[Federal Register Volume 81, Number 228 (Monday, November 28, 2016)]
[Proposed Rules]
[Pages 85472-85478]
[FR Doc No: 2016-28565]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 721

[EPA-HQ-OPPT-2015-0387; FRL-9945-53]
RIN 2070-AK09

Alkylpyrrolidones; Significant New Use Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: Under the Toxic Substance Control Act (TSCA), EPA is proposing
a significant new use rule (SNUR) for two alkylpyrrolidones: N-
ethylpyrrolidone (NEP) and N-isopropylpyrrolidone (NiPP). The proposed
significant new uses are any use of NiPP and any use of NEP except for
the ongoing uses as a reactant, in silicone seal remover, coatings,
consumer and commercial paint primer, and adhesives. Persons subject to
the SNUR would be required to notify EPA at least 90 days before
commencing any manufacturing or processing of the chemical substance
for a significant new use. The required notification initiates EPA's
evaluation of the conditions of use within the applicable review
period. Manufacture and processing for the significant new use is
unable to commence until EPA has conducted a review of the notice, made
an appropriate determination on the notice, and taken such actions as
are required in association with that determination.

DATES: Comments must be received on or before January 27, 2017.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPPT-2015-0387, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments. Do not submit
electronically any information you consider to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute.
     Mail: Document Control Office (7407M), Office of Pollution
Prevention and Toxics (OPPT), Environmental Protection Agency, 1200
Pennsylvania Ave. NW., Washington, DC 20460-0001.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets generally, is available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: For technical information contact:
Tyler Lloyd, Chemical Control Division (7405M), Office of Pollution
Prevention and Toxics, Environmental Protection Agency, 1200
Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number:
(202) 564-4016; email address<EMAIL_ADDRESS>    For general information contact: The TSCA-Hotline, ABVI-Goodwill,
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202)
554-1404; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    You may be potentially affected by this action if you manufacture,
process, or distribute in commerce chemical substances and mixtures.
The following list of North American Industrial Classification System
(NAICS) codes is not intended to be exhaustive, but rather provides a
guide to help readers determine whether this document applies to them.
Potentially affected entities may include:
     Ship Building and Repairing (NAICS code 336611).
     Aircraft Manufacturing (NAICS code 336411).
     Museums (NAICS code 712110).
     Independent Artists, Writers, and Performers (NAICS code
711510).
     Reupholster and Furniture Repair (NAICS code 811420).
     Automotive Body Paint and Interior Repair Maintenance
(NAICS code 811121).
     Flooring Contractors (NAICS code 238330).
     Painting and Wall Covering Contractors (NAICS code
238320).
     Adhesive Tape Manufacturing (NAICS code 339113).
     Adhesive Manufacturing (NAICS code 325520).
     Denture Adhesive Manufacturing (NAICS code 325620).
     Basic Chemical Manufacturing (NAICS code 325411).
     Pharmaceutical and Medicine Manufacturing (NAICS code
32541).
     Printing Ink Manufacturing (NAICS code 325910).
     Textile Leather Manufacturing (NAICS code 316998).
     Textile Manufacturing (NAICS code 325613).
    This action may also affect certain entities through pre-existing
import certification and export notification rules under TSCA. Persons
who import any chemical substance governed by a final SNUR are subject
to the TSCA section 13 (15 U.S.C. 2612) import certification
requirements and the corresponding regulations at 19 CFR 12.118 through
12.127; see also 19 CFR 127.28. Those persons must certify that the
shipment of the chemical substance complies with all applicable rules
and orders under TSCA, including any SNUR requirements. The EPA policy
in support of import certification appears at 40 CFR part 707, subpart
B. In addition, any persons who export or intend to export a chemical
substance that is the subject of this proposed rule on or after
December 28, 2016 are subject to the export notification provisions of
TSCA section 12(b) (15 U.S.C. 2611(b)), (see 40 CFR 721.20), and must
comply with the export notification requirements in 40 CFR part 707,
subpart D.
    If you have any questions regarding the applicability of this
action to a particular entity, consult the technical information
contact listed under FOR FURTHER INFORMATION CONTACT.

B. What Is the Agency's authority for taking this action?

    Section 5(a)(2) of TSCA (15 U.S.C. 2604(a)(2)) authorizes EPA to
determine that a use of a chemical substance is a ``significant new
use.'' EPA must make this determination by rule after considering all
relevant factors, including those listed in TSCA section 5(a)(2) (see
Unit IV.). Once EPA determines that a use of a chemical substance is a
significant new use, TSCA section 5(a)(1) requires persons to submit a
significant new use notice (SNUN) to EPA at least 90 days before they
manufacture (including import) or process the chemical substance for
that use (15 U.S.C. 2604(a)(1)(B)(i)). TSCA furthermore prohibits such
manufacturing or processing from commencing until EPA has conducted a
review of the notice, made an appropriate determination on the notice,
and taken such actions as are required in association with that
determination (15 U.S.C. 2604(a)(1)(B)(ii)). As described in Unit V.,
the general SNUR provisions are found at 40 CFR part 721, subpart A.

C. What action is the agency taking?

    EPA is proposing a SNUR for two alkylpyrrolidones: N-
ethylpyrrolidone (NEP) and N-isopropylpyrrolidone (NiPP). The proposed
significant new uses are any use of NiPP and any use of NEP except for
the ongoing uses as a reactant, in silicone seal remover, coatings,
consumer and commercial paint primer, and adhesives. The

proposed significant new uses EPA has identified in this unit are uses
that EPA believes are not ongoing at the time of this proposed rule.
EPA is requesting public comment on this proposal, and specifically on
the Agency's understanding of ongoing uses for the chemicals
identified. EPA would welcome specific documentation of any ongoing
uses.
    This proposed SNUR would require persons that intend to manufacture
(including import) or process any of these chemicals for a significant
new use, consistent with the requirements at 40 CFR 721.25, to notify
EPA at least 90 days before commencing such manufacture or processing.
This proposed SNUR would furthermore preclude the commencement of such
manufacturing or processing until EPA has conducted a review of the
notice, made an appropriate determination on the notice, and taken such
actions as are required in association with that determination.

D. Why is the agency taking this action?

    This proposed SNUR is necessary to ensure that EPA receives timely
advance notice of any future manufacturing or processing of NEP and
NiPP for new uses that may produce changes in human and environmental
exposures, and to ensure that an appropriate determination (relevant to
the risks of such manufacturing or processing) has been issued prior to
the commencement of such manufacturing or processing. Today's action is
furthermore necessary to ensure that, in the event that EPA determines:
(1) That the significant new use presents an unreasonable risk under
the conditions of use (without consideration of costs or other nonrisk
factors, and including an unreasonable risk to a potentially exposed or
susceptible subpopulation identified as relevant by EPA); (2) that the
information available to EPA is insufficient to permit a reasoned
evaluation of the health and environmental effects of the significant
new use; (3) that in the absence of sufficient information, the
manufacture, processing, distribution in commerce, use, or disposal of
the substance, or any combination of such activities, may present an
unreasonable risk (without consideration of costs or other nonrisk
factors, and including an unreasonable risk to a potentially exposed or
susceptible subpopulation identified as relevant by EPA), or (4) that
there is sufficient potential for environmental release or human
exposure (as defined in TSCA section 5(a)(3)(B)(ii)(II)), then
manufacturing or processing for the significant new use cannot proceed
until EPA has responded to the circumstances by taking the required
actions under sections 5(e) or 5(f) of TSCA.
    The two chemical substances subject to this proposed SNUR are
structurally similar to and have similar physical-chemical properties
to N-methylpyrrolidone (NMP), which EPA identified for risk evaluation
as part of its Work Plan for Chemical Assessment under TSCA. Because of
structural and physical-chemical similarity to NMP (Ref. 1, 2), these
chemicals are expected to exhibit toxicity similar to NMP. The
rationale and objectives for this proposed SNUR are explained in Unit
III.

E. What are the estimated incremental impacts of this action?

    EPA has evaluated the potential costs of establishing SNUR
reporting requirements for potential manufacturers and processors of
the chemical substances included in this proposed rule. This analysis
(Ref. 3), which is available in the docket, is discussed in Unit IX.,
and is briefly summarized here.
    In the event that a SNUN is submitted, costs are estimated to be
less than $8,900 per SNUN submission for large business submitters and
$6,500 for small business submitters. These estimates include the cost
to prepare and submit the SNUN and the payment of a user fee. The
proposed SNUR would require first-time submitters of any TSCA section 5
notice to register their company and key users with the CDX reporting
tool, deliver a CDX electronic signature to EPA, and establish and use
a Pay.gov E-payment account before they may submit a SNUN, for a cost
of approximately $200 per firm. However, these activities are only
required of first time submitters of section 5 notices. In addition,
for persons exporting a substance that is the subject of a SNUR, a one-
time notice to EPA must be provided for the first export or intended
export to a particular country, which is estimated to be approximately
$80 per notification.

II. Chemical Substances Subject to This Proposed Rule

A. What chemicals are included in the proposed SNUR?

    This proposed SNUR would apply to two alkylpyrrolidones: NiPP
(Chemical Abstract Services Registry Number (CASRN) 3772-26-7) for any
use, and to NEP (CASRN 2687-91-4) for any use except for the ongoing
uses as a reactant, in silicone seal remover, coatings, consumer and
commercial paint primer, and adhesives.

