[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62891-62893]
[FR Doc No: 2013-24649]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70654; File No. SR-Phlx-2013-76]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order
Granting Approval to Proposed Rule Change Relating to the
Discontinuation of the Differentiation of Price Improvement XL Orders
of Less Than 50 Contracts

October 10, 2013.

I. Introduction

    On August 16, 2013, NASDAQ OMX PHLX LLC (the ``Exchange'' or
``Phlx'') filed with the Securities and Exchange Commission
(``Commission'') pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to end the different treatment of orders of less
than 50 contracts entered into Phlx's Price Improvement XL auction
(``PIXL,'' ``PIXL Auction,'' or ``Auction''). The proposed rule change
was published for comment in the Federal Register on August 27,
2013.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 70242 (August 21,
2013), 78 FR 52991 (August 27, 2013) (``Notice'').
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II. Description of the Proposal

    Phlx Rule 1080(n) provides a price improvement mechanism in which a
member (an ``Initiating Member'') may electronically submit for
execution an order it represents as agent on behalf of

a public customer, broker-dealer, or any other entity (the ``PIXL
Order'') against principal interest or against any other order it
represents as agent, provided that such Initiating Member submits the
PIXL Order for electronic execution into the one-second long PIXL
Auction. Phlx rules currently provide that if a PIXL Order \4\ is a
public customer order and is for 50 contracts or more, the Initiating
Member must stop the entire PIXL Order at a price that is equal to or
better than the National Best Bid or Offer (``NBBO'') on the opposite
side of the market from the PIXL Order, provided that such price must
be at least one minimum price improvement increment (as determined by
the Exchange but not smaller than one cent) better than any limit order
on the limit order book on the same side of the market as the PIXL
Order.\5\ Phlx rules also provide that if the PIXL Order is for a non-
public customer and is for 50 contracts or more, the Initiating Member
must stop the entire PIXL Order at a price that is the better of: (i)
the PBBO price improved by at least one minimum price improvement
increment on the same side of the market as the PIXL Order; or (ii) the
PIXL Order's limit price (if the order is a limit order), provided in
either case that such price is at or better than the NBBO.\6\
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    \4\ Phlx Rule 1080(n)(1)(A)-(B) does not apply to Complex
Orders. For Complex Orders, see Phlx Rule 1080(n)(i)(C).
    \5\ Phlx Rule 1080(n)(i)(A)(1).
    \6\ Phlx Rule 1080(n)(i)(B)(1)
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    However, Phlx rules currently provide different treatment if the
PIXL Order is for fewer than 50 contracts. Specifically, if the PIXL
Order is a public customer order and is less than 50 contracts, the
Initiating Member must stop the entire PIXL Order at a price that is
the better of: (i) the PBBO price on the opposite side of the market
from the PIXL Order, improved by at least one minimum price improvement
increment; or (ii) the PIXL Order's limit price (if the order is a
limit order), provided in either case that such price is at or better
than the NBBO, and at least one price improvement increment better than
any limit order on the book on the same side of the market as the PIXL
Order.\7\
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    \7\ Phlx Rule 1080(n)(i)(A)(2)
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    Phlx rules also provide that if the PIXL Order is for a non-public
customer and is for less than 50 contracts, the Initiating Member must
stop the entire PIXL Order at a price that is the better of: (i) the
PBBO price improved by at least one minimum price improvement increment
on the same side of the market as the PIXL Order; or (ii) the PIXL
Order's limit price (if the order is a limit order), provided in either
case that such price is at or better than the NBBO and at least one
price improvement increment better than the PBBO on the opposite side
of the market from the PIXL Order.\8\
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    \8\ Phlx Rule 1080(n)(i)(B)(2).
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    The Exchange is proposing to discontinue the differentiation
between PIXL Orders for less than 50 contracts and PIXL Orders for 50
contracts or greater.\9\ As a result, all PIXL Orders, regardless of
their size, will be treated the same as PIXL Orders that are 50
contracts or greater.\10\ To initiate an Auction for public customer
orders, the Initiating Member will be required to stop the entire PIXL
Order at a price that is equal to or better than the NBBO on the
opposite side of the market from the PIXL Order, provided that such
price was at least one price improvement increment (no smaller than one
cent) better than any limit order on the limit order book on the same
side of the market as the PIXL Order. To initiate an Auction for non-
public customer orders where the order is for the account of a broker-
dealer or any other person or entity that is not a public customer, the
Initiating Member will be required to stop the entire PIXL Order at a
price that is the better of: (i) the PBBO price improved by at least
one minimum price improvement increment on the same side of the market
as the PIXL Order; or (ii) the PIXL Order's limit price (if the order
is a limit order), provided that in either case that such price is at
or better than the NBBO.
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    \9\ The Exchange is making conforming changes throughout
subsection (n) of Rule 1080 to delete any rule text that
differentiates PIXL procedures based on size.
    \10\ This proposal does not affect the pilot program established
in Phlx Rule 1080(n)(vii) regarding no required minimum size for
orders to be eligible for PIXL Auctions. The Exchange notes that it
will continue periodically providing the pilot reports to the
Commission through July 18, 2014, or as required pursuant to the
subsection (n)(vii) pilot. See Notice, supra note 3, at 78 FR 52992,
fn. 5.
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    All public customers will continue to have priority at each price
level in accordance with Phlx Rule 1080(n)(ii)(E).\11\ Consistent with
the current treatment of PIXL Orders of 50 contracts or greater in
size, Phlx will consider resting quotes and orders for allocation at
the end of the Auction with all prices that improve the stop price
being considered first. At each given price point, Phlx will execute
public customer interest in a price/time fashion such that all public
customer interest that was resting on the order book is satisfied
before any other interest that arrived after the Auction was initiated.
After public customer interest at a given price point has been
satisfied, remaining contracts will be allocated among all Exchange
quotes, orders and Auction responses in accordance with the rules set
forth in 1080(n)(ii)(E)(2) based on the manner in which the PIXL Order
was submitted.
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    \11\ See Notice, supra note 3, at 78 FR 52992.
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III. Discussion and Commission Findings

    After carefully considering the proposal, the Commission finds that
the proposed rule change is consistent with the requirements of the Act
and the rules and regulations thereunder applicable to a national
securities exchange \12\ and, in particular, the requirements of
Section 6 of the Act.\13\ Specifically, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\14\
which requires, among other things, that the rules of a national
securities exchange be designed to promote just and equitable
principles of trade, 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.
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    \12\ In approving this proposed rule change the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(5).
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    Under this proposal, a PIXL Order submitted to the PIXL Auction,
regardless of its size, will be guaranteed an execution price of at
least the NBBO and, moreover, will be given an opportunity to receive
an execution at a price better than the NBBO. Public customer orders of
fewer than 50 contracts will not, however, be guaranteed price
improvement over the NBBO.
    In the Notice, the Exchange explained that, when it first
implemented PIXL, the differentiation provision ``was a means to ensure
some level of price improvement for smaller orders.'' \15\ Phlx now
believes the differentiation provision ``is unnecessary and indeed is
counterproductive to the [Exchange's] goal of treating all PIXL Orders
equally regardless of PIXL Order size.'' \16\ Phlx argued that, while
the proposal removes the guarantee of price improvement for smaller
initiating orders, it should benefit customers ``because it will
encourage the entry of more orders into PIXL, thus it is more likely
that such orders may receive price improvement.'' \17\ Phlx asserted
that its proposal is consistent with the

