[Federal Register: October 14, 2010 (Volume 75, Number 198)]
[Rules and Regulations]
[Page 63086-63088]
[DOCID:fr14oc10-18]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2010-0873]
RIN 1625-AA00

Great Mississippi Balloon Race and Fireworks Safety Zone; Lower
Mississippi River, Mile Marker 365.5 to Mile Marker 363, Natchez, MS

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing a temporary safety zone for
all waters of the Lower Mississippi River from mile marker 365.5 to 363
extending the entire width of the river. This safety zone is needed to
protect persons and vessels from the potential safety hazards
associated with a fireworks display and low flying hot air balloons
transiting across the Lower Mississippi River. Entry into this zone is
prohibited to all vessels, mariners, and persons unless specifically
authorized by the Captain of the Port (COTP) Lower Mississippi River or
a designated representative. The COTP Lower Mississippi River or a
designated representative must authorize vessels that desire to operate
in this zone.

DATES: This rule is effective from 7:15 p.m. on October 15, 2010, until
6 p.m. on October 16, 2010.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2010-0873 and are available online
by going to http://www.regulations.gov, inserting USCG-2010-0873 in the
``Keyword'' box, and then clicking ``Search.'' They are also available
for inspection or copying at the Docket Management Facility (M-30),
U.S. Department of Transportation, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary rule, call or e-mail Lieutenant Junior Grade Jason Erickson,
Coast Guard; telephone<PHONE_NUMBER>, e-mail<EMAIL_ADDRESS>
If you have questions on viewing the docket, call Renee V. Wright,
Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Regulatory Information

    The Coast Guard is issuing this temporary final rule without prior
notice and opportunity to comment pursuant to authority under section
4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule. Publishing an NPRM would be impracticable in
this situation because immediate action is needed to protect the
participants in the fireworks display, spectators, and mariners from
the safety hazards associated with a fireworks display and low flying
hot air balloons transiting over a confined waterway.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. This is because immediate action
is needed to protect the participants in the fireworks display,
spectators, and mariners from the safety hazards associated with a
fireworks display and low flying hot air balloons transiting over a
confined waterway.

Basis and Purpose

    On September 13, 2010, the Coast Guard received an Application for
Approval of Marine Event for a fireworks display and a hot air balloon
race on the Lower Mississippi River. This safety zone is needed to
protect participants, spectators, and other mariners from the possible
hazards associated with a fireworks show and hot air balloon race
taking place on the Lower Mississippi River. The fallout zone extends
into the navigable channel of the river.

Discussion of Rule

    The Coast Guard is establishing a temporary safety zone for the
Mississippi River, extending from mile marker 363 to mile marker 365.5.
Entry into this zone is prohibited unless specifically authorized by
the Captain of the Port Lower Mississippi River or a designated
representative.
    The Captain of the Port may be contacted by telephone at (901) 521-
4822. This rule will be enforced from 7:15 p.m. until 8:45 p.m., local
time, on October 15, 2010 and from 4:15 p.m. until 6 p.m., local time,
on October 16, 2010.

Regulatory Analyses

    We developed this rule after considering numerous statutes and
executive orders related to rulemaking. Below we summarize our analyses
based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, and does not
require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order.
    This regulation will only be in effect for a short period of time
on both days and notifications to the marine community will be made
through broadcast notice to mariners. The impacts on routine navigation
are expected to be minimal.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will
not have a significant economic impact on a substantial number of small
entities. This rule will affect the following entities, some of which
may be small entities: The owners or operators of vessels intending to
transit the Lower Mississippi River between mile marker 363 and mile
marker 365.5, effective from 7:15 p.m. to 8:45 p.m., local time, on
October 15, 2010 and 4:15 p.m. to 6 p.m., local time, on October 16,
2010.
    This safety zone will not have a significant economic impact on a
substantial number of small entities because this rule will only be in
effect for two hours on each day the event is occurring. In addition,
the common vessel traffic in this area is limited almost entirely to
recreational vessels and commercial towing vessels.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small
entities in understanding the rule so that they can better evaluate its
effects on them and participate in the rulemaking process.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

