[Federal Register: November 22, 2006 (Volume 71, Number 225)]
[Notices]
[Page 67673-67675]
[DOCID:fr22no06-137]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54768; File No. SR-NASD-2006-110]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change and Amendment No. 1 Thereto to Establish a
Two-Year Pilot Program Exempting from TRACE Reporting Transactions in
Bonds Traded on a Facility of NYSE

November 16, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 19, 2006, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have substantially been prepared by
NASD. On September 27, 2006, NASD filed Amendment No. 1 to the proposed
rule change.\3\ The Commission is publishing this notice to solicit
comments \4\ on the proposed rule change, as amended, from interested
persons and is approving the proposal on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1, which replaces and supersedes the original
filing in its entirety, made various technical changes to the
proposal and replaced a reference in the proposed rule text to
NYSE's Automated Bond System with a reference to ``a facility of
NYSE.''
    \4\ The Commission received one comment on the proposed rule
change prior to issuance of this notice and order. See comment from
Ron Klein, Chairman, CEO, General Associates, Inc., dated October
16, 2006. The commenter asked various questions regarding the status
of the filing, which are resolved by the Commission's action in this
notice and order.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    NASD is proposing to amend: (1) NASD Rule 6230, to initiate a two-
year pilot program exempting certain TRACE-eligible securities from
reporting requirements that otherwise would apply; and (2) NASD Rules
6210 and 6230, to reflect the registration of The NASDAQ Stock Market
LLC as a national securities exchange. Below is the text of the
proposed rule change, as amended. Proposed new language is italicized;
proposed deletions are in [brackets].
* * * * *

6200. TRADE REPORTING AND COMPLIANCE ENGINE (TRACE)

* * * * *

6210. Definitions

    The terms used in this Rule 6200 Series shall have the same meaning
as those defined in NASD's By-Laws and Rules unless otherwise
specified.
    (a) No Change.
    (b) No Change.
    (c) The term ``reportable TRACE transaction'' shall mean any
secondary market transaction in a TRACE-eligible security except
transactions in TRACE-eligible securities that are listed on a national
securities exchange registered under Section 6 of the Securities
Exchange Act of 1934, when such transactions are executed on, and
reported to the exchange and the transaction information is
disseminated publicly[, or transactions in TRACE-eligible securities
that are listed and quoted on the Nasdaq Stock Market, Inc. (Nasdaq),
when such transactions are reported to Nasdaq and the transaction
information is disseminated publicly]. (d)-(j) No Change.
* * * * *

6230. Transaction Reporting

    (a) through (d) No Change.

(e) Transactions Exempt from Reporting

    The following types of transactions shall not be reported:
    (1) Transactions that are part of a primary distribution by an
issuer.
    (2) Transactions in TRACE-eligible securities that are listed on a
national securities exchange, when such transactions are executed on
and reported to the exchange and the transaction information is
disseminated publicly[, and transactions in TRACE-eligible securities
that are listed and quoted on Nasdaq, when such transactions are
reported to Nasdaq and the transaction information is disseminated
publicly].
    (3) Transactions where the buyer and the seller have agreed to
trade at a price substantially unrelated to the current market for the
TRACE-eligible security (e.g., to allow the seller to make a gift).
    (4) For the duration of a two-year pilot program, effective upon
the later of either: 1) approval of this rule by the Commission, or 2)
execution by NASD and the New York Stock Exchange (``NYSE'') of a data
sharing agreement addressing data related to transactions covered by
this Rule, transactions in TRACE-eligible securities that are executed
on a facility of NYSE in accordance with NYSE Rules 1400 and 1401 and
reported to NYSE in accordance with NYSE's applicable trade reporting
rules and disseminated publicly by NYSE.
    (f) No Change.
* * * * *

