[Federal Register Volume 85, Number 23 (Tuesday, February 4, 2020)]
[Notices]
[Pages 6169-6173]
[FR Doc No: 2020-02103]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2018-0014; FRL-10004-10]

Notice of Receipt of Requests To Voluntarily Cancel Certain
Pesticide Registrations and Amend Registrations To Terminate Certain
Uses

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In accordance with the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA), EPA is issuing a notice of receipt of requests
by the registrants to voluntarily cancel certain pesticide product
registrations and to amend certain product registrations to terminate
uses. EPA intends to grant these requests at the close of the comment
period for this announcement unless the Agency receives substantive
comments within the comment period that would merit its further review
of the requests, or unless the registrants withdraw their requests. If
these requests are granted, any sale, distribution, or use of products
listed in this notice will be permitted after the registrations have
been cancelled and uses terminated only if such sale, distribution, or
use is consistent with the terms as described in the final order.

DATES: Comments must be received on or before March 5, 2020.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2018-0014, by one of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the
online instructions for submitting comments. Do not submit
electronically any information you consider to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute.
    Mail: OPP Docket, Environmental Protection Agency Docket Center
(EPA/DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC 20460-
0001.
    Submit written withdrawal request by mail to: Information
Technology and Resources Management Division (7502P), Office of
Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania
Ave., NW, Washington, DC 20460-0001. ATTN: Christopher Green.
    Hand Delivery: To make special arrangements for hand delivery or
delivery of boxed information, please follow the instructions at http://www.epa.gov/dockets/contacts.html. Additional instructions on
commenting or visiting the docket, along with more information about
dockets generally, is available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: Christopher Green, Information
Technology and Resources Management Division (7502P), Office of
Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania
Ave. NW, Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides. Since others also may be interested, the Agency
has not attempted to describe all the specific entities that may be
affected by this action.

B. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When preparing and submitting
your comments, see the commenting tips at http://www.epa.gov/dockets/comments.html.

II. What action is the Agency taking?

    This notice announces receipt by EPA of requests from registrants
to cancel certain pesticide products and amend product registrations to
terminate certain uses registered under FIFRA section 3 (7 U.S.C. 136a)
or 24(c) (7 U.S.C. 136v(c)). The affected products and the registrants
making the requests are identified in Tables 1-3 of this unit.
    Unless a request is withdrawn by the registrant or if the Agency
determines that there are substantive comments that warrant further
review of this request, EPA intends to issue an order in the Federal
Register canceling and amending the affected registrations.

                      Table 1--Product Registrations With Pending Requests for Cancellation
----------------------------------------------------------------------------------------------------------------
            Registration No.                Company No.          Product name             Active ingredients
----------------------------------------------------------------------------------------------------------------
464-8123................................             464  Filmguard IPBC 100          Carbamic acid, butyl-, 3-
                                                           Fungicidal Agent            iodo-2-propynyl ester.
                                                           (Active), Bioban IPBC 100
                                                           Antimicrobial (Alternate).
464-8125................................             464  Filmguard IPBC 20           Carbamic acid, butyl-, 3-
                                                           Fungicidal Agent            iodo-2-propynyl ester.
                                                           (Active), Bioban IPBC 20
                                                           Antimicrobial and Bioban
                                                           IPBC 20 LE (Alternate).
499-322.................................             499  Whitmire Avert PT 300       Abamectin.
                                                           Pressurized Spray.
499-383.................................             499  Whitmire Avert PT 310 HO    Abamectin.
                                                           Abamectin Bait Dust.
499-394.................................             499  Whitmire Avert              Abamectin.
                                                           Prescription Treatment
                                                           320 Crack & Crevice Gel
                                                           Bait.
499-406.................................             499  Avert Prescription          Abamectin.
                                                           Treatment TC 93A Bait.
499-410.................................             499  Avert Prescription          Abamectin.
                                                           Treatment TC 93B Bait.
499-434.................................             499  Whitmire TC 149A            Abamectin.
                                                           Insecticide.
499-440.................................             499  Whitmire TC 149B..........  Abamectin.
499-467.................................             499  Whitmire Avert TC 181.....  Abamectin.
1448-100................................            1448  Busan 1069................  2-
                                                                                (Thiocyanomethylthio)benz
                                                                                othiazole.
1448-341................................            1448  Busan 1127................  2-
                                                                                (Thiocyanomethylthio)benz
                                                                                othiazole.
3573-73.................................            3573  Tide with Bleach Opal.....  Hydrogen peroxide &
                                                                                Nonanoic acid,
                                                                                sulfophenyl ester, sodium
                                                                                salt.
4959-34.................................            4959  YYY Disinfectant..........  Iodine.
5185-498................................            5185  Bioguard Crystal Blue       Silver nitrate.
                                                           Mineral Cartridge.
7364-60.................................            7364  Spa/Hot Tub Products        Sodium dichloro-s-
                                                           Chlorinating                triazinetrione.
                                                           Concentration Granular.

