[Federal Register Volume 81, Number 216 (Tuesday, November 8, 2016)]
[Notices]
[Pages 78675-78677]
[FR Doc No: 2016-26907]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79221; File No. SR-Phlx-2016-107]

Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Exchange
Rule 1079 Concerning the Process of Initiating a FLEX Transaction and
Determining the Best Bid or Offer

November 2, 2016.
    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 October 19, 2016, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 1079, FLEX Index,
Equity, and Currency Options, at Section (b), Procedure for Quoting and
Trading FLEX Options.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqphlx.cchwallstreet.com/ 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 and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    The Exchange proposes to amend section (b), Procedure for Quoting
and Trading FLEX Options, of Rule 1079. Specifically, the Exchange
proposes to amend subsection (1), Requesting Quotations, by largely
reversing the changes it made to that subsection in a 2013 proposed
rule change (the ``2013 Amendments'').\3\ The changes proposed herein
deal only with the process of initiating a FLEX transaction and
determining the best bid or offer (``BBO''). No other aspects of Rule
1079, as changed by the 2013 Amendments, are proposed to be amended.
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    \3\ See Securities Exchange Act Release No. 69586 (May 15,
2013), 78 FR 29797 (May 21, 2013) (SR-Phlx-2013-50) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating
to FLEX Options).
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    FLEX option transactions on the Exchange are governed by Rule 1079.
Under Rule 1079(b) a Requesting Member may obtain quotes and execute
trades in certain non-listed FLEX options at the specialist post of the
non-FLEX option on the Exchange. The Requesting Member is a Phlx
member, qualified to trade FLEX options pursuant to paragraph (c) of
Rule 1079, who initiates a FLEX Request For Quotes (``RFQ'') pursuant
to Rule 1079(b).\4\ FLEX options are not continuously quoted and series
are not pre-established. Moreover, the Exchange's electronic quoting
and trading system is not available for FLEX options. The variable
terms of FLEX options are established through the process described in
Rule 1079.
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    \4\ All transactions must be in compliance with Section 11(a) of
the Securities Exchange Act of 1934 and the rules promulgated
thereunder, which may include yielding priority to customer orders.
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    Pursuant to the 2013 Amendments, the Exchange revised a number of
its FLEX rules, which it stated were intended to be similar to those of
NYSE MKT LLC (``Amex''). Rule 1079(b)(1) was revised to require the
Requesting Member to submit to the FLEX Specialist an RFQ utilizing for
that purpose the forms, formats and procedures established by the
Exchange. The 2013 Amendments also amended Rule 1079(b)(1) to provide
that, on receipt of an RFQ in proper form, the assigned FLEX Specialist
shall cause the terms and specifications of the RFQ to be immediately
announced at the post. Thus, the 2013 Amendments added new requirements
mandating the participation of an assigned FLEX Specialist at the
inception of every FLEX transaction.
    Prior to the 2013 Amendments, Rule 1079(b)(1) permitted a
Requesting Member to initiate an RFQ without the participation of a
FLEX Specialist, by first announcing all of the following contract
terms to the trading crowd of the non-FLEX option and then submitting
an RFQ ticket to that specialist post: (1) Underlying index, security
or foreign currency; (2) type, size, and crossing intention; (3) in the
case of FLEX index options and FLEX equity options, exercise style; (4)
expiration date; (5) exercise price; and (6) respecting index options,
the settlement value. Thereafter, on receipt of an RFQ in proper form,
the assigned Specialist or Requesting Member was required to cause the
terms of the RFQ to be disseminated as an administrative text message
through the Options Price Reporting Authority (``OPRA'').
Operationally, the Requesting Member provided this information to
Exchange staff who entered it into Exchange systems.\5\
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    \5\ See Securities Exchange Act Release No. 39549 (January 14,
1998), 63 FR 3601 (January 23, 1998) (Order Approving Proposed Rule
Change and Notice of Filing and Order Granting Accelerated Approval
of Amendment Nos. 2, 4, and 5 to the Proposed Rule Change by the
Philadelphia Stock Exchange, Inc., Relating to the Listing of
Flexible Exchange Traded Equity and Index Options) (SR-Phlx-96-38)
(the ``1998 Approval Order'') at footnote 36. The 2013 Amendments
also revised Rule 1079(b)(1) by eliminating the original requirement
that the assigned Specialist or the Requesting Member cause the
terms of the RFQ to be disseminated as an OPRA text message, and by
substituting for that original requirement a statement, in passive
voice that does not specify on whom the obligation is imposed, that
the terms and specifications of the RFQ ``shall be disseminated as
an administrative text message through OPRA.'' As a matter of
practice today, the Requesting Member still provides this
information to Exchange staff who enter it into Exchange systems.
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    Because most Exchange specialists no longer have a presence on the
Exchange's trading floor, and are therefore unable to trade FLEX
options, and because Exchange specialists (remote or otherwise) may
have no interest in being an assigned FLEX Specialist in any event, the
Exchange proposes to revert to Rule 1079(b)(1) largely as it read prior
to the 2013 Amendments. That language did not require the participation
of a FLEX Specialist to initiate a FLEX trade. As revised, the rule
will once again permit FLEX transactions to be initiated without the
participation of a specialist so long as all other requirements of Rule

