[Federal Register Volume 76, Number 5 (Friday, January 7, 2011)]
[Notices]
[Pages 1201-1203]
[FR Doc No: 2011-90]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63628; File No. SR-NASDAQ-2010-154]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by the NASDAQ Stock Market LLC
To Enhance the Investor Support Program

January 3, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 21, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III 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\ 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

    NASDAQ proposes changes to the fee provisions of Rule 7014
(Investor Support Program) to enhance the Investor Support Program in
respect of: Certain assumed Baseline Participation Ratio values for
firms that did not add liquidity in August 2010; the addition of
liquidity through Indirect Order Flow; liquidity executed at or above
$1; and a certification provision.
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com, at NASDAQ'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, NASDAQ 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. NASDAQ 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing changes to the fee provisions of Rule
7014 to enhance the Investor Support Program in respect of: Certain
assumed Baseline Participation Ratio values for firms that did not add
liquidity in August 2010; the addition of liquidity through Indirect
Order Flow; liquidity executed at or above $1; and a certification
provision.
    The Exchange established an Investor Support Program (``ISP'') that
enables NASDAQ members to earn a monthly fee credit for providing
additional liquidity to NASDAQ and increasing the NASDAQ-traded volume
of what are generally considered to be retail and institutional
investor orders in exchange-traded securities (``targeted
liquidity'').\3\ The goal of the ISP is to incentivize members to
provide such targeted liquidity to the NASDAQ Market Center.\4\ The
Exchange noted in the ISP Filing that maintaining and increasing the
proportion of orders in exchange-listed securities executed on a
registered exchange (rather than relying on any of the available off-
exchange execution methods) would help raise investors' confidence in
the fairness of their transactions and would benefit all investors by
deepening NASDAQ's liquidity pool, supporting the quality of price
discovery, promoting market transparency and improving investor
protection.
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    \3\ For a detailed description of the Investor Support Program,
see Securities Exchange Act Release No. 63270 (November 8, 2010), 75
FR 69489 (November 12, 2010) (NASDAQ-2010-141) (notice of filing and
immediate effectiveness)(the ``ISP Filing''). See also Securities
Exchange Act Release No. 76505 (December 2, 2010), 75 FR 76505
(December 8, 2010) (NASDAQ-2010-153)(notice of filing and immediate
effectiveness regarding exclusion of partial trading days from
certain ISP calculations).
    \4\ The Commission has recently expressed its concern that a
significant percentage of the orders of individual investors are
executed at over the counter (``OTC'') markets, that is, at off-
exchange markets; and that a significant percentage of the orders of
institutional investors are executed in dark pools. Securities
Exchange Act Release No. 61358 (January 14, 2010), 75 FR 3594
(January 21, 2010) (Concept Release on Equity Market Structure,
``Concept Release''). In the Concept Release, the Commission has
recognized the strong policy preference under the Act in favor of
price transparency and displayed markets. The Commission published
the Concept Release to invite public comment on a wide range of
market structure issues, including high frequency trading and un-
displayed, or ``dark,'' liquidity. See also Mary L. Schapiro,
Strengthening Our Equity Market Structure (Speech at the Economic
Club of New York, Sept. 7, 2010) (``Schapiro Speech,'' available on
the Commission Web site)(comments of Commission Chairman on what she
viewed as a troubling trend of reduced participation in the equity
markets by individual investors, and that nearly 30 percent of
volume in U.S.-listed equities is executed in venues that do not
display their liquidity or make it generally available to the
public).
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    The Exchange now proposes several adjustments to the Investor
Support Program. The primary objective in making these adjustments is
to moderate the ability of members (firms), on a prospective basis,
from gaining ISP fee credits without effectively adding targeted
liquidity to NASDAQ. This proposal clearly furthers the ISP goal of
incentivizing members to provide targeted liquidity to the Exchange.
    First, the ISP generally compares a member's Participation Ratio
for the current month to the same member's Participation Ratio in
August 2010 (known as the ``Baseline Participation Ratio'').\5\ This
ratio is determined by

