[Federal Register Volume 80, Number 46 (Tuesday, March 10, 2015)]
[Notices]
[Pages 12640-12641]
[FR Doc No: 2015-05504]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2011-N-0781]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Record Retention Requirements for the Soy Protein and
Risk of Coronary Heart Disease Health Claim

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA or we) is announcing an
opportunity for public comment on the proposed collection of certain
information by the Agency. Under the Paperwork Reduction Act of 1995
(the PRA), Federal Agencies are required to publish notice in the
Federal Register concerning each proposed collection of information,
including each proposed extension of an existing collection of
information, and to allow 60 days for public comment in response to the
notice. This notice invites comments on the record retention
requirements for the soy protein and coronary heart disease health
claim.

DATES: Submit either electronic or written comments on the collection
of information by May 11, 2015.

ADDRESSES: Submit electronic comments on the collection of information
to http://www.regulations.gov. Submit written comments on the
collection of information to the Division of Dockets Management (HFA-
305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061,
Rockville, MD 20852. All comments should be identified with the docket
number found in brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, 8455 Colesville Rd., COLE-14526, Silver
Spring, MD 20993-0002<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
Agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes Agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A))
requires Federal Agencies to provide a 60-day notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information,
before submitting the collection to OMB for approval. To comply with
this requirement, we are publishing notice of the proposed collection
of information set forth in this document.
    With respect to the following collection of information, we invite
comments on these topics: (1) Whether the proposed collection of
information is necessary for the proper performance of our functions,
including whether the information will have practical utility; (2) the
accuracy of our estimate of the burden of the proposed collection of
information, including the validity of the methodology and assumptions
used; (3) ways to enhance the quality, utility, and clarity of the
information to be collected; and (4) ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques, when appropriate, and other forms of
information technology.

Record Retention Requirements for the Soy Protein and Risk of Coronary
Heart Disease Health Claim--21 CFR 101.82(c)(2)(ii)(B) (OMB Control
Number 0910-0428)--Extension

    Section 403(r)(3)(A) of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 343(r)(3)(A)) provides for the use of food label statements
characterizing a relationship of any nutrient of the type required to
be in the label or labeling of the food to a disease or a health
related condition only where that statement meets the requirements of
the regulations promulgated by the Secretary of Health and Human
Services to authorize the use of such a health claim. Section 101.82
(21 CFR 101.82) of our regulations authorizes a health claim for food
labels about soy protein and the risk of coronary heart disease (CHD).
To bear the soy protein and CHD health claim, foods must contain at
least 6.25 grams of soy protein per reference amount customarily
consumed. Analytical methods for measuring total protein can be used to
quantify the amount of soy protein in foods that contain soy as the
sole source of protein. However, at the present time there is no
validated analytical methodology available to quantify the amount of
soy protein in foods that contain other sources of protein. For these
latter foods, we must rely on information known only to the
manufacturer to assess compliance with the requirement that the food
contain the qualifying amount of soy protein. Thus, we require
manufacturers to have and keep records to substantiate the amount of
soy protein in a food that bears the health claim and contains sources
of protein other than soy, and to make such records available to
appropriate regulatory officials upon written request. The information
collected includes nutrient databases or analyses, recipes or
formulations, purchase orders for ingredients, or any other information
that reasonably substantiates the ratio of soy protein to total
protein.
    We estimate the burden of this collection of information as
follows:

                               Table 1--Estimated Annual Recordkeeping Burden \1\
----------------------------------------------------------------------------------------------------------------
                                                           Number of
                                            Number of    records  per      Total        Average
             21 CFR Section               recordkeepers                   annual       burden per   Total  hours
                                                         recordkeeper     records    recordkeeping
----------------------------------------------------------------------------------------------------------------
101.82(c)(2)(ii)(B).....................            25             1            25              1            25
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

    Based upon our experience with the use of health claims, we
estimate that only about 25 firms would be likely to market products
bearing a soy protein/coronary heart disease health claim and that
only, perhaps, one of each firm's products might contain non-soy
sources of protein along with soy protein. The records required to be
retained by Sec.  101.82(c)(2)(ii)(B) are the records, e.g., the
formulation or recipe, that a manufacturer has and maintains as a
normal course of its doing business. Thus, the burden to the food
manufacturer is limited to assembling and retaining the records, which
we estimate will take 1 hour annually.

    Dated: March 4, 2015.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2015-05504 Filed 3-9-15; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 86, Number 82 (Friday, April 30, 2021)]
[Notices]
[Pages 22960-22961]
[FR Doc No: 2021-09005]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-10019-08-OMS]

Cross-Media Electronic Reporting: Authorized Program Revision
Approval, State of Indiana

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice announces the Environmental Protection Agency's
(EPA) approval of the State of Indiana's request to revise/modify
certain of its EPA-authorized programs to allow electronic reporting.

DATES: EPA approves the authorized program revisions/modifications as
of April 30, 2021.

FOR FURTHER INFORMATION CONTACT: Shirley M. Miller, CROMERR Program
Manager, U.S. Environmental Protection Agency, Office of Information
Management, Mail Stop 2824T, 1200 Pennsylvania Avenue NW, Washington,
DC 20460,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On October 13, 2005, the final Cross-Media
Electronic Reporting Rule (CROMERR) was published in the Federal
Register (70 FR 59848) and codified as part 3 of title 40 of the CFR.
CROMERR establishes electronic reporting as an acceptable regulatory
alternative to paper reporting and establishes requirements to assure
that electronic documents are as legally dependable as their paper
counterparts. Subpart D of CROMERR requires that state, tribal or local
government agencies that receive, or wish to begin receiving,
electronic

reports under their EPA-authorized programs must apply to EPA for a
revision or modification of those programs and obtain EPA approval.
Subpart D provides standards for such approvals based on consideration
of the electronic document receiving systems that the state, tribe, or
local government will use to implement the electronic reporting.
Additionally, Sec.  3.1000(b) through (e) of 40 CFR part 3, subpart D
provides special procedures for program revisions and modifications to
allow electronic reporting, to be used at the option of the state,
tribe or local government in place of procedures available under
existing program-specific authorization regulations. An application
submitted under the subpart D procedures must show that the state,
tribe or local government has sufficient legal authority to implement
the electronic reporting components of the programs covered by the
application and will use electronic document receiving systems that
meet the applicable subpart D requirements.
    On July 21, 2020, the Indiana Department of Environmental
Management (IDEM) submitted an application titled IDEM Modernized
Enterprise System for revisions/modifications to its EPA-approved
programs under title 40 CFR to allow new electronic reporting. EPA
reviewed IDEM's request to revise/modify its EPA-authorized programs
and, based on this review, EPA determined that the applications met the
standards for approval of authorized program revisions/modifications
set out in 40 CFR part 3, subpart D. In accordance with 40 CFR
3.1000(d), this notice of EPA's decision to approve Indiana's request
to revise/modify its following EPA-authorized programs under 40 CFR
parts 60, 63, 70, 123, 403, 271 and 281, to allow electronic reporting
under 40 CFR parts 60, 61, 63, 64, 65, 70, 122, 125, 403-471, 260-270,
272-279, and 280 is being published in the Federal Register:

Part 60: Standards of Performance for New Stationary Sources (NSPS/CAR/
Clean Air Act Title III) Reporting under CFR 60 & 65
Part 63: National Emission Standards for Hazardous Air Pollutants for
Source Categories (NESHAP MACT/Clean Air Act Title III) Reporting under
CFR 61, 63 & 65
Part 70: State Operating Permit Programs (Clean Air Act Title V)
Reporting under CFR 64 & 70
Part 123: EPA-Administered Permit Programs: the National Pollutant
Discharge Elimination System (NPDES) Reporting under CFR 122 & 125
Part 403: General Pretreatment Regulations for Existing and New Sources
of Pollution Reporting under CFR 403-471
Part 271: Requirements for Authorization of State Hazardous Waste
Programs (RCRA Subtitle C) Reporting under CFR 260-270, 272-279
Part 281: Technical Standards and Corrective Action Requirements for
Owners and Operators of Underground Storage Tanks (UST) Reporting under
CFR 280

    IDEM was notified of EPA's determination to approve its application
with respect to the authorized programs listed above.