1079 have been met, consistent with the intent of the original proposed
rule change adopting the Rule 1079 provisions applicable to FLEX equity
and index options.\6\
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    \6\ The 1998 Approval Order specifically anticipated that FLEX
trading may occur without the participation of a Specialist, stating
that ``the Exchange also notes that there may not be a Specialist in
FLEX options'' and that ``[a]t least two Exchange members (ROTs and/
or a Specialist) shall be assigned to each FLEX option. If there is
an assigned Specialist and an assigned ROT, the FLEX option will
trade pursuant to the specialist system, just as non-FLEX options
currently do on the Exchange. If, however, there is no assigned
Specialist in a FLEX option, two assigned ROTs are required for that
FLEX option to trade.'' If there were no assigned FLEX Specialist,
the process for trading the FLEX option would unfold between and
among the crowd participants, without involvement of an assigned
FLEX Specialist, as described in Rule 1079. The Exchange notes that
the 2013 Amendments also eliminated the rule previously found at
Rule 1079(b)(5)(B) providing for the maintenance by a specialist of
a FLEX book and governing trading with booked FLEX orders.
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    The Exchange did not intend for the 2013 Amendments to expand the
role of a FLEX Specialist beyond the provisions of Rule 1079(b)(1) that
the Exchange is now proposing to roll back to their wording prior to
the 2013 Amendments. Because the Exchange did not intend for the 2013
Amendments to expand the role of a FLEX Specialist in any case, the
current proposed change to roll Rule 1079(b)(1) back to its wording
prior to the 2013 Amendments will have no collateral consequences for
the FLEX trading process under the rest of Rule 1079's provisions. In
particular, the Exchange notes that the BBO (the best bid, offer or
both, as applicable, entered in response to an RFQ) can be determined
by the Requesting Member, without the assistance or intervention of a
FLEX Specialist, consistent with the original 1998 Approval Order.\7\
Removing the requirement that a FLEX Specialist receive the RFQ and
announce its terms and conditions to the crowd should have no effect on
the remaining processes outlined in Rule 1079 for the trading in FLEX
options.
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    \7\ Prior to the 2013 Amendments, former Rule 1079(b)(3)
specifically provided that the Requesting Member was to determine
the BBO if there were no assigned Specialist. The Exchange proposes
to reinsert this language into Rule 1079(b)(3), for clarity.
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    In practice, initially due to oversight by Exchange staff, the
Exchange has not required the participation of an assigned FLEX
Specialist as provided for in the 2013 Amendments but has instead
continued to permit FLEX trading to occur without an assigned FLEX
Specialist, just as FLEX trading has been conducted since the original
1998 Approval Order. Further, the negative practical effects of the
superfluous FLEX Specialist participation requirement appear to have
been inadequately considered by the Exchange when the requirement was
initially adopted in the 2013 Amendments as a very small part of a more
extensive set of amendments to Rule 1079 dealing with unrelated
matters.\8\ As noted above, the Exchange advanced no policy reason for
the requirement when it was adopted other than a general desire to
track the language of another exchange's FLEX rule. It identified no
problem that the Specialist participation requirement was intended to
remedy. The Exchange now desires to eliminate the needless requirement,
originally added in the 2013 Amendments for no substantive reason, and
return Rule 1079(b)(1) to its previous language pursuant to which FLEX
option transactions have been successfully executed since the 1998
Approval Order.
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    \8\ For example, the Exchange stated in the 2013 Amendments that
it proposed to adopt rules, similar to Amex, which require a
Requesting Member to submit to the FLEX Specialist an RFQ and that
on receipt of an RFQ in proper form, the assigned FLEX Specialist
shall cause the terms and specifications to be immediately announced
at the post. The proposed rule change thus assumed the existence of
a FLEX Specialist even though the FLEX rules at the time provided
for FLEX trading without any FLEX Specialist.
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    Finally, the Exchange proposes to amend the introductory language
to Rule 1079, which provides that a Requesting Member shall obtain
quotes and execute trades in certain non-listed FLEX options at the
specialist post of the non-FLEX option on the Exchange. The Exchange
proposes to delete the reference to the ``specialist'' post, which is a
term no longer commonly used at the Exchange. Rather, the area where an
option is traded is now simply referred to as a post.\9\
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    \9\ For the same reason, in the proposed amendments to Rule
1079(b)(1) the Exchange is using the term ``post'' rather than the
term ``specialist post'' that was used in the Rule 1079(b)(1)
language in place prior to the 2013 Amendments.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, because the Commission has previously approved the proposed
language in the 1998 Approval Order. The proposal eliminates a
requirement that a FLEX Specialist participate in the initiation of
every FLEX transaction which, given the general absence of specialists
on the Exchange trading floor, may needlessly constrain FLEX trading.
Importantly, as stated above, the Exchange's 2013 Amendments did not
advance a particular policy or reason for amending the Rule 1079(b)(1)
language or the language in Rule 1079(b)(3) permitting the Requesting
Member to determine the BBO in the absence of an assigned Specialist,
other than a general intent to track Amex rule language. There is
consequently no policy reason not to return the rule language to the
wording as it existed prior to the 2013 Amendments.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that amendments proposed herein will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act inasmuch as they simply
reinstate previous Exchange rule language which had been approved by
the Commission, and remove an outdated reference to the specialist
post.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in

furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2016-107 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2016-107. 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 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; 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-Phlx-2016-107 and
should be submitted on or before November 29, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-26907 Filed 11-7-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 68 (Friday, April 8, 2016)]
[Proposed Rules]
[Pages 20592-20598]
[FR Doc No: 2016-07997]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2015-1079]
RIN 1625-AA00

Safety Zones; Sector Upper Mississippi River Annual and Recurring
Safety Zones Update

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to amend and update its annual and
recurring safety zones that take place in the Coast Guard Sector Upper
Mississippi River area of responsibility (AOR). This document informs
the public of regularly scheduled events that require additional safety
measures through establishing a safety zone. This document also
proposes to update the current list of recurring safety zones with
revisions, additional events, and removal of events that no longer take
place in Sector Upper Mississippi River's AOR. Additionally, this one
proposed rulemaking project reduces administrative costs involved in
producing separate proposed rules for each individual recurring safety
zone and serves to provide notice of the known recurring safety zones
throughout the year. We invite your comments on this proposed
rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before May 9, 2016.

ADDRESSES: You may submit comments identified by docket number USCG-
2015-1079 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email LCDR Sean Peterson, Chief of
Prevention, U.S. Coast Guard; telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

AOR Area of Responsibility
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    The Captain of the Port (COTP) Upper Mississippi River is proposing
to amend and update its current list of recurring safety zones.
    The current list of annual and recurring safety zones occurring in
Sector Upper Mississippi River's AOR is published under 33 CFR part
165.801, Table 2. This current list was established through a
rulemaking process providing for comment and public participation. No
adverse comments were received, resulting in the final rulemaking 80 FR
49911, which was published August 18, 2015. The final rulemaking
amended 33 CFR 165.801 to establish the current list of recurring
safety zones.
    This rulemaking proposes to add to, amend, and update the list of
annually recurring safety zones under Table 2 in 33 CFR 165.801 for
annual and recurring safety zones in the COTP Upper Mississippi zone.
    The Coast Guard is amending and updating the annual and recurring
safety zone regulations under 33 CFR part 165 to include the most up to
date list of annual and recurring safety zones for events held on or
around navigable waters within Sector Upper Mississippi River's AOR.
These events include fireworks displays, air shows, festival events,
and other recurring marine related safety needs. The current list under
33 CFR 165.801 requires amending to provide new information on existing
safety zones, updating to include new safety zones expected to recur
annually, and to remove safety zones that are no longer required.
Issuing individual regulations for each new safety zone, amendment, or
removal of an existing safety zones creates unnecessary administrative
costs and burdens. This single proposed rulemaking will considerably
reduce administrative overhead and provide the public with notice
through publication in the Federal Register of the upcoming annual and
recurring safety zones. The Coast Guard proposes this rulemaking under
the authority in 33 U.S.C. 1221.