Taking of Private Property

    This rule will not cause a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and

Interference with Constitutionally Protected Property Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have concluded
this action is one of a category of actions that do not individually or
cumulatively have a significant effect on the human environment. This
rule is categorically excluded, under figure 2-1, paragraph (34)(g), of
the Instruction. This rule involves a fireworks display that is not
expected to result in any significant adverse environmental impact as
described in NEPA.
    An environmental analysis checklist and a categorical exclusion
determination are available in the docket where indicated under
ADDRESSES.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

0
For the reasons discussed in the preamble, the Coast Guard amends 33
CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701, 3306,
3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, 160.5; Pub.
L. 107-295, 116 Stat. 2064; Department of Homeland Security
Delegation No. 0170.1.

0
2. A new temporary Sec.  165.T08-0873 is added to read as follows:

Sec.  165.T08-0873  Great Mississippi Balloon Race and Fireworks Safety
Zone; the Mississippi River, extending from mile marker 363 to mile
marker 365.5, in the vicinity of Natchez, MS.

    (a) Location. The following area is a safety zone: those waters of
the Lower Mississippi River, beginning at mile marker 363 and ending at
mile marker 365.5, extending the entire width of the river.
    (b) Enforcement Period. This section will be enforced from 7:15
p.m. to 8:45 p.m., local time, on October 15, 2010 and from 4:15 p.m.
to 6 p.m., local time, on October 16, 2010.
    (c) Regulations. (1) In accordance with the general regulations in
Sec.  165.23 of this part, entry into this zone is prohibited unless
authorized by the Captain of the Port Lower Mississippi River or a
designated representative.
    (2) Persons or vessels requiring entry into or passage through the
zone must request permission from the Captain of the Port Lower
Mississippi River or a designated representative. They may be contacted
on VHF-FM channels 16 or by telephone at<PHONE_NUMBER>.
    (3) All persons and vessels shall comply with the instructions of
the Captain of the Port Lower Mississippi River and designated
personnel. Designated personnel include commissioned, warrant, and
petty officers of the U.S. Coast Guard.
    (d) Informational Broadcasts. The Captain of the Port, Lower
Mississippi River will inform the public when safety zones have been
established via Broadcast Notice to Mariners.

    Dated: September 16, 2010.
Michael Gardiner,
Captain, U.S. Coast Guard, Captain of the Port, Lower Mississippi
River.
[FR Doc. 2010-25804 Filed 10-13-10; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 84, Number 201 (Thursday, October 17, 2019)]
[Notices]
[Pages 55616-55621]
[FR Doc No: 2019-22698]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87293; File No. SR-CboeEDGX-2019-060]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Fee Schedule To Institute a Derived Data API Service