B. What are the production volumes and uses of NEP and NiPP?

    In order to identify production volumes and uses of NEP and NiPP,
EPA reviewed published literature including IHS' Chemical Economics
Handbook, National Institute of Health's (NIH) Household Product
Database, EPA's Chemical/Product Categorical Data (CPcat) database, the
Consumer Product Information Database, the most recent data available
from EPA's Chemical Data Reporting (CDR) program, general Google.com
searches, Safety Data Sheets (SDSs), European Chemical Agency (ECHA)
reports and risk assessments, the Danish Ministry of the Environment
Surveys of Chemicals in Consumer Products, and other information from
manufacturing company Web sites (Ref. 3). NEP has a wide variety of
potential applications as a chemical intermediate in cosmetics, paints
and printing inks, paint strippers, pharmaceuticals, adhesives and
cleaners for polymeric residue (Ref. 4), in adhesives and reprographic
agents (Ref. 5), and as a replacement for NMP in coating and cleaning
applications (Ref. 6). Many of these potential uses have not been
identified by EPA to occur domestically. Four companies, including
domestic manufacturers and importers, reported production of NEP
between 1,000,000 to 10,000,000 million pounds to the 2012 CDR database
(Ref. 7). The uses reported to CDR for NEP include industrial solvent
and reactant uses in pharmaceuticals, paints and coatings, adhesives,
textiles, and print ink manufacturing. EPA was able to identify several
U.S. products containing NEP including silicone seal remover, coatings,
consumer and commercial paint primer, and adhesives. Based on this
available product data, EPA believes that the ongoing uses of NEP can
be described as ``use as a reactant, in silicone seal remover,
coatings, consumer and commercial paint primer, and adhesives.''
    There are no known ongoing uses of NiPP as of November 17, 2016,
the date of public release/web posting of this proposal.

C. What are the potential health effects of NEP and NiPP?

    NEP is an organic solvent used as a substitute for NMP because of
its similar solvent properties and very similar chemical structure
(Ref. 1). NiPP is also a structurally similar analog with physical-
chemical properties similar to NMP (Ref. 2). These two chemical

substances, like NMP, are pyrrolidones with alkyl groups, but with two
or three carbons in the carbon chain on the nitrogen, whereas NMP has a
methyl group (one carbon) on the nitrogen. Because of their similar
structure and physical-chemical properties, NEP has been shown (Ref. 1)
to, and NiPP is expected to, exhibit toxicity similar to NMP.
    EPA has identified developmental effects as a key endpoint of
concern from NMP exposure. Specifically, EPA has identified a number of
biologically relevant, consistent, and sensitive developmental effects
due to exposure to NMP through the oral and dermal routes, including
decreased fetal and pup body weight, delayed ossification, skeletal
malformations, and increased fetal and pup mortality (Ref. 8, 9, 10).
    Study data are available on NEP and the developmental effects and
malformations observed in the animal studies of NEP are similar to
those observed in NMP studies (Ref. 1). For example, NEP exposure
through oral and dermal routes is associated with adverse effects on
fetal body weight, post-implantation loss (specifically late
resorptions following oral exposures), and malformations. NEP exposure
is also associated with skeletal malformations by oral route and
cardiovascular malformation by oral and dermal routes in the animal
studies (Ref. 1).

D. What are the potential routes and sources of exposure to NEP and
NiPP?

    NMP is well absorbed following dermal exposures, such as during use
of coating, paint stripping or cleaning products (Ref. 11, 12). Since
NEP and NiPP are analogs of NMP, these chemical substances are expected
to have similar routes of exposure. Dermal exposure and absorption,
which includes dermal absorption from the vapor phase, typically
contributes significantly to human exposure. Prolonged exposures to
neat (i.e., pure) NMP increase the permeability of the skin. NMP is
also absorbed via inhalation but the low vapor pressure and mild
volatility can limit the amount of NMP available for inhalation.
    Given the similarity of their physical-chemical properties to those
of NMP, NEP, and NiPP can be used in ways similar to NMP resulting in
potential dermal and inhalation exposures.

III. Rationale and Objectives

A. Rationale

    EPA is concerned about the potential for adverse health effects of
NEP and NiPP based on data on the adverse health effects of NEP and
because these chemicals are analogs of NMP that have similar physical-
chemical properties and are therefore expected to or have been shown to
have similar toxicological properties.
    As discussed in Unit II, based on an extensive review of available
information, EPA has determined that, at the time of publication of
this proposed rule NiPP is not used for any use, and that NEP has
ongoing uses as a reactant, in silicone seal remover, coatings,
consumer and commercial paint primer, and adhesives (Ref. 3). EPA has
concluded that action on these chemical substances is warranted and
therefore any manufacturing or processing of NiPP for any use, and
manufacture or processing of NEP for any use except for the ongoing
uses as a reactant, in silicone seal remover, coatings, consumer and
commercial paint primer, and adhesives, would be a significant new use.
    Consistent with EPA's past practice for issuing SNURs under TSCA
section 5(a)(2), EPA's decision to propose a SNUR for a particular
chemical use need not be based on an extensive evaluation of the
hazard, exposure, or potential risk associated with that use. If a
person decides to begin manufacturing or processing any of these
chemicals for the use, the notice to EPA allows the Agency to evaluate
the use according to the specific parameters and circumstances
surrounding the conditions of use.

B. Objectives

    Based on the considerations in Unit III.A., EPA wants to achieve
the following objectives with regard to the significant new use(s) of
NEP and NiPP that are designated in this proposed rule:
    1. EPA would receive notice of any person's intent to manufacture
or process the chemical substances for the described significant new
use before that activity begins.
    2. EPA would have an opportunity to review and evaluate data
submitted in a SNUN before the notice submitter begins manufacturing or
processing the chemical substances for the described significant new
use.
    3. EPA would be able to either determine that the prospective
manufacture or processing is not likely to present an unreasonable
risk, or to take necessary regulatory action associated with any other
determination, before the described significant new use of the chemical
substance occurs.

IV. Significant New Use Determination

    Section 5(a)(2) of TSCA states that EPA's determination that a use
of a chemical substance is a significant new use must be made after
consideration of all relevant factors including:
    1. The projected volume of manufacturing and processing of a
chemical substance.
    2. The extent to which a use changes the type or form of exposure
of human beings or the environment to a chemical substance.
    3. The extent to which a use increases the magnitude and duration
of exposure of human beings or the environment to a chemical substance.
    4. The reasonably anticipated manner and methods of manufacturing,
processing, distribution in commerce, and disposal of a chemical
substance.
    In addition to these factors enumerated in TSCA section 5(a)(2),
the statute authorizes EPA to consider any other relevant factors.
    To determine what would constitute a significant new use of NEP or
NiPP, as discussed in this unit, EPA considered relevant information
about the toxicity or expected toxicity of these substances, likely
human exposures and environmental releases associated with possible
uses, and the four factors listed in section 5(a)(2) of TSCA. EPA has
preliminarily determined as significant new uses: Any use of NiPP and
any use of NEP except for the ongoing uses as a reactant, in silicone
seal remover, coatings, consumer and commercial paint primer, and
adhesives. Because NiPP is not used, and NEP is not currently used
except as a reactant, in silicone seal remover, coatings, consumer and
commercial paint primer, and adhesives, EPA believes any new use could
increase the magnitude and duration of human exposure to these chemical
substances. Exposure to NEP or NiPP may lead to adverse developmental
health effects.

V. Applicability of General Provisions

    General provisions for SNURs appear under 40 CFR part 721, subpart
A. These provisions describe persons subject to the rule, recordkeeping
requirements, exemptions to reporting requirements, and applicability
of the rule to uses occurring before the effective date of the final
rule.
    Provisions relating to user fees appear at 40 CFR part 700.
According to 40 CFR 721.1(c), persons subject to SNURs must comply with
the same notice requirements and EPA regulatory procedures as
submitters of Premanufacture Notices (PMNs) under TSCA section
5(a)(1)(A). In particular,

these requirements include the information submission requirements of
TSCA section 5(b) and 5(d)(1), the exemptions authorized by TSCA
section 5(h)(1), (h)(2), (h)(3), and (h)(5), and the regulations at 40
CFR part 720. Once EPA receives a SNUN, EPA must either determine that
the significant new use is not likely to present an unreasonable risk
of injury or take such regulatory action as is associated with an
alternative determination before the manufacture or processing for the
significant new use can commence. If EPA determines that the
significant new use is not likely to present an unreasonable risk, EPA
is required under TSCA section 5(g) to make public, and submit for
publication in the Federal Register, a statement of EPA's finding.
    Persons who export or intend to export a chemical substance
identified in a proposed or final SNUR are subject to the export
notification provisions of TSCA section 12(b). The regulations that
interpret TSCA section 12(b) appear at 40 CFR part 707, subpart D.
Persons who import a chemical substance identified in a final SNUR are
subject to the TSCA section 13 import certification requirements,
codified at 19 CFR 12.118 through 12.127; see also 19 CFR 127.28. Those
persons must certify that the shipment of the chemical substance
complies with all applicable rules and orders under TSCA, including any
SNUR requirements. The EPA policy in support of import certification
appears at 40 CFR part 707, subpart B.

