[Federal Register Volume 79, Number 115 (Monday, June 16, 2014)]
[Rules and Regulations]
[Pages 34242-34245]
[FR Doc No: 2014-14019]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2013-0479; FRL-9912-00-OAR]
RIN 2060-AS25

Regulation of Fuels and Fuel Additives: Extension of Compliance
and Attest Engagement Reporting Deadlines for 2013 Renewable Fuel
Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final
action on two components of its annual rulemaking to establish the 2014
renewable fuels standards under Clean Air Act 211(o). The two
components are an extension of the compliance demonstration deadline
for the 2013 renewable fuel standards, and the associated deadline for
submission of attest engagement reports for the 2013 renewable fuel
standards. The new deadlines are September 30, 2014 and January 30,
2015, respectively. This action ensures timely amendment of existing
deadlines, before compliance obligations would otherwise go into
effect. The EPA intends to finalize the remaining portion of its
rulemaking to establish the 2014 renewable fuel standards shortly.

DATES: This rule is effective June 16, 2014.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-HQ-OAR-2013-0479. All documents in the docket are
listed in the www.regulations.gov index. Although listed in the index,
some information is not publicly available, e.g., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, will be publicly available only
in hard copy. Publicly available docket materials are available either
electronically in www.regulations.gov or in hard copy at the Air and
Radiation Docket and Information Center, EPA/DC, EPA West, Room 3334,
1301 Constitution Ave. NW., Washington, DC. The Public Reading Room is
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays. The telephone number for the Public Reading Room is
(202) 566-1744, and the telephone number for the Air Docket is (202)
566-1742.

FOR FURTHER INFORMATION CONTACT: Julia MacAllister, Office of
Transportation and Air Quality, Assessment and Standards Division,
Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI
48105; Telephone number:<PHONE_NUMBER>; Fax number:<PHONE_NUMBER>; Email
address<EMAIL_ADDRESS>or the public information line for
the Office of Transportation and Air Quality; telephone number (734)
214-4333; Email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background and Purpose

    The EPA is today taking action to amend existing regulatory
deadlines for obligated parties under the Renewable Fuel Standards
(RFS) program to submit reports demonstrating their compliance with the
2013 RFS percentage standards, and to submit corresponding attest
engagement reports.
    We received comments on our November 29, 2013 proposed rulemaking
to establish the 2014 RFS standards \1\ reiterating the importance to
obligated parties of knowing their RFS obligations for 2014 prior to
the compliance demonstration deadline for the 2013 RFS standards. The
EPA recognized the value of this timing to obligated parties in the
2013 standards final rule, and for that reason delayed the normally
applicable February 28, 2014 compliance demonstration deadline to June
30, 2014 for the 2013 RFS standards.\2\ We reasoned at that time that
an extension to June 30, 2014 would be sufficient in light of the
expected date of issuance of the 2014 annual RFS rule.
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    \1\ 78 FR 71732 (November 29, 2013).
    \2\ 78 FR 49794, 49800 (August 15, 2013).
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    However, in light of the fact that the EPA has not yet issued the
2014 annual standards rule, we believe it is appropriate to provide a
further extension of the 2013 compliance demonstration deadline. The
new deadline is September 30, 2014. Additionally, we are extending the
deadline for submitting the corresponding attest engagement reports to
January 30, 2015. Although these regulatory changes were not
specifically proposed in the 2014 annual standards rule, we believe
that they are appropriate as a logical outgrowth of the proposed rule.
The EPA received several comments on the proposed rule emphasizing the
need for the EPA to promulgate the 2014 RFS standards quickly and the
need for obligated parties to know their obligations for the following
year when finalizing their 2013 compliance demonstrations. As noted
above, the EPA itself recognized the value to obligated parties of
knowing their obligations for 2014 prior to having to demonstrate
compliance with their 2013 RFS requirements. This is because, once the
2014 RFS standards are known, obligated parties may choose to consider
the impact of the new standards on their 2013 RFS compliance approach,
including how many 2013 Renewable Identification Numbers (RINs) they
can carry-forward (there is a 20% limit based on the 2014 standard) for
purposes of complying with the 2014 RFS standards.
    The 2014 RFS rulemaking has been more time consuming than
originally anticipated, involving receipt of over 300,000 comments,
concerning numerous specific issues related to the 2014 standards which
the EPA needs, and wishes, to thoroughly consider and respond to. Given
the need for the EPA to weigh these issues carefully, prior to taking
final action on the 2014 RFS standards, the EPA believes it best to
further extend the existing June 30, 2014 compliance demonstration
deadline and associated attest engagement report deadline for the 2013
RFS standards. While we do not believe that the EPA is constrained
legally to extend the deadline, we do believe it is appropriate to do
so in this instance. It will allow the EPA time to complete its work on
the 2014 renewable fuel standards rule in a thorough manner, while also
providing time between the expected date of finalizing that rule and
the new 2013 compliance deadline which will be helpful to obligated
parties. While this final rule is a logical outgrowth of the 2014 RFS
proposed rule, and the

