[Federal Register Volume 87, Number 229 (Wednesday, November 30, 2022)]
[Notices]
[Pages 73569-73576]
[FR Doc No: 2022-26076]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96383; File No. 4-551]

Program for Allocation of Regulatory Responsibilities Pursuant to
Rule 17d-2; Notice of Filing and Order Approving and Declaring
Effective an Amendment to the Plan for the Allocation of Regulatory
Responsibilities Among NYSE American LLC, Cboe BZX Exchange, Inc., the
Cboe EDGX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe Exchange, Inc.,
Nasdaq ISE, LLC, Financial Industry Regulatory Authority, Inc., NYSE
Arca, Inc., The Nasdaq Stock Market LLC, BOX Exchange LLC, Nasdaq BX,
Inc., Nasdaq PHLX LLC, Miami International Securities Exchange, LLC,
Nasdaq GEMX, LLC, Nasdaq MRX, LLC, MIAX PEARL, LLC, MIAX Emerald, LLC,
and MEMX LLC Concerning Options-Related Market Surveillance

November 23, 2022.
    Notice is hereby given that the Securities and Exchange Commission
(``Commission'') has issued an Order, pursuant to Section 17(d) of the
Securities Exchange Act of 1934 (``Act''),\1\ approving and declaring
effective an amendment to the plan for allocating regulatory
responsibility (``Plan'') filed on October 26, 2022, pursuant to Rule
17d-2 of the Act,\2\ by NYSE American LLC (``NYSE American''), Cboe BZX
Exchange, Inc., (``BZX''), the Cboe EDGX Exchange, Inc. (``EDGX''),
Cboe C2 Exchange, Inc. (``C2''), Cboe Exchange, Inc. (``Cboe''), Nasdaq
ISE, LLC (``ISE''), Financial Industry Regulatory Authority, Inc.
(``FINRA''), NYSE Arca, Inc. (``Arca''), The NASDAQ Stock Market LLC
(``Nasdaq''), BOX Exchange LLC (``BOX''), NASDAQ BX, Inc. (``BX''),
NASDAQ PHLX LLC (``PHLX''), Miami International Securities Exchange,
LLC (``MIAX''), Nasdaq GEMX, LLC (``Gemini''), Nasdaq MRX, LLC
(``Mercury''), MIAX PEARL, LLC (``MIAX PEARL''), and MIAX Emerald, LLC
(MIAX Emerald), and MEMX LLC (``MEMX'') (collectively, ``Participating
Organizations'' or ``parties'').
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    \1\ 15 U.S.C. 78q(d).
    \2\ 17 CFR 240.17d-2.
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I. Introduction

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

adopted Rule 17d-2 under the Act.\10\ Rule 17d-2 permits SROs to
propose joint plans for the allocation of regulatory responsibilities
with respect to their common members. Under paragraph (c) of Rule 17d-
2, the Commission may declare such a plan effective if, after providing
for notice and comment, it determines that the plan is necessary or
appropriate in the public interest and for the protection of investors,
to foster cooperation and coordination among the SROs, to remove
impediments to, and foster the development of, a national market system
and a national clearance and settlement system, and is in conformity
with the factors set forth in Section 17(d) of the Act. Commission
approval of a plan filed pursuant to Rule 17d-2 relieves an SRO of
those regulatory responsibilities allocated by the plan to another SRO.
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    \10\ See Securities Exchange Act Release No. 12935 (October 28,
1976), 41 FR 49091 (November 8, 1976).
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II. The Plan

    On December 11, 2007, the Commission declared effective the
Participating Organizations' Plan for allocating regulatory
responsibilities pursuant to Rule 17d-2.\11\ On April 11, 2008, the
Commission approved an amendment to the Plan to include NASDAQ as a
participant.\12\ On October 9, 2008, the Commission approved an
amendment to the Plan to clarify that the term Regulatory
Responsibility for options position limits includes the examination
responsibilities for the delta hedging exemption.\13\ On February 25,
2010, the Commission approved an amendment to the Plan to add Bats and
C2 as SRO participants and to reflect the name changes of the American
Stock Exchange LLC to the NYSE Amex LLC, and the Boston Stock Exchange,
Inc. to the NASDAQ OMX BX, Inc.\14\ On May 11, 2012, the Commission
approved an amendment to the Plan to add BOX as a participant to the
Plan.\15\ On December 5, 2012, the Commission approved an amendment to
the Plan to add MIAX as a participant to the Plan.\16\ On July 26,
2013, the Commission approved an amendment to the Plan to add Topaz
Exchange, LLC as a Participant to the Plan.\17\ On October 29, 2015,
the Commission approved an amendment to add EDGX as a Participant to
the Plan and to change the name of Topaz Exchange, LLC to ISE Gemini,
LLC.\18\ On February 16, 2016, the Commission approved an amendment to
add ISE Mercury, LLC as a Participant to the Plan.\19\ On February 2,
2017, the Commission approved an amendment to add MIAX PEARL as a
Participant to the Plan.\20\ On February 11, 2019, the Commission
approved an amendment to add MIAX Emerald as a Participant to the
Plan.\21\
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    \11\ See Securities Exchange Act Release No. 56941 (December 11,
2007), 72 FR 71723 (December 18, 2007) (File No. 4-551).
    \12\ See Securities Exchange Act Release No. 57649 (April 11,
2008), 73 FR 20976 (April 17, 2008) (File No. 4-551).
    \13\ See Securities Exchange Act Release No. 58765 (October 9,
2008), 73 FR 62344 (October 20, 2008) (File No. 4-551).
    \14\ See Securities Exchange Act Release No. 61588 (February 25,
2010), 75 FR 9970 (March 4, 2010) (File No. 4-551).
    \15\ See Securities Exchange Act Release No. 66975 (May 11,
2012), 77 FR 29712 (May 18, 2010) (File No. 4-551).
    \16\ See Securities Exchange Act Release No. 68362 (December 5,
2012), 77 FR 73719 (December 11, 2012) (File No. 4-551).
    \17\ See Securities Exchange Act Release No. 70052 (July 26,
2013), 78 FR 46665 (August 1, 2013) (File No. 4-551).
    \18\ See Securities Exchange Act Release No. 76310 (October 29,
2015), 80 FR 68354 (November 4, 2015) (File No. 4-551).
    \19\ See Securities Exchange Act Release No. 77149 (February 16,
2016), 81 FR 8781 (February 22, 2016) (File No. 4-551).
    \20\ See Securities Exchange Act Release No. 79930 (February 2,
2017), 82 FR 9807 (February 8, 2017) (File No. 4-551).
    \21\ See Securities Exchange Act Release No. 85097 (February 11,
2019), 84 FR 4871 (February 19, 2019) (File No. 4-551).
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    The Plan is designed to reduce regulatory duplication for common
members by allocating regulatory responsibility for certain options-
related market surveillance matters among the Participating
Organizations. Generally, under the Plan, a Participating Organization
will serve as the Designated Options Surveillance Regulator (``DOSR'')
for each common member assigned to it and will assume regulatory
responsibility with respect to that common member's compliance with
applicable common rules for certain accounts. When an SRO has been
named as a common member's DOSR, all other SROs to which the common
member belongs will be relieved of regulatory responsibility for that
common member, pursuant to the terms of the Plan, with respect to the
applicable common rules specified in Exhibit A to the Plan.

