14622 Federal Register / Vol. 68, No. 58 / Wednesday, March 26, 2003 / Notices at the point of drinking water abstraction. 2. Non dietary exposure. Food uses described in these petitions are strictly agricultural and will not add to any residential non dietary exposure that may exist.

D. Cumulative Effects Section 408( b)( 2)( D)( v) requires that the Agency must consider `` available information'' concerning the cumulative effects of a particular pesticide's residue and `` other substances that have a common mechanism of toxicity.'' Available information in this context include not only toxicity, chemistry, and exposure data, but also scientific policies and methodologies for understanding common mechanisms of toxicity and conducting cumulative risk assessments. For most pesticides, although the Agency has some information in its files that may turn out to be helpful in eventually determining whether a pesticide shares a common mechanism of toxicity with any other substances, EPA does not at this time have the methodologies to resolve the complex scientific issues concerning common mechanism of toxicity in a meaningful way. At the present time, there are insufficient data available to allow Nichino America, Inc. to properly evaluate the potential for cumulative effects with other pesticides to which an individual may be exposed. For the purposes of this assessment, therefore, Nichino America, Inc. has assumed that buprofezin does not have a common mechanism of toxicity with any other registered pesticides. Therefore, only exposure from buprofezin is being addressed at this time.

E. Safety Determination 1. U. S. population   i. Acute risk. To estimate acute aggregate exposure risk, the Agency combined the high end value from food and water and compared it to the acute population adjusted dose ( aPAD). Using the exposure assumptions discussed in this unit for acute exposure, the acute dietary exposure from food to buprofezin will occupy 4% of the aPAD for females 13 years and older ( no endpoint was identified for the general population including infants and children). In addition, there is potential for acute dietary exposure to buprofezin in drinking water. After calculating drinking water levels of concern ( DWLOCs) and comparing them to the estimated environmental concentrations ( EECs) for surface water and ground water, EPA does not expect the aggregate exposure to exceed 100% of the aPAD. ii. Chronic risk. Based on the toxicology data base and available information on anticipated residues, chronic dietary exposure to the U. S. population ( total) was 37% of the RfD. Exposure to potential residues in drinking water is expected to be negligible, as DWLOCs are substantially higher than modeled acute and longterm EECs. The margin of exposure ( MOE) from the limited potential for short term exposure from residential uses was > 1,000. Based on these assessments, it can be concluded that there is reasonable certainty of no harm to the U. S. population or any population subgroup from exposure to buprofezin. iii. Aggregate cancer risk for the U. S. population. In accordance with EPA Guidelines for Carcinogen Risk Assessment ( proposed July 1999), the Agency's Cancer Assessment Review Committee has classified buprofezin as having suggestive evidence of carcinogenicity, but not sufficient to assess human carcinogenic potential, and further recommended that no quantification of cancer risk is required. 2. Infants and children. The chronic dietary exposure was 29% of the RfD for infants and 72% of the RfD for children ages 1 to 6. Exposure to potential residues in drinking water is expected to be negligible, as DWLOCs are substantially higher than modeled acute and long term EECs. The MOE from the limited potential for short term exposure from residential uses was > 1,000. Based on these assessments, it can be concluded that there is reasonable certainty of no harm to infants and children from exposure to buprofezin. Based on these risk assessments, EPA concludes that there is a reasonable certainty that no harm will result to the general population and to infants and children from aggregate exposure to buprofezin residues.

F. International Tolerances Permanent CODEX maximum residue levels have been established for residues of buprofezin in cucumbers at 1.0 ppm, tomatoes at 1.0 ppm, and citrus at 0.5 ppm.

[ FR Doc. 03   6948 Filed 3   25   03; 8: 45 am]

BILLING CODE 6560   50   S ENVIRONMENTAL PROTECTION AGENCY [ OPP   2003   0106; FRL   7299   3]

Azoxystrobin; Notice of Filing a Pesticide Petition to Establish a Tolerance for a Certain Pesticide Chemical in or on Food AGENCY: Environmental Protection Agency ( EPA). ACTION: Notice.

SUMMARY: This notice announces the initial filing of a pesticide petition proposing the establishment of regulations for residues of a certain pesticide chemical in or on various food commodities. DATES: Comments, identified by docket ID number OPP   2003   0106, must be received on or before April 25, 2003. ADDRESSES: Comments may be submitted electronically, by mail, or through hand delivery/ courier. Follow the detailed instructions as provided in Unit I. of the SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT: Shaja R. Brothers, Registration Division ( 7505C), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460   0001; telephone number: ( 703) 308 3194; e mail address: brothers. shaja@ epa. gov.

