[Federal Register Volume 88, Number 232 (Tuesday, December 5, 2023)]
[Notices]
[Pages 84376-84379]
[FR Doc No: 2023-26596]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99041; File No. SR-MIAX-2023-45]

Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule 517, Quote Types Defined

November 29, 2023.
    Pursuant to the provisions of section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on November 16, 2023, Miami International
Securities Exchange, LLC (``MIAX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') a proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 517, Quote
Types Defined.
    The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/miax-options/rule-filings, at MIAX's principal office, and at the Commission's
Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 517, Quote Types Defined.
Specifically, the Exchange proposes to adopt new Interpretations and
Policies .02 to Rule 517 to adopt new risk protection behavior for
replacement Standard quotes \3\ that are rejected.
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    \3\ A Standard quote is a quote submitted by a Market Maker that
cancels and replaces the Market Maker's previous Standard quote, if
any. See Exchange Rule 517(a)(1).
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Background
    Market Makers \4\ on the Exchange have heightened obligations
separate from other market participants. Transactions of a Market Maker
should constitute a course of dealings reasonably calculated to
contribute to the maintenance of a fair and orderly market, and Market
Makers should not make bids \5\ or offers \6\ or enter into
transactions that are inconsistent with such a course of dealings.\7\ A
quotation may only be entered by a Market Maker, and only in the
options classes to which the Market Maker is appointed under Rule
602.\8\ A Market Maker's bid and offer for a series of option contracts
shall state a price accompanied by the number of contracts at that
price the Market Maker is willing to buy or sell upon receipt of an
order or upon interaction with a quotation entered by another Market
Maker on the Exchange.\9\ Additionally, a Market Maker that enters a
bid (offer) on the Exchange must enter an offer (bid) within the spread
allowable under Rule 603(b)(4).\10\
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    \4\ The term ``Market Makers'' refers to ``Lead Market Makers'',
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
    \5\ The term ``bid'' means a limit order or quote to buy one or
more option contracts. See Exchange Rule 100.
    \6\ The term ``offer'' means a limit order or quote to sell one
or more option contracts. See Exchange Rule 100.
    \7\ See Exchange Rule 603(a).
    \8\ See Exchange Rule 604(a).
    \9\ See Exchange Rule 604(b).
    \10\ See Exchange Rule 604(c).
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    The Exchange has three classes of Market Makers; Primary Lead
Market Makers, Lead Market Makers, and Registered Market Makers.\11\
Further, each class of Market Maker has its own

