[Federal Register Volume 81, Number 158 (Tuesday, August 16, 2016)]
[Notices]
[Pages 54572-54573]
[FR Doc No: 2016-19472]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 3452-016]

Erie Boulevard Hydropower, L.P; Notice of Intent To File License
Application, Filing of Pre-Application Document, Approving Use of the
Traditional Licensing Process

    a. Type of Application: Notice of Intent To File License
Application and Request To Use the Traditional Licensing Process.
    b. Project No.: P-3452-016.
    c. Date filed: June 28, 2016.
    d. Submitted by: Erie Boulevard Hydropower, L.P.
    e. Name of Project: Oak Orchard Hydroelectric Project.
    f. Location: on the New York State Barge Canal and Oak Orchard
Creek in the village of Medina in the town of Ridgeway, Orleans County,
New York. No federal lands are occupied by the project works or located
within the project boundary.
    g. Filed Pursuant to: 18 CFR 5.3 of the Commission's regulations.
    h. Potential Applicant Contact: Steven Murphy, Manager, Licensing,
Brookfield Renewable, 33 West 1st Street South, Fulton, New York 13069,
Phone:<PHONE_NUMBER>; Email<EMAIL_ADDRESS>or
Jon Elmer, Director of Operations, Brookfield Renewable, 800 Starbuck
Ave., Suite 201, Watertown, New York 13601, Phone:<PHONE_NUMBER>,
Email<EMAIL_ADDRESS>    i. FERC Contact: Brandi Sangunett, Phone:<PHONE_NUMBER>, Email:
<EMAIL_ADDRESS>    j. Erie Boulevard Hydropower, L.P filed its request to use the
Traditional Licensing Process on June 28, 2016. Erie Boulevard
Hydropower, L.P provided public notice of its request on June 26, 2016.
In a letter dated August 10, 2016, the Director of the Division of
Hydropower Licensing approved Erie Boulevard Hydropower, L.P.'s request
to use the Traditional Licensing Process.
    k. With this notice, we are initiating informal consultation with
the U.S. Fish and Wildlife Service and/or NOAA Fisheries under section
7 of the Endangered Species Act and the joint agency regulations
thereunder at 50 CFR, Part 402; and NOAA Fisheries under section 305(b)
of the Magnuson-Stevens Fishery Conservation and Management Act and
implementing regulations at 50 CFR 600.920. We are also initiating
consultation with the New York State Historic Preservation Officer, as
required by section 106, National Historic Preservation Act, and the
implementing regulations of the Advisory Council on Historic
Preservation at 36 CFR 800.2.
    l. With this notice, we are designating Erie Boulevard Hydropower,
L.P as the Commission's non-federal representative for carrying out
informal consultation pursuant to section 7 of the Endangered Species
Act and section 305(b) of the Magnuson-Stevens Fishery Conservation and
Management Act; and consultation pursuant to section 106 of the
National Historic Preservation Act.
    m. Erie Boulevard Hydropower, L.P filed a Pre-Application Document
(PAD; including a proposed process plan and schedule) that also serves
as the draft license application, with the Commission, pursuant to 18
CFR 5.6 of the Commission's regulations.
    n. A copy of the PAD/DLA is available for review at the Commission
in the Public Reference Room or may be viewed on the Commission's Web
site (http://www.ferc.gov), using the ``eLibrary'' link. Enter the
docket number, excluding the last three digits in the docket number
field to access the document. For assistance, contact FERC Online
Support at<EMAIL_ADDRESS>(866) 208-3676 (toll free), or
(202) 502-8659 (TTY). A copy is also available for

inspection and reproduction at the address in paragraph h.
    o. The licensee states its unequivocal intent to submit an
application for a new license for Project No. 3452-016. Pursuant to 18
CFR 16.8, 16.9, and 16.10 each application for a new license and any
competing license applications must be filed with the Commission at
least 24 months prior to the expiration of the existing license. All
applications for license for this project must be filed by June 30,
2019.
    p. Register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filing and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.