III. Discussion of Proposed Rule

    33 CFR part 165 contains regulations establishing limited access
areas on U.S. navigable waters. Section 165.801 lists the established
recurring safety zones taking place in the Eighth Coast Guard District
separated into tables for each of the seven sectors within the Eighth
District. Table 2 lists the recurring safety zones for Sector Upper
Mississippi River. This section, and table, requires amendment from
time to time to properly reflect the recurring safety zones in Sector
Upper Mississippi River's AOR. This proposed rule amends and updates
Section 165.801 replacing the current Table 2 for Sector Upper
Mississippi River.
    Additionally, this proposed rule adds 3 new, modifies 7, and
removes 14 recurring safety zones as listed below.
    This proposed rule adds 3 new safety zones to Table 2 in Sec.
165.801 as follows:

----------------------------------------------------------------------------------------------------------------
                                                                     Sector Upper
               Date                        Sponsor/name           Mississippi River           Safety zone
                                                                       location
----------------------------------------------------------------------------------------------------------------
1 day--Weekend before Thanksgiving  Main Street Parkway         Parkville, MO........  Missouri River mile
                                     Association/Parkville                              marker 377.5 to 378.0.
                                     Christmas on the River.
2 days--A weekend in September....  St. Louis Drag Boat         New Athens, IL.......  Kaskaskia River mile
                                     Association/New Athens                             marker 119.7 to 120.3.
                                     Drag Boat Race.
1 day--4th of July weekend........  City of Marquette/          Marquette, IA........  Upper Mississippi River
                                     Marquette Independence                             mile marker 634.2 to
                                     Day Celebration.                                   635.7.
----------------------------------------------------------------------------------------------------------------

    This proposed rule modifies the following 7 safety zones currently
listed in Table 2 in Sec.  165.801 as follows:

----------------------------------------------------------------------------------------------------------------
                                                                     Sector Upper
               Date                        Sponsor/name           Mississippi River           Safety zone
                                                                       location
----------------------------------------------------------------------------------------------------------------
3. 1 day--2nd weekend of June.....  City of Champlin/Father     Champlin, MN.........  Upper Mississippi River
                                     Hennepin Fireworks                                 mile marker 870.5 to
                                     Display.                                           872.0.
6. 1 day--1st weekend of September  Tan-Tar-A Resort/Tan-Tar-A  Lake of the Ozarks,    Lake of the Ozarks mile
                                     Labor Day Fireworks.        MO.                    marker 025.8 to 026.2.

12. 1 day--4th of July weekend....  Guttenberg Development and  Guttenberg, IA.......  Upper Mississippi River
                                     Tourism/Stars and Stripes                          mile marker 615.0 to
                                     River Day.                                         615.5.
34. 1 day--Sunday of Father's Day   Winona Steamboat Days/      Winona, MN...........  Upper Mississippi River
 weekend.                            Winona Steamboat Days                              mile marker 725.4 to
                                     Fireworks.                                         725.7.
35. 3 days--4th of July weekend...  Fair of St. Louis/Fair St.  St. Louis, MO........  Upper Mississippi River
                                     Louis.                                             mile marker 179.2 to
                                                                                180.0.
45. 2 days--3rd weekend of          Riverside Chamber of        Riverside, MO........  Missouri River mile
 September.                          Commerce/Riverfest.                                marker 371.8 to 372.2
48. 2 days--Weekend that precedes   Lake of the Ozarks          Lake of the Ozarks,    Lake of the Ozarks mile
 Labor Day Weekend.                  Shootout, Inc./Lake of      MO.                    marker 032.5 to 034.5.
                                     the Ozarks Shootout.
----------------------------------------------------------------------------------------------------------------

    This proposed rule removes the following 14 safety zones from the
existing Table 2 in Sec.  165.801:

----------------------------------------------------------------------------------------------------------------
                                                                  Sector Upper
                Date                      Sponsor/name          Mississippi River            Safety zone
                                                                    location
----------------------------------------------------------------------------------------------------------------
14. 1 day--4th of July weekend.....  Hannibal Jaycees/       Hannibal, MO..........  Upper Mississippi River
                                      National Tom Sawyer                             mile marker 308.0 to
                                      Days.                                           309.0.
15. 1 day--4th of July weekend.....  Fort Madison Partner/   Fort Madison, WI......  Upper Mississippi River
                                      Fort Madison Fourth                             mile marker 383.0 to
                                      of July Fireworks.                              384.0.
16. 5 days--Last week in June/1st    Taste of Minnesota/     Minneapolis, MN.......  Upper Mississippi River
 week in July.                        Taste of Minnesota.                             mile marker 839.8 to
                                                                                840.2.
17. 1 day--4th of July weekend.....  John E. Curran/John E.  Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Curran Fireworks.                               marker 008.8 to 009.2.
25. 1 day--4th of July weekend.....  Chillicothe Police      Chillicothe, IL.......  Illinois River mile marker
                                      Department/                                     179.1 to 180.0.
                                      Chillicothe 4th of
                                      July.
26. 2 days--2nd weekend in July....  Clinton Riverboat Day/  Clinton, IA...........  Upper Mississippi River
                                      Clinton Riverboat                               mile marker 518.0 to
                                      Days.                                           519.0.
27. 1 day--4th of July weekend.....  Harrah's Casino and     Omaha, NE.............  Missouri River mile marker
                                      Hotel/Harrah's                                  615.0 to 615.6.
                                      Fireworks
                                      Extravaganza.
36. Friday and Saturday, every       Fair of St. Louis/Live  St. Louis, MO.........  Upper Mississippi River
 weekend from the 2nd weekend of      on the Levee.                                   mile marker 179.2 to
 July until the 2nd weekend in                                                        180.0.
 August.
47. 1 day--3rd week in July........  Rivercade Association/  North Sioux City, SD..  Missouri River mile marker
                                      Sioux City Rivercade.                           732.2 to 732.6.
49. 1 day--1st weekend of September  Camden on the Lake      Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Labor Day Fireworks/                            marker 007.1 to 006.9.
                                      Camden on the Lake.
51. 1 day--1st weekend of August...  New Piasa Chautauqua/   Elsah, IL.............  Upper Mississippi River
                                      New Piasa Chautauqua.                           mile marker 215.6 to 216.
52. 1 day--last weekend in May.....  Horny Toad, Inc./Horny  Lake of the Ozarks....  Lake of the Ozarks mile
                                      Toad Fireworks                                  marker 006.8 to 007.2.
                                      Display.
53. 1 day--4th of July weekend.....  Omaha Royals/Omaha      Omaha, NE.............  Missouri River mile marker
                                      World Herald                                    612.1 to 613.9.
                                      Fireworks.
54. 1 day--Last weekend in July....  Great River Days, Inc./ Muscatine, IA.........  Upper Mississippi River
                                      Great River Days.                               mile marker 455.0 to
                                                                                456.0.
----------------------------------------------------------------------------------------------------------------

    The effect of this proposed rule will be to restrict general
navigation in the safety zone during the event. Vessels will experience
limited access on the waterway when the safety zones are in effect.
Requests to transit into, through, or within a safety zone will be
considered and will be allowed only when deemed safe by the COTP Upper
Mississippi River, or designated representative.

IV. Regulatory Analyses

    We developed this proposed 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 13563 emphasizes the importance of
quantifying both costs and benefits, of reducing costs, of harmonizing
rules, and of promoting flexibility. This NPRM has not been designated
a ``significant regulatory action,'' under Executive Order 12866.
Accordingly, the NPRM has not been reviewed by the Office of Management
and Budget.
    The Coast Guard expects the economic impact of this proposed rule
to be minimal, and therefore a full regulatory evaluation is
unnecessary. This proposed rule establishes safety zones limiting
access to certain areas under 33 CFR part 165 within Sector Upper
Mississippi River's AOR. The effect of this proposed rulemaking will
not be significant because these safety zones are limited in scope and
duration. Additionally, the public is given advance notification
through local forms of notice, the Federal Register, and/or Notices of
Enforcement and thus will be able to plan operations around the safety
zones in advance. Deviation from the safety zones established through
this proposed rulemaking may be requested from the COTP Upper
Mississippi River or a designated representative and requests will be
considered on a case-by-case basis.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
    While some owners or operators of vessels intending to transit
these safety zones may be small entities, for the reasons stated in
section IV.A. above, this proposed rule would not have a significant
economic impact on any vessel owner or operator.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.
    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 proposed 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. The Coast Guard will not retaliate against small entities that
question or complain about this proposed rule or any policy or action
of the Coast Guard.