October 11, 2019.
    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 October 1, 2019, Cboe EDGX Exchange, Inc. (``Exchange'' or ``EDGX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe EDGX Exchange, Inc. (``EDGX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend the fee schedule to institute a Derived
Data API Service. The text of the proposed rule change is attached as
Exhibit 5 [sic].
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to implement a pricing
structure that would reduce fees charged to Distributors that
distribute Derived Data through an Application Programming Interface
(``API'')--i.e., the Derived Data API Service (the ``Program''). The
Exchange initially filed to introduce the Program on August 1, 2019
(``Initial Proposal'') based on customer demand, and in order to be
able to decrease the cost of Derived Data to Distributors that wish to
distribute Derived Data through an API Service.\3\ The Initial Proposal
was published in the Federal Register on August 20, 2019,\4\ and the
Commission received no commenter letters on the proposal. The Program
remained in effect until the fee change was temporarily suspended
pursuant to a suspension order (the ``Suspension Order'').\5\ The
Suspension Order also instituted proceedings to determine whether to
approve or disapprove the Initial Proposal.\6\
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    \3\ An ``API Service'' is a type of data feed distribution in
which a Distributor delivers an API or similar distribution
mechanism to a third-party entity for use within one or more
platforms. The service allows Distributors to provide Derived Data
to a third-party entity for use within one or more downstream
platforms that are operated and maintained by the third-party
entity. The Distributor maintains control of the entitlements, but
does not maintain technical control of the usage or the display.
    \4\ See Securities Exchange Act Release No. 86644 (August 13,
2019), 84 FR 42971 (August 19, 2019) (SR-CboeEDGX-2019-049).
    \5\ See Securities Exchange Act Release No. 87144 (September 27,
2019) (SR-CboeEDGX-2019-049) (Federal Register publication pending).
    \6\ Id.
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    The Exchange continues to believe that it is in the best interest
of its customers and investors to permit the distribution of Derived
Data through an API Service at a lower cost, and is therefore filing
again to reduce the fees charged to Distributors that offer an API
Service. By reducing its pricing, the Exchange hopes to be able to
better compete with top of book market data products offered by other
national securities exchanges and the securities information processors
(``SIPs''). For the reasons expressed both in this filing and the
Initial Proposal, the Exchange believes that the Program is pro-
competitive, and otherwise consistent with the Exchange Act. In sum,
the Exchange remains committed to competing for business by offering
both high quality and cost effective data. Continued operation of the
Program would ultimately support that goal, and indeed would foster
additional competition in the market for U.S. equity market data.
Derived Data
    ``Derived Data'' is pricing data or other data that (i) is created
in whole or in part from Exchange Data, (ii) is not an index or
financial product, and (iii) cannot be readily
reverse[hyphen]engineered to recreate Exchange Data or used to create
other data that is a reasonable facsimile or substitute for Exchange
Data. The Exchange currently offers a Derived Data White Label Service
Program that allows Distributors to benefit from discounted fees when
distributing Derived Data taken from EDGX Top, which is a proprietary
data product that provides top of book quotations and execution
information for all equity securities traded on the Exchange.\7\ The
current program is limited to the distribution of Derived Data to
subscribers within a White Label Service which is a type of hosted
display solution in which a Distributor hosts, maintains, and controls
a website or platform on behalf of a third-party entity.
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    \7\ See Rule 13.8(c).
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    When the Exchange filed to introduce the White Label Service
Program, a number of Distributors contacted the Exchange to inquire
about offering a similar program for API Services due to demand for
such products from their end clients. The Derived Data API Service
would supplement the current Derived Data White Label Service Program
by offering discounted fees for Distributors that make Derived Data
available through an API, thereby allowing Distributors to benefit from
reduced fees when distributing Derived Data to subscribers that
establish their own platforms rather than relying on a hosted display
solution. In turn, the Exchange believes that the Program would allow
Distributors to reach a broader customer base that includes end clients
that desire more flexibility and control over how Derived Data is used,
furthering both the distribution and cost effectiveness of Exchange
market data, and allowing the Exchange to compete for business that may
otherwise go to its competitors.
    Although White Label Service Platforms are valuable to certain end
clients that may not have the technology or resources to build their
own applications to display Derived Data, such products offer only an
``off-the-shelf'' solution, as the platform is ultimately designed and
controlled by the Distributor. Thus, subsequent to the introduction of
the White Label Service Program, Distributors have encouraged the
Exchange to offer a Program for API Services that would provide greater
flexibility and control to end clients who have already developed
applications and tools for servicing their customers. Unlike the White
Label Service, where the Distributor is responsible for developing an
``off-the-shelf'' technology platform that is standard and not designed
specifically for a particular client, the API Service allows
Distributors to use Exchange market data to create financial
instruments, such as contracts for difference, that are then offered
via API to end clients that can use that information in one or more of
their own customized applications based on their specific business
needs and the needs of their downstream users. The API Service would
therefore offer significant advantages over the White Label Service
Program, and would provide another alternative pricing option that
Distributors can choose to utilize (or not) in their efforts to obtain
high quality and cost effective access to top of book U.S. equities
data to create Derived Data.
    With the implementation of the API Service Program, the Exchange
would continue to offer the current White Label Service Platform,
thereby ensuring that Distributors that prefer the design or cost
structure of that offering can continue to reap the benefits of that
program. Offering additional programs for Derived Data based on
customer demand and the ways in which Derived Data is currently being
utilized enhances customer choice, and provides alternatives to the
market that would otherwise not be available to Distributors and their
end clients.
Current Fee Structure
    The Exchange currently charges a fee of $1,500 per month for
external distribution of EDGX Top. In addition, external distributors
of EDGX Top are charged a fee of $4 per month for each Professional
User and $0.10 per month for each Non-Professional User. The Exchange
also offers special pricing for Derived Data provided through a White
Label Service, as mentioned above. This service allows Distributors to
make Derived Data available on a platform that is branded with a third-
party brand, or co-branded with a third party and a Distributor.\8\ The
White Label Service Program can be used for a number of different
purposes, including the display of information or data, or the

