[Federal Register Volume 84, Number 77 (Monday, April 22, 2019)]
[Notices]
[Pages 16753-16758]
[FR Doc No: 2019-07982]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85656; File No. SR-CboeBZX-2019-023]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing of a Proposed Rule Change Amend Exchange Rule 14.11(c), Index
Fund Shares, To Adopt Generic Listing Standards for Index Fund Shares
Based on an Index of Municipal Bond Securities

April 16, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 3, 2019, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``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 amend Exchange Rule 14.11(c) (``Index Fund
Shares'') to adopt generic listing standards for Index Fund Shares
based on an index of municipal bond securities.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    Rule 14.11(c) permits the Exchange to list a series of Index Fund
Shares based on an index or portfolio of underlying securities.
Currently, Rule 14.11(c) includes generic listing standards for Index
Fund Shares based on an index or portfolio of equity or fixed income
securities or a combination thereof. The Exchange proposes to amend
Rule 14.11(c) to add a new Rule 14.11(c)(4)(B)(ii) to provide
quantitative generic listing standards for Index Fund Shares based on
an index or portfolio of Municipal Securities \3\ that do not meet the
generic listing standards under Rule 14.11(c)(4)(B)(i).\4\ All other
standards not included in Rule 14.11(c)(4)(B)(i) applicable to series
of Index Fund Shares based on an index composed of fixed income
securities will continue to apply to a series of Index Fund Shares
based on an index or portfolio of Municipal Securities listed pursuant
to Rule 14.11(c)(4)(B)(ii).
---------------------------------------------------------------------------

    \3\ The term ``Municipal Securities'' has the definition given
to it in Section 3(a)(29) of the Act.
    \4\ The Exchange notes that this proposal is substantively
identical to a proposal recently submitted by NYSE Arca, Inc. See
Securities Exchange Act Release No. 85170 (February 21, 2019), 84 FR
6451 (February 27, 2019) (SR-NYSEArca-2019-04).
---------------------------------------------------------------------------

    An index of Municipal Securities typically does not meet the
generic listing requirements for Index Fund Shares based on an index of
fixed income securities.\5\ Nonetheless, the Commission has previously
approved proposed rule changes relating to listing and trading on the
Exchange of Index Fund Shares based on an index of Municipal
Securities.\6\ Given the large number of prior approvals by the
Commission, the Exchange now

proposes to adopt generic listing standards for Index Fund Shares based
on an index of Municipal Securities that do not meet the generic
listing standards for Index Fund Shares based on an index of fixed
income securities.
---------------------------------------------------------------------------

    \5\ See Exchange Rule 14.11(c)(4)(A)(ii). Municipal Securities
are typically issued in with individual maturities of relatively
small size, although they generally are constituents of a much
larger municipal bond offering. Therefore, an index of Municipal
Securities will typically be unable to satisfy the requirement that
component fixed income securities that, in the aggregate, account
for at least 75% of the weight of the index each shall have a
minimum principal amount outstanding of $100 million or more.
    \6\ The Exchange notes that the Commission has approved or
published immediately effective filings allowing the listing and
trading of a large number of series of Index Fund Shares based on
Municipal Securities. See Securities Exchange Act Release Nos. 84107
(September 13, 2018), 83 FR 47210 (September 18, 2018) (SR-CboeBZX-
2018-070) (Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To List and Trade Shares of the iShares iBonds
Dec 2025 Term Muni Bond ETF of iShares Trust Under BZX Rule
14.11(c)(4) (Index Fund Shares)); 79381 (November 22, 2016), 81 FR
86044 (November 29, 2016) (SR-BatsBZX-2016-48) (Order Granting
Accelerated Approval of a Proposed Rule Change, as Modified by
Amendments No. 1 and No. 2 Thereto, To List and Trade Shares of the
iShares iBonds Dec 2023 Term Muni Bond ETF and iShares iBonds Dec
2024 Term Muni Bond ETF of the iShares U.S. ETF Trust Pursuant to
BZX Rule 14.11(c)(4); 67985 (October 4, 2012), 77 FR 61804 (October
11, 2012) (SR-NYSEArca-2012-92) (order approving proposed rule
change relating to the listing and trading of iShares 2018 S&P AMT-
Free Municipal Series and iShares 2019 S&P AMT-Free Municipal Series
under NYSE Arca Equities Rule 5.2(j)(3), Commentary .02); 67729
(August 24, 2012), 77 FR 52776 (August 30, 2012) (SR-NYSEArca-2012-
92) (notice of proposed rule change relating to the listing and
trading of iShares 2018 S&P AMT-Free Municipal Series and iShares
2019 S&P AMT-Free Municipal Series under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02); 72523, (July 2, 2014), 79 FR 39016 (July
9, 2014) (SR-NYSEArca-2014-37) (order approving proposed rule change
relating to the listing and trading of iShares 2020 S&P AMT-Free
Municipal Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary.02); 72172 (May 15, 2014), 79 FR 29241 (May 21, 2014)
(SR-NYSEArca-2014-37) (notice of proposed rule change relating to
the listing and trading of iShares 2020 S&P AMT-Free Municipal
Series under NYSE Arca Equities Rule 5.2(j)(3), Commentary.02);
72464 (June 25, 2014), 79 FR 37373 (July 1, 2014) (File No. SR-
NYSEArca-2014-45) (order approving proposed rule change governing
the continued listing and trading of shares of the PowerShares
Insured California Municipal Bond Portfolio, PowerShares Insured
National Municipal Bond Portfolio, and PowerShares Insured New York
Municipal Bond Portfolio); 75468 (July 16, 2015), 80 FR 43500 (July
22, 2015) (SR-NYSEArca-2015-25) (order approving proposed rule
change relating to the listing and trading of iShares iBonds Dec
2021 AMT-Free Muni Bond ETF and iShares iBonds Dec2022 AMT-Free Muni
Bond ETF under NYSE Arca Equities Rule 5.2(j)(3)); 74730 (April 15,
2015), 76 [sic] FR 22234 (April 21, 2015) (notice of proposed rule
change relating to the listing and trading of iShares iBonds Dec
2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022 AMT-Free
Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02); 74730 75376 (July 7, 2015), 80 FR 40113 (July 13, 2015) (SR-
NYSEArca-2015-18) (order approving proposed rule change relating to
the listing and trading of Vanguard Tax-Exempt Bond Index Fund under
NYSE Arca Equities Rule 5.2(j)(3)).
---------------------------------------------------------------------------