VI. Applicability of Rule to Uses Occurring Before Effective Date of
the Final Rule

    EPA designates November 17, 2016 (the date of public release/web
posting of this proposal) as the cutoff date for determining whether
the new use is ongoing. This designation varies slightly from EPA's
past practice of designating the date of Federal Register publication
as the date for making this determination (Ref. 13). The objective of
EPA's approach has been to ensure that a person could not defeat a SNUR
by initiating a significant new use before the effective date of the
final rule. In developing this proposal, EPA has recognized that, given
EPA's practice of now posting proposed rules on its Web site a week or
more in advance of Federal Register publication, this objective could
be thwarted even before that publication. Thus, EPA has slightly
modified its approach in this rulemaking and plans to follow this
modified approach in future significant new use rulemakings. See the
Federal Register of August 24, 2016, (81 FR 57846) (FRL-9951-06), (see
page 57848).
    Persons who begin commercial manufacture or processing of the
chemical substances for a significant new use identified as of November
17, 2016 would have to cease any such activity upon the effective date
of the final rule. To resume their activities, these persons would have
to first comply with all applicable SNUR notification requirements and
wait until all TSCA prerequisites for the commencement of manufacture
or processing have been satisfied. Consult the Federal Register
document of April 24, 1990 (55 FR 17376) for a more detailed discussion
of the cutoff date for ongoing uses.

VII. Development and Submission of Information

    EPA recognizes that TSCA section 5 does not usually require
developing new information (e.g., generating test data) before
submission of a SNUN. There is an exception: Development of information
is required where the chemical substance subject to the SNUR is also
subject to a rule, order, or consent agreement under TSCA section 4
(see TSCA section 5(b)(1)).
    In the absence of a section 4 test rule covering the chemical
substance, persons are required to submit only information in their
possession or control and to describe any other information known to or
reasonably ascertainable by them (15 U.S.C. 2604(d); 40 CFR 721.25, and
40 CFR 720.50). However, as a general matter, EPA recommends that SNUN
submitters include information that would permit a reasoned evaluation
of risks posed by the chemical substance during its manufacture,
processing, use, distribution in commerce, or disposal. EPA encourages
persons to consult with the Agency before submitting a SNUN. As part of
this optional pre-notice consultation, EPA would discuss specific
information it believes may be useful in evaluating a significant new
use.
    Submitting a SNUN that does not itself include information
sufficient to permit a reasoned evaluation may increase the likelihood
that EPA will either respond with a determination that the information
available to the Agency is insufficient to permit a reasoned evaluation
of the health and environmental effects of the significant new use or,
alternatively, that in the absence of sufficient information, the
manufacture, processing, distribution in commerce, use, or disposal of
the chemical substance may present an unreasonable risk of injury.
    SNUN submitters should be aware that EPA will be better able to
evaluate SNUNs and define the terms of any potentially necessary
controls if the submitter provides detailed information on human
exposure and environmental releases that may result from the
significant new uses of the chemical substance.

VIII. SNUN Submissions

    EPA recommends that submitters consult with the Agency prior to
submitting a SNUN to discuss what information may be useful in
evaluating a significant new use. Discussions with the Agency prior to
submission can afford ample time to conduct any tests that might be
helpful in evaluating risks posed by the substance. According
to[emsp14]40 CFR 721.1(c), persons submitting a SNUN must comply with
the same notice requirements and EPA regulatory procedures as persons
submitting a PMN, including submission of test data on health and
environmental effects as described in 40 CFR 720.50. SNUNs must be
submitted on EPA Form No. 7710-25, generated using e-PMN software, and
submitted to the Agency in accordance with the procedures set forth in
40 CFR[emsp14]721.25 and 40 CFR 720.40. E-PMN software is available
electronically at http://www.epa.gov/opptintr/newchems.

IX. Economic Analysis

A. SNUNs

    EPA has evaluated the potential costs of establishing SNUR
reporting requirements for potential manufacturers and processors of
the chemical substance included in this proposed rule (Ref. 3). In the
event that a SNUN is submitted, costs are estimated at approximately
$8,900 per SNUN submission for large business submitters and $6,500 for
small business submitters. These estimates include the cost to prepare
and submit the SNUN, and the payment of a user fee. Businesses that
submit a SNUN would be subject to either a $2,500 user fee required by
40 CFR 700.45(b)(2)(iii), or, if they are a small business with annual
sales of less than $40 million when combined with those of the parent
company (if any), a reduced user fee of $100 (40 CFR 700.45(b)(1)).
EPA's complete economic analysis is available in the public docket for
this proposed rule (Ref. 3).

B. Export Notification

    Under section 12(b) of TSCA and the implementing regulations at 40
CFR part 707, subpart D, exporters must notify EPA if they export or
intend to export

a chemical substance or mixture for which, among other things, a rule
has been proposed or promulgated under TSCA section 5. For persons
exporting a substance that is the subject of a SNUR, a one-time notice
to EPA must be provided for the first export or intended export to a
particular country. The total costs of export notification will vary by
chemical, depending on the number of required notifications (i.e., the
number of countries to which the chemical is exported). While EPA is
unable to make any estimate of the likely number of export
notifications for the chemical covered in this proposed SNUR, as stated
in the accompanying economic analysis of this proposed SNUR, the
estimated cost of the export notification requirement on a per unit
basis is $83.

X. Alternatives

    Before proposing this SNUR, EPA considered the following
alternative regulatory action: Promulgate a TSCA Section 8(a) Reporting
Rule.
    Under a TSCA section 8(a) rule, EPA could, among other things,
generally require persons to report information to the Agency when they
intend to manufacture or process a listed chemical for a specific use
or any use. However, for NEP and NiPP, the use of TSCA section 8(a)
rather than SNUR authority would have several limitations. First, if
EPA were to require reporting under TSCA section 8(a) instead of TSCA
section 5(a), that action would not ensure that EPA receives timely
advance notice of any future manufacturing or processing of NEP and
NiPP for new uses that may produce changes in human and environmental
exposures. Nor would it ensure that an appropriate determination
(relevant to the risks of such manufacturing or processing) has been
issued prior to the commencement of such manufacturing or processing.
Furthermore, a TSCA section 8(a) rule would not ensure that, in the
event that EPA determines: (1) That the significant new use presents an
unreasonable risk under the conditions of use (without consideration of
costs or other nonrisk factors, and including an unreasonable risk to a
potentially exposed or susceptible subpopulation identified as relevant
by EPA); (2) that the information available to EPA is insufficient to
permit a reasoned evaluation of the health and environmental effects of
the significant new use; (3) that in the absence of sufficient
information, the manufacture, processing, distribution in commerce,
use, or disposal of the substance, or any combination of such
activities, may present an unreasonable risk (without consideration of
costs or other nonrisk factors, and including an unreasonable risk to a
potentially exposed or susceptible subpopulation identified as relevant
by EPA), or (4) that there is sufficient potential for environmental
release or human exposure (as defined in TSCA section
5(a)(3)(B)(ii)(II)), then manufacturing or processing for the
significant new use cannot proceed until EPA has responded to the
circumstances by taking the required actions under sections 5(e) or
5(f) of TSCA.
    In addition, EPA may not receive important information from small
businesses, because such firms generally are exempt from TSCA section
8(a) reporting requirements (see TSCA sections 8(a)(1)(A) and
8(a)(1)(B)). In view of the level of health concerns about NEP and NiPP
if used for a proposed significant new use, EPA believes that a TSCA
section 8(a) rule for this substance would not meet EPA's regulatory
objectives.

XI. Scientific Standards, Evidence, and Available Information

    EPA has used scientific information, technical procedures,
measures, methods, protocols, methodologies, and models consistent with
the best available science, as applicable. These information sources
supply information relevant to whether a particular use would be a
significant new use, based on relevant factors including those listed
under TSCA section 5(a)(2). As noted in Unit III, EPA's decision to
propose a SNUR for a particular chemical use need not be based on an
extensive evaluation of the hazard, exposure, or potential risk
associated with that use.
    The clarity and completeness of the data, assumptions, methods,
quality assurance, and analyses employed in EPA's decision are
documented, as applicable and to the extent necessary for purposes of
this proposed significant new use rule, in Unit II and in the
references noted above. EPA recognizes, based on the available
information, that there is variability and uncertainty in whether any
particular significant new use would actually present an unreasonable
risk. For precisely this reason, it is appropriate to secure a future
notice and review process for these uses, at such time as they are
known more definitely. The extent to which the various information,
procedures, measures, methods, protocols, methodologies or models used
in EPA's decision have been subject to independent verification or peer
review is adequate to justify their use, collectively, in the record
for a significant new use rule

XII. Request for Comment

A. Do you have comments or information about ongoing uses?

    EPA welcomes comment on all aspects of this proposed rule. EPA
based its understanding of the use profile of these chemicals on the
published literature, the 2012 Chemical Data Reporting submissions,
market research, and review of Safety Data Sheets. To confirm EPA's
understanding, the Agency is requesting public comment on all aspects
of this proposed rule, including EPA's understanding that NiPP is not
currently used, and NEP is not used except as a reactant, in silicone
seal remover, coatings, consumer and commercial paint primer, and
adhesives. In providing comments on an ongoing use of NEP and NiPP, it
would be helpful if you provide sufficient information for EPA to
substantiate any assertions of use. EPA does not have specific
information on the concentration by weight of NEP currently being used
in silicone seal remover, coatings, consumer and commercial paint
primer, and adhesives. If this information were available, EPA could
better characterize the use. As such, EPA requests comment on the
concentration by weight of NEP currently being used in silicone seal
remover, coatings, consumer and commercial paint primer, and adhesives.