measuring the number of shares in liquidity-providing orders entered by
the member (through any NASDAQ port) and executed on NASDAQ and
dividing this number by the consolidated (across all trading venues)
share volume of System Securities \6\ traded in the given month.\7\
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    \5\ The term ``Participation Ratio'' is defined as: For a given
member in a given month, the ratio of (i) the number of shares of
liquidity provided in orders entered by the member through any of
its NASDAQ ports and executed in the NASDAQ Market Center during
such month to (ii) the consolidated volume of shares of System
Securities in executed orders reported to all consolidated
transaction reporting plans by all exchanges and trade reporting
facilities during such month. Rule 7014(d)(4). Using the
consolidated volume language of subsection (d)(4)(ii), the term
``Consolidated Volume'' is defined as the consolidated volume of
shares of System Securities in executed orders reported to all
consolidated transaction reporting plans by all exchanges and trade
reporting facilities during such month. Rule 7014(d)(5). The term
Consolidated Volume is substituted for current consolidated volume
language throughout the rule.
    \6\ The term ``System Securities'' is defined as all securities
listed on NASDAQ and all securities subject to the Consolidated Tape
Association Plan and the Consolidated Quotation Plan. Rule 4751(b).
    \7\ See Proposed Rule 7014(d)(2).
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    The Exchange recognizes that some current members may not be able
to establish a Baseline Participation Ratio for August 2010 (e.g., they
did not add liquidity in August, or were not members). For such
members, the Exchange proposes to add a provision that assumes a
specified value in the Participation Ratio for August 2010.
Specifically, the Exchange proposes new language in subsection (d)(2)
stating that in calculating the August 2010 Participation Ratio, if the
result is zero (no liquidity was added), the Baseline Participation
Ratio shall be deemed to be 0.485% (when rounded to three decimal
places \8\), which corresponds to an average daily volume (``adv'') of
35 million shares in August 2010 (the ``deemed ratio'').\9\ The
Exchange believes that 35 million adv is reasonable in light of the
daily trading volumes in the competitive equity trading market. The
Exchange believes further that the deemed ratio (which would be
uniformly applicable to all members that did not contribute liquidity
in August) is fair and equitable in that it should minimize such
members gaining an advantage over members that contributed liquidity in
August, and would not tend to unfairly exclude members adding targeted
liquidity to the Exchange from the ISP.
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    \8\ The Exchange notes that while the Baseline Participation
Ratio is rounded to three decimal places in the rule for ease of
notation, for ISP billing purposes the Baseline Participation Ratio
will not be rounded in this manner.
    \9\ The .485% Baseline Participation Ratio is calculated as
follows:
    (22 * 35 million shares)/(August consolidated volume * 22).
There were 22 trading days in the month of August 2010. The
consolidated volume for August 2010 was 165.846 billion (rounded).
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    Second, the Baseline Participation Ratio now captures the number of
shares of liquidity provided in orders that are entered by the member
directly through any of its NASDAQ ports and executed in the NASDAQ
Market Center in August 2010. A member might have provided liquidity to
NASDAQ, however, through means other than directly through its own
NASDAQ ports (e.g., indirectly thorough other members). The Exchange
proposes an amendment to capture this indirect liquidity (indirect
order flow) when establishing a member's Participation Ratio for the
month of August 2010. Specifically, the Exchange proposes new language
in subsection (d)(2) stating that in calculating the August 2010
Participation Ratio, the numerator shall be increased by the amount (if
any) of the member's August 2010 Indirect Order Flow.
    Indirect Order Flow is defined in new subsection (d)(5), for
purposes of the rule, as the number of shares of liquidity provided in
orders entered into the NASDAQ Market Center at the member's direction
by another member with minimal substantive intermediation by such other
member and executed in the NASDAQ Market Center during such month.
NASDAQ will assess whether a member entering orders provided
substantive intermediation to another member based on how much
discretion the entering member had in selecting such key order
attributes as symbol, price, size and time in force.
    The Exchange believes that including Indirect Order Flow when
calculating the August 2010 ratio should discourage (and properly
account for) members simply changing how, or through whom (e.g., via
aggregation) they send liquidity to the Exchange to gain ISP fee
payment without effectively increasing the amount of targeted liquidity
sent to the Exchange. This proposal, which is equally applicable to
all, is directly conducive to the goal of adding new liquidity to the
Exchange. As such, the Indirect Order Flow proposal is fair and
equitable to all members. Moreover, the Exchange believes that it is
decidedly non-discriminatory because it promotes accurate accounting of
flow from all sources, thus minimizing the ability of any particular
group of members from gaining an advantage over others.\10\
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    \10\ The Exchange notes that the Indirect Order Flow proposal is
not discriminatory against anyone, but to the contrary affords the
Exchange a clearer picture of how all ISP participants provided flow
in August. The Exchange notes further that while the Baseline
Participation Ratio by definition always refers to August 2010,
Indirect Order Flow was not applied during the ISP's initial months
of operation (November and December) and will be applied
prospectively.
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    Third, to determine the amount of the ISP credit pursuant to the
program, NASDAQ would multiply $0.0003 by the lower of: The number of
shares of displayed liquidity provided in orders entered by the member
thorough its ISP-designated ports and executed in the NASDAQ Market
Center during the given month; or the amount of Added Liquidity \11\
for the given month. The established goal of the ISP is to attract
certain targeted retail and institution liquidity. The Exchange
believes that this type of retail and institutional liquidity would
generally be executed at or above $1. The Exchange therefore proposes
to amend the definition of shares of displayed liquidity in subsection
(b)(1) to clarify that such liquidity must be executed at a price at or
above $1 in the NASDAQ Market Center in order to qualify for the ISP.
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    \11\ The term ``Added Liquidity'' is defined as: For a given
member in a given month, the number of shares calculated by (i)
subtracting from such member's Participation Ratio for that month
the member's Baseline Participation Ratio, and then (ii) multiplying
the resulting difference by the average daily consolidated volume of
shares of System Securities in executed orders reported to all
consolidated transaction reporting plans by all exchanges and trade
reporting facilities during such month; provided that if the result
is a negative number, the Added Liquidity amount shall be deemed
zero. Rule 7014(d)(1). The term ``System Securities'' is defined as:
All securities listed on NASDAQ and all securities subject to the
Consolidated Tape Association Plan and the Consolidated Quotation
Plan. Rule 4751(b).
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    Fourth, the Exchange adds a methodology by which members can
demonstrate their compliance with the requirements of Rule 7014 and the
ISP. The Exchange proposes to add new subsection (e) to state that a
member will certify to the reasonable satisfaction of the Exchange its
Baseline Participation Ratio and its compliance with any other sections
or requirements of this Rule if requested by NASDAQ. The Exchange
limits such certification, which would be applicable to all program
participants, to not more often that once a month during a member's
participation in the ISP. The Exchange believes that the certification
provision would particularly help to ensure that all ISP participants
may participate in the program on an equal, verifiable basis.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\12\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\13\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or