SUPPLEMENTARY INFORMATION:

I. General Information A. Does this Action Apply to Me?

You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. Potentially affected entities may include, but are not limited to:   Crop production ( NAICS 111)   Animal production ( NAICS 112)   Food manufacturing ( NAICS 311)   Pesticide manufacturing ( NAICS 32532) This listing is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this action. Other types of entities not listed in this unit could also be affected. The North American Industrial Classification System ( NAICS) codes have been provided to assist you and others in determining whether this action might apply to certain entities. If you have any questions regarding the applicability of this action to a particular entity, consult the person listed under FOR FURTHER INFORMATION CONTACT.

VerDate Jan< 31> 2003 19: 38 Mar 25, 2003 Jkt 200001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 26MRN1. SGM 26MRN1 14623 Federal Register / Vol. 68, No. 58 / Wednesday, March 26, 2003 / Notices B. How Can I Get Copies of this Document and Other Related Information?

1. Docket. EPA has established an official public docket for this action under docket identification ( ID) number OPP   2003   0106. The official public docket consists of the documents specifically referenced in this action, any public comments received, and other information related to this action. Although a part of the official docket, the public docket does not include Confidential Business Information ( CBI) or other information whose disclosure is restricted by statute. The official public docket is the collection of materials that is available for public viewing at the Public Information and Records Integrity Branch ( PIRIB), Rm. 119, Crystal Mall # 2, 1921 Jefferson Davis Hwy., Arlington, VA. This docket facility is open from 8: 30 a. m. to 4 p. m., Monday through Friday, excluding legal holidays. The docket telephone number is ( 703) 305   5805. 2. Electronic access. You may access this Federal Register document electronically through the EPA Internet under the `` Federal Register'' listings at http:// www. epa. gov/ fedrgstr/. An electronic version of the public docket is available through EPA's electronic public docket and comment system, EPA Dockets. You may use EPA Dockets at http:// www. epa. gov/ edocket/ to submit or view public comments, access the index listing of the contents of the official public docket, and to access those documents in the public docket that are available electronically. Although not all docket materials may be available electronically, you may still access any of the publicly available docket materials through the docket facility identified in Unit I. B. 1. Once in the system, select `` search,'' then key in the appropriate docket ID number. Certain types of information will not be placed in the EPA Dockets. Information claimed as CBI and other information whose disclosure is restricted by statute, which is not included in the official public docket, will not be available for public viewing in EPA's electonic public docket. EPA's policy is that copyrighted material will not be placed in EPA's electronic public docket but will be available only in printed, paper form in the official public docket. To the extent feasible, publicly available docket materials will be made available in EPA's electronic public docket. When a document is selected from the index list in EPA Dockets, the system will identify whether the document is available for viewing in EPA's electronic public docket. Although not all docket materials may be available electronically, you may still access any of the publicly available docket materials through the docket facility identified in Unit I. B. EPA intends to work towards providing electronic access to all of the publicly available docket materials through EPA's electronic public docket. For public commenters, it is important to note that EPA's policy is that public comments, whether submitted electronically or in paper, will be made available for public viewing in EPA's electronic public docket as EPA receives them and without change, unless the comment contains copyrighted material, CBI, or other information whose disclosure is restricted by statute. When EPA identifies a comment containing copyrighted material, EPA will provide a reference to that material in the version of the comment that is placed in EPA's electronic public docket. The entire printed comment, including the copyrighted material, will be available in the public docket. Public comments submitted on computer disks that are mailed or delivered to the docket will be transferred to EPA's electronic public docket. Public comments that are mailed or delivered to the docket will be scanned and placed in EPA's electronic public docket. Where practical, physical objects will be photographed, and the photograph will be placed in EPA's electronic public docket along with a brief description written by the docket staff.