III. Proposed Amendment to the Plan

    On October 26, 2022, the parties submitted a proposed amendment to
the Plan. The primary purpose of the amendment is to add MEMX as a
Participant to the Plan, to reflect name changes of certain
Participating Organizations, and update rule references. The text of
the proposed amended 17d-2 plan is as follows (additions are
italicized; deletions are [bracketed]):
* * * * *

AGREEMENT BY AND AMONG NYSE AMERICAN LLC, CBOE BZX EXCHANGE, INC., CBOE
EDGX EXCHANGE INC., BOX EXCHANGE LLC, NASDAQ BX, INC., CBOE C2
EXCHANGE, INC., CBOE EXCHANGE, INC., NASDAQ ISE, LLC, NASDAQ GEMX, LLC,
NASDAQ MRX, LLC, FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC., NYSE
ARCA, INC., THE NASDAQ STOCK MARKET LLC, NASDAQ PHLX LLC, MIAMI
INTERNATIONAL SECURITIES EXCHANGE, LLC, MIAX PEARL, LLC, [AND] MIAX
EMERALD, LLC, AND MEMX LLC PURSUANT TO RULE 17d-2 UNDER THE SECURITIES
EXCHANGE ACT OF 1934

    This agreement (this ``Agreement''), by and among NYSE American LLC
(``NYSE American''), Cboe BZX Exchange, Inc., (``BZX''), the Cboe EDGX
Exchange, Inc. (``EDGX''), Cboe C2 Exchange, Inc. (``C2''), Cboe
Exchange, Inc. (``Cboe''), Nasdaq ISE, LLC (``ISE''), Financial
Industry Regulatory Authority, Inc. (``FINRA''), NYSE Arca, Inc.
(``Arca''), The Nasdaq[ASDAQ] Stock Market LLC (``Nasdaq''), BOX
Exchange LLC (``BOX''), Nasdaq[ASDAQ] BX, Inc. (``BX''), Nasdaq[ASDAQ]
PHLX LLC (``PHLX''), Miami International Securities Exchange, LLC
(``MIAX''), Nasdaq GEMX, LLC (``GEMX[Gemini]''), Nasdaq MRX, LLC
(``MRX[Mercury]''), MIAX PEARL, LLC (``MIAX PEARL''), [and] MIAX
Emerald, LLC (``MIAX Emerald''), and MEMX LLC (``MEMX''), is made
the[is] 10th[th] day of October 2007, and as amended the 31st day of
March 2008, the 1st day of October 2008, the 3rd day of February 2010,
the 25th[th] day of April 2012, [and ]the 19th day of November 2012,
[and ]the 30th day of May 2013, [and ]the 16th[th] day of October 2015,
[and ]the 29th day of January 2016, the 23rd[rd] day of January 2017,
[and ]the 8th day of January 2019, and the 18th day of October 2022,
pursuant to Section 17(d) of the Securities Exchange Act of 1934, as
amended (the ``Exchange Act''), and Rule 17d-2 thereunder (``Rule 17d-
2''), which allows for a joint plan among self-regulatory organizations
(``SROs'') to allocate regulatory obligations with respect to brokers
or dealers that are members of two or more of the parties to this
Agreement (``Common Members''). NYSE American, BZX, C2, Cboe, EDGX,
Gemini, ISE, Mercury, FINRA, Arca, Nasdaq, BOX, BX, PHLX, MIAX, MIAX
PEARL, [and]MIAX

Emerald, and MEMX, are collectively referred to herein as the
``Participants'' and individually, each a ``Participant.'' This
Agreement shall be administered by a committee known as the Options
Surveillance Group (the ``OSG'' or ``Group''), as described in Section
V hereof. Unless defined in this Agreement or the context otherwise
requires, the terms used herein shall have the meanings assigned
thereto by the Exchange Act and the rules and regulations thereunder.
    Whereas, the Participants desire to eliminate regulatory
duplication with respect to SRO market surveillance of Common Member
\1\ activities with regard to certain common rules relating to listed
options (``Options''); and
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    \1\ In the case of the BX and BOX, members are those persons who
are Options Participants (as defined in the BOX Exchange LLC Rules
and NASDAQ BX, Inc. Rules).
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    Whereas, for this purpose, the Participants desire to execute and
file this Agreement with the Securities and Exchange Commission (the
``SEC'' or ``Commission'') pursuant to Rule 17d-2.
    Now, Therefore, in consideration of the mutual covenants contained
in this Agreement, the Participants agree as follows:
    I. Except as otherwise provided in this Agreement, each Participant
shall assume Regulatory Responsibility (as defined below) for the
Common Members that are allocated or assigned to such Participant in
accordance with the terms of this Agreement and shall be relieved of
its Regulatory Responsibility as to the remaining Common Members. For
purposes of this Agreement, a Participant shall be considered to be the
Designated Options Surveillance Regulator (``DOSR'') for each Common
Member that is allocated to it in accordance with Section VII.
    II. As used in this Agreement, the term ``Regulatory
Responsibility'' shall mean surveillance, investigation and enforcement
responsibilities relating to compliance by the Common Members with such
Options rules of the Participants as the Participants shall determine
are substantially similar and shall approve from time to time, insofar
as such rules relate to market surveillance (collectively, the ``Common
Rules''). For the purposes of this Agreement the list of Common Rules
is attached as Exhibit A hereto, which may only be amended upon
unanimous written agreement by the Participants. The DOSR assigned to
each Common Member shall assume Regulatory Responsibility with regard
to that Common Member's compliance with the applicable Common Rules for
certain accounts.\2\ A DOSR may perform its Regulatory Responsibility
or enter an agreement to transfer or assign such responsibilities to a
national securities exchange registered with the SEC under Section 6(a)
of the Exchange Act or a national securities association registered
with the SEC under Section 15A of the Exchange Act. A DOSR may not
transfer or assign its Regulatory Responsibility to an association
registered for the limited purpose of regulating the activities of
members who are registered as brokers or dealers in security futures
products.
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    \2\ Certain accounts shall include customer (``C'' as classified
by the Options Clearing Corporation (``OCC'')) and firm (``F'' as
classified by OCC) accounts, as well as other accounts, such as
market maker accounts as the Participants shall, from time to time,
identify as appropriate to review.
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    The term ``Regulatory Responsibility'' does not include, and each
Participant shall retain full responsibility with respect to:
    (a) surveillance, investigative and enforcement responsibilities
other than those included in the definition of Regulatory
Responsibility;
    (b) any aspects of the rules of a Participant that are not
substantially similar to the Common Rules or that are allocated for a
separate surveillance purpose under any other
    (c) agreement made pursuant to Rule 17d-2. Any such aspects of a
Common Rule will be noted as excluded on Exhibit A.
    With respect to options position limits, the term Regulatory
Responsibility shall include examination responsibilities for the delta
hedging exemption. Specifically, the Participants intend that FINRA
will conduct examinations for delta hedging for all Common Members that
are members of FINRA notwithstanding the fact that FINRA's position
limit rule is, in some cases, limited to only firms that are not
members of an options exchange (i.e., access members). In such cases,
FINRA's examinations for delta hedging options position limit
violations will be for the identical or substantively similar position
limit rule(s) of the other Participant(s). Examinations for delta
hedging for Common Members that are non-FINRA members will be conducted
by the same Participant conducting position limit surveillance. The
allocation of Common Members to DOSRs for surveillance of compliance
with options position limits and other agreed to Common Rules is
provided in Exhibit B. The allocation of Common Members to DOSRs for
examinations of the delta hedging exemption under the options position
limits rules is provided in Exhibit C.
    III. Each year within 30 days of the anniversary date of the
commencement of operation of this Agreement, or more frequently if
required by changes in the rules of a Participant, each Participant
shall submit to the other Participants, through the Chair of the OSG,
an updated list of Common Rules for review. This updated list may add
Common Rules to Exhibit A, shall delete from Exhibit A rules of that
Participant that are no longer identical or substantially similar to
the Common Rules, and shall confirm that the remaining rules of the
Participant included on Exhibit A continue to be identically or
substantially similar to the Common Rules. Within 30 days from the date
that each Participant has received revisions to Exhibit A from the
Chair of the OSG, each Participant shall confirm in writing to the
Chair of the OSG whether that Participant's rules listed in Exhibit A
are Common Rules.
    IV. Apparent violation of another Participant's rules discovered by
a DOSR, but which rules are not within the scope of the discovering
DOSR's Regulatory Responsibility, shall be referred to the relevant
Participant for such action as is deemed appropriate by that
Participant.
    Notwithstanding the foregoing, nothing contained herein shall
preclude a DOSR in its discretion from requesting that another
Participant conduct an investigative or enforcement proceeding
(``Proceeding'') on a matter for which the requesting DOSR has
Regulatory Responsibility. If such other Participant agrees, the
Regulatory Responsibility in such case shall be deemed transferred to
the accepting Participant and confirmed in writing by the Participants
involved. Additionally, nothing in this Agreement shall prevent another
Participant on whose market potential violative activity took place
from conducting its own Proceeding on a matter. The Participant
conducting the Proceeding shall advise the assigned DOSR. Each
Participant agrees, upon request, to make available promptly all
relevant files, records and/or witnesses necessary to assist another
Participant in a Proceeding.
    V. The OSG shall be composed of one representative designated by
each of the Participants (a ``Representative''). Each Participant shall
also designate one or more persons as its alternate representative(s)
(an ``Alternate Representative''). In the absence of the
Representative, the Alternate Representative shall assume the powers,
duties and responsibilities of the Representative. Each Participant may
at any time replace its Representative and/or its Alternate
Representative to the

