[Federal Register Volume 81, Number 80 (Tuesday, April 26, 2016)]
[Notices]
[Pages 24668-24674]
[FR Doc No: 2016-09597]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77661; File No. SR-NASDAQ-2016-055]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Amend Options Pricing at Chapter XV, Section 2

April 20, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 13, 2016, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Chapter XV, entitled ``Options
Pricing,'' at Section 2, which governs pricing for Exchange members
using the NASDAQ Options Market (``NOM''), the Exchange's facility for
executing and routing standardized equity and index options.\3\ The
Exchange proposes to amend certain Penny Pilot Options \4\ and Non-
Penny Pilot Options pricing.
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    \3\ References in this proposal to Chapter and Series refer to
NOM rules, unless otherwise indicated.
    \4\ The Penny Pilot was established in March 2008 and was last
extended in 2015. See Securities Exchange Act Release Nos. 57579
(March 28, 2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026)
(notice of filing and immediate effectiveness establishing Penny
Pilot); and 75283 (June 24, 2015), 80 FR 37347 (June 30, 2015) (SR-
NASDAQ-2015-063) (notice of filing and immediate effectiveness
extending the Penny Pilot through June 30, 2016). All Penny Pilot
Options listed on the Exchange can be found at http://www.nasdaqtrader.com/Micro.aspx?id=phlx.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    The Exchange proposes certain amendments to the NOM transaction
fees set forth at Chapter XV, Section 2, for executing and routing
standardized equity and index Penny Pilot Options and Non-Penny Pilot
Options. Specifically, the Exchange proposes to (a) Modify the Non-
Penny Pilot Options fees and rebates schedule (per executed contract)
to make Customer \5\ and Professional \6\ Fee for Adding Liquidity, Fee
for Removing Liquidity, and Rebate to Add Liquidity the same; (b)
modify Tier 5 and Tier 8 that allow Customer and Professional to earn a
Penny Pilot Options Rebate to Add Liquidity; (c) modify note ``c'' and
note ``d'' to indicate that they have applicability to Customer and/or
Professional and to increase the amount of additional rebate from $0.03
to $0.05, and modify note ``c'' to indicate an alternative requirement
for earning a rebate; and (d) modify which eligible contracts qualify
for the Market Access and Routing Subsidy (``MARS'') payment. The
proposed changes are discussed below.
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    \5\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at The Options Clearing Corporation (``OCC'') which is not for
the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Chapter I, Section
1(a)(48)).
    \6\ The term ``Professional'' or (``P'') means any person or
entity that (i) is not a broker or dealer in securities, and (ii)
places more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s) pursuant
to Chapter I, Section 1(a)(48). All Professional orders shall be
appropriately marked by Participants.
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    Today, the Exchange offers fees and rebates for Non-Penny Options
to Customer, Professional, Firm,\7\ Non-NOM Market Maker,\8\ NOM Market
Maker,\9\ and/or Broker-Dealer \10\; and also offers fees and rebates
for Penny Pilot Options. The current fees and rebates in Non-Penny-
Pilot Options are as follows: the Fee for Adding Liquidity for Customer
is N/A (not fee liable) and for Professional is $0.45; the Fee for
Removing Liquidity for Customer is $0.85 and for Professional is $1.10;
and the Rebate to Add Liquidity for Customer is $0.80 \11\ and for
Professional is N/A (no rebate).
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    \7\ The term ``Firm'' or (``F'') applies to any transaction that
is identified by a Participant for clearing in the Firm range at
OCC.
    \8\ The term ``Non-NOM Market Maker'' or (``O'') is a registered
market maker on another options exchange that is not a NOM Market
Maker. A Non-NOM Market Maker must append the proper Non-NOM Market
Maker designation to orders routed to NOM.
    \9\ ``NOM Market Maker'' means a Participant that has registered
as a Market Maker on NOM pursuant to Chapter VII, Section 2, and
must also remain in good standing pursuant to Chapter VII, Section
4. ``Participant'' means a firm, or organization that is registered
with the Exchange pursuant to Chapter II of these Rules for purposes
of participating in options trading on NOM as a ``Nasdaq Options
Order Entry Firm'' or ``Nasdaq Options Market Maker'', see Chapter
I, Section (a)(40).
    \10\ The term ``Broker-Dealer'' or (``B'') applies to any
transaction which is not subject to any of the other transaction
fees applicable within a particular category.
    \11\ Note ``1'', which is applicable to Rebate to Add Liquidity
for Customer, states: \1\ A Participant that qualifies for Customer
or Professional Penny Pilot Options Rebate to Add Liquidity Tiers 2,
3, 4, 5 or 6 in a month will receive an additional $0.10 per
contract Non-Penny Pilot Options Rebate to Add Liquidity for each
transaction which adds liquidity in Non-Penny Pilot Options in that
month. A Participant that qualifies for Customer or Professional
Penny Pilot Options Rebate to Add Liquidity Tiers 7 or 8 in a month
will receive an additional $0.20 per contract Non-Penny Pilot
Options Rebate to Add Liquidity for each transaction which adds
liquidity in Non-Penny Pilot Options in that month.
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    Today, the Exchange offers a Penny Pilot Options Rebate to Add
Liquidity to Customers and Professionals that add liquidity per Tier 1
through Tier 8. These rebates range from $0.20 for Tier 1 to $ 0.48 for
Tier 8 per contract,\12\ and generally allow Participants \13\ to earn
a greater rebate by bringing more liquidity to the Exchange as
specified in Tier 1 to Tier 8. Today, Tier 5 rebates are offered where
Participant adds Customer, Professional, Firm, Non-NOM Market Maker,
and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny
Pilot Options above 0.40% to 0.75% of total industry customer equity
and exchange traded fund (``ETF'') option average daily volume
(``ADV'') contracts per day in a month. Or, in the alternative,
Participant adds (1) Customer and/or Professional liquidity in Penny
Pilot Options and/or

