[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Pages 67851-67856]
[FR Doc No: 2012-27600]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68177; File No. SR-BOX-2012-003]

Self-Regulatory Organizations; BOX Options Exchange LLC; Order
Approving Proposed Rule Change To Amend the Price Improvement Period

November 7, 2012.

I. Introduction

    On July 25, 2012, BOX Options Exchange LLC (``Exchange'' or
``BOX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities
Exchange Act of 1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ a
proposed rule change to amend Rule 7150, which relates to the
Exchange's Price Improvement Period (``PIP''), by modifying the order
of execution of quotes and orders that are on the BOX Book prior to the
start of a PIP. The proposed rule change was published for comment in
the Federal Register on August 9, 2012.\4\ The Commission received one
comment letter on the proposed rule change \5\ and a response to the
comment letter from the Exchange.\6\ This order approves the proposed
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 67592 (August 3,
2012), 77 FR 47681 (``Notice'').
    \5\ See Letter to Elizabeth M. Murphy, Secretary, Commission,
from Kurt Eckert, Principal, Wolverine Trading, LLC dated August 30,
2012 (``Wolverine Letter'').
    \6\ See Letter to Elizabeth M. Murphy, Secretary, Commission,
from Anthony D. McCormick, Chief Executive Officer, Exchange, dated
October 4, 2012 (``Exchange Response'').
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II. Description of the Proposal

    Currently, Rule 7150(f) permits a PIP to begin at or better than
the National Best Bid or Offer (``NBBO''). Further, Rule 7150(f)(1)
provides that, at the commencement of the PIP, all quotes and orders on
the BOX Book prior to the PIP Broadcast that are equal to or better
than (i) the Single-Priced Primary Improvement Order price, or (ii) the
PIP Start Price of a Max Improvement Primary Improvement Order, except
any proprietary quote or order from the Initiating Participant, will be
executed immediately against the customer order designated for the PIP
(``PIP Order'') in price/time priority.\7\ As a result, if an order is
submitted to the PIP and there is sufficient quantity on the BOX Book
prior to the PIP Broadcast to execute the

PIP Order, the PIP does not commence. The Exchange proposes to delete
the provision in Rule 7150(f)(1) relating to the execution of quotes
and orders on the BOX Book prior to the PIP's commencement and to amend
Rules 7150(f)(1) \8\ and (f)(4) to specify the priority for executing
such quotes and orders at the conclusion of the PIP.
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    \7\ Capitalized terms that are not otherwise defined herein are
defined as in the Exchange's Rules.
    \8\ The Exchange proposes to amend Rule 7150(f)(1) to specify
that at the conclusion of the PIP, the PIP Order shall be executed
as set forth in paragraphs (f)(3), (f)(4), (g), and (j).
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    Rule 7150(f)(4) sets forth exceptions to time priority in the
execution of the PIP Order. The Rule currently provides that no order
for a non-market maker broker-dealer account of an Options Participant
may be executed before all Public Customer order(s), whether an
Improvement Order, including a Customer PIP Order (``CPO''), or an
Unrelated Order,\9\ and all non-BOX Options participant broker-dealer
order(s) at the same price have been filled. The Exchange proposes to
amend Rule 7150(f)(4)(i) to specify further that all quotes and orders
on the BOX Book prior to the PIP Broadcast, excluding any proprietary
quote or order from the Initiating Participant, will be filled in time
priority before any other order at the same price.
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    \9\ The Exchange proposes a technical change to Rule
7150(f)(4)(i) to correct the current reference to ``unrelated'' by
replacing it with the term ``Unrelated Order.''
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    The Exchange also proposes to add new Rule 7150(g)(3). New Rule
7150(g)(3) provides that the Primary Improvement Order follows in time
priority all quotes and orders on the BOX Book prior to the PIP
Broadcast that are equal to the (i) Single-Priced Primary Improvement
Order price; or (ii) execution price of a Max Improvement Primary
Improvement Order that results in the balance of the PIP Order being
fully executed, except any proprietary quote or order from the
Initiating Participant. Any such proprietary quote or order from the
Initiating Participant will not be executed against the PIP Order
during or at the conclusion of the PIP.
    The Exchange noted that, among the quotes or orders on the BOX Book
prior to the PIP Broadcast at the final execution price level, the PIP
Order will be matched against the best prevailing quotes or orders on
BOX (except any pre-PIP Broadcast proprietary quote or order from the
Initiating Participant) in accordance with price/time priority, as set
forth in Rule 7130.\10\
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    \10\ See Notice, supra note 4, for examples of how quotes and
orders on the BOX Book prior to the PIP Broadcast would be executed
at the PIP's conclusion.
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    Under the proposal, Unrelated Orders submitted to BOX will continue
to execute as they do currently under Rules 7150(i) and 7150(j).
Accordingly, Unrelated Orders received after a PIP Broadcast will
execute in time priority after quotes and orders at the same price that
were on the BOX Book prior to the PIP Broadcast.
    The Exchange stated that in connection with this proposed rule
change, it will provide to the Commission the following monthly data,
and corresponding analysis, related to the PIP:\11\ (1) The number of
orders of 50 contracts or greater entered into the PIP auction; (2) the
percentage of all orders of 50 contracts or greater sent to BOX that
are entered into the PIP auction; (3) the spread in the option at the
time an order of 50 contracts or greater is submitted to the PIP
auction; (4) the percentage of PIP trades executed at the NBBO plus
$.01, plus $.02, plus $.03, etc.; and (5) the number of orders
submitted by Order Flow Providers (``OFPs'') and Market Makers when the
spread was at a particular increment (e.g., $.05, $.10, $.15, etc.).
Also, relative to item (5) above, for each spread, the Exchange will
provide the percentage of contracts in orders of fewer than 50
contracts and for orders of 50 contracts or greater submitted to the
PIP that were traded by: (a) the OFP or Market Maker that submitted the
order to the PIP; (b) BOX Market Makers assigned to the class; (c)
other BOX Participants; (d) Public Customer Orders (including CPOs);
(e) Unrelated Orders (orders in standard increments entered during the
PIP), and (f) quotes and orders on the BOX Book prior to the PIP
Broadcast.
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    \11\ See id. For orders of less than 50 contracts, the PIP is
currently operating on a pilot basis. See Securities Exchange Act
Release Nos. 49068 (January 13, 2004), 69 FR 2775 (January 20, 2004)
(Order Approving Proposed Rule Change Establishing Trading Rules for
Boston Options Exchange facility) and 66871 (April 27, 2012), 77 FR
26323 (May 3, 2012) (File No.10-206, In the Matter of the
Application of BOX Options Exchange LLC for Registration as a
National Securities Exchange Findings, Opinion, and Order of the
Commission) (``BOX Exchange Application Order''). The pilot program
is currently set to expire on July 18, 2013. See Securities Exchange
Act Release No. 67255 (June 26, 2012), 77 FR 39315 (July 2, 2012).
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    Further, BOX will provide, for the first and third Wednesday of
each month, the: (a) Total number of PIP auctions on that date; (b)
number of PIP auctions where the order submitted to the PIP was fewer
than 50 contracts; (c) number of PIP auctions where the order submitted
to the PIP was 50 contracts or greater; (d) number of PIP auctions
where the number of Participants (excluding the Initiating Participant)
was zero, one, two, three, four, etc. Finally, the Exchange will
provide information each month with respect to situations in which the
PIP is terminated prematurely or a Market Order, Limit Order, or BOX-
Top Order immediately execute with a PIP Order before the PIP's
conclusion. The following information will be provided: (1) The number
of times that a Market Order, Limit Order, or BOX-Top Order in the same
series on the same side of the market as the PIP Order prematurely
terminated the PIP, and (a) the number of times such orders were
entered by the same (or affiliated) firm that initiated the PIP that
was terminated, and (b) the number of times such orders were entered by
a firm (or an affiliate of such firm) that participated in the
execution of the PIP Order; (2) for the orders addressed in each of
items (1)(a) and (1)(b) above, the percentage of PIP premature
terminations due to the receipt, during the PIP, of a Market Order,
Limit Order, or BOX-Top Order in the same series on the same side of
the market as the PIP Order, and the average amount of price
improvement provided to the PIP Order where the PIP is prematurely
terminated; (3) the number of times that a Market Order, Limit Order,
or BOX-Top Order in the same series on the opposite side of the market
as the PIP Order immediately executed against the PIP Order, and (a)
the number of times such orders were entered by the same (or
affiliated) firm that initiated the PIP, and (b) the number of times
such orders were entered by a firm (or an affiliate of such firm) that
participated in the execution of the PIP Order; (4) for the orders
addressed in each of items (3)(a) and (3)(b) above, the percentage of
PIP early executions due to the receipt, during the PIP, of a Market
Order, Limit Order, or BOX-Top Order in the same series on the opposite
side of the market as the PIP Order; and the average amount of price
improvement provided to the PIP Order where the PIP Order is
immediately executed; and (5) the average amount of price improvement
provided to the PIP Order when the PIP runs for 100 milliseconds.
    BOX stated that, upon Commission approval of the proposal and at
least one week prior to implementation of the proposed rule change, it
will issue an Informational Circular to Options Participants informing
them of the proposal's implementation date.