creation of derivative instruments, primarily contracts for
difference,\9\ but is unavailable to Distributors that make such
information available through an API. Such Distributors are not
eligible for discounted Derived Data pricing today, and are instead
liable for the fees normally applicable for the distribution of EDGX
Top, as listed at the beginning of this paragraph.
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    \8\ The Distributor maintains control of the application's data,
entitlements and display.
    \9\ A contract for difference is an agreement to exchange the
difference between the current value of an asset and its future
value. If the price increases, the seller pays the buyer the amount
of the increase. If the price decreases, the buyer pays the seller
the amount of the decrease.
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Discounted Fees for Derived Data API Service
    As proposed, a Distributor that provides a Derived Data API Service
for Derived Data taken from EDGX Top would be liable for the following
fees instead of the fees normally applicable for the distribution of
EDGX Top. Instead of the regular fee for external distribution,
Distributors would be charged a tiered External Subscriber Fee based on
the number of API Service Platforms (i.e., ``External Subscribers'')
that receive Derived Data from the Distributor through a Derived Data
API Service.
    As proposed, Distributors would continue to be charged a fee of
$1,500 per month for each External Subscriber if the Distributor makes
Derived Data available to 1-5 External Subscribers. Distributors that
make Derived Data available to additional External Subscribers would
benefit from discounted pricing based on the number of External
Subscribers. Specifically, the external distribution fee would be
lowered by 16.67% to $1,250 per month for each External Subscriber if
the Distributor makes Derived Data available to 6-20 External
Subscribers, and further lowered another 16.67% to $1,000 per month for
each External Subscriber if the Distributor makes Derived Data
available to 21 or more External Subscribers.
    As is the case under the Derived Data White Label Service, the
External Subscriber Fee would be non-progressive and based on the
number of External Subscribers that receive Derived Data from the
Distributor. For example, a Distributor providing Derived Data based on
EDGX Top to six External Subscribers that are API Service Platforms
would be charged a monthly fee of $7,500 (i.e., 6 External Subscribers
x $1,250 each). The Derived Data API Service, however, would allow end
clients to, at their discretion, choose to use Derived Data in one or
more customized applications (e.g., mobile application, website,
terminal) without incurring additional External Subscriber fees. That
is, the fees would be charged per API Service, and not based in any way
on the number of applications used by the end client to serve their
downstream users. By contrast, under the White Label Service, end
clients are generally limited to a single platform managed by the
Distributor, rather than uncontrolled access to an API, and would be
subject to the full External Subscriber fee for access to that single
platform without the ability to offer additional platforms for the same
fee.
    The Exchange would continue to charge a monthly Professional User
fee of $4 per month for each Professional User that accesses Derived
Data through an API Service. The current Non-Professional User fee of
$0.10 per month would be eliminated when participating in the Derived
Data API Service, further reducing costs for Distributors that provide
access to such data to downstream investors.
Financial Product Distribution Program
    With the proposed introduction of the Derived Data API Service, the
Exchange would bring together the Derived Data White Label Service and
Derived Data API Service under the common heading ``Financial Product
Distribution Program.'' The Financial Product Distribution Program
would encompass both of these products.
    Similar to the Derived Data White Label Service, the Derived Data
API Service would be entirely optional, in that it applies only to
Distributors that opt to use Derived Data from EDGX Top to create an
API Service, as described herein. It does not impact or raise the cost
of any other Exchange product, nor does it affect the cost of EDGX Top,
except in instances where Derived Data is made available on an API
Service. A Distributor that provides a White Label Service or API
Service for Derived Data taken from EDGX Top would be liable for the
fees associated with the White Label Service or API Service instead of
the fees normally applicable for the distribution of EDGX Top. A
Distributor that provides a White Label Service or API Service for EDGX
Top data that is not Derived Data or distributes Derived Data through a
platform other than a White Label Service or API Service would be
liable for the fees normally applicable for the distribution of EDGX
Top.
Market Background
    The market for top of book data is highly competitive as national
securities exchanges compete both with each other and with the SIPs to
provide efficient, reliable, and low cost data to a wide range of
investors and market participants. In fact, Regulation NMS requires all
U.S. equities exchanges to provide their best bids and offers, and
executed transactions, to the two registered SIPs for dissemination to
the public. Top of book data is therefore widely available to investors
today at a relatively modest cost. National securities exchanges may
also disseminate their own top of book data, but no rule or regulation
of the Commission requires market participants to purchase top of book
data from an exchange.
    In an effort to widen distribution to market participants that use
equities market data to compute pricing for certain derivatives
instruments, national securities exchanges including the Exchange, its
affiliate, Cboe BZX Exchange Inc., and The Nasdaq Stock Market LLC
(``Nasdaq'') offer discounted pricing for Derived Data that is created
using their top of book products. The Program would therefore compete
with similar products offered by other national securities exchanges
that offer discounted fees to market participants that purchase Derived
Data. Derived Data is largely used to create derivative instruments,
such as contracts for difference, rather than to trade equity
securities, and is often purchased by market data customers outside of
the U.S. where such derivative instruments are more commonly offered.
As a result, customers that purchase top of book data to create Derived
Data do not need a consolidated quotation, and typically only purchase
top of book data to create Derived Data from one source. Customers
therefore choose where to obtain top of book data to create Derived
Data based on two factors: (1) Data quality, i.e., how much the quoted
prices reflect the overall market for particular securities, and (2)
the cost of obtaining that data. The Program would allow the Exchange
to better compete on the second of these factors by reducing the cost
of market data charged to Distributors that offer an API Service.
    As explained, the Exchange filed the Initial Proposal to introduce
the Program in August in order to provide an attractive pricing option
to Distributors that wish to provide Derived Data through an API
Service rather than a White Label Service due to the advantages of this
form of distribution, including more flexibility and control for end
clients. Although that filing was suspended by the Commission, the
Exchange believes that the experience of its affiliates in offering a
similar Program reflect the competitive nature of the market for the

