[Federal Register: August 12, 2009 (Volume 74, Number 154)]
[Notices]
[Page 40584-40588]
[DOCID:fr12au09-59]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2008-0177; FRL-8429-2]

Nominations to the FIFRA Scientific Advisory Panel; Request for
Comments

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice provides the names, addresses, professional
affiliations, and selected biographical data of persons nominated to
serve on the Scientific Advisory Panel (SAP) established under section
25(d) of the Federal Insecticide, Fungicide, and Rodenticide Act
(FIFRA). The FIFRA SAP was created on November 28, 1975, and made a
statutory panel by amendment to FIFRA, dated October 25, 1988. The
Agency is, at this time, selecting two new members to serve on the
FIFRA SAP as a result of a membership term that will expire this year
and the sudden and unexpected loss of a FIFRA SAP member. Public
comment on the nominations is invited, as these comments will be used
to assist the Agency in selecting the new chartered FIFRA SAP members.

DATES: Comments must be received on or before September 11, 2009.

ADDRESSES:  Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2008-0177, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
     Mail: Office of Pesticide Programs (OPP) Regulatory Public
Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania
Ave., NW., Washington, DC 20460-0001.
     Delivery: OPP Regulatory Public Docket (7502P),
Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South
Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only
accepted during the Docket Facility's normal hours of operation (8:30
a.m. to 4 p.m., Monday through Friday, excluding legal holidays).
Special arrangements should be made for deliveries of boxed
information. The Docket Facility telephone number is<PHONE_NUMBER>.
    Instructions: Direct your comments to docket ID number EPA-HQ-OPP-
2008-0177. EPA's policy is that all comments received will be included
in the docket without change and may be made available on-line at
http://www.regulations.gov, including any personal information
provided, unless

the comment includes information claimed to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute. Do not submit information that you consider to be CBI or
otherwise protected through regulations.gov or e-mail. The
regulations.gov website is an ``anonymous access'' system, which means
EPA will not know your identity or contact information unless you
provide it in the body of your comment. If you send an e-mail comment
directly to EPA without going through regulations.gov, your e-mail
address will be automatically captured and included as part of the
comment that is placed in the docket and made available on the
Internet. If you submit an electronic comment, EPA recommends that you
include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the docket are listed in the docket index
available at http://www.regulations.gov. Although listed in the index,
some information is not publicly available, e.g., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, is not placed on the Internet
and will be publicly available only in hard copy form. Publicly
available docket materials are available either in the electronic
docket at http://www.regulations.gov, or, if only available in hard
copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac
Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The hours of
operation of this Docket Facility are from 8:30 a.m. to 4 p.m., Monday
through Friday, excluding legal holidays. The Docket Facility telephone
number is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Myrta R. Christian, Designated Federal
Official (DFO), FIFRA SAP, Office of Science Coordination and Policy
(7201M), Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>; fax
number:<PHONE_NUMBER>; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does This Action Apply to Me?

    This action is directed to the public in general. This action may,
however, be of interest to persons who are or may be required to
conduct testing of chemical substances under the Federal Food, Drug,
and Cosmetic Act (FFDCA), FIFRA, and the Food Quality Protection Act of
1996 (FQPA). Since other entities may also be interested, the Agency
has not attempted to describe all the specific entities that may be
affected by this action. If you have any questions regarding the
applicability of this action to a particular entity, consult the person
listed under FOR FURTHER INFORMATION CONTACT.

B. What Should I Consider as I Prepare My Comments for EPA?

    When submitting comments, remember to:
    1. Identify the document by docket ID number and other identifying
information (subject heading, Federal Register date and page number).
    2. Follow directions. The Agency may ask you to respond to specific
questions or organize comments by referencing a Code of Federal
Regulations (CFR) part or section number.
    3. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
    4. Describe any assumptions and provide any technical information
and/or data that you used.
    5. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    6. Provide specific examples to illustrate your concerns and
suggest alternatives.
    7. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
    8. Make sure to submit your comments by the comment period deadline
identified.

II. Background

     The FIFRA SAP serves as the primary scientific peer review
mechanism of EPA's Office of Prevention, Pesticides and Toxic
Substances and is structured to provide scientific advice, information,
and recommendations to the EPA Administrator on pesticides and
pesticide-related issues as to the impact of regulatory actions on
health and the environment. The FIFRA SAP is a Federal advisory
committee, established in 1975 under FIFRA, that operates in accordance
with requirements of the Federal Advisory Committee Act (FACA). The
FIFRA SAP is composed of a permanent panel consisting of seven members
who are appointed by the EPA Administrator from nominees provided by
the National Institutes of Health (NIH) and the National Science
Foundation (NSF). FIFRA, as amended by FQPA, established a Science
Review Board consisting of at least 60 scientists who are available to
the FIFRA SAP on an ad hoc basis to assist in reviews conducted by the
FIFRA SAP. As a peer review mechanism, the FIFRA SAP provides comments,
evaluations, and recommendations to improve the effectiveness and
quality of analyses made by Agency scientists. Members of the FIFRA SAP
are scientists who have sufficient professional qualifications,
including training and experience, to provide expert advice and
recommendation to the Agency. The Agency is, at this time, selecting
two new members to serve on the permanent FIFRA SAP as a result of a
membership term that will expire this year and the sudden and
unexpected loss of a FIFRA SAP member. The Agency requested nominations
of experts to be selected from the field of environmental risk
assessment including: planning, scoping, and problem formulation;
analysis; and interpretation and risk characterization (including the
interpretation and communication of uncertainty). Nominees should be
well published and current in their fields of expertise. The statute
further stipulates that we publish the names, addresses, and
professional affiliations in the Federal Register.

III. Charter

     A charter for the FIFRA SAP, dated October 24, 2008, was issued in
accordance with the requirements of FACA, Public Law 92-463, 86 Stat.
770 (5 U.S.C. App.).

A. Qualifications of Members

     FIFRA SAP members are scientists who have sufficient professional
qualifications, including training and experience, to be capable of
providing expert comments as to the impact of pesticides on health and
the environment. No persons are ineligible to serve on the FIFRA SAP by
reason of their membership on any other advisory committee to a Federal
department or agency or their employment by a Federal department or
agency (except the EPA). The EPA Administrator appoints individuals to
serve on the FIFRA SAP for staggered terms of 4 years unless the
appointment serves to fill an unexpired term for a vacancy that has
occurred due to a member resignation or reason other than

expiration of a term. The FIFRA SAP members, as Special Government
Employees, are subject to the provisions of 5 CFR Part 2635-Standards
of Ethical Conduct for Employees of the Executive Branch. Each nominee
selected by the EPA Administrator before being formally appointed, is
requested to submit a confidential statement of employment and
financial interests, which shall fully disclose, among other financial
interests, the nominee's sources of research support, if any.
     In accordance with section 25(d)(1) of FIFRA, the EPA
Administrator shall require all nominees to the FIFRA SAP to furnish
information concerning their professional qualifications, educational
background, employment history, and scientific publications.

B. Applicability of Existing Regulations

     With respect to the requirements of section 25(d) of FIFRA that
the Administrator promulgate regulations regarding conflicts of
interest, the charter provides that EPA's existing regulations
applicable to Special Government Employees, which include advisory
committee members, will apply to the members of the FIFRA SAP. These
regulations appear in 5 CFR part 2635. In addition, the charter
provides for open meetings with opportunities for public participation.

C. Process of Obtaining Nominees

     In accordance with the provisions of section 25(d) of FIFRA, EPA,
in April 2009, requested that NIH and NSF nominate scientists for
consideration to serve on the FIFRA SAP. The Agency requested
nominations of experts in the field of environmental risk assessment
including: planning, scoping, and problem formulation; analysis; and
interpretation and risk characterization (including the interpretation
and communication of uncertainty). NIH and NSF responded by letter,
providing the Agency with a total of 14 nominees. Seven of the 14
nominees are interested and available to actively participate in FIFRA
SAP meetings (see Unit IV.). The following 7 nominees are not
available:
    1. Blomquist, Gary, Ph.D., University of Nevada, Reno, NV.
    2. Greer, Linda, Ph.D., National Resources Defense Council, San
Francisco, CA.
    3. Haws, Laurie C., Ph.D., DABT, ToxStrategies Inc., Austin, TX.
    4. Kim, Amy, Ph.D., DABT, Genentech, Inc., San Francisco, CA.
    5. Lanno, Roman P., Ph.D., Ohio State University, Columbus, OH.
    6. Thomas, Russell S., MS, Ph.D., The Hamner Institutes for Health
Sciences, Research Triangle Park, NC.
    7. Tickner, Joel A., ScD, MSc, BA, University of Massachusetts-
Lowell, Lowell, MA.