separate and distinct quoting obligations. A Primary Lead Market Maker
must provide continuous two-sided Standard quotes and/or Day
eQuotes,\12\ which for the purpose of paragraph (e)(1)(i) of Rule 604
shall mean 90% of the time, for the options classes to which it is
appointed.\13\ A Primary Lead Market Maker must provide continuous two-
sided Standard quotes and/or Day eQuotes in at least the lesser of 99%
of the non-adjusted option series, or 100% of the non-adjusted option
series minus one put-call pair, in each class in which the Primary Lead
Market Maker is assigned.\14\ A Lead Market Maker must provide
continuous two-sided Standard quotes and/or Day eQuotes, which for the
purpose of paragraph (e)(2)(i) of Rule 604 shall mean 90% of the time,
for the options classes to which it is appointed.\15\ A Lead Market
Maker must provide continuous two-sided Standard quotes and/or Day
eQuotes in at least 90% of the non-adjusted option series in each of
its appointed classes. Such quotations must meet the bid/ask
differential requirements of Rule 603(b)(4).\16\ A Registered Market
Maker must provide continuous two-sided Standard quotes and/or Day
eQuotes throughout the trading day in 60% of the non-adjusted series
that have a time to expiration of less than nine months in each of its
appointed classes. For the purpose of paragraph (e)(3)(i) of Rule 604,
continuous two-sided quoting shall mean 90% of the time, for the
options classes to which the Registered Market Maker is appointed.\17\
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    \11\ See supra note 4.
    \12\ A Day eQuote is a quote submitted by a Market Maker that
does not automatically cancel or replace the Market Maker's previous
Standard quote or eQuote. Day eQuotes will expire at the close of
trading each trading day. See Exchange Rule 517(a)(2)(i). An eQuote
is a quote with a specific time in force that does not automatically
cancel and replace a previous Standard quote or eQuote. An eQuote
can be cancelled by the Market Maker at any time, or can be replaced
by another eQuote that contains specific instructions to cancel an
existing eQuote. See Exchange Rule 517(a)(2).
    \13\ See Exchange Rule 604(e)(1)(i).
    \14\ See Exchange Rule 604(e)(1)(ii).
    \15\ See Exchange Rule 604(e)(2)(i).
    \16\ See Exchange Rule 604(e)(2)(ii).
    \17\ See Exchange Rule 604(e)(3)(i).
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    The Exchange offers several features to Market Makers designed to
mitigate potential risks unique to Market Makers given their
obligations on the Exchange. For example, the Exchange offers an
Aggregate Risk Manager (``ARM'') protection which provides that the
MIAX System \18\ will maintain a counting program (``counting
program'') for each Market Maker who is required to submit continuous
two-sided quotations pursuant to Rule 604 in each of their appointed
option classes.\19\ The System will engage the Aggregate Risk Manager
in a particular option class when the counting program has determined
that a Market Maker has traded during the specified time period a
number of contracts equal to or above their Allowable Engagement
Percentage. The Aggregate Risk Manager will then automatically remove
the Market Maker's Standard quotations and Day eQuotes from the
Exchange's disseminated quotation in all series of that particular
option class until the Market Maker sends a notification to the System
of the intent to reengage quoting and submits a new revised
quotation.\20\
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    \18\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
    \19\ See Exchange Rule 612.
    \20\ See Exchange Rule 612(b)(1).
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    Additionally, the Exchange offers Market Makers Single Side
Protection (``SSP'') functionality which provides that, if the full
remaining size of a Market Maker's complex Standard quote or cIOC
eQuote in a strategy is exhausted by a trade, the System will trigger
the SSP for the traded side of the strategy. When triggered, the System
will cancel all complex Standard quotes and block all new inbound
complex Standard quotes and cIOC eQuotes for that particular side of
that strategy for that MPID.\21\
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    \21\ See Exchange Rule 532(b)(8).
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Proposal
    The Exchange now proposes to cancel a Market Maker's Standard quote
in certain scenarios when a replacement Standard quote submitted by the
Market Maker is rejected. Specifically, the Exchange proposes to adopt
new Policy .02 to Exchange Rule 517 which will provide that a
replacement Standard quote that is rejected for a technical reason (as
described below) will still cancel the target Standard quote.
    A Standard quote is submitted by the Market Maker to the Exchange
using the MIAX Express Interface (``MEI''). MEI is a messaging
interface that MIAX members that are approved as Market Makers use to
submit quotes for trading on the MIAX Options market. Market Makers are
only allowed to submit quotes in the products of underlying instruments
to which they are assigned.\22\ Each message submitted to the Exchange
via the MEI must pass a number of validity checks that are performed by
the System. These include, but are not limited to, price and size
checks. Specifically, Standard quote prices must not (i) be less than
zero; (ii) exceed the maximum price; and (iii) must comply with the
minimum trade increment \23\ for that class.\24\ Additionally, Standard
quote sizes must not be less than zero and must not be less than the
minimum quote size as defined in Rule 604(b)(2).\25\ Collectively,
these requirements constitute the technical reasons for which a
replacement Standard quote may be rejected, but which will still result
in the cancellation of the target Standard quote under the Exchange's
proposal.
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    \22\ See MIAX Express Interface for Quoting and Trading Options,
MEI Interface Specification, version 2.9c (8/1/2022), available at:
https://www.miaxglobal.com/markets/us-options/miax-options/interface-specifications.
    \23\ The price of Market Maker quotes shall be in the minimum
trading increments applicable to the security under Rule 510;
provided that, with respect to any security designated by the
Exchange as available for non-displayed penny orders under Rule
516(b)(2), Market Maker quotes may be in one-cent increments. In
such designated securities, quotes entered in one-cent increments
will be firm as provided in paragraph (d) of Rule 604, but shall
only be displayed to Members and the public at the Minimum Price
Variation (MPV) for the security. The displayed price of such quotes
will be the closest MPV that is higher for offers and the closest
MPV that is lower for bids. See Exchange Rule 604(b)(1).
    \24\ The terms ``class of options'' or ``option class'' mean all
option contracts covering the same underlying security. See Exchange
Rule 100.
    \25\ Exchange Rule 604(b)(2) provides that, the initial size of
a Market Maker incoming Standard Quote, Day eQuote and all other
types of eQuotes must be for the minimum number of contracts, which
minimum number shall be at least one (1) contract. The minimum
number of contracts, which can vary according to type of quote or
eQuote, shall be at least one (1) contract, will be determined by
the Exchange on a class-by-class basis and announced to the Members
through a Regulatory Circular.
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    The Exchange believes that removing the Standard quote that the
Market Maker was attempting to alter promotes the quality of the
Exchange's market as removing a Standard quote that was targeted for
replacement but was not replaced due to a technical reason maintains
the integrity of quotes available in the market by ensuring that all
available quotes accurately represent Market Maker interest.
    When a Market Maker's replacement Standard quote is rejected
because of a technical reason the existing Standard quote will be
cancelled by the Exchange. In addition to maintaining the integrity of
the Exchange's market, the Exchange believes this functionality also
provides an additional level of risk protection to Market Makers that
are attempting to replace an existing Standard quote but are unable to
as a result of a technical reason with the replacement Standard quote.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent
with

