[Federal Register Volume 85, Number 147 (Thursday, July 30, 2020)]
[Notices]
[Pages 45933-45938]
[FR Doc No: 2020-16469]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89391; File No. SR-GEMX-2020-18]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 7,
Section 3

July 24, 2020.
    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 July 14, 2020, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
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 proposes to amend Options 7, Section 3, Regular Order
Fees and Rebates, and Options 7, Section 4, Other Options Fees and
Rebates. The Exchange also proposes an amendment to Options 7, Section
1, General Provisions.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/gemx/rules, 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 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
    GEMX proposes to amend its Pricing Schedule at Options 7, Section
3, Regular Order Fees and Rebates, and Options 7, Section 4, Other
Options Fees and Rebates. The Exchange also proposes an amendment to
Options 7, Section 1, General Provisions. Each amendment is described
below.
Options 7, Section 3
Penny Symbols
    Today, the Exchange assesses Penny Symbol Tier 1 through Tier 3
Taker Fees of $0.50 per contract for all Non-Priority Customers,\3\
Tier 4 and 5 Taker Fees of $0.48 per contract for Market Makers and
Non-Nasdaq GEMX Market Makers (FarMM), and Tier 4 and 5 Taker Fees of
$0.49 per contract for Firm Proprietary/Broker-Dealer and Professional
Customers. Further, today, the Exchange assesses Penny Symbol Taker
Fees for Priority Customers as follows: $0.49 for Tier 1, $0.48 for
Tiers 2 and 3, $0.43 for Tier 4 and $0.42 for Tier 5. Current note 13
provides, with respect to Penny Symbol Tiers 1-5, that Non-Priority
Customer orders will be charged a Taker Fee of $0.50 per contract for
trades executed against a Priority Customer and Priority Customer
orders will be charged a Taker Fee of $0.49 per contract for trades
executed against a Priority Customer.
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    \3\ Non-Priority Customers consist of Market Makers (including
Market Maker orders sent to the Exchange by EAMs), Non-Nasdaq GEMX
Market Makers (FarMM), Firm Proprietary/Broker-Dealers, and
Professional Customers.
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    The Exchange proposes to amend note 13, with respect to Penny
Symbol Tiers 1-5, to instead provide that Non-Priority Customers who
execute less than 4.0% of Customer Total Consolidated Volume will be
charged a Taker Fee of $0.50 per contract for trades executed against a
Priority Customer. Also, Non-Priority Customers who execute 4.0% \4\ or
greater of Customer Total Consolidated Volume will be charged a Taker
Fee of $0.47 per contract for trades executed against a Priority
Customer. All Priority Customer orders will be charged a Taker Fee of
$0.49 per contract for trades executed against a Priority Customer. For
purposes of note 13, Customer Total Consolidated Volume means the total
volume cleared at The Options Clearing Corporation in the Customer
range in equity and ETF options in that month.
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    \4\ The Exchange notes that 4.0% of Customer Total Consolidated
Volume is equivalent to approximately 1,000,000 contracts.
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    Non-Priority Customers, would continue to be charged a $0.50 per
contract Taker Fee, in Tiers 1-5 Penny Symbols, when they trade against
a Priority Customer, provided they execute less than 4.0% of Customer
Total Consolidated Volume. If a Non-Priority Customer executed 4.0% or
greater of Customer Total Consolidated Volume, they will be charged a
Taker Fee, in Tiers 1-5 in Penny Symbols, of $0.47 per contract for
trades executed against a Priority Customer. The addition of the volume
criteria would cause some Non-Priority Customers, who today are
assessed a $0.50 per contract Taker Fee, in Tiers 1-5 Penny Symbols,
when they trade against a Priority Customer, to be assessed a reduced
$0.47 per contract Taker Fee, in Tier 1-5 Penny Symbols, provided they
meet the volume requirement.
    Priority Customer orders will continue to be charged a Taker Fee of
$0.49 per contract, in Tiers 1-5 Penny Symbols, for trades executed
against a Priority Customer. The Exchange believes that this proposal
will continue to attract additional volume to GEMX in order to obtain
more favorable pricing.
Non-Penny Symbols
    The Exchange proposes to increase the Non-Penny Symbol Fees for
Responses to Crossing Orders (excluding PIM) \5\ from $1.00 to $1.10
per contract for all Members. While the Exchange is increasing this fee
for all market participants, the Exchange believes that this fee will
continue to attract order flow to the Exchange.
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    \5\ This fee is $0.05 per contract for all Responses to Crossing
Orders executed in the PIM. See note 12 within Options 7, Section 4.
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    The Exchange proposes to adopt new Tier 5 Maker Rebates in Non-
Penny Symbols (excluding Index Options).\6\ The Exchange proposes to
pay a Market Maker a $0.75 per contract Non-Penny Symbol Tier 5 Maker
Rebate. Non-Nasdaq GEMX Market Makers (FarMM), Firm Proprietary/Broker
Dealers and Professional Customers would not be eligible for a Non-
Penny Symbol Tier 5 Maker Rebate. The Exchange proposes to pay a
Priority Customer a $1.05 per contract Non-Penny Symbol Tier 5 Maker
Rebate. These proposed Non-Penny Symbol Tier 5 Maker Rebates are the
same as rebates paid, today, for Non-Penny Symbol Tier 4 Maker Rebates.
As is the case with Non-Penny Symbol Tier 4 Marker Rebates, Priority
Customers would receive the highest Non-Penny Symbol Tier 5 Maker
Rebate. The