IV. Nominees

     The following are the names, addresses, professional affiliations,
and selected biographical data of nominees being considered for
membership on the FIFRA SAP. The Agency expects to select two of the
nominees to fill the vacancies described in this notice.
     1. Nominee. Braverman, Michael, Ph.D., Manager, Biopesticide
Program--Rutgers University, Princeton, NJ.
     i. Expertise. Efficacy and environmental fate of pesticides.
     ii. Education. B.S., Agriculture/Biology, Murray State University,
KY; M.S., Agronomy (Weed Science), University of Arkansas; Ph.D.,
Horticulture (Vegetable Crops), University of Florida.
     iii. Professional experience. Dr. Michael Braverman is currently a
Senior Scientist and Manager of the Biopesticide and Organic Support
Program for the IR-4 Project at Rutgers University. He oversees a
cooperative research project with the United States Department of
Agriculture (USDA), State Agriculture Experimental Station, and
industry scientists to develop data to support the registration of
biopesticides on specialty crops. Dr. Braverman earned his Ph.D. in
Horticulture from the University of Florida with an emphasis on
herbicide fate and transport in muck soils. Dr. Braverman has 20 years
experience in pesticide research and regulations involving efficacy,
laboratory analysis of pesticide residues, herbicide physiology, and
environmental fate. Dr. Braverman currently supervises a national
efficacy grant program involving the review of research proposals
designed to develop efficacy data involving biopesticides. Dr.
Braverman has provided education, guidance, and technical expertise in
the design, interpretation of research and scientific literature review
aligned with EPA Product Chemistry, Residue, Human Health and Non-
Target Ecotoxicology Guidelines on behalf of USDA, university
scientists from other institutions and small businesses. The emphasis
of his program has been in synchronization with EPA's Biopesticides and
Pollution Prevention Division. He co-manages and co-reviews research
programs with EPA's Office of Pollution Prevention and Toxics to
promote the adoption of reduced risk products. He has also been an
advisor to USDA's Agricultural Research Service (ARS) in regulation,
risk assessment, and monitoring and distribution agreements of Plant
Incorporated Protectants (PIPs) developed by USDA researchers. He has
served as a panel member on several USDA's Cooperative State Research,
Education, and Extension Service research grant review programs as well
as editorial reviewer of research in the flagship journals of the Weed
Science Society of America and the American Phytopathological Society.
He has been a leader of intensive regulatory workshops for Agriculture
and Ag Food Canada as well as a participant with EPA in workshops
involving biopesticide regulations. He has trained M.S. and Ph.D. level
graduate students, one of which currently works in EPA's Environmental
Fate and Effects Division performing risk assessments on endangered
species. On an international level, under the auspices of USDA's
Foreign Agricultural Service, he has conducted regulatory workshops to
develop regulatory expertise on how to conduct risk assessments in
Benin, Colombia, Egypt, Ethiopia, Kenya, Mali, Nigeria, Senegal, South
Africa, Tanzania, and Uganda for natural products, microorganism and
biotechnology products. He is currently managing a global residue
zoning project in over 20 countries in Africa, Asia, Australia, Europe,
the Middle East, and North and South America in cooperation with EPA's
Office of Pesticide Programs, Analytical Chemistry Laboratory, Fort
Meade, MD.
     2. Nominee. Fisher, Jeffrey W., Ph.D., Professor and Director,
Interdisciplinary Toxicology Program, University of Georgia, Athens,
GA.
     i. Expertise. Development and application of biologically based
mathematical models to ascertain health risks from environmental and
occupational chemical exposures.
     ii. Education. B.S., Biology, University of Nebraska at Kearney;
M.S., Biology/Ecology, Wright State University, Dayton, OH; Ph.D.,
Zoology/Toxicology, Miami University of Ohio.
     iii. Professional experience. Dr. Jeffrey W. Fisher is a Professor
in the Department of Environmental Health Science, College of Public
Health at the University of Georgia (UGA) and Director of the
Interdisciplinary Toxicology Program. Dr. Fisher's research interests
are in the development and application of biologically based
mathematical models to ascertain health risks from environmental and
occupational chemical exposures. Dr. Fisher's modeling experience
includes working with chlorinated and non-chlorinated solvents, fuels,
polychlorinated biphenyls, pyrethroids, and perchlorate. Dr. Fisher has
published over 100

papers on computational modeling for dose response analyses in
laboratory animals and humans. He has developed physiologically based
pharmacokinetic models for use in cancer risk assessment, estimating
lactational transfer of solvents, understanding in utero and neonatal
dosimetry and quantifying metabolism of solvent mixtures. Over the last
10 years Dr. Fisher has developed systems biology models for the
hypothalamic-pituitary-thyroid axis (biologically based dose response
(BBDR) models in rodents and humans). He has trained several graduate
students and postdoctoral fellows on the concepts and application of
physiological and system biology models. Dr. Fisher's laboratory and
computational research are funded through grants provided by EPA,
Centers for Disease Control and Prevention, Agency for Toxic Substances
and Disease Registry (ATSDR); Air Force Office of Scientific Research;
United States Air Force; Department of Energy; and occasionally
subcontracts with nonprofit organizations or trade groups. He has
served on several national panels and advisory boards for the
Departement of Defense, ATSDR, EPA, and non-profit organizations. He
also has been a U.S. delegate for the North Atlantic Treaty
Organization. He is currently on the Science Advisory Board for EPA and
is associate editor for Toxicological Sciences.
    3. Nominee. Hattis, Dale, Ph.D., Research Professor, Center for
Technology, Environment, and Development, George Perkins Marsh
Institute, Clark University, Worcester, MA.
    i. Expertise. Modeling and uncertainty analysis in risk assessment.
     ii. Education. B.S., Biochemistry, University of California,
Berkeley, CA; Ph.D., Genetics, Stanford University, Stanford, CA.
     iii. Professional experience. Dr. Dale Hattis is a Research
Professor with the George Perkins Marsh Institute at Clark University.
For the past 3 decades he has been engaged in the development and
application of methodology to assess the health, ecological, and
economic impacts of regulatory actions. His work has focused on
approaches to incorporate inter-individual variability data and
quantitative mechanistic information into risk assessments for both
cancer and non-cancer endpoints. Recent past research has explored age-
related differences in sensitivity to carcinogenesis and other effects,
a taxonomy of different non-mutagenic modes of action for
carcinogenesis with likely differential implications for age-related
sensitivity, and physiologically based pharmacokinetic (PBPK) modeling
of acrylamide dose in rats and humans, and mechanism-based dose
response modeling of carcinogenic effects from ionizing radiation.
Current efforts are using PBPK modeling to better assess dose response
relationships for human birth weight changes and developmental delays
associated with exposure to the insecticide chlorpyrifos during
pregnancy. He is a leader in efforts to replace the current system of
uncertainty factors for non-cancer effects with distributions based on
empirical observations. He is a member of the Clean Air Science
Advisory Committee reviewing EPA efforts to reassess the National
Ambient Air Quality Criteria for nitrogen oxides and sulfur oxides, and
for several years he has served as a member of the Food Quality
Protection Act Science Review Board. Until recently he has also been a
member of the Environmental Health Committee of the EPA Science
Advisory Board. For 2007 he was the Chair of the Dose Response
Specialty Group of the Society for Risk Analysis. He has also served as
a member of the National Research Council Committee on Estimating the
Health-Risk-Reduction Benefits of Proposed Air Pollution Regulations.
He has been a counselor and is a Fellow of the Society for Risk
Analysis, and serves on the editorial board of its journal, Risk
Analysis.
    4. Nominee. Hayes, Tyrone B., Ph.D., Professor, University of
California, Berkeley, CA.
     i. Expertise. Role of steroid hormones in amphibian development
and effects of pesticides on amphibian development, growth,
reproduction, and immune function.
     ii. Education. B.A., Biology, Harvard University, Cambridge, MA;
Ph.D., Integrative Biology, University of California, Berkeley, CA.
     iii. Professional experience. Dr. Tyrone B. Hayes' research
focuses on the role of steroid hormones in amphibian development in
laboratory and field studies in Africa and the United States. The two
main areas of interest are metamorphosis and sex differentiation, but
Dr. Hayes is also interested in growth (larval and adult) and hormonal
regulation of reproductive behavior. His work addresses problems on
several levels including ecological, organismal, and molecular
questions. Studies of metamorphosis examine the effects of temperature
on developmental rates, interactions between the thyroid hormones and
steroids, and hormonal regulation of skin gland development. Dr. Hayes
is also examining the effects of tadpole density on developmental rates
and measuring metamorphic rates and hormone levels of tadpoles in the
field and in the laboratory. His work on sex differentiation involves
the African clawed frog (Xenopus laevis), and several other species for
comparison. Studies in African Reedfrogs (Hyperolius spp), for example,
examine the role of steroid hormones in both primary sex
differentiation and in secondary sex differentiation. Ongoing studies
also examine the role of steroids in sex differentiation in reptile
species that display genetic sex determination. In all of his research,
his main goal is to synthesize ecological/evolutionary, organismal/
physiological, and biochemical/molecular studies to learn how an animal
translates changes in its external environment to internal changes, how
these internal changes are coordinated, what molecular mechanisms are
involved, and in turn, how changes at the molecular level affect an
animal's ability to adapt to the changes in its external environment.
     Most recently, Dr. Hayes' studies have been used as models to
develop laboratory and field techniques to examine the effects of
endocrine disrupting contaminants on amphibian development. His current
research in this area focuses on the effects of pesticides mixtures on
larval development and the potential role of pesticides in amphibian
declines of laboratory and field studies. This work has also expanded
to use human cell lines and to examine the potential role of endocrine-
disrupting contaminants in ethnic/racial disparities in cancer
outcomes.
    5.  Nominee. LeBlanc, Gerald A., Ph.D., Professor and Head of the
Department of Environmental and Molecular Toxicology, North Carolina
State University, Raleigh, NC.
    i. Expertise. Environmental endocrine toxicology.
     ii. Education. B.S., Biology, University of Massachusetts, North
Dartmouth, MA; M.A., Biology, Bridgewater State College, Bridgewater,
MA; Ph.D., Biology, University of South Florida, Tampa, FL.
     iii. Professional experience. Dr. Gerald A. LeBlanc maintains an
active research program in environmental endocrine toxicology. This
research involves elucidating processes that contribute to the
endocrine regulation of reproduction and development and their
disruption by environmental agents. Dr. LeBlanc's research also has
been instrumental in developing modeling approaches for evaluating the
toxicity of complex chemical mixtures. Dr. LeBlanc has published over
130