Non-Penny Pilot Options of 25,000 or more contracts per day in a month,
(2) the Participant has certified for the Investor Support Program
(``ISP'') set forth in NASDAQ Rule 7014, and (3) the Participant
executed at least one order on NASDAQ's equity market. Today, Tier 8
rebates are offered where Participant adds Customer, Professional,
Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny
Pilot Options and/or Non-Penny Pilot Options above 0.75% or more of
total industry customer equity and ETF option ADV contracts per day in
a month or Participant adds (1) Customer and/or Professional liquidity
in Penny Pilot Options and/or Non-Penny Pilot Options of 30,000 or more
contracts per day in a month and (2) the Participant has certified for
the ISP set forth in NASDAQ Rule 7014. No change is proposed to the
current Tier 5 and Tier 8 rebates; these Rebates to Add Liquidity
remain at $0.45 and $0.48, respectively.\14\ Rather, as discussed
below, the Exchange proposes to delete reference to the ISP, which is
being deleted.\15\
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    \12\ See Chapter XV, Section 2(1).
    \13\ ``Participant'' (also known as ``NOM Participant'')
includes Options Market Makers and Options Order Entry Firms that
are registered to enter orders into the System.
    \14\ No change is proposed to the rebates offered by achieving
liquidity requirements set by the other Tiers (1, 2, 3, 4, 6, 7). As
such, other than to note that these tiers continue to offer
progressively larger rebates, these tiers are not discussed in the
proposal.
    \15\ See NASDAQ-2016-051 (filed as immediately effective
proposal deleting ISP). For the proposal to initiate ISP, see also
Securities Exchange Act Release No. 63270 (November 8, 2010), 75 FR
69489 (November 12, 2010) (NASDAQ-2010-141) (notice of filing and
immediate effectiveness).
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    Today, notes ``a'' through ``d'' apply to certain rebate Tiers.
Note ``a'', which references ISP,\16\ is currently applicable to Tier 5
and Tier 8; the Exchange proposes to delete note ``a'' as the ISP
references are no longer needed. Note ``c'', which indicates what
liquidity Participants need to bring to the Exchange in order to earn
an additional rebate amount, is applicable to Tier 8; the Exchange
proposes to modify note ``c'' to change the available liquidity-
enhancing ways to earn addition rebates. The Exchange proposes to make
note ``d'' as amended, which discusses additional rebate opportunity
through MARS liquidity, applicable to Professionals.\17\
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    \16\ Note ``a'' states: \a\ For purposes of Tiers 5 and 8, the
Exchange will allow a NOM Participant to qualify for the rebate if a
NASDAQ member has certified for the Investor Support Program and
executed at least one order on NASDAQ's equity market.
    \17\ Note ``d'' will continue to be applicable to Customer
Rebate to Add Liquidity in Penny Pilot Options.
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    Today, for the purpose of qualifying for MARS payment, eligible
contracts may include Firm, Non-NOM Market Maker, Broker-Dealer, Joint
Back Office or ``JBO'' or Professional equity option orders that add
liquidity and are electronically delivered and executed. In light of
the harmonization of Customer and Professional, described below, the
Exchange is removing reference to Professional.

Change 1--Non-Penny Pilot Options: Customer and Professional, MARS
Eligible Contracts

    The Exchange proposes to modify the Non-Penny Pilot Options fees
and rebates schedule (per executed contract) to harmonize the Customer
and Professional Fee for Adding Liquidity, Fee for Removing Liquidity,
and Rebate to Add Liquidity. The Exchange proposes to harmonize or make
the relevant fees and rebates for Customer and Professional the same:
For Fee for Adding Liquidity Customer and Professional will each not
pay anything (currently, Professional pays $0.45); for Fee for Removing
Liquidity Customer and Professional will each pay $0.85 (currently,
Professional pays $1.10); and for Rebate to Add Liquidity Customer and
Professional will each pay [sic] $0.80 (currently, Professional is not
subject to a rebate for Non-Penny Pilot Options). The Exchange believes
that this incentivizes Customers and Professional to continue to
transact Non-Penny Pilot Options on the Exchange.
    Following on the harmonization of Customer and Professional in fees
and rebates, the Exchange proposes to delete Professional from the
types of MARS contracts that qualify for MARS payment.\18\ This is
because at this time Customer equity option orders are not included in
the list of contracts that are eligible for MARS payment.\19\ Removal
of Professional thus harmonizes the treatment of Customer and
Professional vis a vis MARS.\20\
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    \18\ To qualify for MARS, the Participant's routing system
(``System'') would be required to: (1) Enable the electronic routing
of orders to all of the U.S. options exchanges, including NOM; (2)
provide current consolidated market data from the U.S. options
exchanges; and (3) be capable of interfacing with NOM's API to
access current NOM match engine functionality. Further, the
Participant's System would also need to cause NOM to be the one of
the top three default destination exchanges for individually
executed marketable orders if NOM is at the national best bid or
offer (``NBBO''), regardless of size or time, but allow any user to
manually override NOM as a default destination on an order-by-order
basis. Any NOM Participant would be permitted to avail itself of
this arrangement, provided that its order routing functionality
incorporates the features described above and satisfies NOM that it
appears to be robust and reliable. The Participant remains solely
responsible for implementing and operating its System. Chapter XV,
Section 2(6).
    \19\ See Chapter XV, Section 2(6).
    \20\ The Exchange notes that Customer and Professional fees and
rebates applicable to Penny Pilot Options are already harmonized.
The proposed change will treat Customer and Professional similarly
for Penny Pilot Options as well as Non-Penny Pilot Options.
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Change 2--Penny Pilot Options: Modify Tier 5 and Tier 8