Group.\3\ A majority of the OSG shall constitute a quorum and, unless
otherwise required, the affirmative vote of a majority of the
Representatives present (in person, by telephone or by written consent)
shall be necessary to constitute action by the Group.
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    \3\ A Participant must give notice to the Chair of the Group of
such a change.
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    The Group will have a Chair, Vice Chair and Secretary. A different
Participant will assume each position on a rotating basis for a one-
year term. In the event that a Participant replaces a Representative
who is acting as Chair, Vice Chair or Secretary, the newly appointed
Representative shall assume the position of Chair, Vice Chair, or
Secretary (as applicable) vacated by the Participant's former
Representative. In the event a Participant cannot fulfill its duties as
Chair, the Participant serving as Vice Chair shall substitute for the
Chair and complete the subject unfulfilled term. All notices and other
communications for the OSG are to be sent in care of the Chair and, as
appropriate, to each Representative.
    VI. The OSG shall determine the times and locations of Group
meetings, provided that the Chair, acting alone, may also call a
meeting of the Group in the event the Chair determines that there is
good cause to do so. To the extent reasonably possible, notice of any
meeting shall be given at least ten business days prior to the meeting
date. Representatives shall always be given the option of participating
in any meeting telephonically at their own expense rather than in
person.
    VII. No less frequently than every two years, in such manner as the
Group deems appropriate, the OSG shall allocate Common Members that
conduct an Options business among the Participants (``Allocation''),
and the Participant to which a Common Member is allocated will serve as
the DOSR for that Common Member. Any Allocation shall be based on the
following principles, except to the extent all affected Participants
consent to one or more different principles:
    (a) The OSG may not allocate a Common Member to a Participant
unless the Common Member is a member of that Participant.
    (b) To the extent practicable, Common Members that conduct an
Options business shall be allocated among the Participants of which
they are members in such manner as to equalize as nearly as possible
the allocation among such Participants, provided that no Common Members
shall be allocated to FINRA. For example, if sixteen Common Members
that conduct an Options business are members only of three
Participants, none of which is FINRA, those Common Members shall be
allocated among the three Participants such that no Participant is
allocated more than six such members and no Participant is allocated
less than five such members. If, in the previous example, one of the
three Participants is FINRA, the sixteen Common Members would be
allocated evenly between the remaining Participants, so that the two
non-FINRA Participants would be allocated eight Common Members each.
    (c) To the extent practicable, Allocation shall take into account
the amount of Options activity conducted by each Common Member in order
to most evenly divide the Common Members with the largest amount of
activity among the Participants of which they are members. Allocation
will also take into account similar allocations pursuant to other plans
or agreements to which the Common Members are party to maintain
consistency in oversight of the Common Members.\4\
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    \4\ For example, if one Participant was allocated a Common
Member by another regulatory group that Participant would be
assigned to be the DOSR of that Common Member, unless there is good
cause not to make that assignment.
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    (d) To the extent practicable, Allocation of Common Members to
Participants will be rotated among the applicable Participants such
that a Common Member shall not be allocated to a Participant to which
that Common Member was allocated within the previous two years. The
assignment of DOSRs pursuant to the Allocation is attached as Exhibit B
hereto, and will be updated from time to time to reflect Common Member
Allocation changes.
    (e) The Group may reallocate Common Members from time-to-time, as
it deems appropriate.
    (f) Whenever a Common Member ceases to be a member of its DOSR, the
DOSR shall promptly inform the Group, which shall review the matter and
allocate the Common Member to another Participant.
    (g) A DOSR may request that a Common Member to which it is assigned
be reallocated to another Participant by giving 30 days written notice
to the Chair of the OSG. The Group, in its discretion, may approve such
request and reallocate the Common Member to another Participant.
    (h) All determinations by the Group with respect to Allocation
shall be made by the affirmative vote of a majority of the Participants
that, at the time of such determination, share the applicable Common
Member being allocated; a Participant shall not be entitled to vote on
any Allocation relating to a Common Member unless the Common Member is
a member of such Participant.
    VIII. Each DOSR shall conduct routine surveillance reviews to
detect violations of the applicable Common Rules by each Common Member
allocated to it with a frequency (daily, weekly, monthly, quarterly,
semi-annually or annually as noted on Exhibit A) not less than that
determined by the Group. The other Participants agree that, upon
request, relevant information in their respective files relative to a
Common Member will be made available to the applicable DOSR. In
addition, each Participant shall provide, to the extent not otherwise
already provided, information pertaining to its surveillance program
that would be relevant to FINRA or the Participant(s) conducting
routine examinations for the delta hedging exemption.
    At each meeting of the OSG, each Participant shall be prepared to
report on the status of its surveillance program for the previous
quarter and any period prior thereto that has not previously been
reported to the Group. In the event a DOSR believes it will not be able
to complete its Regulatory Responsibility for its allocated Common
Members, it will so advise the Group in writing promptly. The Group
will undertake to remedy this situation by reallocating the subject
Common Members among the remaining Participants. In such instance, the
Group may determine to impose a regulatory fee for services provided to
the DOSR that was unable to fulfill its Regulatory Responsibility.
    IX. Each Participant will, upon request, promptly furnish a copy of
the report or applicable portions thereof relating to any investigation
made pursuant to the provisions of this Agreement to each other
Participant of which the Common Member under investigation is a member.
    X. Each Participant will routinely populate a common database, to
be accessed by the Group relating to any formal regulatory action taken
during the course of a Proceeding with respect to the Common Rules
concerning a Common Member.
    XI. Any written notice required or permitted to be given under this
Agreement shall be deemed given if sent by certified mail, return
receipt requested, to any Participant to the attention of that
Participant's Representative, to the Participant's principal place of
business or by email at such address as the Representative shall have
filed in writing with the Chair.
    XII. The costs incurred by each Participant in discharging its
Regulatory Responsibility under this Agreement are

not reimbursable. However, any of the Participants may agree that one
or more will compensate the other(s) for costs incurred.
    XIII. The Participants shall notify the Common Members of this
Agreement by means of a uniform joint notice approved by the Group.
Each Participant will notify the Common Members that have been
allocated to it that such Participant will serve as DOSR for that
Common Member.
    XIV. This Agreement shall be effective upon approval of the
Commission. This Agreement may only be amended in writing duly approved
by each Participant. All amendments to this Agreement, excluding
changes to Exhibits A, B and C, must be filed with and approved by the
Commission.
    XV. Any Participant may manifest its intention to cancel its
participation in this Agreement at any time upon providing written
notice to (i) the Group six months prior to the date of such
cancellation, or such other period as all the Participants may agree,
and (ii) the Commission. Upon receipt of the notice the Group shall
allocate, in accordance with the provisions of this Agreement, those
Common Members for which the canceling Participant was the DOSR. The
canceling Participant shall retain its Regulatory Responsibility and
other rights, privileges and duties pursuant to this Agreement until
the Group has completed the reallocation as described above, and the
Commission has approved the cancellation.
    XVI. The cancellation of its participation in this Agreement by any
Participant shall not terminate this Agreement as to the remaining
Participants. This Agreement will only terminate following notice to
the Commission, in writing, by the then Participants that they intend
to terminate the Agreement and the expiration of the applicable notice
period. Such notice shall be given at least six months prior to the
intended date of termination, or such other period as all the
Participants may agree. Such termination will become effective upon
Commission approval.
    XVII. Participation in the Group shall be strictly limited to the
Participants and no other party shall have any right to attend or
otherwise participate in the Group except with the unanimous approval
of all Participants. Notwithstanding the foregoing, any national
securities exchange registered with the SEC under Section 6(a) of the
Act or any national securities association registered with the SEC
under section 15A of the Act may become a Participant to this Agreement
provided that: (i) such applicant has adopted rules substantially
similar to the Common Rules, and received approval thereof from the
SEC; (ii) such applicant has provided each Participant with a signed
statement whereby the applicant agrees to be bound by the terms of this
Agreement to the same effect as though it had originally signed this
Agreement and (iii) an amended agreement reflecting the addition of
such applicant as a Participant has been filed with and approved by the
Commission.
    XVIII. This Agreement is wholly separate from the multiparty
Agreement made pursuant to Rule 17d-2 by and among the NYSE
[MKT]American LLC, the Cboe[Bats] BZX Exchange, Inc., BOX [Options
]Exchange[,] LLC, the C2 [Options ]Exchange, Inc., the Cboe
Exchange[Chicago Board Options Exchange], Inc., the [International
Securities Exchange]Nasdaq ISE, LLC, Financial Industry Regulatory
Authority, The Nasdaq[ASDAQ] Stock Market LLC, the New York Stock
Exchange, LLC, the NYSE Arca, Inc., the Nasdaq[ASDAQ] BX, Inc., the
Nasdaq[ASDAQ] PHLX LLC, Miami International Securities Exchange, LLC,
Nasdaq GEMX[ISE Gemini], LLC, Nasdaq MRX[ISE Mercury], LLC, Cboe[Bats]
EDGX Exchange, Inc., [and]MIAX PEARL, LLC, and MIAX Emerald, LLC,
involving the allocation of regulatory responsibilities with respect to
common members for compliance with common rules relating to the conduct
by broker-dealers of accounts for listed options or index warrants
[entered into on January 23, 2017]approved by the SEC on February 12,
2019, and as may be amended from time to time.

