[Federal Register Volume 83, Number 42 (Friday, March 2, 2018)]
[Notices]
[Pages 9032-9035]
[FR Doc No: 2018-04208]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82771; File No. SR-CBOE-2018-017]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 6.56, Compression Forums, To Provide Additional Opportunities To
Disclose Compression-List Positions Monthly

February 26, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 13, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') 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
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\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)(iii).
    \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 proposes to amend Rule 6.56, Compression Forums.
(additions are italicized; deletions are [bracketed])
* * * * *

Cboe Exchange, Inc. Rules

* * * * *

Rule 6.56. Compression Forums

    (a)
    (1) Prior to 4:30 p.m. Chicago time on the second, third, and
fourth to last business day of each calendar month, in a manner and
format determined by the Exchange, a Trading Permit Holder may provide
the Exchange with a list of open SPX options positions that it would
like to close through the compression forum for that calendar month
(``compression-list positions''). Trading Permit Holders may also
permit their Clearing Trading Permit Holders or the Clearing
Corporation to submit a list of these positions to the Exchange on
their behalf.

    (2) Prior to the open of Regular Trading Hours on the last business
day, second to last business day, and third to last business day of
each calendar month, the Exchange will make available to all Trading
Permit Holders a list including the size of the offsetting compression-
list positions (including all possible combinations of offsetting
multi-leg positions) in each series (and multi-leg position) for which
both long and short compression-list positions have been submitted to
the Exchange (``compression-list positions file'').
    (3)-(6) (No change).
    (b)-(c) (No change).
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    The Exchange proposes to amend rule 6.56 (Compression Forums) to
modify the frequency with which Trading Permit Holders (``TPHs'') may
submit compression-list positions to the Exchange.
    Currently, TPHs may submit lists of existing SPX positions to the
Exchange that they wish to close during a compression forum
(``compression-list positions'') by submitting such positions to the
Exchange prior to 4:30 p.m. Chicago time on the fourth to last business
day of each calendar month.\5\ Following the submission of compression-
list positions and prior to the open of Regular Trading Hours on the
third to last business day of each calendar month, the Exchange makes
available to all TPHs a list including the size of the offsetting
compression-list positions (including all possible combinations of
offsetting multi-leg positions) in each series (and multi-leg position)
for which both long and short compression-list positions have been
submitted to the Exchange (``compression-list positions file'').\6\ In
addition to making the compression-list positions file available to all
TPHs, the Exchange: (1) Distributes the compress-list positions file to
TPHs that submitted compression-list positions; \7\ (2) distributes an
individualized list of multi-leg positions (``multi-leg positions
file'') to each TPH that submitted compression-list positions; \8\ and
(3) facilitates a process by which a TPH may grant the Exchange
permission to share the TPH's identity with contra-party TPHs that have
offsetting multi-leg positions.\9\
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    \5\ See Rule 6.56. (a)(1).
    \6\ See Rule 6.56(a)(2).
    \7\ See Rule 6.56(a)(3).
    \8\ See Rule 6.56(a)(4).
    \9\ See Rule 6.56(a)(5).
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    As previously noted, TPH compression-list positions are due by 4:30
p.m. Chicago time on the fourth to last business day of each calendar
month. Thus, compression-list positions submitted by TPHs and the
subsequent files and information generated from the compression-list
positions cannot account for positions that have been opened or closed
on the last three business days of the month (i.e., after the current
submission deadline). Therefore, the Exchange proposes to amend Rule
6.56 to allow TPHs to also submit compression-list positions to the
Exchange prior to 4:30 p.m. Chicago time on the second and third to
last business days of each calendar month. The Exchange believes that
allowing TPHs to reassess their positions at the end of the second and
third to last business day of each calendar month--and submit
compression list positions by 4:30 p.m. Chicago time on those days--
will allow TPHs to more efficiently and effectively close open
positions during compression forums.
    The Exchange notes that it is not proposing to modify the process
by which the Exchange utilizes compression-list positions to generate
files. The Exchange will simply perform those processes three times
instead of once. For example, from the compression-list positions
submitted prior to 4:30 p.m. Chicago time on the fourth to last
business day, the Exchange will generate and distribute the files and
information described in Rule 6.56(a)(2)-(5), and such files and
information are likely to be used by TPHs in the compression forum that
occurs on the third to last business day. From the compression-list
positions submitted prior to 4:30 p.m. Chicago time on the third to
last business day, the Exchange will generate and distribute the files
and information described in Rule 6.56(a)(2)-(5), and such files and
information are likely to be used by TPHs in the compression forum that
occurs on the second to last business day. Finally, from the
compression-list positions submitted prior to 4:30 p.m. Chicago time on
the second to last business day, the Exchange will generate and
distribute the files and information described in Rule 6.56(a)(2)-(5),
and such files and information is likely to be used by TPHs in the
compression forum that occurs on the last business day. The Exchange
notes that if, for example, a TPH submits compression-list positions on
the fourth to last business day but not on the second or third to last
business day, the compression-list positions submitted on the fourth to
last business day will be used in the first file generation process,
not each time the Exchange generates files. In short, each time the
Exchange runs its file generation process the Exchange processes only
the compression-list positions specific to each deadline (i.e., all
compression list positions submitted prior to 4:30 p.m. Chicago time on
the fourth to last business day of the calendar month are processed
together; all compression list positions submitted prior to 4:30 p.m.
Chicago time on the third to last business day of the calendar month
are processed together; and so on).
    The proposed rule change will allow TPHs to submit to the Exchange
more accurate information regarding their open positions in order to
facilitate the generation of a more accurate assessment of potential
offsetting interest, specifically, on the second and third to last
business days of the calendar month. Giving TPHs a more accurate
assessment of potential offsetting interest allows TPHs to more
efficiently and effectively execute closing transactions in compression
forums on the last business day and the second to last business day of
the calendar month. The ability to more efficiently and effectively
execute closing transactions in compression forums helps to alleviate
the adverse impact of bank capital requirements.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations

thereunder applicable to the Exchange and, in particular, the
requirements of Section 6(b) of the Act.\10\ Specifically, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \11\ requirements that the rules of an exchange be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \12\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ Id.
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    In particular, the proposed rule change will allow TPHs to submit
to the Exchange more accurate information regarding their open
positions in order to facilitate the generation of a more accurate
assessment of potential offsetting interest, specifically, on the
second and third to last business days of the calendar month. Giving
TPHs a more accurate assessment of potential offsetting interest allows
TPHs to more efficiently and effectively execute closing transactions
in compression forums on the last business day and the second to last
business day of the calendar month, which, in general, helps to protect
investors and the public interest because closing positions via the
compression process serves to alleviate the adverse impact of bank
capital requirements.