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

    In its filing with the Commission, NASD 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 III below. NASD 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
    NASD is proposing to amend its Rule 6230 to exempt from Trade
Reporting and Compliance Engine (``TRACE'') \5\ reporting requirements,
for a period of two years, transactions in TRACE-eligible securities
\6\ executed on a facility of the New York Stock Exchange (``NYSE'') in
accordance with NYSE Rules 1400 and 1401, provided that such
transactions are reported pursuant to applicable NYSE trade reporting
rules and publicly disseminated.\7\ NYSE has sought exemptive relief
from the Commission that would facilitate NYSE's trading of certain
corporate debt securities that are not listed on NYSE.\8\ NASD has
proposed to amend its Rule 6230 to address concerns regarding
duplicative trade reporting that would result from the trading of those
NYSE-Traded Bonds which otherwise would be subject to both NASD's and
NYSE's trade reporting requirements.
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    \5\ See NASD Rule 6210(b).
    \6\ See NASD Rule 6210(a).
    \7\ See Securities Exchange Act Release Nos. 51999 (July 8,
2005), 70 FR 41067 (July 15, 2005) (SR-NYSE-2004-69) (proposing NYSE
Rules 1400 and 1401) (``NYSE Corporate Debt Proposal'') and 54767
(November 16, 2006) (SR-NYSE-2004-69) (approving NYSE Corporate Debt
Proposal).
    \8\ See Securities Exchange Act Release No. 51998 (July 8,
2005), 70 FR 40748 (July 14, 2005) (File No. S7-06-05). Debt
securities traded on a facility of NYSE, but not listed on NYSE, are
herein referred to as ``NYSE-Traded Bonds.''
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    NASD Rule 6230(e)(2) currently exempts transactions in TRACE-
eligible securities that are listed on a national securities exchange
when such transactions are executed on and reported to the exchange and
the transaction information is disseminated publicly. However, NYSE-
Traded Bonds will not be listed on NYSE \9\ and the proposed rule
change would expand the exemption from reporting under NASD Rule 6230
to transactions in NYSE-Traded Bonds that are TRACE-eligible securities
that are reported to NYSE and disseminated publicly.
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    \9\ See NYSE Corporate Debt Proposal, 70 FR at 41067, 41068
(discussing distinction between bonds listed on NYSE and bonds
traded on a facility of NYSE).
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    NASD notes that the proposed rule change is predicated on NASD's
receiving certain information from NYSE relating to transactions in
NYSE-Traded Bonds that are TRACE-eligible and NASD's successful
integration of this information into its audit trail.\10\ The success
of the proposed pilot program will be heavily dependent on NASD's
ability to effectively continue to provide surveillance for corporate
debt trading in the over-the-counter (``OTC'') market. NASD will
evaluate the effectiveness of the consolidated audit trail during the
pendency of the proposed pilot program.
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    \10\ In this regard, NASD and NYSE are in the process of
negotiating a data-sharing agreement wherein, among other things,
NYSE will agree to provide NASD, on a T+1 basis, certain information
related to transactions in NYSE-Traded Bonds that are TRACE-eligible
securities. In turn, NASD intends to consolidate this information
into the computer database housing NASD's audit trail. NASD intends
to provide NYSE regulatory personnel access, strictly for regulatory
purposes only, to that portion of NASD's database reflecting the
information submitted by NYSE.
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    Finally, NASD is proposing to delete references to ``Nasdaq'' and
the ``Nasdaq Stock Market, Inc.'' in NASD Rule 6210 and ``Nasdaq'' in
NASD Rule 6230 to reflect The NASDAQ Stock Market LLC's registration as
a national securities exchange.
    The proposed rule change will become effective upon the later of
either: (1) approval of this proposed rule change by the Commission, or
(2) execution by NASD and NYSE of a data-sharing agreement addressing
data related to transactions covered by the proposed rule change.
2. Statutory Basis
    NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\11\ which requires, among
other things, that NASD's rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. The proposed rule change is being made to enhance
regulatory efficiency and reduce duplicative trade reporting.
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    \11\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASD does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

III. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-NASD-2006-110 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASD-2006-110. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of NASD. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NASD-2006-110 and should be submitted on or before December 13,
2006.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed
rule change, as amended, is consistent with the Act and the rules and
regulations thereunder applicable to a national securities

