[Federal Register Volume 85, Number 164 (Monday, August 24, 2020)]
[Notices]
[Pages 52179-52185]
[FR Doc No: 2020-18467]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89607; File No. SR-NYSEArca-2020-75]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE
Arca Equities Fees and Charges

August 18, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on August 12, 2020, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Equities Fees and
Charges (``Fee Schedule'') to (1) adopt a step up tier for ETP Holders
adding liquidity in Non-Displayed Limit Orders in Tapes A, B and C
securities with a per share price at or above $1.00; (2) adopt a step
up tier for ETP Holders adding liquidity in Round Lots and Odd Lots in
Tapes A, B and C securities with a per share price below $1.00; and (3)
amend the base rate for adding and removing liquidity in Round Lots and
Odd Lots in Tapes A, B and C securities with a per share price below
$1.00. The proposed rule change is available on the Exchange's website
at www.nyse.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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the Fee Schedule to (1) adopt a step
up tier for ETP Holders \4\ adding liquidity in Non-Displayed Limit
Orders \5\ in Tapes A, B and C securities with a per share price at or
above $1.00; (2) adopt a step up tier for ETP Holders adding liquidity
in Round Lots and Odd Lots in Tapes A, B and C securities with a per
share price below $1.00; and (3) amend the base rate for adding and
removing liquidity in Round Lots and Odd Lots in Tapes A, B and C
securities with a per share price below $1.00.
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    \4\ All references to ETP Holders in connection with this
proposed fee change include Market Makers.
    \5\ A Non-Displayed Limit Order is a limit order that is not
displayed and does not route. See NYSE Arca Rule 7.31-E(d)(2).
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    The proposed changes respond to the current competitive environment
where

order flow providers have a choice of where to direct liquidity-
providing orders by offering further incentives for ETP Holders to send
additional liquidity to the Exchange.
    The Exchange proposes to implement the fee changes effective August
12, 2020.\6\
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    \6\ The Exchange originally filed to amend the Fee Schedule on
August 3, 2020 (SR-NYSEArca-2020-73). SR-NYSEArca-2020-73 was
subsequently withdrawn and replaced by this filing.
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Background
    The Exchange operates in a highly competitive market. The
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \7\
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    \7\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (File No. S7-10-04) (Final
Rule) (``Regulation NMS'').
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    As the Commission itself recognized, the market for trading
services in NMS stocks has become ``more fragmented and competitive.''
\8\ Indeed, equity trading is currently dispersed across 13
exchanges,\9\ numerous alternative trading systems,\10\ and broker-
dealer internalizers and wholesalers, all competing for order flow.
Based on publicly-available information, no single exchange currently
has more than 20% market share (whether including or excluding auction
volume).\11\ Therefore, no exchange possesses significant pricing power
in the execution of equity order flow. More specifically, the Exchange
currently has less than 10% market share of executed volume of equities
trading.\12\
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    \8\ See Securities Exchange Act Release No. 51808, 84 FR 5202,
5253 (February 20, 2019) (File No. S7-05-18) (Transaction Fee Pilot
for NMS Stocks Final Rule) (``Transaction Fee Pilot'').
    \9\ See Cboe Global Markets, U.S Equities Market Volume Summary,
available at https://markets.cboe.com/us/equities/market_share. See
generally https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html.
    \10\ See FINRA ATS Transparency Data, available at https://otctransparency.finra.org/otctransparency/AtsIssueData. A list of
alternative trading systems registered with the Commission is
available at https://www.sec.gov/foia/docs/atslist.htm.
    \11\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, available at http://markets.cboe.com/us/equities/market_share/.
    \12\ See id.
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    The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
move order flow, or discontinue or reduce use of certain categories of
products. While it is not possible to know a firm's reason for shifting
order flow, the Exchange believes that one such reason is because of