    In the Exchange's experience, indices of Municipal Securities are
able to satisfy all of the generic listing requirements applicable to
fixed income indices contained in Rule 14.11(c)(4) except the
requirement that component securities in an index have a minimum
original principal amount outstanding. Specifically, Municipal
Securities are generally issued with individual maturities of
relatively small size, although they generally are constituents of a
much larger municipal bond offering. Therefore, Municipal Securities
are unable to satisfy the rule's requirement that ``at least 75% of the
Fixed Income Securities portion of the weight of the index or portfolio
each shall have a minimum original principal amount outstanding of $100
million or more.'' Notwithstanding the inability of a Municipal
Securities index to meet this aspect of the generic listing standards,
the Commission has previously approved for listing and trading a series
of Index Fund Shares based on such indices where the Exchange has
demonstrated an index is not susceptible to manipulation.\7\
---------------------------------------------------------------------------

    \7\ See supra note 6.
---------------------------------------------------------------------------

    The Exchange would apply existing Rule 14.11(c)(4) and proposed
Rule 14.11(c)(4)(B)(ii) in a ``waterfall'' manner. Specifically, every
series of Index Fund Shares based on an index of fixed income
securities and cash (including an index that contains Municipal
Securities) would initially be evaluated against the generic listing
standards of Rule 14.11(c)(4)(b)(i). If the index underlying a series
of Index Fund Shares satisfied the existing criteria of Rule
14.11(c)(4)(b)(i), the Exchange would proceed with listing the Index
Fund Shares. The Exchange would apply proposed Rule 14.11(c)(4)(B)(ii)
only if: (i) An index did not meet the requirements of Rule
14.11(c)(4)(b)(i); and (ii) such index contained only Municipal
Securities and cash.
    The Exchange believes that if an index of fixed income securities
and cash (including one that contains Municipal Securities) satisfies
the existing requirements of Rule 14.11(c)(4)(B)(i), its constituent
securities are sufficiently liquid to deter manipulation of the index.
Further, the proposed alternative listing standard, which would only be
applicable to an index consisting entirely of Municipal Securities and
cash, includes many requirements that are more stringent than those
applicable to an index of fixed income securities and cash. The
Exchange believes these heightened requirements would deter potential
manipulation of such Municipal Securities indices even though the index
may include securities that have smaller original principal amounts
outstanding.
Comparison of Existing Quantitative Requirements for Fixed Income
Indices vs. Proposed Quantitative Requirements for Municipal Securities
Indices
    Below is a comparison of the existing quantitative requirements for
Index Fund Shares based on an index of fixed income securities versus
the Exchange's proposed alternative quantitative requirements for Index
Fund Shares based on an index of Municipal Securities:

                  Original Principal Amount Outstanding
------------------------------------------------------------------------

------------------------------------------------------------------------
Existing Requirement for       Fixed Income Security components that in
 Fixed Income Securities.       aggregate account for at least 75% of
                                the Fixed Income Securities portion of
                                the weight of the index or portfolio
                                each shall have a minimum original
                                principal amount outstanding of $100
                                million or more.
Proposed Requirement for       Municipal Security components that in
 Municipal Securities.          aggregate account for at least 90% of
                                the Municipal Securities portion of the
                                weight of the index or portfolio each
                                shall have a minimum original principal
                                amount outstanding of at least $5
                                million and have been issued as part of
                                a transaction of at least $20 million.
------------------------------------------------------------------------

    As discussed above, Municipal Securities are typically issued with
individual maturities of relatively small size, although they generally
are constituents of a much larger municipal bond offering. In
recognition of these smaller offering sizes, the Exchange proposes to
reduce the minimum original principal amount outstanding requirement
for component securities to at least $5 million. Further, the Exchange
proposes that qualifying securities must have been issued as part of a
transaction of at least $20 million. Lastly, the Exchange proposes to
increase the percentage weight of an index that must satisfy the
original principal amount outstanding requirement from 75% to 90%.
    The Exchange does not believe that reducing the minimum original
principal amount outstanding requirement for component securities will
make an index more susceptible to manipulation. The Exchange believes
that the requirement that component securities in a fixed income index
have a minimum principal amount outstanding, in concert with the other
requirements of Rule 14.11(c)(4)(B)(i), is to ensure that such index is
sufficiently broad-based in scope as to minimize potential manipulation
of the index.\8\ However, based on empirical analysis, the Exchange
does not believe that an index of Municipal Securities with lower
original principal amounts outstanding is necessarily more susceptible
to manipulation.\9\ In 2016, Blackrock, Inc. analyzed the potential
manipulation of Municipal Securities and found that such manipulation
``may be uneconomical and is unsupported in practice.'' \10\ In
addition, the Exchange believes that its proposal to require that 90%
of the weight of a Municipal Securities index meet the original
principal amount outstanding

requirement (as opposed to 75% for fixed income indices) will further
deter potential manipulation by ensuring that a greater portion of the
index meet this minimum size requirement.
---------------------------------------------------------------------------