C. Collection of Information

    This proposed rule would 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 proposed 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 proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would 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 proposed rule has implications for federalism or
Indian tribes, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section.

E. Unfunded Mandates Reform Act

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

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. This proposed rule involves rules
establishes safety zones limiting access to certain areas under 33 CFR
165 within Sector Upper Mississippi River's AOR. Normally such actions
are categorically excluded from further review under paragraph 34(h) of
Figure 2-1 of Commandant Instruction M16475.lD. A preliminary
environmental analysis checklist and Categorical Exclusion
Determination are available in the docket where indicated under
ADDRESSES. We seek any comments or information that may lead to the
discovery of a significant environmental impact from this proposed
rule.

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.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://

www.regulations.gov. If your material cannot be submitted using http://www.regulations.gov, contact the person in the FOR FURTHER INFORMATION
CONTACT section of this document for alternate instructions.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, you may review a Privacy Act notice regarding the Federal
Docket Management System in the March 24, 2005, issue of the Federal
Register (70 FR 15086).
    Documents mentioned in this NPRM as being available in the docket,
and all public comments, will be in our online docket at http://www.regulations.gov and can be viewed by following that Web site's
instructions. Additionally, if you go to the online docket and sign up
for email alerts, you will be notified when comments are posted or a
final rule is published.

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 proposes
to amend 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:  33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-
1, 6.04-6, and 160.5; Department of Homeland Security Delegation No.
0170.1.
0
2. Amend Sec.  165.801(d) by revising Table 2 to read as follows:

Sec.  165.801  Annual fireworks displays and other events in the Eighth
Coast Guard District requiring safety zones.

* * * * *

           Table 2 of Sec.   165.801--Sector Upper Mississippi River Annual and Recurring Safety Zones
----------------------------------------------------------------------------------------------------------------
                                                                  Sector Upper
                Date                      Sponsor/name          Mississippi River            Safety zone
                                                                    location
----------------------------------------------------------------------------------------------------------------
1. 1 day--4th weekend of July......  Marketing Minneapolis   Minneapolis, MN.......  Upper Mississippi River
                                      LLC/Target                                      mile marker 853.2 to
                                      Aquatennial Fireworks.                          854.2.
2. 1 day--4th of July weekend......  Radio Dubuque/Radio     Dubuque, IA...........  Upper Mississippi River
                                      Dubuque Fireworks and                           mile marker 581.0 to
                                      Air show.                                       583.0.
3. 1 day--2nd weekend of June......  City of Champlin/       Champlin, MN..........  Upper Mississippi River
                                      Father Hennepin                                 mile marker 870.5 to
                                      Fireworks Display.                              872.0.
4. 1 day--4th of July weekend......  Downtown Main Street/   Red Wing, MN..........  Upper Mississippi River
                                      Mississippi                                     mile marker 790.8 to
                                      Alumination.                                    791.2.
5. 1 day--4th of July weekend......  Tan-Tar-A Resort/Tan-   Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Tar-A 4th of July                               marker 025.8 to 026.2.
                                      Fireworks.
6. 1 day--1st weekend of September.  Tan-Tar-A Resort/Tan-   Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Tar-A Labor Day                                 marker 025.8 to 026.2.
                                      Fireworks.
7. 1 day--Last Sunday in May.......  Tan-Tar-A Resort/Tan-   Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Tar-A Memorial Day                              marker 025.8 to 026.2.
                                      fireworks.
8. 1 day--4th of July weekend......  Lake City Chamber of    Lake City, MN.........  Upper Mississippi River
                                      Commerce/Lake City                              mile marker 772.4 to
                                      4th of July Fireworks.                          772.8.
9. 1 day--4th of July weekend......  Greater Muscatine       Muscatine, IA.........  Upper Mississippi River
                                      Chamber of Commerce/                            mile marker 455.0 to
                                      Muscatine 4th of July.                          456.0.
10. 1 day--Last weekend in June/     Friends of the River    Kansas City, KS.......  Missouri River mile marker
 First weekend in July.               Kansas City/KC                                  364.8 to 365.2.
                                      Riverfest.
11. 1 day--4th of July weekend.....  Louisiana Chamber of    Louisiana, MO.........  Upper Mississippi River
                                      Commerce/Louisiana                              mile marker 282.0 to
                                      July 4th Fireworks.                             283.0.
12. 1 day--4th of July weekend.....  Guttenberg Development  Guttenberg, IA........  Upper Mississippi River
                                      and Tourism/Stars and                           mile marker 615.0 to
                                      Stripes River Day.                              615.5.
13. 4 days--1st or 2nd week of July  Riverfest, Inc./La      La Crosse, WI.........  Upper Mississippi River
                                      Crosse Riverfest.                               mile marker 697.5 to 698.5
                                                                                (Wisconsin).
14. 1 day--2nd weekend in July.....  Prairie du Chien Area   Prairie du Chien, WI..  Upper Mississippi River
                                      Chamber of Commerce/                            mile marker 633.8 to
                                      Prairie du Chien Area                           634.2.
                                      Chamber Fireworks.