research articles and 12 text book chapters. He has served on numerous
Federal and international science advisory committees, panels, and
boards, including serving as chairman of the EPA Endocrine Disruptors
Methods Validation Advisory Committee.
     6. Nominee. Shah, Dilip M., Ph.D., Research Scientist and
Principal Investigator, Donald Danforth Plant Science Center, St Louis,
MO.
     i. Expertise. Molecular biology and agricultural biotechnology.
     ii. Education. B.S., Botany and Chemistry, South Gujarat
University, India; M.S., Genetics, North Carolina State University,
Raleigh, NC; Ph.D., Genetics, North Carolina State University, Raleigh,
NC.
     iii. Professional experience. Dr. Dilip M. Shah is a Research
Scientist and Principal Investigator at the Donald Danforth Plant
Science Center in Missouri where his lab is involved in studying the
interactions of fungal pathogens with their host plants and developing
strategies for the development of disease resistant mycotoxin-free
transgenic crops. His lab is investigating the modes of action and
biological roles of a group of proteins that act as antifungal agents
on a broad-spectrum of fungal pathogens and expressing these proteins
in transgenic crops for control of economically important fungal
pathogens. Dr. Shah has over 25 years of experience in plant molecular
biology and agricultural biotechnology. He has made substantial
contributions to the development of herbicide- and virus-resistant
crops and led a team of scientists working on fungus-resistant crops
during his previous tenure at Monsanto Company. He played a major role
in the establishment of Monsanto Company's Research and Development
Center in India. He has served on the study section of NIH and has
served on the review panel at NSF. He is a co-inventor on a number of
patents and his patents on glyphosate-tolerant crops were listed as the
``Ten Patents That Changed the World'' in 2003 year-end publication of
Intellectual Property Worldwide.
     7. Nominee. Zacharewski, Timothy R., Ph.D., Professor, Department
of Biochemistry and the National Food Safety and Toxicology Center,
Michigan State University, East Lansing, MI.
     i. Expertise. Mechanistic toxicology.
     ii. Education. B.S., Chemistry with microbiology emphasis,
University of Guelph, Guelph, Ontario, Canada; Ph.D., Toxicology, Texas
A & M University, College Station, TX.
     iii. Professional experience. Dr. Timothy R. Zacharewski is a
Professor in the Department of Biochemistry and Molecular Biology and
member of the Center for Integrative Toxicology and the National Food
Safety and Toxicology Center at Michigan State University. He graduated
with a Ph.D. in Toxicology in 1990 from Texas A&M University in the
laboratory of Dr. Stephen Safe. He received a Medical Research Council
of Canada Post Doctoral Fellowship to study with Professor Pierre
Chambon in Strasbourg, France from 1990-1992. In 1992, Dr. Zacharewski
accepted an Assistant Professor position in the Department of
Pharmacology and Toxicology at the University of Western Ontario. In
1997, he relocated to Michigan State University where he has been
pursuing research interests in the areas of mechanistic toxicology.
More specifically, his research interests include the elucidation of
receptor-mediated mechanisms of toxicity using comparative omic and
computational approaches in order to inform science-based quantitative
risk assessment, identify biomarkers of toxicity, and develop high
through-put assays to screen drugs and chemicals for toxicity. He has
published more than 100 peer-reviewed research papers, presented at
numerous national and international meetings, and participated in
various workshops addressing issues related to toxicogenomics, food
safety, mixture toxicology, environmental risk assessment, stem cells
in toxicology, endocrine disruptors, and mechanisms of toxicology. Dr.
Zacharewski has served as a member on two committees for the National
Academies of Science (i.e., Emerging Issues in Environmental Health
Sciences, Identifying and Assessing Unintended Effects of Genetically
Engineered Foods on Human Health), and as a consultant to the National
Centers for Toxicogenomics, the Science Advisory Board for EPA, the
International Life Sciences Institute/Health and Environmental Sciences
Institute Technical Committee on the Application of Genomics to
Mechanism-Based Risk Assessment, and the Science Advisory Panel for
Chemical Industry Institute of Toxicology Centers for Health Research.

List of Subjects

    Environmental protection.

    Dated: August 7, 2009.
Frank Sanders,
Director, Office of Science Coordination and Policy.
[FR Doc. E9-19313 Filed 8-11-09; 8:45 am]

BILLING CODE 6560-50-S


[Federal Register Volume 86, Number 200 (Wednesday, October 20, 2021)]
[Notices]
[Pages 58110-58116]
[FR Doc No: 2021-22810]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93324; File No. 4-700]

Program for Allocation of Regulatory Responsibilities Pursuant to
Rule 17d-2; Notice of Filing and Order Approving and Declaring
Effective an Amended Plan for the Allocation of Regulatory
Responsibilities Between the Financial Industry Regulatory Authority,
Inc. and Investors' Exchange LLC

October 14, 2021.
    Notice is hereby given that the Securities and Exchange Commission
(``Commission'') has issued an Order, pursuant to Section 17(d) of the
Securities Exchange Act of 1934 (``Act''),\1\ approving and declaring
effective an amendment to the plan for allocating regulatory
responsibility (``Plan'') filed on September 13, 2021, pursuant to Rule
17d-2 of the Act,\2\ by the Financial Industry Regulatory Authority,
Inc. (``FINRA'') and Investors' Exchange LLC (``IEX'') (collectively,
``Participating Organizations'' or ``parties''). This agreement amends
and restates the agreement entered into between FINRA and IEX on June
20, 2016, entitled ``Agreement between Financial Industry Regulatory
Authority, Inc. and Investors' Exchange LLC pursuant to Rule 17d-2
under the Securities Exchange Act of 1934,'' and any subsequent
amendments thereafter.
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    \1\ 15 U.S.C. 78q(d).
    \2\ 17 CFR 240.17d-2.
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I. Introduction