    Dated: February 19, 2021.
Jennifer Campbell,
Director, Office of Information Management.
[FR Doc. 2021-09005 Filed 4-29-21; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: July 13, 2009 (Volume 74, Number 132)]
[Proposed Rules]
[Page 33381-33382]
[DOCID:fr13jy09-13]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2009-0552; Airspace Docket No. 09-ANM-7]

Proposed Establishment of Class E Airspace; Ronan, MT

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This action proposes to establish Class E airspace at Ronan,
MT. Additional controlled airspace is necessary to accommodate aircraft
using a new Area Navigation (RNAV) Global Positioning System (GPS)
Standard Instrument Approach Procedure (SIAP) at Ronan Airport, Ronan,
MT. The FAA is proposing this action to enhance the safety and
management of aircraft operations at Ronan Airport.

DATES: Comments must be received on or before August 27, 2009.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590.
Telephone<PHONE_NUMBER>. You must identify FAA Docket No. FAA-2009-
0552; Airspace Docket No. 09-ANM-7, at the beginning of your comments.
You may also submit comments through the Internet at http://
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Eldon Taylor, Federal Aviation
Administration, Operations Support Group, Western Service Center, 1601
Lind Avenue, SW., Renton, WA 98057; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA 2009-0552 and Airspace Docket No. 09-ANM-7) and be submitted in
triplicate to the Docket Management System (see ADDRESSES section for
address and phone number). You may also submit comments through the
Internet at http://www.regulations.gov.
    Commenters wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to FAA
Docket No. FAA-2009-0552 and Airspace Docket No. 09-ANM-7.'' The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified closing date
for comments will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the closing date
for comments. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://
www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_
amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. An informal docket may also be examined during normal
business hours at the Northwest Mountain Regional Office of the Federal
Aviation Administration, Air Traffic Organization, Western Service
Area, Operations Support Group, 1601 Lind Avenue, SW., Renton, WA
98057.
    Persons interested in being placed on a mailing list for future
NPRMs should contact the FAA's Office of Rulemaking,<PHONE_NUMBER>,
for a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 by establishing Class E airspace at Ronan,
MT. Controlled airspace extending upward from 700 feet above the
surface is necessary to accommodate aircraft using the new RNAV (GPS)
SIAP at Ronan Airport, Ronan, MT. This action would enhance the safety
and management of aircraft operations at the airport.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.9S, signed October 3, 2008, and effective October 31,
2008, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designation listed in this document will be published
subsequently in this Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this proposed regulation: (1) Is not a ``significant
regulatory action'' under Executive Order 12866; (2) is not a
``significant rule'' under DOT Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3) does not warrant preparation of a
regulatory evaluation as the anticipated impact is so minimal. Since
this is a routine matter that will only affect air traffic procedures
and air navigation, it is certified that this proposed rule, when
promulgated, would not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the U.S. Code. Subtitle 1, Section 106, describes
the authority for the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of the
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it establishes controlled airspace at Ronan, MT.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

    1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the FAA Order
7400.9S, Airspace Designations and Reporting Points, signed October 3,
2008, and effective October 31, 2008, is amended as follows:

Paragraph 6005. Class E airspace areas extending upward from 700
feet or more above the surface of the earth.

* * * * *

ANM MT E5 Ronan, MT [New]

Ronan Airport, MT
    (Lat. 47[deg]34'02'' N., long. 114[deg]06'04'' W.)

    That airspace extending upward from 700 feet above the surface
within an 8.4-mile radius of Ronan Airport, excluding that airspace
within Federal airways.
* * * * *

    Issued in Seattle, Washington, on June 30, 2009.
H. Steve Karnes,
Acting Manager, Operations Support Group, Western Service Center.
 [FR Doc. E9-16501 Filed 7-10-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 143 (Thursday, July 27, 2017)]
[Notices]
[Pages 35014-35019]
[FR Doc No: 2017-15775]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81188; File No. SR-NASDAQ-2017-061]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change To Amend Exchange Rules 4702
and 4754 To Enhance the Nasdaq Closing Cross

July 21, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 13, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 4702 (Order Types) and Rule
4754 (Nasdaq Closing Cross) to enhance the Nasdaq Closing Cross by
permitting members to submit LOC Orders until immediately prior to 3:55
p.m. ET subject to certain conditions, and to make other changes
related to Closing Cross/Extended Hours Orders.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to amend Rule 4702
(Order Types) and Rule 4754 (Nasdaq Closing Cross) to enhance the
Nasdaq Closing Cross by permitting members to submit Limit On Close
(``LOC'') Orders \3\ after the current 3:50 p.m. ET cutoff, and to make
other changes related to Closing Cross/Extended Hours Orders. As
proposed, LOC Orders entered after the current 3:50 p.m. ET cutoff and
immediately prior to 3:55 p.m. ET will be accepted to participate in
the Nasdaq Closing Cross provided that certain conditions are met. The
Nasdaq Closing Cross is the process for determining the price at which
orders shall be executed at the close and for executing those
orders.\4\ The Exchange believes that permitting members to enter LOC
Orders later in the trading day will encourage additional participation
in the Nasdaq Closing Cross, thereby reducing Imbalances,\5\ and
increasing the quality of the cross. Furthermore, the Exchange believes
that the other changes related to Closing Cross/Extended Hours Orders
will align the Exchange's on-close order handling with member
expectations and the characteristics of those order types.
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    \3\ A ``Limit On Close Order'' or ``LOC Order'' is an Order Type
entered with a price that may be executed only in the Nasdaq Closing
Cross, and only if the price determined by the Nasdaq Closing Cross
is equal to or better than the price at which the LOC Order was
entered. See Rule 4702(b)(12).
    \4\ See Rule 4754(a)(6).
    \5\ ``Imbalance'' means the number of shares of buy or sell MOC
or LOC Orders that cannot be matched with other MOC or LOC, or IO
Order shares at a particular price at any given time. See Rule
4754(a)(2). The definition above includes rule corrections made in
this proposed rule change.
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Background
    The Nasdaq Closing Cross provides a transparent auction process
that determines a single price for the close. The price determined by
the Nasdaq Closing Cross is also the Nasdaq Official Closing Price for
stocks that participate in the cross. Members can submit LOC Orders,
Market On Close (``MOC'') Orders,\6\ and Imbalance Only (``IO'') Orders
\7\ that are available to participate in the Closing Cross along with
other Close Eligible Interest.\8\ Today, MOC and LOC Orders may be
entered, cancelled, and/or modified between 4:00 a.m. ET and
immediately prior to 3:50 p.m. ET. IO Orders may be entered between
4:00 a.m. ET until the time of execution of the Nasdaq Closing Cross,
but may not be cancelled or modified at or after 3:50 p.m. ET (with
limited exceptions to correct a legitimate error), and members can also
enter other Close Eligible Interest on the continuous book up until the
time of the cross. At 3:50 p.m. ET, the Exchange stops accepting MOC
and LOC Orders and begins disseminating an Order Imbalance Indicator
\9\ that contains information about the Closing Cross, including the
Current Reference Price,\10\ the number of paired shares at that price,
the size and side of any Imbalance, Near and Far Clearing Prices,\11\
and a market buy or market sell indicator.12 13 At 4:00 p.m.
ET, the Exchange will execute the Nasdaq Closing Cross at a price
determined in accordance with Rule 4754(b)(2),\14\ and disseminate the
executions via the consolidated tape.\15\ To ensure the best experience
for market