C. How and To Whom Do I Submit Comments? You may submit comments electronically, by mail, or through hand delivery/ courier. To ensure proper receipt by EPA, identify the appropriate docket ID number in the subject line on the first page of your comment. Please ensure that your comments are submitted within the specified comment period. Comments received after the close of the comment period will be marked `` late.'' EPA is not required to consider these late comments. If you wish to submit CBI or information that is otherwise protected by statute, please follow the instructions in Unit I. D. Do not use EPA Dockets or e mail to submit CBI or information protected by statute. 1. Electronically. If you submit an electronic comment as prescribed in this unit, EPA recommends that you include your name, mailing address, and an email address or other contact information in the body of your comment. Also, include this contact information on the outside of any disk or CD ROM you submit, and in any cover letter accompanying the disk or CD ROM. This ensures that you can be identified as the submitter of the comment and allows EPA to contact you in case EPA cannot read your comment due to technical difficulties or needs further information on the substance of your comment. EPA's policy is that EPA will not edit your comment, and any identifying or contact information provided in the body of a comment will be included as part of the comment that is placed in the official public docket, and made available in EPA's electronic public docket. 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. i. EPA Dockets. Your use of EPA's electronic public docket to submit comments to EPA electronically is EPA's preferred method for receiving comments. Go directly to EPA Dockets at http:// www. epa. gov/ edocket, and follow the online instructions for submitting comments. Once in the system, select `` search,'' and then key in docket ID number OPP   2003   0106. The system is an `` anonymous access'' system, which means EPA will not know your identity, e mail address, or other contact information unless you provide it in the body of your comment. ii. E mail. Comments may be sent by e mail to opp docket@ epa. gov, Attention: Docket ID Number OPP   2003   0106. In contrast to EPA's electronic public docket, EPA's e mail system is not an `` anonymous access'' system. If you send an e mail comment directly to the docket without going through EPA's electronic public docket, EPA's e mail system automatically captures your e mail address. E mail addresses that are automatically captured by EPA's e mail system are included as part of the comment that is placed in the official public docket, and made available in EPA's electronic public docket. iii. Disk or CD ROM. You may submit comments on a disk or CD ROM that you mail to the mailing address identified in Unit I. C. 2. These electronic submissions will be accepted in WordPerfect or ASCII file format. Avoid the use of special characters and any form of encryption. 2. By mail. Send your comments to: Public Information and Records Integrity Branch ( PIRIB) ( 7502C), Office of Pesticide Programs ( OPP), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460   0001, Attention: Docket ID Number OPP   2003   0106.

VerDate Jan< 31> 2003 19: 38 Mar 25, 2003 Jkt 200001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 26MRN1. SGM 26MRN1 14624 Federal Register / Vol. 68, No. 58 / Wednesday, March 26, 2003 / Notices 3. By hand delivery or courier. Deliver your comments to: Public Information and Records Integrity Branch ( PIRIB), Office of Pesticide Programs ( OPP), Environmental Protection Agency, Rm. 119, Crystal Mall # 2, 1921 Jefferson Davis Hwy., Arlington, VA, Attention: Docket ID Number OPP   2003   0106. Such deliveries are only accepted during the docket's normal hours of operation as identified in Unit I. B. 1.

D. How Should I Submit CBI To the Agency? Do not submit information that you consider to be CBI electronically through EPA's electronic public docket or by e mail. You may claim information that you submit to EPA as CBI by marking any part or all of that information as CBI ( if you submit CBI on disk or CD ROM, mark the outside of the disk or CD ROM as CBI and then identify electronically within the disk or CD ROM the specific information that is CBI). Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. In addition to one complete version of the comment that includes any information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket and EPA's electronic public docket. If you submit the copy that does not contain CBI on disk or CD ROM, mark the outside of the disk or CD ROM clearly that it does not contain CBI. Information not marked as CBI will be included in the public docket and EPA's electronic public docket without prior notice. If you have any questions about CBI or the procedures for claiming CBI, please consult the person listed under FOR FURTHER INFORMATION CONTACT.

E. What Should I Consider as I Prepare My Comments for EPA? You may find the following suggestions helpful for preparing your comments: 1. Explain your views as clearly as possible. 2. Describe any assumptions that you used. 3. Provide copies of any technical information and/ or data you used that support your views. 4. If you estimate potential burden or costs, explain how you arrived at the estimate that you provide. 5. Provide specific examples to illustrate your concerns. 6. Make sure to submit your comments by the deadline in this notice. 7. To ensure proper receipt by EPA, be sure to identify the docket ID number assigned to this action in the subject line on the first page of your response. You may also provide the name, date, and Federal Register citation.

II. What Action is the Agency Taking? EPA has received a pesticide petition as follows proposing the establishment and/ or amendment of regulations for residues of a certain pesticide chemical in or on various food commodities under section 408 of the Federal Food, Drug, and Cosmetic Act ( FFDCA), 21 U. S. C. 346a. EPA has determined that this petition contains data or information regarding the elements set forth in FFDCA section 408( d)( 2); however, EPA has not fully evaluated the sufficiency of the submitted data at this time or whether the data support granting of the petition. Additional data may be needed before EPA rules on the petition.