 association.\12\ Specifically, the Commission believes that the
proposal is consistent with Section 15A(b)(6) of the Act \13\ in that
it is designed to promote just and equitable principles of trade, to
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The Commission also believes that the proposal is consistent with
Section 15A(b)(9) of the Act \14\ in that it does not impose any burden
on competition not necessary or appropriate in furtherance of the
purposes of the Act.
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    \12\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
    \13\ 15 U.S.C. 78o-3(b)(6).
    \14\ 15 U.S.C. 78o-3(b)(9).
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    Any trade in unregistered corporate debt securities on NYSE will
automatically be captured by NYSE's systems. The Commission understands
that NYSE will provide data on such trades to NASD for surveillance
purposes. Therefore, NASD should be able to obtain necessary
surveillance data without subjecting joint NYSE/NASD members to a
duplicative reporting requirement. The Commission concludes that it is
reasonable and consistent with the Act for NASD to eliminate from its
rules the requirement that a trade executed on NYSE also be reported to
TRACE.\15\
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    \15\ The Commission will continue to monitor the growth of
intermarket competition in the corporate bond markets and, in the
event market fragmentation becomes a concern, will consider
appropriate means to address the consolidation of market information
for corporate bonds.
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    Pursuant to Section 19(b)(2) of the Act,\16\ the Commission finds
good cause for approving the proposed rule change, as amended, before
the thirtieth day after the date of publication of notice of filing
thereof. Accelerating approval of this proposed rule change will
immediately eliminate double-reporting of certain bond trades and
thereby eliminate an unnecessary burden on NYSE members trading
corporate bonds pursuant to the terms of an exemption being granted in
a related action today by the Commission.\17\ The Commission believes
that NASD's rule change raises no issues of regulatory concern, because
NASD should have access to sufficient regulatory information relating
to the exempted bond trades through the information-sharing agreement
it will enter with NYSE. Therefore, the Commission does not believe it
is necessary or appropriate to delay approval and implementation of
this proposal pending a notice-and-comment period.
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    \16\ 15 U.S.C. 78s(b)(2).
    \17\ See Securities Exchange Act Release No. 54766 (November 16,
2006) (File No. S7-06-05).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\18\ that the proposed rule change (SR-NASD-2006-110), as amended,
is hereby approved on an accelerated basis.
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    \18\ 15 U.S.C. 78s(b)(2).
    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\19\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-19728 Filed 11-21-06; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 69 (Tuesday, April 11, 2023)]
[Rules and Regulations]
[Pages 21474-21476]
[FR Doc No: 2023-07594]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 147

[Docket Number USCG-2021-0475]
RIN 1625-AA00

Safety Zone; Horn Mountain Spar Outer Continental Shelf Facility,
Mississippi Canyon Block 127, Gulf of Mexico

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is establishing a safety zone on the navigable
waters around the Horn Mountain Spar, located in Mississippi Canyon
Block 127 on the Outer Continental Shelf (OCS) in the Gulf of Mexico.
The purpose of this rule is to protect the facility from all vessel
traffic operating outside the normal shipping channels and fairways
that are not providing service to or working with the facility.
Establishing a safety zone around the facility will significantly
reduce the threat of allisions, collisions, security breaches, oil
spills, releases of natural gas, and thereby protect the safety of
life, property, and the environment.

DATES: This rule is effective May 11, 2023.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://www.regulations.gov, type USCG-
2021-0475 in the search box and click ``Search.'' Next, in the Document
Type column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email LCDR David Newcomb, District Eight OCS, U.S. Coast Guard;
telephone<PHONE_NUMBER>, [email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
OCS Outer Continental Shelf
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    Anadarko Petroleum Corporation requested that the Coast Guard
establish a safety zone around its facility. There are safety concerns
for both the personnel aboard the facility and the environment that
arise when a safety zone is not established. In response, on October
23, 2022, the Coast Guard published a notice of proposed rulemaking
(NPRM) titled Safety Zone; Horn Mountain Spar Outer Continental Shelf
Facility, Mississippi Canyon Block 127, Gulf of Mexico. There we stated
why we issued the NPRM, and invited comments on our proposed regulatory
action related to this safety zone. During this comment period that
ended on November 23, 2022, we received 1 comment

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 14 U.S.C.
85, 43 U.S.C. 1333, Department of Homeland Security Delegation No.
0170.1, and 33 CFR 1.05-1, 147.1, and 147.10, which collectively permit
the establishment of safety zones for facilities located on the OCS for
the purpose of protecting life and property on the facilities, and the
marine environment in the safety zones. The Coast Guard has determined
that a safety zone is necessary to protect the facility from all
vessels operating outside the normal shipping channels and fairways
that are not providing services to or working with the facility.
Navigation in the vicinity of the safety zone consists of large
commercial shipping vessels, fishing vessels, cruise ships, tugs with
tows and the occasional recreational vessel. The deepwater area also
includes an extensive system of fairways. The purpose of the rule is to
significantly reduce the threat of allisions, oil spills, and releases
of natural gas, and thereby protect the safety of life, property, and
the environment.