creation and distribution of Derived Data.\10\ Specifically, after Cboe
BZX Exchange, Inc. (``BZX'') initially reduced the fees charged for API
Services under its initial proposal to introduce an API Service, it
successfully onboarded one new customer that switched from a competitor
product offered by Nasdaq due to the attractive pricing.\11\ The
Exchange has also been discussing the Program with a handful of
additional prospective clients that are interested in offering API
Services. Without the proposed pricing discounts, the Exchange believes
that prospective customers may not be interested in purchasing top of
book data from the Exchange, and would instead continue purchasing such
data from other national securities exchanges or the SIPs, potentially
at a higher cost than would be available pursuant to the Program.
Continued operation of the Program would therefore serve to both reduce
fees for customers and to provide alternatives to data and pricing
offered by competitors. Ultimately, the Exchange believes that it is
critical that it be allowed to compete by offering attractive pricing
to customers as increasing the availability of such products ensures
continued competition with alternative offerings. Such competition may
be constrained when competitors are impeded from offering alternative
and cost effective solutions to customers.
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    \10\ On August 1, 2019 both the Exchange and BZX filed to
introduce API Services for Derived Data. The BZX filing was also
suspended by the Commission but remained in effect prior to being
suspended. See Securities Exchange Act Release No. 87125 (September
26, 2019) (SR-CboeBZX-2019-070) (Federal Register publication
pending).
    \11\ See Cboe Innovation Spotlight, ``Invast Global--An
alternative prime broker,'' available at https://markets.cboe.com/us/equities/market_data_products/spotlight.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\12\ in general, and
furthers the objectives of Section 6(b)(4),\13\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other recipients of
Exchange data.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4).
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    The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act.\14\ Specifically, the
proposed rule change supports (i) fair competition among brokers and
dealers, among exchange markets, and between exchange markets and
markets other than exchange markets, and (ii) the availability to
brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. In addition, the
proposed rule change is consistent with Rule 603 of Regulation NMS,\15\
which provides that any national securities exchange that distributes
information with respect to quotations for or transactions in an NMS
stock do so on terms that are not unreasonably discriminatory.
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    \14\ 15 U.S.C. 78k-1.
    \15\ See 17 CFR 242.603.
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    In adopting Regulation NMS, the Commission granted SROs and broker-
dealers increased authority and flexibility to offer new and unique
market data to the public. It was believed that this authority would
expand the amount of data available to consumers, and also spur
innovation and competition for the provision of market data. The
Exchange believes that the proposed fee change would further broaden
the availability of U.S. equity market data to investors, consistent
with the principles of Regulation NMS.
    The Exchange operates in a highly competitive environment. Indeed,
there are thirteen registered national securities exchanges that trade
U.S. equities and offer associated top of book market data products to
their customers. The national securities exchanges also compete with
the SIPs for market data customers. The Commission has repeatedly
expressed its preference for competition over regulatory intervention
in determining prices, products, and services in the securities
markets. Specifically, in Regulation NMS, the Commission highlighted
the importance of market forces in determining prices and SRO revenues
and, also, recognized that current regulation of the market system
``has been remarkably successful in promoting market competition in its
broader forms that are most important to investors and listed
companies.'' \16\ The proposed fee change is a result of the
competitive environment, as the Exchange seeks to amend its fees to
attract additional subscribers for one of its proprietary top of book
data offerings through the introduction of a Derived Data API Service.
---------------------------------------------------------------------------