participants that trade in the Nasdaq Closing Cross, or use the Nasdaq
Official Closing Price determined by the cross, the Exchange now
proposes to introduce functionality that permits members to enter LOC
Orders between the current 3:50 p.m. ET cutoff and immediately prior to
3:55 p.m. ET. The proposed functionality is described in detail in the
following sections of the proposed rule change.
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    \6\ A ``Market On Close Order'' or ``MOC Order'' is an Order
Type entered without a price that may be executed only during the
Nasdaq Closing Cross. See Rule 4702(b)(11).
    \7\ An ``Imbalance Only Order'' or ``IO Order'' is an Order
entered with a price that may be executed only in the Nasdaq Closing
Cross and only against MOC Orders or LOC Orders. See Rule
4702(b)(13).
    \8\ ``Close Eligible Interest'' means any quotation or any order
that may be entered into the system and designated with a time-in-
force of SDAY, SGTC, MDAY, MGTC, SHEX, or GTMC. See 4754(a)(1).
    \9\ ``Order Imbalance Indicator'' means a message disseminated
by electronic means containing information about MOC, LOC, IO, and
Close Eligible Interest and the price at which those orders would
execute at the time of dissemination.
    \10\ ``Current Reference Price'' means: (i) The single price
that is at or within the current Nasdaq Market Center best bid and
offer at which the maximum number of shares of MOC, LOC, and IO
orders can be paired. (ii) If more than one price exists under
subparagraph (i), the Current Reference Price shall mean the price
that minimizes any Imbalance. (iii) If more than one price exists
under subparagraph (ii), the Current Reference Price shall mean the
entered price at which shares will remain unexecuted in the cross.
(iv) If more than one price exists under subparagraph (iii), the
Current Reference Price shall mean the price that minimizes the
distance from the bid-ask midpoint of the inside quotation
prevailing at the time of the order imbalance indicator
dissemination. See Rule 4754(a)(7)(A). The definition above includes
rule corrections made in this proposed rule change.
    \11\ The Near Clearing Price and Far Clearing Price are
indicative prices at which the Nasdaq Closing Cross would occur if
it were to occur at that time. Specifically, the ``Far Clearing
Price'' is the price at which MOC, LOC, and IO Orders would execute,
and the ``Near Clearing Price'' is the price at which MOC, LOC, IO,
and Close Eligible Interest would execute. See Rule
4754(a)(7)(E)(i)-(ii).
    \12\ An indicator for ``market buy'' or ``market sell'' is
disseminated if marketable buy (sell) shares would remain unexecuted
above (below) the Near Clearing Price or Far Clearing Price. See
Rule 4754(a)(7)(E)(iii).
    \13\ See Rules 4754(a)(7), (b)(1). The Exchange disseminates the
Order Imbalance Indicator every 5 seconds beginning at 3:50 p.m. ET
until market close.
    \14\ See Rule 4754(b)(2). Orders and quotes executed in the
Nasdaq Closing Cross are allocated based on the priority described
in Rule 4754(b)(3).
    \15\ See Rule 4754(b)(4).
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Acceptance of LOC Orders
    The Nasdaq Closing Cross was designed to create a robust close that
allows for efficient price discovery through a transparent auction
process. To permit additional interest to participate in the Nasdaq
Closing Cross, and increase the quality of the cross, the Exchange
proposes to allow LOC Orders to be entered until immediately prior to
3:55 p.m. ET in certain circumstances. Specifically, the Exchange
proposes to allow LOC Orders to be entered between 3:50 p.m. ET and
immediately prior to 3:55 p.m. ET if there is a Current Reference Price
in the first Order Imbalance Indicator disseminated at or after 3:50
p.m. ET (``First Reference Price'').\16\ The presence of a First
Reference Price indicates that there is matched buy and sell interest
that is eligible to participate in the Nasdaq Closing Cross. When there
is matched interest available to participate in the close, the Exchange
believes that allowing members to continue to enter LOC Orders after
the current 3:50 p.m. ET cutoff will facilitate a more efficient
closing auction by allowing additional priced interest to participate
in the close. When there is no First Reference Price, there is no
matched buy and sell interest that is eligible to participate in the
Nasdaq Closing Cross, and therefore no need to continue to accept LOC
Orders. The Exchange believes that it is appropriate to allow members
to enter LOC Orders later in the trading day where market conditions
suggest that allowing additional interest to participate may serve to
reduce Imbalances and increase the quality of the Nasdaq Closing Cross.
---------------------------------------------------------------------------

    \16\ If there is no First Reference Price a value of zero will
be disseminated in the first Order Imbalance Indicator. A value
other than zero in this message indicates that there is a First
Reference Price.
---------------------------------------------------------------------------

Re-Pricing of LOC Orders
    While all LOC Orders must be entered with a limit price, the
Exchange proposes to re-price LOC Orders entered after the current 3:50
p.m. ET cutoff to the less aggressive of the order's limit price or the
First Reference Price in order to prevent these orders from having a
significant impact on the price established by the Nasdaq Closing
Cross. Specifically, an LOC Order entered between 3:50 p.m. ET and
immediately prior to 3:55 p.m. ET will be accepted at its limit price,
unless its limit price is higher (lower) than the First Reference Price
for an LOC Order to buy (sell), in which case the LOC Order will be re-
priced to the First Reference Price; provided that if the First
Reference Price is not at a permissible minimum increment of $0.01 or
$0.0001, as applicable, the First Reference Price will be rounded (i)
to the nearest permitted minimum increment (with midpoint prices being
rounded up) if there is no imbalance, (ii) up if there is a buy
imbalance, or (iii) down if there is a sell imbalance.\17\ The Exchange
proposes to use the First Reference Price to price these LOC Orders
because they are designed to reduce Imbalances without having a
significant impact on the price of the cross. For this reason, the
Exchange will also only re-price these LOC Orders using the First
Reference Price even when there is a newer Current Reference Price
available, as re-pricing based on updated prices may decrease stability
of the cross price, which is counter to the intent of this proposed
rule change.
---------------------------------------------------------------------------