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

    Cboe Options 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. The proposed change would
encourage the closing of positions, which, once closed, may serve to
alleviate the capital requirement constraints on TPHs and improve
overall market liquidity by freeing capital currently tied up in
certain SPX positions. The Exchange does not believe that the proposed
rule changes will impose any burden on intermarket competition that is
not necessary or appropriate in furtherance of the purposes of the Act
because the proposed rule change applies only to the trading of SPX
options, which are exclusively-listed on Cboe Options. To the extent
that the proposed changes make the Exchange a more attractive
marketplace for market participants at other exchanges, such market
participants are eligible to participant through Cboe Options TPHs.
Furthermore, participation in compression forums is completely
voluntary and open to all TPHs.

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
proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative upon filing. The Commission notes
that the proposal is not modifying the procedures for collecting or
distributing compression-list positions, but is only providing
additional opportunities for TPHs to disclose their positions using
existing procedures. The Exchange has stated that the proposed rule
change, by giving a more accurate assessment of potential offsetting
interest, specifically on the second and third to last business days of
the calendar month, will allow TPHs to more efficiently and effectively
execute closing transactions in SPX options. Therefore, the Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay and designates the
proposal operative upon filing.\17\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CBOE-2018-017 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2018-017. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the

proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of CBOE. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2018-017 and should be submitted on
or before March 23, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-04208 Filed 3-1-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 90 (Monday, May 11, 2015)]
[Notices]
[Pages 26970-26972]
[FR Doc No: 2015-11272]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74873; File No. SR-NASDAQ-2015-044]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Listing and Trading of the Shares of the First Trust
High Income ETF, a Series of First Trust Exchange-Traded Fund VI

May 5, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 24, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') 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 Nasdaq. The Exchange has
designated the proposed rule change as constituting a non-controversial
rule change under Rule 19b-4(f)(6) under the Act,\3\ which renders the
proposal effective upon filing with the Commission. 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\ 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

    Nasdaq proposes a rule change with respect to the First Trust High
Income ETF (the ``Fund'') of First Trust Exchange-Traded Fund VI (the
``Trust''), the shares of which have been approved by the Commission
for listing and trading under NASDAQ Rule 5735 (``Managed Fund
Shares''). The shares of the Fund are collectively referred to herein
as the ``Shares.''
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, 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, Nasdaq included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. Nasdaq has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.

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

1. Purpose
    The Exchange proposes to reflect changes to the means of achieving
the Fund's investment objectives. The Commission has approved the
listing and trading of Shares under NASDAQ Rule 5735, which governs the
listing and trading of Managed Fund Shares on the Exchange.\4\ The
Exchange believes the proposed rule change reflects no significant
issues not previously addressed in the Prior Release. The Fund is an
actively managed exchange-traded fund (``ETF''). The Shares are offered
by the Trust, which was organized as a Massachusetts business trust on
June 4, 2012. The Trust, which is registered with the Commission as an
investment company, has filed a registration statement on Form N-1A
(``Registration Statement'') relating to the Fund with the
Commission.\5\ First Trust Advisors L.P. (``First Trust Advisors'') is
the investment adviser (``Adviser'') to the Fund.
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    \4\ The Commission approved NASDAQ Rule 5735 (formerly NASDAQ
Rule 4420(o)) in Securities Exchange Act Release No. 57962 (June 13,
2008), 73 FR 35175 (June 20, 2008) (SR-NASDAQ-2008-039). The
Commission previously approved the listing and trading of the Shares
of the Fund. See Securities Exchange Act Release No. 70829 (November
7, 2013), 78 FR 68482 (November 14, 2013) (SR-NASDAQ-2013-122)
(``Prior Order''). See also Securities Exchange Act Release No.
70460 (September 20, 2013), 78 FR 59402 (September 26, 2013) (SR-
NASDAQ-2013-122) (``Prior Notice,'' and together with the Prior
Order, the ``Prior Release''). The Fund and the Shares are currently
in compliance with the requirements set forth in the Prior Release.
    \5\ See Post-Effective Amendment No. 51 to Registration
Statement on Form N-1A for the Trust, dated January 21, 2015 (File
Nos. 333-182308 and 811-22717). The descriptions of the Shares and
the Fund contained herein are based, in part, on information in the
Registration Statement. In addition, the Commission has issued an
order, upon which the Trust may rely, granting certain exemptive
relief under the Investment Company Act of 1940 (the ``1940 Act'').
See Investment Company Act Release No. 28468 (October 27, 2008)
(File No. 812-13477).
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    The Prior Release provided that the Fund's primary investment
objective would be to provide current income and that its secondary
investment objective would be to provide capital appreciation. Further,
the Prior Notice provided that the Fund would pursue its objectives by
investing in large-cap U.S. exchange-traded equity securities and by
utilizing an ``option strategy'' consisting of writing (selling)
exchange-traded covered call options on the Standard & Poor's 500 Index
(the ``Index'').
    The Exchange now proposes two modifications to the description of
the measures utilized by the Adviser to implement the Fund's investment
objectives. As described in further detail below, these pertain to the
following: (1) The Fund's investment primarily in large-cap U.S.
exchange-traded equity securities; and (2) the permissible terms to
expiration for the U.S. exchange-traded covered call options written
(sold) by the Fund. These modifications are being proposed to enhance
the Adviser's flexibility in pursuing the Fund's investment objectives.
However, the equity securities in which the Fund would invest and the
options which the Fund would write would continue to be limited to U.S.
exchange-traded securities and options, respectively. The Adviser
represents that there would be no change to the Fund's investment
objectives. Except as provided herein, all other facts presented and
representations made in the Prior Release would remain unchanged. The
Fund and the Shares would continue to comply with all initial and
continued listing requirements under NASDAQ Rule 5735.
The Fund's Investments Primarily in Large-Cap U.S. Exchange-Traded
Equity Securities
    The Prior Release stated that in pursuing its investment
objectives, under normal market conditions,\6\ the