Limitation of Liability

    No Participant nor the Group nor any of their respective directors,
governors, officers, employees or representatives shall be liable to
any other Participant in this Agreement for any liability, loss or
damage resulting from or claimed to have resulted from any delays,
inaccuracies, errors or omissions with respect to the provision of
Regulatory Responsibility as provided hereby or for the failure to
provide any such Regulatory Responsibility, except with respect to such
liability, loss or damages as shall have been suffered by one or more
of the Participants and caused by the willful misconduct of one or more
of the other Participants or its respective directors, governors,
officers, employees or representatives. No warranties, express or
implied, are made by the Participants, individually or as a group, or
by the OSG with respect to any Regulatory Responsibility to be
performed hereunder.

Relief From Responsibility

    Pursuant to Section 17(d)(1)(A) of the Exchange Act and Rule 17d-2,
the Participants join in requesting the Commission, upon its approval
of this Agreement or any part thereof, to relieve the Participants that
are party to this Agreement and are not the DOSR as to a Common Member
of any and all Regulatory Responsibility with respect to the matters
allocated to the DOSR.
* * * * *
    This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all such counterparts
shall together constitute one and the same Agreement.
    In Witness Whereof, the Participants hereto have executed this
Agreement as of the date and year first above written.

Exhibit A

Options Surveillance Group 17d-2 Agreement

Common Rules as of [January 8, 2019] October 18, 2022

              Violation I: Expiring Exercise Declarations (EED)--For Listed and FLEX Equity Options
----------------------------------------------------------------------------------------------------------------
                SRO                    Description of rule    Exchange rule number       Frequency of review
----------------------------------------------------------------------------------------------------------------
BZX................................  Exercise of Options     Rule 23.1............  At Expiration.
                                      Contracts.
BOX................................  Exercise of Options     Rule 9000............  At Expiration.
                                      Contracts.
C2.................................  Exercise of Options     [Rule 11.1] Ch. 6,     At Expiration.
                                      Contracts.              Sec. B.
Cboe...............................  Exercise of Options     [Rule 11.1] Rule       At Expiration.
                                      Contracts.              6.20(a)-(d), I&P .01-
                                                              .07.
EDGX...............................  Exercise of Options     Rule 23.1............  At Expiration.
                                      Contracts.
FINRA..............................  Exercise of Options     Rule 2360(b)(23).....  At Expiration.
                                      Contracts.
ISE................................  Exercise of Options     [Rule 1100] Options    At Expiration.
                                      Contracts.              6B, Section 1.

GEMX...............................  Exercise of Options     [Rule 1100] Options    At Expiration.
                                      Contracts.              6B, Section 1.
MRX................................  Exercise of Options     [Rule 1100] Options    At Expiration.
                                      Contracts.              6B, Section 1.
MIAX...............................  Exercise of Options     Rule 700.............  At Expiration.
                                      Contracts.
MIAX PEARL.........................  Exercise of Options     Rule 700.............  At Expiration.
                                      Contracts.
MIAX Emerald.......................  Exercise of Options     Rule 700.............  At Expiration.
                                      Contracts.
MEMX...............................  Exercise of Options     Rule 23.1............  At Expiration.
                                      Contracts.
Nasdaq.............................  Exercise of Options     [Options 5, Section    At Expiration.
                                      Contracts.              100] Options 6B,
                                                              Section 1.
Nasdaq BX..........................  Exercise of Options     [Options 5, Section    At Expiration.
                                      Contracts.              100] Options 6B,
                                                              Section 1.
Nasdaq PHLX........................  Exercise of Equity      [Rule 1042] Options    At Expiration.
                                      Options Contracts.      6B, Section 1.
NYSE Arca..........................  Exercise of Options     Rule 6.24-O..........  At Expiration.
                                      Contracts.
NYSE American......................  Exercise of Options     Rule 980.............  At Expiration.
                                      Contracts.
----------------------------------------------------------------------------------------------------------------

                          Violation II: Position Limits (PL)--For Listed Equity Options
----------------------------------------------------------------------------------------------------------------
                                       Description of rule
                SRO                    (for review as they    Exchange rule number       Frequency of review
                                          apply to PL)
----------------------------------------------------------------------------------------------------------------
BZX................................  Position Limits.......  Rule 18.7............  Daily.
                                     Exemptions from         Rule 18.8............  As Needed.
                                      Position.
                                     Liquidation Positions.  Rule 18.11...........  As Needed.
BOX................................  Position Limits.......  Rule 3120............  Daily.
                                     Exemptions from         Rule 3130............  As Needed.
                                      Position Limits.
                                     Liquidation Positions.  Rule 3160............  As Needed.
C2.................................  Position Limits.......  Ch. 8 [Rule 4.11]....  Daily.
                                     Liquidation of          Ch. 8 [Rule 4.14]....  As Needed.
                                      Positions.
Cboe...............................  Position Limits.......  Rule 8.30 [Rule 4.11]  Daily.
                                     Liquidation of          Rule 8.44 [Rule 4.14]  As Needed.
                                      Positions.
EDGX...............................  Position Limits.......  Rule 18.7............  Daily.
                                     Exemptions from         Rule 18.8............  As Needed.
                                      Position.
                                     Liquidation Positions.  Rule 18.11...........  As Needed.
FINRA..............................  Position Limits.......  Rule 2360(b)(3)......  Daily.
                                     Liquidation of          Rule 2360(b)(6)......  As Needed.
                                      Positions and
                                      Restrictions on
                                      Access.
ISE................................  Position Limits.......  ISE Options 9,         Daily.
                                                              Section 13 [Rule
                                                              412].
                                     Exemptions from         ISE Options 9,         As Needed.
                                      Position Limits.        Section 14 [Rule
                                                              413].
                                     Liquidating Positions.  ISE Options 9,         As Needed.
                                                              Section 17 [Rule
                                                              416].
GEMX...............................  Position Limits.......  GEMX Options 9,        Daily.
                                                              Section 13 [Rule
                                                              412].
                                     Exemptions from         GEMX Options 9,        As Needed.
                                      Position Limits.        Section 14 [Rule
                                                              413].
                                     Liquidating Positions.  GEMX Options 9,        As Needed.
                                                              Section 17 [Rule
                                                              416].
MRX................................  Position Limits.......  MRX Options 9,         Daily.
                                                              Section 13 [Rule
                                                              412].
                                     Exemptions from         MRX Options 9,         As Needed.
                                      Position Limits.        Section 14 [Rule
                                                              413].
                                     Liquidating Positions.  MRX Options 9,         As Needed.
                                                              Section 17 [Rule
                                                              416].
MIAX...............................  Position Limits.......  Rule 307.............  Daily.
                                     Exemptions from         Rule 308.............  As Needed.
                                      Position Limits.
                                     Liquidating Positions.  Rule 311.............  As Needed.
MIAX Pearl.........................  Position Limits.......  Rule 307.............  Daily.
                                     Exemptions from         Rule 308.............  As Needed.
                                      Position Limits.
                                     Liquidating Positions.  Rule 311.............  As Needed.
MIAX Emerald.......................  Position Limits.......  Rule 307.............  Daily.
                                     Exemptions from         Rule 308.............  As Needed.
                                      Position Limits.
                                     Liquidating Positions.  Rule 311.............  As Needed.
MEMX...............................  Position Limits.......  Rule 18.7............  Daily.
                                     Exemptions from         Rule 18.8............  As Needed.
                                      Position.
                                     Liquidation Positions.  Rule 18.11...........  As Needed.
Nasdaq.............................  Position Limits.......  NOM Options 9,         Daily.
                                                              Section 13 [Ch. III,
                                                              Sect. 7].
                                     Exemptions from         NOM Options 9,         As Needed.
                                      Position Limits.        Section 14 [Ch. III,
                                                              Sect. 8].
                                     Liquidation Positions.  NOM Options 9,         As Needed.
                                                              Section 17 [Ch. III,
                                                              Sect. 11].
Nasdaq BX..........................  Position Limits.......  BX Options 9, Section  Daily.
                                                              13 [Ch. III, Sect.
                                                              7].
                                     Exemptions from         BX Options 9, Section  As Needed.
                                      Position Limits.        14 [Ch. III, Sect.
                                                              8].
                                     Liquidation Positions.  BX Options 9, Section  As Needed.
                                                              17 [Ch. III, Sect.
                                                              11].