7969-189................................            7969  Baseline Plant Regulator..  Prohexadione calcium.
8378-54.................................            8378  Gro-Fine Bayleton           Triadimefon.
                                                           Fungicide.
8378-55.................................            8378  Shaw's Fungicide 100......  Triadimefon.
9198-187................................            9198  Andersons Golf Products     Triadimefon.
                                                           Fungicide VII.
9198-190................................            9198  Andersons Golf Products     Triadimefon.
                                                           Fertilizer Plus Fungicide
                                                           VII.
9386-7..................................            9386  AMA-31....................  Nabam & Sodium
                                                                                dimethyldithiocarbamate.
9386-11.................................            9386  AMA-30....................  Nabam & Sodium
                                                                                dimethyldithiocarbamate.
9386-23.................................            9386  AMA-9.....................  Nabam & Sodium
                                                                                dimethyldithiocarbamate.
10324-18................................           10324  Algaesil..................  Nanosilver 002.
10324-165...............................           10324  Maquat MC1416-90%.........  Alkyl* dimethyl benzyl
                                                                                ammonium chloride
                                                                                *(60%C14, 30%C16, 5%C18,
                                                                                5%C12).
33677-1.................................           33677  Tolcide(R) MBT............  Methylene
                                                                                bis(thiocyanate).
34688-76................................           34688  Aquatreat DNM-30..........  Nabam & Sodium
                                                                                dimethyldithiocarbamate.
34688-77................................           34688  Aquatreat KM..............  Potassium
                                                                                dimethyldithiocarbamate.
34688-78................................           34688  Aquatreat SDM.............  Sodium
                                                                                dimethyldithiocarbamate.
34688-79................................           34688  Aquatreat DN-30...........  Nabam.
34704-882...............................           34704  Oryzalin T&O..............  Oryzalin.
34704-918...............................           34704  Ethofume SC Herbicide.....  Ethofumesate.
34704-949...............................           34704  Intensity Max.............  Clethodim.
35917-2.................................           35917  Iodinated Resin H-465.....  Iodine.
45309-12................................           45309  Spa Clear Spa Chlor-56....  Sodium dichloro-s-
                                                                                triazinetrione.
45309-21................................           45309  Aqua Clear Iso-Gran.......  Sodium dichloro-s-
                                                                                triazinetrione.
45309-59................................           45309  Aqua Clear Aqua-Shock.....  Sodium dichloro-s-
                                                                                triazinetrione.
45309-61................................           45309  Aqua Clear Winterizer.....  Sodium dichloro-s-
                                                                                triazinetrione.
45309-84................................           45309  Red Plug Cartridge with     Trichloro-s-
                                                           Concentrated Chlorinated    triazinetrione.
                                                           Tablets.
45309-94................................           45309  Speed-Y-Tabs..............  Sodium
                                                                                dichloroisocyanurate
                                                                                dihydrate.
62719-694...............................           62719  MON 89034 X TC1507 X        Bacillus thuringiensis
                                                           MIR162.                     Vip3Aa20 protein encoded
                                                                                by vector pNOV1300 in
                                                                                event MIR162 corn (SYN-
                                                                                IR162-4), % dw; Bacillus
                                                                                thuringiensis Cry1F
                                                                                protein and the genetic
                                                                                material necessary for
                                                                                its production (plasmid
                                                                                insert PHI8999) in corn;
                                                                                Bacillus thuringiensis
                                                                                Cry2Ab2 protein and the
                                                                                genetic material
                                                                                necessary (vector PV-
                                                                                ZMIR245) for its
                                                                                production in corn &
                                                                                Bacillus thuringiensis
                                                                                Cry1A.105 protein and
                                                                                genetic material
                                                                                necessary (vector PV-
                                                                                ZMIR245) for its
                                                                                production in corn.
67262-18................................           67262  3'' Stabilized Chlorinator  Trichloro-s-
                                                           Tablets.                    triazinetrione.
70506-50................................           70506  Surflan 85DF..............  Oryzalin.
70506-51................................           70506  Turf Fertilizer Contains    Oryzalin.
                                                           Surflan 1%.
70506-52................................           70506  Turf Fertilizer Contains    Oryzalin.
                                                           Surflan 0.75%.
70506-53................................           70506  Up-Shot DF Herbicide......  Oryzalin & Isoxaben.
70506-54................................           70506  Surflan 75W...............  Oryzalin.
70506-55................................           70506  Turf Fertilizer Contains    Oryzalin & Isoxaben.
                                                           Galley Plus Surflan.
70506-96................................           70506  Oryza Ag..................  Oryzalin.
70506-97................................           70506  Oryza T&O.................  Oryzalin.
72616-9.................................           72616  Taratek TC................  Triadimefon &
                                                                                Cyproconazole.
85678-55................................           85678  Flucarbazone 35% SC.......  Flucarbazone-sodium.
87262-4.................................           87262  Compass THPS..............  Tetrakis(hydroxymethyl)pho
                                                                                sphonium sulphate (THPS).
87262-6.................................           87262  Compass THPS 50...........  Tetrakis(hydroxymethyl)pho
                                                                                sphonium sulphate (THPS).
87262-7.................................           87262  Compass THPS 35...........  Tetrakis(hydroxymethyl)pho
                                                                                sphonium sulphate (THPS).
87262-8.................................           87262  Compass THPS 20...........  Tetrakis(hydroxymethyl)pho
                                                                                sphonium sulphate (THPS).
88276-1.................................           88276  Octopol DSM-30............  Nabam & Sodium
                                                                                dimethyldithiocarbamate.
89442-2.................................           89442  Ethofumesate Select.......  Ethofumesate.
91813-24................................           91813  Agvalue Oryzalin Technical  Oryzalin.
AL-870002...............................             400  Dimilin 25W for Cotton/     Diflubenzuron.
                                                           Soybean.
CA-100013...............................           63206  Lorsban Advanced..........  Chlorpyrifos.
CA-790138...............................            5481  Orthene 75 S Soluble        Acephate.
                                                           Powder.
CA-950010...............................            5481  Fruit Fix Concentrate 200.  Ammonium 1-
                                                                                naphthaleneacetate.
CO-070003...............................           71512  Omega 500F................  Fluazinam.
CO-080008...............................           62719  Lorsban Advanced..........  Chlorpyrifos.
CO-090005...............................           71512  Beleaf 50SG Insecticide...  Flonicamid.
CO-140002...............................            1381  Carnivore Herbicide.......  MCPA, 2-ethylhexyl ester;
                                                                                Bromoxynil octanoate &
                                                                                Fluroxypyr-meptyl.
HI-090001...............................           62719  Lorsban Advanced..........  Chlorpyrifos.
WA-000035...............................             352  Curzate 60DF..............  Cymoxanil.

WA-020019...............................           62719  NAF-522...................  Glyphosate-
                                                                                isopropylammonium.
----------------------------------------------------------------------------------------------------------------

                                           Table 2--Product Registrations With Pending Requests for Amendment
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          Registration No.              Company No.         Product name          Active ingredient                   Uses to be terminated
--------------------------------------------------------------------------------------------------------------------------------------------------------
45728-7.............................           45728  Ferbam Granuflo........  Ferbam.................  Grapes and cherries.
45728-14............................           45728  Thionic Ziram Technical  Ziram..................  Industrial yarns and fabrics.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 3 of this unit includes the names and addresses of record for
all the registrants of the products listed in Tables 1 & 2 of this
unit, in sequence by EPA company number. This number corresponds to the
first part of the EPA registration numbers of the products listed in
Table 1 and Table 2 of this unit.