    Dated: August 10, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-19472 Filed 8-15-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 51 (Tuesday, March 17, 2015)]
[Notices]
[Pages 13940-13943]
[FR Doc No: 2015-06012]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74482; File No. SR-FINRA-2014-050]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc; Notice of Filing of Amendment No. 1 and Order Granting
Accelerated Approval of a Proposed Rule Change, as Amended, To Require
a Member To Identify Transactions With a Non-Member Affiliate and To
Change How FINRA Disseminates a Subset of Such Transactions

March 11, 2015

I. Introduction

    On November 21, 2014, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') 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
amend the FINRA Rule 6700 Series (Trade Reporting and Compliance Engine
(TRACE)): (1) To add a new contra-party type to be used in TRACE
reports to identify a transaction with a non-member affiliate, and (2)
to require a firm to identify when a transaction with a non-member
affiliate meets specified conditions, so that FINRA can suppress
dissemination of such trade. The proposed rule change was published for
comment in the Federal Register on December 11, 2014, and the comment
period expired on January 2, 2015.\3\ The Commission received two
comments on the proposal.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 73762 (December 5,
2015), 79 FR 73670 (December 11, 2015) (``Notice of Original
Proposal'').
    \4\ See Letters to the Commission from Sean C. Davy, Managing
Director, Securities Industry and Financial Markets Association,
dated December 23, 2014 (``SIFMA Letter'') and Kyle C. Wooten,
Deputy Director--Compliance and Regulatory, Thomson Reuters, dated
January 2, 2015 (``Thomson Reuters Letter'').
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    On January 14, 2015, FINRA granted the Commission an extension of
time to act on the proposal until March 11, 2015. On February 24, 2015,
FINRA filed Amendment No. 1 with the Commission to respond to the
comment letters and to propose modifications and clarifications to its
proposal.\5\ The Commission is publishing this notice and order to
solicit comments on Amendment No. 1 and to approve the proposed rule
change, as modified by Amendment No. 1, on an accelerated basis.
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    \5\ See FINRA Response to Comments, dated February 24, 2015
(``FINRA Response Letter''). The FINRA Response Letter is included
in the public comment file for SR-FINRA-2014-050.
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II. Description of the Proposal

    FINRA has proposed to amend the TRACE rules 6700 Series: (1) To add
a new contra-party type to be used in TRACE reports to identify a
transaction with a non-member affiliate, and (2) to require a firm to
identify when a transaction with a non-member affiliate meets specified
conditions, so that FINRA can suppress dissemination of such trade.
    FINRA Rule 6730 (Transaction Reporting) sets forth the requirements
applicable to members for reporting transactions in TRACE-Eligible
Securities. Rule 6730(c) (Transaction Information To Be Reported)
describes the items of information that must be included in a TRACE
trade report. Among other things, a member must identify the other side
(i.e., contra-party or counterparty) for each transaction.\6\ Where the
contra-party is a member, the reporting member must provide the contra-
party's designated Market Participant ID (``MPID'') in the trade
report. All other contra-parties (including non-member affiliates) can
be identified only as a ``customer'' when reporting the transaction to
TRACE.
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    \6\ FINRA Rule 6730(c)(6) provides that each TRACE trade report
shall contain the contra-party's identifier.
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    FINRA has proposed to amend Rule 6730 to introduce a new contra-
party type to identify a non-member affiliate of the member reporting
the trade, and to disseminate publicly this contra-party identifier.\7\
Currently, when a member engages in a transaction with a non-member
affiliate, that transaction is reported by the member as a trade with a
customer.\8\ Thus, the proposal would provide FINRA and market