    The Exchange proposes to modify Tier 5 and Tier 8 that allow
Customer and Professional to earn a Penny Pilot Options Rebate to Add
Liquidity.
    The Exchange proposes to amend Tier 5 of the Rebate to Add
Liquidity by deleting the second volume alternative for this Tier,
which requires, among other things, that the Participant has certified
for the ISP set forth in NASDAQ Rule 7014. The Exchange proposes to
amend Tier 8 of the Penny Pilot Options Rebate to Add Liquidity by
updating a volume alternative which also requires that Participant has
certified for the ISP. In lieu of the ISP reference in Tier 8, the
Exchange proposes to state that Participant may provide liquidity in
all securities through one or more of its NASDAQ Market Center
``MPIDs'' \21\ that represent 1.00% or more of Consolidated Volume \22\
in a month or qualifies [sic] for ``MARS''. MARS is the Market Access
and Routing Subsidy, which offers rebates to certain NOM Participants
that have routed the requisite number of contracts that were executed
on NOM.\23\
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    \21\ ``MPID'' is the market participant identifier, which is a
unique four-letter mnemonic assigned to each Participant in the
Nasdaq Market Center. See NASDAQ Rule 4701(i).
    \22\ ``Consolidated volume'' means the total consolidated volume
reported to all consolidated transaction reporting plans by all
exchanges and trade reporting facilities, excluding executed orders
with a size of less than one round lot.
    \23\ See Chapter XV, Section 2(6).
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    Commensurate with deletion in Tier 5 and Tier 8 of reference to
ISP, the Exchange also proposes to delete applicable note ``a''. This
note applies only to Tier 5 and Tier 8 and, similarly, refers to ISP.
As such, note ``a'' is no longer needed and is being deleted.
    The Exchange believes that deleting reference to ISP in Tier 5 and
Tier 8 Customer and Professional Penny Pilot Option Rebate to Add
Liquidity and updating how one can qualify for rebates will continue to
incentivize market participants to send order flow to NOM.

Change 3--Penny Pilot Options: Modify Note ``c'' and Note ``d''

    The Exchange proposes to modify note ``c'' and note ``d'' to
indicate that they apply to Customer and Professional

and to increase the amount of additional rebate from $0.03 to $0.05.
The Exchange also proposes to modify note ``c'' to indicate additional
ways to earn additional rebate.
    The Exchange proposes language in note ``d'' to ensure that the
Penny Pilot Options [sic] to Add Liquidity is for Professional as well
as for Customer. Note ``d'' states, as proposed, that NOM Participants
that qualify for MARS Payment Tiers 1, 2, or 3 will receive an
additional $0.05 per contract Penny Pilot Options Customer and/or
Professional Rebate to Add Liquidity for each transaction which adds
liquidity in Penny Pilot Options in that month, in addition to
qualifying Penny Pilot Options Customer and/or Professional Rebate to
Add Liquidity Tiers 1-8.\24\ To further incentivize Customers and
Professionals to qualify for MARS Payment Tiers and to bring flow to
the Exchange, in note ``d'' the Exchange proposes that for each
transaction which adds liquidity in Penny Pilot Options in that month
instead of receiving an additional $0.03 per contract one can receive
an ``additional $0.05 per contract''; and that the Rebate to Add
Liquidity is for ``Customer and/or Professional''.
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    \24\ Note ``d'' indicates that NOM Participants that qualify for
a note ``c'' incentive will receive the greater of the note ``c'' or
note ``d'' incentive.
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    Note ``c'' gives three different ways for Participants that add
Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer
liquidity in Penny Pilot Options and/or Non- Penny Pilot Options to
receive additional Penny Pilot Options Customer and/or Professional
Rebate to Add Liquidity. Subsection (1), (2), and (3) in note ``c'', as
proposed, offers additional rebates that are $0.02, $0.05, and $0.05
(changed from $0.03) per contract, respectively. To incentivize
Customers and Professionals to qualify for bringing flow to the
Exchange, in note ``c'' the Exchange proposes, similarly to the rebate
and fees change, that each of the subsections is applicable to both
``Customer and/or Professional''. To further incentivize bringing flow
to the Exchange, the Exchange enhances the means in subsection (3) \25\
to earn additional rebates, and states Participants that: (a) Add
Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above
0.80% of total industry customer equity and ETF option ADV contracts
per day in a month, (b) add Customer, Professional, Firm, Non-NOM
Market Maker and/or Broker-Dealer liquidity in Non-Penny Pilot Options
above 0.15% of total industry customer equity and ETF option ADV
contracts per day in a month, and (c) execute greater than 0.04% of
Consolidated Volume (``CV'') \26\ via Market-on-Close/Limit-on-Close
(``MOC/LOC'') \27\ volume within the NASDAQ Stock Market Closing Cross
in a month will receive an additional $0.05 per contract Penny Pilot
Options Customer and/or Professional Rebate to Add Liquidity for each
transaction which adds liquidity in Penny Pilot Options in a month. The
Exchange believes that this proposed change, which includes a new
methodology to earn rebates through CV via MOC/LOC, will incentivize
bringing additional flow to the Exchange.
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    \25\ Current subsection (3) requires that a Participant: (a)
[sic] 0.75% of total industry customer equity and ETF option ADV
contracts per day in a month and (b) has added liquidity in all
securities through one or more of its Nasdaq Market Center MPIDs
that represent 1.10% or more of Consolidated Volume in a month.
    \26\ Consolidated Volume means the total consolidated volume
reported to all consolidated transaction reporting plans by all
exchanges and trade reporting facilities during a month in equity
securities, excluding executed orders with a size of less than one
round lot. See Chapter XV, Section 2(1), note ``c''.
    \27\ MOC/LOC, as set forth in NASDAQ Rule 4754, represents the
volume in the NASDAQ Stock Market Closing Cross that allows market
participants to contribute order flow that will result in executions
at the official closing price for the day in the NASDAQ listed
security. An ``MOC Order'' is an order type entered without a price
that may be executed only during the NASDAQ Closing Cross, which
refers to the equity closing cross. An ``LOC Order'' is an order
type entered with a price that may be executed only in the NASDAQ
Closing Cross.
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    As proposed, in Chapter XV, Section 2, fees and rebates in Non-
Penny Pilot Options (per executed contract), including Customer and
Professional; and MARS Eligible Contracts, will read as follows:

                                                                    Fees and Rebates
                                                                 [Per executed contract]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Non-NOM market    NOM market
                                                             Customer      Professional        Firm            maker           maker       Broker-dealer
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Non-Penny Pilot Options:
    Fee for Adding Liquidity............................             N/A             N/A           $0.45           $0.45           $0.35           $0.45
    Fee for Removing Liquidity..........................            0.85            0.85            1.10            1.10        \4\ 1.10            1.10
    Rebate to Add Liquidity.............................        \1\ 0.80        \1\ 0.80             N/A             N/A             N/A             N/A
MARS Eligible Contracts
                                                         -----------------------------------------------------------------------------------------------
MARS Payment would be made to NOM Participants that have System Eligibility and have routed the requisite number of Eligible Contracts daily in a month,
 which were executed on NOM. For the purpose of qualifying for the MARS Payment, Eligible Contracts may include Firm, Non-NOM Market Maker, Broker-
 Dealer, or Joint Back Office or ``JBO'' equity option orders that add liquidity and are electronically delivered and executed. Eligible Contracts do
 not include Mini Option orders.........................................................................................................................
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    As proposed, in Chapter XV, Section 2 Tier 5 and Tier 8 in the
Rebate to Add Liquidity will read as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                Rebate to add
              Monthly                                           Volume                               liquidity
----------------------------------------------------------------------------------------------------------------
Tier 5.............................  Participant adds Customer, Professional, Firm, Non-NOM                $0.45
                                      Market Maker and/or Broker-Dealer liquidity in Penny Pilot
                                      Options and/or Non-Penny Pilot Options above 0.40% to
                                      0.75% of total industry customer equity and ETF option ADV
                                      contracts per day in a month.

Tier 8.............................  Participant adds Customer, Professional, Firm, Non-NOM            \c\ $0.48
                                      Market Maker and/or Broker-Dealer liquidity in Penny Pilot
                                      Options and/or Non-Penny Pilot Options above 0.75% or more
                                      of total industry customer equity and ETF option ADV
                                      contracts per day in a month, or Participant adds: (1)
                                      Customer and/or Professional liquidity in Penny Pilot
                                      Options and/or Non-Penny Pilot Options of 30,000 or more
                                      contracts per day in a month, and (2) has added liquidity
                                      in all securities through one or more of its Nasdaq Market
                                      Center MPIDs that represent 1.00% or more of Consolidated
                                      Volume in a month or qualifies for MARS (defined below).
----------------------------------------------------------------------------------------------------------------

    As proposed, in Chapter XV, Section 2 note ``c'' and note ``d''
will read as follows:

    \c\ Participants that: (1) Add Customer, Professional, Firm,
Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot
Options and/or Non- Penny Pilot Options of 1.15% or more of total
industry customer equity and ETF option ADV contracts per day in a
month will receive an additional $0.02 per contract Penny Pilot
Options Customer and/or Professional Rebate to Add Liquidity for
each transaction which adds liquidity in Penny Pilot Options in that
month; or (2) add Customer, Professional, Firm, Non-NOM Market Maker
and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-
Penny Pilot Options of 1.30% or more of total industry customer
equity and ETF option ADV contracts per day in a month will receive
an additional $0.05 per contract Penny Pilot Options Customer and/or
Professional Rebate to Add Liquidity for each transaction which adds
liquidity in Penny Pilot Options in that month; or (3) (a) add
Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-
Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot
Options above 0.80% of total industry customer equity and ETF option
ADV contracts per day in a month, (b) add Customer, Professional,
Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Non-
Penny Pilot Options above 0.15% of total industry customer equity
and ETF option ADV contracts per day in a month, and (c) execute
greater than 0.04% of Consolidated Volume (``CV'') via Market-on-
Close/Limit-on-Close (``MOC/LOC'') volume within the NASDAQ Stock
Market Closing Cross in a month will receive an additional $0.05 per
contract Penny Pilot Options Customer and/or Professional Rebate to
Add Liquidity for each transaction which adds liquidity in Penny
Pilot Options in a month. Consolidated Volume shall mean the total
consolidated volume reported to all consolidated transaction
reporting plans by all exchanges and trade reporting facilities
during a month in equity securities, excluding executed orders with
a size of less than one round lot. For purposes of calculating
Consolidated Volume and the extent of an equity member's trading
activity, expressed as a percentage of or ratio to Consolidated
Volume, the date of the annual reconstitution of the Russell
Investments Indexes shall be excluded from both total Consolidated
Volume and the member's trading activity.
    \d\ NOM Participants that qualify for MARS Payment Tiers 1, 2 or
3 will receive an additional $0.05 per contract Penny Pilot Options
Customer and/or Professional Rebate to Add Liquidity for each
transaction which adds liquidity in Penny Pilot Options in that
month, in addition to qualifying Penny Pilot Options Customer and/or
Professional Rebate to Add Liquidity Tiers 1-8. NOM Participants
that qualify for a note ``c'' incentive will receive the greater of
the note ``c'' or note ``d'' incentive.