Exchange proposes to add these new Non-Penny Symbol Tier 5 Maker
Rebates for Market Makers and Priority Customers, which are the same as
the Non-Penny Symbol Tier 4 Maker Rebates, to make clear that any
Member that qualifies for a Non-Penny Symbol Tier 5 Maker Rebate would
receive the same rebates offered in Tier 4. The adoption of new Non-
Penny Symbol Tier 5 Maker Rebates will make clear, within the Options
7, Section 3 regular order rebates, that Tier 5 qualifying volume would
attain the same rebates as the Non-Penny Symbol Tier 4 Maker Rebates
today. The proposed Tier 5 Non-Penny Symbol Maker Rebates would have no
impact to Members, but will provide Members with a Tier 5 Non-Penny
Symbol Maker Rebate to refer to for qualifying Tier 5 Maker Rebate
volume in Non-Penny Symbols.\7\
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    \6\ The index options fees apply only to NDX. These fees are
assessed to all executions in NDX.
    \7\ The Tier 5 Qualifying Tier Threshold, for purposes of Total
Affiliated Member % of Customer Total Consolidated Volume, requires
a member to execute 3.5% or greater of Customer Total Consolidated
Volume. The Tier 5 Qualifying Tier Threshold, with respect to
Priority Customer Maker % of Customer Total Consolidated Volume,
requires a member to execute Priority Customer Maker volume of 2.75%
or greater of Customer Total Consolidated Volume.
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    The Exchange proposes to adopt new Tier 5 Taker Fees in Non-Penny
Symbols. The Exchange proposes to assess a Market Maker, a Non-Nasdaq
GEMX Market Maker (FarMM), Firm Proprietary/Broker Dealer and a
Professional Customer a $0.94 per contract Tier 5 Taker Fee in Non-
Penny Symbols. Priority Customers would be assessed an $0.82 per
contract Taker Fee in Non-Penny Symbols. As is the case with Tier 4
Taker Fees in Non-Penny Symbols, Priority Customers would pay the
lowest Non-Penny Symbol Tier 5 Taker Fees. The Exchange proposes to add
these new Non-Penny Symbol Tier 5 Taker Fees, which are the same as the
Non-Penny Symbol Tier 4 Taker Fees, to make clear that any Member that
qualifies for a Non-Penny Symbol Tier 5 Taker Fee would pay the same
fees as Members pay, today, for Non-Penny Symbol Tier 4 Taker Fees. The
adoption of new Non-Penny Symbol Tier 5 Taker Fees will make clear,
within the Options 7, Section 3 regular order fees, that Tier 5
qualifying volume would pay the same fees as the Non-Penny Symbol Tier
4 Taker Fees today. The proposed Tier 5 Non-Penny Symbol Taker Fees
would have no impact to Members, but will provide Members with Tier 5
Non-Penny Symbol Taker Fees to refer to for qualifying Tier 5 Taker Fee
volume in Non-Penny Symbols.\8\
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    \8\ Id.
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    Proposed note 8 within Options 7, Section 3 will be discussed
below.
Options 7, Section 4
    The Exchange proposes to adopt a Crossing Fee Cap within Options 7,
Section 4C. By way of background, Crossing Orders are contracts that
are submitted as part of a Facilitation, Solicitation, Price
Improvement Mechanism (``PIM''), Block or Qualified Contingent Cross
(``QCC'') order. The Exchange proposes to adopt a Crossing Fee Cap
within Options 7, Section 4C, similar to Nasdaq ISE, LLC's crossing fee
cap.\9\ Specifically, the Exchange proposes to adopt a Crossing Fee Cap
of $85,000 per month, per Member on all Firm Proprietary transactions
that are part of the originating or contra side of a Crossing Order.
All eligible volume from affiliated Members would be aggregated for
purposes of the Crossing Fee Cap, provided there is at least 75% common
ownership between the Members as reflected on each Member's Form BD,
Schedule A. Fees charged by the Exchange for Responses to Crossing
Orders would not be included in the calculation of the monthly fee cap.
Surcharge fees charged by the Exchange for licensed products and the
fees for index options as set forth in Options 7, Section 3 would not
be included in the calculation of the monthly fee cap. A service fee of
$0.00 per side would apply to all order types that are eligible for the
fee cap. The service fee would apply once a Member reached the fee cap
level and would apply to every contract side above the fee cap. A
Member who did not reach the monthly fee cap would not be charged the
service fee. Once the fee cap is reached, the service fee would apply
to eligible Firm Proprietary orders in all Nasdaq GEMX products. The
service fee would not be calculated to reach the cap. For purposes of
the Crossing Fee Cap, the Exchange will attribute eligible volume to
the GEMX Member on whose behalf the Crossing Order was executed. The
Exchange believes that the Crossing Fee Cap will cause Members to
execute a greater number of Crossing Orders on GEMX in order to arrive
at the cap and transact orders at no fee.
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    \9\ Nasdaq ISE, LLC has a crossing fee cap within Options 7,
Section 6H of $90,000 per month, per Member.
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    The Exchange also proposes to add a new note 8 within Options 7,
Section 3 to indicate that Firm Proprietary contracts traded are
subject to the Crossing Fee Cap proposed within Options 7, Section 4C.
    Finally, the Exchange proposes to remove the term ``& SPY'' from
Options 7, Section 4, Route-Out Fees. SPY has no separate pricing
within Options 7, Section 3 and SPY is part of the Penny Interval
Program and would otherwise be subject to the pricing applicable to
Penny Symbols. For this reason, the term ``& SPY'' is proposed to be
removed from the Penny title.
Options 7, Section 1
    The Exchange proposes an amendment to Options 7, Section 1, General
Provisions. The Exchange proposes to replace the term ``Penny Pilot
Program'' with ``Penny Interval Program.'' On April 1, 2020 the
Commission approved the amendment to the OLPP to make permanent the
Pilot Program (the ``OLPP Program'').\10\ The Exchange recently filed a
proposal to amend GEMX Options 3, Section 3 to conform the rule to
Section 3.1 of the Plan for the Purpose of Developing and Implementing
Procedures Designed to Facilitate the Listing and Trading of
Standardized Options (the ``OLPP'').\11\ The Exchange's proposal
amended GEMX Options 3, Section 3 to refer to a Penny Interval Program
instead of a Penny Pilot Program. This proposed change to Options 7,
Section 1 conforms the name of the program and removes a reference to a
list of Penny Pilot Program symbols.
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    \10\ See Securities Exchange Act Release No. 88532 (April 1,
2020), 85 FR 19545 (April 7, 2020) (File No. 4-443) (``Approval
Order'').
    \11\ See Securities Exchange Act Release No. 89162 (June 26,
2020) (SR-GEMX-2020-16).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\12\ in general, and furthers the objectives of
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, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(4) and (5).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its

broader forms that are most important to investors and listed
companies.'' \14\
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    \14\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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    Likewise, in NetCoalition v. Securities and Exchange Commission
\15\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of
a market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\16\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \17\
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    \15\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \16\ See NetCoalition, at 534-535.
    \17\ Id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \18\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes that these views apply with equal force to the options
markets.
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    \18\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
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Options 7, Section 3
Penny Symbols
    The Exchange's proposal to amend note 13, within Options 7, Section
4,\19\ is reasonable because the proposal will continue to attract
additional volume to GEMX in order that Members may obtain more
favorable pricing. With this proposal, Non-Priority Customers, would
continue to be charged a $0.50 per contract Taker Fee, in Tiers 1-5
Penny Symbols, when they trade against a Priority Customer and execute
less than 4.0% of Customer Total Consolidated Volume.\20\ Non-Priority
Customers who execute 4.0% or greater of Customer Total Consolidated
Volume will be charged a reduced Taker Fee, in Tiers 1-5 in Penny
Symbols, of $0.47 per contract for trades executed against a Priority
Customer. The addition of the volume criteria would cause some Non-
Priority Customers, who today are assessed a $0.50 per contract Taker
Fee, in Tiers 1-5 Penny Symbols, when they trade against a Priority
Customer, to be assessed a $0.47 per contract Taker Fee, in Tier 1-5
Penny Symbols, provided they meet the volume requirement. With this
proposal Non-Priority Customers would have the opportunity to lower
Taker Fees. Priority Customer orders will continue to be charged a
Taker Fee of $0.49 per contract, in Tiers 1-5 Penny Symbols, for trades
executed against a Priority Customer. Attracting volume to GEMX is
beneficial to all market participants who may interact with that order
flow. The Exchange believes that Members benefit from the additional
liquidity which the Exchange attracts through its favorable pricing
(higher rebates and lower fees) that is offered, today, to Priority
Customers in Penny Symbols. Therefore, the Exchange believes that it is
appropriate, in some cases, to assess a higher Taker Fee for trades
executed against a Priority Customer with this proposal.
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    \19\ The Exchange proposes to amend note 13 within Options 7,
Section 4 to state, ``Non-Priority Customers who execute less than
4.0% of Customer Total Consolidated Volume will be charged a Taker
Fee of $0.50 per contract for trades executed against a Priority
Customer. Non-Priority Customers who execute 4.0% or greater of
Customer Total Consolidated Volume will be charged a Taker Fee of
$0.47 per contract for trades executed against a Priority Customer.
All Priority Customer orders will be charged a Taker Fee of $0.49
per contract for trades executed against a Priority Customer. For
purposes of note 13, Customer Total Consolidated Volume means the
total volume cleared at The Options Clearing Corporation in the
Customer range in equity and ETF options in that month.''
    \20\ Today, the Exchange assesses Penny Symbol Tier 1 through
Tier 3 Taker Fees of $0.50 per contract for all Non-Priority
Customers, Tier 4 and 5 Taker Fees of $0.48 per contract for Market
Makers and Non-Nasdaq GEMX Market Makers (FarMM), and Tier 4 and 5
Taker Fees of $0.49 per contract for Firm Proprietary/Broker-Dealer
and Professional Customers. See Options 7, Section 3.
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    The Exchange's proposal to amend note 13, within Options 7, Section
4, is equitable and not unfairly discriminatory because Non-Priority
Customers would have the opportunity to lower the Taker Fee, in Tiers
1-5 in Penny Symbols, to $0.47 per contract if they execute 4.0% or
greater of Customer Total Consolidated Volume and trade against a
Priority Customer. Priority Customer orders will continue to be charged
a Taker Fee of $0.49 per contract for trades executed against a
Priority Customer. The Exchange's proposal assesses all Non-Priority
Customers a uniform Taker Fee when trading against a Priority Customer,
depending on the percentage of Customer Total Consolidated Volume
Executed. The Exchange notes that Priority Customer volume is assessed
the lowest fees and highest rebates on GEMX because Priority Customer
liquidity benefits all market participants by providing more trading
opportunities, which attracts Market Makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The Exchange believes that it is
equitable and not unfairly discriminatory to assess, in some cases, a
higher Taker Fee to orders that trade against a Priority Customer, or a
Priority Customer that trades against another Priority Customer, as
this proposal is designed to offset the higher rebates and lower fees
offered to Priority Customers.
Non-Penny Symbols
    The Exchange's proposal to increase Non-Penny Symbol Fees for
Responses to Crossing Orders (excluding PIM) \21\ from $1.00 to $1.10
per contract for all Members is reasonable. While the Exchange is
increasing this fee for all market participants, the Exchange believes
that this fee will continue to attract order flow to the Exchange. The
Exchange notes that its Crossing Order Fees remain competitive as GEMX
is proposing a Crossing Fee Cap herein.
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    \21\ This fee is $0.05 per contract for all Responses to
Crossing Orders executed in the PIM. See note 12 within Options 7,
Section 4.
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    The Exchange's proposal to increase Non-Penny Symbol Fees for
Responses to Crossing Orders (excluding PIM) \22\ from $1.00 to $1.10
per contract for all Members is equitable and not unfairly
discriminatory as the Exchange would apply the Non-Penny Symbol Fee for
Responses to Crossing Orders of $1.10 per contract to all Members.
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    \22\ This fee is $0.05 per contract for all Responses to
Crossing Orders executed in the PIM. See note 12 within Options 7,
Section 4.
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    The Exchange's proposal to adopt new Tier 5 Maker Rebates in Non-
Penny Symbols (excluding Index Options) is reasonable.\23\ The Exchange
proposes to add these new Non-Penny Symbol Tier 5 Maker Rebates for
Market Makers and Priority Customers, which are the same as the Non-
Penny Symbol Tier 4 Maker Rebates, to make clear that any Member that
qualifies for a Non-Penny Symbol Tier 5 Maker Rebate would receive the
same rebates offered in Tier 4, today. The adoption of new Non-Penny
Symbol Tier 5 Maker Rebates will make