fee changes at any of the registered exchanges or non-exchange venues
to which a firm routes order flow. With respect to non-marketable order
flow that would provide liquidity on an Exchange against which market
makers can quote, ETP Holders can choose from any one of the 13
currently operating registered exchanges to route such order flow.
Accordingly, competitive forces constrain exchange transaction fees
that relate to orders that would provide liquidity on an exchange.
    In response to the competitive environment described above, the
Exchange has established incentives for ETP Holders who submit orders
that provide liquidity on the Exchange. The proposed fee change is
designed to attract additional order flow to the Exchange by offering a
new pricing tier to incentivize ETP Holders to step up their liquidity-
providing Non-Displayed Limit Orders in Tapes A, B and C securities, a
new step up pricing tier for Round Lots and Odd Lots in Tapes A, B and
C securities with a share price of less than $1.00 (``Sub-Dollar
Securities''), and by amending the base rate for adding and removing
liquidity in Sub-Dollar Securities.
Proposed Rule Change
Step Up Tier for Adding Liquidity in Non-Displayed Limit Orders
    The Exchange proposes to adopt a step up tier that would offer
credits to ETP Holders providing non-displayed liquidity to the
Exchange in Tapes A, B and C securities.
    As proposed, an ETP Holder that, during the billing month, sends
orders that add liquidity to the Exchange in Non-Displayed Limit Orders
and Mid-Point Liquidity Orders (``MPL Orders'') \13\ combined, and that
has adding average daily volume (``ADV'') in Non-Displayed Limit Orders
and MPL Orders combined as a percent of US Consolidated ADV (``CADV'')
\14\ that is at least 0.02% more than the ETP Holder's July 2020 Limit
Non-Displayed Order ADV and MPL Order ADV combined as a percent of US
CADV (``Non-Displayed and MPL Baseline'') would receive a credit for
Non-Displayed Limit Orders, as follows:
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    \13\ An MPL Order is a limit order that is not displayed and
does not route, with a working price at the midpoint of the PBBO.
See NYSE Arca Rule 7.31-E(d)(3). The term ``PBBO'' refers to the
Best Protected Bid and the Best Protected Offer on NYSE Arca.
    \14\ US CADV means the United States Consolidated Average Daily
Volume for transactions reported to the Consolidated Tape, excluding
odd lots through January 31, 2014 (except for purposes of Lead
Market Maker pricing), and excludes volume on days when the market
closes early and on the date of the annual reconstitution of the
Russell Investments Indexes. Transactions that are not reported to
the Consolidated Tape are not included in US CADV. See Fee Schedule,
footnote 3.
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     $0.0004 per share for ETP Holders with at least 0.02% more
but less than 0.05% than the ETP Holder's Non-Displayed and MPL
Baseline;
     $0.0010 per share for ETP Holders with at least 0.05% more
but less than 0.10% than the ETP Holder's Non-Displayed and MPL
Baseline;
     $0.0015 per share for ETP Holders with at least 0.10% more
but less than 0.15% than the ETP Holder's Non-Displayed and MPL
Baseline; and
     $0.0020 per share for ETP Holders with at least 0.15% more
than the ETP Holder's Non-Displayed and MPL Baseline.
    For example, assume an ETP Holder has an adding ADV in MPL Orders
of 0.04% of US CADV and an adding ADV in Limit Non-Displayed Orders of
0.02% of US CADV, for a combined total of 0.06% of US CADV in the
baseline month of July 2020. Assume further that the same ETP Holder
has adding ADV in MPL Orders of 0.06% of US CADV and an adding ADV in
Limit Non-Displayed Orders of 0.03% of US CADV for a combined total of
0.09% of US CADV in a billing month. The ETP Holder in the above
example would then have a combined step up in MPL Orders and Limit Non-
Displayed Orders of 0.03% of US CADV (0.09%-0.06%), which would qualify
the ETP Holder for a credit of $0.0004 per share for Non-Displayed
Limit Orders for that billing month.
    The purpose of this proposed change is to incentivize ETP Holders
to increase the liquidity-providing orders in Non-Displayed Limit
Orders and MPL Orders they send to the Exchange, which would support
the quality of price discovery on the Exchange and provide additional
liquidity for incoming orders. As noted above, the Exchange operates in
a competitive environment, particularly as it relates to attracting
non-marketable orders, which add liquidity to the Exchange. Because the
proposed tier requires an ETP Holder to increase the volume of its
trades in orders that add liquidity over that ETP Holder's July 2020
baseline, the Exchange believes that the proposed credits would provide
an incentive for all ETP Holders to send