    In terms of housekeeping changes, the Exchange is correcting a
typographical error in Non-Penny Options fees and rebates by adding
``N/A'' to make it even clearer that Broker-Dealer does not get a
Rebate to Add Liquidity (in fact, this section of Rebate to Add
Liquidity does not currently indicate any rebate to Broker-Dealer).
2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act,\28\ in general,
and furthers the objectives of Section 6(b)(4) and (b)(5) of the
Act,\29\ in particular, in that it provides for the equitable
allocation of reasonable dues, fees and other charges among members and
issuers and other persons using any facility or system which The
Exchange operates or controls, and is not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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    \28\ 15 U.S.C. 78f(b).
    \29\ 15 U.S.C. 78f(b)(4), (5).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \30\ Likewise, in
NetCoalition v. Securities and Exchange Commission \31\
(``NetCoalition'') the DC Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\32\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \33\
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    \30\ Securities Exchange Act Release No. 51808 at 37499
(``Regulation NMS Adopting Release'' at Securities Exchange [sic]
Release No. 34-51808 (June 29, 2005), 70 FR 37496 (File No. S7-10-
04)).
    \31\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \32\ See id. at 534-535.
    \33\ See id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers' . . . .'' \34\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes that these views apply with equal force to the options
markets.
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    \34\ Id. at 539 (quoting Securities Exchange Commission at [sic]
Release No. 59039 (December 2, 2008), 73 FR 74770 (December 9, 2008)
(SR-NYSEArca-2006-21) at 73 FR at 74782-74783).
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    The Exchange believes that the proposed change is reasonable,
equitable and not unfairly discriminatory for the following reasons.

Change 1--Non-Penny Pilot Options: Customer and Professional, MARS
Eligible Contracts

    In Change 1, the Exchange proposes to modify the Non-Penny Pilot
Options fees and rebates schedule (per executed contract) to harmonize
Customer and Professional Fee for Adding Liquidity, Fee for Removing
Liquidity, and Rebate to Add Liquidity. In particular, the Exchange
proposes to harmonize or make the relevant fees and rebates for
Customer and Professional the same for Fee for Adding Liquidity, Fee
for Removing Liquidity, and Rebate to Add Liquidity. The Exchange
believes that

this incentivizes Customers and Professional to continue to transact
Non-Penny Pilot Options on the Exchange.
    Similar to the harmonization of Customer and Professional in fees
and rebates, the Exchange proposes to delete Professional from the
types of MARS contracts that quality for MARS payment. This is because
at this time Customer equity option orders are not included in the list
of contracts that are eligible for MARS payment.\35\ Removal of
Professional thus harmonizes the treatment of Customer and Professional
vis a vis MARS.
---------------------------------------------------------------------------

    \35\ See Chapter XV, Section 2(6).
---------------------------------------------------------------------------

    The proposed rule change is reasonable because it continues to
encourage market participant behavior through the fees and rebates
system, which is an accepted methodology among options exchanges.\36\
It is reasonable to encourage Customer and Professional by putting them
in the same fees and rebates position, as discussed above, in regards
to Non-Penny Pilot Options.\37\ It is also reasonable to carry the
Customer and Professional harmonization through to the MARS
eligibility, so that Customer and Professional are treated the same.
---------------------------------------------------------------------------

    \36\ See, e.g., fee and rebate schedules of other options
exchanges, including, but not limited to, NYSE ARCA (``ARCA'')
https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf, and BATS BZX OPTIONS (``BATS'')
http://www.batsoptions.com/support/fee_schedule/bzx/. See also
NASDAQ BX Options Market (``BX Options''), NASDAQ PHLX LLC
(``Phlx''), and Chicago Board Options Exchange (``CBOE'').
    \37\ The Exchange notes that Customer and Professional fees and
rebates applicable to Penny Pilot Options are already harmonized.
The proposed change will treat Customer and Professional similarly
for Penny Pilot Options as well as Non-Penny Pilot Options.
---------------------------------------------------------------------------

    The Exchange believes it is equitable and not unfairly
discriminatory to make the noted harmonization changes regarding
Customer and Professional, who bring liquidity to the Exchange. Such
liquidity attracts other market participants. Customer and Professional
liquidity benefits all market participants by providing more trading
opportunities, which attract Market Makers.\38\ An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. Also, the Exchange believes that
it is equitable and not unfairly discriminatory to make MARS
eligibility the same for Customer and Professional. The Exchange
believes that the proposed change is equitable and not unfairly
discriminatory because it will be applied uniformly to all Customers
and Professionals. The proposed fees and rebates and MARS change
enhances the competitiveness of the Exchange by continuing to
incentivize bringing flow to the Exchange.
---------------------------------------------------------------------------

    \38\ Market Makers on the Exchange are valuable market
participants that provide liquidity in the marketplace. They also
have obligations to the market and regulatory requirements, which
normally do not apply to other market participants.
---------------------------------------------------------------------------

Change 2--Penny Pilot Options: Modify Tier 5 and Tier 8

    In Change 2, the Exchange's proposal to delete reference to a
program that is being deleted, ISP, in Tiers 5 and 8 of the Rebate to
Add Liquidity and to substitute Consolidated Volume or MARS volume in
Tier 8, and to delete note ``a'' that refers to ISP, is reasonable
because NOM Participants will continue to be incentivized to send more
order flow to NOM. The Exchange believes that deletion or substitution
of reference to ISP is reasonable because the ISP program is being
deleted and the reference to ISP in the Payment Schedule as discussed
is no longer valid.
    The proposed deletion of the ISP reference is reasonable because
the program is being retired.\39\ Substituting ISP reference in Tier 8
with reference to Consolidated Volume or MARS volume is reasonable
because it is designed to attract volume to the Exchange. With this
proposal, in order to qualify for the highest Tier 8 rebate ($0.48), a
NOM Participant must have added Customer, Professional, Firm, Non-NOM
Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/
or Non-Penny Pilot Options above 0.75% or more of total industry
customer equity and ETF option ADV contracts per day in a month; or, in
the alternative, Participant must have added: (1) Customer and/or
Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot
Options of 30,000 or more contracts per day in a month, and (2) must
have, as proposed, either added liquidity in all securities through one
or more Nasdaq Market Center MPIDs that represent 1.00% or more of
Consolidated Volume in a month, or must qualify for MARS. This brings
liquidity to the Exchange. The proposed rule change is reasonable
because it continues to encourage market participant behavior through
the fees and rebates system, which is an accepted methodology among
options exchanges.\40\ The Tiers and the proposed change to Tier 8
continue to reflect the progressively increasing rebate requirements
that offer incentives to earn the highest Rebate to Add Liquidity by
bringing the most order flow to the Exchange.
---------------------------------------------------------------------------