III. Discussion and Commission Findings

    After careful review of the proposal, the comment letter, and the
Exchange Response, the Commission finds that the proposed rule change
is consistent with the requirements of the Act and the

rules and regulations thereunder applicable to a national securities
exchange and, in particular with Section 6(b)(5) \12\ of the Act, which
requires the rules of an exchange be designed, among other things, to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and to
perfect the mechanism for a free and open market and a national market
system, and, in general, to protect investors and the public interest.
In addition, the Commission finds the proposed rule change consistent
with Section 6(b)(8) \13\ of the Act, which requires that the rules of
the exchange do not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\14\
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    \12\ 15 U.S.C. 78f(b)(5).
    \13\ 15 U.S.C. 78f(b)(8).
    \14\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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    The Commission believes that the proposal is designed to provide
additional opportunities for customers to receive price improvement for
their PIP Orders. Under the current rule, if an order is submitted to
the PIP and there is sufficient quantity on the BOX Book prior to the
PIP Broadcast to execute the PIP Order at the PIP Start Price, the PIP
Order will execute against the BOX Book (assuming it is at the NBBO),
and the PIP will never commence.\15\ The Exchange's proposal to modify
the handling of such pre-existing quotes and orders on the BOX Book
will provide customers with a greater opportunity to receive price
improvement above the NBBO on BOX for their PIP Order because those
pre-existing quotes and orders on the BOX Book no longer will execute
against the PIP Order before the PIP can begin. Thus, the proposal may
benefit customers who submit PIP Orders priced at the NBBO by allowing
their orders to be exposed to competition in the PIP. The PIP Order
will continue to be guaranteed an execution price of at least the NBBO
and, as a result of the Exchange's proposal, will be given an
opportunity for execution at a price better than the NBBO. At the same
time, all quotes and orders on the BOX Book prior to the PIP Broadcast
at the PIP Start Price (excluding any proprietary quote or order from
the Initiating Participant) will be filled in time priority before any
other order at the same price at the conclusion of the PIP, assuming
they have not already been executed.
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    \15\ If the quotes and orders on the BOX Book at the PIP Start
Price are smaller in size than the PIP Order, then the portion of
the PIP Order that does not execute against such pre-existing quotes
and orders on the BOX Book will be submitted to the PIP auction.
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    The Commission received one comment letter from a BOX Options
Participant opposing the proposed rule change.\16\ According to the
commenter, the current requirement that the top of the BOX Book be
``swept'' prior to the PIP's commencement incentivizes market
participants to quote aggressively on BOX and allows retail orders to
interact with quotes on the Exchange. In addition, the commenter noted
that market participants could initiate a PIP without having a quote
either at the NBBO on any exchange or at the BBO on BOX.\17\ Therefore,
according to the commenter, the proposal diminishes the incentive for
robust quoting on BOX or the resting of public customer limit orders on
the BOX Book.\18\ The commenter suggested that the proposal be amended
to require that BOX must sweep the top of the BOX Book if the PIP
starts at the BOX BBO and that the Initiating Participant must be
quoting at the BOX BBO.\19\
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    \16\ See Wolverine Letter, supra note 5.
    \17\ With respect to the comment that market participants could
initiate a PIP without having a quote either at the NBBO on any
exchange or at the BBO on BOX, the Commission notes that this
feature is currently part of the PIP. The Exchange has not proposed
to revise this aspect of the PIP, and thus this issue is not before
the Commission.
    \18\ See Wolverine Letter, supra note 5, at 1-2.
    \19\ See Wolverine Letter, supra note 5, at 2.
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    The Exchange responded that, in its view, a customer's entire PIP
Order should have the opportunity for competing market participants to
provide price improvement to that customer order.\20\ The Exchange
stated that that if ``competing participants step up to provide a
better price for the customer order, it is appropriate, and consistent
with the federal securities laws, for that customer to receive an
execution at the best price available (price improvement through the
PIP auction) rather than the market maker quote on the book that is no
longer the best bid or offer.'' \21\
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    \20\ See Exchange Response, supra note 6, at 1.
    \21\ See Exchange Response, supra note 6, at 2.
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    The Commission recognizes the concern regarding the impact of the
proposed rule change on the overall incentives for market participants
to rest liquidity on the BOX Book. However, as discussed above, the
Commission also recognizes the potential benefit from the proposed rule
change with respect to customer PIP Orders priced at the NBBO by
providing customers with a greater opportunity to receive price
improvement on BOX for their PIP Orders by allowing those orders to be
exposed to competition in the PIP, before interacting with pre-existing
quotes and orders on the BOX Book at the PIP Start Price. In the
Commission's view, the Exchange's proposal is reasonably designed to
balance the potential for customers to receive price improvement in the
PIP, rather than to have their orders immediately executed against a
pre-existing quote on the BOX Book at the NBBO, with the potential to
impact Market Makers' or other market participants' incentives to quote
aggressively because they no longer will have the assurance that their
quotes at the NBBO will execute against the PIP Order before the PIP
begins. Quotes and orders that are on the BOX Book prior to the PIP
Broadcast will continue to be able to interact with non-PIP order flow
during the auction period. In addition, under the proposal, such quotes
and orders will have priority to interact with any PIP order flow at
the end of the auction period, unless the entire PIP order is price
improved. Moreover, Market Makers or other market participants that
wish to interact with the PIP Order can do so by submitting their own
Improvement Orders into the PIP auction. For these reasons, the
Commission believes that the proposal is consistent with the Act.
    The commenter also remarked that the proposal is defective because
it would allow a PIP auction to begin at the NBBO rather than requiring
at least a penny of price improvement over the BOX BBO.\22\ The
commenter suggested that the proposal be amended so that the PIP start
price would be at least a penny better than the BOX BBO.\23\ The
Commission notes, however, that instant proposal relates solely to the
priority and allocation of quotes and orders that are on the BOX Book
prior to a PIP's commencement. The Exchange has not proposed to revise
the start price of the PIP and thus this issue is not before the
Commission.\24\ Further, as discussed above, the Commission believes
that the proposed rule change, as submitted, is consistent with the
Act.
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    \22\ See Wolverine Letter, supra note 5, at 2.
    \23\ Id.
    \24\ Under Rule 7150(f), the PIP start price must be equal to or
better than the NBBO at the time of commencement of the PIP.
Accordingly, if the BOX BBO does not equal the NBBO, then the PIP
must start at a price that is better than the BOX BBO. See
Securities Exchange Act Release No. 59654 (March 30, 2009), 74 FR
15551 (April 6, 2009).
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    In addition, the commenter stated its belief that the proposal has
the potential to harm retail investors.\25\ According to the commenter,
the proposal serves ``to remove real orders from interaction with