Exchange Act because, among other things, Phlx ``believes strongly that
it should encourage such price discovery, and the removal of the
[d]ifferentiation [p]rovision would help to achieve this and more
generally, benefit investors by offering more opportunities for
customers and non-customers to receive price improvement.'' \18\ Thus,
Phlx believes that removing the differentiation provision ``will
attract new order flow that might not currently be afforded any price
improvement opportunity into PIXL.'' \19\
---------------------------------------------------------------------------

    \15\ Notice, supra note 3, at 78 FR 52992.
    \16\ Id.
    \17\ Id. at 52993.
    \18\ Id.
    \19\ Id. at 52992.
---------------------------------------------------------------------------

    In further support of its proposal, Phlx noted that other
exchanges, including the International Securities Exchange and the BOX
Options Exchange, do not guarantee price improvement over the NBBO
today, and that Phlx is at a competitive disadvantage in continuing the
differentiation provision.\20\ Phlx also cited to the BOX Options
Exchange as having rules that do not differentiate price improvement
opportunities based on the order size.\21\
---------------------------------------------------------------------------

    \20\ See id. at 52993.
    \21\ See id. at 52992.
---------------------------------------------------------------------------

    While Phlx's proposal will eliminate the current guarantee of price
improvement it provides to public customer orders of fewer than 50
contracts, the Commission notes that some other exchanges do not
provide such benefit in their price improvement mechanisms.\22\ Phlx
asserts that removal of the differentiation provision may remove this
competitive disadvantage and may increase the likelihood of members
entering orders into PIXL, which can benefit such orders by exposing
them for price improvement. For example, a member may only be willing
to trade with a PIXL Order at the NBBO but not better than the NBBO. In
that scenario, Phlx's proposal could remove the disincentive for such
member to submit the order to a PIXL Auction, which ultimately could
result in price improvement for the PIXL Order if a competitive
responder to the Auction offers to trade with the PIXL Order at an
improved price. The Commission therefore believes that, to the extent
it may encourage greater submission of customer orders to the PIXL
price improvement auction, Phlx's proposal is designed to promote just
and equitable principles of trade and protect investors and the public
interest.
---------------------------------------------------------------------------

    \22\ See, e.g., BOX Rule 7150 and ISE Rule 723.
---------------------------------------------------------------------------

    The Commission notes that Phlx is not proposing to change any other
provision of PIXL in this proposal. For example, orders entered into
PIXL will continue to be exposed to all Phlx members before the
initiating member can execute against the PIXL order. Further, Phlx is
not proposing any changes to the fact that public customer orders are
afforded priority at each price point in a PIXL Auction. Further, once
an order is entered into PIXL, it may not be cancelled by the
initiating member and thus is exposed for possible price improvement.
In addition, the PIXL Order will still be guaranteed an execution price
of at least the NBBO.
    The Commission also notes that the proposal does not have any
impact on the pilot program established in Phlx Rule 1080(n)(vii)
regarding no required minimum size for orders to be eligible for the
PIXL. Thus, the Commission and the Exchange will continue to have
access to data that will help assess competition within the PIXL.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\23\ that the proposed rule change (SR-Phlx-2013-76) be, and hereby
is, approved.
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    \23\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24649 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: April 11, 2007 (Volume 72, Number 69)]
[Notices]
[Page 18231]
[DOCID:fr11ap07-71]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP07-151-001]

Tennessee Gas Pipeline Company; Notice of Compliance Tariff
Filing

April 5, 2007.
    Take notice that on March 30, 2007, Tennessee Gas Pipeline Company
(Tennessee) tendered for filing as part of its FERC Gas Tariff, Fifth
Revised Volume No. 1, Substitute Fourth Revised Sheet No. 368, with an
effective date of March 1, 2007.
    Any person desiring to protest this filing must file in accordance
with Rule 211 of the Commission's Rules of Practice and Procedure (18
CFR 385.211). Protests to this filing will be considered by the
Commission in determining the appropriate action to be taken, but will
not serve to make protestants parties to the proceeding. Such protests
must be filed in accordance with the provisions of Section 154.210 of
the Commission's regulations (18 CFR 154.210). Anyone filing a protest
must serve a copy of that document on all the parties to the
proceeding.
    The Commission encourages electronic submission of protests in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons

unable to file electronically should submit an original and 14 copies
of the protest to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Philis J. Posey,
Acting Secretary.
[FR Doc. E7-6802 Filed 4-10-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 34 (Friday, February 20, 2015)]
[Notices]
[Pages 9308-9310]
[FR Doc No: 2015-02977]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

Notice of Application for Special Permits

AGENCY: Office of Hazardous Materials Safety, Pipeline and Hazardous
Materials Safety Administration, PHMSA, DOT.

ACTION: List of Applications for Special Permits.

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SUMMARY: In accordance with the procedures governing the application
for, and the processing of, special permits from the Department of
Transportation's Hazardous Material Regulations (49 CFR part 107,
subpart B), notice is hereby given that the Office of Hazardous
Materials Safety has received the application described herein. Each
mode of transportation for which a particular special permit is
requested is indicated by a number in the ``Nature of Application''
portion of the table below as follows: 1-Motor vehicle, 2-Rail freight,
3-Cargo vessel, 4-Cargo aircraft only, 5-Passenger-carrying aircraft.

DATES: Comments must be received on or before March 23, 2015.
    Address Comments To: Record Center, Pipeline and Hazardous
Materials Safety Administration, U.S. Department of Transportation,
Washington, DC 20590.
    Comments should refer to the application number and be submitted in
triplicate. If confirmation of receipt of comments is desired, include
a self-addressed stamped postcard showing the special permit number.

FOR FURTHER INFORMATION CONTACT: Copies of the applications are
available for inspection in the Records Center, East Building, PHH-30,
1200 New Jersey Avenue Southeast, Washington DC or at http://regulations.gov.
    This notice of receipt of applications for special permit is
published in accordance with Part 107 of the Federal hazardous
materials transportation law (49 U.S.C. 5117(b); 49 CFR 1.53(b)).

    Issued in Washington, DC, on February 3, 2015.
Donald Burger,
Chief, General Approvals and Permits.