the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of section 6(b) of the
Act.\26\ Specifically, the Exchange believes that its proposed rule
change is consistent with section 6(b)(5) \27\ requirements in that 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 mechanism of a free and open market and a national market
system and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the section (6)(b)(5) \28\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers as the proposed rule will be
uniformly applied to all Standard quote messages submitted by Market
Makers on the Exchange.
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    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(5).
    \28\ See id.
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    The Exchange believes its proposal promotes just and equitable
principles of trade and removes impediments to and perfects the
mechanisms of a free and open market and a national market system as
removing a Market Maker's Standard quote that the Market Maker has
targeted for replacement, but failed to replace due to a technical
reason with the replacement Standard quote message, promotes the
quality of the Exchange's market by ensuring that all available quotes
accurately represent Market Maker interest. When a Market Maker enters
a replacement Standard quote a Market Maker has an expectation that the
existing Standard quote will be cancelled, currently the existing
Standard quote that the Market Maker intended to cancel may be executed
if the replacement Standard quote is rejected which is contrary to the
Market Maker's intent.

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 does not believe that its proposed rule change will
impose any burden on intra-market competition as the Rules of the
Exchange apply equally to all Market Makers of the Exchange and all
Market Makers that submit a replacement Standard quote that is rejected
as a result of a technical reason will have the existing target
Standard quote removed by the Exchange.
    The Exchange does not believe that its proposed rule change will
impose any burden on inter-market competition, as the Exchange's
proposal is not a competitive filing. Rather the Exchange believes that
its proposal may promote inter-market competition, as the Exchange's
proposal will improve market quality on the Exchange which may improve
competition for orders across all exchanges.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to section 19(b)(3)(A) of the Act \29\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\30\
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    \29\ 15 U.S.C. 78s(b)(3)(A).
    \30\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \31\ normally
does not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\32\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately upon filing. The Exchange
requested the waiver because it would ensure the integrity of quotes
available in the market. The Exchange stated that the Exchange provides
risk protection functionality specifically for Market Makers due to the
heightened obligations that Market Makers have on the Exchange and that
the proposed rule change would ensure that the quotes available in the
marketplace accurately represent Market Maker interest. For these
reasons, the Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission hereby waives the 30-day operative
delay and designates the proposal operative upon filing.\33\
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    \31\ 17 CFR 240.19b-4(f)(6).
    \32\ 17 CFR 240.19b-4(f)(6)(iii).
    \33\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
file number SR-MIAX-2023-45 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-MIAX-2023-45. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written

communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
filing also will be available for inspection and copying at the
principal office of the Exchange. Do not include personal identifiable
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from publication submitted material that is obscene or subject
to copyright protection. All submissions should refer to file number
SR-MIAX-2023-45 and should be submitted on or before December 26, 2023.
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    \34\ 17 CFR 200.30-3(a)(12), (59).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-26596 Filed 12-4-23; 8:45 am]
BILLING CODE 8011-01-P


    	U. S. Environmental Protection Agency

Office of Prevention, Pesticides, and Toxic Substances (OPPTS)

