[Federal Register Volume 81, Number 70 (Tuesday, April 12, 2016)]
[Notices]
[Pages 21623-21626]
[FR Doc No: 2016-08304]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77540; File No. SR-NYSEMKT-2016-42]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of
Proposed Rule Change To Amend Rule 952NY With Respect to Opening
Trading in an Options Series

April 6, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on March 23, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 952NY (Opening Process) with
respect to opening trading in an options series. The proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The Exchange is proposing changes to Rule 952NY with respect to
opening

trading in an option series as described below.
Opening Process
    Rule 952NY describes the process pursuant to which the System \4\
opens an option series. Paragraphs (b) and (c) of Rule 952NY provide
that, after the primary market for the underlying security disseminates
the opening trade or opening quote, the System then conducts an
``Auction Process'' to open a series whereby the System determines a
single price at which a series may be opened by looking to: (i) The
midpoint of the initial uncrossed NBBO disseminated by the Options
Price Reporting Authority (``OPRA''), if any, or (ii) the midpoint of
the best quotes or orders in the System Book. If the bid-ask
differential for a series is not within an acceptable range, the System
will not conduct an Auction Process.\5\ For purposes of this rule, the
acceptable range means the bid-ask differential guidelines specified in
Rule 925NY(b)(4).\6\ Assuming the bid-ask differential is within the
acceptable range, the System matches up orders and quotes based on
price-time priority \7\ and executes the orders that are matched at the
midpoint pricing.\8\
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    \4\ The term ``System'' refers to the Exchange's electronic
order delivery, execution and reporting system through which orders
and quotes for listed options are consolidated for execution and/or
display. See Rule 900.2NY(48) (defining ``Exchange System'' or
``System'').
    \5\ The Auction bid-ask differentials are known in common
parlance as ``legal-width quotes.''
    \6\ See Rule 925NY(b)(4). The bid-ask guidelines specified in
Rule 925NY(b)(4) that are required to open a series are narrower
than the $5 wide bid-ask differential for options traded on the
System during Core Trading Hours.
    \7\ Orders will have priority over Market Maker quotes at the
same price. See Rule 952NY(b)(B).
    \8\ See Rule 952NY(b)(B). The Exchange notes that the word Order
appears capitalized in this paragraph and, because it is not a
defined term, the Exchange proposes the non-substantive change of
eliminating the capitalization.
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    Any orders in the System that are not executed in the Auction
Process become eligible for the Core Trading Session immediately after
the conclusion of the Auction Process. If the System does not open a
series with an Auction Process, the System shall open the series for
trading after receiving notification of an initial NBBO disseminated by
OPRA for the series or on a Market Maker quote, provided that the bid-
ask differential does not exceed the bid-ask differential specified
under Rule 925NY(b)(5).\9\
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    \9\ See Rule 925NY(b)(5). Rule 925NY(b)(5) provides that options
traded on the System during Core Trading Hours may be quoted with a
difference not to exceed $5 between the bid and offer regardless of
the price of the bid.
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Proposed Modifications to the Opening Process
    First, the Exchange proposes to change Rule 952NY(b) regarding how
the System determines when to start the Auction Process. Current
paragraph (b) of the Rule provides that ``[a]fter the primary market
for the underlying security disseminates the opening trade or the
opening quote, the related option series will be opened
automatically.'' However, because it is possible that either an opening
quote or opening trade alone may not accurately reflect the state of
the market, the Exchange proposes to specify that an option series will
be opened automatically, ``once the primary market for the underlying
security disseminates a quote and a trade that is at or within the
quote.'' \10\ The Exchange believes the proposed change makes clear
that the Exchange would only open a series automatically after it
receives a quote in the underlying security and a trade in that
security at or between the disseminated quote rather than simply upon
receipt of either an ``opening trade or opening quote.'' The Exchange
believes that waiting to open trading in an option series until there
has been both a disseminated quote and trade in the underlying security
would help to augment the Auction Process by ensuring that an
underlying security has been opened pursuant to a robust price
discovery process before opening the overlying options for trading. The
Exchange believes that the proposed change would provide market
participants with greater certainty as to the true state of the market
at the opening of the trading day and should lead to more accurate
prices on the Exchange.\11\
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    \10\ See proposed Rule 952NY(b). The Exchange also proposes to
clarify that ``[a]t or after 9:30 a.m. Eastern Time,'' i.e., when
the market opens, the Exchange would initiate the Opening Process
for all series associated with the underlying security. See id.
    \11\ The Exchange notes that it would not open, for example if
the first disseminated quote in the underlying security is $50.50
bid, $50.75 ask, and the first trade in the underlying had been
executed for $50.00. The Exchange would, however open if the first
trade in the underlying was $50.50.
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    Next, the Exchange proposes to modify Rule 952NY(b)(E), which
currently provides, in relevant part, that ``[i]f the System does not
open a series with an Auction Process, the System shall open the series
for trading after receiving notification of an initial NBBO
disseminated by OPRA for the series or on a Market Maker quote.'' \12\
However, the Exchange has determined that it would no longer open on a
local Market Maker quote but would require that Market Maker quotes,
like the NBBO, come from OPRA. Thus, the Exchange proposes to open
after receiving an ``initial uncrossed NBBO from ORRA'' and to delete
rule text related to opening on a Market Maker quote.\13\ The Exchange
notes that OPRA disseminates to each exchange the NBBO as well as the
top of book for each exchange, such that the Exchange's market maker
quote would be disseminated back to the Exchange as the BBO--and could
be, but is not necessarily, the NBBO. Because OPRA disseminates this
information to all exchanges at the same time, the Exchange believes
the proposal to open only after receiving an uncrossed NBBO from OPRA
would eliminate any ambiguity as to the source of the information used
to open each series and should lead to more accurate prices on the
Exchange.
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    \12\ See Rule 952NY(b)(E).
    \13\ See proposed Rule 952NY(b)(E) (providing that ``[i]f the
System does not open a series with an Auction Process, the System
shall open the series for trading after receiving notification of an
initial uncrossed NBBO disseminated by OPRA for the series, provided
that the bid-ask differential does not exceed the bid-ask
differential specified under Rule 925NY(b)(5).''
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    In connection with the proposed changes to Rule 952NY(b), the
Exchange likewise proposes to strike from Rule 952NY(c) reference to
``the midpoint of the best quote bids and quote offers in the System
Book'' as it relates to the Exchange determining the opening price for
options issues designated for trading on the System.\14\ The Exchange
believes this conforming change is necessary given that the Exchange
would no longer open solely on a Market Maker quote and therefore this
information would not form the basis of the opening price of a series.
As proposed, the opening price of a series would be the price ``at
which the greatest number of contracts will trade at or nearest to the
midpoint of the initial uncrossed NBBO disseminated by OPRA.'' \15\ The
Exchange believes this change adds transparency and internal
consistency to the rule text.
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    \14\ Current Rule 952NY(c) provides, in relevant part, that the
opening price of a series will be the price ``at which the greatest
number of contracts will trade at or nearest to the midpoint of the
initial uncrossed NBBO disseminated by OPRA, if any, or the midpoint
of the best quote bids and quote offers in the System Book.''
    \15\ See proposed Rule 952NY(c).
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    Finally, the Exchange proposes new paragraph (F) to Rule 952NY(c)
to provide the Exchange with discretion to deviate from the standard
Opening Process where it is necessary in the interests of a fair and
orderly market.\16\

