[Federal Register Volume 84, Number 175 (Tuesday, September 10, 2019)]
[Notices]
[Pages 47600-47608]
[FR Doc No: 2019-19460]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86869; File No. SR-NYSENAT-2019-19]

Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing of Proposed Rule Change To Amend the Exchange's Price List
Related to Co-Location Services

September 4, 2019.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on August 22, 2019, NYSE National, Inc. (``NYSE National''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the Exchange's Price List related to
co-location services to provide access to NMS feeds. The proposed rule
change is available on the Exchange's website at www.nyse.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the Price List related to co-
location \4\ services offered by the Exchange to provide Users \5\ with
an alternate, dedicated network connection to access the NMS feeds for
which the Securities Industry Automation Corporation (``SIAC'') is
engaged as the securities information processor (``SIP'').\6\
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    \4\ The Exchange initially filed rule changes relating to its
co-location services with the Commission in May 2018. See Securities
Exchange Act Release No. 83351 (May 31, 2018), 83 FR 26314 (June 6,
2018) (SR-NYSENAT-2018-07). The Exchange operates a data center in
Mahwah, New Jersey (the ``data center'') from which it provides co-
location services to Users.
    \5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See id. at note 9. As
specified in the Price List, a User that incurs co-location fees for
a particular co-location service pursuant thereto would not be
subject to co-location fees for the same co-location service charged
by the Exchange's affiliates the New York Stock Exchange (``NYSE''),
NYSE American LLC (``NYSE American''), and NYSE Arca, Inc. (``NYSE
Arca'' and together, the ``Affiliate SROs''). See id. at note 11.
    \6\ See id. at 26316.
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    As described below, today Users can connect to Regulation NMS
equities and

options feeds \7\ disseminated by the SIP using either of the co-
location local area networks. Users do not pay an additional charge to
connect to the NMS feeds: It comes with their connection to the local
area network.
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    \7\ The NMS feeds include the Consolidated Tape System and
Consolidated Quote System data streams, as well as Options Price
Reporting Authority (``OPRA'') feeds.
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    The Exchange has recently been authorized to build a new network in
the Mahwah data center (the ``NMS network'') that will only connect to
the NMS feeds. The new network will connect to the NMS feeds faster
than either of the existing local area networks. The Exchange believes
that under most circumstances, none of the Users that currently connect
to the NMS feeds will have to pay any additional fees to connect to the
NMS network. As described in detail below, there are limited
circumstances when a User may incur a unique fee to connect to the NMS
network. However, the Exchange does not expect to earn net revenue from
any such fees for connecting to the NMS network.
    As explained in more detail below, the Exchange proposes to amend
the General Notes to provide that:
    a. Users will have the option to use the NMS network or either of
the existing local area networks to connect to the NMS feeds.
    b. For each connection a User and its Affiliates have to the local
area networks, the User and its Affiliates, together, will get a free
connection to the NMS network, subject to a maximum limit of eight, so
long as the User meets the requirements set forth below.
    c. If a User wants to separately purchase an NMS network
connection, it would pay the same fee as the same-sized 10 Gigabit
(``Gb'') or 40 Gb internet protocol (``IP'') network circuit.
    Subject to approval of this proposed rule change, the Exchange
proposes to implement the rule change on the first day of the month
after the NMS network is available. The Exchange will announce the
implementation date through a customer notice.
Background
    The Exchange's affiliate, SIAC, is engaged as the SIP for three
separate Regulation NMS plans (collectively, the ``NMS Plans'').\8\
SIAC operates as the SIP for the NMS Plans in the same data center
where the Exchange and its Affiliate SROs operate. In that data center,
Users can access SIAC as the SIP over the same network connections
through which they access other services. Specifically, a User can
access the SIAC SIP environment via either the IP network or the
Liquidity Center Network (``LCN''), which are the local area networks
in the data center.\9\
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    \8\ SIAC has been engaged as the SIP to, among other things,
receive, process, validate and disseminate: (1) Last-sale price
information in Tape A and Tape B-listed securities pursuant to the
CTA Plan (``CTA Plan''), which is available here: https://www.nyse.com/publicdocs/ctaplan/notifications/trader-update/CTA%20Plan%20-%20Composite%20as%20of%20August%2027,%202018.pdf; (2)
quotation information in Tape A and B-listed securities pursuant to
the CQ Plan (``CQ Plan''), which is available here: https://www.nyse.com/publicdocs/ctaplan/notifications/trader-update/CQ_Plan_Composite_as_of_July_9_2018.pdf; and (3) quotation and last-
sale price information in all exchange options trading pursuant to
the OPRA Plan (``OPRA Plan''), which is available here: https://uploads-ssl.webflow.com/5ba40927ac854d8c97bc92d7/5bf419a6b7c4f5085340f9af_opra_plan.pdf.
    \9\ See 83 FR 26314, note 4, supra, at 26315-26316.
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    The Exchange offers Users connectivity to the SIAC SIP environment
at no additional charge when a User purchases access to the LCN or IP
network.\10\ On the Price List, the SIAC feeds are referred to as the
``NMS feeds.'' As described in General Note 4 of the Price List, when a
User purchases access to the LCN or IP network, it receives
connectivity to certain market data products (the ``Included Data
Products'') that it selects, subject to technical provisioning
requirements and authorization from the provider of the data feed. The
NMS feeds are included in the list of the Included Data Products that
come with connections to the LCN or IP network. The remaining Included
Data Products are proprietary feeds of the Exchange, its Affiliate
SROs, and the Exchange's affiliate NYSE Chicago, Inc. (``NYSE Chicago''
and together with the Exchange and Affiliate SROs, the ``NYSE
Exchanges'').
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    \10\ As set forth on the Price List, the Exchange offers a range
of LCN and IP network connectivity options at different rates
depending on the bandwidth and latency profile of the applicable
network.
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    A User that purchases access to the LCN or IP network also receives
the ability to access the trading and execution systems of the NYSE
Exchanges (the ``Exchange Systems'') and the trading and execution
systems of OTC Global, an alternative trading system (``ATS''),
subject, in each case, to authorization by the relevant entity.\11\
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    \11\ See 83 FR 26314, note 4, supra, at 26315-26316, and
Securities Exchange Release No. 85959 (May 29, 2019), 84 FR 25887
(June 4, 2019) (SR-NYSENat-2019-13). Information regarding the
Included Data Products is currently set forth in the second
paragraph of General Note 4. The Exchange proposes to split General
Note 4 so that the discussion regarding Included Data Products will
form General Note 5.
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    Accordingly, without paying an additional connectivity fee, a User
that purchases access to either the LCN or IP network can use such
network to:
    1. Access the trading and execution services of five registered
exchanges (five equities markets, two options markets, and a fixed
income market) and an ATS;
    2. Connect to the market data of five registered exchanges (five
equities exchanges, two options markets, and a fixed income market);
and
    3. Connect to the NMS feeds.
    A User may connect to the NMS feeds through the IP network or LCN.
Until recently the operating committee for the CTA and CQ Plans (``CTA/
CQ Plans'') mandated use of the IP network to access the NMS feeds.\12\
As a result, all LCN connections to the NMS feeds go through the IP
network before reaching the NMS feeds,\13\ and so using the LCN to
connect to an NMS feed is slower than using the IP network.\14\
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    \12\ The Operating Committee of the CTA/CQ Plans mandated the
use of the IP network to access the NMS feeds because the IP network
was built as a secure network designed for resiliency and
redundancy.
    \13\ By contrast, the LCN does not connect to the IP network for
access to the Exchange Systems or connectivity to the other Included
Data Products.
    \14\ A User that uses the LCN to connect to an NMS feed does not
need to separately purchase an IP network connection.
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Alternate, Dedicated Network Connection for NMS Feeds
    As the SIP for the NMS Plans, SIAC continually assesses the
services it provides and has been working with the operating committees
of the NMS Plans and the industry-based advisory committee to the CTA/
CQ Plans to identify potential performance enhancements. Among other
initiatives, this group identified that, because the IP network was not
designed as a low-latency network, the requirement to use the IP
network to access the NMS feeds introduces a layer of latency.
    To reduce network latency, the Exchange sought and received
approval from the operating committees for the CTA/CQ Plans to build an
alternate to the LCN and IP network to connect to the NMS feeds.\15\ As
approved by the CTA/CQ Plans, the Exchange is building a low-latency
network in the data center that will provide Users with dedicated
access to the NMS feeds (the ``NMS network'').\16\
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    \15\ The alternate network to access the NMS feeds will not be
available outside of the data center.
    \16\ Because SIAC, as the SIP for the NMS Plans, is also
responsible for collecting data from the participants of the CTA/CQ
Plans and members of the OPRA Plan, Users that are participants of
the applicable NMS Plans could use this alternate network connection
for purposes of both transmitting and receiving data. Users that are
not participants of the NMS Plans could use this alternate network
connection for purposes of receiving data. This alternate network
would not be available to connect to the other Included Data
Products or to access the Exchange Systems or Global OTC.