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

    1. Submitting CBI. It is EPA's policy to include all comments
received in the public docket without change or further notice to the
commenter and to make the comments available on-line at
www.regulations.gov, including any personal information provided,
unless a comment includes information claimed to be CBI or other
information whose disclosure is restricted by statute. Do not submit
this information to EPA through regulations.gov or email. Clearly mark
the part or all of the information that you claim to be CBI. For CBI
information in a disk or CD ROM that you mail to EPA, mark the outside
of the disk or CD ROM that you mail to EPA as CBI and then identify
electronically within the disk or CD ROM the specific information that
is claimed as CBI. In addition to one complete version of the comment
that includes information claimed as CBI, a copy of the comment that
does not contain the information claimed as CBI must be submitted for
inclusion in the public docket. Information so marked will not be
disclosed except in

accordance with procedures set forth in 40 CFR part 2, subpart B.
    2. Tips for preparing your comments. When preparing and submitting
your comments, see the commenting tips at http://www2.epa.gov/dockets/commenting-epa-dockets#tips.

XIII. References

    The following is a listing of the documents that are specifically
referenced in this document. The docket includes these documents and
other information considered by EPA, including documents that are
referenced within the documents that are included in the docket, even
if the referenced document is not physically located in the docket. For
assistance in locating these other documents, please consult the
technical person listed under FOR FURTHER INFORMATION CONTACT.

    1. ECHA, Committee for Risk Assessment. Annex 1 Background
document to the Opinion proposing harmonised classification and
labelling at Community level of N-ethyl-2-pyrrolidone (NEP). ECHA/
RAC/CLH-O-0000002192-83-01/A1. 2011.
    2. Vandeputte, Bart; Moonen, Kristof; and Roose, Peter. Use of
improved N-alkyl pyrrolidone solvents. Google Patents. Publication
Number: US20150057375 A1. Filing Date: January 17, 2013. Publication
Date: February 26, 2015. Available at http://www.google.com/patents/WO2013107822A1?cl=en.
    3. EPA. Economic Analysis of the Proposed Significant New Use
Rule for Alkylpyrrolidones. March 31, 2016.
    4. BASF. N-Ethylpyrrolidone-2 (NEP) Technical Data Sheet. July
2009. Available at http://worldaccount.basf.com/wa/NAFTA~es_MX/
Catalog/ChemicalsNAFTA/doc4/BASF/PRD/
30036616/.pdf?urn=urn:documentum:eCommerce_sol_EU:09007bb280065a74.pd
f.
    5. EPA. Chemical and Product Categories (CPCat) Database.
Accessed September 2015. Available at http://actor.epa.gov/cpcat/faces/home.xhtml.
    6. BASF Corp Germany. N-Ethylpyrrolidone. Accessed August 2016.
Available at https://www.standort-ludwigshafen.basf.de/group/corporate/site-ludwigshafen/en/brand/N_ETHYLPYRROLIDONE.
    7. EPA. Downloadable of the Non-Confidential Chemical Reporting
Data (CDR) Database. Downloaded July 2014.
    8. Sitarek, K., J. Stekiewicz, and W. Wasowicz. 2012. Evaluation
of Reproductive Disorders in Female Rats Exposed to N-Methyl-2-
Pyrrolidone. Birth Defects Research (Part B), 95, 195-201.
    9. Saillenfait, A. M., F. Gallissot, I. Langonne, and J. P.
Sabate. 2002. Developmental Toxicity of NMethyl-2-Pyrrolidone
Administered Orally to Rats. Food Chemistry and Toxicology, 40(11),
1705-1712.
    10. Hass, U., S. P. Lund, and J. Elsner. 1994. Effects of
Prenatal Exposure to N-Methylpyrrolidone on Postnatal Development
and Behavior in Rats. Neurotoxicology and Teratology, 16(3), 241-
249.
    11. Bader, M., R. Wrbitzky, M. Blaszkewicz, M. Schaper, and C.
van Thriel. 2008. Human Volunteer Study on the Inhalational and
Dermal Absorption of N-Methyl-2-Pyrrolidone (NMP) from the Vapour
Phase. Archives of Toxicology, 82(1), 13-20.
    12. Keener, S., R. Wrbitzky, and M. Bader. 2007. Human Volunteer
Study on the Influence of Exposure Dilution of Dermally Applied N-
Methyl-2-Pyrrolidone (NMP) on the Urinary Elimination of NMP
Metabolites. International Archives of Occupational and
Environmental Health, 80(4), 327-334.
    13. EPA. Significant New Uses of Certain Chemical Substances;
Final Rule. RIVM, 2013). Federal Register (April 24, 1990, 55 FR
17376) (FRL-3658-5).

XIV. Statutory and Executive Order Reviews

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

    This proposed SNUR is not a ``significant regulatory action'' and
was therefore not submitted to the Office of Management and Budget
(OMB) for review under Executive Orders 12866 (58 FR 51735, October 4,
1993) and 13563 (76 FR 3821, January 21, 2011).

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden
under the PRA, 44 U.S.C. 3501 et seq. Burden is defined in 5 CFR
1320.3(b). The information collection activities associated with
existing chemical SNURs are already approved under OMB control number
2070-0038 (EPA ICR No. 1188); and the information collection activities
associated with export notifications are already approved under OMB
control number 2070-0030 (EPA ICR No. 0795). If an entity were to
submit a SNUN to the Agency, the annual burden is estimated to be less
than 100 hours per response, and the estimated burden for export
notifications is less than 1.5 hours per notification. In both cases,
burden is estimated to be reduced for submitters who have already
registered to use the electronic submission system.
    An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information that requires OMB approval
under the PRA, unless it has been approved by OMB and displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in Title 40 of the CFR, after appearing in the Federal
Register, are listed in 40 CFR, part 9, and included on the related
collection instrument, or form, as applicable.

C. Regulatory Flexibility Act (RFA)

    Pursuant to section 605(b) of the RFA, 5 U.S.C. 601 et seq., I
certify that promulgation of this SNUR would not have a significant
economic impact on a substantial number of small entities. The
rationale supporting this conclusion is as follows.
    A SNUR applies to any person (including small or large entities)
who intends to engage in any activity described in the rule as a
``significant new use.'' By definition of the word ``new'' and based on
all information currently available to EPA, it appears that no small or
large entities presently engage in such activities. Since this SNUR
will require a person who intends to engage in such activity in the
future to first notify EPA by submitting a SNUN, no economic impact
will occur unless someone files a SNUN to pursue a significant new use
in the future or forgoes profits by avoiding or delaying the
significant new use. Although some small entities may decide to conduct
such activities in the future, EPA cannot presently determine how many,
if any, there may be. However, EPA's experience to date is that, in
response to the promulgation of SNURs covering over 1,000 chemical
substances, the Agency receives only a handful of notices per year.
During the six year period from 2005-2010, only three submitters self-
identified as small in their SNUN submission (Ref. 3). EPA believes the
cost of submitting a SNUN is relatively small compared to the cost of
developing and marketing a chemical new to a firm or marketing a new
use of the chemical and that the requirement to submit a SNUN generally
does not have a significant economic impact.
    Therefore, EPA believes that the potential economic impact of
complying with this proposed SNUR is not expected to be significant or
adversely impact a substantial number of small entities. In a SNUR that
published as a final rule on August 8, 1997 (62 FR 42690) (FRL-5735-4),
the Agency presented its general determination that proposed and final
SNURs are not expected to have a significant economic impact on a
substantial number of small entities.

D. Unfunded Mandates Reform Act (UMRA)

    Based on EPA's experience with proposing and finalizing SNURs,
State, local, and Tribal governments have not been impacted by these
rulemakings, and EPA does not have any reason to

believe that any State, local, or Tribal government would be impacted
by this rulemaking. As such, the requirements of sections 202, 203,
204, or 205 of UMRA, 2 U.S.C. 1531-1538, do not apply to this action.

E. Executive Order 13132: Federalism

    This action will not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999), because it will
not have substantial direct effect on 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.

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), because it will
not have any effect on tribal governments, on the relationship between
the Federal Government and the Indian tribes, or on the distribution of
power and responsibilities between the Federal Government and Indian
tribes.

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

    This action is not subject to Executive Order 13045 (62 FR 19885,
April 23, 1997), because this action does not address environmental
health or safety risks, and EPA interprets Executive Order 13045 as
applying only to those regulatory actions that concern environmental
health or safety risks that EPA has reason to believe may
disproportionately affect children, per the definition of ``covered
regulatory action'' in section 2-202 of the Executive Order.

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

    This action is not a ``significant energy action'' as defined in
Executive Order 13211 (66 FR 28355, May 22, 2001), because it is not
likely to have any effect on energy supply, distribution, or use.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve any technical standards, and is
therefore not subject to considerations under section 12(d) of NTTAA,
15 U.S.C.272 note.

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

    This action will not have disproportionately high and adverse human
health or environmental effects on minority or low-income populations
as specified in Executive Order 12898 (59 FR 7629, February 16, 1994).
This action does not affect the level of protection provided to human
health or the environment.

List of Subjects in 40 CFR Part 721

    Environmental protection, Chemicals, Hazardous substances,
Reporting and recordkeeping requirements.

    Dated: November 14, 2016.
Jeffery T. Morris,
Acting Director, Office of Pollution Prevention and Toxics.

    Therefore, it is proposed that 40 CFR chapter I be amended as
follows:

PART 721--[AMENDED]

0
1. The authority citation for part 721 continues to read as follows:

    Authority: 15 U.S.C. 2604, 2607, and 2625(c).

0
2. Add Sec.  721.10925 to subpart E to read as follows:

Sec.  721.10925  Alkylpyrrolidones.