system which NASDAQ operates or controls, and it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market, and, in general, to
protect investors and the public interest.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4) and (5).
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    The Investor Support Program encourages members to add targeted
liquidity that is executed in the NASDAQ Market Center. The rule change
enhances the Investor Support Program by proposing minor changes
regarding certain assumed Participation Rate values for firms that did
not add liquidity in August 2010; the addition of liquidity through
Indirect Order Flow; liquidity executed at or above $1; and a
certification provision. The primary objective in making these
enhancements to the Investor Support Program is to minimize the ability
of members (firms), on a prospective basis, from gaining ISP fee
credits while effectively adding little or no targeted liquidity to
NASDAQ. The rule change proposals ``are not designed to permit unfair
discrimination'' \14\ but, rather, are intended to promote submission
of liquidity-providing orders to NASDAQ, which would benefit all NASDAQ
members and all investors. Likewise, the program is consistent with the
Act's requirement ``for the equitable allocation of reasonable dues,
fees, and other charges.'' \15\ As explained in the immediately
preceding paragraphs, the proposals enhance the goal of the ISP.
Members who choose to increase the volume of ISP-eligible liquidity-
providing orders that they submit to NASDAQ would be benefitting all
investors, and therefore an additional credit, as contemplated in the
proposed enhanced program, is equitable. Finally, NASDAQ notes that the
intense competition among several national securities exchanges and
numerous OTC venues effectively guarantees that fees and credits for
the execution of trades in NMS securities remain equitable and are not
unfairly discriminatory.\16\
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    \14\ See Section 6(b)(5) of the Act, 15 U.S.C. 78f(b)(5).
    \15\ See Section 6(b)(4) of the Act, 15 U.S.C. 78f(b)(4).
    \16\ See e.g., Concept Release (discusses the various venues
where trades are executed).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\17\ 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 should be approved or disapproved.
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    \17\ 15 U.S.C. 78s(b)(3)(a)(ii).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2010-154 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2010-154. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 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; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NASDAQ-2010-154 and should be submitted on or before January 28, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-90 Filed 1-6-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: August 31, 2007 (Volume 72, Number 169)]
[Notice]
[Page 50350]
[DOCID:fr31au07-75]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER07-1195-000]