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    The Exchange currently anticipates that the low-latency network
will have a one-way reduction in latency to access the NMS feeds from
the IP network and LCN of over 140 microseconds.
    Connections to the NMS network will be available in 10 Gb and 40 Gb
circuits. Because the NMS network will be an alternate network to
access the NMS feeds, once it is available, Users would have the choice
between continuing to use the LCN or IP network to connect to NMS feeds
or switching to the NMS network.
Proposed Amendments to the Price List
    The proposed fee structure for the NMS network has been designed so
that, in most cases, a User would not have any new or different charges
if it opts to connect to the NMS network compared to what it would be
charged if it chooses to continue to use its LCN or IP network circuit
to connect to the NMS feeds. At the same time, the proposed fees are
designed to promote the efficient use of the NMS network so that Users
do not subscribe to more NMS network connections than are necessary.
Options to Connect to the NMS Feeds
    As noted above, Users that purchase access to the LCN or IP Network
currently can use such networks to connect to the NMS feeds. The
Exchange proposes to add text to the General Notes stating that a User
authorized to receive connectivity to one or more NMS feeds may request
to connect to the NMS feeds via the NMS network.
No Fee NMS Network Connections
    The Exchange proposes to amend the Price List to state that if a
User purchases access to the LCN or IP network and requests a
connection to the NMS network, that User and its Affiliates, taken
together, would not be charged for up to eight corresponding NMS
network connections (each, a ``No Fee NMS Network Connection'') if such
User, together with its Affiliates, purchases access to an LCN or IP
network and:
    1. Designates no more than four No Fee NMS Network Connections as
corresponding to the LCN connections of the User, together with its
Affiliates, on a one-to-one basis;
    2. designates no more than four No Fee NMS Network Connections as
corresponding to the IP network connections of the User, together with
its Affiliates, on a one-to-one basis;
    3. does not use the LCN or IP network connections that correspond
to No Fee NMS Network Connections to access the NMS feeds; and
    4. each of the No Fee NMS Network Connections is of equal size or
smaller than the associated LCN or IP network connection purchased by
it or its Affiliates.\17\
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    \17\ An ``Affiliate'' of a User would be any other User or
Hosted Customer that has 50% or greater common ownership or control
of the first User. A ``Hosted Customer'' means a customer of a
Hosting User that is hosted in a Hosting User's co-location space,
and a ``Hosting User'' means a User of co-location services that
hosts a Hosted Customer in the User's co-location space. Such
definitions are set forth in the Price List under ``Definitions.''
See 83 FR 26314, note 4, supra, at 26315.
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    For example, if a User that has no Affiliates currently purchases
three 40 Gb LCN circuits and two 10 Gb IP network circuits, and is
authorized to access the NMS feeds through all five of these circuits,
under the proposal, such User would not be charged any additional fees
for up to three 40 Gb NMS network circuits and two 10 Gb NMS network
circuits. If such User chooses to use all five corresponding NMS
network connections, it would no longer be provided access to the NMS
feeds over the three 40 Gb LCN circuits and the two 10 Gb IP network
circuits.
    Because the Exchange proposes that the number of No Fee NMS Network
Connections would be applicable to both a User and its Affiliates, the
Exchange proposes to amend the Price List to specify how a User must
certify whether any other Users or Hosted Customers are Affiliates of
the certificating User. As proposed, the certificating User would be
required to inform the Exchange immediately of any event that causes
another User or Hosted Customer to become an Affiliate. The Exchange
would review available information regarding the entities and may
request additional information to verify the Affiliate status of a User
or Hosted Customer. The Exchange would provide No Fee NMS Network
Connections to the certificating User unless it determines that the
certification is not accurate.
    In addition, a User that has one or more NMS network connections
may become affiliated with one or more other Users or Hosted Customers
such that the User and its Affiliates would together exceed the limit
of No Fee NMS Network Connections. In such case, for each NMS network
connection that exceeds the limit of No Fee NMS Network Connections,
the Exchange would charge the User for each NMS network connection at
the same rate as it charges for an IP network connection of the same
size. Such change would be effective as of the date that the User
became affiliated with the other Users or Hosted Customers, as
applicable.
    This proposed rule text relating to how a User and its Affiliates
would be charged in connection with the No Fee NMS Network Connections
is based on text in General Note 2 relating to how a User must certify
Affiliates in connection with the Partial Cabinet Solution bundle.\18\
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    \18\ See id.
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Purchasing NMS Network Connections
    In addition to the No Fee NMS Network Connections, the Exchange
proposes that a User may purchase an NMS network connection.
Accordingly, the Exchange proposes to add text to the Price List
stating that a User may purchase an NMS network connection at the same
fee as the same-sized 10 Gb or 40 Gb IP network circuits.\19\
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    \19\ As set forth on the Price List, IP network access is: (1)
$10,000 per connection initial charge and a $11,000 monthly
recurring charge (``MRC'') per connection for a 10 Gb Circuit; and
(2) $10,000 per connection initial charge and a $18,000 MRC for a 40
Gb Circuit.
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    Circumstances when a User would have to separately purchase an NMS
network connection could include if such User:
    1. Has not purchased access to the LCN or IP network and would like
to connect to the NMS network;
    2. has purchased access to the LCN or IP network and would like NMS
network connections in excess of the number of No Fee NMS Network
Connections that correspond to its LCN or IP network connections; \20\
or
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    \20\ For example, if a User had four connections to the LCN and
three connections to the IP network, those connections would
correspond to seven No Fee NMS Network Connections. If the User
wanted ten NMS network connections, it would receive seven at no fee
and would pay for three.
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    3. would like to use its LCN or IP network connections to continue
to access the NMS feeds.
Expected Application of the Proposed Change
    Currently, 48 Users connect to NMS feeds through connections to the
LCN and IP networks (the ``Current Users''). The Exchange expects the
number of Users connecting to the NMS feeds in the future to remain
relatively constant with the number of Current Users, although it could
increase or decrease with time. The fee will apply in the same manner
to all Users, irrespective of what type or size of market participant
they are.