clear, within Options 7, Section 3 rebates, that Tier 5 qualifying
volume would attain the same rebates as the Non-Penny Symbol Tier 4
Maker Rebates. The proposed Tier 5 Non-Penny Symbol Maker Rebates would
have no impact to Members, but will provide Members with a Tier 5 Non-
Penny Symbol Maker Rebate to refer to for qualifying Tier 5 Maker
Rebate volume in Non-Penny Symbols.\24\ Today, Options 7, Section 3
provides that Tier 5 Qualifying Tier Threshold, for purposes of Total
Affiliated Member % of Customer Total Consolidated Volume, requires a
member to execute 3.5% or greater of Customer Total Consolidated
Volume.
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    \23\ The Exchange proposes to pay a Market Maker a $0.75 per
contract Non-Penny Symbol Tier 5 Maker Rebate. Non-Nasdaq GEMX
Market Makers (FarMM), Firm Proprietary/Broker Dealers and
Professional Customers would not be eligible for a Non-Penny Symbol
Tier 5 Maker Rebate. The Exchange proposes to pay a Priority
Customer a $1.05 per contract Non-Penny Symbol Tier 5 Maker Rebate.
    \24\ The Tier 5 Qualifying Tier Threshold, for purposes of Total
Affiliated Member % of Customer Total Consolidated Volume, requires
a member to execute 3.5% or greater of Customer Total Consolidated
Volume. The Tier 5 Qualifying Tier Threshold, with respect to
Priority Customer Maker % of Customer Total Consolidated Volume,
requires a member to execute Priority Customer Maker volume of 2.75%
or greater of Customer Total Consolidated Volume.
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    The Exchange's proposal to adopt new Tier 5 Maker Rebates in Non-
Penny Symbols (excluding Index Options) is equitable and not unfairly
discriminatory as the addition of the Tier 5 Maker Rebates in Non-Penny
Symbols will have no impact on any Member. The Non-Penny Symbol Tier 5
Maker Rebates would be paid to those Members that submit qualifying
volume on GEMX. All Members that submit qualifying volume are able to
obtain higher rebates and lower fees with more qualifying volume. The
pricing is the same as the Tier 4 Maker Rebates in Non-Penny Symbols,
today, which are the highest rebates achievable for Non-Penny Symbols.
As is the case with Non-Penny Symbol Tier 4 Marker Rebates, Priority
Customers would receive the highest Non-Penny Symbol Tier 5 Maker
Rebates. As has historically been the case, incentivizing Market Makers
and Priority Customers with more favorable Maker Rebates encourages
order flow. Market Makers have different requirements and obligations
to the Exchange that other market participants do not (such as quoting
requirements).\25\ Incentivizing Market Makers to provide greater
liquidity benefits all market participants through the quality of order
interaction. Also, Priority Customer liquidity benefits all market
participants by providing more trading opportunities, which attracts
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
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    \25\ See GEMX Options 2, Section 5.
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    The Exchange's proposal to adopt new Tier 5 Taker Fees in Non-Penny
Symbols is reasonable.\26\ The Exchange proposes to add these new Non-
Penny Symbol Tier 5 Taker Fees, which are the same as the Non-Penny
Symbol Tier 4 Taker Fees, to make clear that any Member that qualifies
for a Non-Penny Symbol Tier 5 Taker Fee would pay the same fees as
Members pay, today, for Non-Penny Symbol Tier 4 Taker Fees. The
adoption of a new Non-Penny Symbol Tier 5 Taker Fee will make clear,
within the Options 7, Section 3 fees, that Tier 5 qualifying volume
would pay the same fees as the Non-Penny Symbol Tier 4 Taker Fees. The
proposed Tier 5 Non-Penny Symbol Taker Fees would have no impact to
Members, but will provide Members with a Tier 5 Non-Penny Symbol Taker
Fee to refer to for qualifying Tier 5 Taker Fee volume in Non-Penny
Symbols.\27\ Today, Options 7, Section 3 provides that Tier 5
Qualifying Tier Threshold, for purposes of Total Affiliated Member % of
Customer Total Consolidated Volume, requires a member to execute 3.5%
or greater of Customer Total Consolidated Volume.
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    \26\ The Exchange proposes to assess a Market Maker, a Non-
Nasdaq GEMX Market Maker (FarMM), Firm Proprietary/Broker Dealer and
a Professional Customer a $0.94 per contract Tier 5 Taker Fee in
Non-Penny Symbols. Priority Customers would be assessed a $0.82 per
contract Taker Fee in Non-Penny Symbols.
    \27\ The Tier 5 Qualifying Tier Threshold, for purposes of Total
Affiliated Member % of Customer Total Consolidated Volume, requires
a member to execute 3.5% or greater of Customer Total Consolidated
Volume. The Tier 5 Qualifying Tier Threshold, with respect to
Priority Customer Maker % of Customer Total Consolidated Volume,
requires a member to execute Priority Customer Maker volume of 2.75%
or greater of Customer Total Consolidated Volume.
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    The Exchange's proposal to adopt new Tier 5 Taker Fees in Non-Penny
Symbols is equitable and not unfairly discriminatory, as the addition
of the Tier 5 Taker Fees in Non-Penny Symbols will have no impact on
any Member. The pricing is the same as the Tier 4 Taker Fees in Non-
Penny Symbols, which are the lowest fees attainable for Non-Penny
Symbol Taker Fees. As is the case with Non-Penny Symbol Tier 4 Taker
Fees, Priority Customers would pay the lowest Non-Penny Symbol Tier 5
Taker Fees.
Options 7, Section 4
    The Exchange's proposal to adopt a Crossing Fee Cap of $85,000
within Options 7, Section 4C and add a new note 8 within Options 7,
Section 3 is reasonable.\28\ The Crossing Fee Cap is intended to reward
Members for executing a high volume of Firm Proprietary Crossing Orders
on the Exchange. Specifically, the Crossing Fee Cap will continue to
potentially lower transaction fees for Members providing liquidity on
the Exchange. Members who reach the fee cap during a month will not
have to pay transactional fees and will instead pay the service fee,
thereby lowering their monthly fees. Charging a service fee is
reasonable because it will allow the Exchange to recoup the costs
incurred in providing certain services, which include trade matching
and processing, post trade allocation, submission for clearing and
customer service activities related to trading activity on the
Exchange. The Exchange believes that the Crossing Fee Cap will benefit
all Members and investors that trade on the Exchange as it will provide
additional opportunities for market participants to interact with this
Crossing Order Flow, contributing to a robust and competitive market.
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    \28\ As proposed within Options 7, Section 4C, Fees are capped
at $85,000 per month, per Member on all Firm Proprietary
transactions that are part of the originating or contra side of a
Crossing Order. Crossing Orders are contracts that are submitted as
part of a Facilitation, Solicitation, PIM, Block or QCC order. All
eligible volume from affiliated Members will be aggregated for
purposes of the Crossing Fee Cap, provided there is at least 75%
common ownership between the Members as reflected on each Member's
Form BD, Schedule A. Fees charged by the Exchange for Responses to
Crossing Orders are not included in the calculation of the monthly
fee cap. Surcharge fees charged by the Exchange for licensed
products and the fees for index options as set forth in Options 7,
Section 3 are not included in the calculation of the monthly fee
cap. A service fee of $0.00 per side will apply to all order types
that are eligible for the fee cap. The service fee shall apply once
a Member reaches the fee cap level and shall apply to every contract
side above the fee cap. A Member who does not reach the monthly fee
cap will not be charged the service fee. Once the fee cap is
reached, the service fee shall apply to eligible Firm Proprietary
orders in all Nasdaq GEMX products. The service fee is not
calculated in reaching the cap. For purposes of the Crossing Fee
Cap, the Exchange will attribute eligible volume to the GEMX Member
on whose behalf the Crossing Order was executed.
---------------------------------------------------------------------------