Mittal Steel USA, Inc.; Notice of Issuance of Order

August 22, 2007.
    Mittal Steel USA, Inc. (Mittal) filed an application for market-
based rate authority, with an accompanying rate schedule. The proposed
market-based rate schedule provides for the sale of energy and capacity
at market-based rates. Mittal also requested waivers of various
Commission regulations. In particular, Mittal requested that the
Commission grant blanket approval under 18 CFR part 34 of all future
issuances of securities and assumptions of liability by Mittal.
    On August 21, 2007, pursuant to delegated authority, the Director,
Division of Tariffs and Market Development-West, granted the requests
for blanket approval under Part 34 (Director's Order). The Director's
Order also stated that the Commission would publish a separate notice
in the Federal Register establishing a period of time for the filing of
protests. Accordingly, any person desiring to be heard concerning the
blanket approvals of issuances of securities or assumptions of
liability by Mittal, should file a protest with the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in
accordance with Rules 211 and 214 of the Commission's Rules of Practice
and Procedure. 18 C.F.R. 385.211, 385.214 (2004).
    Notice is hereby given that the deadline for filing protests is
September 20, 2007.
    Absent a request to be heard in opposition to such blanket
approvals by the deadline above, Mittal is authorized to issue
securities and assume obligations or liabilities as a guarantor,
indorser, surety, or otherwise in respect of any security of another
person; provided that such issuance or assumption is for some lawful
object within the corporate purposes of Mittal, compatible with the
public interest, and is reasonably necessary or appropriate for such
purposes.
    The Commission reserves the right to require a further showing that
neither public nor private interests will be adversely affected by
continued approvals of Mittal's issuance of securities or assumptions
of liability.
    Copies of the full text of the Director's Order are available from
the Commission's Public Reference Room, 888 First Street, NE.,
Washington, DC 20426. The Order may also be viewed on the Commission's
Web site at http: //www.ferc.gov, using the eLibrary link. Enter the
docket number excluding the last three digits in the docket number
filed to access the document. Comments, protests, and interventions may
be filed electronically via the internet in lieu of paper. See, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.

Kimberly D. Bose,
 Secretary.
[FR Doc. E7-17241 Filed 8-30-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 166 (Monday, August 29, 2022)]
[Rules and Regulations]
[Pages 52688-52690]
[FR Doc No: 2022-18532]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2021-0772; FRL-9889-02-R6]

Air Plan Approval; New Mexico; Interstate Transport Requirements
for 2010 Nitrogen Dioxide National Ambient Air Quality Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is approving the
State Implementation Plan (SIP) revision submitted by the State of New
Mexico, through the New Mexico Environment Department (NMED), for the
purpose of addressing the Clean Air Act (CAA or ``Act'') ``good
neighbor'' interstate transport (prongs 1 and 2) infrastructure SIP
requirements for the 2010 1-hour Nitrogen Dioxide (NO2)
National Ambient Air Quality Standard (NAAQS). Specifically, the EPA is
approving New Mexico's June 25, 2021, SIP revision that address prongs
1 and 2 to ensure that air emissions in the State do not significantly
contribute to nonattainment or interfere with the maintenance of the
2010 1-hour NO2 NAAQS in any other state. The EPA is
approving this action pursuant to section 110 and part D of the CAA and
the EPA's regulations.

DATES: This final rule is effective on September 28, 2022.

ADDRESSES: The EPA has established a docket for this action, Docket No.
EPA-R06-OAR-2021-0772. All documents in the docket are listed on the
https://www.regulations.gov. Although listed in the index, some
information is not publicly available, e.g., Confidential Business
Information or other information whose disclosure is restricted by
statute. Certain other material, such as copyrighted material, is not
placed on the internet and will be publicly available only in hard copy
form. Publicly available docket materials are available electronically
through https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Ms. Nevine Salem, EPA Region 6 Office,
Infrastructure and Ozone Section,<PHONE_NUMBER>, [email protected].
Out of an abundance of caution for members of the public and our staff,
the EPA Region 6 office may be closed to the public to reduce the risk
of transmitting COVID-19. Please call or email the contact listed above
if you need alternative access to material indexed but not provided in
the docket.