    \17\ The Exchange proposes to use natural rounding when there is
no imbalance. When there is an imbalance the Exchange will round
such that more offsetting interest can participate. Thus, where
there is a buy imbalance the Exchange will round the First Reference
Price up to allow more sell interest to participate, and when there
is a sell imbalance the Exchange will round the First Reference
Price down to allow more buy interest to participate. For example,
if there is a sell imbalance, a First Reference Price of $10.015
would be rounded down to $10.01. Re-pricing based on a price of
$10.01 would allow additional buy orders to offset the sell
imbalance at that price when they may be excluded at a price of
$10.02.
---------------------------------------------------------------------------

Alternative Closing Procedures
    In addition to the Nasdaq Closing Cross described above, the
Exchange operates an LULD Closing Cross and Primary Contingency
Procedures that provide alternative processes for executing closing
trades on Nasdaq.\18\ The LULD Closing Cross is employed when a Trading
Pause pursuant to Rule 4120(a)(12) is triggered at or after 3:50 p.m.
ET and before 4:00 p.m. ET.\19\ The Exchange proposes to specify in its
rules that MOC, LOC, and IO Orders intended for the Nasdaq Closing
Cross entered into the system and placed on the book prior to the
Trading Pause will remain on the book to participate in the LULD
Closing Cross. With this change, LOC Orders that are now available to
be entered after the current 3:50 p.m. ET cutoff will be able to
participate in the LULD Closing Cross. When the Exchange is conducting
an LULD Closing Cross, LOC Orders would be eligible to be entered until
the earlier of the Trading Pause and immediately prior to 3:55 p.m.
ET.\20\ In addition, the rule will be amended to correctly state that
all IO Orders that are entered prior to the Trading Pause will
participate in the LULD Closing Cross, instead of only those IO Orders
entered prior to 3:50 p.m. ET, which is consistent with current
functionality.\21\ The Exchange's intent has always been to include all
MOC, LOC, and IO Orders that are entered and accepted in the LULD
Closing Cross. Similarly, the Exchange's rules also provide for Primary
Contingency Procedures in the event that a disruption occurs that
prevents the execution of the Nasdaq Closing Cross. In such instances,
the Exchange segregates MOC and LOC Orders entered prior to 3:50 p.m.
ET and IO Orders entered prior to 4:00 p.m. ET for participation in the
Contingency Closing Cross. Since members will be able to submit LOC
Orders up to immediately prior to 3:55 p.m. ET, the Exchange proposes
to amend its rule for Primary Contingency Procedures to provide that
LOC Orders entered prior to 3:55 p.m. ET are eligible to participate.
Finally, to ensure a fair and orderly market, the Exchange employs
certain Auxiliary Procedures when significant trading volume is
expected at the close of market hours. Although the Exchange is not
proposing any substantive changes to its Auxiliary Procedures, it is
correcting an incorrect cross reference in that rule. In particular,
Rule 4754(b)(5)(D) provides that the

Exchange can adjust the threshold value set forth in subparagraph
(c)(2)(D) to no greater than 20 percent when Auxiliary Procedures are
employed. The Exchange proposes to correct this cross reference, which
should instead point to subparagraph (b)(2)(E), which provides that if
the Nasdaq Closing Cross price is outside benchmarks established by
Nasdaq by a threshold amount, the cross will occur at the price within
those thresholds that best satisfies to [sic] other conditions of the
rule.
---------------------------------------------------------------------------

    \18\ The Exchange also employs Secondary Contingency Procedures,
which are available if both the standard procedures and the Primary
Contingency Procedures are unavailable. The Exchange is not
proposing any changes to the Secondary Contingency Procedures as
these procedures do not involve the execution of closing trades on
Nasdaq. See Rule 4754(b)(8).
    \19\ A recently approved but not yet operative proposed rule
change amends this section to provide that the LULD Closing Cross is
employed when a Trading Pause pursuant to Rule 4120(a)(12) exists at
or after 3:50 p.m. ET and before 4:00 p.m. ET. See Securities
Exchange Act Release No. 79876 (January 25, 2017), 82 FR 8888
(January 31, 2017) (SR-NASDAQ-2016-131). The discussion in this
proposed rule change is based on currently implemented
functionality.
    \20\ The Exchange also proposes to remove a reference in Rule
4754(b)(6)(C)(iii) that states that MOC or LOC Orders ``may not be
submitted after 3:50.'' This conforming change is being made because
members will now be permitted to submit LOC orders that would
participate in the LULD Closing Cross if entered prior to the
earlier of the Trading Pause and immediately prior to 3:55 p.m. ET
as discussed in this filing.
    \21\ MOC Orders entered after 3:50 p.m. ET will continue to be
rejected, and therefore would not be eligible for the LULD Closing
Cross. See Rule 4702(b)(11)(A).
---------------------------------------------------------------------------

Closing Cross/Extended Hours Orders
    The Exchange also proposes to make two changes with respect to
Closing Cross/Extended Hours Orders: (1) To clarify handling of certain
order types that are not eligible to participate in the Nasdaq Closing
Cross as Closing Cross/Extended Hours Orders, and to add Market Maker
Peg Orders to that list; and (2) to remove language regarding
conversion of Closing Cross/Extended Hours Orders entered between 3:50
p.m. ET and the time of the Nasdaq Closing Cross. A Closing Cross/
Extended Hours Order is an order that is flagged to participate in the
Nasdaq Closing Cross and entered with a time-in-force that continues
after the cross. Such orders are typically treated as LOC Orders for
participation in the Nasdaq Closing Cross and then operate pursuant to
their order type and attributes.
    Today, Rule 4702(b)(12)(B) states that, following the Nasdaq
Closing Cross, a Closing Cross/Extended Hours Order may not operate as
a Post-Only Order, Midpoint Peg Post-Only Order, Supplemental Order,
Retail Order, or RPI Order. As written, this rule could be interpreted
as implying that a member could enter these order types with an on-
close instruction and would participate in the Nasdaq Closing Cross and
thereafter not be eligible for extended hours trading. In fact,
although these orders are eligible to participate in the Nasdaq Closing
Cross when entered on the continuous book, Post-Only Orders, Midpoint
Peg Post-Only Orders, Supplemental Orders, and Retail Orders, cannot be
entered with a flag designating an on-close instruction, and therefore
cannot operate as a Closing Cross/Extended Hours Order. Furthermore,
RPI Orders are not currently offered on the Exchange. The Exchange
therefore proposes to clarify the rule so that it is more transparent
to members that a Post-Only Order, Midpoint Peg Post-Only Order,
Supplemental Order, or Retail Order, may not operate as a Closing
Cross/Extend Hours Order. In addition, the rule states that, in the
case of a Market Maker Peg Order entered prior to 3:50 p.m. ET that is
also designated to participate in the Nasdaq Closing Cross, the price
of the Order for purposes of operating as an LOC Order will be
established on entry and will not thereafter be pegged until after the
completion of the Nasdaq Closing Cross. While this is consistent with
current system behavior, the Exchange no longer believes that Market
Maker Peg Orders should be eligible to be entered with a flag
designating an on-close instruction, and thereby designated as Closing
Cross/Extended Hours Orders, similar to the other order types mentioned
above. Furthermore, members do not typically enter these orders with
such an instruction. The Exchange therefore proposes to specify that a
Market Maker Peg Order may not operate as a Closing Cross/Extended
Hours Order.
    Rule 4702(b)(12)(B) also states that a Closing Cross/Extended Hours
Order that is entered between 3:50 p.m. ET and the time of the Nasdaq
Closing Cross is (i) rejected if it has been assigned a Pegging
Attribute, (ii) treated as an IO Order and then entered into the System
after the completion of the Nasdaq Closing Cross if entered through
RASH, QIX, or FIX but not assigned a Pegging Attribute, and (iii)
treated as an IO Order and cancelled after the Nasdaq Closing Cross if
entered through OUCH or FLITE. The Exchange now believes that members
would be better served by functionality that does not convert these
Closing Cross/Extended Hours Orders to IO Orders and therefore proposes
to remove the language in (ii) and (iii) above from its rules.\22\ The
Exchange believes that this change is more consistent with member's
expectations when entering orders that are expected to trade as LOC
Orders but would be converted to IO Orders in the system today. A
Closing Cross/Extended Hours Order that is entered between 3:50 p.m. ET
and the time of the Nasdaq Closing Cross will continue to be rejected
pursuant to (i) above if it has been assigned a Pegging Attribute.
---------------------------------------------------------------------------