    \16\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable to introduce reduced
fees for the use of Derived Data on API Services as the proposed fee
reduction would facilitate cost effective access to market information
that is used primarily to create certain derivative instruments rather
than to trade U.S. equity securities. The fees that are the subject of
this rule filing are constrained by competition, and it is this
competition that is driving the proposed fee change. Indeed, the
Program is designed to allow the Exchange to compete more effectively
for market data distributors that purchase market information to offer
Derived Data to investors. The existence of alternatives to the Program
ensures that the Exchange cannot set unreasonable or unfairly
discriminatory fees, as subscribers are free to elect such
alternatives. That is, the Exchange competes with other exchanges that
provide similar market data products and pricing programs. Expanding
the availability of diverse competitive products actually promotes
additional competition as it ensures that alternative products from
different sources are readily available to Distributors and the broader
market. The Exchange therefore believes that introduction of pricing
programs such as the Derived Data API Service are not only constrained
by competition but also ensure continued competition that acts as a
constraint on the pricing of services provided by other national
securities exchanges and the SIPs.
    Derived Data is primarily purchased for the creation of certain
derivative instruments rather than for the trading of U.S. equity
securities. As a result, Distributors of Derived Data do not need a
consolidated view of the market across multiple exchanges, and
generally purchase such data from a single exchange. If a competing
exchange were to charge less for a similar product than the Exchange
charges under the proposed fee structure, prospective subscribers may
choose not subscribe to, or cease subscribing to, the Program. The
Exchange believes that lowering the cost of accessing Derived Data may
make the Exchange's market information more attractive, and encourage
additional Distributors to subscribe to EDGX Top market data instead of
competitor products.
    Indeed, the Exchange's affiliate, BZX, has already successfully
onboarded one new Distributor that has decided to purchase top of book
data from that exchange to create Derived Data rather than purchasing
top of book data from a competitor exchange, and the Exchange is in
discussions with a handful of other Distributors that are interested in
procuring market data from the Exchange due to the attractive pricing
offered pursuant to the Program. Distributors can discontinue use at
any time and for any reason, including due to an assessment of the
reasonableness of fees charged. Further, firms have a wide variety of
alternative market data products from which to choose, such as

