[Federal Register Volume 79, Number 13 (Tuesday, January 21, 2014)]
[Notices]
[Pages 3434-3441]
[FR Doc No: 2014-01031]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71299; File No. SR-NASDAQ-2014-002]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to NASDAQ Options Market Fees and Rebates

January 14, 2014.
    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 January 2, 2014, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by NASDAQ.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    NASDAQ proposes to modify Chapter XV, entitled ``Options Pricing,''
at Section 2 governing pricing for NASDAQ members using the NASDAQ
Options Market (``NOM''), NASDAQ's facility for executing and routing
standardized equity and index options. Specifically, NOM proposes to:
(i) Amend the Customer and Professional Rebates to Add Liquidity in
Penny Pilot Options; \3\ (ii) increase certain non-Customer Fees for
Removing Liquidity in Penny Pilot Options; (iii) increase the Customer
and NOM Market Maker \4\ Fees for Removing Liquidity and Customer
Rebate to Add Liquidity in Non-Penny Pilot Options and surcharge for
options overlying the Nasdaq 100 Index traded under the symbol NDX
(``NDX''); \5\ and (iv) increase Fees for Adding and Removing Liquidity
for options overlying the PHLX Semiconductor Sector\SM\ (SOX\SM\), PHLX
Housing Sector\TM\ (HGX\SM\) and PHLX Oil Service Sector\SM\ (OSX\SM\).
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    \3\ The Penny Pilot was established in March 2008 and in October
2009 was expanded and extended through June 30, 2014. See Securities
Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April
4, 2008) (SR-NASDAQ-2008-026) (notice of filing and immediate
effectiveness establishing Penny Pilot); 60874 (October 23, 2009),
74 FR 56682 (November 2, 2009) (SR-NASDAQ-2009-091) (notice of
filing and immediate effectiveness expanding and extending Penny
Pilot); 60965 (November 9, 2009), 74 FR 59292 (November 17, 2009)
(SR-NASDAQ-2009-097) (notice of filing and immediate effectiveness
adding seventy-five classes to Penny Pilot); 61455 (February 1,
2010), 75 FR 6239 (February 8, 2010) (SR-NASDAQ-2010-013) (notice of
filing and immediate effectiveness adding seventy-five classes to
Penny Pilot); 62029 (May 4, 2010), 75 FR 25895 (May 10, 2010) (SR-
NASDAQ-2010-053) (notice of filing and immediate effectiveness
adding seventy-five classes to Penny Pilot); 65969 (December 15,
2011), 76 FR 79268 (December 21, 2011) (SR-NASDAQ-2011-169) (notice
of filing and immediate effectiveness extension and replacement of
Penny Pilot); 67325 (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR-
NASDAQ-2012-075) (notice of filing and immediate effectiveness and
extension and replacement of Penny Pilot through December 31, 2012);
68519 (December 21, 2012), 78 FR 136 (January 2, 2013) (SR-NASDAQ-
2012-143) (notice of filing and immediate effectiveness and
extension and replacement of Penny Pilot through June 30, 2013);
69787 (June 18, 2013), 78 FR 37858 (June 24, 2013) (SR-NASDAQ-2013-
082) and 71105 (December 17, 2013), 78 FR 77530 (December 23, 2013)
(SR-NASDAQ-2013-154). See also NOM Rules, Chapter VI, Section 5.
    \4\ The term ``NOM Market Maker'' means a Participant that has
registered as a Market Maker on NOM pursuant to Chapter VII, Section
2, and must also remain in good standing pursuant to Chapter VII,
Section 4. In order to receive NOM Market Maker pricing in all
securities, the Participant must be registered as a NOM Market Maker
in at least one security.
    \5\ This would include options on Nasdaq-100 Index (``NDX'').
Today, for transactions in NDX, the Exchange assesses a surcharge of
$0.10 per contract will be added to the Fee for Adding Liquidity and
the Fee for Removing Liquidity in Non-Penny Pilot Options, except
for a Customer who will not be assessed a surcharge.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaq.cchwallstreet.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for 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
    NASDAQ proposes to amend certain fees in Chapter XV, Section 2. The
Exchange proposes to amend the Customer and Professional Penny Pilot
Options Rebates to Add Liquidity to continue to incentivize
Participants to direct additional Customer and/or Professional
liquidity to NOM. The Exchange proposes to increase non-Customer Fees
for Removing Liquidity in Penny Pilot Options to be able to offer
greater Customer and Professional Penny Pilot Options Rebates to Add
Liquidity. The Exchange proposes to increase the Customer and NOM
Market Make Fees for Removing Liquidity and Customer Rebate to Add
Liquidity in Non-Penny Pilot Options and NDX surcharge. The Exchange
proposes to increase the Fees for Adding and Removing Liquidity in SOX,
HGX and OSX.

Customer and Professional Penny Pilot Option Rebates to Add Liquidity
    The Exchange currently pays Customer and Professional Rebates to
Add Liquidity based on an eight tier rebate structure as follows:

------------------------------------------------------------------------
                                                              Rebate to
     Monthly                        Volume                       add
                                                              liquidity
------------------------------------------------------------------------
Tier 1...........  Participant adds Customer and/or                $0.25
                    Professional liquidity of up to 0.20%
                    of total industry customer equity and
                    ETF option average daily volume
                    (``ADV'') contracts per day in a month.
Tier 2...........  Participant adds Customer and/or                 0.40
                    Professional liquidity of 0.21% to
                    0.30% of total industry customer equity
                    and ETF option ADV contracts per day in
                    a month.
Tier 3...........  Participant adds Customer and/or                 0.43
                    Professional liquidity of 0.31% to
                    0.49% of total industry customer equity
                    and ETF option ADV contracts per day in
                    a month.
Tier 4...........  Participant adds Customer and/or                 0.45
                    Professional liquidity of 0.5% or more
                    of total industry customer equity and
                    ETF option ADV contracts per day in a
                    month.
Tier 5...........  Participant adds (1) Customer and/or             0.42
                    Professional liquidity of 25,000 or
                    more contracts per day in a month, (2)
                    the Participant has certified for the
                    Investor Support Program set forth in
                    Rule 7014, and (3) the Participant
                    executed at least one order on NASDAQ's
                    equity market.
Tier 6...........  Participant has Total Volume of 115,000          0.45
                    or more contracts per day in a month,
                    of which 25,000 or more contracts per
                    day in a month must be Customer and/or
                    Professional liquidity.
Tier 7...........  Participant has Total Volume of 150,000          0.47
                    or more contracts per day in a month,
                    of which 50,000 or more contracts per
                    day in a month must be Customer and/or
                    Professional liquidity.
Tier 8...........  Participant (1) has Total Volume of             [sic]
                    200,000 or more contracts per day in a
                    month, of which 70,000 or more
                    contracts per day in a month must be
                    Customer and/or Professional liquidity
                    or (2) adds Customer and/or
                    Professional liquidity of 1.00% or more
                    of national customer volume in multiply-
                    listed equity and ETF options classes
                    in a month.
------------------------------------------------------------------------