participants with additional identifying information regarding the
contra-party in the case of a member trade with a non-member
affiliate.\9\
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    \7\ The proposed rule change would define ``non-member
affiliate'' in Rule 6710 as a non-member entity that controls, is
controlled by, or is under common control with a member. For the
purposes of this definition, ``control,'' along with any derivative
thereof, means legal, beneficial, or equitable ownership, directly
or indirectly, of 25 percent or more of the capital stock (or other
ownership interest, if not a corporation) of any entity ordinarily
having voting rights. The term ``common control'' means the same
natural person or entity controls two or more entities.
    \8\ FINRA's Response Letter indicated that a member may conduct
a periodic assessment of its affiliate relationships to determine
whether a relationship qualifies for non-member affiliate
identification requirements. See FINRA Response Letter at 5.
    \9\ The proposal would not change the way that a member reports
a trade with an affiliate that also is a member; the reporting
member would continue to identify the contra-party by MPID.
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    FINRA also proposed to require members to identify a narrow subset
of transactions with non-member affiliates. Specifically, a member
would need to apply a ``Suppression Indicator'' to a transaction
between itself and a non-member affiliate where: (1) Each party is
trading for its own account, and (2) the transaction with the non-
member affiliate occurs within the same day, at the same price, and in
the same security as a transaction engaged in by the member with a
different counterparty (``Suppression Criteria''). Identification of
these transactions by members would enable FINRA to suppress the
transactions from dissemination on the tape, as FINRA believes that
these transactions are not economically distinct from the disseminated
transaction between the member and the other contra-party to the trade.
    FINRA would suppress dissemination only where a member purchases or
sells a security and then, within the same trading day, engages in a
back-to-back trade with its non-member affiliate in the same security
at the same price.\10\ Because the transaction between the member and
its non-member affiliate represents a change in beneficial ownership
between different legal entities, it is a reportable transaction and is
publicly disseminated under the current rule.
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    \10\ In FINRA's Response Letter, it clarified that, when a
member and a non-member affiliate enter into a transaction in a
TRACE-eligible security and do not initially include the Suppression
Indicator, but meet the Suppression Criteria during the day, the
member would not be required to correct the trade report to include
the Suppression Indicator. However, if the Suppression Indicator is
included but ultimately the transaction does not meet the
Suppression Criteria, the member must correct the prior trade report
and remove the Suppression Indicator. See FINRA Response Letter at
4-5.
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Implementation Schedule
    FINRA stated in the Notice of Original Proposal that it would
announce the implementation date of the proposed rule change in a
Regulatory Notice to be published no later than 60 days following
Commission approval, and that the implementation date would be no later
than 90 days following publication of the Regulatory Notice announcing
Commission approval.
    In Amendment No. 1, FINRA revised its implementation schedule in
response to commenters' concerns. FINRA stated that it would announce
the implementation date in a Regulatory Notice to be published no later
than 120 days following Commission approval, and the implementation
date would be no sooner than 120 days, and no later than 270 days,
following publication of the Regulatory Notice.\11\
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    \11\ See FINRA Response Letter at 5.
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III. Summary of Comments, FINRA's Response, and Proposed Modifications
and Clarifications in Amendment No. 1