1200 Pennsylvania Avenue, NW

Washington, DC  20460

Docket Verification and Certification Form

For Internal OPPTS Use Only

Title of Action:	Notice of Filing of a Pesticide Petition for the
Establishment of Tolerances for Residues of Diflubenzuron in or on
Citrus Fruit (Crop Group 10)

RIN #:   	Docket ID #:     EPA-HQ-OPP-2010-0603	FRL#:

Docket Title:	Diflubenzuron; Establish Tolerance for Residues of
Diflubenzuron in or on Citrus Fruit Crop Group 10

Contact Information:	Name:	Kable Bo Davis	Phone #:<PHONE_NUMBER>

Legacy Information:

	Program Lead’s Verification:    I have reviewed the docket and
verified the following:

All of the documents identified in the attached Docket Index have been
submitted to the appropriate Docket Manager for inclusion in the docket
identified above.

Documents containing copyrighted, CBI, or otherwise protected
information have been identified to allow for “special” processing
by the appropriate Docket Staff.

The material has been assembled in a useable form to support the
document being published in the FEDERAL REGISTER (FR).

COMMENTS:

.Date:   07/14/10	Initials:  Kable Bo Davis	Phone #:<PHONE_NUMBER>

Docket Manager’s Verification and Sign-off:   I hereby confirm the
following:

The Docket ID # identified above matches our records.

The documents identified in the attached Docket Index have been received
by the OPP Docket Staff.

The documents have been properly processed for inclusion in EPA FDMS
Dockets, as appropriate.

The documents either already are in the docket or are being processed
for inclusion in the docket.

COMMENTS:

Date:   	Signature:	Phone #:

Program Lead’s Certification:   I hereby certify that:

I have completed the verification above.

I have submitted to the Docket Manager all of the documents that I
identified needed to be updated or added to the docket.

I have obtained the Docket Manager’s sign-off.

The docket is complete and ready for public release.

COMMENTS:

Date:   07/14/10 	Signature:    Kable Bo Davis	Phone #:<PHONE_NUMBER>

Attachment:    List of Documents for Docket ID # EPA-HQ-2010-0603 as of
July 14, 2010

Document Title	Source Information:  Author (Last, First Name);
Organization; Citation	Date of Document	1)  CBI     2) Other Protected,
e.g., Studies

3)  Copyrighted

	Notice of Filing of a Pesticide Petition for the Establishment of
Tolerances for Residues of Diflubenzuron in or on Citrus Fruit (Crop
Group 10)	Chemtura Corporation