    (a) Chemical substance and significant new uses subject to
reporting. (1) The chemical substances N-ethylpyrrolidone (CASRN 2687-
91-4) and N-isopropylpyrrolidone (CASRN 3772-26-7) are subject to
reporting under this section for the significant new uses described in
paragraph (a)(2) of this section.
    (2) The significant new uses are:
    (i) For N-ethylpyrrolidone (CASRN 2687-91-4), any use except for
use as reactant and in silicone seal remover, coatings, consumer and
commercial paint primer, and adhesives.
    (ii) For N-isopropylpyrrolidone (CASRN 3772-26-7), any use.
    (b) [Reserved]

[FR Doc. 2016-28565 Filed 11-25-16; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 84, Number 156 (Tuesday, August 13, 2019)]
[Notices]
[Pages 40043-40044]
[FR Doc No: 2019-17296]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RM98-1-000]

Records Governing Off-the-Record Communications; Public Notice

    This constitutes notice, in accordance with 18 CFR 385.2201(b), of
the receipt of prohibited and exempt off-the-record communications.
    Order No. 607 (64 FR 51222, September 22, 1999) requires Commission
decisional employees, who make or receive a prohibited or exempt off-
the-record communication relevant to the merits of a contested
proceeding, to deliver to the Secretary of the Commission, a copy of
the communication, if written, or a summary of the substance of any
oral communication.
    Prohibited communications are included in a public, non-decisional
file associated with, but not a part of, the decisional record of the
proceeding. Unless the Commission determines that the prohibited
communication and any responses thereto should become a part of the
decisional record, the prohibited off-the-record communication will not
be considered by the Commission in reaching its decision. Parties to a
proceeding may seek the opportunity to respond to any facts or
contentions made in a prohibited off-the-record communication, and may
request that the Commission place the prohibited communication and
responses thereto in the decisional record. The Commission will grant
such a request only when it determines that fairness so requires. Any
person identified below as having made a prohibited off-the-record
communication shall serve the document on all parties listed on the
official service list for the applicable

proceeding in accordance with Rule 2010, 18 CFR 385.2010.
    Exempt off-the-record communications are included in the decisional
record of the proceeding, unless the communication was with a
cooperating agency as described by 40 CFR 1501.6, made under 18 CFR
385.2201(e)(1)(v).
    The following is a list of off-the-record communications recently
received by the Secretary of the Commission. The communications listed
are grouped by docket numbers in ascending order. These filings are
available for electronic review at the Commission in the Public
Reference Room or may be viewed on the Commission's website at http://www.ferc.gov using the eLibrary link. Enter the docket number,
excluding the last three digits, in the docket number field to access
the document. For assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>.

------------------------------------------------------------------------
           Docket No.               File date     Presenter or requester
------------------------------------------------------------------------
Prohibited:
    1. CP17-495-000............       7-24-2019  Sally Wells.
    2. CP15-554-000; CP15-554-        7-24-2019  Janet K. Speare.
     001; CP15-555-000.
    3. CP18-46-000; CP18-46-001       7-25-2019  Tina and Frank Daly.
    4. CP16-10-000; CP16-13-000       7-30-2019  Jim Steitz.
    5. CP18-46-000.............        8-1-2019  Sheila A. McCarthy.
    6. CP15-554-000............        8-2-2019  William F. Limpert.
Exempt:
    None.......................
------------------------------------------------------------------------

    Dated: August 6, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-17296 Filed 8-12-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: April 15, 2010 (Volume 75, Number 72)]
[Rules and Regulations]
[Page 19539-19541]
[DOCID:fr15ap10-1]

========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.

========================================================================

DEPARTMENT OF TRANSPORTATION

14 CFR Part 97

[Docket No. 30717; Amdt. No. 3367]

Standard Instrument Approach Procedures, and Takeoff Minimums and
Obstacle Departure Procedures; Miscellaneous Amendments

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This rule establishes, amends, suspends, or revokes Standard
Instrument Approach Procedures (SIAPs) and associated Takeoff Minimums
and Obstacle Departure Procedures for operations at certain airports.
These regulatory actions are needed because of the adoption of new or
revised criteria, or because of changes occurring in the National
Airspace System, such as the commissioning of new navigational
facilities, adding new obstacles, or changing air traffic requirements.
These changes are designed to provide safe and efficient use of the
navigable airspace and to promote safe flight operations under
instrument flight rules at the affected airports.

DATES: This rule is effective April 15, 2010. The compliance date for
each SIAP, associated Takeoff Minimums, and ODP is specified in the
amendatory provisions.
    The incorporation by reference of certain publications listed in
the regulations is approved by the Director of the Federal Register as
of April 15, 2010.

ADDRESSES: Availability of matter incorporated by reference in the
amendment is as follows:
    For Examination--
    1. FAA Rules Docket, FAA Headquarters Building, 800 Independence
Avenue, SW., Washington, DC 20591;
    2. The FAA Regional Office of the region in which the affected
airport is located;
    3. The National Flight Procedures Office, 6500 South MacArthur
Blvd., Oklahoma City, OK 73169 or,
    4. The National Archives and Records Administration (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.
    Availability_All SIAPs are available online free of charge. Visit
nfdc.faa.gov to register. Additionally, individual SIAP and Takeoff
Minimums and ODP copies may be obtained from:
    1. FAA Public Inquiry Center (APA-200), FAA Headquarters Building,
800 Independence Avenue, SW., Washington, DC 20591; or
    2. The FAA Regional Office of the region in which the affected
airport is located.

FOR FURTHER INFORMATION CONTACT: Harry J. Hodges, Flight Procedure
Standards Branch (AFS-420) Flight Technologies and Programs Division,
Flight Standards Service, Federal Aviation Administration, Mike
Monroney Aeronautical Center, 6500 South MacArthur Blvd., Oklahoma
City, OK 73169 (Mail Address: P.O. Box 25082 Oklahoma City, OK 73125)
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: This rule amends Title 14, Code of Federal
Regulations, Part 97 (14 CFR part 97) by amending the referenced SIAPs.
The complete regulatory description of each SIAP is listed on the
appropriate FAA Form 8260, as modified by the National Flight Data
Center (FDC)/Permanent Notice to Airmen (P-NOTAM), and is incorporated
by reference in the amendment under 5 U.S.C. 552(a), 1 CFR part 51, and
Sec.  97.20 of Title 14 of the Code of Federal Regulations.
    The large number of SIAPs, their complex nature, and the need for a
special format make their verbatim publication in the Federal Register
expensive and impractical. Further, airmen do not use the regulatory
text of the SIAPs, but refer to their graphic depiction on charts
printed by publishers of aeronautical materials. Thus, the advantages
of incorporation by reference are realized and publication of the
complete description of each SIAP contained in FAA form documents is
unnecessary. This amendment provides the affected CFR sections and
specifies the types of SIAP and the corresponding effective dates. This
amendment also identifies the airport and its location, the procedure
and the amendment number.

The Rule

    This amendment to 14 CFR part 97 is effective upon publication of
each separate SIAP as amended in the transmittal. For safety and
timeliness of change considerations, this amendment incorporates only
specific changes contained for each SIAP as modified by FDC/P-NOTAMs.
    The SIAPs, as modified by FDC/P-NOTAM, and contained in this
amendment are based on the criteria contained in the U.S. Standard for
Terminal Instrument Procedures (TERPS). In developing these changes to
SIAPs, the TERPS criteria were applied only to specific conditions
existing at the affected airports. All SIAP amendments in this rule
have been previously issued by the FAA in a FDC NOTAM as an emergency
action of immediate flight safety relating directly to published
aeronautical charts. The circumstances which created the need for all
these SIAP amendments requires making them effective in less than 30
days.
    Because of the close and immediate relationship between these SIAPs
and safety in air commerce, I find that notice and public procedure
before adopting these SIAPs are impracticable and contrary to the
public interest and, where applicable, that good cause exists for
making these SIAPs effective in less than 30 days.

Conclusion

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. For the same reason, the

FAA certifies that this amendment will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 97

    Air traffic control, Airports, Incorporation by reference, and
Navigation (Air).

    Issued in Washington, DC, on March 19, 2010.
John M. Allen,
Director, Flight Standards Service.

Adoption of the Amendment

0
Accordingly, pursuant to the authority delegated to me, Title 14, Code
of Federal Regulations, Part 97, 14 CFR part 97, is amended by amending
Standard Instrument Approach Procedures, effective at 0901 UTC on the
dates specified, as follows:

PART 97--STANDARD INSTRUMENT APPROACH PROCEDURES

0
1. The authority citation for part 97 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40103, 40106, 40113, 40114, 40120,
44502, 44514, 44701, 44719, 44721-44722.