List of Subjects Environmental protection, Agricultural commodities, Feed additives, Food additives, Pesticides and pests, Reporting and recordkeeping requirements.

Dated: March 18, 2003. Debra Edwards, Acting Director, Registration Division, Office of Pesticide Programs.

Summary of Petition The petitioner's summary of the pesticide petition is printed below as required by FFDCA section 408( d)( 3). The summary of the petition was prepared by the petitioner and represents the view of the petitioner. The petition summary announces the availability of a description of the analytical methods available to EPA for the detection and measurement of the pesticide chemical residues or an explanation of why no such method is needed.

Interregional Research Project Number ( IR 4)

PP 2E6375, 2E6488, 2E6489, and 2E6495 EPA has received pesticide petitions ( 2E6375, 2E6488, 2E6489, and 2E6495) from the Interregional Research Project Number ( IR 4), 681 U. S. Highway # 1 South, North Brunswick, NJ 08902 proposing, pursuant to section 408( d) of the FFDCA, 21 U. S. C. 346a( d), to amend 40 CFR 180.507 by establishing tolerances for residues of azoxystrobin, methyl( E) 2( 2( 6( 2 cyanophenoxy) pyrimidin 4 yloxy) phenyl) 3 methoxyacrylate and the Z isomer of azoxystrobin, methyl( Z) 2( 2( 6( 2 cyanophenoxy) pyrimidin 4 yloxy) phenyl) 3 methoxyacrylate in or on the following raw agricultural commodities: asparagus at 0.02 parts per million ( ppm) ( 2E6375); brassica, head and stem, subgroup 5a at 3.0 ppm ( 2E6488); artichoke, globe at 4.0 ppm ( 2E6489); herb subgroup 19A, fresh, except chive at 50 ppm ( 2E6495); and herb subgroup 19A, dried, except chive at 260 ppm ( 2E6495). EPA has determined that the petitions contain data or information regarding the elements set forth in section 408( d)( 2) of the FFDCA; however, EPA has not fully evaluated the sufficiency of the submitted data at this time or whether the data support granting of the petitions. Additional data may be needed before EPA rules on these petitions. This summary has been prepared by Syngenta, the registrant.

A. Residue Chemistry 1. Plant metabolism. The metabolism of azoxystrobin as well as the nature of the residues is adequately understood for purposes of the tolerances. 2. Analytical method. An adequate analytical method, gas chromatography with nitrogen phosphorus detection ( GC NPD) or in mobile phase by high performance liquid chromatography with ultra violet detection ( HPLC UV), is available for enforcement purposes with a limit of detection that allows monitoring of food with residues at or above the levels set in these tolerances. The Analytical Chemistry section of the EPA concluded that the method( s) are adequate for enforcement. Analytical methods are also available for analyzing meat, milk, poultry and eggs which also underwent successful independent laboratory validations. 3. Magnitude of residues. Complete residue data for azoxystrobin on artichoke, globe; asparagus, head and stem brassica and herb subgroup 19A have been submitted. The requested tolerances are adequately supported.

B. Toxicological Profile VerDate Jan< 31> 2003 19: 38 Mar 25, 2003 Jkt 200001 PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 26MRN1. SGM 26MRN1 14625 Federal Register / Vol. 68, No. 58 / Wednesday, March 26, 2003 / Notices TABLE 1.   SUMMARY OF TOXICOLOGICAL DOSE AND ENDPOINTS FOR AZOXYSTROBIN FOR USE IN HUMAN RISK ASSESSMENT Exposure Scenario Dose Used in Risk Assessment, UF FQPA SF* and Level of Concern for Risk Assessment Study and Toxicological Effects Acute dietary ( general population including infants and children) NOAEL=< 200 mg/ kg/ day UF= 300 Acute RfD= 0.67 mg/ kg/ day FQPA SF = 1X aPAD = Acute RfD + FQPA SF = 0.67 mg/ kg/ day Acute neurotoxicity study in rates LOAEL = 200 mg/ kg/ day based on diarrhea and 2 hours post dose at all dose levels up to and including 20 mg/ kg/ day ( the LOAEL)

Chronic dietary ( all populations) NOAEL = 18 mg/ kg/ day UF= 100 Chronic RfD = 0.18 mg/ kg/ day FQPA SF = 1X cPAD = chronic RfD + FQPA SF = 0.18 mg/ kg/ day Combined chronic toxicity carcinogenicity feeding study in rates LOAEL = 34/ 117 mg/ kg/ day in males/ females based on reduced body weights in both sexes and bile duct lesions in males.