additional liquidity to the Exchange in order to qualify for it.
    The Exchange does not know how much order flow ETP Holders choose
to route to other exchanges or to off-exchange venues. Since the tier's
requirements utilize an increase in volume from the most recent month,
the Exchange does not know how many ETP Holders could qualify for the
proposed tiered credits based on their current trading profile on the
Exchange, but the Exchange notes that, since the lowest step up is only
an Adding ADV of 0.02% of US CADV in Non-Displayed Limit Orders and MPL
Orders combined, the Exchange believes that a number of ETP Holders
could qualify if they so choose. However, without having a view of ETP
Holders' activity on other exchanges and off-exchange venues, the
Exchange has no way of knowing whether this proposed rule change would
result in any ETP Holder directing orders to the Exchange in order to
qualify for the new tier.
Step Up Tier for Adding Liquidity in Sub-Dollar Securities
    As described in greater detail below, the Exchange proposes to
adopt a step up tier that would offer credits to ETP Holders adding
liquidity in Sub-Dollar Securities. Currently, the Exchange charges a
fee equal to 0.3% of the total dollar value for orders that take
liquidity from the Book. The Exchange does not currently offer any
credits to ETP Holders for adding liquidity to the Exchange in Sub-
Dollar Securities.
    As proposed, an ETP Holder that, during the billing month, on a
daily basis, measured monthly, has an Adding ADV of 1 million shares
with a per share price below $1.00 (``Sub-Dollar Adding Orders''), and
that directly executes providing volume in Sub-Dollar Adding Orders
equal to at least 0.20% of the CADV with a per share price below $1.00
(``Sub-Dollar CADV'') over the ETP Holder's July 2020 Sub-Dollar Adding
ADV taken as a percentage of Sub Dollar CADV (``Sub-Dollar Baseline''),
would receive a credit for orders that provide liquidity to the Book in
Sub-Dollar Adding Orders, as follows:
     0.0005% of the total dollar value for an increase of at
least 0.20% more but less than 0.50% of Sub-Dollar CADV over the Sub-
Dollar Baseline;
     0.0010% of the total dollar value for an increase of at
least 0.50% more but less than 0.75% of Sub-Dollar CADV over the Sub-
Dollar Baseline;
     0.00125% of the total dollar value for an increase of at
least 0.75% more but less than 1.0% of Sub-Dollar CADV over the Sub-
Dollar Baseline; and
     0.0015% of the total dollar value for an increase of at
least 1.0% more of Sub-Dollar CADV over the Sub-Dollar Baseline.
    For example, assume an ETP Holder has an adding ADV in Sub-Dollar
Adding Orders of 1 million shares in the baseline month of July 2020
when the Sub-Dollar CADV was 1 billion shares, for an adding ADV in
Sub-Dollar Adding Orders of 0.10% of Sub-Dollar CADV. Assume further
that the same ETP Holder has adding ADV in Sub-Dollar Adding Orders of
4 million shares in the billing month when the Sub-Dollar CADV was
again 1 billion shares, for an adding ADV in Sub-Dollar Adding Orders
of 0.40% of Sub-Dollar CADV. The ETP Holder in the above example would
then have a step up in Sub-Dollar Adding Orders of 0.30% of Sub-Dollar
CADV (0.40%-0.10%), which would qualify the ETP Holder to receive a
credit of 0.0005% of the total dollar value for orders that provide
liquidity to the Book in Sub-Dollar Adding Orders for that billing
month.
Base Rate for Adding and Removing Liquidity in Sub-Dollar Securities
    As noted above, the Exchange currently does not provide any credit
for orders that provide liquidity to the Book and charges a fee equal
to 0.3% of the total dollar value for orders that take liquidity from
the Book. With this proposed rule change, the Exchange proposes to
adopt a base credit of $0.00004 per share for adding liquidity in Sub-
Dollar Securities and lower the base rate for removing liquidity in
Sub-Dollar Securities to 0.295% of the total dollar value for orders
that take liquidity from the Book.
    In connection with this proposed fee change, the Exchange also
proposes the following two changes to the Fee Schedule: (1) Insert the
word ``fee'' after ``0.295%'' to clarify the application of a fee for
Sub-Dollar Securities; and (2) amend footnote 4 of the Fee Schedule by
deleting the entire second sentence which currently states that
``Rebates will not be paid for executions in securities priced under
$1.00.''
    Trading in Sub-Dollar Securities has intensified in recent months,
often affected in some way by the current macroeconomic turmoil. The
purpose of this proposed change is to incentivize ETP Holders to
increase the liquidity-providing orders in Sub-Dollar Securities they
send to the Exchange, which would support the quality of price
discovery on the Exchange and provide additional liquidity for incoming
orders. The proposed credit for adding liquidity and lower fee for
removing liquidity in Sub-Dollar Securities is intended to increase
order flow that would interact with liquidity present on the Exchange.
    As noted above, the Exchange operates in a competitive environment,
particularly as it relates to attracting non-marketable orders, which
add liquidity to the Exchange. Because, as proposed, the step up tier
requires an ETP Holder to increase the volume of its trades in orders
that add liquidity over that ETP Holder's July 2020 baseline, the
Exchange believes that the proposed credits would provide an incentive
for all ETP Holders to send additional liquidity to the Exchange in
order to qualify for it. The Exchange believes the proposed credit for
orders that add liquidity combined with the lower base rate for orders
that would remove liquidity would also incentivize ETP Holders to
direct liquidity adding and removing orders in low priced securities to
the Exchange.
    U.S. equity market volumes have been remarkably high since the end
of February 2020. Extreme volumes in recent weeks are reportedly driven
by retail traders, leading to record off-exchange (or TRF) market
share; 5 of the 8 highest TRF market share days ever occurred in the 5
consecutive trading sessions between June 3 and June 9.\15\ The
Exchange does not know how much order flow ETP Holders choose to route
to other exchanges or to off-exchange venues. The Exchange believes the
proposed credit for adding liquidity in Sub-Dollar Securities and the
proposed lower fee for removing liquidity in Sub-Dollar Securities
should serve as an incentive for ETP Holders to direct more of their
orders in these securities to the Exchange.
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    \15\ See Data Insights, Market volume & off-exchange trading:
more than a retail story, at https://www.nyse.com/data-insights/market-volume-and-off-exchange-trading.
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    Additionally, since the proposed step up tier's requirements
utilize an increase in volume from the most recent month, the Exchange
does not know how many ETP Holders could qualify for the proposed
tiered credits based on their current trading profile on the Exchange,
but the Exchange notes that, since the lowest step up is an Adding ADV
of 0.20% of Sub-Dollar CADV, the Exchange believes that ETP Holders
could qualify if they so choose. However, without having a view of ETP
Holders' activity on other markets and off-exchange venues, the
Exchange has no way of knowing whether this proposed rule change would
result in any ETP Holder directing orders to the Exchange in order to
qualify for the new tier. The Exchange cannot predict with