This proposed rule change is based on the rules of other options
exchanges.\17\ Similar to how other markets operate, the Exchange
believes it may be appropriate, in the interest of a fair and orderly
market, to open trading even if the conditions specified in Rule
952NY(b) are not met. For example, if the primary market is unable to
open due to a systems or technical issue, but trading in the underlying
security is otherwise unaffected, the Exchange believes it would be
appropriate to open trading in any options series overlying such
securities. Further, proposed Rule 952NY(b)(F) would provide the
Exchange with discretion to manage the Opening Process in the event of
unanticipated circumstances occurring around 9:30 a.m. Eastern Time or
a halt being lifted.
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    \16\ See proposed Rule 952NY(b)(F) (providing that ``[t]he
Exchange may deviate from the standard manner of the Auction
Process, including adjusting the timing of the Auction Process in
any option class, when it believes it is necessary in the interests
of a fair and orderly market'').
    \17\ See e.g., BATS Exchange, Inc. (``BATS'') Rule 21.7(c)
(Market Opening Procedures) (``The Exchange may deviate from the
standard manner of the Opening Process, including adjusting the
timing of the Opening Process in any option class, when it believes
it is necessary in the interests of a fair and orderly market'').
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6(b) \18\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5), \19\ in
particular, in that it is designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
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    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
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    Specifically, the proposed change to Rule 952NY(b) would clarify
that the Exchange would only open a series automatically after it
receives a quote in the underlying security and a trade in that
security at or between the disseminated quote--as opposed to
automatically opening on either an opening quote or an opening trade
alone per the current rule text, which may not always accurately
reflect the state of the market. The Exchange believes this added
transparency would promote just and equitable principles of trade and
remove impediments to, and perfect the mechanism of, a free and open
market and a national market system to the benefit of market
participants. Further, the Exchange believes that waiting to open
trading in an option series until there has been both a disseminated
quote and trade in the underlying security would protect investors and
the public interest because it would help to augment the Auction
Process by ensuring that an underlying security has been opened
pursuant to a robust price discovery process before opening the
overlying options for trading. Moreover, this proposed change would
promote just and equitable principles of trade to the benefit of
investors and the public interest because it would provide market
participants with greater certainty as to the true state of the market
at the opening of the trading day and should lead to more accurate
prices on the Exchange.
    The Exchange also believes that specifying that, to open a series,
the Exchange would require an initial uncrossed NBBO disseminated by
OPRA would promote just and equitable principles of trade as the change
is designed to protect investors and the public interest. The Exchange
notes that OPRA disseminates to each exchange the NBBO as well as the
top of book for each exchange, such that the Exchange's market maker
quote would be disseminated back to the Exchange as the BBO--and could
be, but is not necessarily, the NBBO. Because OPRA disseminates this
information to all exchanges at the same time, the Exchange believes
the proposal to open only after receiving an uncrossed NBBO from OPRA
would eliminate any ambiguity as to the source of the information for
each series and should lead to more accurate prices on the Exchange.
    Similarly, the Exchange believes the conforming change to Rule
952NY(c), which strikes reference to quote bids and quote offers in the
OX Book [sic] for purposes of determining an opening price, likewise
would promote just and equitable principles of trade as it would add
transparency and internal consistency to Exchange rules, which would
make them easier for market participants to navigate.
    Finally, the Exchange believes the proposal to permit the Exchange
to open options trading when such opening is in the interests of a fair
and orderly market (even if the conditions set forth in the rule are
not met), is consistent with the protection of investors and the public
interest because the proposed changes would allow the Exchange to open
trading in options contracts in a fair and orderly manner.
Specifically, the Exchange believes that the proposed changes would
reduce potential delays in opening an option series that may prevent
the Exchange from displaying and/or routing orders on its Consolidated
Book and may also prevent the Exchange from disseminating a protected
quote that draws trading interest from other options markets. Thus, the
Exchange believes that the proposed changes would allow the Exchange to
open options series faster and more efficiently, thereby reducing any
delay in execution of orders on the Exchange that may be unnecessary
and harmful to market participants. The Exchange also notes that this
proposed rule change is based on the rules of other options
exchanges.\20\
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    \20\ See supra n. 17.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change is not
designed to address any competitive issue but rather to add specificity
and transparency to Exchange rules, thereby reducing confusion and
making the Exchange's rules easier to understand and navigate. The
Exchange believes that the proposed rule change would serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.