Short term ( 1   7 days) incidental oral ( residential) NOAEL = 25 mg/ kg/ day UF = 100 FQPA SF = 1X Prenatal developmental oral toxicity study in rates LOAEL = 100 mg/ kg/ day based on increased maternal diarrhea, urinary incontinence, and salivation.

Intermediate term ( 1 week to several months) incidental oral ( residential) NOAEL = 20 mg/ kg/ day UF = 100 FQPA SF = 1X 90   Day feeding study in rats LOAEL = 211/ 223 mg/ kg/ day in males/ females based on decreased body weight gain in both sexes and clinical signs indicative of reduced nutrition

Short intermediate, and long term dermal ( residential) None None 21   Day repeated dose dermal study in rats. No dermal or systemic toxicity was seen at the limit does ( 1,000 mg/ kg/ day). This risk assessment is not required

Short term inhalation ( 1 7 days) ( residential) Oral Study NOAEL = 25 mg/ kg/ day ( inhalation absorption rate  100%) LOC for MOE = 100 ( residential) Prenatal developmental oral toxicity study in rats. LOAEL = 100 mg/ kg/ day based on increased maternal diarrhea, urinary incontinence and salivation.

Intermediate term inhalation ( 1 week to several months) ( residential) Oral Study NOAEL = 20 mg/ kg/ day ( inhalation absorption rate  100%) LOC for MOE = 100 ( residential) 90   Day feeding study in rats LOAEL = 211/ 223 mg/ kg/ day in males/ females based on decreased body weight gain in both sexes and clinical signs indicative of reduced nutrition

Long term inhalation (> 180 days) ( residential) None None This risk assessment is not applicable to the use of azoxystrobin Cancer ( oral, dermal, inhalation) None None Azoxystrobin is classified as not likely to be carcinogenic in humans 2. Metabolite toxicology. There are no metabolites of concern based on a differential metabolism between plants and animals. 3. Endocrine disruption. There is no evidence that azoxystrobin is an endocrine disrupter.

C. Aggregate Exposure 1. Dietary exposure. Tolerance values have been established ( 40 CFR 180.507( a)) for the combined residues of both azoxystrobin and its Z isomer, in or on a variety of raw agricultural commodities including meat, milk and eggs. These established tolerances range from 0.02 ppm on tree nuts to 55 ppm on soybean hay. i. Food. Tier I acute and chronic dietary exposure evaluations were made using the Dietary Exposure Evaluation Model ( DEEM   ) , version 7.76 from Exponent. All processing factors used DEEM   defaults values. All consumption data for these assessments were taken from the USDA's Continuing Survey of Food Intake by individuals ( CSFII) with the 1994   1996 consumption data base and the Supplemental CSFII children's survey ( 1998) consumption data base. These dietary exposure assessments included all registered uses and proposed uses on asparagus ( 0.02 ppm), brassica, head and stem subgroup 5A ( 3 ppm), herb subgroup 19A ( 250 ppm) and artichoke globe ( 4 ppm). ii. Drinking water. There is no established maximum concentration level ( MCL) for residues of azoxystrobin in drinking water. No health advisory levels for azoxystrobin in drinking water have been established. The concentration of azoxystrobin in surface water is based on generic estimated environmental concentration ( GENEEC) modeling and in ground water based on screening concentration in ground water ( SCI GROW) modeling. 2. Non dietary exposure. Azoxystrobin is registered for residential use on ornamentals and turf. The Agency evaluated the existing toxicological data base for azoxystrobin and assessed both the appropriate toxicological endpoints and the dose levels of concern. Dermal absorption data indicate that absorption is less than or equal to 4%.

D. Cumulative Effects Section 408( b)( 2)( D)( v) requires that, when considering whether to establish,

VerDate Jan< 31> 2003 19: 38 Mar 25, 2003 Jkt 200001 PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 26MRN1. SGM 26MRN1 14626 Federal Register / Vol. 68, No. 58 / Wednesday, March 26, 2003 / Notices modify, or revoke a tolerance, the Agency consider `` available information'' concerning the cumulative effects of a particular pesticide's residues and `` other substances that have a common mechanism of toxicity.'' Azoxystrobin is related to the naturally occurring strobilurins. Syngenta concluded that further consideration of a common mechanism of toxicity is not appropriate at this time since there are no data to establish whether a common mechanism exists with any other substances.