    \8\ The Commission approved BZX Rule 14.11(c) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
    \9\ See Letter from Samara Cohen, Managing Director, U.S. Head
of iShares Capital Markets, Joanne Medero, Managing Director,
Government Relations & Public Policy, and Deepa Damre, Managing
Director, Legal & Compliance, BlackRock, Inc., to Brent J. Fields,
Secretary, Commission, dated October 18, 2017 in support of the
Exchange's proposal to facilitate the listing and trading of Index
Fund Shares listed pursuant to NYSE Arca Rule 5.2-E(j)(3) (SR-
NYSEArca-2017-56).
    \10\ See Id. at 3 and accompanying Footnote 11. Blackrock stated
``Our empirical analysis indicated that: (1) Given the over-the-
counter dealer-centric market for municipal bonds, the bid-ask
spread decreases with trade size; therefore, trading many small lots
to move matrix prices is likely to be costly; (2) large trades move
prices significantly and this effect is incorporated into prices
quickly; for manipulation to work by affecting bond prices, the
trades must be large, implying greater dollar cost and more
likelihood of detection even if markets were segmented; (3) while
pricing agents apply matrix pricing techniques to value non-traded
bonds, the effect is likely too small to permit price manipulation
of the corresponding index or ETF; and (4) market participants will
use all intraday data to come up with their own valuations
independently of pricing providers; ultimately, the price of an ETF
at a point in time reflects these estimates in a manner that
balances supply and demand.''
---------------------------------------------------------------------------

    The Exchange notes that the Commission has previously approved the
listing and trading of several series of Index Fund Shares where the
underlying Municipal Securities index required that component
securities representing at least 90% of the weight of the index have a
minimum original principal amount outstanding of at least $5 million
and have been issued as part of a transaction of at least $20
million.\11\
---------------------------------------------------------------------------

    \11\ See, e.g., Securities Exchange Act Release No. 84049
(September 6, 2018), 83 FR 46228 (September 12, 2018) (SR-NYSEArca-
2018-38) (order approving, among other things, revisions to the
continued listing criteria applicable to the iShares New York AMT-
Free Muni Bond ETF).

                 Maximum Weight of Component Securities
------------------------------------------------------------------------

------------------------------------------------------------------------
Existing Requirement for       No component fixed income security
 Fixed Income Securities.       (excluding Treasury Securities and GSE
                                Securities) shall represent more than
                                30% of the Fixed Income Securities
                                portion of the weight of the index or
                                portfolio, and the five most heavily
                                weighted component fixed income
                                securities in the index or portfolio
                                shall not in the aggregate account for
                                more than 65% of the Fixed Income
                                Securities portion of the weight of the
                                index or portfolio.
Proposed Requirement for       No component Municipal Security shall
 Municipal Securities.          represent more than 10% of the Municipal
                                Securities portion of the weight of the
                                index or portfolio, and the five most
                                heavily weighted component Municipal
                                Securities in the index or portfolio
                                shall not in the aggregate account for
                                more than 30% of the Municipal
                                Securities portion of the weight of the
                                index or portfolio.
------------------------------------------------------------------------

    The Exchange proposes to substantially reduce the maximum weight
that any individual Municipal Security, or group of five Municipal
Securities, can have in a Municipal Securities index. The current
generic listing rules for Index Fund Shares based on a fixed income
index permit individual component securities to account for up to 30%
of the weight of such index and the top-five weighted component
securities to account for up to 65% of the weight of such index. The
Exchange proposes to reduce these metrics to 10% for individual
Municipal Securities and 30% for the top-weighted Municipal Securities
in an index.
    The Exchange believes that its proposal will reduce the likelihood
that a Municipal Securities index underlying a series of Index Fund
Shares could be subject to manipulation by ensuring that no individual
Municipal Security, or group of five Municipal Securities, represents
an outsized weight of a Municipal Securities index.

                       Diversification of Issuers
------------------------------------------------------------------------

------------------------------------------------------------------------
Existing Requirement for       An underlying index or portfolio
 Fixed Income Securities.       (excluding one consisting entirely of
                                exempted securities) must include a
                                minimum of 13 non-affiliated issuers.
Proposed Requirement for       An underlying index or portfolio must
 Municipal Securities.          include a minimum of 13 non-affiliated
                                issuers.
------------------------------------------------------------------------

    The current generic listing rules for Index Fund Shares based on an
index of fixed income securities require that such index must include
securities from at least thirteen non-affiliated \12\ issuers. Notably,
the current rules exempt indices consisting entirely of exempted
securities from complying with this diversification requirement.
Municipal Securities are included in the definition of exempted
securities.\13\ Therefore, an index of Municipal Securities that
otherwise met the requirements of Rule 14.11(c)(4) would not be
required to satisfy any minimum issuer diversification requirement.
---------------------------------------------------------------------------

    \12\ Rule 405 under the Securities Act of 1933 defines an
affiliate as a person that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under
common control with such person. Control, for this purpose, is the
possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person, whether
through the ownership of voting securities, by contract, or
otherwise.
    \13\ See Section 3(a)(12) of the Act.
---------------------------------------------------------------------------

    Nonetheless, the Exchange proposes that a Municipal Securities
index be required to include securities from at least 13 non-affiliated
issuers. The Exchange believes that requiring such diversification will
reduce the likelihood that an index can be manipulated by ensuring that
securities from a variety of issuers are represented in an index of
Municipal Securities.

                          Number of Components
------------------------------------------------------------------------

------------------------------------------------------------------------
Existing Requirement for Fixed Income Securities  Thirteen.
Proposed Requirement for Municipal Securities...  Five Hundred.
------------------------------------------------------------------------

    The current generic listing rules for Index Fund Shares based on an
index of fixed income securities do not have an explicit requirement
that an index contain a minimum number of securities. However, given
that such rules require an index to contain securities from at least
thirteen non-affiliated issuers, there is a de facto requirement that
an index of fixed income securities contain at least thirteen component
securities. As described above, a fixed income index comprised entirely
of exempted securities (including Municipal Securities) is not required
to satisfy the issuer diversification test, thereby allowing it to have
no minimum number of component securities.
    The Exchange proposes to require that a Municipal Securities index
contain at least 500 component securities. The Exchange believes that
such requirement will ensure that a Municipal Securities index is
sufficiently broad-based and diversified to make it less susceptible to
manipulation.