The Range of Potential Fees
    Depending on how a User chooses to connect, a User would pay for a
connection to the NMS network between $0 and $18,000 per connection per
month. More specifically, a User that utilizes a No Fee NMS Network
Connection to connect to the NMS network would pay no initial fee or
MRC. A User that does not utilize a No Fee NMS Network Connection would
pay the same fee as the same-sized 10 Gb or 40 Gb IP network circuit.
For the 10 Gb option, that would be a $10,000 initial charge and a
$11,000 MRC per connection. For the 40 Gb option, that would be a
$10,000 initial charge and a $18,000 MRC per connection.
    As noted above, the Exchange believes that none of the Current
Users will have to pay to connect to the NMS network, and so the
$11,000 and $18,000 MRCs are largely theoretical. Based on a review of
the Current Users' LCN and IP network connections, with two exceptions,
the number of No Fee NMS Network Connections will be more than
sufficient for such Users to maintain their current connections to the
NMS network at no additional cost. Accordingly, the majority of Current
Users would be able to opt to connect to the NMS network without any
additional charges.
    The exceptions are two Current Users that use more than four
connections to the IP network and/or four connections to the LCN to
connect to the NMS feeds. If these Users obtain an equal number of
connections to the NMS network, the number of their connections to the
NMS network would exceed their number of No Fee NMS Network
Connections. As a result, they would have to pay for the excess NMS
network connections. However, based on conversations with these two
Users, the Exchange understands that they intend to optimize their
connections by only using their No Fee NMS Network Connections to
connect to the NMS feeds and would not need to purchase any additional
NMS network connections. Accordingly, since they do not anticipate
requiring NMS network connections in excess of the No Fee NMS Network
Connections, the Exchange believes that they will not incur any
additional cost. For this reason, the Exchange believes that providing
up to eight free connections to the NMS network, each corresponding to
a purchased connection of equal or larger size to the LCN or IP
network, would meet the needs of the Current Users.
    Based on the Exchange's review of Users' current numbers of
connections to the LCN and IP network, the Exchange believes that the
majority of Users that want access to the NMS feeds in the future would
be able to meet their bandwidth needs for the NMS network with the
proposed No Fee NMS Network Connections, and so are unlikely to incur
any cost above their costs for accessing the LCN or IP network.
    The Exchange's proposal to require a User to purchase access to the
NMS network if it does not also purchase access to the LCN or IP
network, or if it has connections to the LCN and IP network but wants a
number of NMS network connections in excess of its No Fee NMS Network
Connections, would not impose any new or different charges for such
User. For example:
     Currently, if a User needs to connect to only the NMS
feeds (and does not need that network connection to access the Exchange
Systems or to connect to the other Included Market Data), such User
must purchase access to either the LCN or IP network at the published
rates on the Price List.
     As proposed, once the NMS network becomes available, such
User would still need to purchase a network connection to connect to
the NMS feeds, but will have a greater choice because it could opt to
connect via the low-latency, dedicated NMS network instead of using the
IP network. Access to the NMS network would be charged at the same rate
as published rates for access to the IP network.
    As another example:
     Currently, if a User needs (a) two connections to the LCN
to meet its bandwidth needs to access the Exchange Systems and connect
to Included Market Data, including the NMS feeds, and (b) an additional
connection to the LCN or IP network to meet additional bandwidth needs
to connect to NMS feeds, it would purchase a total of three network
connections: Two LCN connections (to provide access to the Exchange
Systems and connect to the Included Market Data) and one IP network
connection (to provide connectivity only to the NMS feeds).
     As proposed, once the NMS network is available, such User
could still purchase two connections to the LCN for its non-NMS feed
needs, and could opt to use two No Fee NMS Network Connections of the
same or smaller bandwidth that correlate to such LCN connections. To
meet its additional bandwidth needs to connect to the NMS feeds, such
User could now opt to purchase a connection to either the NMS network
or the IP network at the same price. In either case, the User would be
purchasing a total of three network connections (but receiving five
connections) and would be charged at the same rates as are currently
charged under the Price List.
    In both of the above examples, a User that opts to purchase access
to the NMS network instead of to the IP network to connect to the NMS
feeds would receive a lower-latency connection than the IP network
connection, for the same charge. The Exchange therefore believes that
in the above-described circumstances, the proposed fees would be cost-
neutral as compared to the current Price List, with the additional
benefit that the User would have the option to select a lower-latency,
dedicated network connection.
The Limitation on the Number of No Fee NMS Network Connections
    As described above, the Exchange believes that the majority of
Users would be able to meet their bandwidth needs for the NMS network
with the proposed No Fee NMS Network Connections. The Exchange further
believes that without the proposed limit on number of No Fee NMS
Network Connections, Users may opt to connect to NMS network
connections on a one-for-one basis for each LCN or IP network
connection that they have purchased, even if such LCN or IP network
connections are not currently used to access the NMS feeds. In such
case, the Exchange does not believe that more than eight NMS network
connections would be necessary or in furtherance of the User's needs to
connect to the NMS feeds. To discourage Users from requesting more NMS
network connections than they need, the Exchange proposes to charge for
any NMS network connections in excess of the proposed limit of No Fee
NMS Network Connections.
    Similarly, the Exchange believes that if a User chooses to connect
to the NMS feeds via both an LCN or IP network connection and an
associated NMS network connection, that User would be receiving two
separate network connections to access the NMS feeds. This would double
its bandwidth available to access the NMS feeds and the Exchange
believes that such User should be charged accordingly. The Exchange
further believes it would promote efficient use of resources to charge
for the NMS network connection in these circumstances because there
would be operational costs for the Exchange to support access to both
the NMS network and the LCN or IP networks at the same time. Stated
otherwise, the Exchange is concerned that if the NMS network
connections are free without any limits, Users may seek