lit markets at exchanges'' and reduces the NBBO to ``little more than a
reference price that is not the best available for retail investors.''
\26\ The commenter further noted that, to the extent price competition
decreases on an exchange, the NBBO increasingly loses value as a
reference price.\27\ The commenter stated its view that the proposal is
harmful to market efficiency in that it ``turns the exchange into an
internalization facilitator rather than a bona fide market with
multiple participants competing to offer the best prices to
customers.'' \28\
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    \25\ See Wolverine Letter, supra note 5, at 2.
    \26\ Id.
    \27\ Id.
    \28\ See Wolverine Letter, supra note 5, at 2.
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    The Exchange responded that the proposal promotes transparent
competition to ensure that customer orders receive the best price
possible.\29\ The Exchange noted that the PIP Broadcast is sent to any
Options Participant that wishes to receive it. According to the
Exchange, the PIP permits Market Makers to submit competing orders into
the PIP auction for their own account, and all non-market maker Options
Participants also may submit competing orders into the PIP auction for
their own account or for their customer accounts. The Exchange also
responded that Options Participants are actively competing for customer
orders in the PIP.\30\ Moreover, the Exchange noted that its Market
Makers are the Options Participants most likely to compete for
execution against customer orders in the PIP, even though their quotes
that are on the BOX Book at the NBBO currently execute prior to a PIP's
start.\31\ Any Options Participant (except for the Initiating
Participant), including Options Participants that have placed quotes
and orders on the BOX Book, may choose to submit Improvement Orders
into the PIP and compete for the PIP Order.\32\
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    \29\ See Exchange Response, supra note 6, at 2.
    \30\ According to the Exchange, for the eight-plus years that
the PIP has been in effect, approximately 70% of PIP auctions have
included competition for execution (i.e., at least one other Options
Participant has competed with the Initiating Participant for
execution of a customer order). The Exchange stated that almost 50%
of all PIP auctions included three or more Participants competing
for the PIP execution. Id.
    \31\ Id.
    \32\ Id.
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    The Commission believes that these features of the PIP are designed
to provide the opportunity for a competitive auction, which benefits
customers by giving them the chance for price improvement better than
the NBBO and thus the Exchange's proposal should not result in a
harmful impact on market efficiency. As discussed above, the proposal
is intended to provide increased opportunities for price improvement of
customer PIP Orders priced at the NBBO by permitting a PIP to go
forward without those quotes and orders on the BOX Book at the PIP
start price being executed against the PIP Order before the PIP auction
commences. Quotes and orders on the BOX Book prior to a PIP Broadcast
will retain their priority at the same price at the conclusion of the
PIP (assuming they have not already been executed on the BOX Book).
However, as noted above, the Exchange has committed to provide the
Commission with monthly data and corresponding analysis related to the
PIP, including statistics with respect to the execution of quotes and
orders on the BOX Book prior to the start of the PIP.\33\ This data
will assist the Commission and the Exchange in monitoring the impact of
the proposed rule change.
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    \33\ See supra note 11.
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IV. Section 11(a) of the Act

    Section 11(a)(1) of the Act \34\ prohibits a member of a national
securities exchange from effecting transactions on that exchange for
its own account, the account of an associated person, or an account
over which it or its associated person exercises discretion
(collectively, ``covered accounts''), unless an exception applies. The
Exchange represents that the proposed rule change is consistent with
Section 11(a) of the Act. Specifically, the Exchange believes that the
PIP is generally consistent with Section 11(a)(1)(G) of the Act and
Rule 11a1-1(T) thereunder because Options Participants that are not
Market Makers must yield priority in the PIP to all non-member orders
(i.e., to all Public Customer Orders and non-BOX Participant broker-
dealer orders) at the same price.\35\ In addition, the Exchange
believes that the proposed change to execute, against the PIP Order and
at the end of a PIP auction, those quotes and orders on the BOX Book
prior to the PIP Broadcast (if at the PIP Start Price) satisfies the
conditions of Rule 11a2-2(T) under the Act. For the reasons set forth
below, the Commission believes that the proposed rule change is
consistent with the requirements of Section 11(a) of the Act and the
rules thereunder.
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    \34\ 15 U.S.C. 78k(a)(1).
    \35\ See Notice, supra note 4 at n.12.
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A. Section 11(a)(1)(G) of the Act and Rule 11a1-1(T) Thereunder