    The Exchange proposes that the quantitative requirements described
above would apply to a Municipal Securities index underlying a series
of Index Fund Shares on both an initial and continued basis.
    The Exchange proposes to amend Exchange Rule 14.11(c)(5) to specify
that the Exchange may approve a series of Index Fund Shares for listing
based on a combination of indexes, including an index of Municipal
Securities. To the extent that an index of Municipal Securities is
included in a combination, amended Rule 14.11(c)(5) will specify that
the Municipal Securities index must meet all requirements of Rule
14.11(c)(4)(B)(ii). In addition, amended Rule 14.11(c)(5) will specify
that requirements related to index dissemination and related continued
listing standards will apply to indexes of Municipal Securities. The
Exchange notes that a combination index that includes an index of
Municipal Securities will not be permitted to seek to provide
investment results in a multiple of the direct or inverse performance
of such combination index.
Additional Requirements
    As noted above, the Exchange proposes that existing rules
applicable to Index Fund Shares based on fixed income securities will
continue to apply to any series of Index Fund Shares listed pursuant to
Rule 14.11(c)(4)(B)(ii), including: (i) Index methodology and
calculation; \14\ (ii) dissemination of information; \15\ (iii) initial
shares outstanding; \16\ (iv) hours of trading; \17\ (v) surveillance
procedures; \18\ and (vi) all continued listing requirements under Rule
14.11(c)(9)(B).
---------------------------------------------------------------------------

    \14\ See Rule 14.11(c)(4)(C).
    \15\ See Rule 14.11(c)(6)(A).
    \16\ See Rule 14.11(c)(6)(B).
    \17\ See Rule 14.11(c)(7).
    \18\ See Rule 14.11(c)(6)(C).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities the Act and the rules and regulations thereunder
applicable to the Exchange and, in particular, the requirements of
Section 6(b) of the Act.\19\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \20\
requirements that the rules of an exchange be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \21\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
    \21\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that the proposed rule change
is designed to prevent fraudulent and manipulative acts and practices
in that Index Fund Shares listed pursuant to proposed Exchange Rule
14.11(c)(4)(B)(ii) will be subject to the existing trading
surveillances, administered by FINRA on behalf of the Exchange, which
are designed to detect violations of Exchange rules and applicable
federal securities laws. The Exchange represents that these procedures
are adequate to properly monitor Exchange trading of the Shares in all
trading sessions and to deter and detect violations of Exchange rules
and applicable federal securities laws. FINRA, on behalf of the
Exchange, will communicate as needed regarding trading in the Shares
with other markets that are members of the ISG or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
FINRA also can access data obtained from the MSRB relating to municipal
bond trading activity for surveillance purposes in connection with
trading in the Shares. FINRA, on behalf of the Exchange, is able to
access, as needed, trade information for certain fixed income
securities held by a Fund reported to FINRA's TRACE.
    The Exchange believes that the proposed listing standard will
ensure that indices underlying a series of Index Fund Shares are
sufficiently well-diversified to protect against index manipulation. On
an initial and continuous basis, each index will contain at least 500
component securities. In addition, on an initial and continued basis,
at least 90% of the Municipal Securities portion of the weight of the
index or portfolio each shall have a minimum original principal amount
outstanding of at least $5 million and have been issued as part of a
transaction of at least $20 million. Further, on an initial and
continued basis, no component Municipal Security shall represent more
than 10% of the Municipal Securities portion of the weight of the index
or portfolio, and the five most heavily weighted component Municipal
Securities in an index or portfolio shall not in the aggregate account
for more than 30% of the Municipal Securities portion of the weight of
such index or portfolio. Lastly, on an initial and continued basis, an
underlying index or portfolio must include a minimum of 13 non-
affiliated issuers. The Exchange believes that this significant
diversification and the lack of concentration among constituent
securities provides [sic] a strong degree of protection against index
manipulation.
    In addition, the Exchange represents that Index Fund Shares listed
to the proposed generic listing rule will comply with all other
requirements applicable to Index Fund Shares including, but not limited
to, the applicable rules governing the trading of equity securities,
trading hours, trading halts, surveillance, information barriers and
the Information Circular to Members, as set forth in Exchange rules
applicable to Index Fund Shares.
    The Exchange believes that its proposed amendments to Rule
14.11(c)(5) are consistent with the Act because any index of Municipal
Securities included in a combination index will be required to meet the
requirements of proposed Rule 14.11(c)(4)(B)(ii). In addition, such
index will be required to meet the index dissemination and continued
listing requirements of Rule 14.11(c)(5). Lastly, a combination index
that includes an index of Municipal Securities will not be permitted to
seek to provide investment results in a multiple of the direct or
inverse performance of such combination index.
    As described above, the Exchange notes that the Commission has
previously approved the listing and trading of several series of Index
Fund Shares where the underlying Municipal Securities index required
that component securities representing at least 90% of the weight of
the index have a minimum original principal amount outstanding of at
least $5 million and have been issued as part of a transaction of at
least $20 million. Further, the Exchange notes that the other elements
of the proposed rule are each the same or more restrictive than the
generic listing rules applicable to Index Fund Shares based on an index
of fixed income securities. The Exchange, therefore, believes that
indices underlying a series of Index Fund Shares listed pursuant to the
proposed generic rules will be sufficiently broad-based to deter
potential manipulation.
    The proposed rule change is designed to promote just and equitable
principles