----------------------------------------------------------------------------------------------------------------
 Application permits                                                    Regulation(s)       Nature of special
         No.                 Docket No.              Applicant            affected               thereof
----------------------------------------------------------------------------------------------------------------
16356-N.............  ........................  United Launch        49 CFR 172.320,     To authorize the
                                                 Alliance, LLC,       173.54(a),          transportation in
                                                 Centennial, CO.      173.56(b),          commerce of not more
                                                                      173.57, 173.58,     than 25 grams of solid
                                                                      ICAO TI Special     explosive or
                                                                      Provision A62,      pyrotechnic material,
                                                                      ICAO TI Packing     including waste
                                                                      Instruction 101.    containing explosives,
                                                                                that has energy
                                                                                density not
                                                                                significantly greater
                                                                                than that of
                                                                                pentaerythritol
                                                                                tetranitrate, classed
                                                                                as Division 1.4E when
                                                                                packed in a special
                                                                                shipping container.
                                                                                (modes 1, 2, 4)

16359-N.............  ........................  Department of        49 CFR              To authorize the
                                                 Defense, Scott       172.101(k)(6),      transportation in
                                                 AFB, IL.             172.101(k)(7),      commerce of Division
                                                                      172.101(k)(8),      1.1, 1.2, 1.3, and 1.4
                                                                      172.101(k)(9),      hazardous materials in
                                                                      172.101(k)(10),     cargo transport units
                                                                      176.84(c)(1),       that are not closed
                                                                      176.84(c)(2).       and are not stowed in
                                                                     Notes 14E, 15E,      accordance with the
                                                                      26E, and 27E,       Hazardous Materials
                                                                      IMDG Code 3.2.1.    Table or the Dangerous
                                                                     Column 16, IMDG      Goods List. (mode 3)
                                                                      Code <IP_ADDRESS>.
16361-N.............  ........................  The University of    49 CFR 173.196....  To authorize the
                                                 Cincinnati,                              transportation in
                                                 Cincinnati, OH.                          commerce of certain
                                                                                Category A infectious
                                                                                substances in
                                                                                alternative packaging.
                                                                                (mode 1)
16364-N.............  ........................  ExodusDirect LLC,    49 CFR 173.13(a),   To authorize the
                                                 Des Moines, IA.      173.13(b),          manufacture, mark,
                                                                      173.13(c)(1)(ii),   sale and use of
                                                                      173.13(c)(1)(iv),   specially designed
                                                                      173.13(c)(2)(iii).  combination packagings
                                                                                for transportation in
                                                                                commerce of certain
                                                                                materials without
                                                                                hazard labels or
                                                                                placards, with
                                                                                quantity limits not
                                                                                exceeding on liter for
                                                                                liquids or 2.85
                                                                                kilograms for solids.
                                                                                (modes 1, 2, 3, 4, 5)
16365-N.............  ........................  RDS Manufacturing,   49 CFR 177.834(h),  To authorize the
                                                 Inc., Perry, FL.     178.700(c)(1).      manufacture, mark,
                                                                                sale and use of UN 31B
                                                                                intermediate bulk
                                                                                containers (IBCs) with
                                                                                a capacity not
                                                                                exceeding 119 gallons.
                                                                                Additionally,
                                                                                discharge of flammable
                                                                                liquid hazardous
                                                                                materials from the
                                                                                IBCs without removing
                                                                                them from the vehicle
                                                                                on which they are
                                                                                transported is
                                                                                authorized. (mode 1)
16366-N.............  ........................  Department of        49 CFR 171.23(a),   To authorize the
                                                 Defense, Scott       173.302(a), ICAO    transportation in
                                                 AFB, IL.             TI Packing          commerce of nitrogen
                                                                      Instruction 200,    in non-DOT
                                                                      IMDG Code Packing   specification
                                                                      Instruction 200.    cylinders. (modes 1,
                                                                                3, 4)
16371-N.............  ........................  Volkswagen Group of  49 CFR              To authorize the
                                                 America (VWGoA),     172.102(c)(2),      transportation in
                                                 Herndon, VA.         Special Provision   commerce of lithium
                                                                      A54, ICAO TI        ion batteries each
                                                                      Special Provision   exceeding 35 kg net
                                                                      A99.                weight when
                                                                                transported aboard
                                                                                cargo aircraft. (mode
                                                                                4)
16372-N.............  ........................  Northrop Grumman     49 CFR 173.301(f),  To authorize the
                                                 Systems              173.302a(a)(1),     transportation in
                                                 Corporation,         173.304a(a)(2).     commerce of non-DOT
                                                 Redondo Beach, CA.                       specification
                                                                                containers known as
                                                                                heat pipes containing
                                                                                anhydrous ammonia and/
                                                                                or pulse tube coolers
                                                                                containing helium.
                                                                                (mode 1)
16373-N.............  ........................  Stainless Tank &     49 CFR 178.345-2,   To authorize the
                                                 Equipment Co.,       178.346-2,          manufacture, mark,
                                                 LLC, Beloit, WI.     178.347-2,          sale and use of non-
                                                                      178.348-2.          DOT specification
                                                                                cargo tank motor
                                                                                vehicles conforming in
                                                                                part with
                                                                                Specification DOT 406,
                                                                                DOT 407, and DOT 412.
                                                                                (mode 1)
16374-N.............  ........................  Bristow U.S. LLC,    49 CFR 172.101      To authorize the
                                                 New Iberia, LA.      Hazardous           transportation in
                                                                      Materials Table     commerce of certain
                                                                      Column (9A).        hazardous materials
                                                                                which exceed the
                                                                                authorized quantity
                                                                                limitations for
                                                                                passenger-carrying
                                                                                aircraft. (mode 5)
16375-N.............  ........................  Kalitta Charters,    49 CFR              To authorize the
                                                 LLC, Ypsilanti, MI.  175.700(b)(2)(ii)   carriage of
                                                                      , 175.702(b).       radioactive materials
                                                                                aboard cargo aircraft
                                                                                when the combined
                                                                                transport index
                                                                                exceeds the authorized
                                                                                limit of 200 per
                                                                                aircraft or the
                                                                                separation distance
                                                                                criteria of Sec.
                                                                                175.702(b) cannot be
                                                                                met. (mode 4)
16377-N.............  ........................  BASF Corporation,    49 CFR              To authorize the
                                                 Florham Park, NJ.    173.315(a)(1),      transportation in
                                                                      173.315(a)(2).      commerce of certain
                                                                                non-DOT specification
                                                                                spherical pressure
                                                                                vessels containing
                                                                                boron trifluoride.
                                                                                (modes 1, 2, 3)
16390-N.............  ........................  J.R. Helicopters     49 CFR 172.101      To authorize the
                                                 LLC, Yakima, WA.     Hazardous           transportation in
                                                                      Materials Table     commerce of certain
                                                                      Column (9B),        hazardous materials by
                                                                      172.200,            14 CFR Part 133
                                                                      172.204(c)(3),      Rotorcraft External
                                                                      172.200,            Load Operation
                                                                      172.204(c)(3),      transporting hazardous
                                                                      172.301(c),         materials attached to
                                                                      173.27(b)(2),       or suspended from an
                                                                      175.30(a)(1),       aircraft, in remote
                                                                      175.75.             areas of the U.S.
                                                                                only, without being
                                                                                subject to hazard
                                                                                communication
                                                                                requirements, quantity
                                                                                limitations and
                                                                                certain loading and
                                                                                stowage requirements.
                                                                                (mode 4)