Nasdaq PHLX........................  Position Limits.......  PHLX Options 9,        Daily.
                                                              Section 13 [Rule
                                                              1001].
                                     Liquidation of          PHLX Options 9,        As Needed.
                                      Position.               Section 17 [Rule
                                                              1004].
NYSE Arca..........................  Position Limits.......  Rule 6.8-O...........  Daily.
                                     Liquidation of          Rule 6.7-O...........  As Needed.
                                      Position.
NYSE American......................  Position Limits.......  Rule 904.............  Daily.
                                     Liquidating Positions.  Rule 907.............  As Needed.
----------------------------------------------------------------------------------------------------------------

     Violation III: Large Options Position Report (LOPR)--For Listed and FLEX Equity Options and ETF Options
----------------------------------------------------------------------------------------------------------------
                                       Description of rule
                SRO                    (for review as they    Exchange rule number       Frequency of review
                                         apply to LOPR)
----------------------------------------------------------------------------------------------------------------
BZX................................  Reports Related to      Rule 18.10...........  Yearly.
                                      Position Limits.
BOX................................  Reports Related to      Rule 3150............  Yearly.
                                      Position Limits.
C2.................................  Reports Related to      Ch. 8[Rule 4.13(a)]..  Yearly.
                                      Position Limits.
                                     Reports Related to      Ch. 8 [Rule 4.13(b)].  Yearly.
                                      Position Limits.
                                     Reports Related to      Ch. 8 [Rule 4.13(d)].  Yearly.
                                      Position Limits.
Cboe...............................  Reports Related to      Rule 8.43(a) [Rule     Yearly.
                                      Position Limits.        4.13(a)].
                                     Reports Related to      Rule 8.43(b) [Rule     Yearly.
                                      Position Limits.        4.13(b)].
                                     Reports Related to      Rule 8.43(d) [Rule     Yearly.
                                      Position Limits.        4.13(d)].
EDGX...............................  Reports Related to      Rule 18.10...........  Yearly.
                                      Position Limits.
FINRA..............................  Options...............  Rule 2360(b)(5)......  Yearly.
ISE................................  Reports Related to      ISE Options 9,         Yearly.
                                      Options Position        Section 16--Reports
                                      Limits.                 Related to Options
                                                              Position Limits
                                                              [Rule 415].
GEMX...............................  Reports Related to      GEMX Options 9,        Yearly.
                                      Options Position        Section 16--Reports
                                      Limits.                 Related to Options
                                                              Position Limits
                                                              [Rule 415].
MRX................................  Reports Related to      MRX Options 9,         Yearly.
                                      Options Position        Section 16--Reports
                                      Limits.                 Related to Options
                                                              Position Limits
                                                              [Rule 415].
MIAX...............................  Reports Related to      Rule 310.............  Yearly.
                                      Position Limits.
MIAX PEARL.........................  Reports Related to      Rule 310.............  Yearly.
                                      Position Limits.
MIAX Emerald.......................  Reports Related to      Rule 310.............  Yearly.
                                      Position Limits.
MEMX...............................  Reports Related to      Rule 18.10...........  Yearly.
                                      Position Limits.
Nasdaq.............................  Reports Related to      NOM Options 9,         Yearly.
                                      Options Position        Section 16--Reports
                                      Limits.                 Related to Options
                                                              Position Limits [Ch.
                                                              III, Sect. 10].
Nasdaq BX..........................  Reports Related to      BX Options 9, Section  Yearly.
                                      Options Position        16--Reports Related
                                      Limits.                 to Options Position
                                                              Limits [Ch. III,
                                                              Sect. 10].
Nasdaq PHLX........................  Reporting of Options    PHLX Options 6E,       Yearly.
                                      Positions.              Section 2--Reporting
                                                              of Options
                                                              Positions, PHLX
                                                              Options 9, Section
                                                              13--Position Limits
                                                              [Rule 1003].
NYSE Arca..........................  Reporting of Options    Rule 6.6-O...........  Yearly.
                                      Positions.
NYSE American......................  Reporting of Options    Rule 906.............  Yearly.
                                      Positions.
----------------------------------------------------------------------------------------------------------------

                       Violation IV: Options Clearing Corporation (OCC) Adjustment Process
----------------------------------------------------------------------------------------------------------------
                                       Description of rule
                                      (as they apply to OCC
                SRO                    adjustments/by-laws    Exchange rule number       Frequency of review
                                      article V, section 1
                                        .01(a) and .02))
----------------------------------------------------------------------------------------------------------------
BZX................................  Adherence to Law......  Rule 18.1............  Yearly.
BOX................................  Adherence to Law......  Rule 3010............  Yearly.
C2.................................  Adherence to Law......  Ch. 8 [Rule 4.2].....  Yearly.
Cboe...............................  Adherence to Law......  Rule 8.2 [4.2].......  Yearly.
EDGX...............................  Adherence to Law......  Rule 18.1............  Yearly.
FINRA..............................  Violation of By-Laws    Rule 2360(b)(21).....  Yearly.
                                      and Rules of FINRA or
                                      The OCC.
ISE................................  Adherence to Law......  ISE Options 9,         Yearly.
                                                              Section 2 [Rule 401].
GEMX...............................  Adherence to Law......  GEMX Options 9,        Yearly.
                                                              Section 2 [Rule 401].
MRX................................  Adherence to Law......  MRX Options 9,         Yearly.
                                                              Section 2 [Rule 401].
MIAX...............................  Adherence to Law......  Rule 300.............  Yearly.
MIAX PEARL.........................  Adherence to Law......  Rule 300.............  Yearly.
MIAX...............................  Adherence to Law......  Rule 300.............  Yearly.
Emerald.

MEMX...............................  Adherence to Law......  Rule 18.1............  Yearly.
Nasdaq.............................  Adherence to Law......  NOM Options 9,         Yearly.
                                                              Section 2 [Ch. III,
                                                              Sect. 1].
Nasdaq BX..........................  Adherence to Law......  BX Options 9, Section  Yearly.
                                                              2 [Ch. III, Sect. 1].
Nasdaq PHLX........................  Violation of By-Laws    PHLX Options 9,        Yearly.
                                      And Rules Of OCC.       Section 24 [Rule
                                                              1050].
NYSE Arca..........................  Adherence to Law and    Rule 11.1............  Yearly.
                                      Good Business
                                      Practice.
NYSE American......................  Business Conduct......  Rule 16..............  Yearly.
----------------------------------------------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number 4-551 on the subject line.

Paper Comments

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

All submissions should refer to File Number 4-551. This file number
should be included on the subject line if email is used. To help the
Commission process and review your comments more efficiently, please
use only one method. The Commission will post all comments on the
Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed plan that are filed with the
Commission, and all written communications relating to the proposed
plan between the Commission and any person, other than those that may
be withheld from the public in accordance with the provisions of 5
U.S.C. 552, will be available for website viewing and printing in the
Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the plan also will be available for inspection and
copying at the principal offices of NYSE American, BZX, C2, Cboe, EDGX,
Gemini, ISE, Mercury, FINRA, Arca, Nasdaq, BOX, BX, PHLX, MIAX, MIAX
PEARL, MIAX Emerald, and MEMX. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number 4-551
and should be submitted on or before December 21, 2022.