    For purposes of qualifying for a Customer and Professional Rebate
to Add Liquidity tier, the Exchange determines the applicable
percentage of total industry customer equity and ETF option average
daily volume by including the Participant's Penny Pilot and Non-Penny
Pilot Customer and/or Professional volume that adds liquidity. The
Exchange is proposing to make certain amendments to the tiers as noted
below.
    The Exchange proposes to clarify the Tier 1 Customer and
Professional Penny Pilot Options Rebates to Add Liquidity by adding
rule text stating that Non-Penny Pilot Options as well as Penny Pilot
Options which add liquidity would qualify a Participant for a Tier 1
rebate. This is not an amendment to the tier, but rather a
clarification of the rule text. The Exchange would continue to pay a
rebate of $0.25 per contract to Participants that add Customer and/or
Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot
Options of up to 0.20% of total industry customer equity and ETF option
average daily volume (``ADV'') contracts per day in a month.
    The Exchange proposes to amend the Tier 2 Customer and Professional
Penny Pilot Options Rebates to Add Liquidity to increase the current
$0.40 per contract rebate to $0.42 per contract. The Exchange proposes
to clarify the Tier 2 Customer and Professional Penny Pilot Options
Rebate to Add Liquidity by adding rule text stating that Non-Penny
Pilot Options as well as Penny Pilot Options which add liquidity would
qualify a Participant for a Tier 2 rebate. This is not an amendment to
the tier, but rather a clarification of the rule text. Finally, the
Exchange proposes to amend the Tier 2 volume threshold by clarifying
that the current threshold of 0.21% to 0.30% of total customer equity
and ETF options ADV contracts per day in a month would be better worded
as above 0.20% to 0.30%. The Exchange believes that the use of the word
``above'' brings greater clarity to the rule text. With this amendment,
the Exchange would pay a $0.42 per contract rebate to Participants that
add Customer and/or Professional liquidity in Penny Pilot Options and/
or Non-Penny Pilot Options above 0.20% to 0.30% of total industry
customer equity and ETF option ADV contracts per day in a month.
    The Exchange proposes to clarify the Tier 3 Customer and
Professional Penny Pilot Options Rebates to Add Liquidity by adding
rule text stating that Non-Penny Pilot Options as well as Penny Pilot
Options which add liquidity would qualify a Participant for a Tier 3
rebate. This is not an amendment to the tier, but rather a
clarification of the rule text. Additionally, the Exchange proposes to
amend the Tier 3 volume threshold by lowering the 0.31% to 0.49% of
total industry customer equity to above 0.30% to 0.40% of total
customer equity and ETF options ADV contracts per day in a month. The
Exchange believes that the use of the word ``above'' brings greater
clarity to the rule text. With this amendment, the Exchange would
continue to pay a $0.43 per contract rebate to Participants that add
Customer and/or Professional liquidity in Penny Pilot Options and/or
Non-Penny Pilot Options above 0.30% to 0.40% of total industry customer
equity and ETF option ADV contracts per day in a month.
    The Exchange proposes to clarify the Tier 4 Customer and
Professional Penny Pilot Options Rebates to Add Liquidity by adding
rule text stating that Non-Penny Pilot Options as well as Penny Pilot
Options which add liquidity would qualify a Participant for a Tier 4
rebate. This is not an amendment to the tier, but rather a
clarification of the rule text. Additionally, the Exchange proposes to
amend the Tier 4 volume threshold by lowering the current requirement
of 0.5% or more of total industry customer equity and ETF options ADV
contracts per day in a month to above 0.40%. The Exchange believes that
the use of the word ``above'' brings greater clarity to the rule text.
With this amendment, the Exchange would continue to pay a $0.45 per
contract rebate to Participants that add Customer and/or Professional
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above
0.40% or more of total industry customer equity and ETF option ADV
contracts per day in a month.
    The Exchange proposes to amend the Tier 5 Customer and Professional
Penny Pilot Options Rebates to Add Liquidity to include Non-Penny Pilot
Options as of January 2, 2014 as Customer and/or Professional liquidity
that will count toward achieving the 25,000 or more

contracts per day in a month criteria in Tier 5. Today, the Exchange
pays a $0.42 per contract rebate to Participants that add (1) Customer
and/or Professional liquidity of 25,000 or more contracts per day in a
month, (2) the Participant has certified for the Investor Support
Program set forth in Rule 7014, and (3) the Participant executed at
least one order on NASDAQ's equity market. The Exchange would permit
Non-Penny Pilot Options in addition to Penny Pilot Options to count
toward arriving at the 25,000 or more contracts per day in a month
threshold for the first criteria of the three requisite criteria to
qualify for the Tier 5 rebate. The Exchange proposes to add the words
``in Penny Pilot Options'' to the rule text simply to clarify that
those types of contracts count toward the volume threshold today. This
would not be a substantive change to the rule text. The Exchange also
proposes to increase the rebate from $0.42 to $0.45 per contract to
further incentivize Participants to add liquidity, certify for the
Investor Support Program and execute orders on NASDAQ's equity market
to qualify for this rebate.
    The Exchange proposes to clarify that with respect to the Tier 6
Customer and Professional Penny Pilot Options Rebates to Add Liquidity
that Penny Pilot Options qualify a participant with respect to this
rebate tier. This is not an amendment to the Tier 6 rebate but rather
the addition of rule text to clarify that, as is the case today, only
Penny Pilot Options apply to this tier. Today, the Exchange pays a
$0.45 per contract rebate to Participants that have a Total Volume \6\
of 115,000 or more contracts per day in a month, of which 25,000 or
more contracts per day in a month must be Customer and/or Professional
liquidity in Penny Pilot Options. The Exchange proposes to lower the
Total Volume Threshold from 115,000 to 100,000 or more contracts per
day in a month, of which 25,000 or more contracts per day in a month
must be Customer and/or Professional liquidity. The Exchange believes
that lowering the Total Volume threshold will incentivize Participants
to direct liquidity to the Exchange.
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    \6\ ``Total Volume'' is defined as Customer, Professional, Firm,
Broker-Dealer, Non-NOM Market Maker and NOM Market Maker volume in
Penny Pilot Options and/or Non-Penny Pilot Options which either adds
or removes liquidity on NOM.
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    The Exchange proposes to clarify that with respect to the Tier 7
Customer and Professional Penny Pilot Options Rebates to Add Liquidity
that Penny Pilot Options qualify a participant with respect to this
rebate tier. This is not an amendment to the Tier 7 rebate but rather
the addition of rule text to clarify that, as is the case today, only
Penny Pilot Options apply to this tier. With this amendment, the
Exchange would continue to pay a $0.47 per contract rebate to
Participants that have a Total Volume of 150,000 or more contracts per
day in a month, of which 50,000 or more contracts per day in a month
must be Customer and/or Professional liquidity in Penny Pilot Options.
    The Exchange proposes to amend the Tier 8 Customer and Professional
Penny Pilot Options Rebates to Add Liquidity to eliminate one of the
two criteria which today qualifies a Participant to receive the Tier 8
rebate. Today, a Participant that has Total Volume of 200,000 or more
contracts per day in a month, of which 70,000 or more contracts per day
in a month must be Customer and/or Professional liquidity or (2) [sic]
adds Customer and/or Professional liquidity of 1.00% or more of
national customer volume in multiply-listed equity and ETF options
classes in a month qualifies for the $0.48 per contract rebate. The
Exchange will eliminate the Total Volume criteria as a means to qualify
for the Tier 8 rebate so that a Participant will no longer qualify for
the Tier 8 rebate by transacting Total Volume of 200,000 or more
contracts per day in a month, of which 70,000 or more contracts per day
in a month must be Customer and/or Professional liquidity. In addition,
the Exchange is amending the second criteria, which will be the only
criteria with this proposal to qualify for a Tier 8 rebate, by lowering
the Customer and/or Professional liquidity volume criteria from 1.00%
to 0.75% or more of national customer volume in multiply-listed equity
and ETF options classes in a month. With this proposal, a Participant
may qualify for the $0.48 per contract Tier 8 rebate by adding Customer
and/or Professional liquidity of 0.75% or more of national customer
volume in multiply-listed equity and ETF options classes in a month.
The Exchange believes that despite the fact that the first criteria is
being eliminated and Participants will no longer be able to add a
certain amount of Total Volume to qualify for the Tier 8 rebate,
Participants will continue to be incentivized to add Customer and/or
Professional liquidity because the Exchange is lowering the amount of
Customer and/or Professional volume necessary to qualify for the Tier 8
rebate. Additionally, the Exchange seeks to clarify the types of
transactions which qualify a Participant for this rebate tier. This is
not an amendment to the Tier 8 rebate but rather the addition of rule
text to clarify what types of transactions are applicable to qualify
for the rebate. As noted in the rule text at Chapter XV, Section 2,
with respect to the Customer and Professional Rebate to Add Liquidity
in Penny Pilot Options, the applicable percentage of total industry
customer equity and ETF option average daily volume includes the
Participant's Penny Pilot and Non-Penny Pilot Customer and/or
Professional volume that adds liquidity. The Exchange proposes to add
rule text to clarify that with respect to this second prong, which will
be the only prong, the Exchange proposes to state within the rule text
that, as is the case today, the Exchange will pay a $0.48 per contract
rebate to Participants that adds Customer and/or Professional liquidity
in Penny Pilot Options and/or Non-Penny Pilot Options of 0.75% or more
of national customer volume in multiply-listed equity and ETF options
classes in a month. The addition of this rule text to Tier 8 is not an
amendment but rather a clarification of the rule text.
Penny Pilot Options Fees for Removing Liquidity
    The Exchange proposes to increase the Professional, Firm, Non-NOM
Market Maker and Broker-Dealer Fees for Removing Liquidity in Penny
Pilot Options from $0.48 to $0.49 per contract. A Customer would
continue to be assessed $0.45 per contract. The Exchange believes that
despite these increases the Exchange remains competitive with respect
to these fees. Additionally, the Exchange proposes to offer
Participants that qualify for Customer or Professional Rebate to Add
Liquidity Tiers 7 or 8 in a given month the opportunity to lower the
Penny Pilot Option Fee for Removing Liquidity from the proposed $0.49
to $0.48 per contract. The Exchange proposes to add the following
language to the fee schedule, ``Participants that qualify for Customer
or Professional Rebate to Add Liquidity Tiers 7 or 8 in a given month
will be assessed a Professional, Firm, Non-NOM Market Maker or Broker-
Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.48 per
contract.'' The Exchange believes that this added incentive will
attract liquidity to NOM.
Customer and NOM Market Maker Fees for Removing Liquidity in Non-Penny
Pilot Options (including NDX) and NDX Surcharge
    The Exchange proposes to increase the Customer Fee for Removing
Liquidity in Non-Penny Pilot Options (including NDX) from $0.82 to
$0.85 per contract. The Exchange also proposes to