0
2. Part 97 is amended to read as follows:
    By amending: Sec.  97.23 VOR, VOR/DME, VOR or TACAN, and VOR/DME or
TACAN; Sec.  97.25 LOC, LOC/DME, LDA, LDA/DME, SDF, SDF/DME; Sec.
97.27 NDB, NDB/DME; Sec.  97.29 ILS, ILS/DME, MLS, MLS/DME, MLS/RNAV;
Sec.  97.31 RADAR SIAPs; Sec.  97.33 RNAV SIAPs; and Sec.  97.35 COPTER
SIAPs, Identified as follows:

* * * Effective Upon Publication

----------------------------------------------------------------------------------------------------------------
  AIRAC date      State          City              Airport          FDC No.      FDC date          Subject
----------------------------------------------------------------------------------------------------------------
6-May-10......  IN         Muncie.........  Delaware County-           0/0115      3/17/10  VOR RWY 32, AMDT 15.
                                             Johnson Field.
6-May-10......  IN         Muncie.........  Delaware County-           0/0116      3/17/10  RNAV (GPS) RWY 14,
                                             Johnson Field.                                  ORIG.
6-May-10......  IN         Muncie.........  Delaware County-           0/0117      3/17/10  ILS RWY 32, AMDT 9A.
                                             Johnson Field.
6-May-10......  MI         Ontonagon......  Ontonagon County-          0/0147      3/17/10  NDB OR GPS A, AMDT
                                             Schuster Field.                                 4.
6-May-10......  MI         Port Huron.....  St Clair County Intl       0/0149      3/17/10  ILS RWY 4, AMDT 3A.
6-May-10......  MI         Port Huron.....  St Clair County Intl       0/0151      3/17/10  VOR/DME OR GPS A,
                                                                                AMDT 7A.
6-May-10......  MI         Sturgis........  Kirsch Muni.........       0/0152      3/17/10  RNAV (GPS) RWY 18,
                                                                                ORIG.
6-May-10......  MI         Sturgis........  Kirsch Muni.........       0/0153      3/17/10  NDB RWY 24, AMDT
                                                                                10B.
6-May-10......  MI         Sturgis........  Kirsch Muni.........       0/0154      3/17/10  NDB RWY 18, AMDT 5B.
6-May-10......  VT         Rutland........  Rutland-Southern           0/0457      3/17/10  LOC Z RWY 19, AMDT
                                             Vermont Rgnl.                                   1A.
6-May-10......  MD         Clinton........  Washington Executive/      0/4187       3/4/10  TAKEOFF MINIMUMS AND
                                             Hyde Field.                                     OBSTACLE DP, ORIG.
6-May-10......  MI         Davison........  Athelone Williams          0/7577      2/25/10  VOR RWY 8, ORIG-B.
                                             Memorial.
6-May-10......  OH         Youngstown/      Youngstown/Warren          0/7635      2/25/10  RADAR-1, AMDT 13.
                            Warren.          Rgnl.
6-May-10......  ND         Minot..........  Minot Intl..........       0/7667      2/25/10  RNAV (GPS) RWY 13,
                                                                                AMDT 1B.
6-May-10......  KS         Liberal........  Liberal Mid-America        0/8350       3/4/10  RNAV (GPS) RWY 22,
                                             Rgnl.                                           ORIG.
6-May-10......  MA         Westfield/       Barnes Muni.........       0/8385       3/4/10  VOR OR TACAN RWY 2,
                            Springfield.                                                     AMDT 4C.
6-May-10......  IA         Guthrie Center.  Guthrie County Rgnl.       0/8435       3/4/10  NDB RWY 18, ORIG.
6-May-10......  GA         Carrollton.....  West Georgia               0/8726       3/3/10  RNAV (GPS) RWY 17,
                                             Regional-O V Gray                               ORIG.
                                             Field.
6-May-10......  IL         Galesburg......  Galesburg Muni......       0/8790      3/11/10  ILS RWY 3, AMDT 9A.
6-May-10......  IL         Galesburg......  Galesburg Muni......       0/8792      3/11/10  VOR OR GPS RWY 21,
                                                                                AMDT 6C.
6-May-10......  IL         Galesburg......  Galesburg Muni......       0/8793      3/11/10  VOR OR GPS RWY 3,
                                                                                AMDT 6A.
6-May-10......  KY         Lewisport......  Hancock Co-Ron Lewis       0/8830       3/8/10  RNAV (GPS) RWY 5,
                                             Field.                                          ORIG.
6-May-10......  KY         Lewisport......  Hancock Co-Ron Lewis       0/8831       3/8/10  RNAV (GPS) RWY 23,
                                             Field.                                          ORIG.
6-May-10......  SC         Georgetown.....  Georgetown County...       0/9026       3/8/10  NDB OR GPS RWY 5,
                                                                                AMDT 5A.
6-May-10......  GA         Canton.........  Cherokee County.....       0/9072       3/8/10  RNAV (GPS) RWY 22,
                                                                                ORIG.
6-May-10......  SC         Conway.........  Conway-Horry County.       0/9131       3/8/10  RNAV (GPS) RWY 4,
                                                                                ORIG.
6-May-10......  SC         Conway.........  Conway-Horry County.       0/9132       3/8/10  NDB RWY 4, ORIG.
6-May-10......  SC         Conway.........  Conway-Horry County.       0/9133       3/8/10  NDB RWY 22, ORIG.
6-May-10......  GA         Douglas........  Douglas Muni........       0/9144       3/8/10  RNAV (GPS) RWY 22,
                                                                                ORIG.
6-May-10......  GA         Douglas........  Douglas Muni........       0/9146       3/8/10  RNAV (GPS) RWY 4,
                                                                                ORIG.
6-May-10......  GA         Douglas........  Douglas Muni........       0/9147       3/8/10  ILS OR LOC RWY 4,
                                                                                AMDT 1.
6-May-10......  OH         Lorain/Elyria..  Lorain County              0/9306       3/8/10  ILS OR LOC RWY 7,
                                             Regional.                                       AMDT 6B.
6-May-10......  MI         Tecumseh.......  Meyers-Diver's......       0/9316      3/11/10  VOR OR GPS A, AMDT
                                                                                7.
6-May-10......  GA         Blakely........  Early County........       0/9322       3/8/10  RNAV (GPS) RWY 5,
                                                                                AMDT 1.
6-May-10......  GA         Blakely........  Early County........       0/9323       3/8/10  LOC/NDB RWY 23, AMDT
                                                                                1.
6-May-10......  GA         Blakely........  Early County........       0/9324       3/8/10  RNAV (GPS) RWY 23,
                                                                                AMDT 1.
6-May-10......  SC         Orangeburg.....  Orangeburg Muni.....       0/9338       3/8/10  TAKEOFF MINIMUMS AND
                                                                                OBSTACLE DP, AMDT
                                                                                3.
6-May-10......  MN         Windom.........  Windom Muni.........       0/9400      3/11/10  NDB RWY 17, AMDT 5.
6-May-10......  MN         Brainerd.......  Brainerd Lakes Rgnl.       0/9579      3/11/10  TAKEOFF MINIMUMS AND
                                                                                OBSTACLE DP, AMDT
                                                                                5.
6-May-10......  MI         New Hudson.....  Oakland Southwest...       0/9583      3/17/10  VOR OR GPS A, AMDT
                                                                                3A.
6-May-10......  MI         Cadillac.......  Wexford County......       0/9586      3/17/10  NDB RWY 7, AMDT 2.
6-May-10......  MI         Cadillac.......  Wexford County......       0/9587      3/17/10  RNAV (GPS) RWY 7,
                                                                                ORIG.
6-May-10......  MI         Cadillac.......  Wexford County......       0/9588      3/17/10  ILS OR LOC RWY 7,
                                                                                ORIG-A.
6-May-10......  MI         Detroit........  Detroit Metropolitan       0/9684      3/17/10  ILS OR LOC RWY 27R,
                                             Wayne County.                                   AMDT 11A.

6-May-10......  ME         Caribou........  Caribou Muni........       0/9838      3/17/10  RNAV (GPS) RWY 19,
                                                                                ORIG.
6-May-10......  FL         Tampa..........  Tampa Intl..........       0/9917      3/17/10  ILS OR LOC RWY 18R,
                                                                                AMDT 4B.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2010-6654 Filed 4-14-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Notices]
[Pages 12649-12653]
[FR Doc No: 2017-04204]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80120; File No. SR-NASDAQ-2017-015]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change To Adopt Rule 7017

February 28, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 17, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the

proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to adopt Rule 7017 to enhance the level of
information provided to a member acting as the stabilizing agent for a
follow-on offering of additional shares of a security that is listed on
Nasdaq.\3\
---------------------------------------------------------------------------

    \3\ Proposed Rule 7017 defines ``Stabilizing Agent,'' in
pertinent part, as ``a Nasdaq member that will engage . . . in
stabilizing with respect to a security that is the subject of a
Follow-On Offering on the day of such offering'', and defines
``Follow-On Offering'' as ``a public offering of additional shares
of a security that is already listed on Nasdaq.''
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    Nasdaq is proposing to adopt Rule 7017 to enhance the level of
information provided to a member acting as a Stabilizing Agent for a
Follow-On Offering. A Follow-On Offering occurs when an issuer of a
security listed on Nasdaq conducts an underwritten public offering of
additional shares of the same security.\4\ As is the case with an
initial public offering (``IPO''), shares are allocated to investors by
the underwriter or underwriting syndicate through a book-building
process prior to the day of the offering. However, since the security
is already listed and trading in the public markets, the security is
not subject to a unique process to establish its initial price
following the offering. Rather, the security opens for trading as it
would on any other day, with trading during a pre-market period
commencing at 4:00 a.m. and an auction process--the Nasdaq Opening
Cross (the ``Cross'')--that occurs at approximately 9:30 a.m. at the
beginning of the regular trading session for the security.
---------------------------------------------------------------------------

    \4\ Proposed Rule 7017 defines ``Follow-On Offering Security''
as ``a security that is the subject of a Follow-On Offering.''
---------------------------------------------------------------------------

    As is the case with an IPO, however, the Stabilizing Agent--usually
the lead underwriter--engages in permissible ``stabilizing'', as
defined in Rule 100 under Regulation M,\5\ for the offering. As
provided by Rule 104 under Regulation M,\6\ stabilizing of an offering
is permitted only to the extent that the person engaging in the
activity complies with the limitations described in that rule. These
limitations include a requirement that stabilizing must be solely for
the purpose of preventing or retarding a decline in the market price of
the security, limitations on the maximum price of a stabilizing bid,
and a requirement that a syndicate engaging in an offering maintain no
more than one stabilizing bid at the same price and time in a given
market.
---------------------------------------------------------------------------