    Section 11(a)(1)(G) of the Act provides an exception from the
general prohibition set forth in Section 11(a)(1) for any transaction
for a member's own account, provided that: (i) such member is primarily
engaged in the business of underwriting and distributing securities
issued by other persons, selling securities to customers, and acting as
broker, or any one or more of such activities, and whose gross income
normally is derived principally from such business and related
activities; and (ii) the transaction is effected in compliance with the
rules of the Commission, which, at a minimum, assure that the
transaction is not inconsistent with the maintenance of fair and
orderly markets and yields priority, parity, and precedence in
execution to orders for the account of persons who are not members or
associated with members of the exchange.\36\ In addition, Rule 11a1-
1(T) under the Act specifies that a transaction effected on a national
securities exchange for the account of a member which meets the
requirements of Section 11(a)(1)(G)(i) of the Act is deemed, in
accordance with the requirements of Section 11(a)(1)(G)(ii), to be not
inconsistent with the maintenance of fair and orderly markets and to
yield priority, parity, and precedence in execution to orders for the
account of non-members or persons associated with non-members of the
exchange, if such transaction is effected in compliance with certain
requirements.\37\
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    \36\ See 15 U.S.C. 78k(a)(1)(G).
    \37\ Rule 11a1-1(T)(a)(1)-(3) provides that each of the
following requirements must be met: (1) A member must disclose that
a bid or offer for its account is for its account to any member with
whom such bid or offer is placed or to whom it is communicated, and
any member through whom that bid or offer is communicated must
disclose to others participating in effecting the order that it is
for the account of a member; (2) immediately before executing the
order, a member (other than the specialist in such security)
presenting any order for the account of a member on the exchange
must clearly announce or otherwise indicate to the specialist and to
other members then present for the trading in such security on the
exchange that he is presenting an order for the account of a member;
and (3) notwithstanding rules of priority, parity, and precedence
otherwise applicable, any member presenting for execution a bid or
offer for its own account or for the account of another member must
grant priority to any bid or offer at the same price for the account
of a person who is not, or is not associated with, a member,
irrespective of the size of any such bid or offer or the time when
entered. See 17 CFR 240.11a1-1(T)(a)(1)-(3).
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    With respect to the PIP, the rules of the Exchange currently
prohibit any orders for the accounts of non-Marker Maker Options
Participants from being executed prior to the execution of Public
Customer Orders, whether an Improvement Order, including a Customer PIP
Order, or Unrelated Order, and non-BOX Participant broker-

dealer orders at the same price.\38\ The current proposed rule change
revises the treatment of quotes and orders on the BOX Book prior to the
PIP Broadcast, which orders will now be executed against the PIP Order
at the end of the PIP (if at the same price). However, the execution of
these quotes and orders against the PIP Order qualifies for a separate
exception to the Section 11(a) restrictions.\39\ Thus, because current
Exchange rules require Options Participants that are not Market Makers
\40\ to yield priority in the PIP to all non-member orders, the
Commission believes that the proposal with respect to transactions
effected through the PIP, other than for quotes and orders on the BOX
Book prior to the PIP Broadcast, is consistent with the requirements in
Section 11(a) of the Act and Rule 11a1-1(T) thereunder.\41\ The
Commission reminds exchanges and their members, however, that, in
addition to yielding priority to non-member orders at the same price,
members must also meet the other requirements under Section 11(a)(1)(G)
of the Act and Rule 11a1-1(T) thereunder (or satisfy the requirements
of another exception) to effect transactions for their own accounts.
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    \38\ See BOX Rules 7150(f)(4) and 7150(g)(3)(i).
    \39\ See infra Section IV. B.
    \40\ Section 11(a)(1)(A) of the Act provides an additional
exception to the general prohibition in Section 11(a) on an exchange
member effecting transactions for its own account if such member is
a dealer acting in the capacity of a market maker. See 15 U.S.C.
78k(a)(1)(A).
    \41\ The Commission has previously found that transactions
effected through the PIP are consistent with the requirements in
Section 11(a) of the Act and Rule 11a1-1(T) thereunder because
Options Participants that are not Market Makers are required to
yield priority in the PIP to all non-member orders, (i.e., to all
Public Customer Orders and non-Options Participant broker-dealer
orders) at the same price. See BOX Exchange Application Order, supra
note 11. The Commission believes that transactions effected through
the PIP, as amended by the proposed rule change, remain consistent
with the requirements Section 11(a) of the Act and Rule 11a1-1(T)
thereunder.
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B. ``Effect versus Execute'' and Rule 11a2-2(T) under the Act

    Rule 11a2-2(T) under the Act,\42\ known as the ``effect versus
execute'' rule, provides exchange members with another exception from
the Section 11(a)(1) prohibition. Rule 11a2-2(T) permits an exchange
member, subject to certain conditions, to effect transactions for
covered accounts by arranging for an unaffiliated member to execute the
transactions on the exchange. To comply with Rule 11a2-2(T)'s
conditions, a member: (1) May not be affiliated with the executing
member; (2) must transmit the order from off the exchange floor; (3)
may not participate in the execution of the transaction once it has
been transmitted to the member performing the execution; \43\ and (4)
with respect to an account over which the member has investment
discretion, neither the member nor its associated person may retain any
compensation in connection with effecting the transaction except as
provided in the Rule. The Exchange believes that the execution of
quotes and orders that are on the BOX Book prior to a PIP Broadcast
against a PIP Order will satisfy the requirements of Rule 11a2-
2(T).\44\ For the reasons set forth below, the Commission believes
that, under the proposed rule change, such executions will satisfy the
conditions of Rule 11a2-2(T).\45\
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    \42\ 17 CFR 240.11a2-2(T).
    \43\ The member may, however, participate in clearing and
settling the transaction. See Securities Exchange Act Release No.
14563 (March 14, 1978), 43 FR 11542 (March 17, 1978) (regarding the
NYSE's Designated Order Turnaround System (``1978 Release'')).
    \44\ For a more detailed discussion, see the description of the
proposed rule change in the Notice, supra note 4 and supra Section
II.
    \45\ See BOX Exchange Application Order, supra note 11.
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    Rule 11a2-2(T)'s first condition is that the order be executed by
an exchange member who is unaffiliated with the member initiating the
order. The Commission has stated that the requirement is satisfied when
automated exchange facilities, such as the Trading Host, are used, as
long as the design of these systems ensures that members do not possess
any special or unique trading advantages over non-members in handling
their orders after transmitting them to the Exchange.\46\ The Exchange
represents that the design of the BOX Book, including the mechanism
that executes quotes and orders resting on the Book prior to a PIP
against the PIP order at the conclusion of a PIP auction, ensures that
broker-dealers do not have any special or unique trading advantages in
handling their orders after transmission. Accordingly, the Exchange
believes that a member effecting a transaction through the BOX Book,
even where the quote or order on the Book prior to a PIP executes
against the PIP Order, satisfies the requirement for execution through
an unaffiliated member.
---------------------------------------------------------------------------