increase the NOM Market Maker Fee for Removing Liquidity from $0.86 to
$0.89 per contract in Non-Penny Pilot Options. Today Professionals,
Firms, Non-NOM Market Markets and Broker-Dealers pay an $0.89 per
contract Fee for Removing Liquidity in Non-Penny Pilot Options. Despite
the increase to the Customer and NOM Market Maker Fees for Removing
Liquidity in Non-Penny Pilot Options the Exchange believes that the
fees remain competitive.
    The Exchange currently assesses fees and pay rebates on NDX as a
Non-Penny Pilot Option. The Exchange currently assesses a surcharge to
all market participants, except Customers, for transactions in NDX of
$0.10 per contract. The surcharge is in addition to the Fees for Adding
and Removing Liquidity in Non-Penny Pilot Options. The Exchange
proposes to increase the NDX surcharge from $0.10 to $15 [sic] per
contract.
Customer Rebate To Add Liquidity in Non-Penny Pilot Options
    The Exchange currently pays a Customer an $0.81 per contract Non-
Penny Pilot Options Rebate to Add Liquidity. Further the Exchange
currently offers Participants that qualify for Customer or Professional
Rebate to Add Liquidity Tiers 7 or 8 in a given month an additional
$0.01 per contract Non-Penny Pilot Options Customer Rebate to Add
Liquidity for each transaction which adds liquidity in Non-Penny Pilot
Options in that month (``$0.01 Incentive''). The Exchange is proposing
to increase the current Customer Rebate to Add Liquidity in Non-Penny
Pilot Options from $0.81 to $0.84 per contract and eliminate the offer
of the $0.01 Incentive. The Exchange believes that the increased
Customer rebate will attract greater Customer liquidity to the Exchange
to the benefit of all market participants.
SOX, HGX and OSX
    The Exchange currently assesses Customers a Fee for Adding
Liquidity and a Fee for Removing Liquidity in SOX, HGX and OSX of $0.35
per contract. The Exchange proposes to increase the Customer Fees for
Adding and Removing Liquidity in SOX, HGX and OSX to $0.40 per
contract. The Exchange assesses NOM Market Makers a Fee for Adding
Liquidity and a Fee for Removing Liquidity in SOX, HGX and OSX of $0.40
per contract. These fees will remain unchanged. The Exchange assesses
Professionals, Firms, Non-NOM Market Makers and Broker-Dealers a Fee
for Adding and a Fee for Removing Liquidity in SOX, HGX and OSX of
$0.60 per contract. The Exchange is proposing to increase the
Professional, Firm, Non-NOM Market Maker and Broker-Dealer Fees for
Adding and Removing Liquidity in SOX, HGX and OSX to $0.89 per
contract. The Exchange believes that the proposed increased fees remain
competitive with other options fees at other exchanges.
2. Statutory Basis
    NASDAQ believes that its proposal to amend its Pricing Schedule is
consistent with Section 6(b) of the Act \7\ in general, and furthers
the objectives of Section 6(b)(4) and (b)(5) of the Act \8\ in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system which NASDAQ operates or
controls, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4), (5).
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Customer and Professional Penny Pilot Option Rebates To Add Liquidity
    The Exchange's proposal to clarify the rule text of the Customer
and Professional Rebates to Add Liquidity tiers by adding the phrase
``in Penny Pilot Options and/or Non-Penny Pilot Options'' is reasonable
because the Exchange currently determines the applicable percentage of
total industry customer equity and ETF option average daily volume by
including the Participant's Penny Pilot and Non-Penny Pilot Customer
and/or Professional volume that adds liquidity. The Exchange believes
that adding this language in Tiers 1, 2, 3, 4 and 8 of the Customer and
Professional Penny Pilot Options Rebate to Add Liquidity tiers will
clarify the rule text. Similarly, the Exchange's proposal to add the
phrase ``in Penny Pilot Options'' in Tiers 5, 6 and 7 is reasonable
because this language will also clarify the rule text and make clear
which types of transactions qualify a Participant for a rebate. These
amendments to the rule text are not substantive but rather serve to add
specific terms which apply today.
    The Exchange's proposal to clarify the rule text of the Customer
and Professional Rebates to Add Liquidity tiers by adding the phrase
``in Penny Pilot Options and/or Non-Penny Pilot Options'' in Tiers 1,
2, 3, 4 and 8 is equitable and not unfairly discriminatory because the
Exchange will pay rebates to all Participants that transact the
qualifying volume in a uniform manner. Similarly, the Exchange's
proposal to add the phrase ``in Penny Pilot Options'' in Tiers 5, 6 and
7 is equitable and not unfairly discriminatory because the Exchange
will pay rebates to all Participants that transact the qualifying
volume in a uniform manner.
    The Exchange's proposal to increase the Tier 2 Customer and
Professional Penny Pilot Options Rebate to Add Liquidity from $0.40 to
$0.42 per contract is reasonable because the increased rebate will
incentivize market participants to transact an even greater number of
qualifying Customer and/or Professional volume.
    The Exchange's proposal to increase the Tier 2 Customer and
Professional Penny Pilot Options Rebate to Add Liquidity from $0.40 to
$0.42 per contract is equitable and not unfairly discriminatory because
all eligible Participants that qualify for the Tier 2 Customer and
Professional Penny Pilot Options Rebate to Add Liquidity will be
uniformly paid the rebate.
    The Exchange's proposal to clarify the verbiage of the Tier 2
volume threshold by amending 0.21% to 0.30% of total customer equity
and ETF options ADV contracts per day in a month to above 0.20% to
0.30% is reasonable because the new verbiage clarifies the volume to
qualify for the Tier 2 rebate. The Exchange's proposal to amend the
Tier 2 volume threshold by amending 0.21% to 0.30% of total customer
equity and ETF options ADV contracts per day in a month to above 0.20%
to 0.30% is equitable and not unfairly discriminatory because all
eligible Participants that qualify for the Tier 2 Customer and
Professional Penny Pilot Options Rebate to Add Liquidity will continue
to be uniformly paid the rebate as they are today.
    The Exchange's proposal to amend the Tier 3 volume threshold by
lowering the 0.31% to 0.49% of total industry customer equity to above
0.30% to 0.40% of total customer equity and ETF options ADV contracts
per day in a month is reasonable because the Exchange is lowering the
tier which should permit those Participants that qualify for this
rebate today to continue to qualify for this rebate and allow
additional Participants to qualify for the Tier 4 rebate. The
Exchange's proposal to amend the Tier 3 volume threshold by lowering
the 0.31% to 0.49% of total industry customer equity to above 0.30% to
0.40% of total customer equity and ETF options ADV contracts per day in
a month is equitable and not unfairly discriminatory because all
eligible Participants that qualify for the Tier 3 Customer and
Professional Penny Pilot

