[Federal Register Volume 81, Number 6 (Monday, January 11, 2016)]
[Notices]
[Pages 1240-1244]
[FR Doc No: 2016-249]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76833; File No. SR-NASDAQ-2015-159]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change To Implement Additional Price
Protections in the Opening Process

January 5, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 23, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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 the
Substance of the Proposed Rule Change

    The Exchange proposes to add new paragraph (F) to Rule 4752(d)(2),
concerning the opening process.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the 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 this filing is to enhance the price protections
provided by Rule 4752(d) in the operation of Nasdaq Opening Cross,
Nasdaq's process for opening the market for trading System securities.
Background
    Rule 4752 concerns Nasdaq's opening process and paragraph (d) of
the rule sets forth the processing of the Opening Cross. Specifically,
the rule provides that the Opening Cross is initiated at 9:30 a.m. ET,
at which time the System attempts to open a security at the price that
maximizes the number of shares of MOO,\3\ LOO,\4\ OIO,\5\ Early Market
Hours orders,\6\ and executable quotes and orders to be executed in the
Nasdaq Market Center.\7\ If the System determines that more than one
price exists that would maximize such quotes and orders to be executed,
the Opening Cross will occur at the price that minimizes any
Imbalance.\8\ If the System determines that more than one price exists
that would minimize an Imbalance, the Opening Cross will occur at the
entered price at which shares will remain unexecuted in the cross.\9\
If the System determines that more than one price exists whereby shares
will remain unexecuted in the cross, the Opening Cross will occur at
the price that minimizes the distance from the bid-ask midpoint of the
inside quotation prevailing at 9:30 a.m.\10\
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    \3\ A ``Market On Open'' or ``MOO'' order is an Order Type
entered without a price that may be executed only during the Nasdaq
Opening Cross. Generally, MOO Orders may be entered, cancelled, and/
or modified between 4 a.m. ET and immediately prior to 9:28 a.m. ET.
An MOO Order may not be cancelled or modified at or after 9:28 a.m.
ET. An MOO Order shall execute only at the price determined by the
Nasdaq Opening Cross. See Rule 4702(b)(8).
    \4\ A ``Limit On Open Order'' or ``LOO Order'' is an Order Type
entered with a price that may be executed only in the Nasdaq Opening
Cross, and only if the price determined by the Nasdaq Opening Cross
is equal to or better than the price at which the LOO Order was
entered. Subject to the qualifications provided below [sic], LOO
Orders may be entered, cancelled, and/or modified between 4 a.m. ET
and immediately prior to 9:28 a.m. ET. See Rule 4702(b)(9).
    \5\ An ``Opening Imbalance Only Order'' or ``OIO Order'' is an
Order Type entered with a price that may be executed only in the
Nasdaq Opening Cross and only against MOO Orders, LOO Orders, or
Early Market Hours Orders (as defined in Rule 4752). OIO Orders may
be entered between 4:00 a.m. ET until the time of execution of the
Nasdaq Opening Cross, but may not be cancelled or modified at or
after 9:28 a.m. ET. If the entered price of an OIO Order to buy
(sell) is higher than (lower than) the highest bid (lowest offer) on
the Nasdaq Book, the price of the OIO Order will be modified
repeatedly to equal the highest bid (lowest offer) on the Nasdaq
Book; provided, however, that the price of the Order will not be
moved beyond its stated limit price. See Rule 4702(b)(10).
    \6\ An Early Market Hours Order is a Market Hours Order that is
entered into the system prior to 9:28 a.m. and which is treated as
an Opening Imbalance Only order [sic], as appropriate, for the
purposes of the Nasdaq Opening Cross. A Market Hours Order is any
order that may be entered into the system and designated with a
time-in-force of MIOC, MDAY, MGTC. See Rule 4752(a)(7). See also
Rules 4703(a) for a discussion of the Time in Force Order attribute,
including MIOC, MDAY, and MGTC.
    \7\ See Rule 4752(d)(2)(A).
    \8\ See Rule 4752(d)(2)(B).
    \9\ See Rule 4752(d)(2)(C).
    \10\ See Rule 4752(d)(2)(D).