E. Safety Determination 1. Infants and Children. The chronic dietary exposure ( food only) resulting from all established and proposed azoxystrobin uses was 27.6% of the reference dose ( RfD) for the most sensitive subpopulation, children 1 and 2 years old. Additionally, for this same subpopulation, the acute dietary exposure ( food only) resulting from all established and proposed azoxystrobin uses was 22.3% of the acute reference dose ( aRfD). The EPA has determined that there is reliable data support using the standard MOE and uncertainty factor ( 100X for chronic and 300X for acute) for azoxystrobin and that an additional safety factor of 10 is not necessary to be protective of infants and children. Syngenta has considered the potential aggregate exposure from food, water and non occupational exposure routes and concludes that aggregate exposure is not expected to exceed 100% of the chronic reference dose and that there is a reasonable certainty that no harm will result to infants and children from the aggregate exposure to azoxystrobin.

[ FR Doc. 03   7056 Filed 3   25   03; 8: 45 am]

BILLING CODE 6560   50   S ENVIRONMENTAL PROTECTION AGENCY [ OPP   2003   0053; FRL   7294   6]

Quinoxyfen; Receipt of Application for Emergency Exemption; Solicitation of Public Comment AGENCY: Environmental Protection Agency ( EPA). ACTION: Notice.

SUMMARY: EPA has received specific exemption requests from the Idaho Department of Agriculture, the Oregon Department of Agriculture, and the Washington State Department of Agriculture to use the pesticide quinoxyfen ( CAS No. 124495   18   7) to treat up to a total of 19,500 acres of hops to control powdery mildew; 3,000 acres in Idaho, 3,500 acres in Oregon, and 13,000 acres in Washington. The Applicants propose the use of a new chemical which has not been registered by EPA. EPA is soliciting public comment before making the decision whether or not to grant the exemptions. DATES: Comments, identified by docket ID number OPP   2003   0053, must be received on or before April 10, 2003. ADDRESSES: Comments may be submitted electronically, by mail, or through hand delivery/ courier. Follow the detailed instructions as provided in Unit I. of the SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT: Barbara Madden, Registration Division ( 7505C), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460   0001; telephone number: ( 703) 305   6463; fax number: ( 703) 308   5433; e mail address: Sec 18 Mailbox@ epamail. epa. gov.

SUPPLEMENTARY INFORMATION:

I. General Information A. Does this Action Apply to Me?

You may be potentially affected by this action if you are a Federal or State government agency involved in administration of environmental quality programs. Potentially affected entities may include, but are not limited to: Federal or State Government entity, ( NAICS 9241), e. g., Department of Agriculture, Environment, etc. This listing is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this action. Other types of entities not listed in this unit could also be affected. The North American Industrial Classification System ( NAICS) codes have been provided to assist you and others in determining whether this action might apply to certain entities. 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. How Can I Get Copies of this Document and Other Related Information?

1. Docket. EPA has established an official public docket for this action under docket identification ( ID) number OPP   2003   0053. The official public docket consists of the documents specifically referenced in this action, any public comments received, and other information related to this action. Although a part of the official docket, the public docket does not include Confidential Business Information ( CBI) or other information whose disclosure is restricted by statute. The official public docket is the collection of materials that is available for public viewing at the Public Information and Records Integrity Branch ( PIRIB), Rm. 119, Crystal Mall # 2, 1921 Jefferson Davis Hwy., Arlington, VA. This docket facility is open from 8: 30 a. m. to 4 p. m., Monday through Friday, excluding legal holidays. The docket telephone number is ( 703) 305   5805. 2. Electronic access. You may access this Federal Register document electronically through the EPA Internet under the `` Federal Register'' listings at http:// www. epa. gov/ fedrgstr/. An electronic version of the public docket is available through EPA's electronic public docket and comment system, EPA Dockets. You may use EPA Dockets at http:// www. epa. gov/ edocket/ to submit or view public comments, access the index listing of the contents of the official public docket, and to access those documents in the public docket that are available electronically. Once in the system, select `` search,'' then key in the appropriate docket ID number. Certain types of information will not be placed in the EPA Dockets. Information claimed as CBI and other information whose disclosure is restricted by statute, which is not included in the official public docket, will not be available for public viewing in EPA's electronic public docket. EPA's policy is that copyrighted material will not be placed in EPA's electronic public docket but will be available only in printed, paper form in the official public docket. To the extent feasible, publicly available docket materials will be made available in EPA's electronic public docket. When a document is selected from the index list in EPA Dockets, the system will identify whether the document is available for viewing in EPA's electronic public docket. Although not all docket materials may be available electronically, you may still access any of the publicly available docket materials through the docket facility identified in Unit I. B. 1. EPA intends to work towards providing electronic access to all of the publicly available docket materials through EPA's electronic public docket. For public commenters, it is important to note that EPA's policy is that public comments, whether submitted electronically or in paper, will be made available for public viewing in EPA's electronic public docket as EPA receives them and without change, unless the comment contains copyrighted material, CBI, or VerDate Jan< 31> 2003 19: 38 Mar 25, 2003 Jkt 200001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 26MRN1. SGM 26MRN1