certainty how many ETP Holders would avail themselves of this
opportunity, but additional liquidity-providing orders would benefit
all market participants because it would provide greater execution
opportunities on the Exchange.
    The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any significant problems
that market participants would have in complying with the proposed
changes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\16\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\17\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Fee Change Is Reasonable
    As discussed above, the Exchange operates in a highly fragmented
and competitive market. The Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \18\
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    \18\ See Regulation NMS, 70 FR at 37499.
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    The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow, or discontinue to reduce use of certain categories of
products, in response to fee changes. With respect to non-marketable
orders that provide liquidity on an Exchange, ETP Holders can choose
from any one of the 13 currently operating registered exchanges to
route such order flow. Accordingly, competitive forces reasonably
constrain exchange transaction fees that relate to orders that would
provide displayed liquidity on an exchange. Stated otherwise, changes
to exchange transaction fees can have a direct effect on the ability of
an exchange to compete for order flow.
    Given this competitive environment, the proposal represents a
reasonable attempt to attract additional order flow to the Exchange.
Step Up Tier for Adding Liquidity in Non-Displayed Limit Orders
    Given the competitive environment, the proposed Step Up Tier for
Adding Liquidity in Non-Displayed Limit Orders and MPL Orders combined
would provide an incentive for ETP Holders to route additional
liquidity providing orders to the Exchange in Tapes A, B and C
securities.
    As noted above, the Exchange operates in a highly competitive
environment, particularly for attracting non-marketable order flow that
provides liquidity on an exchange. The Exchange believes it is
reasonable to provide a higher credit for orders that provide
additional liquidity. The Exchange believes that requiring ETP Holders
to have an Adding ADV in Non-Displayed Limit Orders and MPL Orders
combined that is at least 0.02% of US CADV over that ETP Holder's July
2020 adding liquidity in Non-Displayed Limit Orders and MPL Orders
combined taken as a percentage of US CADV in order to qualify for the
proposed Step Up Tier is reasonable because it would encourage
additional non-displayed liquidity on the Exchange and because market
participants benefit from the greater amounts of liquidity and price
improvement present on the Exchange.
    Similarly, the Exchange believes that it is reasonable to provide
an higher credit to ETP Holders that meet the requirements of the Step
Up Tier that add additional liquidity in Non-Displayed Limit Orders and
MPL Orders. Since the proposed Step Up Tier would be new with a
requirement for increased Adding ADV over the baseline month, no ETP
Holder currently qualifies for the proposed pricing tier. While there
are a number of ETP Holders that could qualify for the proposed higher
credit, the Exchange has no way of knowing whether the proposed rule
change would result in any ETP Holder qualifying for the tier without a
view of ETP Holder activity on other exchanges and off exchange venues.
The Exchange believes the proposed higher credit is reasonable as it
would provide an additional incentive for ETP Holders to direct their
order flow to the Exchange and provide meaningful added levels of
liquidity in order to qualify for the higher credit, thereby
contributing to depth and market quality on the Exchange.
Step Up Tier for Adding Liquidity in Sub-Dollar Securities
    The Exchange believes the proposal to adopt the Step Up Tier for
Adding Liquidity in Sub-Dollar Securities is reasonable as it would
serve as an incentive to market participants to increase the orders in
Sub-Dollar Securities sent directly to NYSE Arca and therefore provide
liquidity that supports the quality of price discovery and promotes
market transparency. The Exchange believes the proposed pricing tier is
reasonable because it would allow ETP Holders to receive credits that
were not previously available on the Exchange. Moreover, the addition
of the proposed pricing tier would benefit market participants whose
increased order flow would provide meaningful added levels of liquidity
thereby contributing to the depth and market quality on the Exchange.
    The Exchange notes that volume-based incentives and discounts have
been widely adopted by exchanges,\19\ including the Exchange,\20\ and
are reasonable, equitable and non-discriminatory because they are open
to all ETP Holders on an equal basis and provide additional credits
that are reasonably related to the value to an exchange's market
quality and associated higher levels of market activity.
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    \19\ See e.g., Cboe BZX U.S. Equities Exchange (``BZX'') Fee
Schedule, Footnote 1, Add Volume Tiers which provide enhanced
rebates between $0.0028 and $0.0032 per share for displayed orders
where BZX members meet certain volume thresholds.
    \20\ See e.g., Fee Schedule, Step Up Tier, Step Up Tier 2, Step
Up Tier 3 and Step Up Tier 4, which provide enhanced rebates between
$0.0025 and $0.0033 per share in Tape A Securities, between $0.0022
and $0.0034 per share in Tape B Securities, and between $0.0025 and
$0.0033 per share in Tape C Securities for orders that provide
displayed liquidity where ETP Holders meet certain volume
thresholds.
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Base Rate for Adding and Removing Liquidity in Sub-Dollar Securities
    The Exchange believes that the proposed rate change for ETP Holders
will incentivize submission of additional liquidity in Sub-Dollar
Securities to a public exchange to qualify for the proposed credit of
$0.00004 per share for adding liquidity and lower fee of 0.295% of the
total dollar value for removing liquidity, thereby promoting price
discovery and transparency and enhancing order execution opportunities
for ETP Holders. The Exchange believes that the proposed credit for
orders that add liquidity to the Exchange is reasonable because it
would incentivize ETP Holders to direct more order flow in