Options Rebate to Add Liquidity will be uniformly paid the rebate.
    The Exchange's proposal to amend the Tier 4 volume threshold by
lowering the current requirement of 0.5% or more of total industry
customer equity and ETF options ADV contracts per day in a month to
above 0.40% is reasonable because the Exchange is lowering the tier
which may permit additional Participants to qualify for the Tier 4
rebate. Participants that currently qualify for the rebate should
continue to qualify. The Exchange's proposal to amend the Tier 4 volume
threshold by lowering the current requirement of 0.5% or more of total
industry customer equity and ETF options ADV contracts per day in a
month to above 0.40% is equitable and not unfairly discriminatory
because all eligible Participants that qualify for the Tier 4 Customer
and Professional Penny Pilot Options Rebate to Add Liquidity will be
uniformly paid the rebate.
    The Exchange believes that the use of the word ``above'' in the
amended rebate tiers is reasonable, equitable and not unfairly
discriminatory because it adds greater clarity to the rule text.
    The Exchange's proposal to amend Tier 5 to include Non-Penny Pilot
Options as of January 2, 2014 as Customer and/or Professional liquidity
that will count toward achieving the 25,000 or more contracts per day
in a month criteria in Tier 5 is reasonable because the Exchange
believes that by adding Non-Penny Pilot Options volume additional
Participants may qualify for a Tier 5 rebate. Today, only Penny Pilot
Options count toward arriving at the 25,000 or more contracts per day
in month threshold for the first of three criteria \9\ toward
qualifying for the Tier 5 rebate.\10\ The Exchange's proposal to
increase the rebate from $0.42 to $0.45 per contract is reasonable
because offering a greater rebate will further incentivize Participants
to add liquidity, certify for the Investor Support Program \11\ and
execute orders on NASDAQ's equity market to qualify for this rebate.
The Exchange's proposal to amend the Tier 5 to include Non-Penny Pilot
Options toward achieving the 25,000 or more contracts per day in a
month criteria in Tier 5 is equitable and not unfairly discriminatory
because all Participants that add either Penny Pilot or Non-Penny Pilot
volume will be able to qualify for the rebate. Additionally, the
Exchange's proposal to increase the rebate from $0.42 to $0.45 per
contract is equitable and not unfairly discriminatory because all
eligible Participants that qualify for the Tier 5 Customer and
Professional Penny Pilot Options Rebate to Add Liquidity will be
uniformly paid the increased rebate.
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    \9\ As noted above, the Exchange is adding the words ``in Penny
Pilot Options'' to clarify that today Penny Pilot Options to reflect
that today only those types of transactions count toward arriving at
the 25,000 or more threshold.
    \10\ With respect to Tier 5, the Exchange pays a $0.42 per
contract rebate to Participants that add (1) Customer and/or
Professional liquidity of 25,000 or more contracts per day in a
month, (2) the Participant has certified for the Investor Support
Program set forth in Rule 7014, and (3) the Participant executed at
least one order on NASDAQ's equity market.
    \11\ The Investor Support Program is set forth in NASDAQ Rule
7014.
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    The Exchange's proposal to lower the Total Volume Threshold in Tier
6 from 115,000 to 100,000 or more contracts per day in a month, of
which 25,000 or more contracts per day in a month must be Customer and/
or Professional liquidity is reasonable because the Exchange believes
that by lowering the volume threshold, additional Participants may
qualify for a Tier 6 rebate.\12\ The Exchange's proposal to lower the
Total Volume Threshold in Tier 6 from 115,000 to 100,000 or more
contracts per day in a month, of which 25,000 or more contracts per day
in a month must be Customer and/or Professional liquidity is equitable
and not unfairly discriminatory because all Participants that transact
100,000 or more contracts per day in a month, of which 25,000 or more
contracts per day in a month must be Customer and/or Professional
liquidity will be eligible for the Tier 6 rebate. The Exchange will
apply the rebate in a uniform manner.
---------------------------------------------------------------------------

    \12\ Today, the Exchange pays a $0.45 per contract rebate to
Participants that have a Total Volume of 115,000 or more contracts
per day in a month, of which 25,000 or more contracts per day in a
month must be Customer and/or Professional liquidity in Penny Pilot
Options. Total Volume is defined as Customer, Professional, Firm,
Broker-Dealer, Non-NOM Market Maker and NOM Market Maker volume in
Penny Pilot Options and/or Non-Penny Pilot Options which either adds
or removes liquidity on NOM.
---------------------------------------------------------------------------

    The Exchange's proposal to amend the Tier 8 Customer and
Professional Penny Pilot Options Rebate to Add Liquidity to eliminate
one of the two criteria \13\ which today qualifies a Participant to
receive the Tier 8 rebate is reasonable because the Exchange believes
that the remaining criteria will encourage Participants to add more
Customer and Professional liquidity versus Total Volume \14\ and
Participants benefit from Customer and Professional liquidity.\15\
Customer volume is important because it continues to attract liquidity
to the Exchange, which benefits all market participants. Further, with
respect to Professional liquidity, the Exchange initially established
Professional pricing in order to ``. . . bring additional revenue to
the Exchange.'' \16\ The Exchange noted in the Professional Filing that
it believes ``. . . that the increased revenue from the proposal would
assist the Exchange to recoup fixed costs.'' \17\ Further, the Exchange
noted in that filing that it believes that establishing separate
pricing for a Professional, which ranges between that of a Customer and
market maker, accomplishes this objective.\18\ In addition, the
Exchange's proposal amends the second criteria, which would be the only
criteria with this proposal to qualify for a Tier 8 rebate, by lowering
the Customer and/or Professional liquidity volume criteria from 1.00%
to 0.75% or more of national customer volume in multiply-listed equity
and ETF options classes in a month.\19\ The Exchange believes that
lowering this volume threshold from 1.00% to 0.75% or more of national
customer volume in multiply-listed equity and ETF options classes in a
month is reasonable because it will permit additional Participants to
qualify for the Tier 8 rebate. The Exchange's

proposal to amend the Tier 8 Customer and Professional Penny Pilot
Options Rebate to Add Liquidity to eliminate one of the two criteria
\20\ which today qualifies a Participant to receive the Tier 8 rebate
is equitable and not unfairly discriminatory because the Exchange will
apply the criteria in a uniform manner. The Exchange believes that
lowering this volume threshold from 1.00% to 0.75% or more of national
customer volume in multiply-listed equity and ETF options classes in a
month is equitable and not unfairly discriminatory because the amended
remaining criteria will be applied to all Participants in a uniform
manner.
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    \13\ A Participant will no longer qualify for the Tier 8 rebate
by transacting Total Volume of 200,000 or more contracts per day in
a month, of which 70,000 or more contracts per day in a month must
be Customer and/or Professional liquidity.
    \14\ Total Volume is defined as Customer, Professional, Firm,
Broker-Dealer, Non-NOM Market Maker and NOM Market Maker volume in
Penny Pilot Options and/or Non-Penny Pilot Options which either adds
or removes liquidity on NOM.
    \15\ Today, a Participant that has Total Volume of 200,000 or
more contracts per day in a month, of which 70,000 or more contracts
per day in a month must be Customer and/or Professional liquidity or
(2) [sic] adds Customer and/or Professional liquidity of 1.00% or
more of national customer volume in multiply-listed equity and ETF
options classes in a month qualifies for the $0.48 per contract
rebate.
    \16\ See Securities Exchange Act Release No. 64494 (May 13,
2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066)
(``Professional Filing''). In this filing, the Exchange addressed
the perceived favorable pricing of Professionals who were assessed
fees and paid rebates like a Customer prior to the filing. The
Exchange noted in that filing that a Professional, unlike a retail
Customer, has access to sophisticated trading systems that contain
functionality not available to retail Customers.
    \17\ See Securities Exchange Act Release No. 64494 (May 13,
2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066).
    \18\ See Securities Exchange Act Release No. 64494 (May 13,
2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066) The Exchange
also in the Professional Filing that it believes the role of the
retail Customer in the marketplace is distinct from that of the
Professional and the Exchange's fee proposal at that time accounted
for this distinction by pricing each market participant according to
their roles and obligations.
    \19\ With this proposal, a Participant may qualify for the $0.48
per contract Tier 8 rebate by adding Customer and/or Professional
liquidity of 0.75% or more of national customer volume in multiply-
listed equity and ETF options classes in a month.
    \20\ A Participant will no longer qualify for the Tier 8 rebate
by transacting Total Volume of 200,000 or more contracts per day in
a month, of which 70,000 or more contracts per day in a month must
be Customer and/or Professional liquidity.
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Penny Pilot Options Fees for Removing Liquidity
    The Exchange's proposal to increase the Professional, Firm, Non-NOM
Market Maker and Broker-Dealer Fees for Removing Liquidity in Penny
Pilot Options from $0.48 to $0.49 per contract is reasonable because
the Exchange is seeking to increase certain Penny Pilot Options Rebates
to Add Liquidity to attract additional order flow to NOM. The
Exchange's ability to offer increased Customer and Professional Penny
Pilot Options rebates is possible with a corresponding increase to the
Professional, Firm, Non-NOM Market Maker and Broker-Dealer Fees for
Removing Liquidity in Penny Pilot Options. The Exchange believes that
this fees remain within the range of fees assessed by other options
exchanges.\21\
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    \21\ BATS Exchange, Inc., Topaz Exchange, LLC or ``Gemini'' and
NYSE Arca, Inc. has comparable fees.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the Professional, Firm, Non-NOM
Market Maker and Broker-Dealer Fees for Removing Liquidity in Penny
Pilot Options from $0.48 to $0.49 per contract is equitable and not
unfairly discriminatory because the Exchange is uniformly increased
non-Customer Fees for Removing Liquidity in Penny Pilot Options.
Customers will continue to be assessed the lowest Fees for Removing
Liquidity in Penny Pilot Options. In this case, a Customer would
continue to be assessed $0.45 per contract. Customer liquidity is
unique because the liquidity it attracts benefits all market
participants. Customer liquidity benefits all market participants by
providing more trading opportunities, which attract Specialists and
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
    The Exchange's proposal to offer non-Customer Participants the
ability to lower the Fees for Removing Liquidity in Penny Pilot Options
from $0.49 to $0.48 per contract by qualifying for Customer or
Professional Rebate To Add Liquidity Tiers 7 or 8 in a given month \22\
is reasonable because the Exchange is seeking to offer these non-
Customer Participants to lower the increased Fees for Removing
Liquidity in Penny Pilot Options by adding liquidity to the
Exchange.\23\
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    \22\ The Exchange proposes to add the following language to the
fee schedule, ``Participants that qualify for Customer or
Professional Rebate to Add Liquidity Tiers 7 or 8 in a given month
will be assessed a Professional, Firm, Non-NOM Market Maker or
Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of
$0.48 per contract.''
    \23\ For purposes of Tier 7, Participants may add Customer,
Professional, Firm, Broker-Dealer, Non-NOM Market Maker and NOM
Market Maker volume in Penny Pilot Options and/or Non-Penny Pilot
Options and for purposes of Tier 8, Participants may add Customer or
Professional liquidity in Penny Pilot or Non-Penny Pilot Options.
---------------------------------------------------------------------------