    \5\ 17 CFR 242.100.
    \6\ 17 CFR 242.104.
---------------------------------------------------------------------------

    In the case of a Follow-On Offering, the Stabilizing Agent may
enter a stabilizing bid into the market for the purpose of supporting
the price of the security on the day of the offering. Thus, the
Stabilizing Agent stands ready during the course of the day to commit
its capital in support of the Follow-On Offering Security, buying from
investors that wish to sell the security to realize short-term gains
(or to minimize short-term losses). The Stabilizing Agent thereby
serves to dampen volatility in the security and promote the maintenance
of a fair and orderly market. In particular, the Stabilizing Agent may
enter a stabilizing order in the Cross to dampen volatility at the
open, and may enter orders on behalf of customers seeking to buy or
sell in the Cross. Because the function performed by the Stabilizing
Agent is unique on the day of the offering, Nasdaq has concluded that
providing additional information about pre-opening interest in the
Follow-On Offering Security to the Stabilizing Agent will help it to
optimize the opening of the stock and manage its own risk, thereby
assisting in promoting a fair and orderly market. Accordingly, Nasdaq
is proposing to introduce the Follow-On Offering Indicator Service (the
``Service''), a specialized data product that will be made available
solely to the Stabilizing Agent.
    In advance of the Cross for all securities, including securities
that are the subject of a Follow-On Offering, Nasdaq disseminates the
Order Imbalance Indicator, an electronic message containing information
about the possible price and volume of the Cross. (The Order Imbalance
Indicator is described in Rule 4752, and is often referred to as the
``Net Order Imbalance Indicator,'' or ``NOII''.) The NOII is
disseminated to market participants every five seconds, beginning at
9:28 a.m. and concluding with the Cross at approximately 9:30 a.m. The
Service would, in addition, make the same information contained in the
NOII available to the Stabilizing Agent, every five seconds beginning
at 9:20 a.m. until the time of the Cross. Specifically, as provided in
Rule 4752, the information provided by the NOII includes the Current
Reference Price,\7\ the number of shares eligible for execution in the
Cross that are paired at the Current Reference Price, the size of any
Imbalance,\8\ the buy or sell direction of any Imbalance, indicative
prices at which the Cross would occur at that time and the percentage
by which such prices are outside the current Nasdaq Market Center best
bid or best offer,\9\ and an indication of whether marketable buy or
sell orders would remain unexecuted.
---------------------------------------------------------------------------

    \7\ See Rule 4752(a)(2)(A). The Current Reference Price is the
single price that is at or within the current Nasdaq Market Center
best bid and offer that satisfies stated criteria used to determine
the price at which the Cross ultimately would occur, focused on
maximizing order interaction.
    \8\ See Rule 4752(a)(1). An Imbalance is the number of shares to
buy or sell entered for participation in the Cross--specifically,
Market on Open (``MOO'') orders, Limit on Open (``LOO'') orders, and
regular market hour orders entered prior to 9:28 a.m. (``Early
Market Hours orders'')--that may not be matched with other eligible
orders at the Current Reference Price.
    \9\ See Rule 4752(a)(2)(E). In contrast to the Current Reference
Price, which signals a price within the Nasdaq best bid and offer at
which order interaction would be maximized, the indicative prices
signal the extent to which orders on the book may cause the Cross to
occur at a price outside the current bid and offer. Accordingly, it
signals the extent to which additional trading interest entered for
potential execution in the Cross may alter the final execution price
of the Cross. The indicative prices consist of the ``Near Clearing
Price,'' which is the price at which MOO orders, LOO orders, Opening
Imbalance Only (``OIO'') orders, Early Market Hours orders, and
other orders and quotations on the Nasdaq Book (``Open Eligible
Interest'') may execute, and the ``Far Clearing Price,'' which is
the price at which MOO orders, LOO orders, OIO orders and Early
Market Hours orders may execute.
---------------------------------------------------------------------------

    In addition, beginning at 9:20 a.m., the Service will provide the
Stabilizing Agent with additional information about the shares that it
has entered for potential execution in the Cross, similar to the
information currently provided through Nasdaq's IPO Indicator Service
with respect to the Nasdaq Halt Cross for an IPO. Specifically, the
Service will provide the total number of shares

entered by the Stabilizing Agent for potential execution in the
Cross,\10\ the price and buy or sell direction of Follow-On Offering
Shares, the number and execution price of buy and sell Follow-On
Offering Shares that would be executed in the Nasdaq Opening Cross if
it were to price based on the most recent NOII information, and the
number of buy and sell Follow-On Offering Shares that would not be
executed at the price. The Stabilizing Agent will be able to organize
this information on an order-by-order basis, or group it together into
blocks of orders designated by the Stabilizing Agent. Nasdaq is not
proposing at this time to provide the Stabilizing Agent for a Follow-On
Offering with aggregated order book information of the sort that is
currently provided through the IPO Book Viewer to the Stabilizing Agent
for an IPO.\11\
---------------------------------------------------------------------------

    \10\ Proposed Rule 7017 would define ``Follow-On Offering
Shares'' as ``the shares of a Stabilizing Agent's orders entered for
its own account or on behalf of customers for potential execution in
the Nasdaq Opening Cross with respect to a Follow-On Offering
Security.''
    \11\ See current Rule 7015(j), to be redesignated as Rule
7017(b). The IPO Book Viewer provides the total number, and
aggregate size, of orders on the book, grouped in increments of
either $0.05, $0.10, or $0.25 at the election of the stabilizing
agent.
---------------------------------------------------------------------------

    Nasdaq believes that providing this information to the Stabilizing
Agent will assist it in performing its obligations with respect to the
maintenance of a fair and orderly market by giving it more time in
which to understand the forces of supply and demand for the Follow-On
Offering Security in advance of its opening. This information will, in
turn, allow the Stabilizing Agent to respond in a more informed manner
to questions from customers and other market participants regarding
expectations that an order to buy or sell with a stated price and size
may be executable in the Cross. The information will also assist the
Stabilizing Agent in making decisions about the appropriate level of
capital to commit to support the security once trading commences. Once
the Cross executes, the Service will cease to be available, since the
information provided is relevant only to the Cross; similar information
will not be provided to the Stabilizing Agent with respect to the
Nasdaq Closing Cross on that day. Thus, the Stabilizing Agent will not
be provided with any information not available to other market
participants once the Cross occurs. In proposing to make the
information provided through the Service available solely to the
Stabilizing Agent, Nasdaq seeks to recognize and support the special
obligations and risks undertaken by the Stabilizing Agent, but also to
recognize that the market conditions of a Follow-On Offering are not
the same as those of an IPO, because the Follow-On Offering Security
has an established trading market that is not halted while the Follow-
On Offering is occurring. As a result, Nasdaq is seeking to strike a
balance between supporting the Stabilizing Agent and the orderly
trading of the Follow-On Offering Security without unduly altering the
usual process for the daily opening of trading. While Nasdaq believes
that the Service as proposed will adequately support the Stabilizing
Agent, Nasdaq reserves the right to propose enhancements to the Service
in the future based on experience.
    Nasdaq believes that the information to be provided through the
Service is similar in purpose to the information available to the
stabilizing agent for a follow-on offering of a security listed on the
New York Stock Exchange (``NYSE''). Currently, as provided in NYSE Rule
104(j), the Designated Market Maker (``DMM'') for a security has access
to aggregated and certain order-specific information about securities
for which it is the DMM at all times, including at the time of a
follow-on offering. Moreover, the DMM is permitted to share this
information with floor brokers to ``respond to an inquiry . . . in the
normal course of business.'' \12\ When a follow-on offering is being
conducted at NYSE, the DMM therefore has access to aggregated order
book information and is free to share it with the floor broker for the
firm acting as stabilizing agent for the offering.\13\ Thus, the
stabilizing agent may use the information to respond to requests from
its customers and others regarding expectations about the offering, and
may use the information to inform decisions about committing capital in
support of the offering. In fact, information from the DMM remains
available not only prior to market open, but throughout the trading
day. By providing a Stabilizing Agent on Nasdaq with early access to
the NOII, as well as information about how the Stabilizing Agent's
orders might perform in the Opening Cross, Nasdaq will provide the
Stabilizing Agent with insights into the condition of the Nasdaq order
book leading up to the Opening Cross. Thus, although the Service will
not provide aggregated or order-specific information in exactly the
same manner as is possible under Rule 104(j), Nasdaq believes that the
Service will allow it to provide benefits to Stabilizing Agents for
Follow-On Offerings conducted on Nasdaq similar in effect to those
provided for offerings on NYSE, without altering the competing market
maker model that Nasdaq employs.
---------------------------------------------------------------------------

    \12\ NYSE Rule 104(j)(iii).
    \13\ Id.
---------------------------------------------------------------------------

    Since the information provided through the Service will be directly
available only to the Stabilizing Agent, Nasdaq believes that it is
appropriate to adopt safeguards in order to ensure that the information
is not misused. The safeguards will be identical to those adopted with
respect to the IPO Book Viewer. Specifically, the proposed rule will
require the Stabilizing Agent receiving the Service to maintain and
enforce written policies and procedures reasonably designed to achieve
the following purposes:
     Restrict electronic access \14\ to information from the
Service only to associated persons of the Stabilizing Agent who need to
know the information in connection with stabilizing the Follow-On
Offering Security and establishing its opening price;
---------------------------------------------------------------------------