Table 3--Registrants Requesting Voluntary Cancellation and/or Amendments
------------------------------------------------------------------------
       EPA company No.                 Company name and address
------------------------------------------------------------------------
352.........................  E. I. Du Pont De Nemours and Company, 9330
                               Zionsville Road, Indianapolis, IN 46268.
400.........................  MacDermid Agricultural Solutions, Inc., C/
                               O Arysta LifeScience North America, LLC,
                               Agent Name: UPL NA, Inc., 630 Freedom
                               Business Center, #402, King of Prussia,
                               PA 19406.
464.........................  DDP Specialty Electronic Materials US,
                               Inc., A Wholly Owned Subsidiary of The
                               Dow Chemical Company, 1501 Larkin Center
                               Drive, Midland, MI 48674.
499.........................  BASF Corporation, 26 Davis Drive, P.O. Box
                               13528, Research Triangle Park, NC 27709-
                               3528.
1381........................  Winfield Solutions, LLC, P.O. Box 64589,
                               St. Paul, MN 55164-0589.
1448........................  Buckman Laboratories, Inc., 1256 North
                               Mclean Blvd., Memphis, TN 38108.
3573........................  The Procter & Gamble Company, D/B/A
                               Procter & Gamble, 5299 Spring Grove
                               Ave.,--F&HC PS&RA, Cincinnati, OH 45217.
4959........................  West Agro, Inc., 11100 N Congress Ave.,
                               Kansas City, MO 64153.
5185........................  Bio-Lab, Inc., P.O. Box 300002,
                               Lawrenceville, GA 30049-1002.
5481........................  AMVAC Chemical Corporation, 4695 MacArthur
                               Court, Suite 1200, Newport Beach, CA
                               92660-1706.
7364........................  Innovative Water Care, LLC, D/B/A GLB Pool
                               & Spa, 1400 Bluegrass Lakes Parkway,
                               Alpharetta, GA 30004.
7969........................  BASF Corporation, Agricultural Products,
                               26 Davis Drive, P.O. Box 13528, Research
                               Triangle Park, NC 27709-3528.
8378........................  Knox Fertilizer Company, Inc., Agent Name:
                               Fred Betz Regulatory Strategies, 922
                               Melvin Road, Annapolis, MD 21403.
9198........................  The Andersons, Inc., 1947 Briarfield
                               Blvd., P.O. Box 119, Maumee, OH 43537.
9386........................  Kemira Chemicals, Inc., 1000 Parkwood
                               Circle, Suite 500, Atlanta, GA 30339.
10324.......................  Mason Chemical Company, 9075 Centre Pointe
                               Dr., Suite 400, West Chester, OH 45069.
33677.......................  Solvay Solutions UK Limited, Agent Name:
                               Delta Analytical Corporation, 12510
                               Prosperity Drive, Suite 160, Silver
                               Spring, MD 20904.
34688.......................  Akzo Nobel Surface Chemistry, LLC, 525 W
                               Van Buren St., Chicago, IL 60607-3823.
34704.......................  Loveland Products, Inc., P.O. Box 1286,
                               Greeley, CO 80632-1286.
35917.......................  Hybrid Technologies Corporation, Agent
                               Name: RegWest Company, LLC, 8209 West
                               20th Street, Suite B, Greeley, CO 80634-
                               4699.
45309.......................  Aqua Clear Industries, LLC, P.O. Box 2456,
                               Suwanee, GA 30024-0980.
45728.......................  Taminco US, LLC, A Subsidiary of Eastman
                               Chemical Company, 200 S. Wilcox Dr.,
                               Kingsport, TN 37660-5147.
62719.......................  Dow Agrosciences, LLC, 9330 Zionsville
                               Rd., 308/2E, Indianapolis, IN 46268-1054.
63206.......................  California Citrus Quality Council, 853
                               Lincoln Way, Suite 206, Auburn, CA 95603.
67262.......................  Recreational Water Products, Inc., D/B/A
                               Recreational Water Products, P.O. Box
                               1449, Buford, GA 30515-1449.
70506.......................  UPL NA, Inc., 630 Freedom Business Center,
                               Suite 402, King of Prussia, PA 19406.
71512.......................  ISK BioSciences Corporation, 7470 Auburn
                               Road, Suite A, Concord, OH 44077.
72616.......................  Lonza NZ Limited, Agent Name: Arch Wood
                               Protection, Inc., 3941 Bonsal Road,
                               Conley, GA 30288.
85678.......................  RedEagle International, LLC, Agent Name:
                               Wagner Regulatory Associates, Inc., P.O.
                               Box 640, Hockessin, DE 19707.
87262.......................  Italmatch USA Corporation, 5544 Oakdale
                               Road SE, Smyrna, GA 30082.
88276.......................  Tiarco Chemical Company, 1300 Tiarco Drive
                               SW, Dalton, GA 30720.
89442.......................  Prime Source, LLC, Agent Name: Wagner
                               Regulatory Associates, Inc., P.O. Box
                               640, 7217 Lancaster Pike, Suite A,
                               Hockessin, DE 19707.
91813.......................  UPL Delaware, Inc., 630 Freedom Business
                               Ctr., #402, King of Prussia, PA 19406.
------------------------------------------------------------------------

III. What is the Agency's authority for taking this action?

    Section 6(f)(1) of FIFRA (7 U.S.C. 136d(f)(1)) provides that a
registrant of a pesticide product may at any time request that any of
its pesticide registrations be canceled or amended to terminate one or
more uses. FIFRA further provides that, before acting on the request,
EPA must publish a notice of receipt of any such request in the Federal
Register.
    Section 6(f)(1)(B) of FIFRA (7 U.S.C. 136d(f)(1)(B)) requires that
before acting on a request for voluntary cancellation, EPA must provide
a 30-day public comment period on the request for voluntary
cancellation or use termination. In addition, FIFRA section 6(f)(1)(C)
(7 U.S.C. 136d(f)(1)(C)) requires that EPA provide a 180-day comment
period on a request for voluntary cancellation or termination of any
minor agricultural use before granting the request, unless:

    1. The registrants request a waiver of the comment period, or
    2. The EPA Administrator determines that continued use of the
pesticide would pose an unreasonable adverse effect on the environment.
    The registrants listed in Table 3 of Unit II have requested that
EPA waive the 180-day comment period. Accordingly, EPA will provide a
30-day comment period on the proposed requests.

IV. Procedures for Withdrawal of Requests

    Registrants who choose to withdraw a request for product
cancellation or use termination should submit the withdrawal in writing
to the person listed under FOR FURTHER INFORMATION CONTACT. If the
products have been subject to a previous cancellation or termination
action, the effective date of cancellation or termination and all other
provisions of any earlier cancellation or termination action are
controlling.

V. Provisions for Disposition of Existing Stocks

    Existing stocks are those stocks of registered pesticide products
that are currently in the United States and that were packaged,
labeled, and released for shipment prior to the effective date of the
action. If the requests for voluntary cancellation and amendments to
terminate uses are granted, the Agency intends to publish the
cancellation order in the Federal Register.
    In any order issued in response to these requests for cancellation
of product registrations and for amendments to terminate uses, EPA
proposes to include the following provisions for the treatment of any
existing stocks of the products listed in Table 1 of Unit II.

A. For Products 464-8123, 10324-18 & 10324-165

    For products 464-8123, 10324-18 & 10324-165, listed in Table 1 of
Unit II, the registrants have requested 18-months to sell existing
stocks. Registrants will be permitted to sell and distribute existing
stocks of these products for 18-months after the effective date of the
cancellation, which will be the date of publication of the cancellation
order in the Federal Register. Thereafter, registrants will be
prohibited from selling or distributing these products, except for
export consistent with FIFRA section 17 (7 U.S.C. 136o) or for proper
disposal.

B. For Products 87262-4, 87262-6, 87262-7 & 87262-8

    For products 87262-4, 87262-6, 87262-7 & 87262-8, listed in Table 1
of Unit II, the registrant has requested to sell existing stocks until
December 31, 2020. Registrants will be permitted to sell and distribute
existing stocks of these products until December 31, 2020. Thereafter,
registrants will be prohibited from selling or distributing these
products, except for export consistent with FIFRA section 17 (7 U.S.C.
136o) or for proper disposal.
    For all other voluntary product cancellations, identified in Table
1 of Unit II, registrants will be permitted to sell and distribute
existing stocks of voluntarily canceled products for 1 year after the
effective date of the cancellation, which will be the date of
publication of the cancellation order in the Federal Register.
Thereafter, registrants will be prohibited from selling or distributing
all other products identified in Table 1 of Unit II, except for export
consistent with FIFRA section 17 (7 U.S.C. 136o) or for proper
disposal.
    Once EPA has approved product labels reflecting the requested
amendments to terminate uses, identified in Table 2 of Unit II,
registrants will be permitted to sell or distribute products under the
previously approved labeling for a period of 18-months after the date
of Federal Register publication of the cancellation order, unless other
restrictions have been imposed. Thereafter, registrants will be
prohibited from selling or distributing the products whose labels
include the terminated uses identified in Table 2 of Unit II, except
for export consistent with FIFRA section 17 or for proper disposal.
    Persons other than the registrant may sell, distribute, or use
existing stocks of canceled products and products whose labels include
the terminated uses until supplies are exhausted, provided that such
sale, distribution, or use is consistent with the terms of the
previously approved labeling on, or that accompanied, the canceled
products and terminated uses.