    \46\ In considering the operation of automated execution systems
operated by an exchange, the Commission has noted that, while there
is no independent executing exchange member, the execution of an
order is automatic once it has been transmitted into each system.
Because the design of these systems ensures that members do not
possess any special or unique trading advantages in handling their
orders after transmitting them to the exchange, the Commission has
stated that executions obtained through these systems satisfy the
independent execution requirement of Rule 11a2-2(T). See Securities
Exchange Act Release No. 15533 (January 29, 1979), 44 FR 6084
(January 31, 1979) (regarding the American Stock Exchange (``Amex'')
Post Execution Reporting System, the Amex Switching System, the
Intermarket Trading System, the Multiple Dealer Trading Facility of
the Cincinnati Stock Exchange, the PCX Communications and Execution
System, and the Philadelphia Stock Exchange (``Phlx'') Automated
Communications and Execution System (``1979 Release'')).
---------------------------------------------------------------------------

    According to the Exchange, the design of BOX ensures that no
Options Participant would enjoy any special control over the timing of
execution or special order handling advantages after order transmission
to the BOX Book. All orders on the BOX Book are centrally processed and
executed automatically by BOX. Orders sent to BOX would be transmitted
from remote terminals directly to the system by electronic means. Once
an order is submitted to the BOX Book, the order would be executed
against another order based on the established matching algorithms for
the BOX Book. In addition, as proposed, those quotes and orders on the
BOX Book prior to a PIP may trade with the PIP Order, or would execute
when orders or quotations on BOX match one another based on price/time
priority. The execution would not depend on the Options Participant but
rather upon what other orders are entered into BOX at or around the
same time as the subject order, what orders are on the BOX Book, or if
a PIP is initiated and what responses are received in response to the
PIP, and where the order is ranked based on the priority ranking
algorithm. At no time following the submission of an order to the BOX
Book would an Options Participant be able to acquire control or
influence over the result or timing of order execution, including
whether it is executed against an order in the PIP. Accordingly,
Options Participants could not control or influence the result or
timing of orders submitted to the BOX Book, even if such an order were
to match with the PIP Order. Based on the Exchange's representations,
the Commission believes that the proposal satisfies this requirement of
Rule 11a2-2(T).
    Second, Rule 11a2-2(T) requires orders for covered accounts be
transmitted from off the exchange floor. In the context of other
automated trading systems, the Commission has found that the off-floor
transmission requirement is met if a covered account order is
transmitted from a remote location directly to an exchange's floor by
electronic means.\47\ The Exchange

states that orders sent to the BOX Book, regardless of where it
executes within the BOX system, including the Book or the PIP, would be
transmitted from remote terminals directly to BOX by electronic means.
OFPs and Market Makers would only submit orders and quotes to BOX from
electronic systems from remote locations, separate from BOX. The
Exchange further represents that there are no other Options
Participants that would be able to submit orders to BOX other than OFPs
or Market Makers. Accordingly, the Commission believes that Options
Participants' orders electronically received by BOX satisfy the off-
floor transmission requirement for the purposes of the Rule.
---------------------------------------------------------------------------

    \47\ See, e.g., Securities Exchange Act Release Nos. 61419
(January 26, 2010), 75 FR 5157 (February 1, 2010) (SR-BATS-2009-031)
(approving BATS options trading); 59154 (December 28, 2008), 73 FR
80468 (December 31, 2008) (SR-BSE-2008-48) (approving equity
securities listing and trading on BSE); 53128 (January 13, 2006), 71
FR 3550 (January 23, 2006) (File No. 10-131) (approving The Nasdaq
Stock Market LLC); 44983 (October 25, 2001), 66 FR 55225 (November
1, 2001) (SR-PCX-00-25) (approving Archipelago Exchange); 29237 (May
24, 1991), 56 FR 24853 (May 31, 1991) (SR-NYSE-90-52 and SR-NYSE-90-
53) (approving NYSE's Off-Hours Trading Facility). See also 1978
Release and 1979 Release.
---------------------------------------------------------------------------

    Third, Rule 11a2-2(T) requires that the member not participate in
the execution of its order once it has been transmitted to the member
performing the execution. The Exchange represents that, at no time
following the submission of an order to the BOX Book, would an Options
Participant be able to acquire control or influence over the result or
timing of order execution, even if its order on the BOX Book may
execute with a PIP Order.\48\ According to the Exchange, upon
submission to BOX, an order would be executed against another order on
the BOX Book or against the PIP Order based on an established matching
algorithm. The execution would not depend on the Options Participant,
but rather upon what other orders are entered into BOX at or around the
same time as the subject order, what orders are on the BOX Book,
whether a PIP is initiated and what responses are received in response
to the PIP, and where the order is ranked based on the priority ranking
algorithm. As such, the Commission believes that the non-participation
requirement is met when orders are executed automatically on the BOX
Book, including if they execute against a PIP order.
---------------------------------------------------------------------------

    \48\ The member may only cancel or modify the order, or modify
the instructions for executing the order, but only from off the
Exchange floor. The Commission has stated that the non-participation
requirement is satisfied under such circumstances, so long as such
modifications or cancellations are also transmitted from off the
floor. See 1978 Release (stating that the ``non-participation
requirement does not prevent initiating members from canceling of
modifying orders (or the instructions pursuant to which the
initiating member wishes orders to be executed) after the orders
have been transmitted to the executing member, provided that any
such instructions are also transmitted from off the floor'').
---------------------------------------------------------------------------