Fund would invest primarily in large-cap U.S. exchange-traded equity
securities. The Exchange proposes to amend this statement in the Prior
Release by deleting the term ``large-cap.'' \7\ Therefore, going
forward, in pursuing its investment objectives, under normal market
conditions, while the Fund would continue to invest primarily in U.S.
exchange-traded equity securities, it would not be required to invest
primarily in ``large-cap'' U.S. exchange-traded equity securities. The
Adviser believes that the ability to invest primarily in U.S. exchange-
traded equity securities of any market capitalization would, by
expanding the range of potential investments, provide it with
additional flexibility to pursue, and enhance its ability to achieve,
the Fund's investment objectives.
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    \6\ According to the Prior Release, the term ``under normal
market conditions'' as used therein included, but was not limited
to, the absence of adverse market, economic, political or other
conditions, including extreme volatility or trading halts in the
securities markets or the financial markets generally; operational
issues causing dissemination of inaccurate market information; or
force majeure type events such as systems failure, natural or man-
made disaster, act of God, armed conflict, act of terrorism, riot or
labor disruption or any similar intervening circumstance. The Prior
Release also provided that in periods of extreme market disturbance,
the Fund may take temporary defensive positions, by overweighting
its portfolio in cash/cash-like instruments; however, to the extent
possible, the Adviser would continue to seek to achieve the Fund's
investment objectives.
    \7\ To the extent necessary to make them consistent, additional
statements and representations included in the Prior Release would
also be deemed to be similarly modified.
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Permissible Terms to Expiration for Call Options
    As provided in the Prior Release, the option portion of the Fund's
portfolio generally consists of U.S. exchange-traded covered calls or
covered call spreads on the Index that are written by the Fund. The
Prior Release provided that the call options written by the Fund would
typically be a laddered portfolio of one week, one month, two months
and three months and would typically be written at-the-money to
slightly out-of-the-money. The Exchange is now proposing a change that
would increase flexibility with respect to the permissible term for
call option expirations. In this regard, the Exchange proposes to
modify the foregoing to provide that, going forward, the call options
written by the Fund would be a laddered portfolio of call options with
expirations of less than one year, written at-the-money to slightly
out-of-the-money.
Surveillance
    The Exchange represents that trading in the Shares would continue
to be subject to the existing trading surveillances, administered by
both NASDAQ and also the Financial Industry Regulatory Authority
(``FINRA'') on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws.\8\
The Exchange represents that these procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws.
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    \8\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
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    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares, in the U.S. exchange-traded equity
securities in which the Fund invests, and in the U.S. exchange-traded
options which the Fund writes with other markets or other entities that
are members of the Intermarket Surveillance Group (``ISG'') or with
which the Exchange has in place a comprehensive surveillance sharing
agreement,\9\ and FINRA may obtain trading information regarding
trading in the Shares and such equity securities and options from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares and in such equity
securities and options from markets and other entities that are members
of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
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    \9\ For a list of the current members of ISG, see
www.isgportal.org.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \10\ in general and Section 6(b)(5) of the Act \11\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and, in general, to protect investors and the
public interest.
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    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares would continue to be listed and traded on the Exchange pursuant
to the initial and continued listing criteria in NASDAQ Rule 5735.
Consistent with the Prior Release, the Exchange represents that trading
in the Shares would continue be subject to the existing trading
surveillances, administered by both NASDAQ and also FINRA on behalf of
the Exchange, which are designed to detect violations of Exchange rules
and applicable federal securities laws and that these procedures are
adequate to properly monitor Exchange trading of the Shares in all
trading sessions and to deter and detect violations of Exchange rules
and applicable federal securities laws. In addition, the equity
securities in which the Fund would invest and the options which the
Fund would write would continue to be limited to U.S. exchange-traded
securities and options, respectively, that trade in markets that are
members of ISG or are parties to a comprehensive surveillance sharing
agreement with the Exchange. The Exchange would continue to be able to
obtain information regarding trading in the Shares and in such equity
securities and options from markets and other entities that are members
of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Adviser represents that there is no change to the Fund's
investment objectives. The Adviser represents that the purpose of the
proposed changes is to provide it with greater flexibility in meeting
the Fund's investment objectives by permitting: (1) The Fund to invest
primarily in U.S. exchange-traded equity securities of any market
capitalization; and (2) the covered call options written by the Fund to
be a laddered portfolio of call options with expirations of less than
one year, written at-the-money to slightly out-of-the-money. In
addition, consistent with the Prior Release, net asset value (``NAV'')
per Share would continue to be calculated daily and the NAV and
Disclosed Portfolio (as defined in the Prior Release) would continue to
be made available to all market participants at the same time. Further,
a large amount of information would continue to be publicly available
regarding the Fund and the Shares, thereby promoting market
transparency. The Intraday indicative Value (as defined in the Prior
Release), available on NASDAQ OMX Information LLC proprietary index
data service, would continue to be updated and widely disseminated and
broadly displayed at least every 15 seconds during the Regular Market
Session.\12\ Moreover, on each business day, before commencement of
trading on the Shares in the Regular Market Session on the Exchange,
the Fund would continue to disclose on the Distributor's Web site the
Disclosed Portfolio that will form the basis for the Fund's calculation
of NAV at the end of the business day.
---------------------------------------------------------------------------

    \12\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m. E.T.; (2) Regular Market Session from 9:30 a.m. to 4 p.m. or
4:15 p.m. E.T.; and (3) Post-Market Session from 4 p.m. or 4:15 p.m.
to 8 p.m. E.T.).