16391-N.............  ........................  Halliburton          49 CFR 173.201,     To authorize the
                                                 Company, Houston,    173.301(f),         transportation in
                                                 TX.                  173.302, 173.304a.  commerce of non-DOT
                                                                                specification
                                                                                cylinders used in oil
                                                                                well sampling. (modes
                                                                                1, 2, 3, 4)
16392-N.............  ........................  Gem Air, LLC,        49 CFR 172.101      To authorize the
                                                 Salmon, ID.          Hazardous           transportation in
                                                                      Materials Table     commerce of propane
                                                                      Column (9A),        aboard passenger-
                                                                      175.75(b).          carrying aircraft
                                                                                within or into remote
                                                                                wilderness areas in
                                                                                the United States.
                                                                                (mode 5)
16393-N.............  ........................  Airopack Technology  49 CFR 171-180,     To authorize the
                                                 Group BV,            IMDG Code Parts 1   manufacture, mark,
                                                 Waalwijk, The        through 7, ICAO     sale and use of non-
                                                 Netherlands.         TI Parts 1          DOT non-plastic
                                                                      through 8.          specification/
                                                                                packagings, conforming
                                                                                in part with DOT
                                                                                Specification 2S,
                                                                                charged with
                                                                                compressed air for the
                                                                                sole purpose of
                                                                                expelling a non-
                                                                                flammable, non-toxic,
                                                                                and non-corrosive (non-
                                                                                hazardous) liquid,
                                                                                paste, powder, or gel,
                                                                                which are not subject
                                                                                to the Hazardous
                                                                                Materials Regulations
                                                                                (HMR), the
                                                                                International Civil
                                                                                Aviation
                                                                                Organization's
                                                                                Technical Instructions
                                                                                for the Safe Transport
                                                                                of Dangerous Goods by
                                                                                Air (ICAO TI), or the
                                                                                International Maritime
                                                                                Dangerous Goods (IMDG)
                                                                                Code. (modes 1, 2, 3,
                                                                                4, 5)
16394-N.............  ........................  Cellco Partnership,  49 CFR Subparts C   To authorize the
                                                 Basking Ridge, NJ.   through H of Part   transportation in
                                                                      172, 173.185(f).    commerce of damaged or
                                                                                defective lithium ion
                                                                                cells and batteries
                                                                                and equipment
                                                                                containing them that
                                                                                originally met the
                                                                                requirements under 49
                                                                                CFR 173.185(c). (modes
                                                                                1, 2)
16395-N.............  ........................  Chandler             49 CFR 173.201,     To authorize the
                                                 Instruments          173.301(f),         manufacture, mark,
                                                 Company LLC,         173.302(a),         sale and use of non-
                                                 Broken Arrow, OK.    173.304.            specification DOT
                                                                                cylinders used in oil
                                                                                well sampling. (modes
                                                                                1, 2, 3, 4)
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2015-02977 Filed 2-19-15; 8:45 am]
BILLING CODE 4909-60-M


[Federal Register Volume 82, Number 151 (Tuesday, August 8, 2017)]
[Notices]
[Pages 37104-37105]
[FR Doc No: 2017-16694]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2017-0723]

Public Workshop on Marine Technology and Standards

AGENCY: Coast Guard, DHS.

ACTION: Notice.

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SUMMARY: The American Society of Mechanical Engineers, in coordination
with the United States Coast Guard, is sponsoring a two-day public
workshop on marine technology and standards in Washington, DC. This
document provides information regarding the workshop, including
registration information. The workshop will provide a unique
opportunity for industry groups, classification societies, standards
development organizations, government organizations, and other
interested members of the public to come together for a professional
exchange of information on topics ranging from technological impacts on
the marine industry, corresponding coverage in related codes and
standards, and government regulations.

DATES: The two-day workshop will be held on Monday, October 16, 2017,
and Tuesday, October 17, 2017. The deadline for advance registration is
Monday, October 2, 2017.
    See SUPPLEMENTARY INFORMATION below for a list of proposed topics,
fees, and information on how to register for the workshop.

ADDRESSES: The workshop will be held at the Liaison Capitol Hill hotel
in Washington, DC. The hotel is located at 415 New Jersey Avenue NW.,
Washington, DC. For registration information or to obtain further
information about this workshop, visit the USCG Web site at http://www.uscg.mil/marine_event.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
document you may contact a USCG/ASME representative via email at
<EMAIL_ADDRESS>You may also contact Wayne Lundy, Office of Design
and Engineering Standards, USCG, by telephone at<PHONE_NUMBER>; or Mr.
Joseph S. Brzuszkiewicz, Project Engineering Manager, ASME, by
telephone at<PHONE_NUMBER>, or email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background and Purpose

    The American Society of Mechanical Engineers/United States Coast
Guard (ASME/USCG) Workshop on Marine Technology and Standards provides
a unique opportunity for classification societies, industry groups,
standards development organizations, government agencies, and
interested members of the public to come together for a professional
exchange of information on topics ranging from technological impacts on
the marine industry, corresponding coverage in related codes and
standards, and government regulations.
    The public workshop is sponsored by the ASME in coordination with
the USCG Office of Design and Engineering Standards. ASME is a
standards setting organization with wide-ranging volunteer committee
membership, which includes USCG-supported personnel who serve as
members of various ASME committees in support of USCG missions in
maritime safety and environmental protection. The USCG Office of Design
and Engineering Standards is responsible for developing and
promulgating national regulations and standards that govern the safe
design and construction of ships and shipboard equipment, including
hull structure, stability, electrical and mechanical systems,
lifesaving and fire safety equipment, and related equipment approval
and laboratory acceptance.
    This workshop is an opportunity for the public to provide expertise
on technical matters affecting the marine industry, to leverage new
technologies, and to improve future policymaking, standards
development, and rulemaking. Public engagement on regulations and
design standards enhances both the effectiveness and the quality of
policy development.
    Topics for the workshop are listed below and include application of
various marine technologies to promote safe and environmentally
conscious operation of ships and offshore vessels and platforms.
    The workshop will be held in Washington, DC, over a two-day period
on Monday, October 16, 2017, and Tuesday, October 17, 2017. See
ADDRESSES above for event location information.

Topics of Meeting

    This workshop comprises a series of panel sessions over a two-day
period covering a variety of topics. Proposed topics include:

Transport and Use of Natural Gas

    Considers shipboard systems involved in the handling and transport
of CNG/LNG as cargo. This panel will also consider the handling and use
of natural gas as a shipboard fuel, addressing, among other things,
systems, containment, fuel quality, safety considerations. Will also
consider recent international and domestic requirements, including
environmental considerations.

Use of Alternative Fuels for Ship Systems

    Considers containment and handling systems, bunkering systems and
safety considerations for fuels other than natural gas. Also considers
the latest requirements and standards used by ship owners and
designers, including the IMO Gas-Fueled Ships Code (IGF Code). Some
examples include biofuels, hydrogen, and methanol. Also considers costs
associated with infrastructure, training, operations and maintenance.