    Section 19(g)(1) of the Act,\3\ among other things, requires every
self-regulatory organization (``SRO'') registered as either a national
securities exchange or national securities association to examine for,
and enforce compliance by, its members and persons associated with its
members with the Act, the rules and regulations thereunder, and the
SRO's own rules, unless the SRO is relieved of this responsibility
pursuant to Section 17(d) \4\ or Section 19(g)(2) \5\ of the Act.
Without this relief, the statutory obligation of each individual SRO
could result in a pattern of multiple examinations of broker-dealers
that maintain memberships in more than one SRO (``common members'').
Such regulatory duplication would add unnecessary expenses for common
members and their SROs.
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    \3\ 15 U.S.C. 78s(g)(1).
    \4\ 15 U.S.C. 78q(d).
    \5\ 15 U.S.C. 78s(g)(2).
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    Section 17(d)(1) of the Act \6\ was intended, in part, to eliminate
unnecessary multiple examinations and regulatory duplication.\7\ With
respect to a common member, Section 17(d)(1) authorizes the Commission,
by rule or order, to relieve an SRO of the responsibility to receive
regulatory reports, to examine for and enforce compliance with
applicable statutes, rules, and regulations, or to perform other
specified regulatory functions.
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    \6\ 15 U.S.C. 78q(d)(1).
    \7\ See Securities Act Amendments of 1975, Report of the Senate
Committee on Banking, Housing, and Urban Affairs to Accompany S.
249, S. Rep. No. 94-75, 94th Cong., 1st Session 32 (1975).
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    To implement Section 17(d)(1), the Commission adopted two rules:
Rule 17d-1 and Rule 17d-2 under the Act.\8\ Rule 17d-1 authorizes the
Commission to name a single SRO as the designated examining authority
(``DEA'') to examine common members for compliance with the financial
responsibility requirements imposed by the Act, or by Commission or SRO
rules.\9\ When an SRO has been named as a common member's DEA, all
other SROs to which the common member belongs are relieved of the
responsibility to examine the firm for compliance with the applicable
financial responsibility rules. On its face, Rule 17d-1 deals only with
an SRO's obligations to enforce member compliance with financial
responsibility requirements. Rule 17d-1 does not relieve an SRO from
its obligation to examine a common member for compliance with its own
rules and provisions of the federal securities laws governing matters
other than financial responsibility, including sales practices and
trading activities and practices.
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    \8\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2, respectively.
    \9\ See Securities Exchange Act Release No. 12352 (April 20,
1976), 41 FR 18808 (May 7, 1976).
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    To address regulatory duplication in these and other areas, the
Commission adopted Rule 17d-2 under the Act.\10\ Rule 17d-2 permits
SROs to propose joint plans for the allocation of regulatory
responsibilities with respect

to their common members. Under paragraph (c) of Rule 17d-2, the
Commission may declare such a plan effective if, after providing for
appropriate notice and opportunity for comment, it determines that the
plan is necessary or appropriate in the public interest and for the
protection of investors, to foster cooperation and coordination among
the SROs, to remove impediments to, and foster the development of, a
national market system and a national clearance and settlement system,
and is in conformity with the factors set forth in Section 17(d) of the
Act. Commission approval of a plan filed pursuant to Rule 17d-2
relieves an SRO of those regulatory responsibilities allocated by the
plan to another SRO.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 12935 (October 28,
1976), 41 FR 49091 (November 8, 1976).
---------------------------------------------------------------------------

II. The Plan

    On July 28, 2016, the Commission declared effective the Plan
entered into between FINRA and IEX for allocating regulatory
responsibility pursuant to Rule 17d-2.\11\ The Plan is intended to
reduce regulatory duplication for firms that are common members of
FINRA and IEX by allocating regulatory responsibility with respect to
certain applicable laws, rules, and regulations that are common among
them. Included in the Plan is an exhibit that lists every IEX rule for
which FINRA bears responsibility under the Plan for overseeing and
enforcing with respect to IEX members that are also members of FINRA
and the associated persons therewith (``Certification'').
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 54136 (July 12,
2006), 81 FR 51256 (August 3, 2016).
---------------------------------------------------------------------------

III. Proposed Amendment to the Plan

    On September 13, 2021, the parties submitted a proposed amendment
to the Plan (``Amended Plan''). The primary purpose of the Amended Plan
is to clarify what is considered a Common Rule under the Plan, add
Securities Exchange Act Rules 604, 610(d), and 611 to the
Certification, eliminate the requirement that IEX provide to FINRA a
current list of members each quarter, and eliminate the requirement
that IEX and FINRA notify Dual Members of the Agreement after the
Effective Date by a uniform joint notice. The text of the proposed
Amended Plan is as follows (additions are italicized; deletions are
[bracketed]):
* * * * *

AGREEMENT BETWEEN FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. AND
INVESTORS' EXCHANGE LLC PURSUANT TO RULE 17d-2 UNDER THE SECURITIES
EXCHANGE ACT OF 1934

    This Agreement, by and between the Financial Industry Regulatory
Authority, Inc. (``FINRA'') and Investors' Exchange LLC (``IEX''),
is made this [20th]9th day of [June 20, 2016] September, 2021 (the
``Agreement''), pursuant to Section 17(d) of the Securities Exchange
Act of 1934 (the ``Exchange Act'') and Rule 17d-2 thereunder, which
permits agreements between self-regulatory organizations to allocate
regulatory responsibility to eliminate regulatory duplication. FINRA
and IEX may be referred to individually as a ``party'' and together
as the ``parties.''
    This Agreement amends and restates the agreement entered into
between FINRA and IEX on June 20, 2016, entitled ``Agreement between
Financial Industry Regulatory Authority, Inc. and Investors'
Exchange LLC pursuant to Rule 17d-2 under the Securities Exchange
Act of 1934,'' and any subsequent amendments thereafter.
    WHEREAS, FINRA and IEX desire to reduce duplication in the
examination and surveillance of their Dual Members (as defined
herein) and in the filing and processing of certain registration and
membership records; and
    WHEREAS, FINRA and IEX desire to execute an agreement covering
such subjects pursuant to the provisions of Rule 17d-2 under the
Exchange Act and to file such agreement with the Securities and
Exchange Commission (the ``SEC'' or ``Commission'') for its
approval.
    NOW, THEREFORE, in consideration of the mutual covenants
contained hereinafter, FINRA and IEX hereby agree as follows:
    1. Definitions. Unless otherwise defined in this Agreement or
the context otherwise requires, the terms used in this Agreement
shall have the same meaning as they have under the Exchange Act and
the rules and regulations thereunder. As used in this Agreement, the
following terms shall have the following meanings:
    (a) ``IEX Rules'' or ``FINRA Rules'' shall mean: (i) The rules
of IEX, or (ii) the rules of FINRA, respectively, as the rules of an
exchange or association are defined in Exchange Act Section
3(a)(27).
    (b) ``Common Rules'' shall mean IEX Rules that are substantially
similar to the applicable FINRA Rules and certain provisions of the
Exchange Act and SEC rules set forth on Exhibit 1 in that
examination or surveillance for compliance with such provisions and
rules would not require FINRA to develop one or more new examination
or surveillance standards, modules, procedures, or criteria in order
to analyze the application of the provision or rule, or a Dual
Member's activity, conduct, or output in relation to such provision
or rule; provided, however, Common Rules shall not include the
application of the SEC, IEX or FINRA rules as they pertain to
violations of insider trading activities, which is covered by a
separate 17d-2 Agreement by and among [BATS Exchange, Inc., BATS Y-
Exchange, Inc., Chicago Board Options Exchange, Inc., Chicago Stock
Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial
Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX
PHLX LLC, the NASDAQ Stock Market LLC, National Stock Exchange,
Inc., New York Stock Exchange LLC, NYSE Amex LLC, and NYSE Arca
Inc., effective December 16, 2011], Cboe BZX Exchange, Inc., Cboe
BYX Exchange, Inc., NYSE Chicago, Inc., Cboe EDGA Exchange, Inc.,
Cboe EDGX Exchange, Inc., Financial Industry Regulatory Authority,
Inc., MEMX, LLC, MIAX PEARL, LLC, Nasdaq BX, Inc., Nasdaq PHLX LLC,
The Nasdaq Stock Market LLC, NYSE National, Inc., New York Stock
Exchange LLC, NYSE American LLC, NYSE Arca, Inc., Investors Exchange
LLC and Long-Term Stock Exchange, Inc. approved by the Commission on
September 23, 2020 as may be amended from time to time. Common Rules
shall not include any provisions regarding: (i) Notice, reporting or
any other filings made directly to or from IEX; (ii) incorporation
by reference of other IEX Rules that are not Common Rules; (iii)
exercise of discretion in a manner that differs from FINRA's
exercise of discretion including, but not limited to exercise of
exemptive authority by IEX; (iv) prior written approval of IEX; and
(v) payment of fees or fines to IEX.
    (c) ``Dual Members'' shall mean those IEX members that are also
members of FINRA and the associated persons therewith.
    (d) ``Effective Date'' shall be the date this Agreement is
approved by the Commission.
    (e) ``Enforcement Responsibilities'' shall mean the conduct of
appropriate proceedings, in accordance with FINRA's Code of
Procedure (the Rule 9000 Series) and other applicable FINRA
procedural rules, to determine whether violations of Common Rules
have occurred, and if such violations are deemed to have occurred,
the imposition of appropriate sanctions as specified under FINRA's
Code of Procedure and sanctions guidelines.
    (f) ``Regulatory Responsibilities'' shall mean the examination
responsibilities, surveillance responsibilities and Enforcement
Responsibilities relating to compliance by the Dual Members with the
Common Rules and the provisions of the Exchange Act and the rules
and regulations thereunder, and other applicable laws, rules and
regulations, each as set forth on Exhibit 1 attached hereto.
    2. Regulatory and Enforcement Responsibilities. FINRA shall
assume Regulatory Responsibilities and Enforcement Responsibilities
for Dual Members. Attached as Exhibit 1 to this Agreement and made
part hereof, IEX furnished FINRA with a current list of Common Rules
and certified to FINRA that such rules that are IEX Rules are
substantially similar to the corresponding FINRA Rules (the
``Certification''). FINRA hereby agrees that the rules listed in the
Certification are Common Rules as defined in this Agreement. Each
year following the Effective Date of this Agreement, or more
frequently if required by changes in either the rules of IEX or
FINRA, IEX shall submit an updated list of Common Rules to FINRA for
review which shall add IEX Rules not included in the current list of
Common Rules

