Penny Pilot Classes for
customer accounts. Routing Penny Pilot Classes will continue to be
charged the current $0.60 per contract fee for customer accounts. The
Exchange notes that the proposed changes are in line to fees assessed
at other options exchanges in the industry.\6\
---------------------------------------------------------------------------

    \5\ The term Customer accounts includes both Professional
Customers and Public Customers.
    \6\ The Exchange notes that other exchanges in the industry make
this distinction between routed order fees for Penny Pilot and Non-
Penny Pilot Classes. See Miami International Securities Exchange LLC
(``MIAX'') Fee Schedule. On MIAX, routed orders for Priority
Customers in Penny Pilot Classes are charged $0.15 or $0.65
(depending on what away market the orders are sent). Routed orders
for Priority Customers in Non-Penny Pilot Classes are charged $0.15
or $1.00 (depending on what away market the orders are sent).
Further, routed orders for Public Customers (that are not a Priority
Customer) in Penny Pilot Classes are charged $0.65. Routed orders
for Public Customers (that are not a Priority Customer) in Non-Penny
Pilot Classes are charged $1.00, $1.15, or $1.25 (depending on what
away market the orders are sent). See also Cboe Exchange, Inc.
(``Cboe'') Fee Schedule.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(4) and 6(b)(5)of the Act,\7\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and does not unfairly discriminate between customers, issuers, brokers
or dealers. The Exchange notes that it operates in a highly competitive
market in which market participants can readily direct

order flow to competing venues or providers of routing services if they
deem fee levels to be excessive.
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    \7\ 15 U.S.C. 78f(b)(4) and (5).
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    When assessing routing fees, the Exchange has generally attempted
to approximate the cost of routing to other options exchanges,
including other applicable costs to the Exchange and set a flat routing
fee. The Exchange believes that the proposed fee change for routing
Non-Penny Pilot Classes, which is based on the approximate routing
costs of these contracts, is a reasonable, equitable and not unfairly
discriminatory approach to pricing. Specifically, the proposed flat
routing fee for Non-Penny Pilot Classes will continue to provide
Participants with certainty regarding execution costs for orders routed
to away markets. Further, the Exchange believes a flat routing fee
based on an approximation of the routing costs is administratively
easier for the Exchange to manage for billing purposes and will allow
the Exchange to avoid continually updating the routing fees every time
an away market modifies transaction fees. Finally, as discussed above,
the Exchange believes the proposal is reasonable and appropriate
because the proposed routing fees are within a comparable range to that
of its competitors.\8\
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    \8\ See supra note 6.
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    The Exchange believes that its proposal to assess a higher routing
fee for Non-Penny Pilot Classes compared to the routing fee for Penny
Pilot Classes is reasonable, equitable and not unfairly discriminatory.
The Exchange notes that transactions in Non-Penny Pilot Classes are
generally assessed higher fees than Penny Pilot Classes across the
industry as they are typically less actively traded and have wider
spreads. As such, the Exchange believes it is reasonable to charge a
higher fee for routing such orders, in order to recoup the higher costs
of routing and executing the Non-Penny Pilot Class orders on behalf of
Participants.\9\ The Exchange notes that the current $0.60 routing fee
will remain for executions in Penny Pilot Classes.
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    \9\ The Exchange again notes that another exchange charges
similar fees for Non-Penny Pilot Classes routed to an away exchange.
Id.
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    The Exchange believes that the proposed Routing Fees furthers the
objectives of Section6(b)(5) of the Act and are designed to promote
just and equitable principles of trade and are not unfairly
discriminatory because they seek to recoup costs that are incurred by
the Exchange when routing orders to away markets on behalf of
Participants. Each destination market's transaction charge varies and
there is a cost incurred by the Exchange when routing orders to away
markets. The costs to the Exchange primarily include transaction fees
assessed by the away markets to which the Exchange routes orders, in
addition to the Exchange's clearing costs, administrative, regulatory
and technical costs associated with routing options. The Exchange
believes that the proposed change would better enable the Exchange to
recover the costs it incurs to route orders to away markets. The
Exchange notes that routing through the Exchange is voluntary. The
Exchange also believes that the proposed fees for orders routed to and
executed at away options exchanges is fair and equitable and not
unreasonably discriminatory in that it applies equally to all
Participants.
    The Exchange reiterates that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels to be excessive or providers
of routing services if they deem fee levels to be excessive. Finally,
the Exchange notes that it constantly evaluates its routing fees,
including profit and loss attributable to routing and would consider
future adjustments to the proposed fee to the extent it was recouping a
significant profit or loss from routing to away options exchanges.

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. As discussed herein, the
Exchange's proposed fees are similar to those assessed by other options
exchanges.\10\ Further, the Exchange believes that the proposed change
will assist the Exchange in recouping costs for routing orders to other
options exchanges on behalf of its Participants in a manner that that
reflects pricing changes by various options exchanges as well as
increases to other routing costs incurred by the Exchange. The Exchange
also notes that Participants may choose to designate their orders as
ineligible for routing to avoid incurring routing fees.\11\
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    \10\ Id.
    \11\ See BOX Rule 15030 (describing the routing process, which
requires orders to be designated as eligible for routing).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act \12\ and Rule 19b-4(f)(2)
thereunder,\13\ because it establishes or changes a due, or fee.
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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-BOX-2020-05 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-BOX-2020-05. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be

available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-BOX-
2020-05, and should be submitted on or before April 6, 2020.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-05240 Filed 3-13-20; 8:45 am]
 BILLING CODE 8011-01-P