Infrastructure for Alternative Energy Sources

    Considers international and domestic requirements for
infrastructure such as offshore structures and servicing vessels for
alternative energy sources such as wind farms and tidal generators.

Offshore Marine Technology

    Considers technological advancements in a variety of subjects
affecting the offshore industry and the marine transportation system.
This includes systems for ensuring the safe and effective offshore
exploration and extraction of energy resources, including dynamic
positioning, hazardous areas, and safety systems. Will consider lessons
learned from operations as well as application of related standards.

Shipboard Technologies for Energy Efficiency

    Considers technologies and best practices for improving energy
efficiency in the design and operation of ship equipment and systems.
Potential topics include Energy Efficiency Design Index, Energy
Efficiency Operational Indicator, and Ship Energy Efficiency Management
Plan.

Polar Ship Design, Construction, and Operation

    Consider requirements within the recently adopted IMO Polar Code
and the IACS Polar Class rules. This includes vessel design
considerations for low temperature environments. Also considers
experiences of organizations operating ships in Polar Waters.

Marine Environmental Protection (MARPOL 73/78)

    Considers issues, technologies, equipment and standards under the
Annexes to the International Convention for the Prevention of Pollution
from Ships (MARPOL 73/78). Topics include pollution prevention
requirements and standards for oil, sewage, garbage, ballast water, and
air emissions.

Pressure Vessels for Human Occupancy

    Considers operation, training, safety, design and maintenance
issues as well as the requirements within the ASME PVHO-1 & PVHO-2 Code
and the IMO guidelines for diving systems (IMO Code of Safety for
Diving Systems) and passenger submersibles (MSC/Circ.981--Guidelines
for the design, construction and operation of passenger submersible
craft).

Autonomous Ship Technology, Automation & Cybersecurity

    Considers issues/advancements regarding automation and autonomous
ship technology, as well as the intercept with cybersecurity.

Regulatory/Classification Society Developments

    Considers latest international and domestic developments and
requirements regarding safety and environmental protection impacting
the maritime community.

Web Sites

    For additional information on this workshop, visit the USCG Web
site at http://www.uscg.mil/marine_event.

Registration

    Registration is now open; to register for this workshop, visit the
ASME Web site: https://urldefense.proofpoint.com/v2/url?u=https-3A__www.asme.org_events_uscoastguard&d=DwIFAg&c=0NKfg44GVknAU-XkWXjNxQ&r=LhLRaZ6Kl2vKuhI6SnRTNEJ9kbmze_HQ29FMACS_FZQ&m=dDJr4AEQR77fGQhJMGn4koZHI6Yn9W90-7cI-hvINPs&s=TqXhhS-pwGqMf3vT1Sd7vxuFsFW2KSGrMzCwIJPiCwI&e=.
    The USCG Web site for the event is: http://www.uscg.mil/marine_event. While the workshop is open to the public, meeting space
is limited by room capacity. Since seating is limited, we ask anyone
interested in attending the workshop to register in advance. The
deadline for advance registration is Monday, October 2, 2017.
Registration on the first day of the workshop will be permitted on a
space-available basis. The registration fee for this event is $325 USD
if submitted on or before October 2, 2017 and $375 USD if submitted
after October 2, 2017. The registration fee includes admission for one
person to each panel session for the two day event, several coffee
breaks, and a reception on the first day of the event.

Proceedings

    Material presented at the workshop will be made available to the
public on the USCG Web site listed above after the conclusion of this
event. For additional information on material presented at this event,
you may contact one of the individuals listed above in FOR FURTHER
INFORMATION CONTACT. Summaries of comments made and materials presented
will be available on the docket at the conclusion of this event. To
view the docket, see instructions above in ADDRESSES.

Information on Services for Individuals With Disabilities

    Persons with disabilities who require special assistance should
advise us of their anticipated special needs as early as possible by
one of the individuals listed above in FOR FURTHER INFORMATION CONTACT.

Adjournment

    Please note that the workshop may adjourn early if all business is
finished.

Authority

    This notice is issued under authority of 5 U.S.C. 552(a).

J.G. Lantz,
Director of Commercial Regulations and Standards, U.S. Coast Guard.
[FR Doc. 2017-16694 Filed 8-7-17; 8:45 am]
 BILLING CODE P


[Federal Register Volume 76, Number 239 (Tuesday, December 13, 2011)]
[Notices]
[Pages 77589-77590]
[FR Doc No: 2011-31697]

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DEPARTMENT OF TRANSPORTATION

 Pipeline and Hazardous Materials Safety Administration

Office of Hazardous Materials Safety; Notice of Application for
Special Permits

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.

ACTION: List of Applications for Special Permits.

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

SUMMARY: In accordance with the procedures governing the application
for, and the processing of, special permits from the Department of
Transportation's Hazardous Material Regulations (49 CFR part 107,
subpart B), notice is hereby given that the Office of Hazardous
Materials Safety has received the application described herein. Each
mode of transportation for which a particular special permit is
requested is indicated by a number in the ``Nature of Application''
portion of the table below as follows: 1--Motor vehicle, 2--Rail
freight, 3--Cargo vessel, 4--Cargo aircraft only, 5--Passenger-carrying
aircraft.

DATES: Comments must be received on or before January 12, 2012.

ADDRESSES: Address comments to: Record Center, Pipeline and Hazardous
Materials Safety Administration, U.S. Department of Transportation,
Washington, DC 20590.
    Comments should refer to the application number and be submitted in
triplicate. If confirmation of receipt of comments is desired, include
a self-addressed stamped postcard showing the special permit number.

FOR FURTHER INFORMATION CONTACT: Copies of the applications are
available for inspection in the Records Center, East Building, PHH-30,
1200 New Jersey Avenue Southeast, Washington DC or at http://www.regulations.gov.
    This notice of receipt of applications for special permit is
published in accordance with Part 107 of the Federal hazardous
materials transportation law (49 U.S.C. 5117(b); 49 CFR 1.53(b)).

    Issued in Washington, DC, on December 2, 2011.
Donald Burger,
Chief, General Approvals and Permits.