IV. Discussion of Comments, Changes and the Rule

    As noted above, we received 1 comment on our NPRM published on
November 23, 2022. The commenter asked to specify the horizontal datum
(NAD 27, NAD 83, etc.) for the latitude and longitude position in the
rule. We have done so. In this rule, as in all OCS Safety Zone rules,
we use the NAD 83 horizontal datum.
    This rule established a safety zone on the Outer Continental Shelf
(OCS) in the deepwater area of the Gulf of Mexico at Mississippi Canyon
127. The area or the safety zone is 500 meters (1640.4 feet) from each
point on the facility, which is located at 28[deg]51'57.5994'' N,
88[deg]3'22.32'' W (NAD 83). The deepwater area is waters of 304.8
meters (1,000 feet) or greater depth extending to the limits of the
Exclusive Economic Zone (EEZ) contiguous to the territorial sea of the
United States and extending to a distance up to 200 nautical miles from
the baseline from which the breadth of the sea is measured. No vessel,
except those attending the facility, or those less than 100 feet in
length and not engaged in towing will be permitted to enter the safety
zone without obtaining permission from Commander, Eighth Coast Guard
District or a designated representative.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive Orders related to rulemaking, and we considered the First
Amendment rights of protestors. Below we summarize our analyses based
on a number of these statutes or executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This rule has not been
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, this rule has not been reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt
from the requirements of Executive Order 13771.
    This regulatory action determination is based on the location of
the Horn Mountain Spar, on the OCS, and its distance from both land and
safety fairways. Vessels traversing waters near the safety zone will be
able to safely travel around the zone using alternate routes.
Exceptions to this rule include vessels measuring less than 100 feet in
length overall and not engaged in towing. The Eighth Coast Guard
District Commander, or a designated representative, will consider
requests to transit through the safety zone on a case-by-case basis.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard received no comments from the Small Business
Administration on this rulemaking. The Coast Guard certifies under 5
U.S.C. 605(b) that this rule will not have a significant economic
impact on a substantial number of small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule affects your small
business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has 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. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this rule has implications for federalism or Indian tribes,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made a preliminary
determination that this action is one of a category of actions that do
not individually or cumulatively have a significant effect on the human
environment. This rule involves establishing a safety zone around an
offshore deepwater facility. Normally such actions are categorically
excluded

from further review under paragraph 34(g) of Figure 2-1 of Commandant
Instruction M16475.lD. A preliminary environmental analysis checklist
and Categorical Exclusion Determination, prepared and signed before
October 31, 2022 are available in the docket where indicated under
ADDRESSES.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

List of Subjects in 33 CFR Part 147

    Continental shelf, Marine safety, Navigation (water).

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 147 as follows:

PART 147--SAFETY ZONES

0
1. The authority citation for part 147 continues to read as follows:

    Authority:  14 U.S.C. 554; 43 U.S.C. 1333; 33 CFR 1.05-1;
Department of Homeland Security Delegation No. 0170.1.

0
2. Add Sec.  147.875 to read as follows:

Sec.  147.875  Safety Zone, Horn Mountain Spar, Outer Continental Shelf
Facility, Mississippi Canyon 127.

    (a) Description. The Horn Mountain Spar is in the deepwater area of
the Gulf of Mexico at Mississippi Canyon 127. The facility is located
at: 28[deg]51'57.5994'' N, 88[deg]3'22.32'' W, (NAD 83) and the area
within 500 meters (1640.4 feet) from each point on the facililty
structure's outer edge is a safety zone.
    (b) Regulation. No vessel may enter or remain in this safety zone
except for the following:
    (1) An attending vessel, as defined in 147.20;
    (2) A vessel under 100 feet in length overall not engaged in
towing; or
    (2) A vessel authorized by the Commander, Eighth Coast Guard
District or a designated representative.
    (c) Requests for permission. Persons or vessels requiring
authorization to enter the safety zone must request permission from the
Commander, Eighth Coast Guard District or a designated representative.
If permission is granted, all persons and vessels shall comply with the
instructions of the Commander or designated representative.

    Dated: April 4, 2023.
Richard Timme,
RADM, U.S. Coast Guard, Commander, Coast Guard District Eight.
[FR Doc. 2023-07594 Filed 4-10-23; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Notices]
[Pages 31589-31590]
[FR Doc No: 2018-14462]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83559; File No. SR-FINRA-2018-013]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving a Proposed Rule Change, as Modified by
Amendment No. 1, To Establish a Second Trade Reporting Facility

June 29, 2018.