    Fourth, in the case of a transaction effected for an account with
respect to which the initiating member or an associated person thereof
exercises investment discretion, neither the initiating member nor any
associated person thereof may retain any compensation in connection
with effecting the transaction, unless the person authorized to
transact business for the account has expressly provided otherwise by
written contract referring to Section 11(a) of the Act and Rule 11a2-
2(T).\49\ The Exchange has represented that, as a prerequisite for BOX
usage, if an Options Participant is to rely on Rule 11a2-2(T) for a
covered account transaction, the Options Participant must comply with
the limitations on compensation set forth in Rule 11a2-2(T).
---------------------------------------------------------------------------

    \49\ 17 CFR 240.11a2-2(T)(a)(2)(iv). In addition, Rule 11a2-
2(T)(d) requires a member or associated person authorized by written
contract to retain compensation, in connection with effecting
transactions for covered accounts over which such member or
associated person thereof exercises investment discretion, to
furnish at least annually to the person authorized to transact
business for the account a statement setting forth the total amount
of compensation retained by the member in connection with effecting
transactions for the account during the period covered by the
statement. See 17 CFR 240.11a2-2(T)(d). See also 1978 Release
(stating ``[t]he contractual and disclosure requirements are
designed to assure that accounts electing to permit transaction-
related compensation do so only after deciding that such
arrangements are suitable to their interests'').
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\50\ that the proposed rule change (SR-BOX-2012-003) be, and hereby
is, approved.
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\51\
---------------------------------------------------------------------------

    \51\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27600 Filed 11-13-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 103 (Wednesday, May 31, 2017)]
[Rules and Regulations]
[Pages 24856-24859]
[FR Doc No: 2017-10919]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[PA 200-4205; FRL-9959-23-Region 3]

Air Plan Approval; Pennsylvania; Update to Materials Incorporated
by Reference

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; administrative change.

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

SUMMARY: The Environmental Protection Agency (EPA) is updating the
materials that are incorporated by reference (IBR) into the
Pennsylvania state implementation plan (SIP). The regulations affected
by this update have been previously submitted by the Pennsylvania
Department of Environmental Protection (PADEP) and approved by EPA.
This update affects the SIP materials that are available for public
inspection at the National Archives and Records Administration (NARA)
and the EPA Regional Office.

DATES: This action is effective May 31, 2017.

ADDRESSES: SIP materials which are incorporated by reference into 40
CFR part 52 are available for inspection at the following locations:
Air Protection Division, U.S. Environmental Protection Agency, Region
III, 1650 Arch Street, Philadelphia, Pennsylvania 19103; or NARA. For
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.

FOR FURTHER INFORMATION CONTACT: Sharon McCauley,<PHONE_NUMBER>, or by
email at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    The SIP is a living document which a state revises as necessary to
address its unique air pollution problems. Therefore, EPA, from time to
time, must take action on SIP revisions containing new and/or revised
regulations as being part of the SIP. On May 22, 1997 (62 FR 27968),
EPA revised the procedures for incorporating by reference federally-
approved SIPs, as a result of consultations between EPA and the Office
of the Federal Register (OFR). The description of the revised SIP
document, IBR procedures and ``Identification of plan'' format are
discussed in further detail in the May 22, 1997 Federal Register
document. On February 25, 2005 (70 FR 9450), EPA published a document
in the Federal Register beginning the new IBR procedure for
Pennsylvania, including Philadelphia and Allegheny Counties. On January
3, 2007 (72 FR 200), March 25, 2009 (74 FR 13014), July 5, 2011 (76 FR
38992), and August 1, 2013 (78 FR 46516), EPA published updates to the
IBR material for Pennsylvania.
    Since the publication of the last IBR update, EPA has approved the
following regulatory changes to the following regulations and sections
for Pennsylvania and Allegheny County:

A. Added Regulations

    1. Additions of the following regulations or sections in 25 PA
Code, article III:
    a. Chapter 123 (Standards for Contaminants, Sulfur Compound
Emissions), sections 123.22(f) and 123.22(g).
    b. Chapter 129 (Standard for Sources), (Sources for VOCs), sections
67(a) and 67(b).
    2. Addition of title 65 (Pennsylvania Statute--Public Officers),
part II (Accountability), chapter 11 (Ethics, Standards, and Financial
Disclosure), sections 1101 (Short title of chapter), 1102
(Definitions), 1104 (Statement of financial interests required to be
filed), 1105 (Statement of financial interests) and 1109 (Penalties).
    3. Additions of the following regulations or sections in Allegheny
County article XXI:
    a. Additional definitions were added to part A (General), section
2102.20.
    b. Part D (Pollutant Emission Standards), section 2104.09.
    c. Part E (Source Emission and Operating Standards), subpart 7
(Miscellaneous VOC Sources), section 2105.80 through 2105.86 inclusive.

B. Revised Regulations

    1. Revisions to the following regulations or sections in 25 PA
Code, article III:
    a. Chapter 121 (General Provisions), section 121.1.
    b. Chapter 123 (Sulfur Compound Emissions), sections 123.22(a)
through (e) inclusive.
    c. Chapter 127 (Construction, Modification, Reactivation, and
Operation of Sources), subchapter I (Plan Approval and Operating Permit
Fees), section 127.701.
    d. Chapter 129 (Standards for Sources), (Sources of VOCs), sections
129.51, 129.67, and 129.77.
    e. Chapter 130 (Standards for Products), subchapter D (Adhesives,
Sealants, Primers and Solvents), section 130.703.
    f. Chapter 139 (Sampling and Testing), subchapter A (Sampling and
Testing Methods and Procedures--General), section 139.4.
    g. Chapter 139 (Sampling and Testing), subchapter A (Sampling and
Testing Methods and Procedures--Stationary Sources), section 139.16.
    2. Revisions to Allegheny County article XXI:
    a. Part A (General), sections 2101.10 and 2101.20.
    b. Part B (Permits Generally), sections 2102.04, 2102.06, 2102.08
and 2102.10.
    c. Part E (Source Emission and Operating Standards), subpart 1--VOC
Sources, sections 2105.10 and 2105.11.
    d. Part E (Source Emission and Operating Standards), subpart 5--
Open Burning and Abrasive Blasting Sources, section 2105.50.

C. Removed Regulations

    In 25 PA Code article III, chapter 130 (Standards for Products),
subchapter A (Portable Fuel Containers), sections 130.101 through
130.108 inclusive have been removed.