that qualify as Common Rules as defined in this Agreement; delete
IEX Rules included in the current list of Common Rules that no
longer qualify as Common Rules as defined in this Agreement; and
confirm that the remaining rules on the current list of Common Rules
continue to be IEX Rules that qualify as Common Rules as defined in
this Agreement. Within 30 days of receipt of such updated list,
FINRA shall confirm in writing whether the rules listed in any
updated list are Common Rules as defined in this Agreement.
Notwithstanding anything herein to the contrary, it is explicitly
understood that the term ``Regulatory Responsibilities'' does not
include, and IEX shall retain full responsibility for (unless
otherwise addressed by separate agreement or rule) (collectively,
the ``Retained Responsibilities'') the following:
    (a) Surveillance, examination, investigation and enforcement
with respect to trading activities or practices involving IEX's own
marketplace for rules that are not Common Rules;
    (b) registration pursuant to its applicable rules of associated
persons (i.e., registration rules that are not Common Rules);
    (c) discharge of its duties and obligations as a Designated
Examining Authority pursuant to Rule 17d-1 under the Exchange Act;
and
    (d) any IEX Rules that are not Common Rules, except for IEX
Rules for IEX Services LLC as provided in paragraph [6]5.
    [3. Dual Members. Prior to the Effective Date, IEX shall furnish
FINRA with a current list of Dual Members, which shall be updated no
less frequently than once each quarter.]
    [4]3. No Charge. There shall be no charge to IEX by FINRA for
performing the Regulatory Responsibilities and Enforcement
Responsibilities under this Agreement except as otherwise agreed by
the parties, either herein or in a separate agreement.
    [5]4. Applicability of Certain Laws, Rules, Regulations or
Orders. Notwithstanding any provision hereof, this Agreement shall
be subject to any statute, or any rule or order of the Commission.
To the extent such statute, rule or order is inconsistent with this
Agreement, the statute, rule or order shall supersede the
provision(s) hereof to the extent necessary for them to be properly
effectuated and the provision(s) hereof in that respect shall be
null and void.
    [6]5. Notification of Violations.
    (a) In the event that FINRA becomes aware of apparent violations
of any IEX Rules, which are not listed as Common Rules, discovered
pursuant to the performance of the Regulatory Responsibilities
assumed hereunder, FINRA shall notify IEX of those apparent
violations for such response as IEX deems appropriate.
    (b) In the event that IEX becomes aware of apparent violations
of any Common Rules, discovered pursuant to the performance of the
Retained Responsibilities, IEX shall notify FINRA of those apparent
violations and such matters shall be handled by FINRA as provided in
this Agreement. With respect to apparent violations of IEX Services
LLC FINRA shall not make referrals to IEX pursuant to this paragraph
[6]5. Such apparent violations shall be processed by, and
enforcement proceedings in respect thereto will be conducted by,
FINRA as provided in this Agreement.
    (c) Apparent violations of Common Rules shall be processed by,
and enforcement proceedings in respect thereto shall be conducted by
FINRA as provided hereinbefore; provided, however, that in the event
a Dual Member is the subject of an investigation relating to a
transaction on IEX, IEX may in its discretion assume concurrent
jurisdiction and responsibility.
    (d) Each party agrees to make available promptly all files,
records and witnesses necessary to assist the other in its
investigation or proceedings.
    [7]6. Continued Assistance.
    (a) FINRA shall make available to IEX all information obtained
by FINRA in the performance by it of the Regulatory Responsibilities
hereunder with respect to the Dual Members subject to this
Agreement. In particular, and not in limitation of the foregoing,
FINRA shall furnish IEX any information it obtains about Dual
Members which reflects adversely on their financial condition. IEX
shall make available to FINRA any information coming to its
attention that reflects adversely on the financial condition of Dual
Members or indicates possible violations of applicable laws, rules
or regulations by such firms.
    (b) The parties agree that documents or information shared shall
be held in confidence, and used only for the purposes of carrying
out their respective regulatory obligations. Neither party shall
assert regulatory or other privileges as against the other with
respect to documents or information that is required to be shared
pursuant to this Agreement.
    (c) The sharing of documents or information between the parties
pursuant to this Agreement shall not be deemed a waiver as against
third parties of regulatory or other privileges relating to the
discovery of documents or information.
    [8]7. Statutory Disqualifications. When FINRA becomes aware of a
statutory disqualification as defined in the Exchange Act with
respect to a Dual Member, FINRA shall determine pursuant to Sections
15A(g) and/or Section 6(c) of the Exchange Act the acceptability or
continued applicability of the person to whom such disqualification
applies and keep IEX advised of its actions in this regard for such
subsequent proceedings as IEX may initiate.
    [9]8. Customer Complaints. IEX shall forward to FINRA copies of
all customer complaints involving Dual Members received by IEX
relating to FINRA's Regulatory Responsibilities under this
Agreement. It shall be FINRA's responsibility to review and take
appropriate action in respect to such complaints.
    [10]9. Advertising. FINRA shall assume responsibility to review
the advertising of Dual Members subject to the Agreement, provided
that such material is filed with FINRA in accordance with FINRA's
filing procedures and is accompanied with any applicable filing fees
set forth in FINRA Rules.
    [11]10. No Restrictions on Regulatory Action. Nothing contained
in this Agreement shall restrict or in any way encumber the right of
either party to conduct its own independent or concurrent
investigation, examination or enforcement proceeding of or against
Dual Members, as either party, in its sole discretion, shall deem
appropriate or necessary.
    [12]11. Termination. This Agreement may be terminated by IEX or
FINRA at any time upon the approval of the Commission after one (1)
year's written notice to the other party.
    [13]12. Arbitration. In the event of a dispute between the
parties as to the operation of this Agreement, IEX and FINRA hereby
agree that any such dispute shall be settled by arbitration in
Washington, DC in accordance with the rules of the American
Arbitration Association then in effect, or such other procedures as
the parties may mutually agree upon. Judgment on the award rendered
by the arbitrator(s) may be entered in any court having
jurisdiction. Each party acknowledges that the timely and complete
performance of its obligations pursuant to this Agreement is
critical to the business and operations of the other party. In the
event of a dispute between the parties, the parties shall continue
to perform their respective obligations under this Agreement in good
faith during the resolution of such dispute unless and until this
Agreement is terminated in accordance with its provisions. Nothing
in this Section [13]12 shall interfere with a party's right to
terminate this Agreement as set forth herein.
    [14. Notification of Members. IEX and FINRA shall notify Dual
Members of this Agreement after the Effective Date by means of a
uniform joint notice.]
    [15]13. Amendment. This Agreement may be amended in writing duly
approved by each party. All such amendments must be filed with and
approved by the Commission before they become effective.
    [16]14. Limitation of Liability. Neither FINRA nor IEX nor any
of their respective directors, governors, officers or employees
shall be liable to the other party to this Agreement for any
liability, loss or damage resulting from or claimed to have resulted
from any delays, inaccuracies, errors or omissions with respect to
the provision of Regulatory Responsibilities as provided hereby or
for the failure to provide any such responsibility, except with
respect to such liability, loss or damages as shall have been
suffered by one or the other of FINRA or IEX and caused by the
willful misconduct of the other party or their respective directors,
governors, officers or employees. No warranties, express or implied,
are made by FINRA or IEX with respect to any of the responsibilities
to be performed by each of them hereunder.
    [17]15. Relief from Responsibility. Pursuant to Sections
17(d)(1)(A) and 19(g) of the Exchange Act and Rule 17d-2 thereunder,
FINRA and IEX join in requesting the Commission, upon its approval
of this Agreement or any part thereof, to relieve IEX of any and all
responsibilities with respect to matters allocated to FINRA pursuant
to this Agreement; provided, however, that this Agreement shall not
be effective until the Effective Date.