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

    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest. As noted above, the additional flexibility to be
afforded to the Adviser under the proposed rule change is intended to
enhance the Adviser's ability to meet the Fund's investment objectives.
Further, as noted above, the Exchange represents that trading in the
Shares would continue to be subject to the existing trading
surveillances, administered by both NASDAQ and also FINRA on behalf of
the Exchange, which are designed to detect violations of Exchange rules
and applicable federal securities laws. In addition, as indicated in
the Prior Release, investors would continue to have ready access to
information regarding the Fund's holdings, the Intraday Indicative
Value, the Disclosed Portfolio, and quotation and last sale information
for the Shares. The Adviser represents that the proposed rule change,
as described above, is consistent with the Fund's investment
objectives, and would further assist the Adviser in achieving such
investment objectives.
    For the above reasons, the Exchange believes the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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. The Exchange believes the
proposed rule change will permit the Adviser additional flexibility,
thereby helping the Fund to achieve its investment objectives and
enhancing competition among issues of Managed Fund Shares.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) \14\ thereunder in
that it effects a change that: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2015-044 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2015-044. 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 Nasdaq. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly.
    All submissions should refer to File Number SR-NASDAQ-2015-044 and
should be submitted on or before June 1, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-11272 Filed 5-8-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: July 16, 2008 (Volume 73, Number 137)]
[Rules and Regulations]
[Page 40742-40745]
[DOCID:fr16jy08-12]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2008-0631]
RIN 1625-AA00

Safety Zone; 100th Anniversary Chicago to Mackinac Race
Fireworks, Lake Huron, Mackinac Island, MI

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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

SUMMARY: The Coast Guard is establishing a temporary safety zone on
Lake Huron, Mackinac Island, MI. This zone is intended to restrict
vessels from a portion of Lake Huron during the 100th Anniversary
Chicago to Mackinac Race Fireworks, July 22, 2008 fireworks display.
This temporary safety zone is necessary to protect spectators and
vessels from the hazards associated with fireworks displays.

DATES: This rule is effective from 9 p.m. to 11:59 p.m. on July 22,
2008.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2008-0631 and are available online
at www.regulations.gov. They are also available for inspection or
copying at two locations: the Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays, and the U.S.
Coast Guard Sector Sault Ste. Marie, 337 Water St., Sault Ste. Marie,
MI 49783 between 8 a.m. and 4 p.m., Monday through Friday, except
Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary rule, call LCDR Christopher Friese, Prevention Dept. Chief,
Sector Sault Ste. Marie, 337 Water St., Sault Ste. Marie, MI 49783;
906-635-3220. If you have questions on viewing the docket, call Renee
V. Wright, Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Regulatory Information

    The Coast Guard is issuing this temporary final rule without prior
notice and opportunity to comment pursuant to authority under section
4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when an agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because the permit application was not
received in time to publish a NPRM followed by a final rule before the
effective date.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying this rule would be
contrary to the public interest of ensuring the safety of spectators
and vessels during this event and immediate action is necessary to
prevent possible loss of life or property.

Background and Purpose

    This temporary safety zone is necessary to ensure the safety of
vessels and spectators from hazards associated with a fireworks
display. Based on accidents that have occurred in other Captain of the
Port zones, and the explosive hazards of fireworks, the Captain of the
Port Sault Ste. Marie has determined that fireworks launches proximate
to watercraft pose significant risk to public safety and property. The
likely combination of large numbers of recreation vessels, congested
waterways, darkness punctuated by bright flashes of light, alcohol use,
and debris falling into the water could easily result in serious
injuries or fatalities. Establishing a safety zone to control vessel
movement around the location of the launch platform will help ensure
the safety of persons and property at these events and help minimize
the associated risks.

Discussion of Rule

    A temporary safety zone is necessary to ensure the safety of
spectators and vessels during the setup, loading and launching of a
fireworks display in conjunction with the 100th Anniversary Chicago to
Mackinac Race fireworks display. The fireworks display will occur
between 9 p.m. and 11:59 p.m. on July 22, 2008.
    The safety zone for the fireworks will encompass all waters of Lake
Huron within a 600-foot radius from the fireworks launch site off of
Bindle Point, with its center in position 45[deg]50.57' N,
084[deg]37.54' W [DATUM: NAD 83].
    All persons and vessels shall comply with the instructions of the
Coast Guard Captain of the Port or the designated on-scene
representative. Entry into, transiting, or anchoring within the safety
zone is prohibited unless authorized by the Captain of the Port Sector
Sault Ste. Marie, or his on-scene representative. The Captain of the
Port or his on-scene representative may be contacted via VHF Channel
16.

Regulatory Analyses

    We developed this rule after considering numerous statutes and
executive orders related to rulemaking. Below we summarize our analyses
based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This rule is not a ``significant regulatory action'' under section
3(f) of Executive Order 12866, Regulatory Planning and Review, and does
not require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order.
    This determination is based on the minimal time that vessels will
be restricted from the zone and the zone is an area where the Coast
Guard expects insignificant adverse impact to mariners from the zone's
activation.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will
not have a significant economic impact on a substantial number of small
entities.
    This rule will affect the following entities, some of which may be
small entities: The owners and operators of vessels intending to
transit or anchor in a portion of Lake Huron off Mackinac Island,
Michigan between 9 p.m. and 11:59 p.m. on July 22, 2008.
    This safety zone will not have a significant economic impact on a
substantial number of small entities for the following reasons: This
rule will be in effect for fewer than three hours for one event. Vessel
traffic can safely pass outside the safety zone during the event. In
the event that this temporary safety zone affects shipping, commercial
vessels may request permission from the Captain of the Port Sault Ste.
Marie to transit through the safety zone. The Coast Guard will give
notice to the public via a Broadcast to Mariners that the regulation is
in effect.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offered to assist small
entities in understanding the rule so that they could better evaluate
its effects on them and participate in the rulemaking process. Small
businesses may send comments on the actions of Federal employees who
enforce, or otherwise determine compliance with, Federal regulations to
the Small Business and Agriculture Regulatory Enforcement Ombudsman and
the Regional Small Business Regulatory Fairness Boards. The Ombudsman
evaluates these actions annually and rates each agency's responsiveness
to small business. If you wish to comment on actions by employees of
the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard
will not retaliate against small entities that question or complain
about this rule or any policy or action of the Coast Guard.

Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism.

Unfunded Mandates Reform Act

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

Taking of Private Property

    This rule will not effect a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not concern an
environmental risk to health or risk to safety that may
disproportionately affect children.

Indian Tribal Governments

    The Coast Guard recognizes the treaty rights of Native American
Tribes. Moreover, the Coast Guard is committed to working with Tribal
Governments to implement local policies and to mitigate tribal
concerns. We have determined that these regulations and fishing rights
protection need not be incompatible. We have also determined that this
Rule does not have tribal implications under Executive Order 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
tribes, on the relationship between the Federal Government and Indian
tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian tribes. Nevertheless, Indian Tribes
that have questions concerning the provisions of this Rule or options
for compliance are encourage to contact the point of contact listed
under FOR FURTHER INFORMATION CONTACT.