II. EPA Action

    In this action, EPA is announcing the update to the IBR material as
of July 1, 2016 and revising the text within 40 CFR 52.2020(b).
    EPA is revising our 40 CFR part 52 ``Identification of Plan'' for
the Commonwealth of Pennsylvania regarding incorporation by reference,
Sec.  52.2020(b). EPA is revising Sec.  52.2020(b)(1) to clarify that
all SIP revisions listed in paragraphs (c) and (d), regardless of
inclusion in the most recent ``update to the SIP compilation,'' are
fully federally enforceable under sections 110 and 113 of the CAA as of
the effective date of the final rulemaking in which EPA approved the
SIP revision, consistent with following our ``Approval and
Promulgations of Air Quality Implementation Plans; Revised Format of 40
CFR part 52 for Materials Being Incorporated by Reference,'' effective
May 22, 1997 (62 FR 27968). EPA is revising Sec.  52.2020(b)(2) to
clarify references to other portions of paragraph (b) with paragraph
(b)(2). EPA is revising paragraph (b)(3) to update address and contact
information.
    In the table for paragraph 40 CFR 52.2020(c)(1), EPA is taking the
following action:
    Rearrange entries in chapter 123 (Standards for Contaminants),
(Sulfur Compound Emissions), section 123.22 (a) through 123.22(e).

    EPA has further determined that the entries found in the tables of
paragraphs (c)(2), (c)(3), (d)(1), (d)(2), (d)(3), (d)(4), (e)(1), and
(e)(2) are correct in the CFR and need no additional editing at this
time.

III. Good Cause Exemption

    EPA has determined that this rule falls under the ``good cause''
exemption in section 553(b)(3)(B) of the Administrative Procedures Act
(APA) which, upon finding ``good cause,'' authorizes agencies to
dispense with public participation and section 553(d)(3) which allows
an agency to make a rule effective immediately (thereby avoiding the
30-day delayed effective date otherwise provided for in the APA). This
rule simply codifies provisions which are already in effect as a matter
of law in federal and approved state programs. Under section 553 of the
APA, an agency may find good cause where procedures are ``impractical,
unnecessary, or contrary to the public interest.'' Public comment is
``unnecessary'' and ``contrary to the public interest'' since the
codification only reflects existing law. Immediate notice in the CFR
benefits the public by removing outdated citations and incorrect table
entries.

IV. Incorporation by Reference

    In this rule, EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, EPA is finalizing the incorporation by reference of previously
EPA approved regulations promulgated by the Commonwealth of
Pennsylvania and federally effective prior to July 1, 2016. Therefore,
these materials have been approved by EPA for inclusion in the SIP,
have been incorporated by reference by EPA into that plan, are fully
federally enforceable under sections 110 and 113 of the CAA as of the
effective date of the final rulemaking of EPA's approval, and will be
incorporated by reference by the Director of the Federal Register in
the next update to the SIP compilation.\1\ EPA has made, and will
continue to make, these materials generally available through
www.regulations.gov and/or at the EPA Region III office (please contact
the person identified in the FOR FURTHER INFORMATION CONTACT section of
this preamble for more information).
---------------------------------------------------------------------------

    \1\ 62 FR 27968 (May 22, 1997).
---------------------------------------------------------------------------

V. Statutory and Executive Order Reviews

A. General Requirements

    Under the Clean Air Act (CAA), the Administrator is required to
approve a SIP submission that complies with the provisions of the CAA
and applicable federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the CAA. Accordingly,
this action merely approves state law as meeting federal requirements
and does not impose additional requirements beyond those imposed by
state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. This rule is not a
``major rule'' as defined by 5 U.S.C. 804(2).

C. Petitions for Judicial Review

    EPA has also determined that the provisions of section 307(b)(1) of
the CAA pertaining to petitions for judicial review are not applicable
to this action. Prior EPA rulemaking actions for each individual
component of the Pennsylvania SIP compilations had previously afforded
interested parties the opportunity to file a petition for judicial
review in the United States Court of Appeals for the appropriate
circuit within 60 days of such rulemaking action. Thus, EPA sees no
need in this action to reopen the 60-day period for filing such
petitions for judicial review for this ``Identification of plan''
update action for Pennsylvania.

List of Subjects in 40 CFR Part 52

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

    Dated: January 18, 2017.
Cecil Rodrigues,
Acting Regional Administrator, Region III.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart NN--Pennsylvania

0
2. Section 52.2020 is amended by:

0
 a. Revising paragraph (b); and
0
b. In paragraph (c)(1), revising the entries under ``Chapter 123--
Standards for Contaminants,'' ``Sulfur Compound Emission''.
    The revisions read as follows:

Sec.  52.2020  Identification of plan.

* * * * *
    (b) Incorporation by reference. (1) Material listed in paragraphs
(c) and (d) of this section with an EPA approval date prior to July 1,
2016, were approved for incorporation by reference by the Director of
the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part
51. Entries in paragraphs (c) and (d) of this section with the EPA
approval dates after July 1, 2016 for the Commonwealth of Pennsylvania,
have been approved by EPA for inclusion in the state implementation
plan and for incorporation by reference into the plan as it is
contained in this section, and will be considered by the Director of
the Federal Register for approval in the next update to the SIP
compilation.
    (2)(i) EPA Region III certifies that the following materials
provided by EPA at the addresses in paragraph (b)(3) of this section
are an exact duplicate of the officially promulgated Commonwealth
rules/regulations which have been approved as part of the state
implementation plan as of the dates referenced in paragraph (b)(1) of
this section:
    (A) Materials in Notebook ``40 CFR 52.2020(c)(1)-1. PA Department
of Environmental Protection (PA DEP); 2. PA Department of
Transportation (PA DOT).''
    (B) Materials in Notebook ``1. 40 CFR 52.2020(c)(2)--Allegheny
County Health Department (ACHD); 2. 40 CFR 52.2020(c)(3)--Philadelphia
Air Management Services (AMS).''
    (ii) EPA Region III certifies that the following materials provided
by EPA at the addresses in paragraph (b)(3) of this section are an
exact duplicate of the officially promulgated Commonwealth source-
specific requirements which have been approved as part of the state
implementation plan as of the dates referenced in paragraph(b)(1) of
this section. No additional revisions were made between April 1, 2013
and July 1, 2016:
    (A) [Reserved]
    (B) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 1, Part 1.''
    (C) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 1, Part 2.''
    (D) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 2, Part 1.''
    (E) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 2, Part 2.''
    (F) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 3.''
    (G) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 4.''
    (H) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 5.''
    (I) Materials in Notebook ``40 CFR 52.2020(d)(1)--Source-specific
Requirements--Volume 6.''
    (J) Materials in Notebook ``40 CFR 52.2020(d)(2)-(d)(4)--Source-
specific Requirements.''
    (3) Copies of the materials incorporated by reference into the
state implementation plan may be inspected at the Environmental
Protection Agency, Region III, 1650 Arch Street, Philadelphia,
Pennsylvania 19103. To obtain the material, please call the Regional
Office at<PHONE_NUMBER>. You may also inspect the material with an EPA
approval date prior to July 1, 2016 for the Commonwealth of
Pennsylvania at the National Archives and Records Administration
(NARA). For information on the availability of this material at NARA,
go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.
    (c) * * *
    (1) * * *