199 Benson Road

Middlebury, CT 06749

N/A


that causes the surety bond or trust fund to fall below $75,000;
    (ii) Makes a payment in any case in which the broker does not
respond within 7 business days to address the validity of the claim,
and the surety provider or financial institution determines that the
claim is valid, and the payment causes the surety bond or trust fund to
fall below $75,000;
    (iii) Makes a payment due to a judgment against the broker that
causes the surety bond or trust fund to fall below $75,000; or
    (iv) Determines that the broker is experiencing financial failure
or insolvency and that the surety company or financial institution will
be required to pay one or more claims pursuant to 49 U.S.C. 13906(b)(6)
in an amount that will cause the surety bond or trust fund to fall
below $75,000. The surety company or financial institution may make
this determination when:
    (A) It receives one or more claims that, if paid, would reduce the
balance of the trust fund or surety bond below the required minimum;
    (B) It has notified the broker of such claims and provided 7
business days for the broker to respond to the determination; and
    (C) Either the broker fails to respond within the time period
provided in paragraph (e)(1)(D)(ii) of this section, or provides a
response and the surety company or financial institution nevertheless
determines that the claim is legitimate and that the surety company or
financial institution expects to make one or more payments on the claim
from the bond or trust fund.
    (2) Paragraph (e)(1) of this section does not apply when a broker
has filed to initiate a proceeding pursuant to Title 11 of the United
States Code.
    (3) The notification to FMCSA must include the broker's MC number
or USDOT number, a description of the reason for the notification, and
either:
    (i) Evidence of the date a payment was made under paragraphs
(e)(1)(i) through (iii) of this section and amount of such payment, or
    (ii) A list of currently pending claims, amounts, and evidence that
the surety company or financial institution complied with the
notification requirements in paragraph (e)(1)(D) of this section.
    (4) The notification to FMCSA must be made within 2 business days
of a payment or determination.
    (5) Upon notification by the surety company or financial
institution in accordance with paragraphs (e)(1) through (4) of this
section, FMCSA will provide written notice to the broker that its
operating authority registration issued pursuant to part 365 of this
chapter will be suspended within 7 business days of the date of the
notice unless the broker provides written evidence to FMCSA that the
notification was sent in error, the surety bond or trust fund has been
restored to the $75,000 amount required by this section, or the pending
claims have been satisfied without the use of surety bond or trust fund
assets.
    (6) If the broker fails to respond to the notice within 7 business
days, FMCSA will enter a suspension of the broker's authority and
provide written notice to the broker that the suspension is in effect.
A broker whose authority has been suspended may request FMCSA to lift
the suspension by providing written evidence that the notification was
sent in error; the surety bond or trust fund has been restored to the
$75,000 amount required by this section; or the pending claims have
been satisfied without the use of surety bond or trust fund assets.
FMCSA will consider such evidence and provide written notice to the
broker of its determination.
    (f) Financial failure or insolvency of the broker. (1) For purposes
of this section, a financial failure or insolvency of a broker is
defined as any payment made or other default pursuant to Sec.
387.307(e)(1) not cured in accordance with Sec.  387.307(e)(5) or (6).
    (2) For purposes of this provision, a filing related to the broker
pursuant to Title 11 of the United States Code does not constitute
financial failure or insolvency.
    (3) If a surety company or financial institution makes a
determination as described in paragraph (f)(1) of this section, such
surety company or financial institution shall initiate cancellation of
the Form BMC-84 or Form BMC-85 pursuant to paragraph (d)(2)(i) of this
section.
    (4) Upon notification by the surety company or financial
institution, FMCSA will provide written notice of the cancellation in
the FMCSA Register on its public website. The surety or financial
institution must accept claims against the BMC-84 surety bond or BMC-85
trust fund for 60 calendar days (extended to the next business day if
the final day of the period falls on a weekend or Federal holiday)
following FMCSA's public notification of the financial failure or
insolvency in the FMCSA Register.
    (5) If a surety company or financial institution notifies FMCSA of
its determination pursuant to paragraph (e)(1)(iv) that a broker is
experiencing financial failure or insolvency and the broker
subsequently satisfies all pending claims that would have reduced the
surety bond or trust fund below $75,000, the surety company or
financial institution must immediately notify FMCSA that the broker is
no longer experiencing financial failure or insolvency. Upon receiving
evidence from the broker that the surety company or financial
institution has terminated

the cancellation process and reinstituted the bond or trust, or that
the broker has obtained a new bond or trust from another eligible
surety company or financial institution, FMCSA will promptly provide
written notice in the FMCSA Register on its public website that the
financial failure or insolvency has been cured.
    (g) Suspension of surety company or financial institution. (1) If a
surety company or financial institution violates the requirements of
this section or 49 U.S.C. 13906(b) or (c), FMCSA shall suspend the
authorization of such surety company or financial institution to have
its instruments filed as evidence of financial responsibility pursuant
to Sec.  387.307 for 3 years.
    (2) If FMCSA initiates a suspension action pursuant to paragraph
(g)(1) of this section it shall provide written notice to the surety
company or financial institution, provide 30 calendar days (extended to
the next business day if the final day of the period falls on a weekend
or Federal holiday) for the surety company or financial institution to
provide evidence contesting such proposed suspension, and then render a
final decision in writing.

0
6. Amend newly redesignated Sec.  387.307T by:
0
a. Adding introductory text; and
0
b. Revising paragraph (d)(2)(i).
    The addition and revision read as follows:

Sec.  387.307T   Property broker surety bond or trust fund.

    This section will remain in effect until January 16, 2025.
* * * * *
    (d) * * *
    (2) * * *
    (i) Cancellation notice. The surety bond and the trust fund
agreement may be cancelled only upon 30 days' written notice to the
FMCSA, on prescribed Form BMC 36, by the principal or surety for the
surety bond, and on prescribed Form BMC 85, by the trustor/broker or
trustee for the trust fund agreement.
* * * * *

    Issued under authority delegated in 49 CFR 1.87.
Robin Hutcheson,
Administrator.
[FR Doc. 2023-25312 Filed 11-15-23; 8:45 am]
BILLING CODE 4910-EX-P