circumstances of completing that rule, the EPA needs to take final
action on this rule separately from the other aspects of the 2014 rule,
in order that the actions taken in this rule are effective prior to the
existing 2013 RFS standards compliance deadline of June 30, 2014.
    We are setting the effective date for this rule as the date that it
is published in the Federal Register. Section 553(d) of the
Administrative Procedure Act (APA), generally provides that rules may
not take effect earlier than 30 days after they are published in the
Federal Register. However, the EPA is issuing this final rule under CAA
section 307(d), and that provision specifies that the APA does not
apply, with only limited exceptions that do not include Section 553(d).
The EPA is nevertheless acting consistently with the policies
underlying APA section 553(d) in making this rule effective on the date
of publication in the Federal Register. The APA provides that the
requirements of section 553(d) do not apply where the rule in question
``relieves a restriction'' or where the EPA finds and publishes with
the rule a determination that ``good cause'' exists that warrants an
exception. We believe that the deadline extensions finalized today will
operate to relieve restrictions, and that good cause exists for making
this rule effective prior to the deadlines currently in effect for
submission of the 2013 renewable fuel standards' compliance
demonstration report and the associated attest engagement reports, for
the reasons described above.

II. Affected Entities

    Entities potentially affected by this direct final rule are those
involved with the production, distribution, and sale of transportation
fuels, including gasoline and diesel fuel or renewable fuels such as
ethanol and biodiesel. Potentially regulated categories include:

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                                                   NAICS \1\                         Examples of potentially
                   Category                          Codes       SIC \2\ Codes         regulated entities
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Industry......................................          324110            2911  Petroleum Refineries.
Industry......................................          325193            2869  Ethyl alcohol manufacturing.
Industry......................................          325199            2869  Other basic organic chemical
                                                                                manufacturing.
Industry......................................          424690            5169  Chemical and allied products
                                                                                merchant wholesalers.
Industry......................................          424710            5171  Petroleum bulk stations and
                                                                                terminals.
Industry......................................          424720            5172  Petroleum and petroleum products
                                                                                merchant wholesalers.
Industry......................................          454319            5989  Other fuel dealers.
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\1\ North American Industry Classification System (NAICS).
\2\ Standard Industrial Classification (SIC) system code.

    This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that the EPA is now
aware could be potentially regulated by this action. Other types of
entities not listed in the table could also be regulated. To determine
whether your activities would be regulated by this action, you should
carefully examine the applicability criteria in 40 CFR part 80. If you
have any questions regarding the applicability of this action to a
particular entity, consult the person listed in the preceding section.

III. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is not a ``significant regulatory action'' under the
terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is
therefore not subject to review under Executive Orders 12866 and 13563
(76 FR 3821, January 21, 2011).

B. Paperwork Reduction Act

    There are no new information collection requirements associated
with this rulemaking. The extension of the existing regulatory
deadlines for obligated parties under the Renewable Fuel Standards
(RFS) program impose no new or different reporting requirements on
regulated parties. The existing information collection requests (ICR)
that apply to the RFS program are sufficient to address the reporting
requirements in the regulations.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for the
EPA's regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedures Act or any other statute unless the agency certifies that
the rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of this rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's (SBA) regulations at 13 CFR
121.201; (2) a small governmental jurisdiction that is a government of
a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
    After considering the economic impacts of today's rule on small
entities, I certify that this rule will not have a significant economic
impact on a substantial number of small entities. This rule amends the
existing regulatory deadlines for obligated parties under the Renewable
Fuel Standards (RFS) program to submit reports demonstrating their
compliance with the 2013 RFS percentage standards, and to submit
corresponding attest engagement reports. This action ensures timely
amendment of existing deadlines, before compliance obligations would
otherwise go into effect. The impacts of the RFS2 program on small
entities were already addressed in the RFS2 final rule promulgated on
March 26, 2010 (75 FR 14670), and this rule will not impose any
additional requirements on small entities beyond those already
analyzed.