    The Exchange's proposal to adopt a Crossing Fee Cap of $85,000
within Options 7, Section 4C and add a new note 8 within Options 7,
Section 3 is equitable and not unfairly discriminatory as all Members
are eligible for the Crossing Fee Cap. The Crossing Fee Cap would apply
uniformly to all Members engaged in Firm Proprietary trading in options
classes traded on the Exchange. The Exchange believes there is nothing
impermissible about offering the Crossing Fee Cap solely to Firm
Proprietary transactions given that this practice is consistent with
fee caps in

place on ISE.\29\ As a matter of practice, Members submitting Firm
Proprietary orders are most likely to use the Crossing Fee Cap.
Furthermore, to the extent the Crossing Fee Cap provides an incentive
for Firm Proprietary orders to transact order flow on the Exchange,
such order flow brings increased liquidity to the benefit of all market
participants. The service fee would be assessed uniformly on all
Members.
---------------------------------------------------------------------------

    \29\ Nasdaq ISE, LLC has a crossing fee cap within Options 7,
Section 6H of $90,000 per month, per Member.
---------------------------------------------------------------------------

    The Exchange's proposal to remove the term ``& SPY'' from Options
7, Section 4, Route-Out Fee, is reasonable, equitable and not unfairly
discriminatory. SPY has no separate pricing within Options 7, Section 3
and SPY is part of the Penny Interval Program and would otherwise be
subject to the pricing applicable to Penny Symbols.
Options 7, Section 1
    The Exchange's proposal to amend Options 7, Section 1 to replace
the term ``Penny Pilot Program'' with ``Penny Interval Program'' and
remove a reference to a list of Penny Pilot Program symbols is
reasonable, equitable and not unfairly discriminatory. This amendment
seeks to conform the name of the program which governs the listing of
certain standardized options and remove an obsolete table which linked
to a list of pilot symbols.

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 not necessary or appropriate in
furtherance of the purposes of the Act.
Intermarket Competition
    The proposal does not impose an undue burden on intermarket
competition. The Exchange believes its proposal remains competitive
with other options markets and will offer market participants with
another choice of where to transact options. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges that have been exempted from compliance with the statutory
standards applicable to exchanges. Because competitors are free to
modify their own fees in response, and because market participants may
readily adjust their order routing practices, the Exchange believes
that the degree to which fee changes in this market may impose any
burden on competition is extremely limited.
Intramarket Competition
    The proposed amendments do not impose an undue burden on
intramarket competition.
Options 7, Section 3
Penny Symbol
    The Exchange's proposal to amend note 13, within Options 7, Section
4, does not impose an undue burden on competition because Non-Priority
Customers would have the opportunity to lower the Taker Fee, in Tiers
1-5 in Penny Symbols, to $0.47 per contract if they execute 4.0% or
greater of Customer Total Consolidated Volume and trade against a
Priority Customer. Priority Customer orders will continue to be charged
a Taker Fee of $0.49 per contract for trades executed against a
Priority Customer. The Exchange's proposal assesses all Non-Priority
Customers a uniform Taker Fee when trading against a Priority Customer,
depending on the percentage of Customer Total Consolidated Volume
Executed. The Exchange notes that Priority Customer volume is assessed
the lowest fees and highest rebates on GEMX because Priority Customer
liquidity benefits all market participants by providing more trading
opportunities, which attracts Market Makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The Exchange believes that it does
not impose an undue burden on competition to assess, in some cases, an
increased Taker Fee to orders that trade against a Priority Customer,
or a Priority Customer that trades against another Priority Customer,
as this proposal is designed to offset the higher rebates and lower
fees offered to Priority Customers.
Non-Penny Symbol
    The Exchange's proposal to increase the Non-Penny Symbol Fee for
Responses to Crossing Orders (excluding PIM) \30\ from $1.00 to $1.10
per contract for all Members does not impose an undue burden on
competition as the Exchange would apply the Non-Penny Symbol Fee for
Responses to Crossing Orders of $1.10 per contract to all Members.
---------------------------------------------------------------------------

    \30\ This fee is $0.05 per contract for all Responses to
Crossing Orders executed in the PIM. See note 12 within Options 7,
Section 4.
---------------------------------------------------------------------------

    The Exchange's proposal to adopt new Tier 5 Maker Rebates in Non-
Penny Symbols (excluding Index Options) does not impose an undue burden
on competition as the addition of the Tier 5 Maker Rebates in Non-Penny
Symbols will have no impact on any Member. The Non-Penny Symbol Tier 5
Maker Rebates would be paid to those Members that submit qualifying
volume on GEMX. All Members that submit qualifying volume are able to
obtain higher rebates and lower fees with more qualifying volume. The
pricing is the same as the Tier 4 Maker Rebates in Non-Penny Symbols,
today, which are the highest rebates achievable for Non-Penny Symbols.
As is the case with Non-Penny Symbol Tier 4 Marker Rebates, Priority
Customers would receive the highest Non-Penny Symbol Tier 5 Maker
Rebates. As has historically been the case, incentivizing Market Makers
and Priority Customers with more favorable Maker Rebates encourages
order flow. Market Makers have different requirements and obligations
to the Exchange that other market participants do not (such as quoting
requirements).\31\ Incentivizing Market Makers to provide greater
liquidity benefits all market participants through the quality of order
interaction. Also, Priority Customer liquidity benefits all market
participants by providing more trading opportunities, which attracts
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
---------------------------------------------------------------------------

    \31\ See GEMX Options 2, Section 5.
---------------------------------------------------------------------------

    The Exchange's proposal to adopt new Tier 5 Taker Fees in Non-Penny
Symbols does not impose an undue burden on competition as the addition
of the Tier 5 Taker Fees in Non-Penny Symbols will have no impact on
any Member. The pricing is the same as the Tier 4 Taker Fees in Non-
Penny Symbols, which are the lowest fees attainable for Non-Penny
Symbol Taker Fees. As is the case with Non-Penny Symbol Tier 4 Taker
Fees, Priority Customers would pay the lowest Non-Penny Symbol Tier 5
Taker Fees.
Options 7, Section 4
    The Exchange's proposal to adopt a Crossing Fee Cap of $85,000
within Options 7, Section 4C and add a new note 8 within Options 7,
Section 3 does not impose an undue burden on

competition as all Members are eligible for the Crossing Fee Cap. The
Crossing Fee Cap would apply uniformly to all Members engaged in Firm
Proprietary trading in options classes traded on the Exchange. The
Exchange believes there is nothing impermissible about offering the
Crossing Fee Cap solely to Firm Proprietary transactions given that
this practice is consistent with fee caps in place on ISE.\32\
Furthermore, to the extent the Crossing Fee Cap provides an incentive
for Firm Proprietary orders to transact order flow on the Exchange,
such order flow brings increased liquidity to the benefit of all market
participants. The service fee would be assessed uniformly on all
Members.
---------------------------------------------------------------------------

    \32\ Nasdaq ISE, LLC has a crossing fee cap within Options 7,
Section 6H of $90,000 per month, per Member.
---------------------------------------------------------------------------

    The Exchange's proposal to remove the term ``& SPY'' from Options
7, Section 4, Route-Out Fee, does not impose an undue burden on
competition. SPY has no separate pricing within Options 7, Section 3
and SPY is part of the Penny Interval Program and would otherwise be
subject to the pricing applicable to Penny Symbols.
Options 7, Section 1
    The Exchange's proposal to amend Options 7, Section 1 to replace
the term ``Penny Pilot Program'' with ``Penny Interval Program'' and
remove a reference to a list of Penny Pilot Program symbols does not
impose an undue burden on competition. This amendment seeks to conform
the name of the program which governs the listing of certain
standardized options and remove an obsolete table which linked to a
list of pilot symbols.

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

    No written comments were either solicited or 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,\33\ and Rule 19b-4(f)(2) \34\ thereunder.
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: (i) Necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) 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.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \34\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-GEMX-2020-18 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-GEMX-2020-18. 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 the 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-GEMX-2020-18 and should be submitted on
or before August 20, 2020.
---------------------------------------------------------------------------

    \35\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-16469 Filed 7-29-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 32 (Friday, February 17, 2017)]
[Notices]
[Pages 11043-11044]
[FR Doc No: 2017-03176]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2017-N-0001]

Food and Drug Administration/Xavier University PharmaLink
Conference--Leadership in a Global Supply Chain

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of public conference.

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

SUMMARY: The Food and Drug Administration (FDA) Cincinnati District, in
co-sponsorship with Xavier University, is announcing a public
conference entitled ``FDA/Xavier University PharmaLink Conference:
Leadership in a Global Supply Chain.'' The PharmaLink conference seeks
solutions to important and complicated issues by aligning with the
strategic priorities of FDA, and includes presentations from key FDA
officials and industry experts.