SUPPLEMENTARY INFORMATION: Throughout this document wherever ``we,''
``us,'' or ``our'' is used, we mean the EPA.

I. Background

    The EPA published a proposed rule for the approval of New Mexico's,
June 25, 2021, SIP submission to address the 2010 1-hour NO2
NAAQS. The background for this action and rational for EPA's proposed
action are explained in the notice of proposed rulemaking (NPRM) (87 FR
38362, June 28, 2022), and will not be restated here. No comment was
received during the public comment period which ended on July 28, 2022.

II. Final Action

    EPA is approving the New Mexico's June 25, 2021, SIP submission as
satisfying the requirements of CAA

section 110(a)(2)(D)(i)(I) for the 2010 1-hour NO2 NAAQS
interstate transport prongs 1 and 2. New Mexico's SIP submission
includes provisions that ensure emissions from New Mexico will not
significantly contribute to nonattainment or interfere with the
maintenance of the 2010 NO2 NAAQS in any other state. The
EPA is approving this action pursuant to section 110 of the CAA.

III. Environmental Justice Considerations

    Executive Order 12898 (Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations, 59 FR 7629,
Feb. 16, 1994) directs federal agencies to identify and address
``disproportionately high and adverse human health or environmental
effects'' of their actions on minority populations and low-income
populations to the greatest extent practicable and permitted by law.
The EPA defines environmental justice (EJ) as ``the fair treatment and
meaningful involvement of all people regardless of race, color,
national origin, or income with respect to the development,
implementation, and enforcement of environmental laws, regulations, and
policies.'' The EPA further defines the term fair treatment to mean
that ``no group of people should bear a disproportionate burden of
environmental harms and risks, including those resulting from the
negative environmental consequences of industrial, governmental, and
commercial operations or programs and policies.'' \1\
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    \1\ https://www.epa.gov/environmentaljustice/learn-about-environmental-justice.
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    The EPA provided additional analysis of environmental justice
associated with this action for the purpose of providing information to
the public in our June 28, 2022 proposal (87 FR 38362). The EPA's
analysis shown in the proposed action demonstrates that there are no
areas in New Mexico or nationwide that show problems attaining or
maintaining air quality with regard to 2010 NO2 NAAQS. There
is also no indication that NO2 emissions from New Mexico
would contribute to environmental and health impacts on any group,
including minority and low-income population. In addition, the national
average of NO2 concentrations have decreased substantially
over the years.\2\
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    \2\ See https://www.epa.gov/air-trends/nitrogen-dioxide-trends.
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    We therefore believe that this rule will not have
disproportionately high or adverse human health or environmental
effects on communities with environmental justice concerns.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely proposes to approve state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the proposed rule does not have tribal implications and will
not impose substantial direct costs on tribal governments or preempt
tribal law as specified by Executive Order 13175 (65 FR 67249, November
9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a Start Printed Page
11875 copy of the rule, to each House of the Congress and to the
Comptroller General of the United States. EPA will submit a report
containing this action and other required information to the U.S.
Senate, the U.S. House of Representatives, and the Comptroller General
of the United States prior to publication of the rule in the Federal
Register. A major rule cannot take effect until 60 days after it is
published in the Federal Register. This action is not a ``major rule''
as defined by 5 U.S.C. 804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by October 28, 2022. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Nitrogen dioxide, Ozone, Reporting and record keeping
requirements, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: August 23, 2022.
Earthea Nance,
Regional Administrator, Region 6.

    For the reasons stated in the preamble, the EPA amends 40 CFR part
52 as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart GG--New Mexico

0
2. In Sec.  52.1620(e), the table titled ``EPA-Approved Nonregulatory
Provisions and Quasi-Regulatory Measures in the New Mexico SIP'' is
amended by adding the entry ``Interstate Transport for the 2010
NO2 NAAQS'' at the end of the table to read as follows:

Sec.  52.1620  Identification of plan.