D. Unfunded Mandates Reform Act

    This action contains no Federal mandates under the provisions of
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C.
1531-1538 for State, local, or tribal

governments or the private sector. Therefore, this action is not
subject to the requirements of sections 202 or 205 of the UMRA.
    This action is also not subject to the requirements of section 203
of UMRA because it contains no regulatory requirements that might
significantly or uniquely affect small governments. This rule only
applies to gasoline, diesel, and renewable fuel producers, importers,
distributors and marketers and merely extends the otherwise applicable
reporting deadlines.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132. This action amends the existing
regulatory deadlines for obligated parties under the Renewable Fuel
Standards (RFS) program to submit reports demonstrating their
compliance with the 2013 RFS percentage standards, and to submit
corresponding attest engagement reports. The new deadlines only apply
to gasoline, diesel, and renewable fuel producers, importers,
distributors and marketers. Thus, Executive Order 13132 does not apply
to this rule.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implications, as specified in
Executive Order 13175 (65 FR 67249, November 9, 2000). This rule will
be implemented at the Federal level and affects transportation fuel
refiners, blenders, marketers, distributors, importers, exporters, and
renewable fuel producers and importers. Tribal governments would be
affected only to the extent they purchase and use regulated fuels.
Thus, Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    The EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as
applying only to those regulatory actions that concern health or safety
risks, such that the analysis required under section 5-501 of the EO
has the potential to influence the regulation. This action is not
subject to EO 13045 because it does not establish an environmental
standard intended to mitigate health or safety risks and because it
implements specific standards established by Congress in statutes
(section 211(o) of the Clean Air Act).

H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355
(May 22, 2001)), because it is not a significant regulatory action
under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs the EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs the EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
    This rulemaking does not involve technical standards. Therefore,
the EPA is not considering the use of any voluntary consensus
standards.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    The EPA has determined that this rule will not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it does not
affect the level of protection provided to human health or the
environment. This action does not relax the control measures on sources
regulated by the RFS regulations and therefore will not cause emissions
increases from these sources.

 K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. The EPA will submit a report containing this 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. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).

IV. Statutory Authority

    Statutory authority for this action comes from sections 211 and
301(a) of the Clean Air Act, 42 U.S.C 7545 and 7601(a).

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedure,
Air pollution control, Diesel fuel, Fuel additives, Gasoline, Imports,
Oil imports, Petroleum.

    Dated: June 6, 2014.
Gina McCarthy,
Administrator.

    For the reasons set forth in the preamble, 40 CFR part 80 is
amended as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

0
1. The authority citation for part 80 continues to read as follows:

    Authority:  42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).

0
2. Section 80.1451 is amended by revising paragraph (a)(1)(xiv) to read
as follows:

Sec.  80.1451  What are the reporting requirements under the RFS
program?

    (a) * * *
    (1) * * *
    (xiv) For the 2013 compliance year, annual compliance reports shall
be submitted by September 30, 2014.
* * * * *

0
3. Section 80.1464 is amended by revising paragraph (g) to read as
follows:

Sec.  80.1464  What are the attest engagement requirements under the
RFS program?

* * * * *
    (g) For the 2013 compliance year, reports required under this
section shall be submitted to EPA by January 30, 2015.

[FR Doc. 2014-14019 Filed 6-13-14; 8:45 am]
BILLING CODE 6560-50-P


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

General Comment:Dear Mr. Zeller:

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

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

I feel very strongly about e-cigarettes as an alternative to combustible cigarettes. Quite simply, I firmly believe that they saved my life. I wish to provide you with my personal story, as well as science- and evidence-based responses to your questions so that you can take my comment into account. I realize that the FDA has the authority under 21 CFR 10.40 to extend this time frame and that the FDA has exercised this authority on numerous occasions in the past. I would therefore ask that you do so here, so that all stakeholders have the opportunity to provide their comments on this proposed regulation.

I will keep my story short for impact. I began smoking at an early age in 1993 and continued through July 10th of 2010. I can remember the date I switched, because it has had an immeasurable impact on my life. I exercise and spend most weekends outdoors, this is a dramatic change in lifestyle for me. I have slowly gone from a higher nicotine content to a very low content over the last four years and perhaps I will be at zero soon enough. For what it is worth, I had no success with any of the currently approved methods of quitting, some of which have side effects no better than smoking itself.  I appreciate your consideration of my request and am happy to discuss this issue with you further.