DATES: The public conference will be held on March 15, 2017, from 8:30
a.m. to 5 p.m.; March 16, 2017, from 8:30 a.m. to 5 p.m.; and March 17,
2017, from 8:30 a.m. to 12:20 p.m. The conference is preceded by a
Welcome Reception on March 14, 2017, from 5 p.m. to 7 p.m. See the
SUPPLEMENTARY INFORMATION section for registration date and
information.

ADDRESSES: The public conference will be held on the campus of Xavier
University, 3800 Victory Pkwy., Cincinnati, OH 45207,<PHONE_NUMBER> or
513-745-3483.

FOR FURTHER INFORMATION CONTACT:
    For information regarding this notice: Nicholas Paulin, Food and
Drug Administration, Cincinnati South Office, 36 East 7th St.,
Cincinnati, OH 45202,<PHONE_NUMBER>, email<EMAIL_ADDRESS>    For information regarding the conference and registration: Marla
Phillips, Xavier University, 3800 Victory Pkwy., Cincinnati, OH 45207-
5471,<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    The public conference helps fulfill the Department of Health and
Human Services' and FDA's important mission to protect the public
health. The most pressing challenges of the global pharmaceutical
industry require solutions which are inspired by collaboration to
ensure the on-going health and safety of patients. These challenges
include designing products with the patient in mind, building quality
into the product from the starting point, selecting the right
suppliers, and considering total product lifecycle systems. Meeting
these challenges requires vigilance, innovation, supply chain strategy,
relationship management, proactive change management, and a commitment
to doing the job right the first time. FDA has made education of the
drug and device manufacturing community a high priority to help ensure
the quality of FDA-regulated drugs and devices.
    The conference helps to achieve objectives set forth in section 406
of the Food and Drug Administration Modernization Act of 1997 (21
U.S.C. 393), which includes working closely with stakeholders and
maximizing the availability and clarity of information to stakeholders
and the public. The conference also is consistent with the Small
Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121)
by providing outreach activities by Government Agencies to small
businesses.
    The conference includes the following:
     Welcome Reception at the Hilton Netherland Plaza.
     Lunch Networking by Topic.
     The Solution ``Xchange''.
     Case Studies and Small Group Discussions.
     Action Plans.

II. Topics for Discussion at the Public Conference

    The public conference will engage those involved in FDA-regulated
global supply chain quality and management through the following
topics:
     FDA Metrics Program--Path Forward to Reduce Risks Within
FDA and Across Industry.
     Predictive Capabilities Through a Living Metrics Model.
     How Big Data and Artificial Intelligence Can Enhance Your
Proactive Risk Monitoring Programs.
     Connecting Culture to Performance.
     Data Integrity--Detection and Successful Practices.
     Building a Bridge Across Generations.
     Good Supply Practices (GSPs)--Paradigm Shifting Solutions.
     How to Develop and Execute a Robust Risk-Based Due
Diligence Plan.
     Maximizing Post-Merger Success.
     Your Company Bought a New Business--Now What?
     Supply Chains in China--Strategies for Regulatory Success.
     Top 3 Challenges for Successful Serialization
Implementation Across Your Supply Chain.
     Strategic Direction of the Food & Drug Administration,
Center for Drug Evaluation and Research (CDER), Office of Manufacturing
Quality.
     Office of Regulatory Affairs Key Initiatives.
     FDA Investigator Case Study Insights.

III. Registration for the Public Conference

    Registration: To register online for the public conference, please
visit the ``Registration'' link on the conference Web site at http://www.XavierPharmaLink.com. Please provide complete contact information
for each attendee, including name, title, affiliation, address, email,
and telephone. FDA has verified the Web site address in this document,
as of the date this document publishes in the Federal Register, but Web
sites are subject to change over time.
    To register by mail, please send your name, title, firm name,
address, telephone and fax numbers, email, and payment information for
the fee to Xavier University, Attention: Marla Phillips, 3800 Victory
Pkwy., Cincinnati, OH 45207-5471. An email will be sent confirming your
registration.
    If you need special accommodations due to a disability, please
contact Marla Phillips (see FOR FURTHER INFORMATION CONTACT) at least 7
days in advance of the conference.
    There is a registration fee. The conference registration fees cover
the cost of the presentations, training materials, receptions,
breakfasts, lunches, and dinners for the 2.5 days of the conference,
including the Welcome Reception that precedes the conference. There
will be onsite registration if space is available. The cost of
registration is as follows:

                     Table 1--Registration Fees \1\
------------------------------------------------------------------------
                                                               Standard
                       Attendee type                             rate
------------------------------------------------------------------------
Industry...................................................       $1,895
Small Business (<100 employees)............................        1,295
Start-up Manufacturer......................................          300
Academic...................................................          300
Media......................................................         Free

Government.................................................         Free
------------------------------------------------------------------------
\1\ The fourth registration from the same company is free. Payment for
  the three paying registrants must be made prior to registering the
  fourth person free.

The following forms of payment will be accepted: American Express,
Visa, Mastercard, and company checks.
    Attendees are responsible for their own accommodations. The
conference headquarter hotel is the Downtown Cincinnati Hilton
Netherlands Plaza, 35 West 5th St., Cincinnati, OH 45202,<PHONE_NUMBER>.
To make reservations online, please visit the ``Venue & Logistics''
link at http://www.XavierPharmaLink.com. The hotel is expected to sell
out during this timeframe, so early reservation in the conference room-
block is encouraged.

    Dated: February 13, 2017.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2017-03176 Filed 2-16-17; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 82, Number 139 (Friday, July 21, 2017)]
[Notices]
[Page 33908]
[FR Doc No: 2017-15382]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9964-92-Region 6]

Underground Injection Control Program; Hazardous Waste Injection
Restrictions; Petition for Exemption Reissuance--Class I Hazardous
Waste Injection; Vopak Logistics Services USA Inc. Deer Park, Texas

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of a final decision on a UIC no migration petition
reissuance.

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

SUMMARY: Notice is hereby given that a reissuance of an exemption to
the Land Disposal Restrictions, under the 1984 Hazardous and Solid
Waste Amendments to the Resource Conservation and Recovery Act, has
been granted to Vopak for one Class I hazardous waste injection well
located at their Deer Park, Texas facility. The company has adequately
demonstrated to the satisfaction of the Environmental Protection Agency
by the petition reissuance application and supporting documentation
that, to a reasonable degree of certainty, there will be no migration
of hazardous constituents from the injection zone for as long as the
waste remains hazardous. This final decision allows the underground
injection by Vopak of the specific restricted hazardous wastes
identified in this exemption reissuance, into Class I hazardous waste
injection Well WDW-157 until December 31, 2030, unless EPA moves to
terminate this exemption or other petition condition limitations are
reached. Additional conditions included in this final decision may be
reviewed by contacting the Region 6 Ground Water/UIC Section. A public
notice was issued May 3, 2017, and the public comment period closed on
June 19, 2017, and no comments were received. This decision constitutes
final Agency action and there is no Administrative appeal. This
decision may be reviewed/appealed in compliance with the Administrative
Procedure Act.

DATES: This action is effective as of June 23, 2017.

ADDRESSES: Copies of the petition reissuance and all pertinent
information relating thereto are on file at the following location:
Environmental Protection Agency, Region 6, Water Division, Safe
Drinking Water Branch (6WQ-S), 1445 Ross Avenue, Dallas, Texas 75202-
2733.

FOR FURTHER INFORMATION CONTACT: Philip Dellinger, Chief Ground Water/
UIC Section, EPA--Region 6, telephone<PHONE_NUMBER>.

    Dated: June 23, 2017.
William K. Honker,
Director, Water Division.
[FR Doc. 2017-15382 Filed 7-20-17; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)]
[Rules and Regulations]
[Pages 23364-23365]
[FR Doc No: 2018-10749]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2018-0266]
RIN 1625-AA00

Safety Zone; Grosse Pointe War Memorial Red, White, and Blue Gala
Fireworks, Lake St. Clair, Grosse Pointe, MI

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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

SUMMARY: The Coast Guard is establishing a temporary safety zone for
navigable waters within a 420-foot radius of a portion of Lake St.
Clair, Grosse Point, MI. This zone is necessary to protect spectators
and vessels from potential hazards associated with the Grosse Pointe
War Memorial Red, White, and Blue Gala Fireworks.