----------------------------------------------------------------------------------------------------------------
                                                                      Regulation(s)         Nature of special
   Application No.          Docket No.             Applicant             affected            permits thereof
----------------------------------------------------------------------------------------------------------------
                                               New Special Permits
----------------------------------------------------------------------------------------------------------------
15497-N.............  ......................  U.S. Department of   49 CFR               To authorize the
                                               Energy Washington,   173.417(a)(l)(i).    transportation in
                                               DC.                                       commerce of radioactive
                                                                                materials without being
                                                                                subject to the
                                                                                requirements in 49 CFR
                                                                                173.417(a)(1)(i)(mode
                                                                                1).
15503-N.............  ......................  Garden City Co-op,   49 CFR               To authorize the
                                               Inc. Garden City,    173.315(m)(l)(iv).   transportation in
                                               KS.                                       commerce of certain
                                                                                cargo tanks used as an
                                                                                implementation of
                                                                                husbandry with a
                                                                                capacity of 5,000
                                                                                gallons containing
                                                                                anhydrous ammonia.
                                                                                (mode 1).
15504-N.............  ......................  FIBA Technologies,   49 CFR 173.302a....  To authorize the
                                               Inc. Millbury, MA.                        manufacture, marking,
                                                                                sale and use of non-DOT
                                                                                specification cylinders
                                                                                for the transportation
                                                                                in commerce of certain
                                                                                compressed gases.
                                                                                (modes 1, 2, 3, 4).
15507-N.............  ......................  Yiwu Jinyu           49 CFR 173.304(d)..  To authorize the
                                               Machinery Factory                         manufacture, marking,
                                               Jiangwan Town,                            sale and Yiwu City use
                                               Yiwu City.                                of a non-refillable,
                                                                                non-DOT specification
                                                                                inside metal container
                                                                                similar to a DOT 2Q for
                                                                                the transportation in
                                                                                commerce of certain
                                                                                Division 2.1 and 2.2
                                                                                gases. (modes 1, 2, 3,
                                                                                4).

15509-N.............  ......................  The Virginia         49 CFR 173.301 and   To authorize the
                                               Commercial Space     173.302a.            transportation in
                                               Flight Authority                          commerce of Helium in a
                                               Norfolk, VA.                              non-DOT specification
                                                                                packaging for a short
                                                                                distance by motor
                                                                                vehicle. (mode 1).
15514-N.............  ......................  Shesam DBA Wilson    49 CFR 173.301(f)..  To authorize the
                                               Supply Cumberland,                        transportation in
                                               MD.                                       commerce of certain
                                                                                cylinders without
                                                                                pressure relief
                                                                                devices. (modes 1, 2,
                                                                                3).
15515-N.............  ......................  National             49 CFR 173.302a,     To authorize the
                                               Aeronautics and      173.301(f)(l),       transportation in
                                               Space                173.301(h)(3),       commerce of a non-DOT
                                               Administration       173.302(f)(2) and    specification cylinder
                                               (NASA) Houston, TX.  173.302(f)(4).       further packed in an
                                                                                ATA-300 Category 1
                                                                                outer packaging. (modes
                                                                                1, 2, 3, 4).
15516-N.............  ......................  Moog Inc. East       49 CFR Part 172,     To authorize the
                                               Auroroa, NY.         Subpart C.           transportation in
                                                                                commerce of certain
                                                                                waste hazardous
                                                                                materials between Moog
                                                                                plants without shipping
                                                                                paper documentation for
                                                                                less than one half mile
                                                                                by private motor
                                                                                vehicle. (mode 1).
15517-N.............  ......................  Mountain West        49 CFR 172.101       To authorize the
                                               Helicopters, LLC     Column (9B),         transportation in
                                               Alpine, UT.          172.204(c)(3),       commerce of certain
                                                                    173.27(b)(2),        hazardous materials by
                                                                    175.30(a)(1),        external load in remote
                                                                    172.200, and         areas of the U.S.
                                                                    172.300 and          without being subject
                                                                    172.400.             to hazard communication
                                                                                requirements and
                                                                                quantity limitations
                                                                                where no other means of
                                                                                transportation is
                                                                                available. (mode 4).
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2011-31697 Filed 12-12-11; 8:45 am]
BILLING CODE 4909-60-M


[Federal Register: December 16, 2009 (Volume 74, Number 240)]
[Notices]
[Page 66715-66718]
[DOCID:fr16de09-109]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61133; File No. SR-Phlx-2009-100]

Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
an Options Regulatory Fee

December 9, 2009.
    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 December 7, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``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.
---------------------------------------------------------------------------

    \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 eliminate its Registered Representative/
Member Exchange/Off-Floor Trader Registration Fee and establish an
Options Regulatory Fee.
    While changes to the Exchange's Fee Schedule pursuant to this
proposal are effective upon filing, the Exchange has designated this
proposal to be operative for trades settling on or after January 1,
2010, at which point the Registered Representative/Member Exchange/Off-
Floor Trader Registration Fee would be eliminated.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
on the Commission's Web site at http://www.sec.gov, 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
    The Exchange proposes to eliminate its Registered Representative/
Member Exchange/Off-Floor Registration Trader Fee of $55.00, the
initial registration fee of $55.00, the transfer fee of $55.00 and the
termination fee of $30.00 (``Registration Fees''). The Exchange
proposes to establish an Options Regulatory Fee (``ORF'') of $.0035 per
contract to each member for all options transactions executed or
cleared by the member that are cleared by The Options Clearing
Corporation (``OCC'') in the customer range, excluding Options
Intermarket Linkage Plan (``Linkage'') P/A Orders.\3\
---------------------------------------------------------------------------

    \3\ The Exchange understands that certain Exchanges continue to
utilize Linkage to send P/A Orders. Linkage may be discontinued by
the operative date.
---------------------------------------------------------------------------

    Registration Fees as well as other regulatory fees collected by the
Exchange are intended to cover a portion of the cost of the Exchange's
regulatory programs.\4\ Today options exchanges, regardless of size,
charge similar registered representative fees or an ORF similar to the
proposal herein. Currently, Exchange rules require that

every qualified Registered Representative \5\ of a member or
participant organization must be registered with and approved by the
Exchange.\6\ The Member Exchange category refers to Exchange permit
holders.\7\
---------------------------------------------------------------------------

    \4\ In addition to Registration Fees, the Exchange derives
revenue associated with its regulatory programs from its
Examinations Fee. This fee is applicable to member/participant
organizations for which the Exchange is the Designated Examining
Authority (``DEA''). The Fee is a tiered fee and certain
organizations are exempted from the fee. See Exchange's Fee
Schedule.
    \5\ Registered Representative categories include registered
options principals, general securities representatives, general
securities sales supervisors and United Kingdom limited general
securities registered representatives but do not include ``off-
floor'' traders. See Exchange Rule 604(e). See also Exchange Rule
604(a) and (d).
    \6\ See Exchange Rule 604. Every person who is compensated
directly or indirectly by a member or participant organization for
which the Exchange is the DEA, or any other associated person of
such member or participant organization, and who executes, makes
trading decisions with respect to, or otherwise engages in
proprietary or agency trading of securities, including, but not
limited to, equities, preferred securities, convertible debt
securities or options off the floor of the Exchange (``off-floor
traders''), must successfully complete the Series 7 General
Securities Registered Representative Examination.
    \7\ See Exchange Rule 600.
---------------------------------------------------------------------------