[Federal Register Volume 78, Number 29 (Tuesday, February 12, 2013)]
[Notices]
[Pages 9953-9955]
[FR Doc No: 2013-03103]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68844; File No. SR-CBOE-2013-007]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to the Opening of the Complex Order Book

February 6, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 28, 2013, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Exchange has designated the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6) thereunder, which renders it effective upon filing
with the Commission.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is proposing to amend its electronic complex order
rules. The text of the proposed rule change is available on the
Exchange's Web site (www.cboe.org/Legal), at the Exchange's Office of
the Secretary 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 those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.

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

1. Purpose
    The purpose of this proposed rule change is to include a
description in Rule 6.53C of the manner in which complex orders are
currently electronically processed through the Exchange's complex order
book (``COB'') when the COB opens for trading. Currently the rule does
not include this level of detail, so the Exchange is proposing to
include this information within the rule to provide additional clarity
on the current operation of the COB. The Exchange notes that it is
simply including additional detail in its rules on the existing process
when the COB opens in response to Trading Permit Holder inquiries about
its operation. No changes to the process are being contemplated by this
rule change filing.
    In particular, the proposed rule change will provide that complex
orders, including stock-option orders, do not participate in opening
rotations conducted pursuant to Rule 6.2B for individual option
series.\5\ When the last of the individual component option series legs
that make up a complex order strategy has opened (and, in the case of a
stock-option strategy, when the underlying stock has opened), the COB
for that strategy will then open for trading. The COB for a given
complex order strategy will open with no trade,\6\ except as follows:
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    \5\ The Exchange notes that, previously, Rule 6.2B had provided
that spread orders (a general reference used to refer to complex
orders) do not participate in the Hybrid Opening System (``HOSS'')
opening trade for individual component option series legs or in the
determination of the opening price, expected opening price or
expected opening size for an individual component options series
leg. This provision was eliminated from Rule 6.2B in 2010 and, as
revised, the Exchange could determine whether to designate various
complex order types as eligible for HOSS on a class-by-class basis
(just as it would for any other order type). See Securities Exchange
Act Release No. 63580 (December 20, 2010), 75 FR 81705 (December 28,
2010) (SR-CBOE-2010-114). To date, the Exchange has not determined
to include spread orders/complex orders in the Rule 6.2B opening
process. With this proposed rule change, SR-CBOE-2013-007, the
Exchange would no longer be permitted to designate complex order
(including stock-option order) order types as eligible for the Rule
6.2B opening process. If, in the future, the Exchange would desire
to designate certain complex order (including stock-option order)
order types as being eligible to participate in the HOSS opening
process for simple orders, such a determination would be subject to
a separate rule change filing.
    \6\ For example, the COB would open with no trade if there are
no complex orders resting for the strategy or if there are complex
orders on only one side of the COB at a net price(s) that does not
touch or cross the derived net market. The ``derived net market''
for a stock-option order strategy will be calculated using the
Exchange's best bid or offer in the individual option series leg(s)
and the NBBO in the stock leg. The ``derived net market'' for any
other complex order strategy will be calculated using the Exchange's
best bid or offer in the individual series legs.
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    First, the COB will open with a trade against the individual
component option series legs if there are complex orders on only one
side of the COB that are marketable against the opposite side of the
derived net market. The resulting execution will occur at the derived
net market price to the extent marketable. Any remaining balance would
be processed as it would on an intra-day basis as set forth in Rule
6.53C (including being subject to the applicable complex order priority
and price check parameter provisions set forth in Rule 6.53C). This
provision for ``legging'' against the individual series legs is not
applicable to stock-option order strategies. (Stock-option orders
processed through COB generally only trade against other stock-option
orders. Stock-option orders processed through COB generally do not
trade against individual component option series legs, except in one
limited circumstance