DATES: This temporary final rule is effective from 9 p.m. through 10
p.m. (EDT) on May 24, 2018.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to http://www.regulations.gov, type USCG-
2018-0266 in the ``SEARCH'' box and click ``SEARCH.'' Click on Open
Docket Folder on the line associated with this rule.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary rule, call or email Tracy Girard, Prevention Department,
Sector Detroit, Coast Guard; telephone<PHONE_NUMBER>, or email
[email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
COTP Captain of the Port Detroit
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    The Coast Guard is issuing this temporary rule without prior notice
and opportunity to comment pursuant to authority under section 4(a) of
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because doing so would be impracticable. The
Coast Guard did not receive the final details of this fireworks display
in time to publish an NPRM. As such, it is impracticable to publish an
NPRM because we lack sufficient time to provide a reasonable comment
period and then consider those comments before issuing the rule.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying the effective date of
this rule would inhibit the Coast Guard's ability to protect
participants, mariners and vessels from the hazards associated with
this event.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 33 U.S.C.
1231. The Captain of the Port Detroit (COTP) has determined that
potential hazard associated with fireworks from 9 p.m. to 10 p.m. on
May 24, 2018 will be a safety concern to anyone within a 420-foot
radius of the launch site. This rule is needed to protect personnel,
vessels, and the marine environment in the navigable waters within the
safety zone while the fireworks are being displayed.

IV. Discussion of the Rule

    This rule establishes a safety zone from 9 p.m. through 10 p.m. on
May 24, 2018. The safety zone will encompass all U.S. navigable waters
of Lake St. Clair, Harrison Twp, MI, within a 420-foot radius of
position 42[deg]23.132' N, 082[deg]53.740' W (NAD 83). No vessel or
person will be permitted to enter the safety zone without obtaining
permission from the COTP or a designated representative.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders, and we
discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This rule has not been
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, this rule has not been reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt
from the requirements of Executive Order 13771.
    This regulatory action determination is based on the size,
location, duration, and time-of-year of the safety zone. Vessel traffic
will be able to safely transit around this safety zone which will
impact a small designated area of Lake St. Clair from 9 p.m. to 10 p.m.
on May 24, 2018. Moreover, the Coast Guard will issue Broadcast Notice
to Mariners (BNM) via VHF-FM marine channel 16 about the zone and the
rule allows vessels to seek permission to enter the zone.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions

with populations of less than 50,000. The Coast Guard certifies under 5
U.S.C. 605(b) that this rule will not have a significant economic
impact on a substantial number of small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this rule has implications for federalism or Indian tribes,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section above.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Directive 023-01 and Commandant Instruction M16475.1D, which guide the
Coast Guard in complying with the National Environmental Policy Act of
1969 (42 U.S.C. 4321-4370f), and have determined that this action is
one of a category of actions that do not individually or cumulatively
have a significant effect on the human environment. This rule involves
a safety zone lasting one hour that will prohibit entry into a
designated area. It is categorically excluded from further review under
paragraph L60(a) of Appendix A, Table 1 of DHS Instruction Manual 023-
01-001-01, Rev. 01. A Record of Environmental Consideration supporting
this determination is available in the docket where indicated under
ADDRESSES.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-
1, 6.04-6, and 160.5; Department of Homeland Security Delegation No.
0170.1.

0
2. Add Sec.  165.T09-0266 to read as follows:

Sec.  165.T09-0266   Safety Zone; Grosse Pointe War Memorial Red,
White, and Blue Gala Fireworks, Lake St. Clair, Grosse Pointe, MI.

    (a) Location. A safety zone is established to include all U.S.
navigable waters of Lake St. Clair, Harrison Twp, within a 420-foot
radius of position 42[deg]23.132' N, 082[deg]53.740' W (NAD 83).
    (b) Enforcement period. The regulated area described in paragraph
(a) of this section will be enforced from 9 p.m. through 10 p.m. on May
24, 2018.
    (c) Regulations. (1) No vessel or person may enter, transit
through, or anchor within the safety zone unless authorized by the
Captain of the Port Detroit (COTP), or his on-scene representative.
    (2) The safety zone is closed to all vessel traffic, except as may
be permitted by the COTP or his on-scene representative.
    (3) The ``on-scene representative'' of COTP is any Coast Guard
commissioned, warrant or petty officer or a Federal, State, or local
law enforcement officer designated by or assisting the Captain of the
Port Detroit to act on his behalf.
    (4) Vessel operators shall contact the COTP or his on-scene
representative to obtain permission to enter or operate within the
safety zone. The COTP or his on-scene representative may be contacted
via VHF Channel 16 or at<PHONE_NUMBER>. Vessel operators given
permission to enter or operate in the regulated area must comply with
all directions given to them by the COTP or his on-scene
representative.

    Dated: May 3, 2018.
Jeffrey W. Novak,
Captain, U.S. Coast Guard, Captain of the Port Detroit.
[FR Doc. 2018-10749 Filed 5-18-18; 8:45 am]
 BILLING CODE 9110-04-P