    \22\ As an additional conforming change, the Exchange is also
amending a reference in Rule 4702(b)(12)(B) that states that ``[a]ll
other LOC Orders and Closing Cross/Extended Hours Orders entered at
or after 3:50 p.m. ET will be rejected'' to reflect the proposed
time period for entering LOC Orders, which will now be until
immediately prior to 3:55 p.m. ET.
---------------------------------------------------------------------------

Order Imbalance Indicator
    As described in other parts of this filing, the Exchange
disseminates an Order Imbalance Indicator beginning at 3:50 p.m. ET
that includes several data elements to provide information about the
Nasdaq Closing Cross to market participants. These data elements
include the Current Reference Price and the number of shares that are
paired at the Current Reference Price. Currently, the rule states that
the Current Reference Price is based on the single price that is at or
within the current Nasdaq Market Center best bid and offer at which the
maximum number of shares of MOC, LOC, IO and Close Eligible Interest
can be paired (with certain tie-breakers if multiple prices meet this
criterion). In addition, the rule states that the paired shares data
element indicates the number of shares represented by MOC, LOC, IO and
Close Eligible Interest that are paired at the Current Reference Price.
The Exchange notes, however, that the Order Imbalance Indicator has
never included Close Eligible Interest in determining the Current
Reference Price or the number of paired shares at that price. The
Exchange therefore proposes to amend this rule to state that the
Exchange will disseminate a Current Reference Price based on the single
price that is at or within the current Nasdaq Market Center best bid
and offer at which the maximum number of shares of MOC, LOC, and IO
orders can be paired, and a paired share count based on the number of
shares represented by MOC, LOC, and IO Orders that are paired at the
Current Reference Price. With these changes, Rule 4754(a)(7)(B) will
correctly reflect the information disseminated to market participants.
In addition, the Exchange notes that Rule 4752(a)(2)(B) contains a
similar error in including Open Eligible Interest in the Current
Reference Price calculation and paired share count for the Nasdaq
Opening Cross. The Exchange therefore proposes to correct that rule as
well. With these changes, Rule 4752(a)(2)(B) will correctly indicate
that the Exchange will disseminate a Current Reference Price based on
the single price that is at or within the current Nasdaq Market Center
best bid and offer at which the maximum number of shares of MOO, LOO,
OIO, and Early Market Hours orders can be paired, and a paired share
count based on the number of shares represented by MOO, LOO, OIO, and
Early Market Hours orders that are paired at the Current Reference
Price.
    Finally, the Order Imbalance Indicator includes the size of any
Imbalance. Currently, Imbalance is defined in Rule 4754(a)(2) as ``the
number of shares of buy or sell MOC or LOC Orders that cannot be
matched with other MOC or LOC, Close Eligible Interest or IO Order
shares at a particular price at any given time.'' Although the rule
states that

Close Eligible Interest is used when determining an Imbalance, in
practice, similar to the Current Reference Price calculation and paired
share count described above, the Imbalance calculation has never
included Close Eligible Interest. The Exchange therefore proposes to
remove the incorrect reference to Close Eligible Interest in the rule.
As proposed, Imbalance will be correctly defined as ``the number of
shares of buy or sell MOC or LOC Orders that cannot be matched with
other MOC or LOC, or IO Order shares at a particular price at any given
time.'' In addition, the Exchange notes that Rule 4752(a)(1) contains a
similar error in including Open Eligible Interest in the Imbalance
calculation for the Nasdaq Opening Cross. The Exchange therefore
proposes to correct that rule as well. With this change, Rule
4752(a)(1) will correctly define an Imbalance for the Nasdaq Opening
Cross as ``the number of shares of buy or sell MOO, LOO or Early Market
Hours orders that may not be matched with other MOO, LOO, Early Market
Hours, or OIO order shares at a particular price at any given time.''
Implementation
    The Exchange proposes to launch the functionality described in this
proposed rule change in either Q3 or Q4 2017 pursuant to a symbol-by-
symbol rollout. The Exchange will announce the implementation date of
this functionality and the symbol rollout in an Equity Trader Alert
issued to members prior to the launch date.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\23\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\24\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general to protect
investors and the public interest.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the introduction of the proposed LOC
Order functionality will remove impediments to and perfect the
mechanism of a free and open market as this proposed change is designed
to increase the quality of the Nasdaq Closing Cross. The Nasdaq Closing
Cross provides an industry-leading, transparent price discovery process
that aggregates a large pool of liquidity, across a variety of order
types, in a single venue. The Exchange believes that increasing
participation in the Nasdaq Closing Cross by offering the proposed LOC
Order enhancement will further promote price discovery and
participation at the close by allowing additional priced interest to be
submitted for the close. In addition to providing a mechanism for
members to execute closing interest, the Nasdaq Closing Cross also
generates a closing price that is used widely throughout the industry
for a variety of purposes including index and mutual fund valuations.
The Exchange therefore believes that it is important to ensure that the
Nasdaq Closing Cross provides the best possible experience for members
and investors that rely on the cross and the closing prices it
generates.
    Allowing members to enter LOC Orders later in the trading day will
enhance the Nasdaq Closing Cross by increasing participation, and
reducing the frequency of Imbalances that may increase volatility of
the closing cross price. Currently, members that have interest to
execute at the closing price have more limited options in submitting
that interest after 3:50 p.m. ET when the time window for entering MOC
and LOC Orders has closed. Specifically, these members must either
submit IO Orders, which do not trade if there is no Imbalance and do
not maintain price priority since they are continuously re-priced to
the best bid or offer, or must submit regular orders to the continuous
book, where they may execute before the cross begins. Member feedback
has indicated that a longer period for the entry of LOC Orders would be
beneficial for firms that participate in the close. The proposed
functionality would allow firms to maintain price standing when
providing liquidity intended for the Nasdaq Closing Cross, allowing
potentially better trading outcomes for firms, and thereby encouraging
additional interest to participate in the cross. The proposed rule
change is therefore likely to improve price discovery and the stability
of the Nasdaq Closing Cross to the benefit of all market participants.
The Exchange believes that the proposed 3:55 p.m. ET cutoff for
submitting LOC Orders appropriately balances the need for members to
submit interest for the Nasdaq Closing Cross later in the trading day
with the need for a stable cross.
    Since the proposed functionality is designed to reduce Imbalances
and create a more efficient cross, the Exchange will only accept these
orders where there is a First Reference Price. As previously explained,
the presence of a First Reference Price indicates that there is matched
interest that is eligible to participate in the Nasdaq Closing Cross.
The Exchange believes that this is when it is most helpful to allow
additional interest intended for the cross as new LOC Orders can be
used to decrease Imbalances and facilitate a more efficient closing
auction to the benefit of members and investors. The proposed
functionality has been designed to reduce Imbalances that may exist
during the closing process, and is not intended to create Imbalances
where there is no interest that is eligible to participate in the
cross. Thus, the Exchange believes that accepting LOC Orders between
3:50 p.m. ET and immediately prior to 3:55 p.m. ET only when there is a
First Reference Price is consistent with the protection of investors
and the public interest. The Exchange believes that it is appropriate
to allow members to enter LOC Orders until immediately prior to 3:55
p.m. ET where market conditions suggest that allowing additional
interest to participate may serve to reduce Imbalances and increase the
quality of the Nasdaq Closing Cross. Furthermore, if members wish to
have their LOC Orders participate in the Nasdaq Closing Cross
regardless of whether there is a First Reference Price they can
continue to enter that interest prior to 3:50 p.m. ET.
    To ensure more price stability in the Nasdaq Closing Cross, the
Exchange is also proposing to re-price LOC Orders entered after 3:50
p.m. ET to the First Reference Price in circumstances where the order's
limit price is more aggressive than the First Reference Price. The
Exchange believes that re-pricing LOC Orders entered after the regular
cutoff is consistent with just and equitable principles of trade
because the proposed functionality is designed to reduce Imbalances
without having a significant impact on the price determined by the
cross. At the time it is disseminated, the First Reference Price
represents the price, bounded by the continuous market, where the
maximum number of on-close shares can be paired. The Exchange believes
that it is appropriate to re-price to this price, provided that it is
within the order's limit price. This will allow orders to coalesce
around this price, creating additional liquidity, and potentially
reducing Imbalances. Furthermore, to the extent that members do not
want their LOC Orders re-priced, they can continue to submit LOC Orders
before the 3:50 p.m. cutoff. Thus, the Exchange believes that it is
consistent with the protection of investors and the public interest to
re-price LOC Orders