V. Discussion

    The Commission finds that the proposed Amended Plan is consistent
with the factors set forth in Section 17(d) of the Act \22\ and Rule
17d-2(c) thereunder \23\ in that the proposed Amended Plan is necessary
or appropriate in the public interest and for the protection of
investors, fosters cooperation and coordination among SROs, and removes
impediments to and fosters the development of the national market
system. The Commission continues to believe that the Plan, as proposed
to be amended, is an achievement in cooperation among the SRO
participants. The Plan, as amended, will reduce unnecessary regulatory
duplication by allocating to the designated SRO the responsibility for
certain options-related market surveillance matters that would
otherwise be performed by multiple SROs. The Plan promotes efficiency
by reducing costs to firms that are members of more than one of the SRO
participants. In addition, because the SRO participants coordinate
their regulatory functions in accordance with the Plan, the Plan
promotes, and will continue to promote, investor protection. Under
paragraph (c) of Rule 17d-2, the Commission may, after appropriate
notice and comment, declare a plan, or any part of a plan, effective.
In this instance, the Commission believes that appropriate notice and
comment can take place after the proposed amendment is effective. The
primary purpose of the amendment is to add MEMX as a Participant and to
reflect the name changes of certain Participating Organizations. By
declaring it effective today, the amended Plan can become effective and
be implemented without undue delay. In addition, the Commission notes
that the prior version of this Plan was published for comment, and the
Commission did not receive any comments thereon.\24\ Finally, the
Commission does not believe that the amendment to the Plan raises any
new regulatory issues that the Commission has not previously
considered.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78q(d).
    \23\ 17 CFR 240.17d-2(c).
    \24\ See Securities Exchange Act Release No. 85097 (February 11,
2019), 84 FR 4871 (February 19, 2019) (File No. 4-551).
---------------------------------------------------------------------------

VI. Conclusion

    This order gives effect to the amended Plan submitted to the
Commission that is contained in File No. 4-551.
    It is further ordered that those SRO participants that are not the
DOSR as to a particular common member are relieved of those regulatory
responsibilities allocated to the common member's DOSR under the
amended Plan to the extent of such allocation.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(34).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-26076 Filed 11-29-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 225 (Wednesday, November 21, 2018)]
[Rules and Regulations]
[Pages 58739-58740]
[FR Doc No: 2018-25363]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2018-0782; Special Conditions No. 25-736-SC]

Special Conditions: Garmin International, Textron Aviation Inc.
Model 560XL; Airplane Electronic-System Security Protection From
Unauthorized Internal Access

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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

SUMMARY: These special conditions are issued for the Textron Aviation
Inc. (Textron) Model 560XL, formerly known as, prior to July 29, 2015,
the Cessna Model 560XL. This airplane, as modified by Garmin
International (Garmin), will have a novel or unusual design feature
when compared to the state of technology envisioned in the
airworthiness standards for transport category airplanes. This design
feature is Garmin G5000 avionics that allow internal connection to
previously isolated data networks, which are connected to systems that
perform functions required for the safe operation of the airplane. The
applicable airworthiness regulations do not contain adequate or
appropriate safety standards for this design feature. These special
conditions contain the additional safety standards that the
Administrator considers necessary to establish a level of safety
equivalent to that established by the existing airworthiness standards.

DATES: This action is effective on Garmin on November 21, 2018. Send
comments on or before January 7, 2019.

ADDRESSES: Send comments identified by docket no. FAA-2018-0782 using
any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket website, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478).
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Varun Khanna, Airplane and Flightcrew
Interface Section, AIR-671, Transport Standards Branch, Policy and
Innovation Division, Aircraft Certification Service, Federal Aviation
Administration, 2200 South 216th Street, Des Moines, Washington 98198;
telephone and fax<PHONE_NUMBER>; email [email protected].

SUPPLEMENTARY INFORMATION: The substance of these special conditions
has been published in the Federal Register for public comment in
several prior instances with no substantive comments received. The FAA
therefore finds it unnecessary to delay the effective date and finds
that good cause exists for making these special conditions effective
upon publication in the Federal Register.

Comments Invited

    We invite interested people to take part in this rulemaking by
sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.
    We will consider all comments we receive by the closing date for
comments. We may change these special conditions based on the comments
we receive.

Background

    On March 21, 2017, Garmin applied for a supplemental type
certificate to install Garmin G5000 avionics connected to the aircraft-
control domain and airline information-services domain

in Textron Model 560XL airplanes. This is a twin-engine, turbofan
airplane with seating for 12 passengers and two crew members, and a
maximum takeoff weight of 20,200 pounds.

Type Certification Basis

    Under the provisions of title 14, Code of Federal Regulations (14
CFR) 21.101, Garmin must show that the Textron Model 560XL airplane, as
changed, continues to meet the applicable provisions of the regulations
listed in Type Certificate No. A22CE, or the applicable regulations in
effect on the date of application for the change, except for earlier
amendments as agreed upon by the FAA.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Textron Model 560XL airplane
because of a novel or unusual design feature, special conditions are
prescribed under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the applicant apply for a supplemental type
certificate to modify any other model included on the same type
certificate to incorporate the same novel or unusual design feature,
these special conditions would also apply to the other model under
Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Textron Model 560XL airplane must comply with the fuel-
vent and exhaust-emission requirements of 14 CFR part 34, and the
noise-certification requirements of 14 CFR part 36.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type
certification basis under Sec.  21.101.

Novel or Unusual Design Features

    The Textron Model 560XL airplane, as modified by Garmin, will
incorporate the following novel or unusual design features:
    Garmin G5000 avionics that allow internal connection to previously
isolated data networks, which are connected to systems that perform
functions required for the safe operation of the airplane.

Discussion

    The Textron Model 560XL airplane architecture is novel or unusual
for commercial transport airplanes because it allows connection to
previously isolated data networks connected to systems that perform
functions required for the safe operation of the airplane. This data
network and design integration creates a potential for unauthorized
persons to access the aircraft-control domain and airline information-
services domain, and presents security vulnerabilities related to the
introduction of computer viruses and worms, user errors, and
intentional sabotage of airplane electronic assets (networks, systems,
and databases) critical to the safety and maintenance of the airplane.
    The existing regulations and guidance material did not anticipate
this type of system architecture or electronic access to airplane
systems. Furthermore, 14 CFR regulations and the current system-safety
assessment policy and techniques do not address potential security
vulnerabilities, which could be exploited by unauthorized access to
airplane networks and servers. Therefore, these special conditions
ensure that the security of airplane systems and networks is not
compromised by unauthorized wired or wireless internal access.
    These special conditions contain the additional safety standards
that the Administrator considers necessary to establish a level of
safety equivalent to that established by the existing airworthiness
standards.

Applicability

    As discussed above, these special conditions are applicable to the
Textron Model 560XL airplane. Should Garmin apply at a later date for a
supplemental type certificate to modify any other model included on
Type Certificate No. A22CE to incorporate the same novel or unusual
design feature, these special conditions would apply to that model as
well.

Conclusion

    This action affects only certain novel or unusual design features
on one model of airplane. It is not a rule of general applicability and
affects only the applicant who applied to the FAA for approval of the
features on the airplane.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

Authority Citation

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701, 44702, 44704.

The Special Conditions

    Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for Textron Model 560XL airplanes as
modified by Garmin, for airplane electronic-system security protection
from unauthorized internal access.
    1. The applicant must ensure that the design provides isolation
from, or airplane electronic-system security protection against, access
by unauthorized sources internal to the airplane. The design must
prevent inadvertent and malicious changes to, and all adverse impacts
upon, airplane equipment, systems, networks, or other assets required
for safe flight and operations.
    2. The applicant must establish appropriate procedures to allow the
operator to ensure that continued airworthiness of the airplane is
maintained, including all post-type-certification modifications that
may have an impact on the approved electronic-system security
safeguards.

    Issued in Des Moines, Washington, on November 15, 2018.
Chris R. Parker,
Acting Manager, Transport Standards Branch, Policy and Innovation
Division, Aircraft Certification Service.
[FR Doc. 2018-25363 Filed 11-20-18; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 38 (Monday, February 26, 2018)]
[Notices]
[Page 8259]
[FR Doc No: 2018-03793]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OECA-2013-0347; FRL-9972-72-OEI]

Information Collection Request Submitted to OMB for Review and
Approval; Comment Request; NESHAP for Epoxy Resin and Non-Nylon
Polyamide Production (Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency has submitted an
information collection request (ICR), ``NESHAP for Epoxy Resin and Non-
Nylon Polyamide Production'' (EPA ICR No. 1681.09, OMB Control No.
2060-0290), to the Office of Management and Budget (OMB) for review and
approval in accordance with the Paperwork Reduction Act. This is a
proposed extension of the ICR, which is currently approved through
April 30, 2018. Public comments were previously requested, via the
Federal Register, on June 29, 2017 during a 60-day comment period. This
notice allows for an additional 30 days for public comments. A fuller
description of the ICR is given below, including its estimated burden
and cost to the public. An agency may neither conduct nor sponsor, and
a person is not required to respond to, a collection of information
unless it displays a currently-valid OMB control number.

DATES: Additional comments may be submitted on or before March 28,
2018.