    As noted above, the Commission received two comment letters
concerning the proposal.\12\ Although both commenters were generally
supportive of FINRA's goal to improve the quality of information
reported to and disseminated by TRACE, one commenter supported the
proposed requirement to identify and suppress back-to-back trades done
with a non-member affiliate on the same day for the same price and in
the same security \13\ while the other opposed it.\14\
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    \12\ See supra note 4.
    \13\ See SIFMA Letter at 1.
    \14\ See Thomson Reuters Letter at 3.
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    The supporting comment letter acknowledged that continued
dissemination of transactions that meet the Suppression Criteria would
be

undesirable, but asked that FINRA permit members to check for affiliate
status at specific or periodic points in time, because the level of
ownership interest in an affiliate is subject to change over time.\15\
This commenter requested that FINRA better align and coordinate
reporting changes both internally and with the MSRB. Coordination was
requested to reduce the burden on updating technology and compliance
processes by packaging potential changes together, thereby alleviating
multiple changes at different times in the same year.\16\ This same
commenter requested that FINRA and the MSRB work more closely to
coordinate and use similar approaches and methodologies for trade
reporting that would lower costs of implementation and maintenance.\17\
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    \15\ See SIFMA Letter at 2.
    \16\ See id.
    \17\ See id.
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    The other commenter was opposed to the proposal's requirement to
identify and suppress back-to-back trades done with a non-member
affiliate.\18\ This commenter believed that the effort and cost to
implement the change would be unduly burdensome.\19\
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    \18\ See Thomson Reuters Letter at 3.
    \19\ See id.
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    Both commenters requested an extension in the implementation
timeline of four \20\ to six \21\ months for technological
implementation. One commenter requested the additional time to provide
sufficient time for implementation and to be less disruptive to the
technology budgets, plans, and priorities for 2015.\22\ The commenter
stated that the proposed timeframe was ``too aggressive'' and would
``add to what already is a collective strain on industry technology and
compliance resources and subject matter expertise.'' \23\
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    \20\ See SIFMA Letter at 1 (requesting an implementation period
of four to five months).
    \21\ See Thomson Reuters Letter at 2 (requesting an
implementation period of ``not less than six months. . .'').
    \22\ See Thomson Reuters Letter at 2.
    \23\ Id.
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FINRA's Response
    In response to these comments concerning the implementation and
application of the proposed rule change, FINRA filed Amendment No.
1.\24\ FINRA extended the time period for implementation, as described
above, and provided guidance on classifying an entity as a non-member
affiliate. FINRA also reaffirmed that it would ``continue to coordinate
with other regulators, where practicable.'' \25\
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    \24\ See supra note 5.
    \25\ FINRA Response Letter at note 7.
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    In addition, FINRA agreed that there are instances where including
the Suppression Indicator would cause operational difficulties.
Therefore, FINRA clarified that, when a member and a non-member
affiliate enter into a transaction in a TRACE-Eligible Security and do
not initially include the Suppression Indicator but meet the
Suppression Criteria during the day, the member would not be required
to correct the trade report to include the Suppression Indicator.\26\
However, if the Suppression Indicator is included but ultimately the
transaction does not meet the Suppression Criteria, the member must
correct the prior trade report and remove the Suppression
Indicator.\27\
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    \26\ See FINRA Response Letter at 4-5 (stating that ``where a
member does not append the non-member affiliate--principal
transaction indicator to a trade report reflecting a transaction
with a non-member affiliate that ultimately proved to have been the
initial leg of a same day, same price trade with another contra-
party, the member would not be required to correct the prior trade
report solely for the purpose of appending the indicator so long as
the member did not reasonably expect (at the time of the initial
trade report) to engage in a subsequent same day, same price
transaction in the same security with another contra-party'').
    \27\ See FINRA Response Letter at 5.
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    FINRA indicated that a member may conduct a periodic assessment of
its affiliate relationships to determine whether a relationship
qualifies for non-member affiliate identification requirements. The
member may conduct a periodic assessment, no less than annually, unless
the member has undergone an organizational or operational restructuring
that would likely impact its prior identification of non-member
affiliate relationships.\28\
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    \28\ See id.
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2014-050 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2014-050. 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 will also be available
for inspection and copying at the principal office of FINRA. 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 publicly available. All
submissions should refer to File Number SR-FINRA-2014-050 and should be
submitted on or before April 7, 2015.

V. Commission Findings

    After carefully considering the proposed rule change, the comments
submitted, and FINRA's response to the comments and Amendment No. 1,
the Commission finds that the proposed rule change, as modified by
Amendment No. 1, is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
association.\29\ In particular, the Commission finds that the proposed
rule change, as modified by Amendment No. 1, is consistent with Section
15A(b)(6) of the Act,\30\ which requires, among other things, that
FINRA rules be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and, in
general, to protect investors and the public interest.
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    \29\ In approving this proposed rule change, the Commission has
considered the proposed rule change's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \30\ 15 U.S.C. 78o-3(b)(6).
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    The proposal requires a reporting member to include a new ``non-
member affiliate'' identifier in the reports of a transaction in a
TRACE-Eligible Security, and to identify a narrow subset

of such transactions that meet the Suppression Criteria. FINRA stated
that this additional information would facilitate a more effective
surveillance program and improve post-trade transparency. The
Commission believes that these new requirements are reasonably designed
to carry out these objectives and are therefore consistent with the
Act. Furthermore, the Commission does not believe that commenters
raised any issue that would preclude approval of this proposal, and
that FINRA reasonably responded to the comments in Amendment No. 1.

VI. Accelerated Approval

    The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\31\ for approving the proposed rule change, as modified by
Amendment No. 1 thereto, prior to the 30th day after publication of
Amendment No. 1 in the Federal Register. Amendment No. 1 responds to
the specific issue regarding the implementation timeframe raised by
both comment letters. Furthermore, Amendment No. 1 clarifies when the
Suppression Indicator should be included as well as when to determine
non-member affiliate status. The Commission notes that the rest of the
proposed rule change is not being amended and was subject to a full
notice-and-comment period. These revisions add clarity to the proposal
and do not raise any novel regulatory concerns. Accordingly, the
Commission finds that good cause exists to approve the proposal, as
modified by Amendment No. 1, on an accelerated basis.
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    \31\ 15 U.S.C. 78s(b)(2).
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VII. Conclusion

    IT IS THEREFORE ORDERED pursuant to Section 19(b)(2) of the Act
\32\ that the proposed rule change (SR-FINRA-2014-050), as modified by
Amendment No. 1, be and hereby is approved on an accelerated basis.
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    \32\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-06012 Filed 3-16-15; 8:45 am]
 BILLING CODE 8011-01-P