    Authority: 7 U.S.C. 136 et seq.

    Dated: January 21, 2020.
Delores Barber,
Director, Information Technology and Resources Management Division,
Office of Pesticide Programs.
[FR Doc. 2020-02103 Filed 2-3-20; 8:45 am]
 BILLING CODE 6560-50-P


 National Advisory Committee on Occupational Safety & Health (NACOSH) Heat Injury and Illness Prevention Work Group  April 27, 2023 Time Begun/Adjourned: 2:00 PM - 3:53 PM

OSHA/SOL Staff:  Lisa Long, Christie Garner, Zoe Petropoulos, Eduardo Hernandez, Andrew Levinson, Inanje Mintz, Helena Brijbasi, Pamela Barclay, Jennifer Levin (SOL), Jean Gleason, Joo-Hyung Shin, Amy Wangdahl, Carla Marcellus, Dana Voinier, Jason Hammer

Work Group Members:  Rebecca Reindel, Kathleen Dobson, Cynthia Lewis, Kirk Sander, Jay Withrow, Gavin West, Christopher Long, Mirella Deniz-Zaragoza, Neza Xiuhtecutli, Enjoli DeGrasse, June Spector, Dominque Damian, Nicole Hernandez-Hammer, David DeGroot, Robert Matuga

Meeting Notes:

Lisa Long, Deputy Director of OSHA's Directorate of Standards and Guidance (DSG) and Alternate Designated Federal Official for NACOSH, welcomed meeting attendees to the NACOSH Heat Injury and Illness Prevention Work Group meeting. Attendance was taken and Ms. Long then invited the work group members to provide brief introductions.

Ms. Long provided a review of the charge given to the work group. Task #1 was to evaluate and provide input and recommendations on OSHA's heat illness prevention guidance materials. Ms. Long noted that the work group presented their report on Task #1 at the NACOSH meeting in January. Task #2 asks the work group to "Critically evaluate stakeholder input to the Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings Advance Notice of Proposed Rulemaking (ANPRM), and develop key recommendations of potential elements of a heat injury and illness prevention rulemaking that OSHA should consider."

Rebecca Reindel, Work Group Co-Chair, stated that the primary focus of this meeting will be on Task #2`s regulatory aspect of the charge, specifically to identify potential elements for a proposed heat standard.  She provided a brief overview of the work group's efforts to date on Task #2. The work group focused on what the critical elements of a heat standard would be and reviewed a variety of sources to develop best practices. Ms. Reindel shared two documents to accompany the discussion.  One document was an Excel workbook containing a compilation of state heat standards and laws, including both those that have been adopted and proposed. The other document was a Task #2 draft report, including findings and recommendations for NACOSH.

Ms. Reindel discussed the core elements the work group identified that could be considered for a heat illness rulemaking. These core elements, discussed in detail in the draft report, include: heat illness prevention plan; training; environmental monitoring; workplace control measures; acclimatization; worker participation; and emergency response.

Ms. Reindel then opened up discussion to the work group.  Mirella Deniz-Zaragoza mentioned how appreciative she was of the inclusion of worker participation and the acknowledgement of how workload plays a role in heat illness issues in the workplace.  Gavin West reiterated the importance of worker participation and expressed appreciation that the consensus recommendations include workers being involved in the risk assessment process and implementation of controls.

Enjoli DeGrasse noted that environmental monitoring is of importance to the Teamsters Union. She mentioned that while it is important to have monitoring on location locally in the buildings and facilities, there needs to be a way to monitor drivers while they are in their vehicles.

Jay Withrow mentioned that this is a very unique regulation that OSHA is trying to adopt because of having to deal with both interior and exterior hazards. He noted that having a standard that can provide some flexibility, along with one that employers can understand easily so that they can implement it in the least burdensome way, is very important but challenging.  Mr. Withrow suggested that under the written exposure control plan section of the report, the language "the plan must" should be removed, to avoid the perception that the work group is specifying language that would go into a standard.

Rob Matuga noted that during the work group discussions, there was talk about the challenges employers and workers may face in reducing heat injury and illness in work environments. He stated that the challenge for OSHA is going to be determining which of the elements will be really effective at reducing or eliminating the heat hazard. He also mentioned that OSHA will have to analyze the economic impact, especially on small employers.

Lieutenant Colonel David DeGroot highlighted the importance of recommended language requiring local planning in workplaces where combined levels of heat and worker exertion create a risk of heat stroke.  Employers should be adequately prepared when these circumstances are present.

Nicole Hernandez-Hammer mentioned the importance of the workplace engineering controls that are reflected in the draft report.

Cynthia Lewis commended the work group for all their hard work on Task #2. She offered some suggestions to the work group for possible additions to the recommendations. First, she suggested that the work group consider including a recommendation regarding regionality. Next, she noted that the addition of definitions of heat wave and high and extreme heat could be useful. Ms. Lewis suggested that instead of referring to "water," consider using the term "fluids."  Lastly, she suggested training materials should be considered as part of Task #1 instead of the Task #2.

After the discussion, Ms. Reindel asked for the work group to comment on potential edits to the report. With regard to changing the "must" to "should" in some of the recommendations, the work group is in consensus to that change. For the change to "fluids," Lieutenant Colonel DeGroot agreed with Ms. Lewis's recommendation and suggested adding "to include" something like water, sports drink, etc. to add more flexibility. Some work group members felt that a disclaimer should be added regarding the use of high-sugar or energy drinks. Ms. Reindel suggested changing "water" to "water and other fluids." Gavin West agreed and noted that going into detail about beverages that are helpful versus those to avoid is something that would be better addressed in guidance than in a proposed rule. Ms. Reindel suggested tying the water and other fluids issue into the Task #1 report.

Regarding the suggestion to add language around regionality (variability) and climate across the county, Mr. West noted that a way to address it would be to do risk assessments that are focused on workers,  the task and the jobsite in the specific work environment.  Ms. Reindel agreed and suggested including language regarding variability in the Task #2 report's discussion of risk assessments. She also suggested adding to the report the publication mentioned by June Spector regarding a regional approach to thinking about extreme temperatures.

Ms. Reindel called for a vote to make the changes to the report and also moving forward with sending the report to NACOSH. The NACOSH full committee meeting is scheduled for May 31 and Ms. Reindel will be providing a report on the Task #2 progress. Before moving to a vote, Mr. Withrow suggested that the report should be consistent with the terminology used with regards to variability.  Ms. Reindel noted that the terminology will be updated. All work group members voted "yes" to send the recommendations to the NACOSH full committee.

Before concluding the NACOSH Heat Injury and Illness Prevention Work Group meeting, Ms. Reindel noted that she will present the Task #2 report to the NACOSH full committee on May 31, and include in the discussion the different methods, the sources of information, and the challenges. Kathi Dobson, Work Group Co-Chair, asked, and confirmed, that all the information presented at the work group meeting will go into the docket and there will be a transcript of the work group meeting that will be useful for the full NACOSH committee to review.