ADDRESSES: Submit your comments, referencing Docket ID Number EPA-HQ-
OECA-2013-0347, to: (1) EPA online using www.regulations.gov (our
preferred method), or by email to [email protected], or by mail to:
EPA Docket Center, Environmental Protection Agency, Mail Code 28221T,
1200 Pennsylvania Ave. NW, Washington, DC 20460; and (2) OMB via email
to [email protected]. Address comments to OMB Desk Officer
for EPA.
    EPA's policy is that all comments received will be included in the
public docket without change, including any personal information
provided, unless the comment includes profanity, threats, information
claimed to be Confidential Business Information (CBI), or other
information whose disclosure is restricted by statute.

FOR FURTHER INFORMATION CONTACT: Patrick Yellin, Monitoring,
Assistance, and Media Programs Division, Office of Compliance, Mail
Code 2227A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax number:
(202) 564-0050; email address: [email protected].

SUPPLEMENTARY INFORMATION: Supporting documents, which explain in
detail the information that the EPA will be collecting, are available
in the public docket for this ICR. The docket can be viewed online at
www.regulations.gov or in person at the EPA Docket Center, WJC West,
Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone
number for the Docket Center is<PHONE_NUMBER>. For additional
information about EPA's public docket, visit: http://www.epa.gov/dockets.
    Abstract: The affected entities are subject to the General
Provisions of the NESHAP (40 CFR part 63, subpart A), and any changes,
or additions to the Provisions are specified at 40 CFR part 63, subpart
W. In general, all NESHAP standards require initial notifications,
performance tests, and periodic reports by the owners/operators of the
affected facilities. They are also required to maintain records of the
occurrence and duration of any startup, shutdown, or malfunction in the
operation of an affected facility, or any period during which the
monitoring system is inoperative. These notifications, reports, and
records are essential in determining compliance, and are required of
all affected facilities subject to NESHAP. Sources are owners/operators
of facilities which produce polymers and resins from epichlorohydrin
and sources which manufacture epichlorohydrin-modified non-nylon
polyamide resins. EPA and delegated states will use the information
identify new, modified, reconstructed, or existing sources, or process
changes which may affect the source's status and to ensure that
affected sources are meeting the standards.
    Form numbers: None.
    Respondents/affected entities: Epoxy resin and non-nylon polyamide
production facilities.
    Respondent's obligation to respond: Mandatory (40 CFR part 63,
subpart W).
    Estimated number of respondents: 7 (total).
    Frequency of response: Initially, occasionally, quarterly and
semiannually.
    Total estimated burden: 3,940 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
    Total estimated cost: $424,000 (per year), which includes $9,000 in
either annualized capital or operation & maintenance costs.
    Changes in the estimates: There is a small decrease in the
respondent labor hours in this ICR compared to the previous ICR. This
is due to two considerations: (1) There was a duplicative recordkeeping
line item for SSM periods in the previous renewal; and (2) records of
initial performance test, performance evaluations, and initial
notifications have passed the five-year record retention period and are
no longer required. These burden activities have been removed in this
ICR.

Courtney Kerwin,
Director, Regulatory Support Division.
[FR Doc. 2018-03793 Filed 2-23-18; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 63 (Friday, April 1, 2016)]
[Notices]
[Pages 18900-18902]
[FR Doc No: 2016-07332]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77455; File No. SR-NYSEARCA-2016-48]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Schedule of Fees and Charges for Exchange Services

March 28, 2016.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on March 21, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 the NYSE Arca Equities Schedule of
Fees and Charges for Exchange Services (``Fee Schedule'') to exclude
from its average daily volume and certain other calculations any
trading day on which the Exchange is not open for the entire trading
day and/or a disruption affects an Exchange system that lasts for more
than 60 minutes during regular trading hours. The Exchange proposes to
implement the fee change effective March 21, 2016. The proposed rule
change is available on the Exchange's Web site at www.nyse.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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the Fee Schedule to exclude from its
average daily volume (``ADV'') and certain other calculations any
trading day on which the Exchange is not open for the entire trading
day and/or a disruption affects an Exchange system that lasts for more
than 60 minutes during regular trading hours.
    The Exchange proposes to implement the fee change effective March
21, 2016.\4\
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    \4\ The Exchange originally filed to amend the Fee Schedule on
March 1, 2016 (SR-NYSEArca-2016-38) and withdrew such filing on
March 11, 2016. The Exchange subsequently filed to amend the Fee
Schedule on March 11, 2016 (SR-NYSEArca-2016-45) and withdrew such
filing on March 21, 2016.
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    As provided in the Fee Schedule, many of the NYSE Arca Equities'
transaction fees and credits are based on trading and liquidity
thresholds that ETP Holders and Market Makers must satisfy in order to
qualify for the particular rates. The Exchange believes that trading
suspensions or disruptions can prevent ETP Holders and Market Makers
from engaging in normal trading and liquidity provision in their
assigned securities, leading to decreased trading volume compared to
ADV. Accordingly, for purposes of determining transaction fees and
credits for these market participants based on trading and liquidity
thresholds [sic], ADV, and United States consolidated ADV (``US
CADV''),\5\ the Exchange proposes to add text to current footnote 1 to
the Fee Schedule that would permit the Exchange to exclude any trading
day on which (1) the Exchange is not open for the entire trading day
and/or (2) a disruption affects an Exchange system that lasts for more
than 60 minutes during regular trading hours. The proposal is
consistent with the Exchange's options rules \6\ and the rules of its
affiliate NYSE MKT LLC.\7\
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    \5\ US CADV is used here as defined in footnote 3 to the Fee
Schedule.
    \6\ See NYSE Arca Options Fees and Charges (``The Exchange may
exclude from the calculation of ADV contracts traded any day that
(1) the Exchange is not open for the entire trading day and/or (2) a
disruption affects an Exchange system that lasts for more than 60
minutes during regular trading hours (``Exchange System
Disruption'').
    \7\ See NYSE Amex Options Fee Schedule (``The Exchange may
exclude from its monthly calculations of contract volume any day
that (1) the Exchange is not open for the entire trading day and/or
(2) a disruption affects an Exchange system that lasts for more than
60 minutes during regular trading hours'').
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    The proposed change would allow the Exchange to exclude days where
the Exchange declares a trading halt in all securities or honors a
market-wide trading halt declared by another market. The Exchange's
proposal would be similar to the current provision in the Fee Schedule
whereby trade activity on days when the market closes early and on the
date of the annual reconstitution of the Russell Investments Indexes
does not count toward volume tiers.\8\ Generally, the market closes
early on certain days before or after a holiday observed by the
Exchange.\9\ The Exchange's proposal is consistent with the rules of
other self-regulatory organizations.\10\
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    \8\ See footnote 1 in the Fee Schedule.
    \9\ For example, the Exchange is closed on Thanksgiving Day and
closes early on the Friday immediately following Thanksgiving Day
(e.g., Friday, November 25, 2016).
    \10\ See notes 5-6 [sic], supra; see also NASDAQ Stock Market
LLC Rule 7018(j) (``For purposes of determining average daily volume
and total consolidated volume under this rule, any day that the
market is not open for the entire trading day will be excluded from
such calculation.''); International Securities Exchange, LLC Fee
Schedule (``For purposes of determining Priority Customer ADV, any
day that the regular order book is not open for the entire trading
day or the Exchange instructs members in writing to route their
orders to other markets may be excluded from such calculation;
provided that the Exchange will only remove the day for members that
would have a lower ADV with the day included.'').
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    The Exchange believes that artificially low volumes of trading on
days when the Exchange is not open for the entire trading day reduces
the average daily activity of ETP Holders and Market Makers both daily
and monthly. Given the decreased trading volumes, the numerator for the
monthly calculation (e.g., trading volume) would be correspondingly
lower, but the denominator for the threshold calculations (e.g., the
number of trading days) would not necessarily be decreased, and could
result in an unintended increase in the cost of trading on the
Exchange, a result that is unintended and undesirable to the Exchange
and its ETP Holders and