* * * * *
    (e) * * *

            EPA-Approved Nonregulatory Provisions and Quasi-Regulatory Measures in the New Mexico SIP
----------------------------------------------------------------------------------------------------------------
                                        Applicable           State
      Name of SIP provision           geographic or       submittal/     EPA approval date       Explanation
                                    nonattainment area  effective date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Interstate Transport for the 2010  Statewide..........       6/25/2021  8/29/2022, [Insert   ...................
 NO2 NAAQS.                                                              Federal Register
                                                                         citation].
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2022-18532 Filed 8-26-22; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 86, Number 16 (Wednesday, January 27, 2021)]
[Notices]
[Pages 7317-7320]
[FR Doc No: 2021-01729]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90960; File No. SR-OCC-2021-002]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Revisions to Part 39 of the Commodity Futures Trading
Commission Regulations

January 21, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 13, 2021, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared primarily by OCC. OCC filed the proposed
rule change pursuant to Section 19(b)(3)(A)(ii) \3\ of the Act and Rule
19b-4(f)(6) \4\ thereunder so that the proposal was effective upon
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change by OCC would amend Interpretation and
Policy (``I&P'') .01 to OCC Rule 602 (Customer-Level Margin
Requirement), add I&P .02 to OCC Rule 602 (Customer-Level Margin
Requirement) and add I&P .01 to OCC Rule 1103 (Notice of Suspension to
Clearing Members) to achieve compliance with recent amendments to Part
39 of the Commodity Futures Trading Commission (``CFTC'') \5\
regulations and facilitate no-action relief issued by CFTC staff.\6\
The proposed changes to OCC Rules are included in Exhibit 5 of File No.
SR-OCC-2021-002. Material proposed to be added to OCC's Rules as
currently in effect is underlined and material proposed to be deleted
is marked in strikethrough text. All capitalized terms not defined
herein have the same meaning as set forth in the OCC By-Laws and
Rules.\7\
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    \5\ Derivatives Clearing Organizations General Provisions and
Core Principles, 85 FR 4800 (January 27, 2020).
    \6\ CFTC Letter No. 19-17, Comm. Fut. L. Rep. ] 34,523 (July 10,
2019). See also CFTC Letter No. 20-28, Comm. Fut. L. Rep. ] 34,798
(September 15, 2020).
    \7\ OCC's By-Laws and Rules can be found on OCC's public
website: https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(1) Purpose
    The purpose of revised I&P .01 to OCC Rule 602 is to achieve
compliance with recent amendments to CFTC Regulation
39.13(g)(8)(ii).\8\ Departing from the historical practice of
establishing distinct minimum initial margin requirements for hedge and
speculative customer accounts,\9\ revised CFTC Regulation
39.13(g)(8)(ii) provides that a derivatives clearing organization
(``DCO'') shall establish a minimum initial margin requirement that
clearing members must charge their customers with respect to each
product and portfolio that is commensurate with the risk presented by
each customer account.\10\ The revised regulation also provides DCOs
reasonable discretion in establishing a higher minimum initial margin
requirement that clearing members must collect for categories of
customers determined by the clearing member to have heightened risk
profiles.\11\ As amended, I&P .01 to Rule 602 will allow OCC to achieve
compliance with CFTC Regulation 39.13(g)(8)(ii) by requiring Clearing
Members to determine which futures customers or categories of futures
customers have heightened risk profiles and to collect, at a minimum,
the amount of initial margin established by OCC for such customers or
categories of customers from time to time. The proposal also eliminates
the existing language in I&P .01 to OCC Rule 602 contemplating distinct
margin requirements for customer hedge and speculative positions.\12\
---------------------------------------------------------------------------

    \8\ 85 FR at 4812 and 4856.
    \9\ See, e.g. 85 FR at 4812.
    \10\ 17 CFR 39.13(g)(8)(ii).
    \11\ Id.
    \12\ OCC plans to distribute information used to calculate the
minimum initial margin requirement for futures customer accounts and
futures customer accounts with heightened risk profiles through a
daily theoretical pricing file that is distributed to Clearing
Members. OCC currently uses a similar approach for information used
to calculate the minimum initial margin requirement for hedge and
speculative positions of futures customers.
---------------------------------------------------------------------------