[Federal Register Volume 84, Number 250 (Tuesday, December 31, 2019)]
[Notices]
[Pages 72409-72414]
[FR Doc No: 2019-28215]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87852; File No. SR-CBOE-2019-122]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Order Granting Accelerated Approval of a Proposed Rule
Change To Allow the Exchange To Continue To List Classes of Options on
the MSCI Emerging Markets Index After January 1, 2020

December 23, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on December 12, 2019, Cboe Exchange, Inc. (``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
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons and, for the reasons
discussed below, is issuing this order approving the proposed rule
change on an accelerated basis.
---------------------------------------------------------------------------

    \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

    Cboe Exchange, Inc. seeks approval from the Securities and Exchange
Commission to continue listing classes of options on the MSCI EM Index.
    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 seek approval pursuant to Rule 4.10(i) for
the continued listing of options on the EM Index (``EM Options''). Rule
4.10(i) establishes maintenance listing standards that apply to options
on the EM Index \3\ and also provides that in the event a class of
index options listed on the Exchange fails to satisfy the maintenance
listing standards, the Exchange shall not open for trading any
additional series of options of that class unless the continued listing
of that class of index options has been approved by the Commission
under Section 19(b)(2) of the Exchange Act. Specifically, Rule
4.10(i)(2), requires that the total number of component securities in
the EM Index

may not increase or decrease by more than 10% over the last six-month
period (the ``component securities threshold''). Due to global market
trends and the overall objectives of the EM Index, as described below,
the Exchange has become aware that the EM Index will not meet this
requirement for the next bi-annual index surveillance review of the EM
Index components as-of January 1, 2020. Thus, the Exchange now seeks
the Commission's approval for the continued listing of options on the
EM Index, specifically, in connection with the component securities
threshold, beginning January 1, 2020, as provided in Rule 4.10(i). The
Commission's approval would allow the Exchange to continue to open for
trading additional series of options on such index without interruption
to the market and investor participation.
---------------------------------------------------------------------------

    \3\ As well as the MSCI EAFE, FTSE Emerging and FTSE Developed
Europe indexes.
---------------------------------------------------------------------------

    The EM Index is designed to capture large and mid-cap
representation across emerging market countries. In particular, it is
built to ``be flexible enough to adjust quickly to a constantly
changing opportunity set'', that is, emerging markets.\4\ It seeks ``to
capitalize on the unique attributes of these vibrant economies'', which
includes ``superior growth potential''.\5\ Indeed, EM has experienced a
continuous rise in the number of its component securities. When
initially listed on the Exchange in 2015, the EM Index consisted of the
following 23 emerging market country indexes: Brazil, Chile, China,
Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia,
Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia,
South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. At
that time, the EM Index had 834 constituents which covered
approximately 85% of the free float-adjusted market capitalization in
each country. Since its initial listing, Argentina,\6\ Pakistan,\7\ and
Saudi Arabia \8\ have joined the list of countries represented in the
EM Index. Over recent years, the component securities of the EM Index
have grown to a market capitalization of 5,582,502 (USD Millions) (up
from 3,219,779 in 2016) and average market capitalization per
constituent of 4,644 (USD Millions) (up from 3,847 in 2016). In
addition to this, the components securities have an average daily
volume of over 42 billion, and an average daily volume per constituent
of over 35 million. Additionally, the largest constituent in the EM
Index currently only accounts for 4.5% of the weight of the EM
Index.\9\
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    \4\ See MSCI Emerging Markets Index brochure (dated May 2019)
located at: https://www.msci.com/documents/1296102/15035999/USLetter-MIS-EM-May2019-cbr-en.pdf/fb580e1e-d54c-4c68-1314-977bbff69bd7?t=1559125400402.
    \5\ Id.
    \6\ Added in June 2018.
    \7\ Added in June 2017.
    \8\ Added in June 2018.
    \9\ See MSCI Emerging Markets Index fact sheet (dated October
31, 2019) located at: https://www.msci.com/documents/10199/c0db0a48-01f2-4ba9-ad01-226fd5678111.
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    Indeed, as a result of the growth of the emerging markets
represented, the index has experienced continued expansion. As of July
1, 2019, the number of constituents in the EM Index had grown to a
total of 1,194, and, as of October 31, 2019, a total of 1,202
constituents. In particular, the most notable expansion has been the
recent (2018) introduction of Saudi Arabian securities (as indicated
above) and mainland China component securities \10\ into the EM Index.
In early 2019, MSCI implemented a two-step inclusion plan for Saudi
Arabian component securities and a three-step inclusion plan for
mainland China component securities.\11\ The plan ``phased-in''
increases in the weight and number of Saudi Arabian component
securities, which was completed in August 2019,\12\ and the weight and
number of mainland China component securities, which was completed in
November 2019.\13\ The Exchange notes that the cumulative average
growth rate of the EM Index component securities since 2015 has
averaged 4.5% every six months. In the six-month window from January
2019 through July 2019 the EM Index experienced approximately a 6.2%
increase in component securities; the majority of this increase was a
direct result of MSCI's first inclusion phase of Saudi Arabian and
mainland China component security. Though this was a departure from the
4.5% average every six months, the January 2019 through July 2019
increase was contained within the 10% threshold pursuant to Rule
4.10(i)(2). However, as a result of the second inclusion phase for
Saudi Arabian and mainland China shares in August 2019, coupled with
the third, and last, inclusion phase for mainland China shares in
November 2019, the EM Index has surpassed a 10% increase from July
2019, and therefore, will be non-compliant with the component
securities threshold for the Exchange's next bi-annual review of the
component securities as-of January 1, 2020. Specifically, as a result
of the August 2019 and November 2019 inclusions, the EM Index has
experienced approximately a 17% increase from July 2019 (1,202
component securities at this time) to November 2019 (a total of 1,410
component securities after the November 2019 inclusion). The Exchange
notes that this significant increase since July 2019 is an isolated
departure from the 4.5% average six-month increases the EM Index has
typically and steadily experienced since 2015. The Exchange further
notes that the component securities threshold was the only threshold
implicated as a result of MSCI's inclusion plan, and that the other
threshold tests applicable to the EM Index under Rule 4.10(h) will be
met as-of January 1, 2019 [sic]. As such, the Exchange respectfully
requests that the Commission approve the continued listing of options
on the EM Index in connection with the component securities threshold
beginning January 1, 2020, as provided in Rule 4.10(i).
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    \10\ China ``A-Shares'', which trade on the Shanghai Stock
Exchange and Shenzhen Stock Exchange.
    \11\ See MSCI Implementation Q&A: Inclusion of the MSCI
Argentina, the MSCI Saudi Arabia Indexes and China A Shares in the
MSCI Emerging Markets Indexes, at 17, 24 (May 2019) located at:
https://www.msci.com/documents/1296102/af029454-117c-f15c-8d5e-52aa627efa14.
    \12\ See MSCI Emerging Markets Press Release, MSCI Equity
Indexes August 2019 Index Review (August 7, 2019) located at:
https://www.msci.com/eqb/pressreleases/archive/MSCI_Aug19_QIRPR.pdf;
and MSCI Emerging Markets Press Release, MSCI Equity Indexes May
2019 Index Review (May 13, 2019) located at: https://app2.msci.com/eqb/pressreleases/archive/MSCI_May19_QIRPR.pdf.
    \13\ See MSCI Emerging Markets Press Release, MSCI Equity
Indexes November 2019 Index review (November 7, 2019) located at:
https://www.msci.com/eqb/pressreleases/archive/MSCI_Nov19_QIRPR.pdf.
---------------------------------------------------------------------------