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    When the Opening Cross price is calculated, Nasdaq applies a
boundary within which the cross must execute to ensure that the price
derived does not exceed a price reasonably tied to the prevailing
market at the time. Specifically, Nasdaq applies a percentage based
threshold (``Threshold Percentage'') to a benchmark (``Benchmark
Value'') that, when applied to an individual security, determines the
price range that a security may cross (``Threshold Range''), outside of
which the opening price of a security may not occur.\11\ If an Opening
Cross price of a security would otherwise be outside of the Threshold
Range, Nasdaq will adjust the Opening Cross price of the security to a
price within the Threshold Range that best satisfies the normal process
for determining the Opening Cross price.\12\ This change happens
automatically prior to execution of the Opening Cross, and does not
involve any human intervention. All unexecuted shares designated to
expire upon the conclusion of the Opening Cross,\13\ including those
that fall outside of the Threshold Range, are cancelled.
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    \11\ See Rule 4752(d)(2)(E).
    \12\ See Rules 4752(d)(2)(A)-(D).
    \13\ These are: MOO, LOO, OIO, and Early Market Hours Orders
designated to participate in the Opening Cross. Prior to the Opening
Cross, the Exchange maintains a continuous order book and an Opening
Cross order book. Orders in the Opening Cross order book may execute
only in the Opening Cross process, while Orders in the continuous
book may execute during pre-market hours trading, in the Opening
Cross, or in regular market hours trading if the Order has a time-
in-force that will allow it to remain active.
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    The Threshold Percentage and Benchmark Value are set by Nasdaq
officials in advance and communicated to Participants.\14\ Nasdaq may
adjust the Threshold Percentage based on Nasdaq's experience with the
Opening Cross and on unusual market conditions, such as certain options
and derivatives expiration days that are heavily affected by the
opening price of Nasdaq securities. Nasdaq publishes the Benchmark
Value and Threshold Percentages via its public NasdaqTrader Web site,
and sets the Threshold Percentage so that repricing of a security is
rare.\15\ Currently, Nasdaq applies a Threshold Percentage of 10%,
which is applied to the Nasdaq Best Bid and Offer (``QBBO'') midpoint
and is added to the Nasdaq Offer and subtracted from the Nasdaq Bid to
establish the threshold price range. For example, if the QBBO is $10.00
x $11.00, then the midpoint equals 10.50 and the Threshold Percentage
is 10%, resulting in a threshold value of $1.05 (10% of $10.50 =
$1.05). This value is then added to the offer and subtracted from the
bid to obtain the cross's threshold range. In this example, it would
result

in a lower threshold of $8.95 ($10.00 - $1.05 = $8.95) and an upper
threshold of $12.05 ($11.00 + $1.05 = $12.05), thus creating a range of
$8.95 to $12.05, within which the cross can occur. This means $8.95 is
the lowest price at which the cross can occur and $12.05 is the highest
price at which it can occur. The threshold range is dynamic; as the
QBBO changes, the threshold price range changes.
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    \14\ As defined by Rule 4701(c).
    \15\ See http://www.nasdaqtrader.com/content/ProductsServices/Trading/Crosses/openclose_faqs.pdf.
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    The current price adjustment process under Rule 4752(d)(2)(E) is
effective at ensuring the opening price of a security is within a
certain range of the QBBO immediately prior to the initiation of the
cross in the security; however, the current process does not prevent a
cross from occurring at an erroneous price caused by an order or quote
entered into the continuous pre-market trading book by a Participant in
error that significantly skews the Opening Cross price of a security.
This scenario could cause the QBBO to be excessively wide, with one
side of the bid/offer significantly distant from the normal range and
not representative of the true interest in the security. Nonetheless,
the price adjustment process under Rule 4752(d)(2)(E) would allow the
Opening Cross price to be set at an erroneous level because it would
set the Benchmark Value at the midpoint between the erroneously-priced
side of the market and the non-erroneously priced contra side. To
illustrate, assume an extreme example as follows: if a security has a
bid of $10 set by an Order to buy 100 shares at $10 in pre-market
trading with no offer interest until 9:29 a.m., when a Participant
erroneously enters an Order to sell 100 shares at $1100, under the
current opening process the Benchmark Value of that security would be
the midpoint price of $555, which would create a threshold range of
$0.0001 by $1155.50.\16\ Under such extreme circumstances a mispriced
open could occur, in which case the parties to an erroneous execution
would have to avail themselves of the clearly erroneous trade
nullification process of Rule 11890.\17\
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    \16\ The Exchange will not allow the lower threshold to be a
negative amount and will set the lower range value to the lowest
value possible, which is $0.0001.