markets for the index's component stocks are adequately capitalized and
sufficiently liquid, and that no one stock dominates the index. These
requirements are

designed to remove impediments to and perfect the mechanisms of a free
and open market and a national market system and, in general, to
protect investors and the public interest, by ensuring that unusual or
extreme volatility in any single component of an index could not cause
the entire index to become so volatile that it puts investors at undue
and unplanned risk. These requirements also minimize the potential for
manipulating the underlying index, which protects investors and the
public interest.
    The Exchange further believes that the requirement in proposed Rule
1802(b)(10) that the current underlying index value will be reported at
least once every 15 seconds during the time the index options are
traded on the Exchange, and the requirement in proposed Rule
1802(d)(11) (with respect to broad-based index options) that the
current index value be widely disseminated at least once every 15
seconds by OPRA, the CTA, NIDS or one or more major market data vendors
during the time the index options are traded on the Exchange removes
impediments to and perfects the mechanisms of a free and open market
and a national market system by providing transparency with respect to
current index values and by contributing to the overall transparency of
the market for index options. In addition, the Exchange believes that
the requirement in proposed Rule 1802(d)(2) that an index option be
A.M.-settled, rather than based on closing prices, should help to
reduce the potential impact of expiring index options on the market for
an index's component securities.
    The Exchange believes that the requirement in proposed Rule 1803 to
disseminate of index values as a condition to the trading of options on
an index fosters cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in, securities by requiring absolute
transparency regarding the dissemination of index values. The
requirement that the Exchange disseminate, or assure that the current
index value is disseminated, and the requirement that the Exchange
maintain, in files available to the public, information identifying the
components whose prices are the basis for calculation of the index and
the method used to determine the current index value, protects
investors and the public interest by ensuring that the current index
value is disseminated regularly and consistently.
    The Exchange's proposal to adopt Rules 1804 through 1807 relating
to position limits, exemptions from position limits, exercise limits in
index options, and regular maintenance reviews are designed to remove
impediments to and perfect the mechanisms of a free and open market and
a national market system and, in general, to protect investors and the
public interest, by limiting investors' levels of concentration in a
single index position. Not only would an investor be at undue risk by
assuming such a position, but the market for the affected index option
could be disproportionately affected by the trading activities of that
single investor with an unusually large long or short position. The
Exchange is proposing to mitigate this risk by establishing the same
position and exercise limits, and hedging rules, that already exist on
other exchanges, all designed for the protection of investors and the
public interest.
    Proposed Rule 1808, Trading Sessions, is designed to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in, securities, by establishing the same,
uniform trading hours for index options as other exchanges. The
Exchange's proposal to establish rules and procedures for openings,
halts and reopenings, together with the designation by the Board of an
Exchange official authorized to halt trading when, in his or her
judgment, such action is appropriate in the interests of a fair and
orderly market is designed to protect investors and the public interest
by ensuring that there are multiple safeguards available during times
of unusual or particularly volatile market activity.
    Proposed MIAX Options Rule 1809, Terms of Index Options Contracts,
outlines the terms of index options contracts in terms of the meaning
of premium bids and offers; exercise prices; expiration months; the
trading of European Style Index options. This proposed Rule is the same
as the rules concerning terms of index options contracts on other
exchanges. \52\ Proposed Rule 1809 is a generic rule concerning the
manner of trading of index option contracts. The Exchange's proposal to
adopt existing uniform rules governing terms of index option contracts
is designed to perfect the mechanisms of a free and open market and a
national market system and, in general, to protect investors and the
public interest by adopting standards and rules for index option
contracts that are consistent with other exchanges' standards and
rules. The Exchange believes that this benefits investors and the
marketplace as a whole because investors who determine to trade index
options on MIAX Options will not need to rely on an unfamiliar set of
rules and contract terms when they begin trading index options here.
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    \52\ See ISE Rule 2009; CBOE Rule 24.9; and Phlx Rule 1101A.
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    The Exchange believes that its proposal to include index options in
the Short Term Options Series Program removes impediments to, and
perfects the mechanisms of, a free and open market and a national
market system, and will benefit market participants by giving them more
flexibility to closely tailor their investment and hedging decisions in
a greater number of securities. The Exchange also believes that
expanding the Short Term Options Series Program to include index
options will provide the investing public and other market participants
with additional opportunities to hedge their investment, thus allowing
these investors to better manage their acceptable risk tolerance
levels, all to the benefit of the investing public and the marketplace
as a whole.
    The Exchange's proposal to adopt Rule 1810 relating to debit put
spreads fosters cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitates transactions in, securities, by maintaining uniformity
in its rules governing this strategy with the same specificity as the
rules on other exchanges.
    Proposed Rule 1811 concerning Disclaimers is based on, and
substantially similar to, rules that are currently operative on other
exchanges.\53\ The proposed Rule promotes just and equitable principles
of trade by stating that a Reporting Authority shall have no liability
for any damages, claims, losses (including any indirect or
consequential losses), expenses, or delays, whether direct or indirect,
foreseen or unforeseen, suffered by any person arising out of any
circumstance or occurrence relating to the person's use of an index,
any opening, intra-day or closing value therefor, any data included
therein or relating thereto, or any options contract based thereon, or
arising out of any errors or delays in calculating or disseminating
such index.
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    \53\ See, e.g., ISE Rule 2011 and CBOE Rule 24.14.
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    Proposed Rule 1812, Exercise of American-Style Index Options, is