    The Exchange believes that MSCI's recent inclusion plans are an
exception to the normal course of the MSCI index reviews. The timing of
the inclusion plans for the two, rapidly expanding markets arose around
the same time, due to similar market overhauls separately undertaken by
Saudi Arabia and China. In the recent years, Saudi Arabian markets have
increased privatization and implemented several enhancements that
further opened their markets to international institutional investors,
while the Chinese government has eased previously strict access
controls on the their markets.\14\ As a result of these developments,
MSCI conducted ``extensive global consultation with a large number of
international institutional investors, including asset owners, asset
managers, broker/dealers and other market

participants worldwide,'' \15\ in order to ultimately implement the
inclusion plans. The Exchange also notes that, although MSCI announced
the inclusion phase-in plan prior to its implementation, the number of
component securities actually added (or removed as part of MSCI's
regular quarterly reviews) in each phase was unknown until the August
2019 and November 2019 review releases.
---------------------------------------------------------------------------

    \14\ See MSCI Press Release, MSCI Will Increase the Weight of
China A Shares in MSCI Indexes (February 28, 2019) located at:
https://www.msci.com/documents/10199/238444/China_A_Further_Weight_Increase_PR_Eng.pdf/43f3ee8b-5182-68d4-a758-2968b4206e54; see also MSCI Press Release, Results of the MSCI 2018
Market Classification Review (June 20, 2018) located at: https://www.msci.com/documents/10199/95fa3628-ff2e-e9cd-53b9-8912329ec40c
(discussing the decision to include Saudi Arabia).
    \15\ See id.
---------------------------------------------------------------------------

    The Exchange notes that the 10% threshold is designed to prevent
significant adjustments to the number of EM Index constituents,
particularly decreases that could: (i) Reduce component securities in
the EM Index to a point that would raise manipulation concerns; or (ii)
change the general character of the EM Index over which index options
are issued. The 10% threshold is designed to allow for the more rapid,
shorter-term changes (e.g., an average 4.5% increase in constituents
every six-months, and occasional increases from this, like the 6.2%
increase from January 2019 through July 2019 as a result of the one
inclusion phase) experienced by emerging markets that the EM Index is
designed to capture. The current threshold is aligned with the way the
EM Index has grown over the past four years and is expected to continue
growing.\16\
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    \16\ The Exchange also notes that the generic listing standards
applicable to ETPs listed on other national securities exchanges
(e.g., Cboe BZX Exchange Rule 14.11(c)(3)(A)(ii)) do not include any
requirements based on the increase or decrease in component
securities, and instead only require that an ETP based on an index
that includes non-U.S. component stocks includes at least 20
component securities, among other diversification, liquidity, and
market cap requirements. As such, an ETP based on the EM Index would
not be delisted based on a percentage increase or decrease in
component securities as long as it continued to have at least 20
component securities. Therefore, the Exchange believes that the
proposed threshold is more restrictive than the current standard for
listing products on the EM Index.
---------------------------------------------------------------------------

    As noted above, the 10% threshold is designed to prevent material
increases that could change the character of the index over which
broad-based index options are issued. The Exchange does not believe
that the increase described herein changes the character of the EM
Index. Unlike an index that is meant to represent a relatively fixed
constituent count reflection of large-cap stocks, such as the S&P 500
Index, the EM Index contains mid-cap components and is designed to be
flexible to change over time as the represented markets change. Given
the increasingly high number of constituents and capitalization of the
EM Index, the deep and liquid markets for the securities underlying the
index, and the low percentage each constituent comprises of the total
EM Index weight, and normally steady recent growth patterns, the
concerns that a further increase, even such a significant 17% increase,
in component securities would change the character of the index or
allow for potential market manipulation and/or disruption in the
underlying markets are greatly reduced. As stated above, the 17%
increase is an outlying departure from the incremental increases the EM
Index typically experiences.
    The Exchange notes that significant decreases, as opposed to
increases like those described herein, are more likely to raise
concerns related to manipulation and/or disruption in the underlying
markets, although the Exchange does not believe that a decrease in the
number of constituents in any index, even by an amount greater than
10%, necessarily gives rise to manipulation concerns. Further, the
Exchange currently maintains ``watch lists'' made up of countries and
indexes with large constituent count changes which it reviews at least
quarterly. The Exchange also conducts intermediate reviews on at least
a quarterly basis to identify potential compliance concerns in
connection with the continued listing standards in advance of its
formal semi-annual index maintenance reviews. If the Exchange
determines from its reviews that a change in the EM Index's composition
would affect the protection of investors, it may cease listing series
on the EM Index pursuant to Rule 4.4, notwithstanding Commission
approval to continue listing options or if an index is still compliant
with the component security threshold. The Exchange believes the
frequency of these reviews will continue to successfully identify and
address continued listing compliance concerns that the component
securities threshold is also designed to address for the EM Index.
    The Exchange further notes that EM Options are currently listed for
trading on the Exchange and that the Exchange generally adds new series
after an expiration, which allows trading to commence in the new series
on the first trading day after the expiration date. The Exchange
currently lists EM options that expire monthly, as well as Friday-
expiring weekly options. In addition to this, the Exchange offers FLEX
options on this index, which may only be listed if the standard options
on an index are authorized to be listed. Specifically, without the
Commission's approval, additional series of weekly EM options may no
longer be scheduled to be added, nor will additional monthly series
after expiration on January 17, 2020, which would allow trading to
commence in the additional series on the next trading day of January
20, 2020.
    In light of MSCI's November 2019 inclusion, market participants
have already begun to express concern to the Exchange regarding
interruption in their trading of series on the EM Index come January
2020 as a result of non-compliance with the Exchange's component
securities threshold. Indeed, market participants that intend to write
optionality with weekly expiration dates in the first weeks of January
2020 will, instead, have to take their volume OTC. This poses counter
party risks to which a market participant would not otherwise have
exposure if series were available on the EM Index. The inability to add
the EM options would be a detriment to market participants seeking to
hedge portfolios indexed to the EM Index, positions in ETPs based on
the EM Index (e.g., EEM), options on EEM and futures on the EM Index,
and European-traded derivatives on the EM Index. Further, there are
ETPs that use options on the EM Index as part of their investment
strategy. Without the ability to add the EM options, these ETPs could
be unable to achieve their investment objective, to the detriment of
investors. Additionally, to the extent market participants want to roll
a position in EM options that expire in January to series at a later
expiration date and at a favorable or comparable price, they will be
prevented from doing so without the Commission's approval for continued
listing. Furthermore, in the time in which the Exchange may not list
additional series on the EM Index, FLEX trades which may result in the
creation of new FLEX series will be nullified, which may cause
confusion and prove burdensome to market participants.
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.\17\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \18\ 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) \19\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
    \19\ Id.
---------------------------------------------------------------------------