I. Introduction

    On April 19, 2018, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') 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 second Trade Reporting Facility
(``TRF'') to be operated in conjunction with Nasdaq, Inc. (``Nasdaq'').
The proposed rule change was published for comment in the Federal
Register on April 26, 2018.\3\ The Commission received no comment
letters on the proposal. On June 21, 2018, FINRA filed Amendment No.
1.\4\ This order approves the proposed rule change, as modified by
Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 83082 (April 20,
2018), 83 FR 18379 (``Notice''). See also, Securities Exchange Act
Release No. 83398 (June 8, 2018), 83 FR 27807 (June 14, 2018)
extending the time for the Commission to act on the filing.
    \4\ In Amendment No. 1, FINRA states that, if the Commission
approves the proposed rule change, FINRA anticipates that the FINRA/
Nasdaq TRF Chicago will commence operation in September 2018, but in
no event later than December 31, 2018. Amendment No. 1 is available
at: https://www.sec.gov/comments/sr-finra-2018-013/finra2018013-3918682-166985.pdf. Because Amendment No. 1 does not materially
alter the substance of the proposed rule change or raise unique or
novel regulatory issues, Amendment No. 1 is not subject to notice
and comment.
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II. Description of the Proposal

Background

    FINRA currently has three facilities that allow its members to
report over-the-counter (``OTC'') trades in NMS stocks: \5\ The FINRA/
Nasdaq TRF, the FINRA/NYSE TRF, and the Alternative Display Facility
(``ADF'') (collectively, the ``FINRA Facilities''). For each TRF, FINRA
is the SRO Member and, as such, it has sole regulatory responsibility
for the TRFs, including: Real-time monitoring and T+1 surveillance,
development and enforcement of trade reporting rules, and submission of
proposed rule changes to the Commission. Nasdaq is the ``Business
Member'' of the FINRA/Nasdaq TRF.\6\ A Business Member is primarily
responsible for the management of the business affairs of its TRF.\7\
Among other things, the Business Member establishes pricing, is
obligated to pay the cost of regulation and is entitled to the profits
and responsible for the losses derived from the operation of its
TRF.\8\
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    \5\ See Rule 600(b) of Regulation NMS under the Act.
    \6\ NYSE is the Business Member of the FINRA/NYSE TRF.
    \7\ See Notice at 18381.
    \8\ See id.
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    In January 2016, FINRA published a Trade Reporting Notice (``Trade
Reporting Notice'') that provided guidance on the reporting obligations
of member firms regarding OTC equity trades in the event of a systems
issue during the trading day that prevents firms from reporting OTC
trades in NMS stocks in accordance with FINRA rules.\9\ As set forth in
the Trade Reporting Notice, a firm that routinely reports its OTC
trades in NMS stocks to one FINRA Facility (``primary facility'') must
establish and maintain connectivity and report to a second FINRA
Facility (``secondary facility'') if the firm intends to continue to
support OTC trading as an executing broker while its primary facility
is experiencing a widespread systems issue.\10\
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    \9\ See Trade Reporting Notice, January 20, 2016 (OTC Equity
Trading and Reporting in the Event of Systems Issues).
    \10\ As discussed in the Trade Reporting Notice, if a firm
chooses not to have connectivity to a secondary facility, it should
cease executing OTC trades altogether when its primary trade
reporting facility is experiencing a widespread systems issue. In
that instance, the firm could route orders for execution to an
exchange or another FINRA member (i.e., a member with connectivity
and the ability to report trades to a FINRA Facility that is
operational).
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Proposal