    \39\ See NASDAQ-2016-051 (filed as immediately effective
proposal deleting ISP).
    \40\ See, e.g., fee and rebate schedules of other options
exchanges, including, but not limited to, NYSE ARCA (``ARCA'')
https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf, and BATS BZX OPTIONS (``BATS'')
http://www.batsoptions.com/support/fee_schedule/bzx/. See also
NASDAQ BX Options Market (``BX Options''), NASDAQ PHLX LLC
(``Phlx''), and Chicago Board Options Exchange (``CBOE'').
---------------------------------------------------------------------------

    The Exchange believes it is equitable and not unfairly
discriminatory to continue to offer rebate Tiers, and in particular
proposed Tier 8, in order to incentivize Professionals and Customers to
bring liquidity to the Exchange. Such liquidity, and in particular
Customer liquidity, attracts other market participants. Customer
liquidity benefits all market participants by providing more trading
opportunities, which attract Market Makers. An increase in the activity
of these market participants in turn facilitates tighter spreads, which
may cause an additional corresponding increase in order flow from other
market participants. Also, the Exchange believes that it is equitable
and not unfairly discriminatory to offer Tier 8 incentives to certain
NOM Participants because the ability to earn Tier 8 rebates, as well as
the requirements to earn such rebates, would apply uniformly to
qualifying NOM Participants. By attracting flow to the Exchange, the
proposed Tier 8 liquidity goals enhance the competitiveness of the
Exchange.

Change 3--Penny Pilot Options: Modify Note ``c'' and Note ``d''

    In Change 3, the Exchange proposes to modify note ``c'' and note
``d'' to indicate that they have applicability to Customer and/or
Professional and to increase the amount of additional rebate from $0.03
to $0.05. The Exchange also proposes to modify note ``c'' to indicate
enhanced ways to earn additional rebate.
    It is reasonable to incentivize Participants to bring flow to the
Exchange. To further incentivize Participants on NOM to bring flow to
the Exchange, in note ``d'' the Exchange proposes that if the
Participants qualify for MARS Payment Tiers 1, 2, or 3 and to [sic]
bring flow to the Exchange, then such Participants will receive an
additional $0.05 per contract (now $0.03) Penny Pilot Options Customer
and/or Professional Rebate to Add Liquidity (in addition to qualifying
Penny Pilot Options Customer [sic] Rebate to Add Liquidity Tiers 1-8).
To incentivize qualifying for additional rebate by bringing flow to the
Exchange,

in note ``c'' the Exchange reasonably proposes, similarly to the rebate
and fee change, that each of the subsections is applicable to both
``Customer and/or Professional''. To further incentivize bringing flow
to the Exchange, the Exchange enhances the means in subsection (3) of
note ``c'' to earn additional rebates and states that Participants can
receive an additional $0.05 per contract Penny Pilot Options Customer
and/or Professional Rebate to Add Liquidity through: (a) Add Customer,
Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity
in Penny Pilot Options and/or Non-Penny Pilot Options above 0.80% of
total industry customer equity and ETF option ADV contracts per day in
a month, (b) add Customer, Professional, Firm, Non-NOM Market Maker
and/or Broker-Dealer liquidity in Non-Penny Pilot Options above 0.15%
of total industry customer equity and ETF option ADV contracts per day
in a month, and (c) execute greater than 0.04% of CV via MOC/LOC volume
within the NASDAQ Stock Market Closing Cross in a month. It is
reasonable for the Exchange to further incentivize bringing flow to the
Exchange by proposing a new methodology to earn option rebates through
CV via MOC/LOC within the NASDAQ Stock Market Closing Cross.
    The proposed rule change is reasonable because it continues to
encourage market participant behavior through the fees and rebates
system, which is an accepted methodology among options exchanges. It is
reasonable to incentivize bringing flow to the Exchange by offering
additional or enhanced ways to bring liquidity to the Exchange and earn
payment for it. It is also reasonable to make sure that Customer and
Professional are harmonized and treated the same.
    The Exchange believes it is equitable and not unfairly
discriminatory to make the changes to note ``c'' and note ``d'' because
they will be applied uniformly across all similarly situated
Participants, while promoting bringing liquidity to the Exchange.
    Such liquidity attracts other market participants. Customer and
Professional liquidity benefits all market participants by providing
more trading opportunities, which attract Market Makers. An increase in
the activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The proposed changes enhance the
competitiveness of the Exchange by continuing to incentivize bringing
flow to the Exchange.
    The Exchange desires to continue to incentivize members and member
organizations, through the Exchange's rebate and fee structure, to
select the Exchange as a venue for bringing liquidity and trading by
offering competitive pricing. Such competitive, differentiated pricing
exists today on other options exchanges. The Exchange's goal is
creating and increasing incentives to attract orders to the Exchange
that will, in turn, benefit all market participants through increased
liquidity at the Exchange.