    The Exchange believes that Registration Fees are no longer the best
manner to assess regulatory fees because more than 60% of the
Exchange's Registration Fees are paid by five member organizations.
Further to the point, today there are more Internet and discount
brokerage firms with few registered persons that pay little in
Registration Fees and fewer traditional brokerage firms with many
registered persons. The regulatory effort the Exchange expends to
review the transactions of each type of firm is not commensurate with
the number of registered persons that each firm employs. In addition,
due to the manner in which Registration Fees are charged, it is
possible for a member firm to restructure its business to avoid paying
these fees altogether. A firm can avoid Registration Fees by
terminating its Exchange membership and sending its business to the
Exchange through another member firm, even an affiliated firm that has
significantly fewer registered persons. If member firms terminated
their memberships to avoid Registration Fees, the Exchange would suffer
the loss of a major source of funding for its regulatory programs.
    The Exchange proposes to eliminate Registration Fees and replace
them with a transaction-based ORF. The ORF would be $.0035 per contract
and would be assessed by the Exchange to each member for all options
transactions executed or cleared by the member that are cleared by The
Options Clearing Corporation (``OCC'') in the customer range (i.e.,
that clear in the customer account of the member's clearing firm at
OCC), excluding P/A Orders as defined in the Options Intermarket
Linkage Plan (``Linkage'').\8\ The ORF would be imposed upon all such
transactions executed by a member, even if such transactions do not
take place on the Exchange.\9\ The ORF also includes options
transactions that are not executed by an Exchange member but are
ultimately cleared by an Exchange member. Thus the Exchange would
charge a member $.0035 per contract for all options transactions
executed or cleared by the member that are cleared by OCC in the
customer range, excluding Linkage P/A Orders, regardless of the
marketplace of execution. In the case where one member both executes a
transaction and clears the transaction, the ORF would be assessed to
the member only once on the execution. In the case where one member
executes a transaction and a different member clears the transaction,
the ORF would be assessed only to the member who executes the
transaction and would not be assessed to the member who clears the
transaction. In the case where a non-member executes a transaction and
a member clears the transaction, the ORF would be assessed to the
member who clears the transaction.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release Nos. 60405 (July 30,
2009), 74 FR 39362 (August 6, 2009) (National Market System Plan
Relating to Options Order Protection and Locked/Crossed Markets).
    \9\ The ORF would apply to all ``C'' account origin code orders
executed by a member on the Exchange. Exchange rules require each
member to record the appropriate account origin code on all orders
at the time of entry in order to allow the Exchange to properly
prioritize and route orders and assess transaction fees pursuant to
the rules of the Exchange and report resulting transactions to the
OCC. See Exchange Rule 1063, Responsibilities of Floor Brokers, and
Options Floor Procedure Advice F-4, Orders Executed as Spreads,
Straddles, Combinations or Synthetics and Other Order Ticket Marking
Requirements. The Exchange represents that it has surveillances in
place to verify that members mark orders with the correct account
origin code.
---------------------------------------------------------------------------

    The ORF would not be charged for member options transactions
because members incur the costs of owning memberships and through their
memberships are charged transaction fees, dues and other fees that are
not applicable to non-members.\10\ The dues and fees paid by members go
into the general funds of the Exchange, a portion of which is used to
help pay the costs of regulation. Thus, the Exchange believes members
are already paying their fair share of the costs of regulation.\11\
Moreover, because the ORF would replace Registration Fees, which relate
to a member's customer business, the Exchange believes it is
appropriate to charge the ORF only to transactions that clear as
customer at the OCC. The Exchange believes that its broad regulatory
responsibilities with respect to its members' activities, supports
applying the ORF to transactions cleared but not executed by a member.
The Exchange's regulatory responsibilities are the same regardless of
whether a member executes a transaction or clears a transaction
executed on its behalf. The Exchange regularly reviews all such
activity, including performing surveillance for position limit
violations, manipulation, frontrunning contrary exercise advice
violations and insider trading.\12\
---------------------------------------------------------------------------

    \10\ For example, non-broker-dealer customers generally are not
charged transaction fees to trade equity options on the Exchange.
    \11\ If the Exchange changes its method of funding regulation or
if circumstances otherwise change in the future, the Exchange may
decide to impose the ORF or a separate regulatory fee on members if
the Exchange deems it advisable. In the event that the Exchange does
decide to impose such a fee, that fee would be filed with the
Commission pursuant to Section 19 of the Act.
    \12\ The Exchange also participates in The Options Regulatory
Surveillance Authority (``ORSA'')\12\ national market system plan
and in doing so shares information and coordinates with other
exchanges designed to detect the unlawful use of undisclosed
material information in the trading of securities options. ORSA is a
national market system comprised of several self-regulatory
organizations whose functions and objectives include the joint
development, administration, operation and maintenance of systems
and facilities utilized in the regulation, surveillance,
investigation and detection of the unlawful use of undisclosed
material information in the trading of securities options. The
Exchange compensates ORSA for the Exchange's portion of the cost to
perform insider trading surveillance on behalf of the Exchange. The
ORF will cover the costs associated with the Exchange's arrangement
with ORSA.
---------------------------------------------------------------------------

    The ORF is collected indirectly from members through their clearing
firms by OCC on behalf of the Exchange. There is a minimum one-cent
charge per trade. The Exchange expects that member firms will pass-
through the ORF to their customers in the same manner that firms pass-
through to their customers the fees charged by SROs to help the SROs
meet their obligation under Section 31 of the Exchange Act.
    The ORF is designed to recover a portion of the costs to the
Exchange of the supervision and regulation of its members, including
performing routine surveillances, investigations, examinations,
financial monitoring, and policy, rulemaking, interpretive, and
enforcement activities. The Exchange believes that revenue generated
from the ORF, when combined with all of the Exchange's other regulatory
fees, will cover a material portion, but not all, of the Exchange's
regulatory costs. The total amount of regulatory fees collected by the
Exchange is less than the regulatory costs incurred by the Exchange on
an annual basis. Registration Fees make up the largest part of the
Exchange's total regulatory

fee revenue. The Exchange collects other regulatory revenues from DEA
Fees.\13\ The Exchange notes that its regulatory responsibilities with
respect to member compliance with options sales practice rules have
been allocated to FINRA under a 17d-2 agreement. The ORF is not
designed to cover the cost of options sales practice regulation.
---------------------------------------------------------------------------

    \13\ The Exchange assesses the Examinations Fee to each firm for
which the SEC has designated the Exchange to be the DEA pursuant to
SEC Rule 17d-1. The Examinations Fee is intended to reimburse the
Exchange for its costs associated with examining member firms and is
generally the same throughout the SRO community. The Examination Fee
is based on the number of off-floor traders in the same member
organization.
---------------------------------------------------------------------------

    The ORF is designed to generate revenue that, when combined with
all of the Exchange's other regulatory fees, will approximate the
Exchange's regulatory costs. The Exchange would monitor the amount of
revenue collected from the ORF to ensure that it, in combination with
its other regulatory fees and fines, does not exceed regulatory costs.
The Exchange expects to monitor regulatory costs and revenues at a
minimum on an annual basis. If the Exchange determines regulatory
revenues would exceed regulatory costs, the Exchange would adjust the
ORF by submitting a fee change filing to the Commission. The Exchange
notifies members of adjustments to the ORF via an Options Trader Alert
(``OTA'').
    The Exchange believes the proposed ORF is equitably allocated
because it would be charged to all members on all their customer
options business (as defined above). The Exchange believes the proposed
ORF is reasonable because it will raise revenue related to the amount
of customer options business conducted by members, and thus the amount
of Exchange regulatory services those members will require, instead of
how many registered persons a particular member firm employs.\14\
---------------------------------------------------------------------------