    The Exchange believes that the Commission's approval to continue
listing options on the EM Index will remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, protect investors and the public interest, because it
will allow the Exchange to continue to list EM Options in light of the
recent inclusion plan exceptions to MSCI's normal course of reviews. As
stated above, the 10% threshold is intended to prevent significant
changes over shorter periods of time in the EM Index that might
potentially change the character of the index or make it more
susceptible to manipulation. Given that the EM Index itself is designed
to capture and allow for continuous emerging market growth and trends
and that the 17% constituent increase appears to be only a temporary
departure from the normal incremental growth experienced by the EM
Index, the Exchange does not believe that the recent increase changes
the character of the EM Index or otherwise raises concerns of market
manipulation and/or disruption in the underlying markets. As a general
principle, increases in the elements that make up an index, such as
market capitalization and the weight and number component securities,
do not in and of themselves do not lead to manipulation and/or
disruption. This general principle applies to the recent inclusions,
therefore, the Exchange does not believe the index has become
susceptible to manipulation and/or disruption as a result. Although
significant decreases, not increases, would be more likely to raise
concerns related to manipulation and/or disruption in the underlying
markets, the Exchange notes that it does not believe that a decrease in
the number of constituents in any index, even by an amount greater than
10%, necessarily creates manipulation concerns. The Exchange also does
not believe that the EM Index is otherwise easily susceptible to
manipulation, as it is a broad-based index, its component securities
have a high market capitalization, it has an average daily volume of
over 42 billion, and no single component comprises more than 4.5% of
the index. The Exchange also notes that a total component securities
standard, as provided in Rule 4.10(i)(2), is not essential to the
continued listing standards for EM Index-based products, and, instead,
is an additional protection against potential manipulation and/or
disruption in the underlying securities. Because the EM Index has
continued to experience incremental increases in component securities
(notwithstanding the exceptional increase as a result of the 2019
inclusion plan), capitalization, and market liquidity in line with
continuous emerging market growth trends and the EM's overall
investment objectives, the Exchange does not believe that the continued
listing of the EM Index following the inclusion plan would circumvent
the additional protections of the component securities threshold nor
would it affect the protection of investors and the maintenance of a
fair and orderly market. In addition to this, the Exchange continues to
maintain and review country and index watch lists, as well as conduct
intermediate reviews on at least a quarterly basis. Thus, it continues
to be able to identify potential compliance concerns in connection with
the continued listing standards and may cease listing series on the EM
Index at any time if it determines that a change in the index's
composition would affect the protection of investors.
    As stated above, without the Commission's approval, the Exchange
would not be able to list new series of weekly or monthly options on
the EM Index after the January 2020 review. The Exchange believes that
the Commission's approval to continue listing options on the EM Index
is necessary for the protection of investors and the public interest,
as without such, the Exchange will be prevented from adding the weekly
and monthly EM options. Indeed, market participants that intend to
write optionality with weekly expiration dates in the first weeks of
January 2020 will, instead, have to take their volume OTC. OTC poses
counter party risks for investors that they would not normally
otherwise choose to be subject to if series on the EM Index were
available for trading. The inability to add the EM options would be a
detriment to market participants seeking to hedge positions in ETPs
based on the EM Index (e.g., EEM), options on EEM and EM futures, and
European-traded derivatives on the EM Index. Further, there are ETPs
that use options on the EM Index as part of their investment strategy.
Without the ability to add the EM options, these ETPs could be unable
to achieve their investment objective, to the detriment of investors.
Additionally, market participants that wish to roll a position in EM
options that expire in January to a position in a series with a later
expiration month at a favorable or comparable price, will be prevented
from doing so without this amendment. Furthermore, in the time in which
the Exchange may not list additional series on EM, FLEX trades which
may result in the creation of new FLEX series will be nullified, which
may cause confusion and prove burdensome to market participants. The
Exchange also notes that since the last inclusion phase was implemented
in MSCI's November 2019 review, multiple market participants have
expressed their concern to the Exchange regarding interruption of their
activity in EM Index series as a result of anticipated non-compliance
with the component securities threshold.

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

    The Exchange does not believe that the continued listing of options
on the EM Index, and the Commission's approval of which the Exchange
seeks, would impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
does not believe the continued listing would impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the Act as it would facilitate the continued,
uninterrupted trading of options on the EM Index, on which series are
currently listed and readily available for all market participants to
trade, as would be the case for series added following the approval for
the EM Index's continued listing.
    The Exchange does not believe that the continued listing of options
on the EM Index would impose any burden on intermarket competition that
is not necessary or appropriate in furtherance of the Act as it does
not alter the types of products offered by the Exchange in which market
participants already may choose to participate. The Commission's
approval would merely allow the Exchange to continue listing certain
index options in light of the MSCI's recent completion of its inclusion
plan and the Exchange would continue to adequately surveil for any
concerning changes.

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. 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 Exchange Act. Comments may be submitted
by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2019-122 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-2019-122. 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 10:00 a.m. and
3:00 p.m. Copies of this filing will also be available for inspection
and copying at the principal office of the Exchange. 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-2019-122 and should be submitted on
or before January 21, 2020.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful review, the Commission finds that the Exchange's
proposal is consistent with the requirements of the Exchange Act and
the rules and regulations thereunder applicable to a national
securities exchange.\20\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) \21\ of the
Exchange Act, which requires, among other things, that the rules of a
national securities exchange be designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system and, in general,
to protect investors and the public interest, and not be designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
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    \20\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \21\ 15 U.S.C. 78f(b)(5).
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    The Commission first notes the Exchange's statement that the 17%
increase in component securities from July 2019 to November 2019 under
MSCI's recent inclusion plans is an isolated departure from the 4.5%
average six-month increases the MSCI EM Index has since 2015.
Additionally, the Exchange points out that the 10% component-securities
threshold was the only threshold implicated as a result of MSCI's
inclusion plan, and that the other threshold tests applicable to the EM
Index under Rule 4.10(h) will be met as-of January 1, 2020.
    Furthermore, the Exchange explains that the 10% component-
securities threshold under Rule 4.10(i) is designed to prevent
significant adjustments to the number of EM Index constituents,
particularly decreases, that could: (i) Reduce component securities in
the EM Index to a point that would raise manipulation concerns; or (ii)
change the general character of the EM Index over which index options
are issued. The Exchange states that the 10% component-securities
threshold is designed to allow for the more rapid, shorter-term
changes, such as the recent 4.5% average six-month increases the MSCI
EM Index has typically and steadily experienced since 2015. The
Exchange also does not believe that the EM Index is otherwise easily
susceptible to manipulation, as it is a broad-based index, its
component securities have a high market capitalization, it has an
average daily volume of over 42 billion, and no single component
comprises more than 4.5% of the index. Finally, the Exchange asserts
that as a general principle, increases in the elements that make up an
index, such as market capitalization and the weight and number
component securities, do not in and of themselves lead to manipulation
and/or disruption; the Exchange then concludes that this general
principle applies to the recent MSCI inclusions of its EM Index.
    Based on the foregoing and after careful consideration, the
Commission finds it consistent with Exchange Act to to allow the
Exchange to open for trading any additional series of options of MSCI
EM options class notwithstanding the maintence standard set forth in
Rule 4.10(i). The Commission believes that allowing an exception to the
10% component-securities threshold under these specific circumstances
is consistent with the purpose behind Rule 4.10, and therefore, is
designed to promote just and equitable principles of trade and to
remove impediments to and perfect the mechanism of a free and open
market. Specifically, the increase in component securities under the
recent MSCI inclusion plan does not appear likely to lead to market
manipulation or disruption. Furthermore, this 17% increase in component
securities does not appear to change the general character of the EM
Index over which index options are issued. Accordingly, Commission
finds that the proposed rule change is consistent with the requirements
of the Exchange Act.
    The Exchange has requested that Commission finds good cause for
approving the proposed rule change prior to the 30th day after the date
of publication of notice of in the Federal Register. The Exchange
represents that, although MSCI announced the inclusion phase-in plan
prior to its implementation, the number of component securities
actually added (or removed as part of MSCI's regular quarterly reviews)
in each phase was unknown until the August 2019 and November 2019
review releases. Furthemore, the Exchange asserts that investors and
other market participants will likely be harmed if the Exchange is not
able to list new series of weekly or monthly options on the EM Index
after January 1, 2020. First, market participants that intend to write
optionality with weekly expiration dates in the first weeks of January
2020 will, instead, have to take their volume OTC; the Exchange
believes that OTC poses