    The Exchange's proposal to offer non-Customer Participants the
ability to lower the Fees for Removing Liquidity in Penny Pilot Options
from $0.49 to $0.48 per contract by qualifying for Customer or
Professional Rebate To Add Liquidity Tiers 7 or 8 in a given month \24\
is equitable and not unfairly discriminatory because all non-Customer
Participants would be provided the opportunity to lower Fees for
Removing Liquidity in Penny Pilot Options. Customers are assessed a
lower Fee for Removing Liquidity in Penny Pilot Options, $0.45 per
contract, and therefore the Exchange believes that offering all
Participants that incur a higher Fee for Removing Liquidity in Penny
Pilot Options, $0.89 per contract, is equitable and not unfairly
discriminatory.
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    \24\ The Exchange proposes to add the following language to the
fee schedule, ``Participants that qualify for Customer or
Professional Rebate to Add Liquidity Tiers 7 or 8 in a given month
will be assessed a Professional, Firm, Non-NOM Market Maker or
Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of
$0.48 per contract.''
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Customer and NOM Market Maker Fees for Removing Liquidity in Non-Penny
Pilot Options (including NDX) and NDX Surcharge
    The Exchange's proposal to increase the Customer Fee for Removing
Liquidity from $0.82 to $0.85 per contract in Non-Penny Pilot Options
is reasonable because the Exchange is seeking to increase certain Penny
Pilot Options Rebates to Add Liquidity to attract additional order flow
to NOM. The Exchange is permitting both Penny Pilot and Non-Penny Pilot
Options to count toward qualifying for various Customer and
Professional Penny Pilot Options Rebates to Add Liquidity. Today,
Customers are assessed the lowest Fee for Removing Liquidity in Non-
Penny Pilot Options of $0.82 per contract. Other market participants,
Professionals, Firms, Non-NOM Market Makers, NOM Market Makers (as
proposed herein) and Broker-Dealers, are assessed $0.89 per contract.
Customers would continue to be assessed the lowest fees.
    The Exchange's proposal to increase the Customer Fee for Removing
Liquidity from $0.82 to $0.85 per contract in Non-Penny Pilot Options
is equitable and not unfairly discriminatory because the Exchange would
continue to assess Customers the lowest Fee for Removing Liquidity in
Non-Penny Pilot Options because Customer liquidity brings unique
benefits to the market. Customer liquidity benefits all market
participants by providing more trading opportunities, which attract
Specialists and Market Makers. An increase in the activity of these
market participants in turn facilitates tighter spreads, which may
cause an additional corresponding increase in order flow from other
market participants.
    The Exchange's proposal to increase the NOM Market Maker Fee for
Removing Liquidity from $0.86 to $0.89 per contract in Non-Penny Pilot
Options is reasonable because the Exchange is seeking to increase
certain Penny Pilot Options Rebates to Add Liquidity to attract
additional order flow to NOM. The Exchange is permitting both Penny
Pilot and Non-Penny Pilot Options to count toward qualifying for
various Customer and Professional Penny Pilot Options Rebates to Add
Liquidity.
    The Exchange's proposal to increase the NOM Market Maker Fee for
Removing Liquidity from $0.86 to $0.89 per contract in Non-Penny Pilot
Options is equitable and not unfairly discriminatory because the
Exchange would uniformly assess all non-Customers a Non-Penny Pilot
Options Fee for Removing Liquidity of $0.89 per contract. Customers
would be assessed the lowest Non-Penny Pilot Options Fee for Removing
Liquidity of $0.85 per contract with this proposal. Customer order flow
is unique because it attracts liquidity which in turn benefits all
market participants.
    The Exchange's proposal to increase the NDX surcharge applicable to
all market participants, except Customers, is reasonable because the
Exchange

currently pays a license fee \25\ to list NDX on NOM and is seeking to
recoup a larger portion of that fee.\26\
---------------------------------------------------------------------------

    \25\ NOM is assessed a license fee of $0.22 per contract to list
NDX.
    \26\ Non-Penny Pilot Options, other than NDX, are not subject to
a license fee.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the NDX surcharge applicable to
all market participants, except Customers, is equitable and not
unfairly discriminatory because all market participants, except
Customers, will uniformly be assessed the NDX surcharge in addition to
the Non-Penny Pilot Options Fees for Adding and Removing Liquidity.
Customers are typically not assessed surcharge fees related to
licenses. The Exchange has not assessed such fees to Customers because
Customer liquidity brings unique benefits to the market in terms of
liquidity which in turn benefits other market participants.
Customer Rebate To Add Liquidity in Non-Penny Pilot Options
    The Exchange's proposal to increase the Customer Non-Penny Pilot
Options Rebate to Add Liquidity from $0.81 to $0.84 per contract and
eliminate the offer of the $0.01 Incentive \27\ is reasonable because
the Exchange believes that offering Customers the opportunity to earn
the higher rebate will attract more liquidity to the Exchange. Further,
even assuming Customers received the $0.01 Incentive, the increased
rebate would be higher going forward and thereby providing a greater
incentive to these Participants.
---------------------------------------------------------------------------

    \27\ The Exchange currently offers Participants that qualify for
Customer or Professional Rebate to Add Liquidity Tiers 7 or 8 in a
given month an additional $0.01 per contract Non-Penny Pilot Options
Customer Rebate to Add Liquidity for each transaction which adds
liquidity in Non-Penny Pilot Options in that month.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the Customer Non-Penny Pilot
Options Rebate to Add Liquidity from $0.81 to $0.84 per contract and
eliminate the offer of the $0.01 Incentive \28\ is equitable and not
unfairly discriminatory because the Exchange will offer all Customers
the opportunity to receive the higher rebate. Customers are the only
market participants eligible to receive a Rebate to Add Liquidity in
Non-Penny Pilot Options. The Exchange believes that offering this
rebate only to Customers is equitable and not unfairly discriminatory
because unlike other market participants, Customer liquidity brings
unique benefits to the market in terms of liquidity which in turn
benefits other market participants.
---------------------------------------------------------------------------