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 not necessary or appropriate in
furtherance of the purposes of the Act.
    The Exchange operates in a highly competitive market in which
market participants can readily favor competing venues if they deem fee
levels at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees to remain competitive
with other exchanges and with alternative trading systems that have
been exempted from compliance with the statutory standards applicable
to exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee and rebate changes in this market may impose any burden on
competition is extremely limited. In this instance, the proposed
changes regarding the Non-Penny Pilot Options fees and rebates, Tiers 5
and 8, notes ``c'' and ``d'', and MARS eligibility do not impose a
burden on competition because the Exchange's execution services are
completely voluntary and subject to extensive competition both from
other exchanges and from off-exchange venues.
    The proposed changes reflect this competition and the Exchange's
desire to offer better fees and rebates in return for market-improving
liquidity, which is ultimately limited by the Exchange's need to cover
costs and make a profit. Thus, the Exchange must carefully adjust its
fees and rebates with the understanding that if the proposed changes
are unattractive to market participants, it is likely that the Exchange
will lose market share to other exchanges and off-exchange venues as a
result.
    The Exchange is proposing changes regarding the Non-Penny Pilot
Options fees and rebates, Tiers 5 and 8, notes ``c'' and ``d'', and
MARS eligibility. The Exchange believes that such proposed changes will
support liquidity on the Exchange and are procompetitive, since any
other market is free to provide similar, if not better, fees and
rebates should they choose to do so. For these reasons, the Exchange
does not believe that the proposed changes will impair the ability of
its own members or competing order execution venues to maintain their
competitive standing in the financial markets.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\41\
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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-2016-055 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2016-055. 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-NASDAQ-2016-055 and
should be submitted on or before May 17, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\42\
---------------------------------------------------------------------------

    \42\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-09597 Filed 4-25-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Page 16416]
[FR Doc No: 2018-07954]

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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meeting

TIME AND DATE: Notice is hereby given, pursuant to the provisions of
the Government in the Sunshine Act, Public Law 94-409, the Securities
and Exchange Commission will hold an Open Meeting on Wednesday, April
18, 2018, at 3:30 p.m.

PLACE: The meeting will be held in Auditorium LL-002 at the
Commission's headquarters, 100 F Street NE, Washington, DC 20549.

STATUS: This meeting will begin at 3:30 p.m. (ET) and will be open to
the public. Seating will be on a first-come, first-served basis.
Visitors will be subject to security checks. The meeting will be
webcast on the Commission's website at www.sec.gov.

MATTERS TO BE CONSIDERED: The subject matters of the Open Meeting will
be the Commission's consideration of:
     Whether to propose new and amended rules and forms to
require registered investment advisers and registered broker-dealers to
provide a brief relationship summary to retail investors.
     Whether to propose a rule to establish a standard of
conduct for broker-dealers and natural persons who are associated
persons of a broker-dealer when making a recommendation of any
securities transaction or investment strategy involving securities to a
retail customer.
     Whether to propose a Commission interpretation of the
standard of conduct for investment advisers.
    At times, changes in Commission priorities require alterations in
the scheduling of meeting items.

CONTACT PERSON FOR MORE INFORMATION: For further information and to
ascertain what, if any, matters have been added, deleted or postponed;
please contact Brent J. Fields from the Office of the Secretary at
(202) 551-5400.

     Dated: April 11, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018-07954 Filed 4-12-18; 11:15 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 204 (Tuesday, October 26, 2021)]
[Rules and Regulations]
[Pages 59029-59031]
[FR Doc No: 2021-23288]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket Number USCG-2021-0673]
RIN 1625-AA08

Special Local Regulation; Swim Around Charleston, Charleston, SC

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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

SUMMARY: The Coast Guard is establishing a temporary special local
regulation on the waters of the Wando River, Cooper River, Charleston
Harbor, and Ashley River in Charleston, SC. This action is necessary to
provide for the safety of life on navigable waters during the Swim
Around Charleston. This rulemaking would restrict persons and vessels
from entering certain waters of the Wando River, Cooper River,
Charleston Harbor, and Ashley River, unless authorized by Sector
Charleston Captain of the Port or a designated representative.

DATES: This rule is affective from 10 a.m. until 4 p.m., on October 31,
2021.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://www.regulations.gov, type USCG-
2021-0673 in the ``SEARCH'' box and click ``SEARCH.'' Click on Open
Docket Folder on the line associated with this rule.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Lieutenant Commander Chad Ray, Sector Charleston
Waterways Management Division, Coast Guard; telephone<PHONE_NUMBER>,
email [email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

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

II. Background Information and Regulatory History

    The Coast Guard is issuing this temporary 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 the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 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 it is impracticable. The event
already has established dates in 33 CFR 100.704, Table to Sec.
100.704, Line No. 9, and typically takes place one Saturday or Sunday
during the last two weeks of September or the first two weeks of
October. However, this year the event will take place on October 31,
2021. The Coast Guard must establish a temporary final rule for this
year's event because a Notice of Enforcement cannot be used to enforce
a rule this far outside the dates approved in the Federal Register. We
must establish this special local regulation by October 31, 2021 in
order to protect the public from the hazards associated with the Swim
Around Charleston event.
    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 the effective date of
this rule would be contrary to the public interest because the
potential safety hazards associated with the Swim Around Charleston
taking place on October 31, 2021.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 46 U.S.C.
70041. The Captain of the Port Charleston (COTP) has determined that
potential hazards associated with the Swim Around Charleston event
presents a safety concern for anyone in the vicinity of the regulated
area during the event. This rule is needed to protect participants,
spectators, and the general public in the navigable waters within the
regulated area during the Swim Around Charleston event.

IV. Discussion of the Rule

    This rule establishes a special local regulation from 10:00 a.m.
until 4:00 p.m., on October 31, 2021. The special local regulation will
cover certain navigable waters on the Wando River, Cooper River,
Charleston Harbor, and Ashley River in Charleston, South Carolina
beginning at Remleys Point in Mt. Pleasant, proceeding across
Charleston Harbor continuing up the Ashley River to its conclusion just
before the Westmoreland Bridge, I-526. The duration of the special
local regulation is intended to ensure the safety of participants,
spectators, vessels and these navigable waters before, during, and
after the scheduled event.