Energy Effects

    We have analyzed this rule under Executive order 13211, Actions
Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedure; and related management
system practices) that are developed or adopted by voluntary consensus
standards bodies.
    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

Environment

    We have analyzed this rule under Commandant Instruction M16475.lD
and Department of Homeland Security Management Directive 5100.1, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have concluded,
based on the Instruction, that there are no factors in this case that
would limit the use of a categorical exclusion under section 2.B.2 of
the Instruction. Therefore, this rule is categorically excluded, under
figure 2-1, paragraph (34)(g), of the Instruction, from further
environmental documentation. This event establishes a safety zone;
therefore paragraph (34)(g) of the Instruction applies.
    A final environmental analysis check list and categorical exclusion
determination are available in the docket where indicated under
ADDRESSES.

List of Subjects in 33 CFR Part 165

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

0
For the reasons discussed in the preamble, the Coast Guard amends 33
CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

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

    Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50
U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L.
107-295, 116 Stat. 2064; Department of Homeland Security Delegation
No. 0170.1.

0
2. A new temporary Sec.  165.T09-0631 is added as follows:

Sec.  165.T09-0631  Safety Zone; 100th Anniversary Chicago to Mackinac
Race Fireworks, Lake Huron, Mackinac Island, MI.

    (a) Location. The following area is a temporary safety zone: All
waters of Lake Huron within a 600-foot radius from the fireworks launch
site with its center in position 45[deg]50.57' N, 084[deg]37.54' W
[DATUM: NAD 83].
    (b) Effective period. This regulation is effective from 9 p.m. to
11:59 p.m. on July 22, 2008.
    (c) Regulations. (1) In accordance with the general regulations in
section 165.23 of this part, entry into, transiting, or anchoring
within this safety zone is prohibited unless authorized by the Captain
of the Port Sault Ste. Marie, or on-scene representative.
    (2) This safety zone is closed to all vessel traffic, except as may
be permitted by the Captain of the Port Sault Ste. Marie or his on-
scene representative.
    (3) The ``on-scene representative'' of the Captain of the Port is
any Coast Guard commissioned, warrant or petty officer who has been
designated by the Captain of the Port to act on his behalf. The on-
scene representative of the Captain of the Port will be aboard either a
Coast Guard or Coast Guard Auxiliary vessel.
    (4) Vessel operators desiring to enter or operate within the safety
zone shall contact the Captain of the Port Sault Ste. Marie or his on-
scene representative to obtain permission to do so. The Captain of the
Port or his on-scene representative may be contacted via VHF Channel
16. Vessel operators given permission to enter or operate in the safety
zone must comply with all directions given to them by the Captain of
the Port Sault Ste. Marie or his on-scene representative.

    Dated: July 2, 2008.
M.J. Huebschman,
Captain, U.S. Coast Guard, Captain of the Port Sault Ste. Marie.
[FR Doc. E8-16170 Filed 7-15-08; 8:45 am]

BILLING CODE 4910-15-P


[Federal Register Volume 80, Number 177 (Monday, September 14, 2015)]
[Proposed Rules]
[Pages 55061-55063]
[FR Doc No: 2015-22943]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9933-86-OAR]

40 CFR Part 97

Allocations of Cross-State Air Pollution Rule Allowances From New
Unit Set-Asides for 2015 Control Periods

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of data availability (NODA).

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

SUMMARY: The Environmental Protection Agency (EPA) is providing notice
of the availability of preliminary lists of units eligible for
allocations of emission allowances under the Cross-State Air Pollution
Rule (CSAPR). Under the CSAPR federal implementation plans (FIPs),
portions of each covered state's annual emissions budgets for each of
the four CSAPR emissions trading programs are reserved for allocation
to electricity generating units that commenced commercial operation on
or after January 1, 2010 (new units) and certain other units not
otherwise obtaining allowance allocations under the FIPs. The
quantities of allowances allocated to eligible units from each new unit
set-aside (NUSA) under the FIPs are calculated in an annual one- or
two-round allocation process. EPA previously completed the first round
of NUSA allowance allocations for the 2015 control periods for all four
CSAPR trading programs and is now making available preliminary lists of
units eligible for allocations in the second round of the NUSA
allocation process for the CSAPR NOX Ozone Season Trading
Program. EPA has posted a spreadsheet containing the preliminary lists
on EPA's Web site. EPA will consider timely objections to the lists of
eligible units contained in the spreadsheet and will promulgate a
document responding to any such objections no later than November 15,
2015, the deadline for recording the second-round allocations of CSAPR
NOX Ozone Season allowances in sources' Allowance Management
System accounts. This notice of availability may concern CSAPR-affected
units in the following states: Alabama, Arkansas, Florida, Georgia,
Illinois, Indiana, Iowa, Kentucky,

Louisiana, Maryland, Michigan, Mississippi, Missouri, New Jersey, New
York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina,
Tennessee, Texas, Virginia, West Virginia, and Wisconsin.

DATES: Objections to the information referenced in this notice of
availability must be received on or before October 14, 2015.

ADDRESSES: Submit your objections via email to<EMAIL_ADDRESS>
Include ``2015 NUSA allocations'' in the email subject line and include
your name, title, affiliation, address, phone number, and email address
in the body of the email.

FOR FURTHER INFORMATION CONTACT: Questions concerning this action
should be addressed to Robert Miller at<PHONE_NUMBER> or
<EMAIL_ADDRESS>or Kenon Smith at<PHONE_NUMBER> or
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Under the CSAPR FIPs, the mechanisms by
which initial allocations of emission allowances are determined differ
for ``existing'' and ``new'' units. For ``existing'' units--that is,
units commencing commercial operation before January 1, 2010--the
specific amounts of CSAPR FIP allowance allocations for all control
periods have been established through rulemaking. EPA has announced the
availability of spreadsheets showing the CSAPR FIP allowance
allocations to existing units in previous notices of availability.\1\
---------------------------------------------------------------------------

    \1\ The latest spreadsheet of CSAPR FIP allowance allocations to
existing units, updated in 2014 to reflect changes to CSAPR's
implementation schedule but with allocation amounts unchanged since
June 2012, is available at http://www.epa.gov/crossstaterule/actions.html. See Availability of Data on Allocations of Cross-State
Air Pollution Rule Allowances to Existing Electricity Generating
Units, 79 FR 71674 (December 3, 2014).
---------------------------------------------------------------------------