    \28\ The Exchange currently offers Participants that qualify for
Customer or Professional Rebate to Add Liquidity Tiers 7 or 8 in a
given month an additional $0.01 per contract Non-Penny Pilot Options
Customer Rebate to Add Liquidity for each transaction which adds
liquidity in Non-Penny Pilot Options in that month.
---------------------------------------------------------------------------

SOX, HGX and OSX
    The Exchange's proposal to increase the Customer Fees for Adding
and Removing Liquidity in SOX, HGX and OSX from $0.35 to $0.40 per
contract is reasonable because although the fee is being increased,
Customers will continue to be assessed lower fees as compared to other
market participants, except NOM Market Makers, which should continue to
incentivize Customers to transact options in SOX, HGX and OSX. The
Exchange's proposal to increase Professional, Firm, Non-NOM Market
Maker and Broker-Dealer Fees for Adding and Removing Liquidity in SOX,
HGX and OSX from $0.60 to $0.89 per contract is reasonable because the
Exchange will assess these market participants, other than Customers
and NOM Market Makers, fees similar to those assessed for Non-Penny
Pilot Fees for Removing Liquidity. The Exchange believes that the
proposed increased fees remain competitive with other options fees at
other exchanges.
    The Exchange's proposal to increase the Customer Fees for Adding
and Removing Liquidity in SOX, HGX and OSX from $0.35 to $0.40 per
contract is equitable and not unfairly discriminatory because Customers
and NOM Market Makers each bring benefits to the market. The Exchange
believes that Customer order flow brings unique benefits to the market
which benefits all market participants through increased liquidity. NOM
Market Makers have obligations to the market and regulatory
requirements,\29\ which normally do not apply to other market
participants. A NOM Market Maker has the obligation to make continuous
markets, engage in a course of dealings reasonably calculated to
contribute to the maintenance of a fair and orderly market, and not
make bids or offers or enter into transactions that are inconsistent
with a course of dealings. The proposed differentiation as between
Customers and NOM Market Makers and other market participants
recognizes the differing contributions made to the liquidity and
trading environment on the Exchange by Customers and NOM Market Makers,
as well as the differing mix of orders entered.
---------------------------------------------------------------------------

    \29\ Pursuant to Chapter VII (Market Participants), Section 5
(Obligations of Market Makers), in registering as a market maker, an
Options Participant commits himself to various obligations.
Transactions of a Market Maker in its market making capacity must
constitute a course of dealings reasonably calculated to contribute
to the maintenance of a fair and orderly market, and Market Makers
should not make bids or offers or enter into transactions that are
inconsistent with such course of dealings. Further, all Market
Makers are designated as specialists on NOM for all purposes under
the Act or rules thereunder. See Chapter VII, Section 5.
---------------------------------------------------------------------------

    The Exchange's proposal to increase Professional, Firm, Non-NOM
Market Maker and Broker-Dealer Fees for Adding and Removing Liquidity
in SOX, HGX and OSX from $0.60 to $0.89 per contract is equitable and
not unfairly discriminatory because the Exchange is proposing to
uniformly assess all market participants, other than Customers and NOM
Market Makers, uniform Fees for Adding and Removing Liquidity in SOX,
HGX and OSX.

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

    NASDAQ 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. The Exchange believes that increasing the
Tier 2 Customer and Professional Rebates to Add Liquidity in Penny
Pilot Options will incentivize market participants to send additional
Customer and/or Professional order flow to the Exchange. The Exchange
also believes that lowering certain volume thresholds in Tiers 3, 4, 6
and 8 will also incentivize market participants to send additional
Customer and/or Professional order flow to the Exchange. The Exchange's
increase of the Tiers 2 and 5 rebates should also attract additional
order flow to the Exchange and in turn promote competition. Finally,
the Exchange's elimination of certain criteria to the Tier 8 rebate
should encourage additional Customer and/or Professional order flow to
the Exchange. Customer liquidity offers unique benefits to the market
which benefits all market participants. Customer liquidity benefits all
market participants by providing more trading opportunities, which
attract Specialists and Market Makers. An increase in the activity of
these market participants in turn facilitates tighter spreads, which
may cause an additional corresponding increase in order flow from other
market participants. The Exchange believes that encouraging
Participants to add Professional liquidity creates competition among
options exchanges because the Exchange believes that the rebates may
cause market participants to select NOM as a venue to send Professional
order flow. The Exchange is offering to pay increased rebates in
exchange for additional Professional order flow being executed at the

Exchange, which additional order flow should benefit other market
participants.
    The Exchange believes that the increases to the non-Customer Penny
Pilot Options Fees for Removing Liquidity do not create an undue burden
on competition as the Exchange will uniformly assess non-Customers the
same Fees for Removing Liquidity in Penny Pilot Options and offer these
Participants the opportunity to reduce these fees by adding liquidity
to the Exchange and qualifying for certain Customer and/or Professional
rebates.
    The increases to the Customer and NOM Market Maker Non-Penny Pilot
Fees for Removing Liquidity should not create an undue burden on
competition. Non-Customer Participants will be assessed a uniform fee
and Customers will continue to earn a lower fee because Customer
liquidity offers unique benefits to the market which benefits all
market participants. Also, the increased NDX surcharge applicable to
all non-Customer market participants will be applied in a uniform
manner. Customers will continue to not pay the surcharge.
    The increase to the Customer Rebate to Add Liquidity in Non-Penny
Pilot Options and elimination of the $0.01 Incentive does not create an
undue burden on competition because market participants will be offered
a higher Customer rebate with the increase as compared to the $0.81 per
contract rebate plus the $0.01 Incentive.
    Finally, the Exchange's proposal to increase the Fees for Adding
and Removing Liquidity in SOX, HGX and OSX for all market participants,
except NOM Market Makers, does not create an undue burden on
competition. The Exchange is assessing the lowest fees to Customers and
NOM Market Makers because Customer order flow brings unique benefits to
the market which benefits all market participants through increased
liquidity and NOM Market Makers have obligations to the market and
regulatory requirements,\30\ which normally do not apply to other
market participants. The proposed amendments do not misalign the
current rebate structure because Customers and NOM Market Makers will
continue to be assessed lower fees as compared to Professionals, Firms,
Non-NOM Market Makers and Broker-Dealers who will be assessed a uniform
fee.
---------------------------------------------------------------------------

    \30\ Pursuant to Chapter VII (Market Participants), Section 5
(Obligations of Market Makers), in registering as a market maker, an
Options Participant commits himself to various obligations.
Transactions of a Market Maker in its market making capacity must
constitute a course of dealings reasonably calculated to contribute
to the maintenance of a fair and orderly market, and Market Makers
should not make bids or offers or enter into transactions that are
inconsistent with such course of dealings. Further, all Market
Makers are designated as specialists on NOM for all purposes under
the Act or rules thereunder. See Chapter VII, Section 5.
---------------------------------------------------------------------------

    The Exchange operates in a highly competitive market comprised of
twelve U.S. options exchanges in which many sophisticated and
knowledgeable market participants can readily and do send order flow to
competing exchanges if they deem fee levels or rebate incentives at a
particular exchange to be excessive or inadequate. These market forces
support the Exchange belief that the proposed rebate structure and
tiers proposed herein are competitive with rebates and tiers in place
on other exchanges. The Exchange believes that this competitive
marketplace continues to impact the rebates present on the Exchange
today and substantially influences the proposals set forth above.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\31\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-NASDAQ-2014-002 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2014-002. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of NASDAQ. 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-NASDAQ-2014-002 and should
be submitted on or before February 11, 2014.
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-01031 Filed 1-17-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 39 (Tuesday, February 28, 2023)]
[Notices]
[Pages 12718-12720]
[FR Doc No: 2023-04037]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2022-0045]

Agency Information Collection Activities; Submission to the
Office of Management and Budget for Review and Approval; Request for
Comment; Influence of Drivers' Internal Reasoning on Speeding

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

ACTION: Notice and request for comments on a proposed collection of
information.

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

SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA),
this notice announces that the Information Collection Request (ICR)
summarized below will be submitted to the Office of Management and
Budget (OMB) for review and approval. The ICR describes the nature of
the information collection and its expected burden. This ICR is for a
new collection of information for which NHTSA intends to seek OMB
approval for a one-time voluntary survey of licensed drivers regarding
speeding. A Federal Register Notice with a 60-day comment period
soliciting comments on the following information collection was
published on October 25, 2022. NHTSA received comments from one
organization and two individuals, which we address below.