No vessel or person will be permitted to enter the regulated area
without obtaining permission from Sector Charleston COTP or a
designated representative.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders, and we
discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. This rule has not been designated a ``significant
regulatory action,'' under Executive Order 12866. Accordingly, this
rule has not been reviewed by the Office of Management and Budget
(OMB).
    This regulatory action determination is based on: (1) Non-
participant persons and vessels may enter, transit through, anchor in,
or remain within the regulated area during the enforcement periods if
authorized by Sector Charleston COTP or a designated representative;
(2) vessels not able to enter, transit through, anchor in, or remain
within the regulated area without authorization from Sector Charleston
COTP or a designated representative may operate in the surrounding
areas during the enforcement period; (3) the Coast Guard will provide
advance notification of the special local regulation to the local
maritime community by Broadcast Notice to Mariners; and (4) the
regulated area will impact small designated areas of Wando River,
Cooper River, Charleston Harbor, and Ashley River for only 4 hours and
thus is limited in time and scope.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
will not have a significant economic impact on a substantial number of
small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
call or email the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    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.

C. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this 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.

E. Unfunded Mandates Reform Act

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

F. Environment

    We have analyzed this rule under Department of Homeland Security
Directive 023-01 and COMDTINST 5090.1 (series), which guide the Coast
Guard in complying with the National Environmental Policy Act of 1969
(42 U.S.C. 4321-4370f), and have determined that this action is one of
a category of actions that do not individually or cumulatively have a
significant effect on the human environment. This rule a special local
regulation lasting 6 hours. Normally such actions are categorically
excluded from further review under paragraph L61 of Appendix A, Table 1
of DHS Instruction Manual 023-01-001-01, Rev. 1.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to call or email the person listed in the FOR
FURTHER INFORMATION CONTACT section to coordinate protest activities so
that your message can be received without jeopardizing the safety or
security of people, places or vessels.

List of Subjects in 33 CFR Part 100

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

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 100 as follows:

PART 100--SAFETY OF LIFE ON NAVIGABLE WATERS

0
1. The authority citation for part 100 continues to read as follows:

    Authority: 46 U.S.C. 70041; 33 CFR 1.05-1.

0
2. Add Sec.  100.T799-0084 to read as follows:

Sec.  100.T799-0084  Special Local Regulation; Swim Around Charleston,
Wando River, Cooper River, Charleston Harbor, and Ashley River;
Charleston, SC.

    (a) Location. The following area is a moving safety zone: All
waters 50 yards in front of the lead safety vessel preceding the first
race participants, 50 yards behind the safety vessel trailing the last
race participants, and at all times extend 100 yards on either side of
safety vessels. The Swim Around Charleston swimming race consists of a
12 mile course that starts at Remley's Point on the Wando River in
approximate position 32[deg]48'49'' N, 79[deg]54'27'' W, crosses the
main shipping channel under the main span of the Ravenel Bridge, and
finishes at the I-526 bridge and boat landing on the Ashley River in
approximate position 32[deg]50'14'' N, 80[deg]01'23'' W. All
coordinates are North American Datum 1983.
    (b) Definition. The term ``designated representative'' means Coast
Guard Patrol Commanders, including Coast Guard coxswains, petty
officers, and other officers operating Coast Guard vessels, and
Federal, state, and local officers designated by or assisting the
Sector Charleston COTP in the enforcement of the regulated areas.
    (c) Regulations. (1) All persons and vessels are prohibited from
entering, transiting through, anchoring in, or remaining within the
regulated area unless authorized by the Sector Charleston COTP or a
designated representative.
    (2) Persons and vessels desiring to enter, transit through, anchor
in, or remain within the regulated area may contact the Sector
Charleston COTP by telephone at<PHONE_NUMBER>, or a designated
representative via VHF radio on channel 16, to request authorization.
If authorization to enter, transit through, anchor in, or remain within
the regulated area is granted by the Sector Charleston COTP or a
designated representative, all persons and vessels receiving such
authorization must comply with the instructions of the Sector
Charleston COTP or a designated representative.
    (3) The Coast Guard will provide notice of the regulated area by
Local Notice to Mariners, Broadcast Notice to Mariners, and on-scene
designated representatives.
    (d) Enforcement period. This section will be enforced from 10 a.m.
until 4 p.m., on October 31, 2021.

    Dated: October 20, 2021.
J.D. Cole,
Captain, U.S. Coast Guard, Captain of the Port Charleston.
[FR Doc. 2021-23288 Filed 10-25-21; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 87, Number 179 (Friday, September 16, 2022)]
[Notices]
[Pages 56940-56941]
[FR Doc No: 2022-20063]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 8402-003]

Rapidan Mill, LLC, American Climate Partners; Notice of Transfer
of Exemption

    1. On July 21, 2022, Rapidan Mill, LLC, exemptee for the 105-
Kilowatt Rapidan Mill Hydroelectric Project No. 8402, filed a letter
notifying the Commission that the project was transferred from Rapidan
Mill, LLC to American Climate Partners. The exemption from licensing
was originally issued on June 27, 1985.\1\ The project is located on
the Rapidan River in Culpeper and Orange counties, Virginia. The
transfer of an exemption does not require Commission approval.
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    \1\ Melvin R. Hall, 81 FERC ] 62,412 (1985). On March 27, 2007,
the project was transferred to Rapidan Mill, LLC.

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    2. American Climate Partners is now the exemptee of the Rapidan
Mill Hydroelectric Project No. 8402. All correspondence must be
forwarded to Mr. Michael Collins, American Climate Partners, 7026 Old
Rapidan Road (State Rt. 673), Rapidan, Virginia 22960, Phone: (540)
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672-2542, Email: [email protected].

    Dated: September 12, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-20063 Filed 9-15-22; 8:45 am]
BILLING CODE 6717-01-P