Sub-Dollar Securities to the Exchange. The Exchange notes that the
proposed credit would be greater than credits offered on other markets.
For example, BZX and the Nasdaq Stock Market (``Nasdaq'') do not
provide any credit for orders in Sub-Dollar Securities that add
liquidity.\21\ While Cboe EDGX U.S. Equities Exchange (``EDGX'') offers
a credit of $0.00003 per share for orders in Sub-Dollar Securities that
add liquidity, the credit proposed by this rule change would be greater
but comparable than that offered by EDGX.\22\
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    \21\ See BZX Fee Schedule, at https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/. See also Nasdaq Price List,
at http://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
    \22\ See EDGX Fee Schedule, at https://markets.cboe.com/us/equities/membership/fee_schedule/edgx/.
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    The Exchange further believes that the proposed revised fee for
orders that remove liquidity from the Exchange is reasonable because it
would incentivize ETP Holders to remove additional liquidity from the
Exchange, thereby increasing the number of orders adding liquidity
executed on the Exchange and improving overall liquidity on a public
exchange, resulting in lower costs for ETP Holders that qualify for the
rates. The Exchange notes that the proposed fee would be lower than
comparable fees offered on other markets. For example, both BZX and
Nasdaq currently charge a fee of 0.30% of total dollar value for
removing liquidity in securities priced below $1.00.\23\
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    \23\ See BZX Fee Schedule, at https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/. See also Nasdaq Price List,
at http://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
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    On the backdrop of the competitive environment in which the
Exchange currently operates, the proposed rule change is a reasonable
attempt to increase liquidity on the Exchange and improve the
Exchange's market share relative to its competitors.
The Proposed Fee Change Is an Equitable Allocation of Fees and Credits
    The Exchange believes its proposal equitably allocates its fees
among its market participants by fostering liquidity provision and
stability in the marketplace.
Step Up Tier for Adding Liquidity in Non-Displayed Limit Orders
    The Exchange believes that the proposed Step Up Tier is equitable
because the magnitude of the additional credit is not unreasonably high
relative to the tiered credits for Non-Displayed Limit orders that add
liquidity offered by, for example, the New York Stock Exchange, which
range from $0.0005 per share to $0.0018 per share. The Exchange
believes the proposed rule change would improve market quality for all
market participants on the Exchange and, as a consequence, attract more
liquidity to the Exchange, thereby improving market-wide quality and
price discovery.
    The Exchange believes that requiring ETP Holders to having an
Adding ADV in Non-Displayed Limit Orders and MPL Orders combined in
Tapes A, B and C CADV that is at least 0.02% of US CADV over that ETP
Holder's July 2020 adding liquidity in Non-Displayed Limit Orders and
MPL Orders taken as a percentage of US CADV in order to qualify for the
proposed credits would also encourage additional displayed liquidity on
the Exchange. Since the proposed Step Up Tier would be new, no ETP
Holder currently qualifies for it, but without a view of ETP Holder
activity on other exchanges and off-exchange venues, the Exchange has
no way of knowing whether this proposed rule change would result in any
ETP Holder qualifying for the tier.
    The Exchange believes the proposed credit is reasonable as it would
provide an additional incentive for ETP Holders to direct their order
flow to the Exchange and provide meaningful added levels of liquidity
in order to qualify for the higher credit, thereby contributing to
depth and market quality and increased price improvement on the
Exchange. The proposal neither targets nor will it have a disparate
impact on any particular category of market participant. All ETP
Holders would be eligible to qualify for the proposed credit if they
increase their Adding ADV in Non-Displayed Limit Orders and MPL Orders
combined over their own baseline of order flow.
    The Exchange believes that offering a higher step up credit for
providing liquidity if the step up requirements for Tape A, Tape B and
Tape C securities are met, will continue to attract order flow and
liquidity to the Exchange, thereby providing additional price
improvement opportunities on the Exchange and benefiting investors
generally. As to those market participants that do not presently
qualify for the adding liquidity credits, the proposal will not
adversely impact their existing pricing or their ability to qualify for
other credits provided by the Exchange.
Step Up Tier for Adding Liquidity in Sub-Dollar Securities
    The Exchange believes the proposed pricing tier is equitable
because it would allow ETP Holders to receive credits that were not
previously available on the Exchange. Moreover, the addition of the
proposed Step Up Tier would benefit market participants whose increased
order flow in Sub-Dollar Securities would provide meaningful added
levels of liquidity thereby contributing to the depth and market
quality on the Exchange. Given that the proposed Step Up Tier would be
a new pricing tier that requires ETP Holders to step up, no ETP Holder
currently qualifies for the proposed credit. And without having a view
of ETP Holders' activity on other markets and off-exchange venues, the
Exchange has no way of knowing whether this proposed rule change would
result in any ETP Holders qualifying for this tier. However, the
Exchange believes the proposed pricing tier, which requires an ETP
Holder to increase the volume of its trades in orders that add
liquidity over that ETP Holder's July 2020 baseline, would provide an
incentive for ETP Holders to continue to submit liquidity-providing
order flow, which would promote price discovery and increase execution
opportunities for all ETP Holders. The proposed change would thereby
encourage the submission of additional liquidity in Sub-Dollar
Securities to a national securities exchange, thus promoting price
discovery and transparency and enhancing order execution opportunities
for ETP Holders from the substantial amounts of liquidity present on
the Exchange, which would benefit all market participants on the
Exchange.
    The Exchange believes that offering higher step up credits for
providing liquidity if the step up requirements for Sub-Dollar
securities are met, will attract increased order flow and liquidity to
the Exchange, thereby providing additional price improvement
opportunities on the Exchange and benefiting investors generally. As to
those market participants that do not qualify for the adding liquidity
credits by increasing order flow and liquidity, the proposal will not
adversely impact their existing pricing or their ability to qualify for
other credits provided by the Exchange.
Base Rate for Adding and Removing Liquidity in Sub-Dollar Securities
    The Exchange believes that, for the reasons discussed above, the
proposed change to the base rate for adding and removing liquidity in
Sub-Dollar Securities would incentivize ETP Holders to direct a greater
amount of liquidity to the Exchange to qualify for the proposed credit
of $0.00004 per share when adding liquidity and lower

