UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on April 25, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2001-10027

________________________________________________________________________
_________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Application of ATA AIRLINES, INC. filed 3/23/05 for:

XX Renewal of exemption for two years under 49 U.S.C. 40109 to provide
the following service:

Scheduled foreign air transportation of persons, property and mail
between the terminal point Chicago (Midway), Illinois and the terminal
point Guadalajara, Mexico.

Applicant rep:  Brian T. Hunt<PHONE_NUMBER>    DOT Analyst:  Thuy H.
Cooper<PHONE_NUMBER>

D I S P O S I T I O N

XX  Granted, subject to conditions  (see below)

The above action was effective when taken: April 25, 2005, through April
25, 2007.

Action taken by:   Paul L. Gretch, Director

		      Office of International Aviation

XX  The authority granted is consistent with the aviation agreement
between the United States and Mexico.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:

	XX   Holder’s certificates of public convenience and necessity

	XX   Standard Exemption Conditions (attached)

________________________________________________________________________
________________________________________

Conditions:   The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2.

________________________________________________________________________
_____________

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that

(1) our action was consistent with Department policy; (2) grant of the
exemption authority was consistent with the public interest; and (3)
grant of the authority would not constitute a major regulatory action
under the Energy Policy and Conservation Act of 1975.  To the extent not
granted, we denied all requests in the referenced Docket.  We may amend,
modify, or revoke the authority granted in this Notice at any time
without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp"
http://dms.dot.gov//reports/reports_aviation.asp

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544.
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

05/2004

 PAGE

 PAGE   2


Posey County Wind Rose Analysis  2001 Wind Speed and Wind Direction on 4 Highest 8 hour Ozone Days Maximum 8 hour ozone concentration of 79 ppb Maximum 8 hour ozone concentration of 79 ppb Maximum 8 hour ozone concentration of 80 ppb Maximum 8 hour Ozone concentration of 80 ppb


[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35405-35406]
[FR Doc No: 2016-12890]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77931; File No. SR-ISEMercury-2016-07]

Self-Regulatory Organizations; ISE Mercury, LLC; Order Approving
Proposed Rule Change Related to Market Wide Risk Protection

May 26, 2016.

I. Introduction

    On March 29, 2016, ISE Mercury, LLC (the ``Exchange'' or ``ISE
Mercury'') 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 introduce new activity-based risk protection
functionality. The proposed rule change was published for comment in
the Federal Register on April 14, 2016.\3\ No substantive comment
letters were received in response to this proposal.\4\ This order
approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 77569 (April 8,
2016), 81 FR 22140 (``Notice'').
    \4\ The Commission received one anonymous comment letter that
read ``[g]ood.'' See Letter from Anonymous, dated May 3, 2016.
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposed to introduce two activity-based risk
protection measures that will be mandatory for all members: (1) The
``Order Entry Rate Protection,'' which prevents members from entering
orders at a rate that exceeds predefined thresholds,\5\ and (2) the
``Order Execution Rate Protection,'' which prevents members from
executing orders at a rate that exceeds their predefined risk settings
(together, ``Market Wide Risk Protection''). The Exchange will announce
the implementation date of the proposed rule in a circular to be
distributed to members prior to implementation.\6\
---------------------------------------------------------------------------

    \5\ The Exchange stated that it will initiate the Order Entry
Rate Protection pre-open, but in a manner that allows members time
to load their orders without inadvertently triggering the
protection. The Exchange further noted that it will establish and
communicate the precise initiation time via circular and prior to
implementation. See Notice, supra note 3, at 22141 n.4.
    \6\ See Notice, supra note 3, at 22141.
---------------------------------------------------------------------------

    Pursuant to proposed Rule 714(d), ``Market Wide Risk Protection,''
the Exchange's trading system (the ``System'') will maintain one or
more counting programs on behalf of each member that will track the
number of orders entered and the number of contracts traded on ISE
Mercury.\7\ Members may also use multiple counting programs to separate
risk protections for different groups established within the member.\8\
The counting programs will maintain separate counts, over rolling time
periods specified by the member, for each count of: (1) The total
number of orders entered; and (2) the total number of contracts
traded.\9\
---------------------------------------------------------------------------