    \14\ The Exchange expects that implementation of the proposed
ORF will result generally in many traditional brokerage firms paying
less regulatory fees while Internet and discount brokerage firms
will pay more.
---------------------------------------------------------------------------

    The Exchange believes it is reasonable and appropriate for the
Exchange to charge the ORF for options transactions regardless of the
exchange on which the transactions occur. The Exchange has a statutory
obligation to enforce compliance by its members and their associated
persons with the Act and the rules of the Exchange and to surveil for
other manipulative conduct by market participants (including non-
members) trading on the Exchange. The Exchange cannot effectively
surveil for such conduct without looking at and evaluating activity
across all options markets. Many of the Exchange's market surveillance
programs require the Exchange to look at and evaluate activity across
all options markets, such as surveillance for position limit
violations, manipulation, frontrunning, contrary exercise advice
violations and locked/crossed markets in connection with the
Linkage.\15\ The Exchange, along with other options exchanges are
required to populate a consolidated options audit trail (``COATS'')
system in order to surveil member activities across markets.\16\
---------------------------------------------------------------------------

    \15\ The Exchange and other options SROs are parties to a 17d-2
agreement allocating among the SROs regulatory responsibilities
relating to compliance by their common members with rules for
expiring exercise declarations, position limits, OCC trade
adjustments, and Large Option Position Report reviews. See
Securities Exchange Act Release No. 56941 (December 11, 2007), 72 FR
71723 (December 18, 2007).
    \16\ COATS effectively enhances intermarket options surveillance
by enabling the options exchanges to reconstruct markets promptly,
effectively surveil them and enforce order handling, firm quote,
trade reporting and other rules.
---------------------------------------------------------------------------

    In addition to its own surveillance programs, the Exchange works
with other SROs and exchanges on intermarket surveillance related
issues. Through its participation in the Intermarket Surveillance Group
(``ISG'') the Exchange shares information and coordinates inquiries and
investigations with other exchanges designed to address potential
intermarket manipulation and trading abuses.\17\
---------------------------------------------------------------------------

    \17\ ISG is an industry organization formed in 1983 to
coordinate intermarket surveillance among the SROs by cooperatively
sharing regulatory information pursuant to a written agreement
between the parties. The goal of the ISG's information sharing is to
coordinate regulatory efforts to address potential intermarket
trading abuses and manipulations.
---------------------------------------------------------------------------

    The Exchange believes that charging the ORF across markets will
avoid having members direct their trades to other markets in order to
avoid the fee and to thereby avoid paying for their fair share of
regulation. If the ORF did not apply to activity across markets, then
members would send their orders to the least cost, least regulated
exchange. Other exchanges would, of course, be free to impose a similar
fee on their member's activity, including the activity of Exchange
members.
    Finally, there is established precedent for an SRO charging a fee
across markets, namely, FINRA's Trading Activity Fee \18\ and the
Chicago Board of Options Exchange, Inc.'s (``CBOE'') ORF.\19\ While the
Exchange does not have all of the same regulatory responsibilities as
FINRA, the Exchange believes that like the CBOE, its broad regulatory
responsibilities with respect to its members' activities, irrespective
of where their transactions take place, supports a regulatory fee
applicable to transactions on other markets. Unlike the TAF, the ORF
would apply only to a member's customer options transactions.
    Currently, the Exchange is in negotiations with FINRA to render
regulatory services which are currently performed by the Exchange. The
Exchange anticipates continuing to provide on-floor surveillance
options review and data storage.\20\
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    \18\ See Securities Exchange Act Release No. 47946 (May 30,
2003), 68 FR 34021 (June 6, 2003) (SR-NASD-2002-148).
    \19\ See Securities Exchange Act Release Nos. 58817 (October 20,
2008), 73 FR 63744 (October 27, 2009) (SR-CBOE-2008-105).
    \20\ The costs that are currently identified by the Exchange as
related to the regulatory program should approximate the costs that
would in the future be paid to FINRA should a Regulatory Services
Agreement be executed. The Exchange anticipates that it would pay a
flat rate to FINRA for its services.
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    The Exchange has designated this proposal to be operative for
trades settling on or after January 1, 2010.
2. Statutory Basis
    The Exchange believes that its proposal to amend its schedule of
fees is consistent with Section 6(b) of the Act,\21\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\22\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the ORF is objectively allocated to
Exchange members because it would be charged to all members on all of
their transactions that clear as customer at the OCC. Moreover, the
Exchange believes the ORF ensures fairness by assessing higher fees to
those member firms that require more Exchange regulatory services based
on the amount of customer options business they conduct.
    The Exchange believes the initial level of the fee is reasonable
because it relates to the recovery of the costs of supervising and
regulating members and market activity. Accounting for recent trends in
the industry, the fee is expected to approximate the Exchange's revenue
from the Registration Fees. The Commission has addressed the funding of
an SRO's regulatory operations in the Concept Release Concerning Self-
Regulation \23\ and the release on the Fair Administration and
Governance of Self-

Regulatory Organizations.\24\ In the Concept Release, the Commission
states that: ``Given the inherent tension between an SRO's role as a
business and as a regulator, there undoubtedly is a temptation for an
SRO to fund the business side of its operations at the expense of
regulation.'' \25\ In order to address this potential conflict, the
Commission proposed in the Governance Release rules that would require
an SRO to direct monies collected from regulatory fees, fines, or
penalties exclusively to fund the regulatory operations and other
programs of the SRO related to its regulatory responsibilities.\26\ The
Exchange has designed the ORF to generate revenues that, when combined
with all of the Exchange's other regulatory fees, will approximate the
Exchange's regulatory costs, which is consistent with the Commission's
view that regulatory fees be used for regulatory purposes and not to
support the Exchange's business side.
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    \23\ See Securities Exchange Act Release No. 50700 (November 18,
2004), 69 FR 71256 (December 8, 2004) (``Concept Release'').
    \24\ See Securities Exchange Act Release No. 50699 (November 18,
2004), 69 FR 71126 (December 8, 2004) (``Governance Release'').
    \25\ Concept Release at 71268.
    \26\ Governance Release at 71142.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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)(ii) of the Act \27\ and paragraph (f)(2) of Rule 19b-4 \28\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission may summarily abrogate 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.
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    \27\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \28\ 17 CFR 240.19b-4(f)(2).
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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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2009-100 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2009-100. This file
number should be included on the subject line if e-mail 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
am and 3 pm. Copies of such 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 No. SR-Phlx-2009-100 and should be
submitted on or before January 6, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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    \29\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29830 Filed 12-15-09; 8:45 am]

BILLING CODE 8011-01-P