    [18]16. Severability. Any term or provision of this Agreement
that is invalid or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement or affecting the
validity or enforceability of any of the terms or provisions of this
Agreement in any other jurisdiction.
    [19]17. Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, and
such counterparts together shall constitute one and the same
instrument.
    Note: The entire existing table of rules should be deleted and
replaced with the table below and for the remainder of the exhibit
new text is italicized and deleted text is in brackets.

EXHIBIT 1

IEX CERTIFICATION OF COMMON RULES

    IEX hereby certifies that the requirements contained in the
rules listed below for IEX are identical to, or substantially
similar to, the comparable FINRA [(NASD)] Rules, Exchange Act
provision or SEC rule identified (``Common Rules'').
    # Common Rules shall not include provisions regarding (i)
notice, reporting or any other filings made directly to or from IEX,
(ii) incorporations by reference of other IEX Rules that are not
Common Rules (iii) exercise of discretion in a manner that differs
from FINRA's exercise of discretion including, but not limited to
exercise of exemptive authority, by IEX, (iv) prior written approval
of IEX, and (v) payment of fees or fines to IEX.

------------------------------------------------------------------------
                                             FINRA rule, exchange act
                IEX rule                       provision, SEC rule
------------------------------------------------------------------------
Rule 2.140 Prohibited Conditions         FINRA Rule 2081 Prohibited
 Relating to Expungement of Customer      Conditions Relating to
 Dispute.                                 Expungement of Customer
                                          Dispute.
Rule 2.160(o) Lapse of Registration and  FINRA Rule 1210.08--
 Expiration of SIE.                       Registration Requirements--
                                          Lapse of Registration and
                                          Expiration of SIE.
Rule 2.160(p) Restrictions on            FINRA Rule 1240(a)(1)-(4), (6)-
 Membership--Continuing Education         (7) and (b) Continuing
 Requirements .                          Education Requirements.
Rule 2.160(q) and (r) Registration       FINRA By-Laws of the
 Requirements and Restrictions on         Corporation Article IV, Sec
 Membership, and Rule 2.170(b) and (g)    1(c) Application for
 Application Procedures for Membership    Membership, Article V,
 or to become an Associated Person of a   Sections 2 and 3 Application
 Member .                                for Registration and
                                          Notification by Member to the
                                          Corporation and Associated
                                          Person of Termination;
                                          Amendments to Notification,
                                          FINRA Rule 1010(c) and (e)
                                          Electronic Filing Requirements
                                          for Uniform Forms and FINRA
                                          Rule 4517 Members Filing and
                                          Contact Information
                                          Requirements.
Rule 2.240 Fidelity Bonds ............  FINRA Rule 4360 Fidelity Bonds.
Rule 3.110 Business Conduct of Members   FINRA Rule 2010 Standards of
 caret.                                   Commercial Honor and
                                          Principles of Trade. caret
Rule 3.120 Violations Prohibited1 caret  FINRA Rule 2010 Standards of
 .                                       Commercial Honor and
                                          Principles of Trade caret and
                                          FINRA Rule 3110 Supervision.
Rule 3.130 Use of Fraudulent Devices     FINRA Rule 2020 Use of
 caret.                                   Manipulative, Deceptive or
                                          Other Fraudulent Devices.
                                          caret
Rule 3.150 Know Your Customer..........  FINRA Rule 2090 Know Your
                                          Customer.
Rule 3.160 Fair Dealing with Customers.  FINRA Rule 2020 Use of
                                          Manipulative, Deceptive or
                                          Other Fraudulent Devices.
                                          caret
Rule 3.170 Suitability.................  FINRA Rule 2111 Suitability.
Rule 3.180(a) The Prompt Receipt and     FINRA Rule 11860 COD Orders.
 Delivery of Securities.
Rule 3.180(b) The Prompt Receipt and     SEA Regulation SHO.
 Delivery of Securities.
Rule 3.190 Charges for Services          FINRA Rule 2122 Charges for
 Performed.                               Services Performed.
Rule 3.200 Use of Information Obtained   FINRA Rule 2060 Use of
 in a Fiduciary Capacity.                 Information Obtained in
                                          Fiduciary Capacity.
Rule 3.210 Publication of Transactions   FINRA Rule 5210 Publication of
 and Quotations.                          Transactions and Quotations.
Rule 3.220 Offers at Stated Prices.....  FINRA Rule 5220 Offers at
                                          Stated Prices.
Rule 3.230 Payments Involving            FINRA Rule 5230 Payments
 Publications that Influence the Market   Involving Publications that
 Price of a Security.                     Influence the Market Price of
                                          a Security.
Rule 3.240 Customer Confirmations......  FINRA Rule 2232(a) Customer
                                          Confirmations and SEA Rule 10b-
                                          10 Confirmation of
                                          Transactions.
Rule 3.250 Disclosure of Control         FINRA Rule 2262 Disclosure of
 Relationship with Issuer.                Control Relationship with
                                          Issuer.
Rule 3.260 Discretionary Accounts......  FINRA Rule 3260 Discretionary
                                          Accounts.
Rule 3.270 Improper Use of Customers'    FINRA Rule 2150(a)-(c) and SM
 Securities or Funds; Prohibition         .03 Improper Use of Customers'
 Against Guarantees and Sharing in        Securities or Funds;
 Accounts.                                Prohibition Against Guarantees
                                          and Sharing in Accounts.
Rule 3.280 Communications with the       FINRA Rule 2210 Communications
 Public.                                  with the Public.
                                         FINRA Rule 2265 Extended Hours
                                          Trading Risk Disclosure.
Rule 3.291 Influencing or Rewarding      FINRA Rule 3220 Influencing or
 Employees of Others; Gratuities.         Rewarding Employees of Others.
Rule 3.292 Telemarketing...............  FINRA Rule 3230 Telemarketing.
Rule 3.293 Short-Interest Reporting....  FINRA Rule 4560 Short-Interest
                                          Reporting.
Rule 4.511 General Requirements........  FINRA Rule 4511 General
                                          Requirements.
Rule 4.512 Customer Account Information  FINRA Rule 4512 Customer
                                          Account Information.
Rule 4.513 Record of Written Customer    FINRA Rule 4513 Record of
 Complaints.                              Written Customer Complaints.
Rule 4.550 Disclosure of Financial       FINRA Rule 2261 Disclosure of
 Condition.                               Financial Condition.
Rule 5.110 Supervision ...............  FINRA Rule 3110 Supervision.
Rule 5.120 Supervisory Control System   FINRA Rule 3120 Supervisory
                                          Control System.
Rule 5.130 Annual Certification of       FINRA Rule 3130 Annual
 Compliance and Supervisory Processes .  Certification of Compliance
                                          and Supervisory Processes.
Rule 5.160 Anti-Money Laundering         FINRA Rule 3310 Anti-Money
 Compliance Program .                    Laundering Compliance Program.
Rule 5.170 Transactions for or by        FINRA Rule 3210 Accounts At
 Associated Persons.                      Other Broker-Dealers and
                                          Financial Institutions.
Rule 6.120 Failure to Deliver and        Regulation SHO Rules 200 and
 Failure to Receive.                      203.
Rule 6.130(a), (b), (d)-(i) Forwarding   FINRA Rule 2251 Processing and
 of Proxy and Other Issuer-Related        Forwarding of Proxy and Other
 Materials; Proxy Voting.                 Issuer-Related Materials.
Rule 10.110(a) Market Manipulation.....  FINRA Rule 6140 Other Trading
                                          Practices.