Sector Actual Permits Estimated Active Permits Activity Selected Parameters Monitoring Costs Per Facility Annuall Increased Total for All Facilities in Subsector Cost Effective High Cost Effective High A 130 12 1 TSS $ 40 $ 40 $ 480 $ 480 12 2 TSS $ 40 $ 40 $ 480 $ 480 12 3 COD, TSS, Zinc $ 156 $ 168 $ 1,872 $ 2,016 12 4 COD, TSS $ 116 $ 116 $ 1,392 $ 1,392 12 5 COD, TSS $ 116 $ 116 $ 1,392 $ 1,392 12 6 COD, TSS $ 116 $ 116 $ 1,392 $ 1,392 12 7 COD, TSS $ 116 $ 116 $ 1,392 $ 1,392 12 8 COD, TSS $ 116 $ 116 $ 1,392 $ 1,392 12 9 Arsenic, Chromium, Copper, Phenols, TSS $ 240 $ 276 $ 2,880 $ 3,312 11 10 COD, TSS $ 116 $ 116 $ 1,276 $ 1,276 11 11 COD, TSS $ 116 $ 116 $ 1,276 $ 1,276 B 95 19 1 TSS $ 40 $ 40 $ 760 $ 760 19 2 TSS $ 40 $ 40 $ 760 $ 760 19 3 TSS, COD $ 116 $ 116 $ 2,204 $ 2,204 19 4 TSS $ 40 $ 40 $ 760 $ 760 19 5 TSS $ 40 $ 40 $ 760 $ 760 C 106 11 1 TSS, Al, Fe, NO3, Zn $ 236 $ 272 $ 2,596 $ 2,992 11 2 TSS, Zn $ 80 $ 92 $ 880 $ 1,012 11 3 TSS $ 40 $ 40 $ 440 $ 440 11 4 TSS, Nitrate, Zn $ 156 $ 168 $ 1,716 $ 1,848 11 5 TSS $ 40 $ 40 $ 440 $ 440 10 6 TSS $ 40 $ 40 $ 400 $ 400 11 7 Lead, Iron, Zinc, Phosphate, Nitrate, TSS $ 276 $ 324 $ 3,036 $ 3,564 10 8 TSS $ 40 $ 40 $ 400 $ 400 10 9 TSS $ 40 $ 40 $ 400 $ 400 10 10 TSS $ 40 $ 40 $ 400 $ 400 D 146 49 1 TSS $ 40 $ 40 $ 1,960 $ 1,960 49 2 TSS $ 40 $ 40 $ 1,960 $ 1,960 48 3 TSS $ 40 $ 40 $ 1,920 $ 1,920 E 232 26 1 TSS $ 40 $ 40 $ 1,040 $ 1,040 26 2 TSS $ 40 $ 40 $ 1,040 $ 1,040 26 3 TSS $ 40 $ 40 $ 1,040 $ 1,040 26 4 TSS $ 40 $ 40 $ 1,040 $ 1,040 26 5 TSS, Al, $ 80 $ 92 $ 2,080 $ 2,392 26 6 TSS, Al, $ 80 $ 92 $ 2,080 $ 2,392 26 7 TSS, Iron $ 80 $ 92 $ 2,080 $ 2,392 25 8 TSS $ 40 $ 40 $ 1,000 $ 1,000 25 9 TSS $ 40 $ 40 $ 1,000 $ 1,000 F 78 11 1 TSS, Al, Zn $ 120 $ 144 $ 1,320 $ 1,584 12 2 Al, Iron, Zn, Copper, TSS $ 200 $ 264 $ 2,400 $ 3,168 11 3 TSS $ 40 $ 40 $ 440 $ 440 11 4 TSS $ 40 $ 40 $ 440 $ 440 11 5 Copper, TSS, Zn $ 120 $ 144 $ 1,320 $ 1,584 11 6 Copper, TSS, Zn $ 120 $ 144 $ 1,320 $ 1,584 11 7 TSS $ 40 $ 40 $ 440 $ 440 G 83 41 1 TSS, Nitrate, COD $ 192 $ 192 $ 7,872 $ 7,872 42 2 Antimony, Arsenic, Beryllium, Cadmium, Copper, Iron, Hardness, Lead, Manganese, Mercury, Nickel, pH, Selenium, Sb, Silver, TSS, Turbidity, Zinc $ 820 $ 932 $ 34,440 $ 39,144 H 11 11 1 TSS, Al, Fe, $ 0 $ 0 $ 0 $ 0 I 196 49 1 TSS $ 40 $ 40 $ 1,960 $ 1,960 49 2 TSS $ 40 $ 40 $ 1,960 $ 1,960 49 3 TSS $ 40 $ 40 $ 1,960 $ 1,960 49 4 TSS, Pb, Ni, Zn, Ammonia, Nitrate $ 312 $ 348 $ 15,288 $ 17,052 J 268 39 1 TSS $ 40 $ 40 $ 1,560 $ 1,560 39 2 TSS $ 40 $ 40 $ 1,560 $ 1,560 38 3 TSS $ 0 $ 0 $ 0 $ 0 38 4 TSS $ 40 $ 40 $ 1,520 $ 1,520 38 5 TSS $ 40 $ 40 $ 1,520 $ 1,520 38 6 TSS $ 40 $ 40 $ 1,520 $ 1,520 38 7 TSS $ 40 $ 40 $ 1,520 $ 1,520 K 31 31 1 Cadmium, Cyanide, Lead, Magnesium, Mercury, Selenium, Silver, TSS $ 532 $ 624 $ 16,492 $ 19,344 L 123 123 1 TSS, Fe $ 80 $ 92 $ 9,840 $ 11,316 M 262 262 1 Al, Iron, Lead, TSS $ 160 $ 196 $ 41,920 $ 51,352 N 205 205 1 Lead, TSS, COD, Al, Cu, Fe, Pb, Zn $ 89 $ 107 $ 18,245 $ 21,935 O 68 68 1 TSS, Iron $ 80 $ 92 $ 5,440 $ 6,256 P 470 94 1 TSS $ 40 $ 40 $ 3,760 $ 3,760 94 2 TSS $ 40 $ 40 $ 3,760 $ 3,760 94 3 TSS $ 40 $ 40 $ 3,760 $ 3,760 94 4 TSS $ 40 $ 40 $ 3,760 $ 3,760 94 5 TSS $ 40 $ 40 $ 3,760 $ 3,760 Q 37 37 1 Al, Iron, Lead, TSS, Zinc $ 200 $ 248 $ 7,400 $ 9,176 R 49 49 1 TSS $ 40 $ 40 $ 1,960 $ 1,960 S 400 400 1 BOD, TSS $ 116 $ 116 $ 46,400 $ 46,400 T 96 96 1 TSS $ 40 $ 40 $ 3,840 $ 3,840 U 67 7 1 TSS $ 40 $ 40 $ 280 $ 280 7 2 TSS $ 40 $ 40 $ 280 $ 280 7 3 TSS $ 40 $ 40 $ 280 $ 280 7 4 TSS $ 40 $ 40 $ 280 $ 280 7 5 TSS $ 40 $ 40 $ 280 $ 280 7 6 TSS $ 40 $ 40 $ 280 $ 280 7 7 TSS, BOD5, COD, Nitrate $ 268 $ 268 $ 1,876 $ 1,876 6 8 TSS $ 40 $ 40 $ 240 $ 240 6 9 TSS $ 40 $ 40 $ 240 $ 240 6 10 TSS $ 40 $ 40 $ 240 $ 240 V 37 13 1 TSS $ 40 $ 40 $ 520 $ 520 12 2 TSS $ 40 $ 40 $ 480 $ 480 12 3 TSS $ 40 $ 40 $ 480 $ 480 W 9 5 1 TSS $ 40 $ 40 $ 200 $ 200 4 1 TSS $ 40 $ 40 $ 160 $ 160 X 25 25 1 TSS $ 40 $ 40 $ 1,000 $ 1,000 Y 111 12 1 TSS, Zn $ 80 $ 92 $ 960 $ 1,104 11 2 TSS, Zn $ 80 $ 92 $ 880 $ 1,012 11 3 TSS, Zn $ 80 $ 92 $ 880 $ 1,012 11 4 TSS, Zn $ 80 $ 92 $ 880 $ 1,012 11 5 TSS $ 40 $ 40 $ 440 $ 440 11 6 TSS $ 40 $ 40 $ 440 $ 440 11 7 TSS $ 40 $ 40 $ 440 $ 440 11 8 TSS $ 40 $ 40 $ 440 $ 440 11 9 TSS $ 40 $ 40 $ 440 $ 440 11 10 TSS $ 40 $ 40 $ 440 $ 440 Z 4 4 1 TSS $ 40 $ 40 $ 160 $ 160 AA 104 52 1 Al, Nitrate, Iron, TSS, Zinc $ 236 $ 272 $ 12,272 $ 14,144 52 2 TSS, Zinc, Nitrate $ 168 $ 180 $ 8,736 $ 9,360 AB 91 46 1 TSS $ 40 $ 40 $ 1,840 $ 1,840 45 2 TSS $ 40 $ 40 $ 1,800 $ 1,800 AC 110 37 1 TSS $ 40 $ 40 $ 1,480 $ 1,480 37 2 TSS, Cu, Lead $ 120 $ 144 $ 4,440 $ 5,328 36 3 TSS $ 40 $ 40 $ 1,440 $ 1,440 AD 12 12 1 TSS $ 40 $ 40 $ 480 $ 480 3656 3656 Total First Year Burden ( all facilities) = $ 346,117 $ 380,811 Aluminum is assumed to cost 10 in low and 13 in high Arsenic is assumed to cost 10 in low and 13 in high BOD5 is assumed to cost $ 19 Initial Estimate $ 895,720 Cadmium is estimated to cost $ 12 in low and $ 13 in high. using hourly approach Chromium is assumed to cost 10 in low and 13 in high Copper is estimated to cost $ 10 in low and $ 13 in high COD is estimated to cost $ 19 Cyanide is estimated to cost $ 35 in low and $ 40 in high Iron is assumed to cost 10 in low and 13 in high Mercury is estimated to cost $ 34 Nitrate is estimated to cost $ 19 pH is assumed to cost $ 5 Phenols were assumed to cost $ 20 Phosphate is assumed to cost $ 19 Turbidity is assumed to cost $ 10 TSS is estimated at $ 10 Zinc is assumed to cost 10 in low and 13 in high If not listed, metals are assumed to be 10 in low and 13 in high and nutrients are assumed to be 19, and organics are assumed to be 20.


[Federal Register: January 22, 2008 (Volume 73, Number 14)]
[Notices]
[Page 3765-3767]
[DOCID:fr22ja08-103]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57150; File No. SR-Amex-2007-130]

Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change, as Modified by Amendment Nos. 1 and 2 Thereto, Relating to
Certain Modifications to the Initial Listing Standards for Index-Linked
Securities, Commodity-Linked Securities, and Currency-Linked Securities

January 15, 2008.
    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 November 30, 2007, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
On December 5, 2007, the Exchange filed Amendment No. 1 to the proposed
rule change. On December 21, 2007, the Exchange filed Amendment No. 2
to the proposed rule change. This order provides notice of the proposed
rule change, as amended, and approves the proposed rule change, as
modified by Amendment Nos. 1 and 2 thereto, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend sections 107D, 107E, and 107F of the
Amex Company Guide to revise the initial listing standards applicable
to Index-Linked Securities, Commodity-Linked Securities, and Currency-
Linked Securities (collectively, the ``Section 107 Securities''),\3\
respectively. In addition, the Exchange proposes a conforming revision
to Commentary .05 to Amex Rule 411 to apply the suitability standard to
all derivative securities that seek investment results based on a
multiple of the direct or inverse performance of an underlying asset.
The text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and http://www.amex.com.