Market Makers. The Exchange believes that the authority to exclude days
when the Exchange is not open for the entire trading day would provide
ETP Holders and Market Makers with greater certainty as to their
monthly costs and diminish the likelihood of an effective increase in
the cost of trading.\11\
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    \11\ See, e.g., Securities Exchange Act Release No. 70657
(October 10, 2013), 78 FR 62899 (October 22, 2103) (SR-ISE-2013-51).
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    Similarly, the Exchange proposes to modify its Fee Schedule to
permit the Exchange to exclude from the above calculations any trading
day where a disruption affects an Exchange system that lasts for more
than 60 minutes during regular trading hours even if such disruption
would not be categorized as a complete outage of the Exchange's system.
Such a disruption may occur where a [sic] certain securities traded on
the Exchange are unavailable for trading due to an Exchange system
issue or where, while the Exchange may be able to perform certain
functions with respect to accepting and processing orders, the Exchange
may be experiencing a failure to another significant process, such as
routing to other market centers, that would lead ETP Holders and Market
Makers that rely on such process to avoid utilizing the Exchange until
the Exchange's entire system was operational. Once again, the
Exchange's proposal is consistent with the rules of other self-
regulatory organizations.\12\
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    \12\ See notes 5-6 [sic], supra; see also BATS BZX Exchange Fee
Schedule (``The Exchange excludes from its calculation of ADAV and
ADV shares added or removed on any day that the Exchange's system
experiences a disruption that lasts for more than 60 minutes during
regular trading hours (``Exchange System Disruption''), on any day
with a scheduled early market close and on the last Friday in June
(the ``Russell Reconstitution Day'').
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    The Exchange is not proposing any changes to the level of rebates
currently being provided on the Exchange, or to the thresholds required
to achieve each rebate tier.
    The proposed change is also not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that ETP
Holders and Market Makers would have in complying with the proposed
change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\13\ in general, and furthers the
objectives of sections 6(b)(4) and 6(b)(5) of the Act,\14\ in
particular, because it provides for the equitable allocation of
reasonable dues, fees, and other charges among its members, issuers and
other persons using its facilities and does not unfairly discriminate
between customers, issuers, brokers or dealers.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that it is reasonable to permit the Exchange
to eliminate from the calculation days on which the market is not open
the entire trading day because it preserves the Exchange's intent
behind adopting volume-based pricing. Similarly, the Exchange believes
that its proposal is reasonable because it will help provide ETP
Holders and Market Makers with a greater level of certainty as to their
level of rebates and costs for trading in any month where the Exchange
experiences such a system disruption on one or more trading days. The
Exchange is not proposing to amend the thresholds ETP Holders and
Market Makers must achieve to become eligible for, or the dollar value
associated with, the tiered rebates or fees. By eliminating the
inclusion of a trading day on which a system disruption occurs, the
Exchange would almost certainly be excluding a day that would otherwise
lower ETP Holders' and Market Makers' trading volume, thereby making it
more likely for them to meet the minimum or higher tier thresholds and
thus incentivizing ETP Holders and Market Makers to increase their
participation on the Exchange in order to meet the next highest tier.
    The Exchange further believes that the proposal is reasonable
because the proposed exclusion seeks to avoid penalizing ETP Holders
and Market Makers that might otherwise qualify for certain tiered
pricing but that, because of a significant Exchange system problem,
would not participate to the extent that they might have otherwise
participated. The Exchange believes that certain systems disruptions
could preclude some ETP Holders and Market Makers from submitting
orders to the Exchange even if such issue is not actually a complete
systems outage.
    Finally, the Exchange believes that the proposal is equitable and
not unfairly discriminatory because the methodology for the monthly
calculations would apply equally to all ETP Holders and Market Makers
and to all volume tiers. The Exchange notes that, although unlikely,
there is some possibility that a certain small proportion of ETP
Holders and Market Makers may have a higher ADV as a percentage of
average daily volume with their activity included from days where the
Exchange experiences a system disruption. The Exchange believes that
the proposal would still be equitable and not unfairly discriminatory
given that the impacted universe is potentially quite small and that
the proposal would benefit the overwhelming majority of market
participants and would make the overall cost of trading on the Exchange
more predictable for ETP Holders and Market Makers as a whole.
    For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.

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

    In accordance with section 6(b)(8) of the Act,\15\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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    \15\ 15 U.S.C. 78f(b)(8).
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    The Exchange believes that, with respect to monthly calculations
for rebates, there are very few instances where the exclusion would be
invoked, and if invoked, would have little or no impact on trading
decisions or execution quality. On the contrary, the Exchange believes
that the proposal fosters competition by avoiding a penalty to ETP
Holders and Market Makers for days when trading on the Exchange is
disrupted for a significant portion of the day and would result in
lower total costs to end users, a positive outcome of competitive
markets. Further, other options exchanges have adopted rules that are
substantially similar to the change in ADV calculation being proposed
by the Exchange.\16\
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    \16\ See note 5 [sic], supra.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The foregoing rule change is effective upon filing pursuant to
section 19(b)(3)(A) \17\ of the Act and subparagraph (f)(2) of Rule
19b-4 \18\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of

investors, or otherwise in furtherance of the purposes of the Act. If
the Commission takes such action, the Commission shall institute
proceedings under section 19(b)(2)(B) \19\ of the Act to determine
whether the proposed rule change should be approved or disapproved.
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    \19\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEARCA-2016-48 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-NYSEARCA-2016-48. 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-NYSEARCA-2016-48 and should
be submitted on or before April 22, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Robert W. Errett,
Deputy Secretary.
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    \20\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-07332 Filed 3-31-16; 8:45 am]
 BILLING CODE 8011-01-P


Operations Facility: Mail to: 2525 East Market Street P. O. Box 21688 Greensboro, NC 27401 Greensboro, NC 27420 1688 June 16, 2005 To: Jan Matuszko In response to your request for information concerning our wastewater discharges, Lorillard Tobacco Company offers the following:

EFFLUENT GUIDELINES PROGRAM STUDY OF THE TOBACCO INDUSTRY

Sources and Types of wastewaters, with average volumes o Process wastewater, all without pretreatment  Domestic   toilets/ drinking/ cafeteria   46,000 gpd  Boiler and cooling tower feed   Lorillard has an NPDES permit to discharge non contact cooling water / condensate and boiler blow down to the storm drain. 2 of the 3 boilers on site can also discharge to the sanitary sewer.   43,000 gpd  Wash down water   Equipment wash down pits and various pieces of equipment, which are cleaned daily   55,000 gpd  Air pollution control   Scrubbers in 2 process areas   15,000 gpd  Air washers that provide room humidity   53,000 gpd  Average Volume of process wastewater   212,000 gpd o NPDES / Stormwater  Boiler and cooling tower feed   Lorillard has an NPDES permit to discharge non contact cooling water / condensate and boiler blowdown to the storm drain.

 Groundwater pumped from basement building sumps  Foundation drains

Applicable treatment and pollution prevention ( flow and pollutant) technologies and Effectiveness  Cafeteria   grease trap; outside contractor pumps out the trap approximately every two months

Cost information related to applicable treatment and pollution prevention technologies  $ 3480 annual cost of grease trap cleaning

Pollutant concentrations o Process wastewater, which discharges directly to POTW  no pretreatment ( data is a 3 year average) The City of Greensboro conducts the semi annual monitoring required per our Significant Industrial User wastewater discharge permit  BOD 527 mg/ L  Suspended Solids 204 mg/ L  Nicotine 0.162 mg/ L ( not done by City)

 Cadmium < 0.002 mg/ L  Chromium < 0.010 mg/ L  Copper 0.134 mg/ L  Lead < 0.025 mg/ L  Nickel < 0.010 mg/ L  Zinc 0.130 mg/ L  Silver < 0.010 mg/ L  Cyanide < 0.005 mg/ L  Selenium < 0.025 mg/ L o NPDES / Stormwater  Temperature 28oC  Oil and Grease < 5.0 mg/ L  pH 6.09

Process Wastewater Discharge Destination  Directly to POTW   no pretreatment

Current permit allocations/ restrictions and monitoring requirements o City SIU permit to POTW  Flow: 6 month average of 300,000 gallons per day  pH: > 5.0  BOD 750 mg/ L  Suspended Solids 357 mg/ L  Cadmium 0.003 mg/ L  Chromium 0.05 mg/ L  Copper 0.25 mg/ L  Lead 0.1 mg/ L  Nickel 0.021 mg/ L  Zinc 0.357 mg/ L  Silver 0.01 mg/ L  Cyanide 0.01 mg/ L o NPDES General Permit NCG500000 for non contact cooling water/ condensate and boiler blowdown  Flow ( monitoring only)

 Temperature: < 32oC  Oil and Grease: monthly average of 15.0 mg/ L with daily maximum of 20.0 mg/ L  pH: within range 6.0   9.0 o NPDES General Permit NCG060000 for stormwater discharges  TSS: 100 mg/ L  Oil and Grease: 30 mg/ L  pH: within range 6.0   9.0  COD: 120 mg/ L  Total Rainfall ( monitoring only)

 Event Duration ( monitoring only)

 Total Flow ( monitoring only)

If you have any questions, please call.

Sincerely,

Victoria Lovelace, REM, CHMM Manager, Environment & Safety Affairs Lorillard Tobacco Company ( 336) 335 6790 vlovelace @ lortobco. com