Rule 10.110(b) Market Manipulation.....  FINRA Rule 5210 Publication of
                                          Transactions and Quotations,
                                          FINRA Rule 2020 Use of
                                          Manipulative, Deceptive or
                                          Other Fraudulent Devices,
                                          FINRA Rule 2010 Standards of
                                          Commercial Honor and
                                          Principles of Trade, and FINRA
                                          Rule 6140(a) Other Trading
                                          Practices.
Rule 10.120 Fictitious Transactions....  FINRA Rule 6140 Other Trading
                                          Practices and FINRA Rule 5210
                                          Supplementary Material .02
                                          Self-Trades.
Rule 10.130 Excessive Sales By A Member  FINRA Rule 6140(c) Other
                                          Trading Practices.
Rule 10.140 Manipulative Transactions..  FINRA Rule 6140 Other Trading
                                          Practices.
Rule 10.150 Dissemination of False       FINRA Rule 6140(e) Other
 Information.                             Trading Practices.
Rule 10.160 Prohibition Against Trading  FINRA Rule 5320 Prohibition
 Ahead of Customer Orders  **.           Against Trading Ahead of
                                          Customer Orders. **
Rule 10.180 Influencing the              FINRA Rule 6140(a) Other
 Consolidated Tape.                       Trading Practices and FINRA
                                          Rule 5210 Publication of
                                          Transactions and Quotations.
Rule 10.190 Trade Shredding............  FINRA Rule 5290 Order Entry and
                                          Execution Practices.
Rule 10.220 Best Execution and           FINRA Rule 5310 Best Execution
 Interpositioning **.                     and Interpositioning. **
Rule 10.240 Trading Ahead of Research    FINRA Rule 5280 Trading Ahead
 Reports **.                              of Research Reports. **
Rule 10.260 Front Running of Block       FINRA Rule 5270 Front Running
 Transactions **.                         of Block Transactions. **
Rule 11.151(e) Market Maker              FINRA Rule 6240(a)-(c), (d)(1)
 Obligations..                            and (2) Prohibition from
                                          Locking or Crossing Quotations
                                          in NMS Stocks
Rule 11.280(e)(3) & (4) Trading Halts    FINRA Rule 6190(a)&(b)
 Due to Extraordinary Market Volatility.  Compliance with Regulation NMS
                                          Plan to Address Extraordinary
                                          Market Volatility.
Rule 11.310 Locking or Crossing          FINRA Rule 6240(a),-(c), (d)(1)
 Quotations in NMS Stocks **.             and (2) Prohibition from
                                          Locking or Crossing Quotations
                                          in NMS Stocks. **
Rule 11.420(c) Order Audit Trail System  FINRA Rule 4590 Synchronization
 Requirements.                            of Member Business Clocks.
Rule 11.420(d)--Order Audit Trail        FINRA Rule 7440--Recording of
 System Requirements--Recording of        Order Information.
 Order Information.
Rule 11.420(e)--Order Audit Trail        FINRA Rule 7450--Order Data
 System Requirements--Order Data          Transmission.
 Transmission Requirements.
Rule 12.110(c) Arbitration.............  FINRA Rule 2268 Requirements
                                          When Using Predispute
                                          Arbitration Agreements for
                                          Customer Accounts.
------------------------------------------------------------------------
\1\ FINRA shall only have Regulatory Responsibilities for Rule 3.120(a)
  regarding conduct in violation of the Act, or the rules or regulations
  thereunder.
In addition, the following provisions shall be part of this 17d-2
  Agreement:
Securities Exchange Act of 1934 (``SEA''):
Section 15(g)
SEA Rules:
 SEA Rule 200 of Regulation SHO--Definition of Short Sales and
  Marking Requirements**
 SEA Rule 201 of Regulation SHO--Circuit Breaker**
 SEA Rule 203 of Regulation SHO--Borrowing and Delivery
  Requirements**
 SEA Rule 204 of Regulation SHO--Close-Out Requirement**
 SEA Rule 101 of Regulation M--Activities by Distribution
  Participants**
 SEA Rule 102 of Regulation M--Activities by Issuers and Selling
  Security Holders During a Distribution**
 SEA Rule 103 of Regulation M--Nasdaq Passive Market Making**
 SEA Rule 104 of Regulation M--Stabilizing and Other Activities
  in Connection with an Offering**
 SEA Rule 105 of Regulation M--Short Selling in Connection With
  a Public Offering**
 SEA Rule 604 of Regulation NMS--Display of Customer Limit
  Orders**
 SEA Rule 610(d) of Regulation NMS--Locking or Crossing
  Quotations**
 SEA Rule 611 of Regulation NMS--Order Protection Rule**
 SEA Rule 10b-5 Employment of Manipulative and Deceptive Devices
  caret
 SEA Rule 17a-3/17a-4--Records to Be Made by Certain Exchange
  Members, Brokers, and Dealers/Records to Be Preserved by Certain
  Exchange Members, Brokers, and Dealers caret
[ FINRA shall not have Regulatory Responsibilities regarding
  notification or reporting to IEX.]
caret FINRA shall not have any Regulatory Responsibilities for these
  rules as they pertain to violations of insider trading activities,
  which is covered by a separate 17d-2 Agreement by and among [BATS
  Exchange, Inc., BATS-Y Exchange, Inc., Chicago Board Options Exchange,
  Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange Inc., EDGX
  Exchange Inc., Financial Industry Regulatory Authority, Inc., NASDAQ
  OMX BX, Inc., NASDAQ OMX PHLX LLC, The NASDAQ Stock Market LLC,
  National Stock Exchange, Inc., New York Stock Exchange, LLC, NYSE Amex
  LLC, and NYSE Arca Inc. effective December 16, 2011] Cboe BZX
  Exchange, Inc., Cboe BYX Exchange, Inc., NYSE Chicago, Inc., Cboe EDGA
  Exchange Inc., Cboe EDGX Exchange Inc., Financial Industry Regulatory
  Authority, Inc., MEMX, LLC, MIAX PEARL, LLC, Nasdaq BX, Inc., Nasdaq
  PHLX LLC, The Nasdaq Stock Market LLC, NYSE National, Inc., New York
  Stock Exchange, LLC, NYSE American LLC, NYSE Arca Inc., and Investors'
  Exchange LLC and the Long-Term Stock Exchange, Inc. as approved by the
  SEC on September 23, 2020, as may be amended from time to time.
** FINRA shall perform the surveillance responsibilities for the double
  star rules. These rules may be cited by FINRA in both the context of
  this Agreement and the Regulatory Services Agreement.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. 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 protected]. Please include
File Number 4-700 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 4-700. 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 plan that are filed with the Commission, and
all written communications relating to the proposed plan 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 plan also will be available for inspection and copying at the
principal offices of FINRA and IEX. 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 4-700
and should be submitted on or before November 10, 2021.