    \7\ Unlike similar risk protection measures available on ISE
Mercury's affiliated exchanges, the Market Wide Risk Protection
functionality for ISE Mercury will not apply cross-market to its
affiliated exchanges. Cf., e.g., Securities Exchange Act Release
Nos. 77489 (Mar. 31, 2016), 81 FR 20004 (Apr. 6, 2016) (SR-ISE-2016-
08) (notice describing International Securities Exchange, LLC's
Market Wide Risk Protection functionality); and 77488 (Mar. 31,
2016), 81 FR 20021 (Apr. 6, 2016) (SR-ISEGemini-2016-03) (notice
describing ISE Gemini, LLC's Market Wide Risk Protection
functionality). See also Notice, supra note 3, at 22141 n.6.
    \8\ The Exchange stated that it will explain how members can go
about setting up risk protections for different groups (e.g.,
business units) in a circular issued to members. See Notice, supra
note 3, at 22141 n.7.
    \9\ See proposed Rule 714(d). The Exchange clarified that a
member's allowable order rate for the Order Entry Rate Protection
will be comprised of parameter (1), while the allowable contract
execution rate for the Order Execution Rate Protection will be
comprised of parameter (2). The Exchange further explained that
contracts executed on the agency and contra-side of a two-sided
crossing order will be counted separately for the Order Execution
Rate Protection. See Notice, supra note 3, at 22141.
---------------------------------------------------------------------------

    According to the Exchange, members will have the discretion to
establish the applicable time period for each of the counts maintained
under the Market Wide Risk Protection, provided that the selected
period is within minimum and maximum time parameters that will be
established by the Exchange and announced via circular.\10\ By
contrast, the Exchange's proposal does not establish minimum or maximum
values for the order entry or execution parameters described in (1) and
(2) above. Nevertheless, the Exchange will establish default values
\11\ for the time period, order entry, and contracts traded parameters
in a circular to be distributed to members. The Exchange represented
that such default values will apply only to members that do not submit
their own parameters for the Market Wide Risk Protection measures.\12\
---------------------------------------------------------------------------

    \10\ See Notice, supra note 3, at 22141. The Exchange stated
that it anticipated setting these minimum and maximum time
parameters at one second and a full trading day, respectively. See
id. at n.9.
    \11\ See proposed Rule 714(d); see also Notice, supra note 3, at
22141.
    \12\ See Notice, supra note 3, at 22141.
---------------------------------------------------------------------------

    Under proposed Rule 714(d), the System will trigger the Market Wide
Risk Protection when it determines that the member has either (1)
entered a number of orders exceeding its designated allowable order
rate for the specified time period, or (2) executed a number of
contracts exceeding its designated allowable contract execution rate
for the specified time period.\13\ If the member's thresholds have been
exceeded, the Market Wide Risk Protection will be triggered and the
System will automatically reject all subsequent incoming orders entered
by the member on ISE Mercury. In addition, if the member has opted in
to this functionality, the System will automatically cancel all of the
member's existing orders.\14\ The Market Wide Risk Protection will
remain engaged until the member manually (e.g., via email)

notifies the Exchange to enable the acceptance of new orders.\15\
---------------------------------------------------------------------------

    \13\ Id.; see also proposed Rule 714(d)(1). Specifically, after
a member enters or executes an order, the System will look back over
the specified time period to determine whether the member has
exceeded the relevant thresholds. See Notice, supra note 3, at
22141. In the Notice, the Exchange provided examples illustrating
how the Market Wide Risk Protection functionality would work both
for order entry and order execution protections. See Notice, supra
note 3, at 22141-42.
    \14\ Proposed Rule 714(d)(2).
    \15\ Proposed Rule 714(d)(3). Members who have not opted to
cancel all existing orders under proposed Rule 714(d)(2), however,
will still be able to interact with their existing orders entered
before the Market Wide Risk Protection was triggered. For instance,
such members may send cancel order messages and/or receive trade
executions for those orders. Id.; see also Notice, supra note 3, at
22141.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \16\
and rules and regulations thereunder applicable to a national
securities exchange.\17\ In particular, the Commission finds that the
proposed rule change is consistent with the requirements of Section
6(b)(5) of the Act, which requires, among other things, that the rules
of a national securities exchange be designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanisms of a free and open market and a national market system, and,
in general, to protect investors and the public interest.\18\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ In approving these proposed rule changes, the Commission
has considered the proposed rules' impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposed activity-based
order protections will provide an additional tool to members to assist
them in managing their risk exposure.\19\ Specifically, the Commission
believes that the Market Wide Risk Protection functionality may help
members to mitigate the potential risks associated with entering and/or
executing a level of orders that exceeds their risk management
thresholds that may result from, for example, technology issues with
electronic trading systems. Further, the Commission notes that other
exchanges have established risk protection mechanisms for members and
market makers that are similar in many respects to ISE Mercury's
proposal.\20\
---------------------------------------------------------------------------