removing fee of 0.295% of total dollar value, thereby increasing the
number of orders that are executed on the Exchange and improving
overall liquidity on a public exchange. A number of ETP Holders
currently transact in Sub-Dollar Securities and they would all qualify
for the proposed increased credit for adding liquidity and lower fee
for removing liquidity based on their current trading profile on the
Exchange. The Exchange believes additional ETP Holders could qualify
for the new rates if they choose to direct order flow in Sub-Dollar
Securities to the Exchange.
    The Exchange believes that the proposed rule change is equitable
because maintaining or increasing the proportion of Sub-Dollar
Securities that are executed on a registered national securities
exchange (rather than relying on certain available off-exchange
execution methods) would contribute to investors' confidence in the
fairness of their transactions and would benefit all investors by
deepening the Exchange's liquidity pool, supporting the quality of
price discovery, promoting market transparency and improving investor
protection.
The Proposed Fee Change Is Not Unfairly Discriminatory
    The Exchange believes that the proposal is not unfairly
discriminatory. In the prevailing competitive environment, ETP Holders
are free to disfavor the Exchange's pricing if they believe that
alternatives offer them better value.
    The proposal is not unfairly discriminatory because it neither
targets nor will it have a disparate impact on any particular category
of market participant.
Step Up Tier for Adding Liquidity in Non-Displayed Limit Orders
    The Exchange believes it is not unfairly discriminatory to provide
additional per share step up credits for adding liquidity in Non-
Displayed Limit Orders and MPL Orders, as the proposed credits would be
provided on an equal basis to all ETP Holders that add liquidity by
meeting the new proposed Step Up Tier's requirements. For the same
reason, the Exchange believes it is not unfairly discriminatory to
provide additional incrementally higher credits for increased adding
ADV over the ETP Holder's July 2020 adding liquidity in Non-Displayed
Limit Orders and MPL Orders combined taken as a percentage of US CADV
because the proposed higher credits would equally encourage all ETP
Holders to provide additional liquidity on the Exchange in Non-
Displayed Limit Orders and MPL Orders. As noted, the Exchange believes
that the proposed credit would provide an incentive for ETP Holders to
send additional liquidity to the Exchange in order to qualify for the
additional credits. The Exchange also believes that the proposed change
is not unfairly discriminatory because it is reasonably related to the
value to the Exchange's market quality associated with higher volume.
Finally, the submission of orders to the Exchange is optional for ETP
Holders in that they could choose whether to submit orders to the
Exchange and, if they do, the extent of its activity in this regard.
Step Up Tier for Adding Liquidity in Sub-Dollar Securities
    The Exchange believes it is not unfairly discriminatory to provide
additional per share step up credits for adding liquidity in Sub-Dollar
Securities, as the proposed credits would be provided on an equal basis
to all ETP Holders that add liquidity by meeting the new proposed Step
Up Tier's requirements. For the same reason, the Exchange believes it
is not unfairly discriminatory to provide additional incrementally
higher credits for increased adding ADV over the ETP Holder's July 2020
adding liquidity in Sub-Dollar Securities taken as a percentage of US
CADV because the proposed higher credits would equally encourage all
ETP Holders to provide additional liquidity on the Exchange in Sub-
Dollar Securities.
    The proposed pricing tier would also serve as an incentive to ETP
Holders to increase the level of orders sent directly to NYSE Arca in
order to qualify for, and receive the proposed credits that were not
previously available on the Exchange. The Exchange believes that the
proposed pricing tier would provide an incentive for ETP Holders to
send additional liquidity to the Exchange in order to qualify for the
credits. The Exchange also believes that the proposed change is not
unfairly discriminatory because it is reasonably related to the value
to the Exchange's market quality associated with higher volume.
    The Exchange believes that the proposed rule change is not unfairly
discriminatory because maintaining or increasing the proportion of Sub-
Dollar Securities that are executed on a registered national securities
exchange (rather than relying on certain available off-exchange
execution methods) would contribute to investors' confidence in the
fairness of their transactions and would benefit all investors by
deepening the Exchange's liquidity pool, supporting the quality of
price discovery, promoting market transparency and improving investor
protection. Finally, the submission of orders in Sub-Dollar Securities
to the Exchange is optional for ETP Holders in that they could choose
whether to submit such orders to the Exchange and, if they do, the
extent of its activity in this regard.
Base Rate for Adding and Removing Liquidity in Sub-Dollar Securities
    The proposed credit for orders that add liquidity and revised fees
for orders that remove liquidity from the Exchange are also not
unfairly discriminatory because proposed increased credit and lower fee
would be applied to all similarly situated ETP Holders who would all be
eligible for the same fee and credit on an equal basis. Accordingly, no
ETP Holder already operating on the Exchange would be disadvantaged by
this allocation of fees and credits. Further, the Exchange believes the
proposal would provide an incentive for ETP Holders to direct
additional order flow in Sub-Dollar Securities to the Exchange, to the
benefit of all market participants.
    The Exchange also believes that the proposed change is not unfairly
discriminatory because it is reasonably related to the value to the
Exchange's market quality associated with higher volume. The Exchange
believes the proposed increased credit and lower fee would incentivize
ETP Holders to send more orders to the Exchange, which would support
the quality of price discovery on the Exchange and provide additional
liquidity for incoming orders. Further, the submission of orders to the
Exchange is optional for ETP Holders in that they could choose whether
to submit orders to the Exchange and, if they do, the extent of its
activity in this regard.
    For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\24\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the Exchange believes
that the proposed changes would encourage the submission of additional
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and