similar proprietary data products offered by other national securities
exchanges, including those that choose to offer discounted fees for the
distribution of Derived Data in an effort to compete for this business.
    The proposed rule change would provide an alternate fee structure
for providing EDGX Top market data to Distributors that make Derived
Data available to External Subscribers via API Services. As proposed,
if a Distributor uses an API Service to distribute Derived Data, the
Distributor will be charged a fee that is tiered based on the number of
External Subscribers that are provided access to that data instead of
the higher fee normally charged for external distribution. The Exchange
believes that this fee is equitable and not unfairly discriminatory
because the Exchange will apply the same fees to any similarly situated
Distributors that elect to participate in the Program based on the
number of External Subscribers provided access to Derived Data through
an API Service, with Distributors providing access to six or more
External Subscribers receiving a discount compared to the current
pricing applicable for external distribution of EDGX Top.
    The Exchange believes that it is equitable and not unfairly
discriminatory to begin providing discounted rates to Distributors that
provide access to at least six External Subscribers as the discounted
rates are designed to incentivize firms to grow the number of External
Subscribers that purchase Derived Data from the Exchange. The Exchange
understands that Distributors that may provide this sort of API Service
typically serve a relatively larger number of External Subscribers, and
would therefore be able to meet the proposed threshold by providing
Derived Data taken from EDGX Top to those customers. The one current
subscriber to the API Service offered on the Exchange's affiliate, BZX,
intends to provide Derived Data to significantly more than six External
Subscribers.
    The Exchange would also continue to charge a small fee for
Professional Users but would eliminate Non-Professional User fees for
data provided under the Program. The Exchange believes that it is
equitable and not unfairly discriminatory to charge a fee for
Professional Users but no fee for Non-Professional Users. Non-
Professional Users are already subject to a heavily discounted fee for
EDGX Top market data relative to Professional Users. Differential fees
for Professional and Non-Professional Users are widely used by the
Exchange and other exchanges for their proprietary market data as this
reduces costs for retail investors and makes market data more broadly
available. The Exchange believes that eliminating fees for Non-
Professional Users that access Derived Data from Distributors pursuant
to the Program is consistent with longstanding precedent indicating
that it is consistent with the Act to provide reasonable incentives to
retail investors that rely on the public markets for their investment
needs.
    Further, the proposed fees will only apply to Distributors that
elect to participate in the Program by distributing Derived Data
through an API Service. EDGX Top market data is distributed and
purchased on a voluntary basis, in that neither the Exchange nor market
data distributors are required by any rule or regulation to make this
data available. Distributors of EDGX Top are not required to
participate in the proposed Program, which is merely an alternative
option being proposed by the Exchange to potentially lower costs for
market data that is Derived Data. As previously explained, the Exchange
currently offers discounted fees for Distributors that distribute
Derived Data on a White Label Service. Expanding the universe of
customers that can benefit from discounted fees for distributing
Derived Data would serve to further increase the accessibility of the
Exchange's market data products. Although the proposed pricing for the
Program differs from the pricing currently in place for the White Label
Service Program, the Exchange believes that its pricing reflects the
relative benefits provided to Distributors that offer an API Service
that allows end clients to offer one or more customized applications to
their customers rather than simply offering a single ``off-the-shelf''
solution designed and controlled by the Distributors. Indeed, the
Program was developed by the Exchange in response to demand for such a
product for Distributors that believe that they would be better able to
serve their end clients with an API Service. Distributors that prefer
the design or cost structure of the White Label Service Program would
continue to be able to subscribe to that offering. Based on customer
feedback, however, the Exchange believes that the API Service Program
would be valuable to a number of Distributors that have expressed
interest specifically in that offering.