    \19\ The Exchange currently provides members with limit order
price protections that reject orders priced too far outside of the
Exchange's best bid or offer. See ISE Mercury Rule 714(b)(2).
    \20\ See, e.g., Miami International Securities Exchange, LLC
Rule 519A (``Risk Protection Monitor''); BATS BZX Exchange, Inc.
Rule 21.16 (``Risk Monitor Mechanism'').
---------------------------------------------------------------------------

    Proposed Rule 714(d) imposes a mandatory obligation on ISE Mercury
members to utilize the Market Wide Risk Protection functionality. The
Commission notes that, although the Exchange will establish minimum and
maximum permissible parameters for the time period values, members will
have discretion to set the threshold values for the order entry and
order execution parameters.\21\ If members do not independently set
such parameters, they will be subject to the default parameters
established by ISE Mercury.\22\ While the Commission believes that the
Exchange's proposed rule provides members flexibility to tailor the
Market Wide Risk Protection to their respective risk management needs,
the Commission reminds members to be mindful of their obligations to,
among other things, seek best execution of orders they handle on an
agency basis and consider their best execution obligations when
establishing parameters for the Market Wide Risk Protection or
utilizing the default parameters set by ISE Mercury.\23\ For example,
an abnormally low order entry parameter, set over an abnormally long
specified time period should be carefully scrutinized, particularly if
a member's order flow to ISE Mercury contains agency orders. To the
extent that a member chooses sensitive parameters, a member should
consider the effect of its chosen settings on its ability to receive a
timely execution on marketable agency orders that it sends to ISE
Mercury in various market conditions. The Commission cautions brokers
considering their best execution obligations to be aware that the
agency orders they represent may be rejected as a result of the Market
Wide Risk Protection functionality.
---------------------------------------------------------------------------

    \21\ The Exchange has represented that it anticipates that the
minimum and maximum values for the applicable time period will be
initially set at one second and a full trading day, respectively,
which the Commission believes gives members wide latitude in
establishing the applicable time periods. See Notice, supra note 3,
at 22141 n.9.
    \22\ Proposed Rule 714(d).
    \23\ See Securities Exchange Act Release No. 37619A (Sept. 6,
1996), 61 FR 48290, at 48323 (Sept. 12, 1996) (Order Execution
Obligations adopting release); see also Securities Exchange Act
Release No. 51808 (June 9, 2005), 70 FR 37496, 37537-8 (June 29,
2005) (Regulation NMS adopting release).
---------------------------------------------------------------------------

    As discussed above, ISE Mercury determined not to establish minimum
and maximum permissible settings for the order entry and order
execution parameters in its rule and indicated its intent to set a
minimum and maximum for the time period parameters that provide broad
discretion to members (i.e., one second and a full trading day,
respectively).\24\ In light of these broad limits, the Commission
expects ISE Mercury to periodically assess whether the Market Wide Risk
Protection measures are operating in a manner that is consistent with
the promotion of fair and orderly markets, including whether the
default values and minimum and maximum permissible parameters for the
applicable time period established by ISE Mercury continue to be
appropriate and operate in a manner consistent with the Act and the
rules thereunder.
---------------------------------------------------------------------------

    \24\ See Notice, supra note 3, at 22141 n.9; see also supra note
21.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\25\ that the proposed rule change (SR-ISEMercury-2016-07) be, and
hereby is, approved.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(2).
    \26\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
Brent J. Fields,
Secretary.
[FR Doc. 2016-12890 Filed 6-1-16; 8:45 am]
 BILLING CODE 8011-01-P