counter party risks for investors that they would not normally
otherwise choose to be subject to if series on the EM Index were
available for trading. Next, the Exchange states that the inability to
add the EM options would be a detriment to market participants seeking
to hedge positions in ETPs based on the EM Index (e.g., EEM), options
on EEM and EM futures, and European-traded derivatives on the EM Index.
Likewise, the Exchange notes that there are ETPs that use options on
the EM Index as part of their investment strategy. Without the ability
to add the EM options, these ETPs could be unable to achieve their
investment objective, which the Exchange believes would be to the
detriment of investors. Additionally, the Exchange states that market
participants that wish to roll a position in EM options that expire in
January to a position in a series with a later expiration month at a
favorable or comparable price, will be prevented from doing so should
the Commission not approve this proposal prior to January 1, 2020.
    Based on the foregoing, the Commission believes that good cause
exists to issue this order approving a one-time exception to the 10%
component-securities threshold under Rule 4.10(i) prior to the 30th day
after the date of publication of notice of in the Federal Register.
Approving the proposed rule change on an accelerated basis should
protect investors and the public interest from potential harm that
might arise from a disruption in the listing of classes of options on
the MSCI Emerging Markets Index. Accordingly, pursuant to Section
19(b)(2) of the Exchange Act,\22\ the Commission finds good cause to
approve the proposed rule change on an accelerated basis.
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    \22\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\23\ that the proposed rule change (SR-CBOE-2019-122) be,
and it hereby is, approved on an accelerated basis.
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    \23\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-28215 Filed 12-30-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Rules and Regulations]
[Pages 41904-41905]
[FR Doc No: 2014-16821]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R10-OAR-2014-0228; FRL-9913-97-OAR]

Approval and Promulgation of Implementation Plans; Idaho Franklin
County Portion of the Logan Nonattainment Area; Fine Particulate Matter
Emissions Inventory

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Idaho Department of Environmental Quality (IDEQ) submitted
a revision to the State Implementation Plan (SIP) on December 19, 2012,
to address Clean Air Act (CAA or the Act) requirements for the Idaho
portion (hereafter referred to as ``Franklin County'') of the cross
border Logan, Utah-Idaho nonattainment area for the 2006 24-hour fine
particulate matter (PM2.5) national ambient air quality
standards. The EPA is approving the baseline emissions inventory
contained in IDEQ's submittal as meeting the requirement to submit a
comprehensive, accurate, and current inventory of direct
PM2.5 and PM2.5 precursor emissions in Franklin
County.

DATES: This final rule is effective on August 18, 2014.

ADDRESSES: The EPA has established a docket for this action under
Docket Identification No. EPA-R10-OAR-2014-0228. All documents in the
docket are listed on the http://www.regulations.gov Web site. Although
listed in the index, some information may not be publicly available,
i.e., Confidential Business Information or other information the
disclosure of which is restricted by statute. Certain other material,
such as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically through http://www.regulations.gov or in hard copy at EPA Region 10, Office of Air,
Waste, and Toxics, AWT-107, 1200 Sixth Avenue, Seattle, Washington
98101. The EPA requests that you contact the person listed in the FOR
FURTHER INFORMATION CONTACT section to schedule your inspection. The
Regional Office's official hours of business are Monday through Friday,
8:30 a.m. to 4:30 p.m., excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Jeff Hunt at<PHONE_NUMBER>,
<EMAIL_ADDRESS>or the above EPA, Region 10 address.

SUPPLEMENTARY INFORMATION: Throughout this document, wherever ``we,''
``us,'' or ``our'' is used, it is intended to refer to the EPA.

Table of Contents

I. Background
II. Final Action
III. Statutory and Executive Order Reviews

I. Background

    An explanation of the CAA requirements, a detailed explanation of
the revision, and the reasons for our proposed approval of the SIP
revision were provided in the notice of proposed rulemaking published
on May 14, 2014, and will not be restated here (79 FR 27543). The
public comment period for the proposed rule ended on June 13, 2014. The
EPA did not receive any relevant comments on the proposal.

II. Final Action

    The EPA is approving the PM2.5 and PM2.5
precursor emissions inventory submitted by IDEQ on December 19, 2012,
for the Franklin County, Idaho

portion of the cross border Logan, Utah-Idaho nonattainment area. The
EPA has determined that this action is consistent with sections 110 and
172(c)(3) of the CAA.

III. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501, et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601, et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     does not provide the EPA with the discretionary authority
to address, as appropriate, disproportionate human health or
environmental effects, using practicable and legally permissible
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and the EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. The EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by September 16, 2014. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Particulate
matter, Reporting and recordkeeping requirements, Sulfur oxides,
Volatile organic compounds.

    Dated: July 2, 2014.
Dennis J. McLerran,
Regional Administrator, Region 10.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for Part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart N--Idaho

0
2. Section 52.670 is amended in paragraph (e) in the table entitled
``EPA-Approved Idaho Nonregulatory Provisions and Quasi-Regulatory
Measures'' by adding the entry ``Fine Particulate Matter Baseline
Emissions Inventory'' at the end of the table to read as follows:

Sec.  52.670  Identification of plan.

* * * * *
    (e) * * *

                    EPA-Approved Idaho Nonregulatory Provisions and Quasi-Regulatory Measures
----------------------------------------------------------------------------------------------------------------
                                        Applicable          State
      Name of SIP provision            geographic or      submittal     EPA approval date         Comments
                                    nonattainment area       date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Fine Particulate Matter Baseline   Franklin County,         12/19/12  7/18/14 [Insert FR    Fine Particulate
 Emissions Inventory.               Logan UT-ID PM2.5                  citation ].           Matter; Franklin
                                    Nonattainment Area.                                      County.
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[FR Doc. 2014-16821 Filed 7-17-14; 8:45 am]
BILLING CODE 6560-50-P