enhancing order execution opportunities for ETP Holders. As a result,
the Exchange believes that the proposed change furthers the
Commission's goal in adopting Regulation NMS of fostering integrated
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.'' \25\
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f(b)(8).
    \25\ See Regulation NMS, 70 FR at 37498-99.
---------------------------------------------------------------------------

    Intramarket Competition. The proposed changes are designed to
respond to the current competitive environment and to attract
additional order flow to the Exchange. The Exchange believes that the
proposed changes would continue to incentivize market participants to
direct order flow to the Exchange. Greater liquidity benefits all
market participants on the Exchange by providing more trading
opportunities and encourages ETP Holders to send orders, thereby
contributing to robust levels of liquidity, which benefits all market
participants on the Exchange. The proposed credits and lower fees would
be available to all similarly-situated market participants, and, as
such, the proposed change would not impose a disparate burden on
competition among market participants on the Exchange. As such, the
Exchange believes the proposed amendments to its Fee Schedule would not
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
    Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily choose to
send their orders to other exchange and off-exchange venues if they
deem fee levels at those other venues to be more favorable. As noted
above, the Exchange's market share of intraday trading (i.e., excluding
auctions) is currently less than 10%. In such an environment, the
Exchange must continually adjust its fees and rebates to remain
competitive with other exchanges and with off-exchange venues. Because
competitors are free to modify their own fees and credits in response,
and because market participants may readily adjust their order routing
practices, the Exchange does not believe its proposed fee change can
impose any burden on intermarket competition.
    The Exchange believes that the proposed change could promote
competition between the Exchange and other execution venues, including
those that currently offer similar order types and comparable
transaction pricing, by encouraging additional orders to be sent to the
Exchange for execution.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \26\ of the Act and subparagraph (f)(2) of Rule
19b-4 \27\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \28\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEArca-2020-75 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2020-75. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2020-75 and should be submitted
on or before September 14, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-18467 Filed 8-21-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Notices]
[Pages 71106-71107]
[FR Doc No: 2016-24810]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2016-N-0001]

Advisory Committee; Antimicrobial Drugs Advisory Committee,
Renewal

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice; renewal of advisory committee.

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SUMMARY: The Food and Drug Administration (FDA) is announcing the
renewal of the Antimicrobial Drugs Advisory Committee by the
Commissioner of Food and Drugs (the Commissioner). The Commissioner has
determined that it is in the public interest to renew the Antimicrobial
Drugs Advisory Committee for an additional 2 years beyond the charter
expiration date. The new charter will be in effect until October 7,
2018.

DATES: Authority for the Antimicrobial Drugs Advisory Committee will
expire on October 7, 2016, unless the Commissioner formally determines
that renewal is in the public interest.

FOR FURTHER INFORMATION CONTACT: Lauren Tesh, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 31, Rm. 2417, Silver Spring, MD 20993-0002, 301-
796-9001, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Pursuant to 41 CFR 102-3.65 and approval by
the

Department of Health and Human Services pursuant to 45 CFR part 11 and
by the General Services Administration, FDA is announcing the renewal
of the Antimicrobial Drugs Advisory Committee. The committee is a
discretionary Federal advisory committee established to provide advice
to the Commissioner. The Antimicrobial Drugs Advisory Committee advises
the Commissioner or designee in discharging responsibilities as they
relate to helping to ensure safe and effective drugs for human use and,
as required, any other product for which the Food and Drug
Administration has regulatory responsibility. The Committee reviews and
evaluates available data concerning the safety and effectiveness of
marketed and investigational human drug products for use in the
treatment of infectious diseases and disorders and makes appropriate
recommendations to the Commissioner of Food and Drugs.
    The Committee shall consist of a core of 13 voting members
including the Chair. Members and the Chair are selected by the
Commissioner or designee from among authorities knowledgeable in the
fields of infectious disease, internal medicine, microbiology,
pediatrics, epidemiology or statistics, and related specialties.
Members will be invited to serve for overlapping terms of up to four
years. Almost all non-Federal members of this committee serve as
Special Government Employees. The core of voting members may include
one technically qualified member, selected by the Commissioner or
designee, who is identified with consumer interests and is recommended
by either a consortium of consumer-oriented organizations or other
interested persons. In addition to the voting members, the Committee
may include one non-voting member who is identified with industry
interests.
    Further information regarding the most recent charter and other
information can be found at http://www.fda.gov/AdvisoryCommittees/CommitteesMeetingMaterials/Drugs/Anti-InfectiveDrugsAdvisoryCommittee/ucm094132.htm or by contacting the Designated Federal Officer (see FOR
FURTHER INFORMATION CONTACT). In light of the fact that no change has
been made to the committee name or description of duties, no amendment
will be made to 21 CFR 14.100.
    This document is issued under the Federal Advisory Committee Act (5
U.S.C. app.). For general information related to FDA advisory
committees, please visit us at http://www.fda.gov/AdvisoryCommittees/default.htm.

    Dated: October 7, 2016.
Janice M. Soreth,
Acting Associate Commissioner, Special Medical Programs.
[FR Doc. 2016-24810 Filed 10-13-16; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 83, Number 153 (Wednesday, August 8, 2018)]
[Notices]
[Pages 39150-39152]
[FR Doc No: 2018-16949]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2016-0130]

Commercial Driver's License: Application for Exemption; Missouri
Department of Revenue (DOR)

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of application for renewal of exemption; request for
comments.

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

SUMMARY: FMCSA announces that it has received an application from the
Missouri DOR for a renewal of its exemption from the Agency's
commercial driver's license (CDL) regulations. These regulations
require a driver to pass the general knowledge test before being issued
a Commercial Learner's Permit (CLP). The exemption renewal would allow
the Missouri DOR to continue to waive the mandatory knowledge test
requirement for qualified veterans who participated in dedicated
training in approved military programs. The Missouri DOR states that
its goal is to continue to assist qualified veterans in obtaining
employment when returning to the civilian workforce, and granting this
exemption renewal will assist those veterans who have already been
through extensive military training. The Missouri DOR currently holds
an exemption for the period of October 27, 2016, through October 29,
2018, and is requesting a 2-year renewal. FMCSA requests public comment
on the Missouri DOR's application for exemption.