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

    The Exchange does not believe that the proposed rule change would
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
operates in a highly competitive environment, and its ability to price
these data products is constrained by: (i) Competition among exchanges
that offer similar data products, and pricing options, to their
customers; and (ii) the existence of inexpensive real-time consolidated
data disseminated by the SIPs. Top of book data is disseminated by both
the SIPs and the thirteen equities exchanges. There are therefore a
number of alternative products available to market participants and
investors. In this competitive environment potential subscribers are
free to choose which competing product to purchase to satisfy their
need for market information. Often, the choice comes down to price, as
broker-dealers or vendors look to purchase the cheapest top of book
data product, or quality, as market participants seek to purchase data
that represents significant market liquidity. In order to better
compete for this segment of the market, the Exchange is proposing to
reduce fees charged to Distributors that distribute Derived Data
through an API. The Exchange believes that this would facilitate
greater access to such data, ultimately benefiting investors that are
provided access to such data.
    The proposed fees apply to data derived from EDGX Top, which is
subject to competition from both the SIPs and exchanges that offer
similar products, including but not limited to those that choose to
provide similar pricing options for Derived Data. A number of national
securities exchanges, including the Exchange, its affiliated Cboe U.S.
equities exchanges, and Nasdaq offer pricing discounts for Derived Data
today. These pricing programs reduce the cost of accessing top of book
market information that is used, among other things, to create
derivative instruments rather than to trade U.S. equity securities. In
order to better compete for this segment of the market, the Exchange is
proposing to expand the programs that it offers to include a Derived
Data API Service, allowing additional market data customers to benefit
from discounted pricing. The Exchange does not believe that the
proposed price reduction for Derived Data offered through an API would
cause any unnecessary or inappropriate burden on intermarket
competition as other exchanges and data vendors are free to lower their
prices to better compete with the Exchange's offering. The Exchange
believes that the proposed rule change is pro-competitive as it seeks
to offer pricing incentives to

customers to better position the Exchange as it competes to attract
additional market data subscribers.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 \18\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CboeEDGX-2019-060 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-CboeEDGX-2019-060. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGX-2019-060 and should be
submitted on or before November 7, 2019.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22698 Filed 10-16-19; 8:45 am]
 BILLING CODE 8011-01-P


Date:	May 27, 2015

To:	Docket, EPA-HQ-OAR-2014-0738

From:	Andrew Bouchard

Subject:	Meeting Record for May 27, 2015, Meeting Between the U.S. EPA and ExxonMobil Chemical Company

On May 27, 2015, representatives of the U.S. Environmental Protection Agency (EPA) participated in a meeting with ExxonMobil Chemical Company. The purpose of the meeting was to discuss ExxonMobil’s comments that were submitted to the docket on the initial MPGF AMEL notice. See Attachment 1 for the names and affiliations of the meeting participants.

Attachment 1

Participants in May 27, 2015 EPA/ExxonMobil Meeting

ExxonMobil Chemical Company Representatives

Benjamin Hurst

Gary Robbins

Erin Tullos

Margaret Bass

U.S. EPA Representatives

Andrew Bouchard

Brenda Shine

Penny Lassiter

 PAGE

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