so many connections that it would increase both capital and operational
expenses for the Exchange.
Defraying the Cost of Building the NMS Network
    In addition to promoting the efficient use of NMS network
connections, charging for NMS network connections under the limited
circumstances described above may also defray the costs associated with
implementing the NMS network. As described above, SIAC is the SIP for
the NMS plans and is reimbursed for specified direct costs by the
participants to the NMS Plans.\21\ Even though the NMS network would
connect only to the NMS feeds, the Exchange has agreed not to seek
reimbursement of the costs to build the NMS network from the
participants of the respective NMS Plans.
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    \21\ SIAC is reimbursed either directly (under the CTA/CQ Plans,
participants reimburse SIAC directly) or indirectly (under the OPRA
Plan, OPRA LLC reimburses SIAC).
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    The one-time capital expenditure for the implementation of the NMS
network will be approximately $3.8 million, which includes procurement
of new low-latency network switches, network devices, and analytics
tools and the one-time operational expenditures to build this new
network. The estimate is based on the hardware that would be necessary
to support the Current Users' present configurations if they replaced
their LCN or IP network connections to the NMS feeds with NMS network
connections, with some room for additional growth. If Users were to
request NMS network connections in excess of the estimated number of
connections, the Exchange would have to procure additional hardware,
which would be an additional cost. In addition to these one-time
implementation costs, the Exchange estimates that the ongoing cost to
maintain and operate the dedicated NMS network will be approximately
$215,000 annually.
    The Exchange cannot predict with certainty what User behavior will
be once the NMS network is available. As discussed above, based on
current usage of the LCN and IP network, the Exchange anticipates that
all Current Users will be able to connect to the NMS feeds without any
new or different charges. The Exchange expects that some Users may even
reduce the total number of circuits that they purchase because they
will be able to obtain up to eight connections to the NMS network at no
charge. Those No Fee NMS Network Connections will free up bandwidth
over their LCN or IP network connections, allowing them to reduce the
total number of LCN or IP network connections that they purchase.
    Although the Exchange believes that none of the Current Users will
have to pay additional fees to connect to the NMS network, the Exchange
cannot fully anticipate User behavior once the NMS network is
available. Some Current Users, or new Users, may elect to purchase NMS
network connections in excess of the proposed limit on the number of No
Fee NMS Network Connections, for which they would pay a charge. Given
that, the Exchange has done an analysis of what would occur if Users
request five unique new NMS network connections that are not No Fee NMS
Network Connections. Assuming that such Users purchase 40 Gb NMS
network circuits, these five new connections would result in $1,130,000
in revenue: $50,000 in initial charges and $1,080,000 in MRC. This
revenue would likely be offset either in part or in whole by Users,
including Current Users, reducing the total number of LCN or IP network
circuits that they purchase. The Exchange could even experience a net
decline in revenue as a result of the proposed commercial terms for the
NMS network.
General
    As is the case with all Exchange co-location arrangements, (i)
neither a User nor any of the User's customers would be permitted to
submit orders directly to the Exchange unless such User or customer is
a member organization, a Sponsored Participant or an agent thereof
(e.g., a service bureau providing order entry services); (ii) use of
the co-location services proposed herein would be completely voluntary
and available to all Users on a non-discriminatory basis; \22\ and
(iii) a User would only incur one charge for the particular co-location
service described herein, regardless of whether the User connects only
to the Exchange or to the Exchange and one or more of the Affiliate
SROs.\23\
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    \22\ As is currently the case, Users that receive co-location
services from the Exchange will not receive any means of access to
the Exchange's trading and execution systems that is separate from,
or superior to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange's trading and execution systems
through the same order gateway, regardless of whether the sender is
co-located in the data center or not. In addition, co-located Users
do not receive any market data or data service product that is not
available to all Users, although Users that receive co-location
services normally would expect reduced latencies in sending orders
to, and receiving market data from, the Exchange.
    \23\ See 83 FR 26314, supra note 4, at 26314. The NYSE, NYSE
American, and NYSE Arca have submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2019-46, SR-NYSEAmer-2019-34, and SR-NYSEArca-2019-61.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\24\ in general, and furthers the
objectives of Sections 6(b)(5) of the Act,\25\ in particular, because
it is 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 mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange also believes
that the proposed fee change is consistent with Section 6(b)(4) of the
Act,\26\ in particular, because it provides for the equitable
allocation of reasonable dues, fees, and other charges among its
members, issuers and other persons using its facilities and does not
unfairly discriminate between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(5).
    \26\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