entered after 3:50 p.m. ET such that they contribute to available
interest eligible to participate in the cross, without the potential to
significantly increase volatility in the closing cross price.
    The Exchange also believes that it is consistent with the public
interest and the protection of investors to allow LOC Orders entered
after the regular 3:50 p.m. ET cutoff to participate in the LULD
Closing Cross and Primary Contingency Procedures. The LULD Closing
Cross is employed by the Exchange when a Trading Pause is triggered at
or after 3:50 p.m. ET and before 4:00 p.m. ET, and today includes LOC
Orders submitted prior to the current 3:50 p.m. ET cutoff. With the
proposed changes to allow members to submit LOC Orders later in the
trading day, LOC Orders entered after the regular 3:50 p.m. ET cutoff
will also be permitted to trade in the LULD Closing Cross provided that
they have been entered into the system and placed on the book prior to
the pause.\25\ IO Orders that are entered prior to the Trading Pause
are also eligible to trade in the LULD Closing Cross today, and the
changes being made to that section reflect this. The Exchange believes
that the changes with respect to IO Orders are consistent with public
interest and protection of investors as this change is being made to
avoid member confusion about what interest is eligible for the LULD
Closing Cross in the event that this procedure is used by the Exchange.
Similarly, the Primary Contingency Procedures are employed when a
disruption occurs that prevents the execution of the Nasdaq Closing
Cross, and today also includes LOC Orders entered prior to 3:50 p.m.
ET. Since LOC Orders may now be accepted later in the trading day,
those orders will now also be allowed to participate in the Primary
Contingency Procedures. The Exchange believes that allowing these later
LOC Orders to participate in the LULD Closing Cross and Primary
Contingency Procedures will promote just and equitable principles of
trade and perfect the mechanism of a free and open market. Finally,
with respect to the changes for Auxiliary Procedures, the Exchange
notes that it is only changing an incorrect cross reference, which will
benefit members by ensuring that the Exchange's rulebook is accurate.
No substantive changes are being made to this provision.
---------------------------------------------------------------------------

    \25\ As noted previously in this filing, the Exchange is also
removing a reference in Rule 4754(b)(6)(C)(iii) that states that MOC
or LOC Orders ``may not be submitted after 3:50'' because members
will now be permitted to submit LOC orders that would participate in
the LULD Closing Cross if entered prior to the earlier of the
Trading Pause and immediately prior to 3:55 p.m. ET.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed changes related to
Closing Cross/Extended Hours Orders are consistent with the protection
of investors and the public interest. With respect to handling of
Market Maker Peg Orders entered with an on-close instruction, the
Exchange believes that the proposed functionality, which is to reject
the order, is more consistent with member expectations. The Exchange
does not believe that members want functionality that allows Market
Maker Peg Orders to be entered with a flag designating an on-close
instruction and which would therefore operate as Closing Cross/Extended
Hours Orders. Furthermore, this is consistent with the Exchange's
review of this order type, which indicates that members enter this
combination very rarely. Market Maker Peg Orders were designed to
assist members in meeting their quoting obligations and not as a means
of submitting interest flagged with an on-close instruction. The
Exchange also believes that the other changes to this rule to clarify
that a Post-Only Order, Midpoint Peg Post-Only Order, Supplemental
Order, or Retail Order, may not operate as a Closing Cross/Extend Hours
Order will benefit members by increasing transparency with respect to
order handling. No changes are being made to the trading system to
implement this change; this change merely clarifies current
functionality offered on the Exchange. Finally, with respect to Closing
Cross/Extended Hours Orders entered between 3:50 p.m. ET and the time
of the Nasdaq Closing Cross, the Exchange believes that it is
consistent with the public interest and the protection of investors to
no longer offer functionality that converts these orders to IO Orders.
With the proposed changes for LOC Orders, members will be able to enter
LOC Orders up until 3:55 p.m. ET instead of the current 3:50 p.m. ET
cutoff. After 3:55 p.m. ET, the Exchange believes that members would
rather have their Closing Cross/Extended Hours Orders rejected like
other LOC Orders rather than treated as IO Orders, which do not trade
if there is no Imbalance and do not maintain price priority since they
are continuously re-priced to the best bid or offer. The Exchange
therefore believes that the proposed change is designed to promote just
and equitable principles of trade.
    Finally, the Exchange believes that the proposed changes related to
the information disseminated in the Order Imbalance Indicator for both
the closing and opening processes is consistent with the public
interest and the protection of investors because these changes more
accurately reflect the information currently disseminated. Today, the
Order Imbalance Indicator for the Nasdaq Closing Cross does not include
Close Eligible Interest in its calculation of the Current Reference
Price or the paired share count. Similarly, the Order Imbalance
Indicator for the Nasdaq Opening Cross does not include Open Eligible
Interest for either of those data elements. In each case, the Exchange
believes that it is more appropriate to exclude Close or Open Eligible
Interest from the Current Reference Price calculation and paired share
count disseminated to market participants as these orders may be
executed in the continuous market before the closing or opening auction
commences. The Exchange believes that updating its rule to accurately
reflect the information disseminated to market participants will
increase transparency surrounding these processes, and is therefore
designed to promote just and equitable principles of trade. In
addition, with respect to the definition of Imbalance, the Exchange
notes that, similar to the Current Reference Price and paired share
count, the Imbalance calculation does not include Close Eligible
Interest for the Nasdaq Closing Cross or Open Eligible Interest for the
Nasdaq Opening Cross. For the same reasons described above, the
Exchange believes that it is appropriate to not include interest that
could be executed in the continuous market prior to the closing or
opening auction in the Imbalance calculation. The Exchange believes
that updating these rules will increase transparency to the benefit of
members and other market participants, and is therefore designed to
promote just and equitable principles of trade.