V. Discussion

    The Commission finds that the proposed Amended Plan is consistent
with the factors set forth in Section 17(d) of the Act \12\ and Rule
17d-2(c) thereunder \13\ in that the proposed Amended Plan is necessary
or appropriate in the public interest and for the protection of
investors, fosters cooperation and coordination among SROs, and removes
impediments to and fosters the development of the national market
system. In particular, the Commission believes that the proposed
Amended Plan should reduce unnecessary regulatory duplication by
allocating to FINRA certain examination and enforcement
responsibilities for Dual Members that would otherwise be performed by
FINRA and IEX. Accordingly, the proposed Amended Plan promotes
efficiency by reducing costs to Dual Members. Furthermore, because IEX
and FINRA will coordinate their regulatory functions in accordance with
the Amended Plan, the Amended Plan should promote investor protection.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q(d).
    \13\ 17 CFR 240.17d-2(c).
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    The Commission notes that, under the Amended Plan, IEX and FINRA
have allocated regulatory responsibility for those IEX rules, set forth
in the Certification, that are substantially similar to the applicable
FINRA rules in that examination for compliance with such provisions and
rules would not require FINRA to develop one or more new examination
standards, modules, procedures, or criteria in order to analyze the
application of the rule, or a Dual Member's activity, conduct, or
output in relation to such rule. In addition, under the Amended Plan,
FINRA would assume regulatory responsibility for certain provisions of
the federal securities laws and the rules and regulations thereunder
that are set forth in the Certification. The Common Rules covered by
the Amended Plan are specifically listed in the Certification, as may
be amended by the Parties from time to time.
    According to the Amended Plan, IEX will review the Certification at
least annually, or more frequently if required by changes in either the
rules of IEX or FINRA, and, if necessary, submit to FINRA an updated
list of Common Rules to add IEX rules not included on the then-current
list of Common Rules that are substantially similar to FINRA rules;
delete IEX rules included in the then-current list of Common Rules that
no longer qualify as common rules; and confirm that the remaining rules
on the list of Common Rules continue to be IEX rules that qualify as
common rules.\14\ FINRA will then confirm in writing whether the rules
listed in any updated list are Common Rules as defined in the Amended
Plan. The Commission believes that these provisions are designed to
provide for continuing communication between the Parties to ensure the
continued accuracy of the scope of the proposed allocation of
regulatory responsibility.
---------------------------------------------------------------------------

    \14\ See paragraph 2 of the Amended Plan.
---------------------------------------------------------------------------

    The Commission is hereby declaring effective an Amended Plan that,
among other things, allocates regulatory responsibility to FINRA for
the oversight and enforcement of all IEX rules that are substantially
similar to the rules of FINRA for Dual Members of IEX and FINRA.
Therefore, modifications to the Certification need not be filed with
the Commission as an amendment to the Amended Plan, provided that the
Parties are only adding to, deleting from, or confirming changes to IEX
rules in the Certification in conformance with the definition of Common
Rules provided in the Amended Plan. However, should the Parties decide
to add an IEX rule to the Certification that is not substantially
similar to a FINRA rule; delete an IEX rule from the Certification that
is substantially similar to a FINRA rule; or leave on the Certification
an IEX rule that is no longer substantially similar to a FINRA rule,
then such a change would constitute an amendment to the Amended Plan,
which must be filed with the Commission pursuant to Rule 17d-2 under
the Act.\15\
---------------------------------------------------------------------------

    \15\ The addition to or deletion from the Certification of any
federal securities laws, rules, and regulations for which FINRA
would bear responsibility under the Amended Plan for examining, and
enforcing compliance by, Dual Members, also would constitute an
amendment to the Amended Plan.
---------------------------------------------------------------------------

    Under paragraph (c) of Rule 17d-2, the Commission may, after
appropriate notice and comment, declare a plan, or any part of a plan,
effective. In this instance, the Commission believes that appropriate
notice and comment can take place after the proposed amendment is
effective. The primary purpose of the Amended Plan to clarify what is
considered a Common Rule under the Plan, add Securities Exchange Act
Rules 604, 610(d), and 611 to the Certification, eliminate the
requirement that IEX provide FINRA a current list of members each
quarter, and eliminate the requirements that IEX and FINRA notify Dual
Members of the Agreement after the Effective Date by a uniform joint
notice. The Commission notes that the prior version of this plan
immediately prior to this proposed amendment was published for comment
and the Commission did not receive any comments thereon.\16\
Furthermore, the Commission does not believe that the amendment to the
plan raises any new regulatory issues that the Commission has not
previously considered. The Commission notes that FINRA has access to
real-time information regarding Exchange membership via its Central
Registration Depository.
---------------------------------------------------------------------------

    \16\ See supra note 11 (citing to Securities Exchange Act
Release No. 78434).
---------------------------------------------------------------------------

VI. Conclusion

    This order gives effect to the Amended Plan filed with the
Commission in File No. 4-700. The Parties shall notify all members
affected by the Amended Plan of their rights and obligations under the
Amended Plan.
    It is therefore ordered, pursuant to Section 17(d) of the Act, that
the Amended Plan in File No. 4-700, between the FINRA and IEX, filed
pursuant to Rule 17d-2 under the Act, hereby is approved and declared
effective.
    It is further ordered that IEX is relieved of those
responsibilities allocated to FINRA under the Amended Plan in File No.
4-700.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(34).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-22810 Filed 10-19-21; 8:45 am]
BILLING CODE 8011-01-P


Placeholder for CONFIDENTIAL supplementary information received by EPA from Robert M. Sussman of Latham and Watkins, LLC, council for Amphastar Pharmaceuticals Inc., and Armstrong Pharmaceuticals, Inc. on February 22, 2007.

Confidential information is located at EPA headquarters 1310 L St NW.


[Federal Register Volume 80, Number 4 (Wednesday, January 7, 2015)]
[Notices]
[Pages 886-887]
[FR Doc No: 2015-00074]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OA-2015-0001; FRL 9921-42-OA]

Farm, Ranch, and Rural Communities Committee (FRRCC); Notice of
Meeting

AGENCY: Environmental Protection Agency.

ACTION: Notice of Meeting.

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SUMMARY: Under the Federal Advisory Committee Act, Public Law 92-463,
the Environmental Protection Agency (EPA) hereby provides notice of a
meeting of the Farm, Ranch, and Rural Communities Committee (FRRCC).
This meeting is open to the public. Members of the public are
encouraged to provide comments relevant to the specific issues being
considered by the FRRCC. For additional information about registering
for public comment, please refer to the SUPPLEMENTARY INFORMATION
section. Due to limited space, seating at the FRRCC meeting will be
limited to a first-come, first-served basis.

DATES: The Farm, Ranch, and Rural Communities Committee will convene on
Wednesday, January 21, 2015, from 9 a.m. until 5 p.m. and will
reconvene Thursday, January 22, 2015, from 9 a.m. until 3 p.m. (Eastern
Standard Time).
    One public comment period relevant to specific issues being
considered by the FRRCC is scheduled for Thursday, January 22, 2015,
from 2:30 p.m. to 3 p.m. (Eastern Standard Time). Members of the public
who wish to participate during the public comment period are encouraged
to pre-register by noon, (Eastern Standard Time), on Monday, January
12, 2015.

ADDRESSES: The meeting will be held at the EPA Potomac Yard Conference
Center located at One Potomac Yard (South Tower Building) on the 1st
Floor.

The street address is 2777 South Crystal Drive, Arlington, Virginia
22202. The meeting is open to the public with limited seating on a
first-come, first-served basis.

FOR FURTHER INFORMATION CONTACT: Questions or correspondence concerning
this meeting should be directed to Sheritta W. Taylor, Designated
Federal Officer, US EPA, Office of the Administrator (MC1101A), 1200
Pennsylvania Avenue NW., Washington, DC 20460; via email at
<EMAIL_ADDRESS>or via telephone at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FRRCC is a policy-oriented committee
that provides policy advice, information, and recommendations to the
EPA Administrator on a range of environmental issues and policies that
are of importance to agriculture and rural communities.
    The purpose of this meeting is to advance discussion of specific
topics of unique relevance to agriculture such as exploring best
practices to maintain soil health, the impact of soil health as it
relates to air and water quality and the relationship between soil
health and extreme weather events across the country, in such a way as
to provide thoughtful advice and useful insights to the Agency as it
crafts environmental policies and programs that affect and engage
agriculture and rural communities. A copy of the meeting agenda will be
posted at http://www.epa.gov/ocem/frrcc.
    Public Comment: Individuals or groups making oral presentations
during the public comment period will be limited to a total
presentation time of five minutes. To accommodate large groups
addressing the FRRCC, only one representative of an organization or
group will be allowed to speak during the designated public comment
period. Written comments received by noon, (Eastern Standard Time),
January 12, 2015, will be included in the materials distributed to
members of the FRRCC. Written comments received after that date and
time will be provided to the FRRCC as time allows. Requests to make
brief oral comments or provide written statements to the FRRCC should
be sent to Sheritta W. Taylor, Designated Federal Officer, at the
contact information above.
    Meeting Access: For information on access or services for
individuals with disabilities, please contact Sheritta W. Taylor at
202-564-1771 or<EMAIL_ADDRESS>To request special
accommodations, please contact Sheritta W. Taylor, preferably at least
four working days prior to the meeting, to allow EPA sufficient time to
process your request.

    Dated: January 2, 2015.
Sheritta W. Taylor,
Acting Designated Federal Officer.
[FR Doc. 2015-00074 Filed 1-6-15; 8:45 am]
BILLING CODE 6560-50-P