for market orders at the conclusion of a complex order RFQ auction
(``COA'').\7\)
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    \7\ See Rule 6.53C.06.
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    For example, if the derived net market for a given complex order
strategy is $1.00-$1.20 for 100 units and the only interest in the COB
is a complex order to buy the strategy at a net debit price of $1.21
for 120 units, then 100 units of the complex order would trade at a net
price of $1.20 against the individual component series legs and the
remaining 20 units of the complex order would be subject to processing
under Rule 6.53C (e.g., remain in the COB if not marketable against the
individual orders and quotes in the electronic book or other complex
orders in the COB, execute or route for manual processing if marketable
subject the applicable priority and price check parameters).
    Second, the COB will open with a trade against complex orders if
there are complex orders on both sides of the COB that are marketable
against each other and that are priced within the derived net market.
The resulting execution will occur at a market clearing price that is
inside the derived net market and that matches complex orders to the
extent marketable. In determining the priority, the COB gives priority
to complex orders whose net price is better than the market clearing
price first, and then to complex orders at the market clearing
price.\8\ This provision for complex orders to trade against each other
is applicable to stock-option order strategies.
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    \8\ This ``market clearing price'' process for executing complex
orders when the COB opens is similar to the process for executing
simple orders when HOSS opens an individual component options
series. See Rule 6.2B(c)(iv) (``[t]he opening price of a series is
the `market-clearing' price that will leave bids and offers which
cannot trade with each other. In determining the priority of orders
and quotes to be traded, the System gives priority to market orders
first, then to limit orders and quotes whose price is better than
the opening price, and then to resting orders and quotes at the
opening price.'')
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    For example, assume the derived net market for a given complex
order strategy is $1.00-$1.20 for 100 units and there is a complex
order in the COB to sell the strategy at a net credit price of $1.19
for 20 units, a complex order in the COB to sell the strategy at a net
credit price of $1.18 for 10 units, and a complex order in COB to buy
the strategy at a net debit price of $1.19 for 50 units. When the COB
opens, 30 units of the buy strategy would trade at a net price of $1.19
against the two sell strategies. The remaining 20 units of the buy
strategy would be subject to processing under Rule 6.53C (e.g., remain
in the COB if not marketable against the individual orders and quotes
in the electronic book or other complex orders in the COB, execute or
route for manual processing if marketable subject the applicable
priority and price check parameters).
    As another example, if the derived net market for a given stock-
option order strategy is $5.00-$5.20 for 100 units and there is a
stock-option order in the COB to sell the strategy at a net credit
price of $5.19 for 20 units, a stock-option order in the COB to sell
the strategy at a net credit price of $5.18 for 10 units, and a stock-
option order in COB to buy the strategy at a net debit price of $5.19
for 50 units, then 30 units of the buy strategy would trade at a net
price of $5.19 against the two sell strategies. The remaining 20 units
of the buy strategy would be subject to processing under Rule 6.53C
(e.g., remain in the COB if not marketable against the derived net
market (considering the individual orders and quotes in the electronic
book for the component options series legs and the NBBO in the stock
leg) or other stock-option orders in the COB, or execute or route for
manual processing if marketable subject the applicable priority and
price check parameters).
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act
\9\ in general and furthers the objectives of Section 6(b)(5) of the
Act \10\ in particular in that it should promote just and equitable
principles of trade, serve to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and
protect investors and the public interest. In particular, the Exchange
believes that including detail within the rules should provide
additional clarity and avoid any confusion on the current operation of
the COB open. The Exchange also believes that the operation of the COB
increases opportunities for all types of market participants (e.g.,
public customers, broker-dealers and market-makers) to participate in
the trading of complex orders. This participation may promote liquidity
and result in better prices for customers throughout the trading day,
including when the COB opens.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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 the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. As noted above, the Exchange
believes that including detail within the rules should provide
additional clarity and avoid any confusion on the current operation of
the COB open. The Exchange also believes that the operation of the COB
increases opportunities for all types of market participants (e.g.,
public customers, broker-dealers and market-makers) to participate in
the trading of complex orders. This participation may promote liquidity
and result in better prices for customers throughout the trading day,
including when the COB opens.

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

    The Exchange neither solicited nor received comments on the
proposal.

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

    Because the foregoing rule 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, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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-CBOE-2013-007 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2013-007. 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-CBOE-2013-007 and should be
submitted on or before March 5, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03103 Filed 2-11-13; 8:45 am]
BILLING CODE 8011-01-P