15. 1 day--4th of July weekend.....  JMP Radio/Red White     Peoria, IL............  Illinois River mile marker
                                      and Boom Peoria.                                162.5 to 162.1.
16. 1 day--Last weekend in June/     Hudson Boosters/Hudson  Hudson, WI............  St. Croix River mile marker
 First weekend in July.               Booster Days.                                   016.8 to 017.2.
17. 2 days--4th of July weekend....  City of St. Charles/    St. Charles, MO.......  Missouri River mile marker
                                      St. Charles Riverfest.                          028.2 to 028.8.
18. 1 day--4th of July weekend.....  Minneapolis Park and    Minneapolis, MN.......  Upper Mississippi River
                                      Recreation Board/Red,                           mile marker 853.5 to
                                      White, and Boom                                 854.5.
                                      Minneapolis.
19. 1 day--4th of July weekend.....  Davenport One Chamber/  Davenport, IA.........  Upper Mississippi River
                                      Red White and Boom.                             mile marker 482.0 to
                                                                                482.7.
20. 2 days--3rd weekend of July....  Amelia Earhart          Kansas City, KS.......  Missouri River mile marker
                                      Festival Committee/                             422.0 to 424.5.
                                      Amelia Earhart
                                      Festival.
21. 1 day--4th of July weekend.....  Alton Exposition        Alton, IL.............  Upper Mississippi River
                                      Commission/                                     mile marker 202.5 to
                                      Mississippi Fireworks                           203.0.
                                      Festival.
22. 1 day--3rd Sunday in June......  Burlington Steamboat    Burlington, IA........  Upper Mississippi River
                                      Days/Burlington                                 mile marker 403.5 to
                                      Steamboat Days.                                 404.5.
23. 1 day--Last Sunday in May......  Lodge of the Four       Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Seasons/Lodge of the                            marker 013.8 to 014.2.
                                      Four Seasons Memorial
                                      Day Fireworks.
24. 1 day--First weekend of          Lodge of the Four       Lake of the Ozarks, MO  Lake of the Ozarks mile
 September.                           Seasons/Labor Day                               marker 013.8 to 014.2.
                                      Fireworks.
25. 1 day--4th of July weekend.....  Lodge of the Four       Lake of the Ozarks, MO  Lake of the Ozarks mile
                                      Seasons/Lodge of the                            marker 013.8 to 014.2.
                                      Four Seasons 4th of
                                      July.
26. 2 days--3rd weekend in July....  Hasting Riverboat Days/ Hasting, MN...........  Upper Mississippi River
                                      Rivertown Days.                                 mile marker 813.7 to
                                                                                815.2.
27. 1 day--Sunday of Father's Day    Winona Steamboat Days/  Winona, MN............  Upper Mississippi River
 weekend.                             Winona Steamboat Days                           mile marker 725.4 to
                                      Fireworks.                                      725.7.
28. 3 days--4th of July weekend....  Fair of St. Louis/Fair  St. Louis, MO.........  Upper Mississippi River
                                      St. Louis.                                      mile marker 179.2 to
                                                                                180.0.
29. 1 day--Last weekend in June/     Bellevue Heritage Days/ Bellevue, IA..........  Upper Mississippi River
 First weekend in July.               Bellevue Heritage                               mile marker 556.0 to
                                      Days.                                           556.5.
30. 1 day--4th of July weekend.....  Main Street Parkway     Parkville, MO.........  Missouri River mile marker
                                      Association/Parkville                           378.0 to 377.5.
                                      4th of July Fireworks.
31. 1 day--4th of July weekend.....  Hermann Chamber of      Hermann, MO...........  Missouri River mile marker
                                      Commerce/Hermann 4th                            099.0 to 098.0 (Missouri).
                                      of July.
32. 1 day--4th of July weekend.....  Grafton Chamber of      Grafton, IL...........  Illinois River mile marker
                                      Commerce/Grafton                                001.5 to 000.5 (Illinois).
                                      Chamber 4th of July
                                      Fireworks.
33. 1 day--4th of July weekend.....  Salute to America       Jefferson City, MO....  Missouri River mile marker
                                      Foundation, Inc./                               143.5 to 143.0 (Missouri).
                                      Salute to America.
34. 1 day--4th of July weekend.....  McGregor/Marquette      McGregor, IA..........  Upper Mississippi River
                                      Chamber Commerce/                               mile marker 635.7 to
                                      Independence Day                                634.2.
                                      Celebration.
35. 2 days--2nd weekend in August..  Tug Committee/Great     Port Byron, IL........  Upper Mississippi River
                                      River Tug.                                      mile marker 497.2 to 497.6
                                                                                (Illinois).