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

    \3\ Index-Linked Securities are securities that provide for the
payment at maturity of a cash amount based on the performance of an
underlying index or indexes of equity securities (``Underlying
Index''). See Section 107D of the Amex Company Guide. Commodity-
Linked Securities are securities that provide for the payment at
maturity of a cash amount based on the performance of one or more
physical commodities or commodity futures, options or other
commodity derivatives or Commodity-Based Trust Shares (as defined in
Amex Rule 1200A), or a basket or index of any of the foregoing
(``Commodity Reference Asset''). See Section 107E of the Amex
Company Guide. Currency-Linked Securities are securities that
provide for the payment at maturity of a cash amount based on the
performance of one or more currencies, or options or currency
futures or other currency derivatives or Currency Trust Shares (as
defined in Amex Rule 1200B), or a basket or index of any of the
foregoing (``Currency Reference Asset,'' and, together with the
Underlying Index and Commodity Reference Asset, collectively, the
``Reference Asset''). See Section 107F of the Amex Company Guide.
---------------------------------------------------------------------------

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 purpose of the proposed rule change is to amend the generic
listing standards of sections 107D, 107E, and 107F of the Amex Company
Guide so that section 107 Securities may be listed where the positive
and/or negative payment at maturity may be accelerated by a multiple of
the performance of the underlying Reference Asset. The Exchange
believes that liberalizing the existing listing criteria for section
107 Securities will benefit the marketplace and investors by providing
additional risk/return alternative structures.
    Sections 107D, 107E, and 107F of the Amex Company Guide set forth
the generic listing standards that permit the Exchange to list and
trade Index-Linked Securities, Commodity-Linked Securities, and
Currency-Linked Securities, respectively, pursuant to Rule 19b-4(e)
under the Act.\4\ Currently,

the respective generic listing standards for such securities state,
among other requirements, that the payment at maturity may or may not
provide for a multiple of the positive performance of the applicable
underlying Reference Asset, and in no event may payment at maturity be
based on a multiple of the negative performance of the applicable
underlying Reference Asset.
---------------------------------------------------------------------------

    \4\ See 17 CFR 240.19b-4(e). Rule 19b-4(e) provides that the
listing and trading of a new derivative securities product by a
self-regulatory organization (``SRO'') shall not be deemed a
proposed rule change, pursuant to paragraph (c)(1) of Rule 19b-4, if
the Commission has approved, pursuant to Section 19(b) of the Act,
the SRO's trading rules, procedures, and listing standards for the
product class that would include the new derivatives securities
product, and the SRO has a surveillance program for the product
class.
---------------------------------------------------------------------------

    Amex seeks to clarify and amend the generic listing standards for
each of the section 107 Securities such that, with respect to the
listing and trading of an issue of such securities pursuant to Rule
19b-4(e): (1) The payment at maturity may or may not provide for a
multiple of the direct or inverse performance of the applicable
Reference Asset; and (2) in no event may a loss or negative payment at
maturity be accelerated by a multiple that exceeds twice the
performance of the applicable Reference Asset. The Exchange believes
that the current restriction in the generic listing standards for each
of the section 107 Securities is unnecessarily limiting, given the
changes in the market for these securities and the demand for differing
structures. In addition, the Exchange notes that certain exchange-
traded funds (``ETFs'') seeking to provide (a) investment results that
correspond to or exceed twice (200%) the direct performance of a
specified stock index, or (b) investment results that correspond to
twice (-200%) the inverse or opposite of the index's performance, are
currently listed and traded on the Exchange.\5\
---------------------------------------------------------------------------

    \5\ See, e.g., Securities Exchange Act Release Nos. 52553
(October 3, 2005), 70 FR 59100 (October 11, 2005) (SR-Amex-2004-62)
(approving the listing and trading of shares of the xtraShares
Trust); 54040 (June 23, 2006), 71 FR 37629 (June 30, 2006) (SR-Amex-
2006-41) (approving the listing and trading of shares of the
ProShares Trust); 55117 (January 17, 2007), 72 FR 3442 (January 25,
2007) (SR-Amex-2006-101) (approving the listing and trading of
shares of the ProShares Trust based on various sector indexes);
56592 (October 1, 2007), 72 FR 57364 (October 9, 2007) (SR-Amex-
2007-60) (approving the listing and trading of shares of the
ProShares Trust based on various international equity indexes); and
56713 (October 29, 2007), 72 FR 61915 (November 1, 2007) (SR-Amex-
2007-74) (approving the listing and trading of shares of funds of
the Rydex ETF Trust).
---------------------------------------------------------------------------

    The Exchange also seeks to amend Commentary .05 to Amex Rule 411
(Duty to Know and Approve Customers). Section 107 Securities are
subject to the general eligibility or suitability requirements existing
for all products listed and traded on Amex, as set forth in Amex Rule
411. The Exchange specifically seeks to apply Commentary .05 to Amex
Rule 411 to all section 107 Securities that seek investment results
based on a multiple of the direct or inverse performance of an
underlying Reference Asset.
    Currently, Commentary .05 to Amex Rule 411 is limited to Index Fund
Shares, listed pursuant to Amex Rule 1000A(b)(2), that seek to provide
investment results that either exceed the performance of a specified
foreign or domestic stock index by a specified multiple or that
correspond to the inverse (opposite) of the performance of such index
by a specified multiple. The proposed revision would apply Commentary
.05 to Amex Rule 411 to all derivative securities, including Index-
Linked Securities, Commodity-Linked Securities, and Currency-Linked
Securities, that seek to provide investment results that either exceed
the performance of an underlying reference asset by a specified
multiple or that correspond to the inverse (opposite) of the
performance of an underlying reference asset by a specified multiple.
    Prior to commencement of trading, the Exchange will issue an
Information Circular to its members and member organizations providing
guidance with regard to member firm compliance responsibilities
(including suitability obligations) when effecting transactions in
section 107 Securities that seek investment results based on a multiple
of the direct or inverse performance of an underlying Reference Asset
and highlighting the special risks and characteristics of the
securities and applicable Exchange rules. This Information Circular
will set forth the requirements relating to Commentary .05 to Amex Rule
411. Specifically, the Information Circular will remind members of
their obligations in recommending transactions in the securities so
that members have a reasonable basis to believe that (1) the
recommendation is suitable for a customer given reasonable inquiry
concerning the customer's investment objectives, financial situation
and needs, and any other information known by such member, and (2) the
customer can evaluate the special characteristics, and is able to bear
the financial risks, of such investment. In connection with the
suitability obligation, the Information Circular will also provide that
members make reasonable efforts to obtain the following information:
(1) The customer's financial status; (2) the customer's tax status; (3)
the customer's investment objectives; and (4) such other information
used or considered to be reasonable by such member or registered
representative in making recommendations to the customer.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ in particular, 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 facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will impose no
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    The Exchange states that no written comments were solicited or
received with respect to the proposed rule change.

III. 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-Amex-2007-130 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Amex-2007-130. 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 inspection and copying 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-Amex-2007-130 and should be submitted on or before
February 12, 2008.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\8\ In particular, the Commission finds that the proposed rule
change is consistent with section 6(b)(5) of the Act,\9\ which requires
that the rules of a national securities exchange be designed, among
other things, to promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \8\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal is consistent
with the Act, and, in particular, reasonably balances the removal of
impediments to a free and open market with the protection of investors
and the public interest, two principles set forth in section 6(b)(5) of
the Act. The Commission notes that a variety of exchange-traded funds
seeking to provide (a) investment results that correspond to or exceed
twice (200%) the direct performance of a specified stock index, or (b)
investment results that correspond to twice (-200%) the inverse or
opposite of the index's performance, are currently listed and traded on
the Exchange.\10\ In addition, the Commission further believes that
heightened suitability standards are appropriate for derivative
securities products, including section 107 Securities, that seek to
provide investment results that correspond to the direct or inverse
performance of an underlying reference asset by a specified multiple
and allow for a loss or negative payment at maturity to be accelerated
by a specified multiple. Before recommending transactions in these
types of leveraged products, Exchange members must have a reasonable
basis to believe that the customer can evaluate the special
characteristics, and is able to bear the financial risks, of such
investment. The Commission expects the Exchange to continue to monitor
the application of its suitability requirements, including those under
Commentary .05 to Amex Rule 411, as proposed.
---------------------------------------------------------------------------

    \10\ See supra note 5 and accompanying text.
---------------------------------------------------------------------------

    The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice thereof in the Federal Register. The Commission notes that it
has approved identical revisions to the initial listing standards for
the same type of derivative securities products, as proposed by another
national securities exchange.\11\ With respect to the revisions to
Commentary .05 to Amex Rule 411, the Commission believes that the
proposal strengthens the suitability standards and raises no new
regulatory issues. Accordingly, the Commission finds good cause for
approving the proposal on an accelerated basis, pursuant to section
19(b)(2) of the Act.
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 57149 (January 15,
2008) (SR-NYSEArca-2007-122) (approving the proposal to make
substantively identical revisions to the initial listing standards
for Index-Linked Securities listed and/or traded on NYSE Arca, Inc.
(``NYSE Arca'')). See also Securities Exchange Act Release No. 56907
(December 5, 2007), 72 FR 70640 (December 12, 2007) (SR-NYSEArca-
2007-122) (providing notice of the proposal to make substantively
identical revisions to the initial listing standards for Index-
Linked Securities listed and/or traded on NYSE Arca).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-Amex-2007-130), as modified
by Amendment Nos. 1 and 2 thereto, be, and it hereby is, approved on an
accelerated basis.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-996 Filed 1-18-08; 8:45 am]

BILLING CODE 8011-01-P