DATES: Comments must be received on or before September 7, 2018.

ADDRESSES: You may submit comments identified by Federal Docket
Management System (FDMS) Number FMCSA-2016-0130 by any of the following
methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow
the online instructions for submitting comments.
     Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building,

Ground Floor, Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building, Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: 1-202-493-2251.
    Each submission must include the Agency name and the docket number
for this notice. Note that DOT posts all comments received without
change to www.regulations.gov, including any personal information
included in a comment. Please see the Privacy Act heading below.
    Docket: For access to the docket to read background documents or
comments, go to www.regulations.gov at any time or visit Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., ET, Monday through Friday,
except Federal holidays. The on-line FDMS is available 24 hours each
day, 365 days each year. If you want acknowledgement that we received
your comments, please include a self-addressed, stamped envelope or
postcard or print the acknowledgement page that appears after
submitting comments on-line.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: For information concerning this
notice, contact Mr. Richard Clemente, FMCSA Driver and Carrier
Operations Division; Office of Carrier, Driver and Vehicle Safety
Standards; Telephone:<PHONE_NUMBER>. Email: [email protected]. If you have
questions on viewing or submitting material to the docket, contact
Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation and Request for Comments

    FMCSA encourages you to participate by submitting comments and
related materials.

Submitting Comments

    If you submit a comment, please include the docket number for this
notice (FMCSA-2016-0130), indicate the specific section of this
document to which the comment applies, and provide a reason for
suggestions or recommendations. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so the Agency can contact you if it has questions
regarding your submission.
    To submit your comment online, go to www.regulations.gov and put
the docket number, ``FMCSA-2016-0130'' in the ``Keyword'' box, and
click ``Search.'' When the new screen appears, click on ``Comment
Now!'' button and type your comment into the text box in the following
screen. Choose whether you are submitting your comment as an individual
or on behalf of a third party and then submit. If you submit your
comments by mail or hand delivery, submit them in an unbound format, no
larger than 8\1/2\ by 11 inches, suitable for copying and electronic
filing. If you submit comments by mail and would like to know that they
reached the facility, please enclose a stamped, self-addressed postcard
or envelope.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to www.regulations.gov and insert
the docket number, ``FMCSA-2016-0130'' in the ``Keyword'' box and click
``Search.'' Next, click ``Open Docket Folder'' button and choose the
document listed to review. If you do not have access to the internet,
you may view the docket online by visiting the Docket Management
Facility in Room W12-140 on the ground floor of the DOT West Building,
1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5
p.m., e.t., Monday through Friday, except Federal holidays.

II. Legal Basis

    FMCSA has authority under 49 U.S.C. 31136(e) and 31315 to grant
exemptions from certain Federal Motor Carrier Safety Regulations
(FMCSRs). FMCSA must publish a notice of each exemption request in the
Federal Register (49 CFR 381.315(a)). The Agency must provide the
public an opportunity to inspect the information relevant to the
application, including any safety analyses that have been conducted.
The Agency must also provide an opportunity for public comment on the
request.
    The Agency reviews the safety analyses and the public comments, and
determines whether granting the exemption would likely achieve a level
of safety equivalent to, or greater than, the level that would be
achieved by compliance with the current regulation (49 CFR 381.305).
The decision of the Agency must be published in the Federal Register
(49 CFR 381.315(b)) with the reason for the grant or denial, and, if
granted, the specific person or class of persons receiving the
exemption, and the regulatory provision or provisions from which
exemption is granted. The notice must also specify the effective period
of the exemption (up to 5 years), and explain the terms and conditions
of the exemption. The exemption may be renewed (49 CFR 381.300(b)).

III. Request for Exemption

    The Missouri DOR's initial exemption application from the
provisions of 49 CFR 383.71(a)(2)(ii) was submitted in 2016; a copy is
in the docket identified at the beginning of this notice. That 2016
application describes fully the nature of the Missouri DOR's request,
and the reasons for its request. The Missouri DOR contends that those
qualified veterans who participated in dedicated training in approved
military programs have already received numerous hours of classroom
training, practical skills training, and one-on-one road training that
are essential for safe driving. The original exemption was granted on
October 27, 2016 (81 FR 74861) and expires on October 29, 2018.
Missouri DOR now requests a 2-year renewal of the exemption. The
current exemption allows all States to waive the CDL knowledge test for
qualified current or former military personnel who participated in
training in military heavy-vehicle driving programs, but does not
require them to do so.
    The Missouri DOR provided several reasons for this renewal of the
exemption request, including:
     The proposed regulatory change to 49 CFR parts 383 and 384
for Military Licensing and State Commercial Driver Licensing
Reciprocity [82 FR 26894, June 12, 2017] has not yet been posted as a
final rulemaking by the Agency;
     The Missouri legislature did not pass the enabling
legislation to pursue full implementation during a recent legislative
session; and
     Missouri, as well as other State Driver Licensing Agencies
(SDLAs) that have implemented or want to pursue implementation of these
provisions, must have an exemption renewal in place until such time as
the proposed regulatory change is approved and posted as final.
    In addition, because the issue concerning the Missouri DOR request
could be applicable in each of the States, FMCSA requests public
comment on whether the exemption, if granted, should cover all SDLAs.

    A copy of the Missouri DOR's application for exemption renewal is
available for review in the docket for this notice.

    Issued on: July 27, 2018.
 Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2018-16949 Filed 8-7-18; 8:45 am]
 BILLING CODE 4910-EX-P