36. 1 day--4th of July weekend.....  City of Stillwater/St.  Stillwater, MN........  St. Croix River mile marker
                                      Croix Events/                                   022.9 to 023.5
                                      Stillwater 4th of                               (Minnesota).
                                      July.
37. 2 days--3rd weekend of           Riverside Chamber of    Riverside, MO.........  Missouri River mile marker
 September.                           Commerce/Riverfest.                             371.8 to 372.2.
38. 4 days--3rd week of July.......  St. Croix Events/       Stillwater, MN........  St. Croix River mile marker
                                      Lumberjack Days.                                022.9 to 023.5
                                                                                (Minnesota).
39. 2 days--Weekend that precedes    Lake of the Ozarks      Lake of the Ozarks, MO  Lake of the Ozarks mile
 Labor Day Weekend.                   Shootout, Inc./Lake                             marker 032.5 to 034.5.
                                      of the Ozarks
                                      Shootout.
40. 2 days--1st weekend of           City of Keithsburg/     Keithsburg, IL........  Upper Mississippi River
 September.                           Keithsburg Fireworks                            mile marker 427.5 to
                                      Display.                                        427.3.
41. 1 day--4th of July weekend.....  City of East Moline/    East Moline, IA.......  Upper Mississippi River
                                      City of East Moline                             mile marker 490.2 to
                                      Fireworks.                                      489.8.
42. 2nd Weekend in August..........  Lansing Lion's Club/    Lansing, IA...........  Upper Mississippi River
                                      Lansing Fish Days                               mile marker 662.8-663.9.
                                      Fireworks.
43. 3rd Weekend in August..........  River Action/           Rock Island, Illinois.  Upper Mississippi River
                                      Floatzilla.                                     mile marker 479.0-486.0.
44. 1 day--Weekend before            Main Street Parkway     Parkville, MO.........  Missouri River mile marker
 Thanksgiving.                        Association/Parkville                           377.5 to 378.0.
                                      Christmas on the
                                      River.
45. 2 days--A weekend in September.  St. Louis Drag Boat     New Athens, IL........  Kaskaskia River mile marker
                                      Association/New                                 119.7 to 120.3.
                                      Athens Drag Boat Race.
46. 1 day--4th of July weekend.....  City of Marquette/      Marquette, IA.........  Upper Mississippi River
                                      Marquette                                       mile marker 634.2 to
                                      Independence Day                                635.7.
                                      Celebration.
----------------------------------------------------------------------------------------------------------------

* * * * *

    Dated: April 4, 2016.
M. L. Malloy,
Captain, U.S. Coast Guard, Captain of the Port Upper Mississippi River.
[FR Doc. 2016-07997 Filed 4-7-16; 8:45 am]
 BILLING CODE 9110-04-P