DATES: Comments must be submitted on or before March 30, 2023.

ADDRESSES: Written comments and recommendations for the proposed
information collection, including suggestions for reducing burden,
should be submitted to the Office of Management and Budget at
www.reginfo.gov/public/do/PRAMain. To find this particular information
collection, select ``Currently under Review--Open for Public Comment''
or use the search function.

FOR FURTHER INFORMATION CONTACT: For additional information or access
to background documents, contact Stacy Jeleniewski, Ph.D., Office of
Behavioral Safety Research (NPD-310),<PHONE_NUMBER> (office), (202)
981-3173 (cell), [email protected], National Highway Traffic
Safety Administration, W46-491, 1200 New Jersey Avenue SE, Washington,
DC 20590.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.), a
Federal agency must receive approval from the Office of Management and
Budget (OMB) before it collects certain information from the public,
and a person is not required to respond to a collection of information
by a Federal agency unless the collection displays a valid OMB control
number. In compliance with these requirements, this notice announces
that the following information collection request will be submitted to
OMB.
    Title: Influence of Drivers' Internal Reasoning on Speeding.
    OMB Control Number: New.
    Form Number: NHTSA Form 1659.
    Type of Request: Approval of a New Information Collection.
    Type of Review Requested: Regular.
    Length of Approval Requested: Three years from date of approval.
    Summary of the Collection of Information: NHTSA is seeking approval
to conduct a survey of 1,500 licensed drivers in Washington State age
18 and older regarding speeding. The study will coordinate with the
Washington Traffic Safety Commission and Washington Department of
Licensing to survey drivers in the State who received one or more
speeding convictions in the last three years and drivers not convicted
of speeding in that same time-frame. Participation in the study will be
voluntary. The study will use a self-administered web-based survey with
a paper survey option available. The survey will include general and
speeding-specific questions about moral reasoning (judgments about
rightfulness and wrongfulness), legal reasoning (judgments about
lawfulness and unlawfulness), and attitudes and perceptions of laws,
enforcement, and sanctions. Past speeding behavior and intent to speed
in the future will also be assessed.
    In conducting the proposed research, the survey will use computer-
assisted web interviewing (i.e., a programmed, self-administered, web
survey) to facilitate ease of use and maximize data accuracy. Although
web will be the primary data collection mode, a paper questionnaire
will be sent to households that do not respond to the web invitations.
The proposed survey will be anonymous, and the survey will not collect
any personal identifying information. This collection only requires
respondents to report their answers; there are no record-keeping costs
to the respondents. Individuals receiving a survey invitation will
receive compensation in return for their activities.
    The results of this research will assist NHTSA in better
understanding how to develop successful programs to improve driver
safety. The technical report will be distributed to a variety of
audiences interested in improving highway safety. This collection will
inform the development of countermeasures, particularly in the areas of
communications and outreach intended to reduce speeding.
    Description of the Need for the Information and Proposed Use of the
Information: NHTSA was established to reduce the number of deaths,
injuries, and economic losses resulting from motor vehicle crashes on
the Nation's highways. As part of this statutory mandate, NHTSA is
authorized to conduct research as a foundation for the development of
traffic safety programs. Title 23, United States Code, Section 403
gives the Secretary of Transportation (NHTSA by delegation)
authorization to use funds appropriated to conduct research and
development activities, including demonstration projects and the
collection and analysis of highway and motor vehicle safety data and
related information, with respect to all aspects of highway and traffic
safety systems and conditions relating to vehicle, highway, driver,
passenger, motorcyclist, bicyclist, and pedestrian characteristics;
crash causation and investigations; and human behavioral factors and
their effect on highway and traffic safety. Speeding behavior is an
area for which NHTSA has developed comprehensive programs to meet its
injury reduction goals. The major components of speeding safety
programs are education, enforcement, and outreach, with legislative
efforts added to the mix.
    Speeding continues to be a major safety problem. In 2019, speeding
was a contributing factor in 26% of fatal, 12% of injury, and 9% of
property-damage-only crashes. Motor vehicle crashes in 2019 where at
least one driver was speeding accounted for 9,478 fatalities. That same
year, 326,000 people were injured in speeding-related traffic

crashes.\1\ To address this safety problem, NHTSA has provided State
Highway Safety Offices and safety advocates with information on
attitudes and behaviors of drivers who speed, including changes across
time, and classified speeder types.2 3 NHTSA is continuing
these efforts and attempting to assist the development of more tailored
countermeasures by conducting this new study to evaluate additional
psychological factors that may predict speeding behavior.
---------------------------------------------------------------------------

    \1\ National Center for Statistics and Analysis. (2021,
October). Speeding: 2019 data (Traffic Safety Facts. Report No. DOT
HS 813 194). National Highway Traffic Safety Administration.
    \2\ Richard, C.M., Campbell, J.L., Lichty, M.G., Brown, J.L.,
Chrysler, S., Lee, J.D., Boyle, L., & Reagle, G. (2012, August).
Motivations for speeding, Volume I: Summary report. (Report No. DOT
HS 811 658). Washington, DC: National Highway Traffic Safety
Administration.
    \3\ Schroeder, P., Kostyniuk, L., & Mack, M. (2013, December).
2011 National Survey of Speeding Attitudes and Behaviors. (Report
No. DOT HS 811 865). Washington, DC: National Highway Traffic Safety
Administration.
---------------------------------------------------------------------------

    In order to design countermeasures that address directly the
factors that influence speeding behavior and intention to engage in
this behavior, it is necessary to understand as much as possible about
the internal reasoning of drivers who speed. Insight into factors such
as judgments about whether speeding is morally right or wrong and
perceptions of the legitimacy of the speed laws, enforcement, and
sanctions can help to develop tailored and effective interventions.
This study will examine these factors by conducting a survey of
speeders and non-speeders. NHTSA will use the findings to assist
States, localities, and communities in developing and refining
countermeasures that will aid in their efforts to reduce speeding
behavior and speeding-related crashes and injuries.
    NHTSA will disseminate the information from this study in a
technical report. The technical report will provide aggregate (summary)
statistics and tables as well as the results of statistical analysis of
the information, but it will not include any personally identifiable
information (PII). The technical report will be shared with State
highway offices, local governments, and those who develop traffic
safety communications that aim to reduce speeding behavior and
speeding-related crashes.
    60-Day Notice: A Federal Register notice with a 60-day comment
period soliciting public comments on the described information
collection was published on October 25, 2022 (87 FR 64536). One
organization, the Texas Department of Transportation (TxDOT), and two
individuals provided comments. The individual comments were
descriptions regarding the personal motivations of the writers for
speeding and their own perceived risk on roadways. TxDOT expressed
support for the project and recommended that the scope be expanded to
include additional States, including Texas. TxDOT also inquired what
roadway types will be the focus of the study.
    In response to TxDOT's recommendation to include multiple States,
at present the study is delimited to a single State to yield uniformity
in traffic laws. If it should become of interest to expand the scope to
multiple States, the willingness of Texas to participate will be
considered. In response to the specific roadway types of interest to
the study, the study is designed to cover essentially the full range of
driving situations so all roadway types are included.
    Affected Public: Participants are eligible for the survey if they
are (1) licensed drivers in the State of Washington at the time the
sample is drawn; (2) age 18 and older; (3) randomly selected from the
total drivers in Washington State in three groups based on the number
of speeding convictions on their driver record (0; 1; and 2+).
    Estimated Number of Respondents: Participation in this study will
be voluntary. The study anticipates contacting up to 4,545 adult
licensed drivers from Washington State to obtain a target sample of
1,500 completed surveys.
    Frequency: The study will be conducted one time during the three-
year period for which NHTSA is requesting approval.
    Estimated Total Annual Burden Hours: NHTSA estimates the
approximate time to complete the survey is 20 minutes per participant.
Details of the burden hours for each wave in the survey are included in
Table 1 below. When rounded up to the nearest whole hour for each data
collection effort, the total estimated annual burden from the project
activities for 1,500 participants is 501 hours.
BILLING CODE 4910-59-P

[GRAPHIC] [TIFF OMITTED] TN28FE23.014

    Estimated Total Annual Burden Cost: Participation in this study is
voluntary, and there are no costs to respondents beyond the time spent
completing the questionnaires.
    Public Comments Invited: You are asked to comment on any aspects of
this information collection, including (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information, including the
validity of the methodology and assumptions used; (c) ways to enhance
the quality, utility and clarity of the information to be collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including the use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology, e.g., permitting electronic submission of
responses.
    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C. chapter
35, as amended; 49 CFR 1.49; and DOT Order 1351.29A.