designed to prevent fraudulent and manipulative acts and practices and
to promote just and equitable principles of trade by providing that no
Member may prepare, time stamp or submit an exercise instruction for an
American-style index options series if the Member knows or has reason
to know that the exercise instruction calls for the exercise of more
contracts than the then ``net long position'' of the account for which
the exercise instruction is to be tendered. The proposed Rule contains
standards for exercising American-style index options that are in
effect on other exchanges.\54\
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    \54\ See, e.g., ISE Rule 2012; CBOE Rule 24.18; and Phlx Rule
1042A.
---------------------------------------------------------------------------

    The Exchange's proposal to adopt a requirement that a Market Maker
requesting a position limit exemption must have a position that is
within twenty percent of the existing limits contained in Rule 307
removes impediments to and perfects the mechanisms of a free and open
market by requiring Market Makers seeking the exemption to have
positions that are within a reasonable range of existing position
limits. This should ensure that the Market Makers seeking the position
limit exemption are those whose positions are near the current position
limit and who have significant daily volume, as required by the current
Rule.
    Additionally, the proposed amendments to Rule 313 prohibiting
exercise of American-style, cash settled index options during any time
when trading in such options is delayed, halted, or suspended, protects
investors and the public interest by limiting the ability of holders of
such options to take advantage of such a delay, halt or suspension,
during which all market participants cannot act in response to the
conditions causing the delay, halt or suspension.
    The Exchange believes that proposed Rule 603(b)(5)(ii) to permit
the Exchange or its authorized agent may calculate bids and asks for
various indices for the sole purpose of determining permissible bid/ask
differentials on options on these indices perfects the mechanisms of a
free and open market and a national market system by using a weighted
average method of determining allowable bid/ask differentials. The
Exchange believes that the calculation of a bid/ask differential for
the underlying index perfects the mechanisms of a free and open market
and a national market system by determining reasonable allowable bid/
ask differentials in options overlying an index. This calculation
should provide an accurate standard for Market Makers to follow when
establishing their markets. The Exchange believes that the proposed
rule will result in narrower bid/ask differentials in index option
quotations on the Exchange, all to the benefit of investors and the
marketplace as a whole.
    The Exchange believes that its proposed surveillance program and
available capacity with respect to the listing and trading of index
options perfects the mechanisms of a free and open market and a
national market system through, among other things, its membership in
ISG and its current available capacity. As discussed above, the
Exchange represents that has an adequate surveillance program in place
for index options. The Exchange is a member of the ISG, which ``is
comprised of an international group of exchanges, market centers, and
market regulators.'' The purpose of the ISG is to provide a framework
for the sharing of information and the coordination of regulatory
efforts among exchanges trading securities and related products to
address potential intermarket manipulations and trading abuses. The ISG
plays a crucial role in information sharing among markets that trade
securities, options on securities, security futures products, and
futures and options on broad-based security indexes. A list identifying
the current ISG members is available at https://www.isgportal.org/home.html. MIAX Options has analyzed its capacity and represents that
it believes the Exchange and the Options Price Reporting Authority
(``OPRA'') have the necessary systems capacity to handle the additional
traffic associated with the listing and trading of index options.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. On the contrary, the
Exchange believes that the proposed rule change will enable the
Exchange to compete for order flow in index options products with other
exchanges that currently have rules and functionality in place to list
and trade index options.
    The Exchange further believes that the proposed rule change will
enhance intra-market competition, as more varied index products become
available for trading on the Exchange, which should encourage a greater
number of Market Makers to trade index options, resulting in greater
liquidity and more competitive quoting on the Exchange.

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

    Written comments were neither solicited nor received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-MIAX-2017-39 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-MIAX-2017-39. 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-MIAX-2017-39 and should be
submitted on or before September 6, 2017.
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    \55\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\55\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-17272 Filed 8-15-17; 8:45 am]
 BILLING CODE 8011-01-P