    \14\ As discussed below, electronic access to the Service will
be available on a displayed basis only.
---------------------------------------------------------------------------

     Except as may be required for purposes of maintaining
books and records for regulatory purposes,\15\ prevent the retention of
information from the Service following the completion of the Cross for
the Follow-On Offering Security;
---------------------------------------------------------------------------

    \15\ See, e.g., SEC Rule 17a-4(a)(4), 17 CFR 240.17a-4(a)(4).
---------------------------------------------------------------------------

     Prevent persons with access to information from the
Service from engaging in transactions in the Follow-On Offering
Security other than transactions in the Cross; transactions on behalf
of a customer; or stabilizing. Thus, for example, the Stabilizing Agent
or its affiliates would not be permitted to use the information to
engage in proprietary trading other than in support of bona fide
stabilizing activity.
    However, for the avoidance of doubt regarding appropriate uses of
the information, the proposed rule will also provide that nothing
contained in the rule shall be construed to prohibit the member acting
as the Stabilizing Agent from (i) engaging in stabilizing consistent
with that role, or (ii) using the information provided from the Service
to respond to inquiries from any person, including, without limitation,
other members, customers, or associated persons of the Stabilizing
Agent, regarding the expectations of the member acting as the
Stabilizing Agent with regard to the possibility of executing stated
quantities of an offering security at stated prices in the Cross.
Because the Service will provide the

Stabilizing Agent with insights into the state of the Nasdaq order book
in the period prior to the Cross, Nasdaq believes that the proposal is
similar in effect to availability of information to the stabilizing
agent for a follow-on offering on NYSE. Nasdaq further believes that
the permitted uses of the information to be made available through the
Service are entirely consistent with established practices at NYSE,
under which the DMM may display aggregated order book information to
the floor broker acting as stabilizing agent, who is then free to
discuss this information with other members, customers, and associated
persons of the stabilizing agent.
    The information provided through the Service will be available
solely for display on the screen of a computer for which an entitlement
has been provided by Nasdaq. Under no circumstances may a member
redirect such information to another computer or reconfigure it for use
in a non-displayed format, including, without limitation, in any
trading algorithm. If a member becomes aware of any violation of the
restrictions contained in the proposed rule, it must report the
violation promptly to Nasdaq.
    The Service will be provided free of charge through the IPO
Workstation, and at no additional charge to users of the Nasdaq
Workstation. Although Nasdaq may, in the future, institute a charge for
the Service, it is not proposing a fee at this time. The proposed rule
change also moves provisions of Rule 7015 pertaining to the IPO
Workstation, the IPO Indicator Service, and the IPO Book Viewer from
that rule into proposed Rule 7017. In making this change, Nasdaq is
adopting a more detailed description of the information currently
provided through the IPO Indicator Service,\16\ but is not proposing
any substantive changes to the rule or to the operation of the
facilities in question. The new language states that:
---------------------------------------------------------------------------

    \16\ Specifically, the new language specifies the exact
information provided through the IPO Indicator Service. This
information was described in the rule filings that established the
IPO Indicator Service, but was not detailed in the rule text. See
Securities Exchange Act Release No. 73950 (December 29, 2014), 80 FR
268 (January 5, 2015) (SR-NASDAQ-2014-100); Securities Exchange Act
Release No. 74041 (January 13, 2015), 80 FR 2762 (January 20, 2015)
(SR-NASDAQ-014-110).
---------------------------------------------------------------------------

     The IPO Indicator Service provides Order Imbalance
Indicator information for an IPO Security, as described in Rule
4753(a)(3), and
     The IPO Indicator Service provides the total number of a
member firm's IPO Shares,\17\ the price and buy or sell direction of
such IPO Shares, the number and execution price of buy and sell IPO
Shares that would be executed in the Nasdaq Halt Cross if the Nasdaq
Halt Cross were to price based on the most recent Order Imbalance
Indicator information, and the number of buy and sell IPO Shares that
would not be executed at that price.
---------------------------------------------------------------------------

    \17\ Nasdaq is adding a definition of ``IPO Shares,'' to mean
``the shares of a member firm's orders entered for potential
execution in the Nasdaq Halt Cross for an IPO Security.'' ``IPO
Security'' is defined as ``a security for which the halting and
initial pricing procedures described in Rules 4120(c)(8) and (9) and
4753 are available.''
---------------------------------------------------------------------------

     A member may organize order information by order or order
block.
     The IPO Indicator Service is available as an element of
the Nasdaq Workstation Trader, subject to the fees provided for under
Rule 7015. Alternatively, the IPO Indicator Service is available
through a standalone Nasdaq IPO Workstation, at no cost.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act \18\ in general, and furthers
the objectives of Section 6(b)(5) \19\ in particular, in that the
proposal is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
Nasdaq further believes that the introduction of the Service without a
fee at this time is consistent with Sections 6(b)(4) and (5) of the
Act,\20\ in that it provides for the equitable allocation of reasonable
dues, fees and other charges among recipients of Nasdaq data and is not
designed to permit unfair discrimination between them.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f.
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------

    Nasdaq believes that the proposed rule change will promote the
goals of the Act by assisting the Stabilizing Agent for a Follow-On
Offering Security in promoting a fair and orderly market. Specifically,
by providing additional information regarding possible pricing and
order execution outcomes for the Cross, the Service will give the
Stabilizing Agent information that will assist it in achieving a range
of goals. By being able to share such information with other members
and customers, the Stabilizing Agent will enable greater participation
in the Cross because it will be able to provide more certain
information about the ability of investors to execute Orders at
particular sizes and prices. Moreover, having greater knowledge about
possible outcomes of the Cross prior to its execution will enable the
Stabilizing Agent to make more informed decisions about the extent of
capital it may need to commit in the Cross and after the commencement
of trading in order to stabilize the price of the Follow-On Offering
Security and thereby dampen volatility that might undermine investor
confidence.
    Nasdaq further believes that the restrictions it proposes to impose
on the use of the Service will protect against possible misuse of the
provided information. Notably, the information will be provided only
prior to the completion of the Cross and may not be retained
thereafter, except to the extent necessary for record-retention
purposes. The information will be disseminated in a display format only
and may not be redirected or reconfigured for non-display usage (such
as usage by a trading algorithm). Moreover, electronic access to the
information will be available only to certain designated individuals
with a role in conducting stabilizing activities, and persons with
access may not engage in transactions other than stabilizing or
transactions in the Cross or on behalf of a customer. As discussed
above, the Service is intended to allow the Stabilizing Agent to draw
conclusions about the state of the Nasdaq order book prior to the
Cross, and is therefore intended to achieve an effect similar to the
availability of aggregated order book information under NYSE Rule
104(j). Although the Commission has not expressed any concerns about
the availability of aggregated information to DMMs and floor brokers
(including stabilizing agents) with whom they share such information on
NYSE, Nasdaq believes that the safeguards it proposes around the use of
the Service's information by a Stabilizing Agent will provide added
assurance to members and the investing public that the Service will not
be misused.
    Finally, Nasdaq notes that although the Service will be available
only to Stabilizing Agents, this limitation is consistent with the
protection of investors because the Stabilizing Agent plays a unique
role on the day of a Follow-On Offering because it must commit capital
in support of the Follow-On Offering Security once trading

begins. Because the Service will assist the stabilizing agent in
performing this function, which is performed by no other broker, Nasdaq
believes that it is reasonable to limit access to the Service to the
Stabilizing Agent. Moreover, because the Service will cease to be
available once the Cross is executed and the information provided
therein will quickly become stale, Nasdaq does not believe that access
to the information will provide the Stabilizing Agent with any unfair
advantage.
    Nasdaq believes that the proposal to move provisions of Rule 7015
into Rule 7017 is consistent with the Act because the change is
intended to promote a clear understanding of the rule text by including
in a single rule all Nasdaq data services that are specifically
designed to support the initial trading of securities that are the
subject of an IPO or a Follow-On Offering. Nasdaq further believes that
the proposal to make the Service available to eligible recipients at no
additional charge is reasonable because it will not result in any
increase in the costs incurred by a Stabilizing Agent to receive the
additional information. Nasdaq further believes that the proposal is
consistent with an equitable allocation of fees and not unfairly
discriminatory because additional information is being provided to a
limited group of potential users in order to assist in the promotion of
fair and orderly markets during a Follow-On Offering. Accordingly, the
absence of an additional fee is designed to encourage eligible members
to accept the information in order to ensure that the goals of the
proposal are advanced to the greatest extent possible.
    Nasdaq further believes that the non-substantive changes it is
making to move information about the IPO Indicator Service from Rule
7015 to new Rule 7017, and to provide additional detail in Rule 7017
about the information available through the IPO Indicator Service, are
consistent with the Act because they will promote a clearer
understanding of the IPO Indicator Service by members and other
interested persons.

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

    Nasdaq 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. In fact, because the Service is
intended to provide the Stabilizing Agent with information about the
condition of the Nasdaq order book in advance of the Cross, Nasdaq
believes that the proposal will help it compete more effectively with
NYSE by allowing it to provide to Stabilizing Agents with information
that is similar in effect to the information available to stabilizing
agents through the NYSE DMM. Accordingly, Nasdaq does not believe that
there can be any reasonable objection to the proposal on competitive
grounds.

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

    No written comments were either solicited or received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (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-NASDAQ-2017-015 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-NASDAQ-2017-015. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2017-015 and should
be submitted on or before March 27, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04204 Filed 3-3-17; 8:45 am]
BILLING CODE 8011-01-P