of trade and to protect investors and the public interest. The Exchange
believes that a large amount of information will be publicly available
regarding Index Fund Shares listed pursuant to the proposed rule,
thereby promoting market transparency. As described above, the Intraday
Indicative Value (the ``IIV'') will be widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Exchange's Regular Trading Hours. The current value of an index
underlying a series of Index Fund Shares will be disseminated by one or
more major market data vendors at least once per day. Information
regarding market price and trading volume of the Index Fund Shares will
be continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services, and quotation
and last sale information will be available via the CTA high-speed
line. Prior to the commencement of trading, the Exchange will inform
its Members in an Information Circular of the special characteristics
and risks associated with trading the Index Fund Shares. If the
Exchange becomes aware that the net asset value of a series of Index
Fund Shares (the ``NAV'') is not being disseminated to all market
participants at the same time, it will halt trading in the Index Fund
Shares until such time as the NAV is available to all market
participants. With respect to trading halts, the Exchange may consider
all relevant factors in exercising its discretion to halt or suspend
trading in the Index Fund Shares. Trading also may be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Index Fund Shares inadvisable. If the IIV or the
index values are not being disseminated as required, the Exchange may
halt trading during the day in which the interruption to the
dissemination of the applicable IIV or an index value occurs. If the
interruption to the dissemination of the applicable IIV or an index
value persists past the trading day in which it occurred, the Exchange
will halt trading. Trading in Shares of the Funds will be halted if the
circuit breaker parameters in Exchange Rule 11.18 have been reached or
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Index Fund Shares inadvisable. In
addition, investors will have ready access to information regarding the
IIV, and quotation and last sale information for the Index Fund Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of exchange-traded products based on municipal bond
indexes that will enhance competition among market participants, to the
benefit of investors and the marketplace. The Exchange has in place
surveillance procedures relating to trading in the Index Fund Shares
and may obtain information via ISG from other exchanges that are
members of ISG or with which the Exchange has entered into a
comprehensive surveillance sharing agreement. In addition, investors
will have ready access to information regarding the IIV and quotation
and last sale information for the Index Fund Shares. Trade price and
other information relating to municipal bonds is available through the
MSRB's EMMA system.
    As required under Rule 14.11(c)(4)(C)(i) and (iii), if the index is
maintained by a broker-dealer or fund advisor, the broker-dealer or
fund advisor shall erect and maintain a ``firewall'' around the
personnel who have access to information concerning changes and
adjustments to the index. Further, any advisory committee, supervisory
board, or similar entity that advises a Reporting Authority or that
makes decisions on the index composition, methodology and related
matters, must implement and maintain, or be subject to, procedures
designed to prevent the use and dissemination of material non-public
information regarding the applicable index.
    Further, the index value of a series of Index Fund Shares listed
pursuant to proposed Rule 14.11(c)(4)(B)(ii) will be widely
disseminated by one or more major market data vendors at least once per
day and if the index value does not change during some or all of the
period when trading is occurring on the Exchange, the last official
calculated index value must remain available throughout Exchange
trading hours. In addition, the IIV for the Index Fund Shares will be
disseminated by one or more major market data vendors, updated at least
every 15 seconds during the Exchange's Regular Trading Hours as
required under Rule 14.11(c)(4)(C)(ii).

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. The Exchange notes that the
proposed rule change will facilitate the listing and trading of Index
Fund Shares based on an index of Municipal Securities which will
enhance competition among market participants, to the benefit of
investors and the marketplace.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange 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 protected]. Please include
File Number SR-CboeBZX-2019-023 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-CboeBZX-2019-023. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written

communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
CboeBZX-2019-023, and should be submitted on or before May 13, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-07982 Filed 4-19-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 113 (Tuesday, June 13, 2023)]
[Notices]
[Pages 38580-38582]
[FR Doc No: 2023-12578]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97666; File No. SR-Phlx-2023-23]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 7,
Section 4

June 7, 2023.
    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 June 1, 2023, Nasdaq PHLX LLC (``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 amend Phlx's Pricing Schedule at Options
7, Section 4, ``Multiply Listed Options Fees (Includes options
overlying equities, ETFs, ETNs and indexes which are Multiply Listed)
(Excludes SPY).''
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/phlx/rules, 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
    Phlx proposes to amend its Pricing Schedule at Options 7, Section
4, ``Multiply Listed Options Fees (Includes options overlying equities,
ETFs, ETNs and indexes which are Multiply Listed) (Excludes SPY).''
Specifically, Phlx proposes to amend its Floor Transaction (Open
Outcry) Floor Broker Incentive Program.
    Today, the Exchange offers an incentive program for Floor Brokers
\3\ that is designed to attract order flow to Phlx's trading floor for
execution in open outcry. Today, the Exchange pays Floor Transaction
(Open Outcry) Floor Broker Incentive Program rebates on qualifying
volume at each threshold level per the below schedule.
---------------------------------------------------------------------------

    \3\ The term ``Floor Broker'' means an individual who is
registered with the Exchange for the purpose, while on the Options
Floor, of accepting and handling options orders. See Phlx Options 7,
Section 1(c).

------------------------------------------------------------------------
                                                           Per contract
                  Qualifying contracts                        rebate
------------------------------------------------------------------------
0-5,000,000.............................................           $0.03
5,000,001-10,000,000....................................            0.06
Greater than 10,000,000.................................            0.09
------------------------------------------------------------------------