    FINRA proposed to establish a second FINRA/Nasdaq TRF (``FINRA/
Nasdaq TRF Chicago''), to provide FINRA members an additional facility
to which to report trades in compliance with FINRA rules and the Trade
Reporting Notice. The FINRA/Nasdaq TRF Chicago would be governed by the
rules applicable to the existing FINRA/Nasdaq Trade Reporting Facility
(``FINRA/Nasdaq TRF Carteret'').\11\ A primary user of the FINRA/Nasdaq
TRF Carteret could report on a back-up basis to the FINRA/Nasdaq TRF
Chicago pursuant to the same rules, pricing, features and performance
to which the firm is accustomed as a user of the FINRA/Nasdaq TRF
Carteret--and vice versa.\12\ FINRA/Nasdaq TRF Chicago trade reports
would be disseminated with a modifier indicating the source of the
transactions that would distinguish them from transactions executed on
an exchange or reported to another FINRA Facility, including the FINRA/
Nasdaq TRF Carteret.
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    \11\ See Securities Exchange Act Release No. 54084 (June 30,
2006), 71 FR 38935 (July 10, 2006) (order approving SR-NASD-2005-
087); and Securities Exchange Act Release No. 54798 (November 21,
2006), 71 FR 69156 (November 29, 2006) (order approving SR-NASD-
2006-104).
    \12\ A FINRA member also has the option to report some trades,
on a primary basis, to the FINRA/Nasdaq TRF Chicago, and some
trades, on a primary basis, to the FINRA/Nasdaq TRF Carteret.
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    The proposed rule change would establish the FINRA/Nasdaq TRF
Chicago on the same terms as the FINRA/Nasdaq TRF Carteret. The FINRA/
Nasdaq TRF Chicago would be built with the same technology, provide

the same features and performance,\13\ offer the same pricing, and be
governed by the same substantive rules, policies, and procedures. A
single set of application materials and clearing arrangements will
provide for access to both TRFs. Moreover, Nasdaq, as the Business
Member, has advised FINRA that these two TRFs will evolve in tandem and
remain the same going forward (for example, because the same fee and
credit schedule under the Rule 7600A Series will apply to both TRFs,
any pricing changes would apply to both TRFs).\14\ The proposed rule
change would allow firms to aggregate the volume of trades that they
report to the two TRFs, which will enable firms to continue to qualify
for any volume-based pricing that they would otherwise qualify for if
they limited their trade reporting to one of those facilities. Finally,
FINRA would amend Rules 6300A, 7200A, and 7600A Series, which govern
the FINRA/Nasdaq TRF Carteret, to accommodate the establishment of the
FINRA/Nasdaq TRF Chicago.\15\
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    \13\ Users of the two FINRA/Nasdaq TRFs may experience latency
differences due to the different locations of the TRFs.
    \14\ According to Nasdaq, the FINRA/Nasdaq TRF Chicago will
include several new components to provide performance improvements
and operational efficiencies that Nasdaq intends to incorporate into
the FINRA/Nasdaq TRF Carteret shortly after the launch of FINRA/
Nasdaq TRF Chicago. Nasdaq will provide participants with notice
prior to re-platforming the FINRA/Nasdaq TRF Carteret. After Nasdaq
completes this re-platforming, Nasdaq generally intends to perform
updates, upgrades, fixes or other modifications to the two FINRA/
Nasdaq TRFs in tandem. However, Nasdaq notes that there may be
instances in which it will be necessary for Nasdaq to act in
sequence. During such instances, there may be disparities between
the two TRFs with respect to function or performance. Nasdaq expects
that any disparity in function or performance between the two TRFs
that arises during sequential changes will be transitory. Nasdaq
will provide participants with notice if it anticipates more than a
de minimis transition period.
    \15\ See Notice at 18381-82.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
association.\16\ In particular, the Commission finds that the proposed
rule change is consistent with Section 15A(b)(6) of the Act,\17\ which
requires, among other things, that FINRA rules be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, and in general, to protect investors and
the public interest.
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    \16\ In approving this proposed rule change, the Commission has
considered the proposed rule change's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \17\ 15 U.S.C. 78o-3(b)(6).
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    The Commission believes that the proposal to establish the FINRA/
Nasdaq TRF Chicago is consistent with the purposes of the Act and with
FINRA's responsibility to enforce compliance by its members with its
rules and with the Act. FINRA states that geographic dispersion of
these TRFs would reduce the risk of a regional outage affecting them
both simultaneously. By providing members with an alternative FINRA
facility in a different location than the existing FINRA/Nasdaq TRF
with which to satisfy their trade reporting obligations, the Commission
believes that the proposed rule change should enhance the resiliency
and promote the integrity of the OTC market. Accordingly, for the
reasons discussed above, the Commission finds that the proposed rule
change is consistent with Section 15A(b)(6) of the Act.

IV. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) of the Act
\18\ that the proposed rule change (SR-FINRA-2018-013), as modified by
Amendment No. 1, be and hereby is approved.
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    \18\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14462 Filed 7-5-18; 8:45 am]
 BILLING CODE 8011-01-P