The Proposed Rule Change Would Remove Impediments to and Perfect the
Mechanism of a Free and Open Market and a National Market System
    The Exchange believes that the proposed change to establish access
to the NMS network as a service available in co-location would remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system and, in general, protect investors and the
public interest because, by offering access to the dedicated, low-
latency NMS network, the Exchange will be providing Users with an
additional option to connect to the NMS feeds. Until recently, SIAC was
required to provide connectivity to the NMS feeds via only the IP
network. As recently approved by the operating committees for the CTA/
CQ Plans, SIAC is now authorized to offer connectivity to the NMS feeds
in the data center via an alternate, dedicated, low-latency NMS
network. The proposed NMS network has been designed consistent with
this directive and will provide greater choice to Users that are
seeking a low-latency network to connect to the NMS feeds.

The Proposed Rule Change Is Reasonable
    As an initial matter, as required by Rule 603(b) of Regulation NMS,
SIAC disseminates quotation and transaction information as the single
plan processor for all Tape A and Tape B-listed securities and is also
the single plan processor for all options exchanges. As the single plan
processor, the pricing decisions relating to the dedicated NMS network
are not constrained by competitive market forces.
    Instead, as described above, the Exchange is funding the capital
and operational expenses to build and operate the NMS network. Those
implementation costs are applicable only to the NMS network, which will
be used for the sole purpose of providing access to the NMS feeds.
Simply put, none of the implementation costs are applicable to any
other Exchange services. The Exchange has based its procurement needs--
which correlate to the Exchange's estimated costs to build the NMS
network--based on the Current Users' usage of the LCN or IP networks to
connect to the NMS feeds, with some room for additional growth.
    The Exchange believes that the proposed charges would be reasonable
because such charges would defray the estimated costs the Exchange will
incur to build and operate the NMS network. As described above, the
proposed NMS network will be a dedicated, low-latency network that will
provide access only to the NMS feeds. Because LCN and IP network fees
on the Price List relate to charges for services either other than or
in addition to connectivity to the NMS feeds, the Exchange currently
does not assess any fees that are specific to connectivity to the NMS
feeds. The proposed charges for access to the NMS network are designed
to defray the specific costs that the Exchange will incur to build and
maintain the infrastructure for the NMS network. As described above,
the Exchange's capital expenditure costs for the build are estimated to
be $3.8 million, which includes procurement of new low-latency network
switches, network devices, and analytics tools and the one-time
operational expenditures to build this new network. The estimate is
based on the hardware that would be necessary to support the Current
Users' present configurations if they replaced their LCN or IP network
connections to the NMS feeds with NMS network connections, with some
room for additional growth. If Users were to request NMS network
connections in excess of the estimated number of connections, the
Exchange would have to procure additional hardware, which would be an
additional cost. In addition to this initial estimated approximately
$3.8 million outlay, the Exchange anticipates that the ongoing costs to
maintain and operate the NMS network will be approximately $215,000
annually.
    The Exchange further believes that these proposed fees would be
reasonable because unnecessary connections would impose a burden on the
infrastructure that would be shared by all Users.
    As stated above, the Exchange believes that the Current Users will
use No Fee NMS Network Connections for the NMS network, and as a
consequence, none of the Current Users will have to pay to connect to
the NMS network. However, the Exchange cannot fully anticipate User
behavior once the NMS network is available. Some Current Users, or new
Users, may elect to purchase NMS network connections in excess of the
proposed limit on number of No Fee NMS Network Connections, for which
they would pay a charge. Given that, the Exchange has done an analysis
of what would occur if Users request five unique NMS network
connections that are not No Fee NMS Network Connections. Assuming that
such connections were the larger size of 40 Gb, these five new
connections would result in $1,130,000 in revenue: $50,000 in initial
charges and $1,080,000 in MRC. But new revenue does not necessarily
translate into net revenue gain.
    First, the Exchange anticipates that once the NMS network is
available, Users may lower the number of LCN or IP network connections
that they purchase, offsetting any unique new charges and possibly
leading to a net decline in revenues. Second, even if the Exchange
assumes new revenue of $1,130,000 per year, such revenue would not
fully offset the cost of building and maintaining the NMS network.
Rather, the proposed charges, to the extent they would correlate to new
revenue, would merely defray the costs that the Exchange will incur to
build and support additional capacity for the NMS network. Assuming
revenue equal to the MRCs, i.e. $1,080,000 per year, it would take four
years before such revenue would fully offset the initial fixed costs to
build the NMS network. The Exchange generally refreshes network
hardware after three or four years, as such hardware has a limited
life. Accordingly, the Exchange expects that it will incur substantial
new costs to refresh the NMS network after three or four years. As a
result, even after the initial fixed costs are offset, the MRC revenue
will not necessarily cover the variable, ongoing costs to maintain and
refresh the NMS network. If the revenue were to be a net gain, the
Exchange does not believe such revenues would cover all the fixed costs
that the Exchange would incur to refresh the network hardware or add
additional infrastructure to meet Users' needs. Any revenue would
assist with defraying the sizable investment needed to create the NMS
network, but in the end the Exchange does not expect additional net
revenues.
The Proposed Rule Change Is an Equitable Allocation of Fees
    The Exchange believes that the proposed fee change is equitably
allocated for multiple reasons.
The No Fee NMS Network Connection Is an Equitable Allocation of Fees
    As described above, the proposed fee structure for the NMS network
has been designed so that the majority of Users would not have any new
or different charges if they opt to connect to the NMS network. Rather,
Users will have a choice whether to use an IP network, LCN or NMS
network connection to connect to the NMS feeds. The cost to purchase a
NMS network connection would be the same as an IP network connection of
the same size. A User that voluntarily chooses to exercise the choice
to connect with the NMS network would receive the benefit of a low-
latency connection without any additional charges.
    More specifically, the Exchange proposes that if a User purchases
access to the LCN or IP network and requests a connection to the NMS
network, it, together with its Affiliates, will not be charged for up
to eight corresponding No Fee NMS Network Connections. Such User,
together with its Affiliates, will be entitled to a No Fee NMS Network
Connection for each of the first four LCN or IP network connections
that it purchases, so long as they meet the requirements set forth
above. A User that utilizes its No Fee NMS Network Connections to
connect to the NMS network would have no or different charges.
    The Exchange believes that the proposed limit on the number of No
Fee NMS Network Connections would be equitably allocated because it is
based on the number of LCN or IP network connections that Users
currently purchase to connect to the NMS feeds. As noted above, based
on a review of the Current Users' LCN and IP network connections and
conversations with two of the Current Users, the Exchange believes that
none of the Current Users