    OCC also proposes to adopt I&P .02 to OCC Rule 602 to facilitate
no-action relief granted by the CFTC. By way of background, in 2011,
the CFTC adopted Regulation 39.13(g)(8)(iii) requiring each DCO to
prohibit the withdrawal of funds from a customer account unless the
clearing member holds a sufficient amount of the customer's assets to
cover its initial margin requirements with respect to products cleared
by the DCO.\13\ In 2012, OCC adopted Rule 602(b) to satisfy this
requirement.\14\ CFTC staff has issued time-limited no-action relief
pursuant to which a DCO may allow a futures commission merchant
(``FCM'') clearing member to treat the separate accounts of a customer
as accounts of separate entities for purposes of CFTC Regulation
39.13(g)(8)(iii), provided that the clearing member satisfies several
conditions set forth in the letter.\15\ Proposed I&P .02 creates an
exception to OCC Rule 602(b) that allows FCM Clearing Members that
satisfy the conditions established by the CFTC to treat separate
futures customer accounts as accounts of separate entities for purposes
of OCC Rule 602(b).
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    \13\ Derivatives Clearing Organization General Provisions and
Core Principles, 76 FR 69334, 69374 (November 8, 2011).
    \14\ See File No. SR-OCC-2012-006.
    \15\ CFTC Letter No. 19-17, Comm. Fut. L. Rep. ] 34,523 (July
10, 2019) (granting time-limited no-action relief with respect to
CFTC Regulation 39.13(g)(8)(iii) until June 30, 2021). See also CFTC
Letter No. 20-28, Comm. Fut. L. Rep. ] 34,798 (September 15, 2020)
(extending the time-limited no-action relief with respect to CFTC
Regulation 39.13(g)(8)(iii) until December 31, 2021).
---------------------------------------------------------------------------

    Finally, the proposed rule change adds I&P .01 to OCC Rule 1103,
which specifies that OCC will publish a public notice of a decision to
suspend a Clearing Member on its website as soon as reasonably
practical. OCC is adopting this I&P to achieve compliance with CFTC
Regulation 39.16(c)(2)(ii), which requires each DCO to adopt rules
describing the actions a DCO will take upon a default,\16\ which must
include posting a public notice of a declaration of default on the
DCO's website.\17\
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    \16\ CFTC Regulation 39.16(c)(2)(ii) also requires DCOs to adopt
rules providing for the prompt transfer, liquidation, or hedging of
the customer or house positions of the defaulting clearing member,
as applicable. Chapter XI of OCC's Rules addresses this portion of
CFTC Regulation 39.16(c)(2)(ii).
    \17\ 17 CFR 39.16(c)(2)(ii). See also 85 FR at 4815-16 and 4857.
---------------------------------------------------------------------------

    OCC proposes to make the revisions to the I&Ps to OCC Rules 602 and
1103 described above effective on January 27, 2021. This effective date
aligns to the compliance date for the revisions to Part 39 of the CFTC
regulations.\18\
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    \18\ See 85 FR at 4800.
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(2) Statutory Basis
    Section 17A(b)(3)(F) \19\ of the Act requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities and derivatives
transactions and protect investors and the public interest. OCC
believes that the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act.\20\ As noted above, the proposed revision to
I&P .01 to Rule 602 protects investors and the public interest by more
clearly describing which accounts are subject to increased initial
margin requirements. The addition of .02 to OCC Rule 602 will promote
the prompt and accurate clearance and settlement of transactions by
accommodating no-action relief that is intended to help Clearing
Members and their customers realize operational efficiencies for
separate accounts. The proposed addition of I&P .01 to OCC Rule 1103
promotes the public interest by specifying that OCC will publish a
public notice of a decision to suspend a Clearing Member on its
website. The proposal also enables OCC to satisfy certain requirements
set forth in Part 39 of the CFTC regulations and provides for a well-
founded, clear, transparent and enforceable legal basis for its
activities in accordance with SEC Rule 17Ad-22(e)(1).\21\ The proposed
rule change is not inconsistent with the existing rules of OCC,
including any other rules proposed to be amended.
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    \19\ 15 U.S.C. 78q-1(b)(3)(F).
    \20\ 15 U.S.C. 78q-1(b)(3)(F).
    \21\ 17 CFR 240.17Ad-22(e)(1).
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(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act \22\ requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act. OCC does not
believe that the proposed rule change would have any impact or impose a
burden on competition. Although this proposed rule change affects
Clearing Members, their customers, and the markets that OCC serves, OCC
believes that the proposed rule change would not disadvantage or favor
any particular user of OCC's services in relationship to another user
because the proposed amendments apply equally to all users of OCC. OCC
also notes that two of the proposed revisions to OCC Rules are designed
to achieve compliance with amendments to Part 39 of the CFTC
Regulations, and, in adopting these amendments, the CFTC identified no
anticompetitive effects.\23\ Given that the revisions to I&P .01 to OCC
Rule 602 and I&P .01 to OCC Rule 1103 are narrowly tailored to achieve
compliance with regulatory requirements for which no anticompetitive
effects have been identified, OCC does not believe that these
amendments would have any impact or impose a burden on competition. The
addition of I&P .02 to