Nanda Narayanan Srinivasan,
Associate Administrator, Research and Program Development.
[FR Doc. 2023-04037 Filed 2-27-23; 8:45 am]
BILLING CODE 4910-59-C


[Federal Register Volume 85, Number 149 (Monday, August 3, 2020)]
[Rules and Regulations]
[Pages 46536-46538]
[FR Doc No: 2020-16538]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2020-0439]
RIN 1625-AA00

Safety Zone; Port Huron Float Down, St. Clair River, Port Huron,
MI

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing a temporary safety zone on the
waters of the St. Clair River in the vicinity of Port Huron, MI. This
zone is intended to restrict and control movement of vessels in a
portion of the St. Clair River. Though this is an unsanctioned, non-
permitted marine event, this zone is necessary to provide for the
safety of life on the navigable waters during a float down event near
Port Huron, MI.

DATES: This temporary final rule is effective from 12 noon through 8
p.m. on August 16, 2020.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to http://www.regulations.gov, type USCG-
2020-0439 in the ``SEARCH'' box and click ``SEARCH.'' Click on Open
Docket Folder on the line associated with this rule.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary rule, call or email Tracy Girard, Prevention Department,
Sector Detroit, Coast Guard; telephone<PHONE_NUMBER>, or email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

 I. Table of Abbreviations

CFR Code of Federal Regulations
COTP Captain of the Port Detroit
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    During the afternoon of August 16, 2020, a non-sanctioned public
event is scheduled to take place. The event is advertised over various
social-media sites, in which a large number of persons float down a
segment of the St. Clair River, using inner tubes and other similar
floatation devices. The 2020 float down event will occur between
approximately 12 noon and 8 p.m. on August 16, 2020. This non-
sanctioned event has taken place in the month of August annually since
2009.
    No private or municipal entity requested a marine event permit from
the Coast Guard for this event, and it has not received state or
federal permits since its inception. The event has drawn over 5,000
participants of various ages annually. Despite plans put together by
federal, state and local officials, emergency responders and law
enforcement officials have been overburdened pursuing safety during
this event. Medical emergencies, people drifting across the
international border, and people trespassing on residential property
when trying to get out of the water before the designated finish line
are some of the numerous difficulties encountered during the float down
event.
    During the 2014 float-down event, a 19-year-old participant died.
During the 2016 float down, a wind shift caused thousands of U.S.
citizen rafters with no passports to drift into Canadian waters. The
current and wind made it impossible for the rafters to paddle back into
U.S. waters, necessitating significant coordination with the Canadian
authorities. Despite these events, promotional information for the
event continues to be published. More than 5,000 people are again
anticipated to float down the river this year. No public or private
organization holds themselves responsible as the event sponsor.
    The Coast Guard is issuing this temporary rule without prior notice
and opportunity to comment pursuant to authority under section 4(a) of
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b) (B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because doing so would be impracticable. The
Coast Guard did not receive the final details of this float down event
in time to publish an NPRM. As such, it is impracticable to publish an
NPRM because we lack sufficient time to provide a reasonable comment
period and then consider those comments before issuing the rule.
Moreover, delaying the effective date of this rule to wait for a
comment period to run would be impracticable and contrary to the public
interest because it would inhibit the Coast Guard's ability to protect
the public and vessels from the hazards associated with the float down
event.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying the effective date of
this rule would be contrary to public interest because prompt action is
needed to protect the public and participants in this event on August
16, 2020.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 46 U.S.C.
70034 (previously 33 U.S.C. 1231). The Captain of the Port Detroit
(COTP) has determined the float down poses significant risk to public
safety and property from 12 noon through 8 p.m. on August 16, 2020. The
likely combination of large numbers of participants, strong river
currents, limited rescue resources, and difficult emergency response
scenarios could easily result in serious injuries or fatalities to
float down participants and spectators. Therefore, the COTP is
establishing a safety zone around the event location to help minimize
risks to safety of life and property during this event.

IV. Discussion of the Rule

    This rule establishes a safety zone from 12 noon through 8 p.m. on
August 16, 2020. The safety zone will begin at Lighthouse Beach and
encompass all

U.S. waters of the St. Clair River bound by a line starting at a point
on land north of Coast Guard Station Port Huron at position
43[deg]00.416' N; 082[deg]25.333' W, extending east to the
international boundary to a point at position 43[deg]00.416' N;
082[deg]25.033' W, following south along the international boundary to
a point at position 42[deg]54.500' N; 082[deg]27.683' W, extending west
to a point on land just north of Stag Island at position 42[deg]54.500'
N; 082[deg]27.966' W, and following north along the U.S. shoreline to
the point of origin (NAD 83). No vessel or person will be permitted to
enter the safety zone without obtaining permission from the COTP or a
designated representative. Vessel operators must contact the COTP or
his or her on-scene representative to obtain permission to transit
through this safety zone. Additionally, no one under the age of 18 will
be permitted to enter the safety zone if they are not wearing a Coast
Guard approved personal floatation device. The COTP or his or her on-
scene representative may be contacted via VHF Channel 16.

V. Regulatory Analyses

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

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 size,
location, duration, and time-of-year of the safety zone. Vessel traffic
will not be able to safely transit around this safety zone which will
impact a small designated area of the St. Clair River from 12 noon
until 8 p.m. on August 16, 2020. Moreover, the Coast Guard will issue
Broadcast Notice to Mariners (BNM) via VHF-FM marine channel 16 about
the zone and the rule allows vessels to seek permission to enter the
zone.

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 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 would affect 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 above.

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
Directive 023-01 and Environmental Planning COMDTINST 5090.1 (series),
which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have
determined 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 a safety zone lasting eight hours that
will prohibit entry into a designated area. It is categorically
excluded from further review under paragraph L[60](a) in Table 3-1 of
U.S. Coast Guard Environmental Planning Implementing Procedures 5090.1.
A Record of Environmental Consideration supporting this determination
is 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 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

0
2. Add Sec.  165.T09-0439 to read as follows:

Sec.  165.T09-0439  Safety Zone; Port Huron Float Down, St. Clair
River, Port Huron, MI.

    (a) Location. A safety zone is established to include all U.S.
navigable waters of southern Lake Huron and the St. Clair River
adjacent to Port Huron, MI, beginning at Lighthouse Beach and
encompassing all U.S. waters of the St. Clair River bound by a line
starting at a point on land north of Coast Guard Station Port Huron at
position 43[deg]00.416' N; 082[deg]25.333' W, extending east to the
international boundary to a point at position 43[deg]00.416' N;
082[deg]25.033' W, following south along the international boundary to
a point at position 42[deg]54.500' N; 082[deg]27.683' W, extending west
to a point on land just north of Stag Island at position 42[deg]54.500'
N; 082[deg]27.966' W, and following north along the U.S. shoreline to
the point of origin (NAD 83).
    (b) Enforcement period. The regulated area described in paragraph
(a) will be in enforced from 12 noon through 8 p.m. on August 16, 2020.
    (c) Regulations. (1) No vessel or person may enter, transit
through, or anchor within the safety zone unless authorized by the
Captain of the Port Detroit (COTP), or his or her on-scene
representative.
    (2) The safety zone is closed to all vessel traffic, except as may
be permitted by the COTP or his or her on-scene representative.
    (3) The ``on-scene representative'' of COTP is any Coast Guard
commissioned, warrant or petty officer or a Federal, State, or local
law enforcement officer designated by or assisting the Captain of the
Port Detroit to act on his or her behalf.
    (4) Vessel operators shall contact the COTP or his or her on-scene
representative to obtain permission to enter or operate within the
safety zone. The COTP or his or her on-scene representative may be
contacted via VHF Channel 16 or at<PHONE_NUMBER>. Vessel operators
given permission to enter or operate in the regulated area must comply
with all directions given to them by the COTP or his or her on-scene
representative.

    Dated: July 24, 2020.
Brad W. Kelly,
Captain, U.S. Coast Guard, Captain of the Port Detroit.
[FR Doc. 2020-16538 Filed 7-31-20; 8:45 am]
BILLING CODE 9110-04-P