    ``New'' units--that is, units commencing commercial operation on or
after January 1, 2010--as well as certain older units that would not
otherwise obtain FIP allowance allocations do not have pre-established
allowance allocations. Instead, the CSAPR FIPs reserve a portion of
each state's total annual emissions budget for each CSAPR emissions
trading program as a new unit set-aside (NUSA) \2\ and establish an
annual process for allocating NUSA allowances to eligible units. States
with Indian country within their borders have separate Indian country
NUSAs. The annual process for allocating allowances from the NUSAs and
Indian country NUSAs to eligible units is set forth in the CSAPR
regulations at 40 CFR 97.411(b) and 97.412 (NOX Annual
Trading Program), 97.511(b) and 97.512 (NOX Ozone Season
Trading Program), 97.611(b) and 97.612 (SO2 Group 1 Trading
Program), and 97.711(b) and 97.712 (SO2 Group 2 Trading
Program). Each NUSA allowance allocation process involves up to two
rounds of allocations to new units followed by the allocation to
existing units of any allowances not allocated to new units. EPA
provides public notice at certain points in the process.
---------------------------------------------------------------------------

    \2\ The NUSA amounts range from two percent to eight percent of
the respective state budgets. The variation in percentages reflects
differences among states in the quantities of emission allowances
projected to be required by known new units at the time the budgets
were set or amended.
---------------------------------------------------------------------------

    EPA has already completed the first round of allocations of 2015
NUSA allowances for all four CSAPR trading programs, as announced in
notices of availability previously published in the Federal
Register.\3\ The first-round NUSA allocation process was discussed in
those previous notices of availability.
---------------------------------------------------------------------------

    \3\ 80 FR 30988 (June 1, 2015); 80 FR 44882 (July 28, 2015).
---------------------------------------------------------------------------

    In the case of second-round allocations of NUSA allowances, the
annual allocations for the CSAPR NOX Ozone Season Trading
Program occur before the annual allocations for the other three CSAPR
trading programs because of differences in the emissions reporting and
compliance deadlines for the various programs. This notice of
availability concerns the second round of NUSA allowance allocations
for the CSAPR NOX Ozone Season Trading Program for the 2015
control period.\4\
---------------------------------------------------------------------------

    \4\ At this time, EPA is not aware of any unit eligible for a
second-round allocation from any Indian country NUSA.
---------------------------------------------------------------------------

    The units eligible to receive second-round NUSA allocations for the
CSAPR NOX Ozone Season Trading Program are defined in
Sec. Sec.  97.511(a)(1)(iii) and 97.512(a)(9)(i). Generally, eligible
units include any CSAPR-affected unit that commenced commercial
operation between May 1 of the year before the control period in
question and August 31 of the year of the control period in question.
In the case of the 2015 control period, an eligible unit therefore must
have commenced commercial operation between May 1, 2014 and August 31,
2015 (inclusive).
    The total quantity of allowances to be allocated through the 2015
NUSA allowance allocation process for each state and emissions trading
program--in the two rounds of the allocation process combined--is
generally the state's 2015 emissions budget less the sum of (1) the
total of the 2015 CSAPR FIP allowance allocations to existing units and
(2) the amount of the 2015 Indian country NUSA, if any.\5\ The amounts
of CSAPR NOX Ozone Season NUSA allowances may be increased
in certain circumstances as set forth in Sec.  97.512(a)(2).
---------------------------------------------------------------------------

    \5\ The quantities of allowances to be allocated through the
NUSA allowance allocation process may differ slightly from the NUSA
amounts set forth in Sec. Sec.  97.410(a), 97.510(a), 97.610(a), and
97.710(a) because of rounding in the spreadsheet of CSAPR FIP
allowance allocations to existing units.
---------------------------------------------------------------------------

    Second-round NUSA allocations for a given state, trading program,
and control period are made only if the NUSA contains allowances after
completion of the first-round allocations.
    The amounts of second-round CSAPR NOX Ozone Season
allowance allocations to eligible new units from each NUSA are
calculated according to the procedures set forth in Sec.  97.512(a)(9),
(10) and (12). Generally, the procedures call for each eligible unit to
receive a second-round 2015 NUSA allocation equal to the positive
difference, if any, between its emissions during the 2015
NOX ozone season (i.e., May 1, 2015 through September 30,
2015) as reported under 40 CFR part 75 and any first-round allocation
the unit received, unless the total of such allocations to all eligible
units would exceed the amount of allowances in the NUSA, in which case
the allocations are reduced on a pro-rata basis.
    Any allowances remaining in the CSAPR NOX Ozone Season
NUSA for a given state and control period after the second round of
NUSA allocations to new units will be allocated to the existing units
in the state according to the procedures set forth in Sec.
97.512(a)(10) and (12).
    EPA notes that an allocation or lack of allocation of allowances to
a given EGU does not constitute a determination that CSAPR does or does
not apply to the EGU. EPA also notes that allocations are subject to
potential correction if a unit to which NUSA allowances have been
allocated for a given control period is not actually an affected unit
as of the start of that control period.\6\
---------------------------------------------------------------------------

    \6\ See 40 CFR 97.511(c).
---------------------------------------------------------------------------

    The preliminary lists of units eligible for second-round 2015 NUSA
allocations of CSAPR NOX Ozone Season allowances are set
forth in an Excel spreadsheet titled
``CSAPR_NUSA_2015_NOx_OS_2nd_Round_Prelim_Data'' available on EPA's Web
site at http://www.epa.gov/crossstaterule/actions.html. The spreadsheet
contains a separate worksheet for each state covered by that program
showing each unit preliminarily identified as eligible for a second-
round NUSA allocation.

    Each state worksheet also contains a summary showing (1) the
quantity of allowances initially available in that state's 2015 NUSA,
(2) the sum of the 2015 NUSA allowance allocations that were made in
the first-round to new units in that state (if any), and (3) the
quantity of allowances in the 2015 NUSA available for distribution in
second-round allocations to new units (or ultimately for allocation to
existing units).
    Objections should be strictly limited to whether EPA has correctly
identified the new units eligible for second-round 2015 NUSA
allocations of CSAPR NOX Ozone Season allowances according
to the criteria described above and should be emailed to the address
identified in ADDRESSES. Objections must include: (1) Precise
identification of the specific data the commenter believes are
inaccurate, (2) new proposed data upon which the commenter believes EPA
should rely instead, and (3) the reasons why EPA should rely on the
commenter's proposed data and not the data referenced in this notice of
availability.