will have to pay more to connect to the NMS network, and Users that
want access to the NMS feeds in the future are unlikely to have to pay
for their NMS network connections.
The Application of the Proposed Rule Change to Affiliates Is an
Equitable Allocation of Fees
    The Exchange likewise believes it would be equitable to apply the
proposed limit on the number of No Fee NMS Network Connections to Users
taken together with their Affiliates because all Users seeking to
connect to NMS feeds using NMS network connections would be subject to
the same parameters. The proposal avoids disparate treatment of Users
that have divided their various business activities between separate
corporate entities, as compared to Users that operate those business
activities within a single corporate entity. It would discourage any
User from taking deliberate advantage of the proposed connections to
the NMS network by setting up separate corporate entities to act as
Users, thereby obtaining more connections than allowed by the proposed
limit on No Fee NMS Network Connections. The Exchange believes that
using the existing definitions of Affiliate, Hosted Customer, and
Hosting User is an equitable allocation of fees because it would
promote consistency and clarity for Users.
The Proposed Charge for NMS Networks Is an Equitable Allocation of Fees
    The Exchange believes that charging the same rate for accessing the
NMS network as is currently charged for accessing a same-sized IP
network connection for Users who do not also purchase an LCN or IP
network connection or who have connections to the LCN and IP network
but want a number of NMS network connections in excess of its No Fee
NMS Network Connections, would be equitably allocated because a User
that currently seeks to connect to the NMS feeds must pay, at a
minimum, the charges for access to the IP network. With the addition of
the NMS network, Users will have a choice to either continue using an
IP network connection or instead connect via the NMS network to connect
to the NMS feeds. Users that choose to connect via the NMS network will
receive the benefit of a low-latency network as compared to access to
the IP network at the same price as the access to the IP network.
    To the extent a User may be subject to charges in addition to what
they would be paying under the current Price List, e.g., if a User
needed more access to the NMS network than their allocated number of No
Fee NMS Network Connections or if they wanted to continue to use the
LCN or IP network to connect to the NMS feeds, the Exchange believes
that the proposed charges would be equitably allocated because such
charges would encourage efficient use of the NMS network and discourage
Users to subscribe to more NMS network connections.
    Current Users do not necessarily use all of their connections to
the IP network and LCN to connect to the NMS feeds. If the Exchange
were to provide them with an equal number of No Fee NMS Network
Connections without any limitations on the number, the Current Users
would have no incentive to make efficient decisions regarding the
number of NMS network connections they had, and the Exchange would need
to incur additional costs to support the infrastructure necessary to
support those additional NMS network connections. In addition, Users
would bear the burden of any unnecessary connections because of the
strain on the infrastructure shared by all Users that access the NMS
network. The Exchange believes that by charging for any connections to
the NMS network in excess of the allocated number of No Fee NMS Network
Connections, it will motivate Users to make rational decisions based on
how many NMS network connections they need, rather than because they
are simply available. These fees are therefore reasonable and not
unfairly discriminatory because they will reduce the burden on all
Users accessing the NMS network.
    Finally, the Exchange believes that access to the proposed NMS
network and related commercial terms would be equitably allocated
because, in addition to access to the NMS network being completely
voluntary, it would be available to all Users on an equal basis (i.e.,
the same access would be available to all Users). All Users that
voluntarily selected to receive access to the NMS network would be
charged the same amount for the same service.
The Proposed Rule Change Is Not Unfairly Discriminatory
    The Exchange believes that the proposed fee change is not unfairly
discriminatory for multiple reasons.
The No Fee NMS Network Connection Is Not Unfairly Discriminatory
    As described above, the proposed fee structure for the NMS network
has been designed so that the majority of Users would not have any new
or different charges if they opt to connect to the NMS network. Rather,
all Users will have a choice whether to use an IP network, LCN or NMS
network connection to connect to the NMS feeds. The proposed fee
therefore does not propose to impose any meaningful differences to
different types of Users. Rather, the cost to purchase a NMS network
connection would be the same as an IP network connection of the same
size, which would be available to all Users on the same terms. Any User
that voluntarily chooses to exercise the choice to connect with the NMS
network would receive the benefit of a low-latency connection without
any additional charges.
    More specifically, the Exchange proposes that if a User purchases
access to the LCN or IP network and requests a connection to the NMS
network, it, together with its Affiliates, will not be charged for up
to eight corresponding No Fee NMS Network Connections. Such User,
together with its Affiliates, will be entitled to a No Fee Connection
for each of the first four LCN or IP network connections that it
purchases, so long as they meet the requirements sets forth above. A
User that utilizes its No Fee NMS Network Connections to connect to the
NMS network would have no new or different charges.
    The Exchange believes that the proposed limit on the number of No
Fee NMS Network Connections would not be unfairly discriminatory
because it is based on the number of LCN or IP network connections that
Users currently purchase to connect to the NMS feeds. As noted above,
based on a review of the Current Users' LCN and IP network connections
and conversations with two of the Current Users, the Exchange believes
that none of the Current Users will have to pay more to connect to the
NMS network, and Users that want access to the NMS feeds in the future
are unlikely to have to pay for their NMS network connections.
The Application of the Proposed Rule Change to Affiliates Is Not
Unfairly Discriminatory
    The Exchange likewise believes it would not be unfairly
discriminatory to apply the proposed limit on the number of No Fee NMS
Network Connections to Users taken together with their Affiliates
because all Users seeking to connect to NMS feeds using NMS network
connections would be subject to the same parameters. The proposal
avoids disparate treatment of Users that have divided their various
business activities between separate corporate entities, as compared to
Users that operate those business activities within a single corporate
entity. It would discourage any User from taking deliberate