    By way of example, a Floor Broker that executes floor transactions
in a given month totaling 10,500,000 contracts is paid $0.03 for the
first 5,000,000 floor transaction contracts ($150,000), $0.06 for the
next 5,000,000 floor transaction contracts ($300,000), and $0.09 for
the final 500,000 floor transaction contracts ($45,000) for a total
rebate of $495,000 for that month. Further, as an additional clarifying
example, if a Floor Broker executes a floor transaction in the amount
of 1,000,000 contracts, represents both sides of the floor transaction,
and executes the floor transaction as a crossing transaction pursuant
to Options 8, Section 30(a) for 700,000 of the 1,000,000 contracts,
then trades the remaining 300,000 contracts with the trading crowd, the
Floor Transaction (Open Outcry) Floor Broker Incentive Program rebate
for this transaction will be paid on the qualifying floor transaction
volume of 1,000,000 contracts. The Exchange caps rebates for the Floor
Transaction (Open Outcry) Floor Broker Incentive Program at $1,000,000
per member or member organization in a given month.
    Today, the following floor transactions are not subject to the
rebates offered within the Floor Transaction (Open Outcry) Floor Broker
Incentive Program: (1) Floor QCC Orders, as defined in Options 8,
Section 30(e); \4\ (2) dividend, merger, short stock interest, reversal
and conversion, jelly roll and box spread strategy executions as
defined in this Options 7, Section 4; (3) Firm Floor Options
Transactions Charges for members executing facilitation orders pursuant
to Options 8, Section 30 when such members are trading in their own
proprietary account (including Cabinet Options Transaction Charges);
and (4) Customer-to-Customer transactions.
---------------------------------------------------------------------------

    \4\ Today, Floor QCC Orders are not transacted in open outcry.
The Exchange proposes to include Floor QCC Orders in the list of
exclusions to remind members and member organizations that Floor QCC
Orders will not be paid the Floor Transaction (Open Outcry) Floor
Broker Incentive Program rebate.
---------------------------------------------------------------------------

    At this time, the Exchange proposes to amend the rebates that will
be paid on qualifying volume at each threshold level. The Exchange
proposes to increase the rebate from $0.03 to $0.05 per contract for
qualifying contracts from 1-5,000,000. The Exchange proposes to
increase the rebate from $0.06 to $0.08 per contract for qualifying
contracts from 5,000,001 to 10,000,000. Finally, the Exchange proposes
to increase rebate from $0.09 to $0.11 per contract for qualifying
contracts greater than 10,000,000. The Exchange is not amending
qualifying floor transactions that are subject to the rebates. The
Exchange would make corresponding changes to the example beneath the
rebate table in Options 7, Section 4.
    The Exchange believes that the Floor Transaction (Open Outcry)
Floor Broker Incentive Program will continue to attract greater order
flow to Phlx's trading floor.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \7\
---------------------------------------------------------------------------

    \7\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------

    Likewise, in NetCoalition v. Securities and Exchange Commission \8\
(``NetCoalition'') the D.C. Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\9\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \10\
---------------------------------------------------------------------------

    \8\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \9\ See NetCoalition, at 534-535.
    \10\ Id. at 537.
---------------------------------------------------------------------------

    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \11\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes that these views apply with equal force to the options
markets.
---------------------------------------------------------------------------

    \11\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
---------------------------------------------------------------------------

    The Exchange's proposal to increase the Floor Transaction (Open
Outcry) Floor Broker Incentive Program rebates that will be paid on
qualifying volume at each threshold level ($0.03 to $0.05 per contract
for 1-5,000,000; $0.06 to $0.08 per contract for 5,000,001 to
10,000,000; and $0.09 to $0.11 per contract for greater than
10,000,000) is reasonable because the Exchange believes that these
rebates will serve to continue to incentivize Floor Brokers to execute
a greater number of orders in the Exchange's trading crowd. Any market
participant may send an order to a Phlx Floor Broker for execution on
Phlx's trading floor. The Exchange notes that other Phlx floor members
\12\ may interact with orders exposed in open outcry on the Exchange's
trading floor.
---------------------------------------------------------------------------

    \12\ Floor members include all members who have acquired a
permit to trade on Phlx's trading floor.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the Floor Transaction (Open
Outcry) Floor Broker Incentive Program rebates that will be paid on
qualifying volume at each threshold level ($0.03 to $0.05 per contract
for 1-5,000,000; $0.06 to $0.08 per contract for 5,000,001 to
10,000,000; and $0.09 to $0.11 per contract for greater than
10,000,000) is equitable and not unfairly discriminatory as the
Exchange would uniformly calculate all qualifying volume and uniformly
pay rebates associated with the Floor Transaction (Open Outcry) Floor
Broker Incentive Program up to $1,000,000 in rebates a month.

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.
Inter-Market Competition
    The proposal does not impose an undue burden on inter-market
competition. The Exchange believes its proposal remains competitive
with

other options markets and will offer market participants with another
choice of where to transact options. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited.
Intra-Market Competition
    The proposed amendments do not impose an undue burden on intra-
market competition. In terms of intra-market competition, the Exchange
does not believe that its proposals will place any category of market
participant at a competitive disadvantage. The proposed Floor Broker
Incentive Program rebates should encourage Floor Brokers to send
additional order flow to Phlx to obtain rebates and lower their costs.
Any market participant may send an order to a Phlx Floor Broker for
execution on Phlx's trading floor. The Exchange believes that the
additional liquidity will enhance the quality of the Exchange's market
and increase certain trading opportunities on the Exchange's trading
floor for floor members.
    The Exchange's proposal to increase the Floor Transaction (Open
Outcry) Floor Broker Incentive Program rebates that will be paid on
qualifying volume at each threshold level ($0.03 to $0.05 per contract
for 1-5,000,000; $0.06 to $0.08 per contract for 5,000,001 to
10,000,000; and $0.09 to $0.11 per contract for greater than
10,000,000) does not impose an undue burden on competition as the
Exchange would uniformly calculate all qualifying volume and uniformly
pay rebates associated with the Floor Transaction (Open Outcry) Floor
Broker Incentive Program up to $1,000,000 in rebates a month.