OCC Rule 602 is intended to facilitate no-action relief related to an
existing market practice and is not expected to have any impact on the
competitive landscape.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78q-1(b)(3)(I).
    \23\ See 85 FR at 4849-50.
---------------------------------------------------------------------------

    While OCC does not believe that the proposal would have any impact
or impose a burden on competition, if any such impact or burden to
competition were to exist, the proposed amendments would still be
necessary to achieve compliance with applicable regulatory requirements
and accommodate no-action relief granted by the CFTC. The amendments
are appropriate, because they are narrowly tailored to achieve
compliance with CFTC Regulations and facilitate no-action relief.
Accordingly, OCC does not believe that the proposed rule change would
have any unnecessary or inappropriate impact or burden on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been 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 \24\ and
Rule 19b-4(f)(6) \25\ thereunder.
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    OCC has requested that the Commission waive the 30-day operative
delay under Rule 19b-4(f)(6)(iii) \26\ so that the proposed rule
changes may become effective and operative effective on January 27,
2021. OCC states that the proposal is intended to achieve compliance
with amendments to Part 39 of the CFTC Regulations, which become
effective on that date. Accordingly, OCC believes that the prompt
implementation of these changes would be consistent with the public
interest and the protection of investors.
---------------------------------------------------------------------------

    \26\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    In adopting CFTC Regulation 39.13(g)(8)(ii), the CFTC noted that
the amendment was consistent with an existing interpretation permitting
DCOs to establish initial margin requirements based on the type of
customer account and by applying prudential standards that result in
FCMs collecting initial margin commensurate with the risk presented by
each customer account.\27\ OCC does not believe that the amendment to
I&P .01 and addition of I&P .02 to Rule 602 would significantly affect
the protection of investors or the public interest as these changes
simply conform the language of OCC's Rules to the applicable CFTC
Regulation and prior interpretive guidance and facilitate no-action
relief that has been granted with respect to an existing practice.
Finally, the addition of I&P .01 to OCC Rule 1103 would not
significantly affect the protection of investors or the public interest
as it codifies OCC's longstanding practice of posting a notice of a
Clearing Member default to its website. The proposed rule change would
not impose any significant burden on competition because, as described
above, the requirements apply to all Clearing Members, do not
disadvantage or favor any particular user of OCC's services in
relationship to another user and achieve compliance with applicable
regulatory requirements for which the CFTC identified no
anticompetitive effects.
---------------------------------------------------------------------------

    \27\ See 85 FR at 4812 citing CFTC Letter No. 12-08 (Sept. 14,
2012). In the relevant section CFTC Letter No. 12-08 provided, ``[A]
DCO may continue the practice of establishing customer initial
margin requirements based on the type of customer account and by
applying prudential standards that result in FCMs collecting
customer initial margin at levels commensurate with the risk
presented by each type of customer account. This is the case even if
the differentiation between accounts is not stated specifically in
terms of `hedge' and `non-hedge' accounts.'' See CFTC Letter 12-08
at 8.
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    The Commission believes that delaying the operation of the proposed
rule change for 30 days would impede OCC's ability to comply with the
CFTC rules by January 27, 2021 because a 30-day delay from the date of
filing would require that the proposed rule change not become operative
until February 12, 2021. The Commission believes, therefore, that
waiving the 30-day operative delay would facilitate OCC's ability to
comply with the CFTC's rules in a timely manner. Moreover, the
Commission believes that the proposed rule change would not
significantly affect the protection of investors or the public interest
or impose a significant burden on competition because the changes would
conform OCC's rules to existing practices as described above. The
Commission designates the proposed rule change as operative on January
27, 2021.
    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.

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-OCC-2021-002 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-OCC-2021-002. 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 OCC and on OCC's website at
https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
    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-OCC-2021-002 and
should be submitted on or before February 17, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-01729 Filed 1-26-21; 8:45 am]
BILLING CODE 8011-01-P