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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange is enhancing the
Nasdaq Closing Cross to benefit members and investors, and does not
believe that the proposed rule change would impose any significant
burden on competition. Today, the Nasdaq Closing Cross provides a
transparent auction process for executing member interest at the close.
The proposed rule change is designed to allow additional interest to
participate in the Nasdaq Closing Cross, and thereby provide a more
efficient process for executing closing interest, and enhancing price
discovery during

the close. The Exchange believes that proposed functionality will
enhance the experience for members that trade in the Nasdaq Closing
Cross and the various market participants that use the prices
discovered by the cross, and is evidence of the strong competition in
the equities industry, where exchanges must continually improve their
offerings to stay competitive.

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

    No written comments were either solicited or received.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2017-061 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2017-061. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2017-061 and should
be submitted on or before August 17, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2017-15775 Filed 7-26-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 208 (Thursday, October 27, 2016)]
[Notices]
[Pages 74840-74842]
[FR Doc No: 2016-25938]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79131; File No. SR-NYSEArca-2016-97]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change Relating to the Listing and Trading of Shares of
PowerShares Government Collateral Pledge Portfolio Under NYSE Arca
Equities Rule 8.600

October 21, 2016.

I. Introduction

    On July 6, 2016, NYSE Arca, Inc. (``Exchange'') 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 list and trade
shares (``Shares'') of the PowerShares Government Collateral Pledge
Portfolio (``Fund''). The proposed rule change was published for
comment in the Federal Register on July 26, 2016.\3\ On September 1,
2016, pursuant to Section 19(b)(2) of the Act,\4\ the Commission
designated a longer period within which to approve the proposed rule
change, disapprove the proposed rule change, or institute proceedings
to determine whether to disapprove the proposed rule change.\5\ The
Commission has received no comments on the proposed rule change. This
order institutes proceedings under Section 19(b)(2)(B) of the Act \6\
to determine whether to approve or disapprove the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78373 (July 20,
2016), 81 FR 48869 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 78750, 81 FR 62233
(September 8, 2016). The Commission designated October 24, 2016 as
the date by which the Commission shall either approve or disapprove,
or institute proceedings to determine whether to disapprove, the
proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
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II. Exchange's Description of the Proposal

    The Exchange proposes to list and trade the Shares of the Fund
under NYSE Arca Equities Rule 8.600, which governs the listing and
trading of Managed Fund Shares. The Fund is a series of the PowerShares
Actively Managed Exchange Traded Trust (``Trust'').\7\ Invesco
PowerShares Capital Management LLC is the investment adviser for the
Fund (``Adviser''), and Invesco Advisers, Inc. is the sub-adviser for
the Fund (``Sub-Adviser''). The Bank of New York Mellon (``BNYM'') will
be the administrator, custodian, and transfer agent for the Fund.
Invesco Distributors, Inc. will be the Fund's distributor
(``Distributor''). The Exchange represents that, while neither the
Adviser nor the Sub-Adviser is registered as a broker-dealer, the
Adviser and Sub-Adviser are each affiliated with a broker-dealer. The
Adviser and Sub-Adviser each has implemented and will maintain a fire
wall with respect to its affiliated broker-dealer regarding access to
information concerning the composition of, and changes to, the Fund's
portfolio.\8\ In the event (a) the Adviser or Sub-Adviser becomes
registered as a broker-dealer or newly affiliated with a broker-dealer,
or (b) any new adviser or sub-adviser becomes registered as a broker-
dealer or newly affiliated with a broker-dealer, it will implement a
fire wall with respect to its relevant personnel or such broker-dealer
affiliate regarding access to information concerning the composition
of, and changes to, the portfolio, and

will be subject to procedures designed to prevent the use and
dissemination of material non-public information regarding such
portfolio.
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    \7\ The Exchange represents that the Trust is registered under
the Investment Company Act of 1940 (``1940 Act''). According to the
Exchange, on May 20, 2016, the Trust filed with the Commission an
amendment to its registration statement on Form N-1A under the
Securities Act of 1933 and the 1940 Act relating to the Fund (File
Nos. 333-147622 and 811-22148) (``Registration Statement''). In
addition, the Exchange states that the Trust and the Adviser (as
defined herein) have obtained certain exemptive relief from the
Commission under the 1940 Act. See Investment Company Act Release
No. 28171 (February 27, 2008) (File No. 812-13386) (``Exemptive
Order''). The Exchange represents that the Fund will be offered in
reliance upon the Exemptive Order issued to the Trust and the
Adviser.
    \8\ The Exchange further represents that an investment adviser
to an open-end fund is required to be registered under the
Investment Advisers Act of 1940 (``Advisers Act''). As a result, the
Adviser and Sub-Adviser and their related personnel are subject to
the provisions of Rule 204A-1 under the Advisers Act relating to
codes of ethics. This Rule requires investment advisers to adopt a
code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
The Exchange represents that the Adviser and its related personnel
are subject to Advisers Act Rule 204A-1. In addition, Rule 206(4)-7
under the Advisers Act makes it unlawful for an investment adviser
to provide investment advice to clients unless such investment
adviser has (i) adopted and implemented written policies and
procedures reasonably designed to prevent violation, by the
investment adviser and its supervised persons, of the Advisers Act
and the Commission rules adopted thereunder; (ii) implemented, at a
minimum, an annual review regarding the adequacy of the policies and
procedures established pursuant to subparagraph (i) above and the
effectiveness of their implementation; and (iii) designated an
individual (who is a supervised person) responsible for
administering the policies and procedures adopted under subparagraph
(i) above.
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    The Exchange has made the following representations and statements
in describing the Fund and its investment strategies, including the
Fund's portfolio holdings and investment restrictions.\9\
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    \9\ The Commission notes that additional information regarding
the Trust, the Fund, and the Shares, including investment
strategies, risks, net asset value (``NAV'') calculation, creation
and redemption procedures, fees, Fund holdings disclosure policies,
distributions, and taxes, among other information, is included in
the Notice and the Registration Statement, as applicable. See Notice
and Registration Statement, supra notes 3 and 7, respectively.
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A. Exchange's Description of the Fund's Principal Investments