advantage of the proposed connections to the NMS network by setting up
separate corporate entities to act as Users, thereby obtaining more
connections than allowed by the proposed limit on No Fee NMS Network
Connections. The Exchange believes that using the existing definitions
of Affiliate, Hosted Customer, and Hosting User would not be unfairly
discriminatory because it would promote consistency and clarity for
Users.
The Proposed Charge for NMS Networks Is Not Unfairly Discriminatory
    The Exchange believes that charging the same rate for accessing the
NMS network as is currently charged for accessing a same-sized IP
network connection for Users who do not also purchase an LCN or IP
network connection or who have connections to the LCN and IP network
but want a number of NMS network connections in excess of its No Fee
NMS Network Connections, would not be unfairly discriminatory because a
User that currently seeks to connect to the NMS feeds must pay, at a
minimum, the charges for access to the IP network. With the addition of
the NMS network, all Users will have a choice to either continue using
an IP network connection or instead connect via the NMS network to
connect to the NMS feeds. Users that choose to connect via the NMS
network will receive the benefit of a low-latency network as compared
to access to the IP network at the same price as the access to the IP
network.
    To the extent a User may be subject to charges in addition to what
they would be paying under the current Price List, e.g., if a User
needed more access to the NMS network than their allocated number of No
Fee NMS Network Connections or if they wanted to continue to use the
LCN or IP network to connect to the NMS feeds, the Exchange believes
that the proposed charges would not be unfairly discriminatory because
such charges would encourage efficient use of the NMS network and
discourage Users to subscribe to more NMS network connections.
    Current Users do not necessarily use all of their connections to
the IP network and LCN to connect to the NMS feeds. If the Exchange
were to provide them with an equal number of No Fee NMS Network
Connections without any limitations on the number, the Current Users
would have no incentive to make efficient decisions regarding the
number of NMS network connections they had, and the Exchange would need
to incur additional costs to support the infrastructure necessary to
support those additional NMS network connections. In addition, Users
would bear the burden of any unnecessary connections because of the
strain on the infrastructure shared by all Users that access the NMS
network. The Exchange believes that by charging for any connections to
the NMS network in excess of the allocated number of No Fee NMS Network
Connections, it will motivate Users to make rational decisions based on
how many NMS network connections they need, rather than because they
are simply available. These fees are therefore not unfairly
discriminatory because they will reduce the burden on all Users
accessing the NMS network.
    Finally, the Exchange believes that access to the proposed NMS
network and related commercial terms would not be unfairly
discriminatory because, in addition to access to the NMS network being
completely voluntary, it would be available to all Users on an equal
basis (i.e., the same access would be available to all Users). All
Users that voluntarily selected to receive access to the NMS network
would be charged the same amount for the same service.
    For the reasons above, the proposed changes would not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location fees, requirements,
terms and conditions established from time to time by the Exchange.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

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 believes that
the proposed rule change would not impose any burden on competition
because it is not designed to address any competitive issues. As
described above, SIAC is the single plan processor for Tape A and B
equities securities and all options securities and does not currently
compete with any other providers for these processor services. The
proposed fee structure for the NMS network would be applied equally
among all Users and it is their choice of whether and at what level to
subscribe to such services, including whether to connect to the
proposed NMS network. Accordingly, the Exchange does not believe that
the proposed fee structure would place any Users at a relative
disadvantage compared to other Users.

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

    No written comments were solicited or received with respect to 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 (i) as the Commission may
designate up to 90 days of such date 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 shall: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSENAT-2019-19 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-NYSENAT-2019-19. 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
such filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. 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-
NYSENAT-2019-19, and should be submitted on or before October 1, 2019.
---------------------------------------------------------------------------

    \27\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19460 Filed 9-9-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 205 (Tuesday, October 25, 2022)]
[Notices]
[Pages 64482-64484]
[FR Doc No: 2022-23186]

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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2017-0720; FRL-10277-01-OCSPP]

Pesticide Registration Review; Pesticide Dockets Opened for
Review and Comment; Notice of Availability

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: This notice announces the availability of the EPA's
preliminary work plans for the following chemicals: Bacillus subtilis,
bromine, fluxapyroxad, and penthiopyrad. With this document, the EPA is
opening the public comment period for registration review for these
chemicals.

DATES: Comments must be received on or before December 27, 2022.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2017-0720, through the Federal eRulemaking
Portal at https://www.regulations.gov. Follow the online instructions
for submitting comments. Do not submit electronically any information
you consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Additional
instructions on commenting and visiting the docket, along with more
information about dockets generally, is available at https://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT:

    For pesticide specific information, contact: The Chemical Review
Manager for the pesticide of interest identified in Table 1 in Unit IV.
    For general questions on the registration review program, contact:
Melanie Biscoe, Pesticide Re-Evaluation Division (7508P), Office of
Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania
Ave. NW, Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>;
email address: [email protected].