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.\13\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or 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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-Phlx-2023-23 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-Phlx-2023-23. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-Phlx-2023-23 and should be
submitted on or before July 5, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-12578 Filed 6-12-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Notices]
[Pages 22486-22487]
[FR Doc No: 2019-10239]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER19-1819-000]

Broad River Solar, LLC; Supplemental Notice That Initial Market-
Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Broad River Solar, LLC's application for

market-based rate authority, with an accompanying rate tariff, noting
that such application includes a request for blanket authorization,
under 18 CFR part 34, of future issuances of securities and assumptions
of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is June 3, 2019.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
5 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the website that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
    For assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.

    Dated: May 13, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-10239 Filed 5-16-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: March 21, 2007 (Volume 72, Number 54)]
[Notices]
[Page 13317-13319]
[DOCID:fr21mr07-96]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55455; File No. SR-OPRA-2007-02]

Options Price Reporting Authority; Notice of Filing and Immediate
Effectiveness of Proposed Amendment To Revise OPRA's Fee Schedule and
its ``Policies With Respect to Device-Based Fees''

March 13, 2007.
    Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that
on February 23, 2007 the Options Price Reporting Authority (``OPRA'')
submitted to the Securities and Exchange Commission (``Commission'') an
amendment to the Plan for Reporting of Consolidated Options Last Sale
Reports and Quotation Information (``OPRA Plan'').\3\ Specifically,
OPRA proposes to revise its Fee Schedule and its ``Policies with
Respect to Device-Based Fees.''
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The OPRA Plan is a national market system plan approved by
the Commission pursuant to Section 11A of the Act and Rule 608
thereunder (formerly Rule 11Aa3-2). See Securities Exchange Act
Release No. 17638 (March 18, 1981), 22 S.E.C. Docket 484 (March 31,
1981). The full text of the OPRA Plan is available at http://www.opradata.com
.

    The OPRA Plan provides for the collection and dissemination of
last sale and quotation information on options that are traded on
the participant exchanges. The six participants to the OPRA Plan are
the American Stock Exchange LLC, the Boston Stock Exchange, Inc.,
the Chicago Board Options Exchange, Incorporated, the International
Securities Exchange, Inc., the NYSE Arca, Inc., and the Philadelphia
Stock Exchange, Inc.
---------------------------------------------------------------------------

I. Description and Purpose of the Amendment

A. Changes in the Fee Schedule

    OPRA states that the purpose of the proposed amendment to its Fee
Schedule is to eliminate language that became obsolete on January 1,
2007, and to provide a simplified and unified presentation of its Fee
Schedule. None of the proposed revisions would change the amount of any
of OPRA's fees.
    Since January 1, 2007, OPRA has had in place a single $20.00 ``per
device'' fee for its Basic Service (consisting of all OPRA Information
except Information with respect to foreign currency options) and a
single $5.00 per device fee for its FCO Service (consisting of OPRA
Information with respect to foreign currency options).\4\ As a result,

OPRA proposes to delete two tables in its Fee Schedule and replace them
with a single entry setting forth these device-based fees.
---------------------------------------------------------------------------

    \4\ The device-based fees that became effective on January 1,
2007 were first proposed in File No. SR-OPRA-2004-01, which became
effective upon filing on February 25, 2004. See Securities Exchange
Act Release No. 49382 (March 9, 2004), 69 FR 12377 (March 16, 2004).
In that filing, OPRA amended its Fee Schedule to make incremental
changes, over a four year period from 2004 through 2007, to its
device-based fees to eliminate all distinctions in these fees based
on a subscriber's status as a member or nonmember of an exchange
that is a party to the OPRA Plan or on the subscriber's total number
of OPRA-enabled devices.
---------------------------------------------------------------------------

    As shown in Exhibit I(B) to the proposed rule change, OPRA's Fee
Schedule had two parts. The first part was called ``Professional
Subscriber Fee Schedule,'' and it contained two tables listing device-
based fees, one for OPRA's Basic Service and one for OPRA's FCO
Service, and described OPRA's alternative Enterprise Rate fees for
access to the Basic Service. The second part was called ``Fee
Schedule,'' which set out OPRA's other fees, including fees applicable
to Vendors as well as fees that were applicable to some Professional
Subscribers.\5\ The purpose of the two-part Fee Schedule was to
accommodate the tables of device-based fees because they did not fit
within the format of the second part of the Fee Schedule.
---------------------------------------------------------------------------

    \5\ These are the Subscriber Indirect Access Fee, the Direct
Access Fee and the Voice-Synthesized Market Data Service Fee.
---------------------------------------------------------------------------

    With the elimination of the device-based fee tables and their
replacement with a single chart setting forth per device fees for the
Basic Service and the FCO Service, the first part of the OPRA Fee
Schedule can be deleted in its entirety, and the line in the second
part of the Fee Schedule that formerly cross-referenced the device-
based fees in the first part can be replaced with a line that states
the actual device-based fees themselves.
    A secondary purpose of the proposed amendment is to correct the
description in the Fee Schedule of the ``Direct Access Fee'' to state
that it is applicable to Professional Subscribers, as well as to
Vendors, that receive OPRA Data directly from OPRA's processor.\6\
---------------------------------------------------------------------------

    \6\ This fee is accurately described in OPRA's ``Direct Circuit
Connection Rider,'' which a Professional Subscriber must sign in
order to receive OPRA Data directly from OPRA's processor. See
Securities Exchange Act Release No. 53753 (May 2, 2006), 71 FR 27296
(May 10, 2006) (SR-OPRA-2006-01).
---------------------------------------------------------------------------

    The remaining changes to the Fee Schedule are to accommodate the
re-organization of the Fee Schedule and other non-substantive purposes.
Specifically, the description of the terms of the ``30-day free trial''
for the Basic Service will be moved from the old first part of the Fee
Schedule and incorporated into a new footnote 3. The description of the
Enterprise Rate alternative fee for the Basic Service will be moved
from the old first part of the Fee Schedule and incorporated into a new
footnote 4.\7\ The footnote currently shown as the first footnote 1 \8\
in the Fee Schedule is being deleted because OPRA believes that with
the simplified and unified presentation of the Fee Schedule it is no
longer necessary to state specifically, with respect to device-based
fees, that other fees may also be applicable for certain Professional
Subscribers.
---------------------------------------------------------------------------