    According to the Exchange, the Fund's investment objective will be
to seek to provide as high a level of current income as is consistent
with liquidity and minimum volatility of principal. The Fund will seek
to achieve its investment objective by investing, under normal market
conditions,\10\ at least 80% of its net assets in a portfolio of
registered U.S. government money market mutual funds (``Underlying
Funds'')\11\ and in U.S. dollar-denominated government securities and
other money market securities eligible for investment by U.S.
government money market funds (including indirect investments in those
securities through the Underlying Funds).
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    \10\ The term ``under normal market conditions'' includes, but
is not limited to, the absence of extreme volatility or trading
halts in the fixed income securities markets or the financial
markets generally; circumstances under which the Fund's investments
are made for temporary defensive purposes; operational issues (e.g.,
systems failure) causing dissemination of inaccurate market
information; or force majeure type events such as natural or man-
made disaster, act of God, armed conflict, act of terrorism, riot or
labor disruption or any similar intervening circumstance.
    \11\ According to the Exchange, each Underlying Fund is a
``government money market fund,'' as that term is defined under Rule
2a-7 of the 1940 Act (``Rule 2a-7''), and seeks to maintain a stable
$1.00 NAV. Each Underlying Fund has an investment objective of
seeking to provide current income consistent with preservation of
capital and liquidity. The securities held by the Underlying Funds
will comply with all requirements of Rule 2a-7 and other Commission
rules applicable to money market funds seeking a stable NAV. Each
Underlying Fund invests at least 99.5% of its total assets in cash,
government securities, and/or repurchase agreements collateralized
by cash or government securities. In addition, each Underlying Fund
invests only in U.S. dollar-denominated securities maturing within
397 days of the date of purchase, with certain exceptions permitted
by applicable regulations, and maintains a dollar-weighted average
portfolio maturity of no more than 60 days, and a dollar-weighted
average portfolio maturity (as determined without exceptions
regarding certain interest rate adjustments under Rule 2a-7) of no
more than 120 days. The Exchange represents that, unlike the
Underlying Funds, the Fund will not be a money market fund, meaning
that the Fund will not seek to maintain a stable NAV of $1.00, nor
will it be subject to other requirements of Rule 2a-7. However, the
Fund will only purchase securities issued by registered government
money market funds, or securities that comply with the quality and
eligibility requirements of Rule 2a-7. The Fund and the Underlying
Funds may invest in variable and floating rate instruments that are
permitted under the requirements of Rule 2a-7, and may transact in
securities on a when-issued, delayed delivery, or forward commitment
basis.
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    Under normal market conditions, the Fund intends to invest a
substantial portion of its assets in the following Underlying Funds:
(a) Treasury Portfolio; (b) Government TaxAdvantage Portfolio; (c)
Government & Agency Portfolio; and (d) Premier US Government Money
Portfolio, each of which is advised by an affiliate of the Adviser. The
Sub-Adviser may add, eliminate, or replace any or all Underlying Funds
at any time. Any additions to or replacements of the Underlying Funds
in the Fund's portfolio also will be registered U.S. government money
market funds with investment characteristics that are substantially
similar to those of the Underlying Funds. The Adviser, the Sub-Adviser,
or their affiliates may advise some or all the Underlying Funds. In
constructing the Fund's portfolio, the Sub-Adviser generally will
allocate and re-allocate the Fund's assets among the Underlying Funds
on a monthly basis on an approximate pro rata basis that is based on
the amount of net assets of each Underlying Fund. However, the Sub-
Adviser is not required to invest the Fund's assets in any particular
Underlying Fund or allocate any particular percentage of the Fund's
assets to any particular Underlying Fund.

B. Exchange's Description of the Fund's Other Investments

    While the Fund, under normal circumstances, will invest at least
80% of its net assets in the securities and financial instruments
described above, the Fund may invest its remaining assets in other
assets and financial instruments, as described below.
    The Fund (and the Underlying Funds) may invest in certain U.S.
government obligations other than those referenced above, namely
Treasury receipts where the principal and interest components are
traded separately under the Separate Trading of Registered Interest and
Principal of Securities (STRIPS) program. The Fund also may invest
directly in repurchase agreements and reverse repurchase agreements.

C. Exchange's Description of the Fund's Investment Restrictions

    According to the Exchange, the Fund will be classified as ``non-
diversified.''
    The Fund intends to maintain the required level of diversification
and otherwise conduct its operations so as to qualify as a regulated
investment company for purposes of the U.S. Internal Revenue Code of
1986, as amended.
    The Fund may invest up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment). The
Fund will monitor its portfolio liquidity on an ongoing basis to
determine whether, in light of current circumstances, an adequate level
of liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid assets. Illiquid assets include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.
    The Fund will not invest in futures, options, swaps, or forward
contracts.
    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to enhance leverage. That is,
while the Fund will be permitted to borrow as permitted under the 1940
Act, the Fund's investments will not be used to seek performance that
is the multiple or inverse multiple (e.g., 2Xs and 3Xs) of the Fund's
primary broad-based securities benchmark index (as defined in Form N-
1A).

III. Proceedings to Determine Whether to Approve or Disapprove SR-
NYSEArca-2016-97 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \12\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to

provide comments on the proposed rule change.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\13\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, which requires, among other things, that the rules of a
national securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade,'' and ``to protect investors and the public
interest.'' \14\
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    \13\ Id.
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Under the proposal, BNYM will calculate the Fund's NAV at 12:00
p.m., Eastern time, every day the New York Stock Exchange is open. In
addition, to initiate an order for a creation unit, the Distributor or
its agent must receive an irrevocable order from an authorized
participant, in proper form, no later than 12:00 p.m., Eastern time, in
each case on the date such order is placed in order to receive that
day's NAV. Likewise, with respect to redemptions, an authorized
participant must submit an irrevocable request to redeem shares of the
Fund generally before 12:00 p.m., Eastern time on any business day in
order to receive that day's NAV. The Commission notes the proposal does
not provide any explanation for the early NAV calculation time and
creation and redemption cut-off time. The proposal also does not
explain whether the early NAV calculation time and creation and
redemption cut-off time would have any impact on the trading of the
Shares, including any impact on arbitrage. Accordingly, the Commission
seeks commenters' views on the 12:00 p.m. NAV calculation time and
creation and redemption cut-off time, and on whether the Exchange's
statements relating to the NAV calculation and the creation and
redemption process support a determination that the listing and trading
of the Shares would be consistent with Section 6(b)(5) of the Act,
which, among other things, requires that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, and to protect
investors and the public interest.

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) or any other provision of the Act, or
the rules and regulations thereunder. Although there do not appear to
be any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\15\
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    \15\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Acts Amendments of 1975, Senate Comm.
on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by November 17, 2016. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
December 1, 2016. The Commission asks that commenters address the
sufficiency of the Exchange's statements in support of the proposal,
which are set forth in the Notice,\16\ in addition to any other
comments they may wish to submit about the proposed rule change.
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    \16\ See supra note 3.
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    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-NYSEArca-2016-97 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-NYSEArca-2016-97. 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-NYSEArca-2016-97 and should
be submitted on or before November 17, 2016. Rebuttal comments should
be submitted by December 1, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(57).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-25938 Filed 10-26-16; 8:45 am]
 BILLING CODE 8011-01-P