    Authority: 40 CFR 97.511(b).

Reid P. Harvey,
Director, Clean Air Markets Division.
[FR Doc. 2015-22943 Filed 9-11-15; 8:45 am]
 BILLING CODE 6560-50-P


Comment Info: =================

General Comment:Dear Mr. Zeller:

I am writing as an individual consumer to request an extension of the comment period for the Food and Drug Administration's ("FDA") Proposed Rule Deeming Tobacco Products to be Subject to the Federal Food, Drug, and Cosmetic Act, as amended by the Family Smoking and Prevention and Tobacco Control Act (the "Proposed Rule") published at 79 Fed. Reg. 23,142 and Federal Register No. 2014-09491. On behalf of myself, I am requesting that the comment period for the Proposed Rule be extended by the FDA for an additional 105 days, from its current 75-day period, to 180 days.

The Proposed Rule raises a number of significant issues and questions that are important and relevant to me, as a consumer of products that are proposed for regulation under the Proposed Rule. The Proposed Rule asks about a hundred different questions I might want to respond to. I want to provide my thoughts and comments on many of these issues, but my time to devote to researching and providing thoughtful comments on these important questions is limited. I have already spent many hours researching and dissecting these issues, but they take time. I know that the FDA took many years to even come up with the Proposed Rule, so I do not think it is at all unreasonable to allow the public a mere six months to comment on it. This is our only opportunity, as consumers, to provide our feedback.

I feel very strongly about e-cigarettes as an alternative to combustible cigarettes. My best friend has been using them as an alternative to combustible cigarettes for nearly a year now, and has seen marked improvements to his health and wellbeing. I simply believe that 75 days is not enough time to formulate an appropriate response considering the significance of this issue and that more time is needed to gather research data, both scientific and anecdotal. I realize that the FDA has the authority under 21 CFR 10.40 to extend this time frame and that the FDA has exercised this authority on numerous occasions in the past. I would therefore ask that you do so here, so that all stakeholders have the opportunity to provide their comments on this proposed regulation.

I appreciate your consideration of my request.


[Federal Register Volume 82, Number 193 (Friday, October 6, 2017)]
[Proposed Rules]
[Pages 46716-46717]
[FR Doc No: 2017-21574]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

========================================================================

Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 /
Proposed Rules

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

2 CFR Part 1201

[Docket DOT-OST-2015-0013]
RIN 2105-AE38

Geographic-Based Hiring Preferences in Administering Federal
Awards

AGENCY: Office of the Secretary (OST); U.S. Department of
Transportation (DOT).

ACTION: Notice of withdrawal of proposed rulemaking and related pilot
programs.

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

SUMMARY: The Department of Transportation (the Department) is
withdrawing a Notice of Proposed Rulemaking (NPRM) issued on March 6,
2015, that proposed to amend its regulations implementing the
Government-wide Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards to permit recipients and
subrecipients of certain DOT funds to impose geographic-based hiring
preferences whenever not otherwise prohibited by Federal law. The
Department is withdrawing this NPRM because, after review of all
comments, the Department has determined that promulgating a provision
to allow geographic-based hiring preferences is not practicable for the
efficient and cost-effective delivery of projects. Additionally, this
Notice rescinds two related pilot programs: 1. Innovative Contracting
and 2. FHWA HUD Livability Local Hire Initiative.

DATES: As of October 6, 2017, the NPRM ``Geographic-Based Hiring
Preferences in Administering Federal Awards,'' published on March 6,
2015 (80 FR 12092), is withdrawn. As of October 6, 2017, the
Department's two experimental contracting pilot programs--1. Innovative
Contracting (Local Labor Hire) (80 FR 12557), and 2. the FHWA HUD
Livability Local Hire Initiative (75 FR 36467)--are withdrawn.

ADDRESSES: U.S. Department of Transportation, 1200 New Jersey Ave. SE.,
Washington, DC 20590,<PHONE_NUMBER>.
    Electronic Access: You can view and download related documents and
public comments by going to the Web site http://www.regulations.gov.
Enter the docket number DOT-OST-2015-0013 in the search field.

FOR FURTHER INFORMATION CONTACT: Terence Carlson, Assistant General
Counsel for General Law (OST-C10), U.S. Department of Transportation,
1200 New Jersey Ave. SE., Washington, DC 20590,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    On March 6, 2015, the Department published an NPRM proposing to
amend the Department's regulations at 2 CFR part 1201 to permit
recipients and subrecipients of certain DOT funds to impose geographic-
based hiring preferences whenever not otherwise prohibited by Federal
law. On March 13, 2015, the American Public Transportation Association
(APTA) filed a comment requesting that the Department extend the
comment period for the NPRM by 30 days to May 6, 2015. The Department
granted APTA's request on April 8, 2015 (80 FR 18784).
    Recipients and subrecipients at the local government level have
local hiring provisions that they apply to procurements that do not
involve Federal funding. However, the Department's regulations at 2 CFR
part 1201, which adopted the Office of Management and Budget's (OMB)
revised Government-wide Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal awards to non-Federal
entities at 2 CFR part 200 (Common Rule), prohibit the use of in-State
or local geographic-based preferences in the evaluation of bids or
proposals except where Federal statute mandates or encourages the use
of such preferences. This prohibition extends to the use of geographic-
based hiring preferences in contracts that are awarded by recipients
and subrecipients with Federal financial assistance since such
preferences could result in a competitive advantage for contractors
based in the targeted hiring area.
    Under the NPRM, the Department proposed to amend Part 1201 by
promulgating a provision that would have deviated from the OMB guidance
by making clear that geographic-based hiring preferences might be used
in certain DOT grant programs. However, the proposed deviation would
have only applied to the extent that such geographic-based hiring
preferences would not have otherwise been prohibited by Federal statute
or regulation.
    Approximately 181 comments were filed in response to the NPRM.
These comments were submitted by approximately 23 contractors, 22
contractor trade groups, 11 rolling stock manufacturers, 4 unions, 14
government agencies, 32 advocacy groups, 70 individuals, and 5 Federal
and State elected officials (U.S. Senator Charles E. Schumer, U.S.
Representative Tom Reed, Georgia State Senator Nan Orrock, California
State Senator Connie M. Leyva, and California State Assembly Member
Cheryl R. Brown). All of the construction and rolling stock industry
comments were opposed to the adoption of the proposed rule, while the
advocacy groups and unions all were in favor. The individual commenters
were split. States and municipalities were mostly in favor of the
proposed rule. However, the California Department of Transportation
(Caltrans), Regional Transportation District in Denver (RTD-Denver),
Foothill Transit, and the Capital Metropolitan Transportation Authority
expressed concerns with the implementation of the rule. Generally,
commenters agreed that transportation investments and policies can
improve access to jobs, education, and goods movement, while providing
construction and operations jobs. However, many commenters questioned
the assertion that local and geographic-based hiring preferences led to
such economic benefits.