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

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

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

    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 the 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-NYSEMKT-2016-42 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-NYSEMKT-2016-42. 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-NYSEMKT-2016-42 and should
be submitted on or before May 3, 2016.

    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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08304 Filed 4-11-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Page 19281]
[FR Doc No: 2018-09317]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9977-57--Region 10]

Re-issuance of a General NPDES Permit (GP) for Small Suction
Dredges in Idaho

AGENCY: Environmental Protection Agency, Region 10.

ACTION: Final reissuance of a general permit.

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SUMMARY: The EPA is reissuing a National Pollutant Discharge
Elimination System (NPDES) General Permit (IDG370000) for small suction
dredge operations in Idaho (intake nozzle size of 5 inches in diameter
or a diametric equivalent or less and with equipment rated at 15
horsepower or less). EPA provided a public comment period from December
13, 2017, through January 29, 2018. EPA received many comments
suggesting that the requirements of the GP are not stringent enough to
meet the State of Idaho's WQS while other comments challenged EPA's
authority to issue a permit for this activity. Additional comments
questioned the meaning of some permit requirements. A Response to
Comments document was prepared to address the comments received and
explains any changes made to the draft to produce the final permit.

DATES: The final CWA Sec.  401 Certification from the Idaho Department
of Environmental Quality is dated April 11, 2018.
    The GP will be effective May 2, 2018.

ADDRESSES: Copies of the general permit, Fact Sheet and Response to
Comments are available upon request. Written requests may be submitted
to EPA, Region 10, 1200 Sixth Avenue, Suite 155, OWW-191, Seattle, WA
98101.

FOR FURTHER INFORMATION CONTACT: The above documents may be found on
the EPA Region 10 website at https://www.epa.gov/npdes-permits/npdes-general-permit-small-suction-dredge-placer-miners-idaho. Requests may
also be made to Cindi Godsey at<PHONE_NUMBER>. Requests may also be
electronically mailed to: [email protected].

SUPPLEMENTARY INFORMATION: Executive Order 12866: This action is not a
significant regulatory action and was therefore not submitted to the
Office of Management and Budget for review.

    Dated: April 25, 2018.
Daniel D. Opalski,
Director, Office of Water & Watersheds, Region 10.
[FR Doc. 2018-09317 Filed 5-1-18; 8:45 am]
 BILLING CODE 6560-50-P