    \7\ OPRA also made incremental changes, over the four year
period from 2004 until 2007, to its Enterprise Rate fees. See supra,
note 4. Language that described the Enterprise Rate fees that were
in effect before January 1, 2007 is now being eliminated because it
is obsolete.
    \8\ OPRA's Fee Schedule currently shows two footnotes numbered
``1.'' The numbering of the footnotes is being corrected in the
revised Fee Schedule.
---------------------------------------------------------------------------

    The text of the footnote currently shown as the second footnote 1
relates to the Enterprise Rate fee and is being incorporated in the new
Enterprise Rate footnote, footnote 4. New footnote 2 is language that
is also in the first paragraph of the ``Policies with Respect to
Device-Based Fees'' and is intended to emphasize that Professional
Subscribers may count ``User IDs'' as a surrogate for ``devices.''
Footnote 6 is being deleted because its language was identical to that
of footnote 4, which will be renumbered as new footnote 6.

B. Changes in the Policies With Respect to Device-Based Fees

    The changes in the ``Policies with Respect to Device-Based Fees''
are also for housekeeping purposes. The purpose of the change in the
second paragraph of the Policies is to conform a reference to OPRA's
Fee Schedule to the elimination of the first part of the Fee Schedule
itself. The purpose of the changes in the subsection with the revised
subtitle ``Contracting on behalf of Affiliates'' is to delete material
that no longer has any meaning after OPRA's change to a flat per-device
fee schedule as of January 1, 2007.

II. Implementation of the OPRA Plan Amendment

    Pursuant to paragraphs (b)(3) of Rule 608 under the Act,\9\ OPRA
designates this amendment as concerned solely with the administration
of the OPRA Plan and/or as involving solely technical or ministerial
matters, thereby qualifying for effectiveness upon filing.
---------------------------------------------------------------------------

    \9\ 17 CFR 242.608(b)(3).
---------------------------------------------------------------------------

    The Commission may summarily abrogate the amendment within sixty
days of its filing and require refiling and approval of the amendment
by Commission order pursuant to Rule 608(b)(2) under the Act \10\ if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors and the
maintenance of fair and orderly markets, to remove impediments to, and
perfect the mechanisms of, a national market system, or otherwise in
furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \10\ 17 CFR 242.608(b)(2).
---------------------------------------------------------------------------

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed OPRA
Plan amendment 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 No. SR-OPRA-2007-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-OPRA-2007-02. 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 plan amendment that
are filed with the Commission, and all written communications relating
to the proposed plan amendment 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. Copies of such
filing also will be available for inspection and copying at the
principal office of OPRA. 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-OPRA-2007-02 and should be submitted on or before April
11, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(29).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-5087 Filed 3-20-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Notices]
[Pages 18622-18623]
[FR Doc No: 2011-7844]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Submission Deadline for Schedule Information for O'Hare
International Airport, John F. Kennedy International Airport, and
Newark Liberty International Airport for the Winter 2011-2012
Scheduling Season

AGENCY: Department of Transportation, Federal Aviation Administration
(FAA).

ACTION: Notice of submission deadline.

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

SUMMARY: Under this notice, the FAA announces the submission deadline
of May 19, 2011, for Winter 2011-2012 flight schedules at Chicago's
O'Hare International Airport (ORD), New York's John F. Kennedy
International Airport (JFK), and Newark Liberty International Airport
(EWR) in accordance with the International Air Transport Association
(IATA) Worldwide Scheduling Guidelines. The deadline coincides with the
schedule submission deadline for the IATA Schedules Conference for the
Winter 2011-2012 scheduling season.

DATES: Schedules must be submitted no later than May 19, 2011.

ADDRESSES: Schedules may be submitted by mail to the Slot
Administration Office, AGC-200, Office of the Chief Counsel, 800
Independence Ave., SW., Washington, DC 20591; facsimile:<PHONE_NUMBER>;
or by e-mail to<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT: Robert Hawks, Office of the Chief
Counsel, Federal Aviation Administration, 800 Independence Avenue, SW.,
Washington, DC 20591; telephone number:<PHONE_NUMBER>; fax number: 202-
267-7971; e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The FAA has designated ORD as an IATA Level
2, Schedules Facilitated Airport, and JFK and EWR as Level 3,
Coordinated Airports. Scheduled operations at JFK and EWR are limited
by the FAA

Orders, the extension to which are published in today's Federal
Register, until the FAA publishes a final Congestion Management Rule
for LaGuardia Airport, John F. Kennedy International Airport, and
Newark Liberty International Airport (RIN 2120-AJ89).
    The FAA is primarily concerned about planned passenger and cargo
operations during peak hours but carriers may submit schedule plans for
the entire day. At ORD, the peak hours are 7 a.m. to 9 p.m. Central
Time (1300-0300 UTC) and at EWR and JFK from 6 a.m. to 11 p.m. Eastern
Time (1100-0400 UTC). Carriers should submit schedule information in
sufficient detail including, at minimum, the operating carrier, flight
number, scheduled time of operation, frequency, and effective dates.
IATA standard schedule information format and data elements (Standard
Schedules Information Manual) may be used.
    The U.S. winter scheduling season for these airports is from
October 30, 2011, through March 24, 2012, in recognition of the IATA
scheduling season dates. The FAA understands there may be differences
in schedule times due to different U.S. daylight saving time dates, and
these will be accommodated to the extent possible.

    Issued in Washington, DC, on March 28, 2011.
Rebecca B. MacPherson,
Assistant Chief Counsel for Regulations.
[FR Doc. 2011-7844 Filed 4-1-11; 8:45 am]
BILLING CODE 4910-13-P