Discussion of Comments

    While there were comments regarding the benefits of transportation
investments, commenters opposed to the Department's proposed amendments
to Part 1201 expressed concerns about the unintended consequences of
the NPRM, including, for example, impacts on safety, competitive
bidding, the ability to maintain a well-trained workforce, and
increased project costs.

Some commenters supported the proposed amendments because, among other
reasons, local residents would benefit from such investments. Other
commenters explained that the NPRM did not go far enough and should
have included other types of preferences, in addition to geographic-
based.
    The Department's proposed NPRM did not make a distinction by
project type (e.g., transit vs. maritime project). Many commenters,
especially in the transit arena, expressed strong opposition to the
application of the NPRM to rolling stock procurements because of the
potential effect on existing manufacturing plants and the capital and
personnel investments already made in specific parts of the country.

Reason for Withdrawal

    The Department operates two experimental contracting pilot programs
under FHWA and FTA's existing authorities: (i) Innovative Contracting
(Local Labor Hire) (80 FR 12257) and (ii) FHWA HUD Livability Local
Hire Initiative (75 FR 36467). The Local Labor Hire pilot is conducted
under 23 U.S.C. 502 (i.e., FHWA's Special Experimental Project No. 14
(SEP-14)) and 49 U.S.C. 5312, 5314 and 5325, and the FHWA HUD
initiative is conducted under SEP-14. The Department has used these
research authorities to advance non-traditional contracting practices
for contracts awarded by FTA and FHWA.
    Under SEP-14 and 49 U.S.C. 5312, 5314 and 5325, the Department has
the flexibility to experiment with innovative approaches to highway and
transit contracting. However, the Department is discontinuing these two
pilot programs because of minimal interest from intended participants
and the difficulty in evaluating cost effectiveness based upon
objective criteria.
    For additional background, 23 U.S.C. 112 requires a state
transportation department to award contracts using federal highway
funds by ``competitive bidding, unless the State transportation
department demonstrates . . . that some other method is more cost
effective.'' 23 U.S.C. 112(b)(1) (2006). For a bidding process to be
``competitive,'' the state transportation department must award
contracts for projects ``only on the basis of the lowest responsive bid
submitted by a bidder meeting established criteria of responsibility.''
Id. section 112(b)(1). For example, a 1986 opinion from the Office of
Legal Counsel (OLC) at the Department of Justice concluded that section
112 obligated the Secretary of Transportation to withhold federal
funding for highway construction contracts that were subject to a New
York City law imposing disadvantages on a class of responsible bidders,
where the city failed to demonstrate that its departure from
competitive bidding requirements was justified by considerations of
cost effectiveness. See Compatibility of New York City Local Law 19
with Federal Highway Act Competitive Bidding Requirements, 10 Op.
O.L.C. 101 (1986) (``Competitive Bidding Requirements''). Since that
1986 opinion, FHWA had taken the position that state or local bidding
specifications or contract requirements that limit the pool of
potential bidders violate section 112's competition requirement unless
they directly relate to the bidder's performance of the necessary work
in a competent and responsible manner.
    In 2013, OLC opined that a state or local requirement that has only
an incidental effect on the pool of potential bidders or that imposes
reasonable requirements related to the performance of the necessary
work would not unduly limit competition. However, a requirement that
has more than an incidental effect on the pool of potential bidders and
does not relate to the work's performance would unduly limit
competition unless it promotes the efficient and effective use of
federal funds. OLC stated that generally speaking, state or local
government requirements that eliminate or disadvantage a class of
potential responsible bidders (and thus have a non-trivial effect on
the pool of such bidders) to advance objectives unrelated to the
efficient use of federal funds or the integrity of the bidding process
(or to the performance of the necessary work in a competent and
responsible manner) are likely to unduly impede competition in
contravention of the substantive component of section 112's competitive
bidding requirement. OLC further reaffirmed the view expressed in its
1986 opinion that ``the efficient use of federal funds is the
touchstone by which the legality of state procurement rules for
federally funded highway projects is to be tested,'' Competitive
Bidding Requirements, 10 Op. O.L.C. at 105. In 2013, OLC did not
understand section 112's competitive bidding requirement to compel FHWA
to reject every state or local bidding specification or contract
requirement that may have the effect of reducing the number of
potential bidders for a particular contract.
    The stated purpose of this NPRM was to permit recipients and
subrecipients of certain DOT grant program funds to impose geographic-
based hiring preferences whenever not otherwise prohibited by Federal
law. DOT agrees that the efficient use of federal funds is the
touchstone by which the legality of state procurement rules, including
any proposed geographic-based hiring preferences, for federally funded
projects is to be tested. Here, in light of the responses to the NPRM,
the lack of data on whether specific local geographic preferences would
have an incidental effect on competition, the long-standing Federal
government prohibition in the Common Rule on the use of in-State or
local geographic-based preferences, the demonstrated minimal interest
from intended participants under the two experimental programs, and the
inability to evaluate cost-effectiveness based upon objective criteria
under the two experimental programs, the Department has determined that
promulgating a regulation that would have deviated from the OMB
guidance in the Common Rule, by allowing the use of geographic-based
hiring preferences in some of the Department's grant programs, is not
practicable for the efficient and cost-effective delivery of projects.
The comments received did not include any data that demonstrates that
the claimed benefits of the proposed rule justify the costs. The
Department has also determined that an additional request for public
comment based on the proposed NPRM would not provide the information
needed to accomplish the stated purpose.

     Issued in Washington, DC, on October 2, 2017.
Elaine L. Chao,
Secretary of Transportation.
[FR Doc. 2017-21574 Filed 10-5-17; 8:45 am]
 BILLING CODE 4910-9X-P