----------------------------------------------------------------------------------------------------------------
                                                                                Additional
          State citation              Title/subject          State       EPA approval date    explanation/ Sec.
                                                        effective date                         52.2063 citation
----------------------------------------------------------------------------------------------------------------
                          Title 25--Environmental Protection Article III--Air Resources
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                     Chapter 123--Standards for Contaminants
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                            Sulfur Compound Emissions
----------------------------------------------------------------------------------------------------------------
Section 123.21...................  General............         3/20/72  5/31/72, 37 FR       (c)(1).
                                                                         10842.
Section 123.22(a)................  Combustion units.          02/09/13  07/10/14, 79 FR      Amended sections
                                    [General                             39333.               123.22(a)
                                    provisions--air                                           123.22(b),
                                    basins and non-air                                        123.22(c),
                                    basins].                                                  123.22(d), and
                                                                                123.22(e).
123.22(b)........................  Combustion units--         08/01/79  08/08/79, 44 FR      (c)(20); correction
                                    Erie Air Basin.                      46465.               published 1/23/80
                                                                                (45 FR 5303).
123.22(b)........................  Combustion units--         02/09/13  07/10/14, 79 FR      Amended sections
                                    Erie Air Basin.                      39333.               123.22(a)
                                                                                123.22(b),
                                                                                123.22(c),
                                                                                123.22(d), and
                                                                                123.22(e).
123.22(c)........................  Combustion units--         08/21/82  07/05/83, 48 FR      (c)(53).
                                    Upper Beaver                         30630.
                                    Valley Air Basin.
123.22(c)........................  Combustion units--         02/09/13  07/10/14, 79 FR      Amended sections
                                    Upper Beaver                         39333.               123.22(a)
                                    Valley Air Basin.                                         123.22(b),
                                                                                123.22(c),
                                                                                123.22(d), and
                                                                                123.22(e).
123.22(d)........................  Combustion units--         01/01/81  12/16/81, 46 FR      (c)(40).
                                    Lower Beaver                         61267.
                                    Valley Air Basin.
123.22(d)........................  Combustion units--         02/09/13  07/10/14, 79 FR      Amended sections
                                    Lower Beaver                         39333.               123.22(a)
                                    Valley Air Basin.                                         123.22(b),
                                                                                123.22(c),
                                                                                123.22(d), and
                                                                                123.22(e).

123.22(e)........................  Combustion units--         10/01/78  06/04/79, 44 FR      (c)(18).
                                    Southeast PA Air                     31980.
                                    Basin.
123.22(e)........................  Combustion units--         02/09/13  07/10/14, 79 FR      Amended sections
                                    Southeast PA Air                     39333.               123.22(a)
                                    Basin.                                                    123.22(b),
                                                                                123.22(c),
                                                                                123.22(d), and
                                                                                123.22(e).
Section 123.22(f)................  Combustion units--         02/09/13  07/10/14...........  New section.
                                    Sampling and
                                    testing.
Section 123.22(g)................  Combustion units--         02/09/13  07/10/14, 79 FR      New section.
                                    Recordkeeping and                    39333.
                                    reporting.
Figure 4 [Graph].................  Sulfur Oxides--             3/20/72  5/31/72, 37 FR       (c)(1).
                                    Combustion Units.                    10842.
Section 123.24...................  Primary zinc                8/11/75  4/30/76, 41 FR       (c)(14).
                                    smelters.                            18077.
Section 123.25...................  Monitoring                 10/27/90  6/30/93, 58 FR       (c)(81).
                                    requirements.                        34911.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2017-10919 Filed 5-30-17; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 104 (Wednesday, May 30, 2012)]
[Notices]
[Page 31842]
[FR Doc No: 2012-13008]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER12-480-002.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: 05-21 to be effective 6/1/2013.
    Filed Date: 5/21/12.
    Accession Number: 20120521-5155.
    Comments Due: 5 p.m. ET 6/11/12.

    Docket Numbers: ER12-1711-001.
    Applicants: High Plains Ranch II, LLC.
    Description: High Plains Ranch II, LLC submits tariff filing per
35.17(b): Supplement to Application for Market-Based Rate Authority to
be effective 6/25/2012.
    Filed Date: 5/22/12.
    Accession Number: 20120522-5139.
    Comments Due: 5 p.m. ET 6/12/12.

    Docket Numbers: ER12-1823-000.
    Applicants: Southern California Edison Company.
    Description: 2009-2010 CWIP ROE Compliance Filing to be effective
6/1/2010.
    Filed Date: 5/21/12.
    Accession Number: 20120521-5152.
    Comments Due: 5 p.m. ET 6/11/12.

    Docket Numbers: ER12-1825-000.
    Applicants: EDF Industrial Power Services (CA), LLC.
    Description: EDF Industrial Power Services (CA), LLC submits tariff
filing per 35.12: Market-based Rate Schedule to be effective 5/22/2012.
    Filed Date: 5/22/12.
    Accession Number: 20120522-5128.
    Comments Due: 5 p.m. ET 6/12/12.

    Docket Numbers: ER12-1826-000.
    Applicants: Kansas City Power & Light Company.
    Description: Kansas City Power & Light Company submits tariff
filing per 35.13(a)(2)(iii: RS 136, Joint Operating Agreement (GMO) to
be effective 7/21/2012.
    Filed Date: 5/22/12.
    Accession Number: 20120522-5136.
    Comments Due: 5 p.m. ET 6/12/12.

    Take notice that the Commission received the following electric
securities filings:

    Docket Numbers: ES12-13-000.
    Applicants: AEP Texas North Company.
    Description: Second Supplemental Application under Section 204 of
the Federal Power Act of AEP Texas North Company for Authorization to
Issue Securities.
    Filed Date: 5/22/12.
    Accession Number: 20120522-5046.
    Comments Due: 5 p.m. ET 6/1/12.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and Sec.  385.214) on or
before 5:00 p.m. Eastern time on the specified comment date. Protests
may be considered, but intervention is necessary to become a party to
the proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: May 22, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-13008 Filed 5-29-12; 8:45 am]
BILLING CODE 6717-01-P