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general and may be of
interest to a wide range of stakeholders including environmental, human
health, farm worker, and agricultural advocates; the chemical industry;
pesticide users; and members of the public interested in the sale,
distribution, or use of pesticides. Since others also may be
interested, the agency has not attempted to describe all the specific
entities that may be affected by this action. If you have any questions
regarding the applicability of this action to a particular entity,
consult the Chemical Review Manager identified in Table 1 in Unit IV.

B. What should I consider as I prepare my comments for the EPA?

    1. Submitting CBI. Do not submit this information to the EPA
through regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to the EPA, mark the outside of the disk or CD-ROM
as CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When preparing and submitting
your comments, see the commenting tips at https://www.epa.gov/dockets/commenting-epa-dockets.
    3. Environmental justice. EPA seeks to achieve environmental
justice, the fair treatment and meaningful involvement of any group,
including minority and/or low-income populations, in the development,
implementation, and enforcement of environmental laws, regulations, and
policies. To help address potential environmental justice issues, the
Agency seeks information on any groups or segments of the population
who, as a result of their location, cultural practices, or other
factors, may have atypical or disproportionately high and adverse human
health impacts or environmental effects from exposure to the pesticides
discussed in this document, compared to the general population.

II. Background

    Registration review is the EPA's periodic review of pesticide
registrations to ensure that each pesticide continues to satisfy the
statutory standard for registration, that is, the pesticide can perform
its intended function without unreasonable adverse effects on human
health or the environment. Registration review dockets contain
information that will assist the public in understanding the types of
information and issues that the agency may consider during the course
of registration reviews. As part of the registration review process,
the Agency has completed preliminary workplans for all pesticides
listed in Table 1 in Unit IV. Through this program, the EPA is ensuring
that each pesticide's registration is based on current scientific and
other knowledge, including its effects on human health and the
environment.

III. Authority

    The EPA is conducting its registration review of the chemicals
listed in Table 1 in Unit IV pursuant to section 3(g) of the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Procedural
Regulations for Registration Review at 40 CFR part 155, subpart C.
Section 3(g) of FIFRA provides, among other things, that the
registrations of pesticides are to be reviewed every 15 years. Under
FIFRA, a pesticide product may be registered or remain registered only
if it meets the statutory standard for registration given in FIFRA
section 3(c)(5) (7 U.S.C. 136a(c)(5)). When used in accordance with
widespread and commonly recognized practice, the pesticide product must
perform its intended function without unreasonable adverse effects on
the environment; that is, without any unreasonable risk to man or the
environment, or a human dietary risk from residues that result from the
use of a pesticide in or on food.

IV. Registration Reviews

A. What action is the Agency taking?

    A pesticide's registration review begins when the agency
establishes a docket for the pesticide's registration review case and
opens the docket for public review and comment. Pursuant to 40 CFR
155.50, this notice announces the availability of the EPA's preliminary
work plans for the pesticides shown in Table 1 and opens a 60-day
public comment period on the work plans.

                     Table 1--Preliminary Work Plans Being Made Available for Public Comment
----------------------------------------------------------------------------------------------------------------
                                                                                Chemical review manager
 Registration review case name and No.                   Docket ID No.                  and contact information
----------------------------------------------------------------------------------------------------------------
Bacillus subtilis; Case No. 6012.......  EPA-HQ-OPP-2022-0431                          Susanne Cerrelli,
                                                                                [email protected]
                                                                                ,<PHONE_NUMBER>.
Bromine; Case number 4015..............  EPA-HQ-OPP-2021-0034                          Erin Dandridge,
                                                                                [email protected],
<PHONE_NUMBER>.
Fluxapyroxad; Case Number 7064.........  EPA-HQ-OPP-2021-0633                          DeMariah Koger,
                                                                                [email protected],
<PHONE_NUMBER>.
Penthiopyrad; Case Number 7063.........  EPA-HQ-OPP-2022-0362                          Lauren Weissenborn,
                                                                                [email protected],<PHONE_NUMBER>.
----------------------------------------------------------------------------------------------------------------

B. Docket Content

    The registration review docket contains information that the agency
may consider in the course of the registration review. The agency may
include information from its files including, but not limited to, the
following information:
     An overview of the registration review case status.
     A list of current product registrations and registrants.
     Federal Register notices regarding any pending
registration actions.
     Federal Register notices regarding current or pending
tolerances.

     Risk assessments.
     Bibliographies concerning current registrations.
     Summaries of incident data.
     Any other pertinent data or information.
    Each docket contains a document summarizing what the agency
currently knows about the pesticide case and a preliminary work plan
for anticipated data and assessment needs. Additional documents provide
more detailed information. During this public comment period, the
agency is asking that interested persons identify any additional
information they believe the agency should consider during the
registration reviews of these pesticides. The agency identifies in each
docket the areas where public comment is specifically requested, though
comment in any area is welcome.
    The registration review final rule at 40 CFR 155.50(b) provides for
a minimum 60-day public comment period on all preliminary registration
review work plans. This comment period is intended to provide an
opportunity for public input and a mechanism for initiating any
necessary changes to a pesticide's workplan. All comments should be
submitted using the methods in ADDRESSES and must be received by the
EPA on or before the closing date. These comments will become part of
the docket for the pesticides included in Table 1 in Unit IV. Comments
received after the close of the comment period will be marked ``late.''
The EPA is not required to consider these late comments.
    The agency will carefully consider all comments received by the
closing date and may provide a ``Response to Comments Memorandum'' in
the docket. The final registration review work plan will explain the
effect that any comments had on the final work plan and provide the
agency's response to significant comments.
    Background on the registration review program is provided at:
https://www.epa.gov/pesticide-reevaluation.
    Authority: 7 U.S.C. 136 et seq.

    Dated: October 19, 2022.
Mary Elissa Reaves,
Director, Pesticide Re-Evaluation Division, Office of Pesticide
Programs.
[FR Doc. 2022-23186 Filed 10-24-22; 8:45 am]
BILLING CODE 6560-50-P