    \17\ The terms of a transaction executed on Nasdaq are ``clearly
erroneous'' when there is an obvious error in any term, such as
price, number of shares or other unit of trading, or identification
of the security. A transaction made in clearly erroneous error and
cancelled by both parties or determined by Nasdaq to be clearly
erroneous will be removed from the consolidated tape. See Rule
11890(a)(1).
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New Protection
    Nasdaq is proposing an additional price protection process designed
to avoid mispriced Opening Crosses and the use of the clearly erroneous
post-trade nullification process. Once a security has an Opening Cross
price set based on the process under Rule 4752(d)(2)(A)-(E), Nasdaq
will require the security to pass at least one of three new ``tests''
in order for the Opening Cross to occur. If a security does not pass
any of the three tests no Opening Cross will occur in that security,
all Orders in the Opening Cross \18\ will be cancelled back to the
Participants, and regular market hours trading will begin.
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    \18\ See note 13 above. Orders entered in the continuous book
eligible to trade in the pre-market session prior to the opening of
the security would not be cancelled but would rather continue to
rest on the continuous book for potential participation in regular
market hours trading.
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    The three new tests compare the Opening Cross price as calculated
under the current rule to a reference price to ensure that the Opening
Cross price is reasonably related to the market and not the product of
erroneous Order entry. The reference price range is calculated under
each test by applying a threshold set by Nasdaq officials in advance
and communicated to Participants (``Price Test Thresholds''). The Price
Test Thresholds, like the current Threshold Percentage, will be
published via Nasdaq's public NasdaqTrader Web site. Nasdaq may apply
different Price Test Thresholds to each of the Opening Cross Price
Tests. The Price Test Threshold is applied to different measures under
each of the new tests to calculate the range within which the Opening
Cross price must fall to pass the test (``Price Test Threshold
Range''). Nasdaq is initially setting each of the Price Test Thresholds
uniformly at the greater of $0.50 or 10%; however, Nasdaq may adjust
the Price Test Thresholds independently of one another.
    Opening Cross Price Test A requires the Opening Cross price of a
Nasdaq listed security, other than newly-listed Exchange Traded
Products (``ETPs''), to be within a Price Test Threshold Range
established by adding and subtracting the Price Test Threshold from the
security's prior day Nasdaq Official Closing Price (``NOCP''). Non-
Nasdaq listed securities must have an Opening Cross price within a
Price Test Threshold Range established by adding and subtracting the
Price Test Threshold from the security's prior day consolidated closing
price. Unlike newly-listed company stocks that begin trading at some
point after the stock market has opened, newly-listed ETPs usually
begin trading in the premarket session prior to regular market hours
trading on the security's initial day of trading and do not have a
prior day's consolidated closing price. For such securities, the Price
Test Threshold Range is established by adding and subtracting the Price
Test Threshold from the offering price. If the Nasdaq Opening Cross
price is higher or lower than the Price Test Threshold Range
established under this test, or if a non-ETP Nasdaq listed security
does not have a previous day's closing price,\19\ the security fails
the test and Opening Cross Price Test B is performed.
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    \19\ For example, a security may not have a NOCP due to a unit
separation.
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    Opening Cross Price Test B requires the Opening Cross price of a
security to be within a Price Test Threshold Range established by
adding and subtracting the Price Test Threshold from the security's
Nasdaq last sale (either round or odd lot) occurring after 9:15 a.m. ET
but prior to the Opening Cross. If the Opening Cross price is higher or
lower than the Price Test Threshold Range established under this test,
or if there is no Nasdaq last sale,\20\ the security fails the test and
Opening Cross Price Test C is performed.
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    \20\ A security may not have a Nasdaq last sale because there
was no trading in the security during the premarket session.
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    Opening Cross Price Test C requires the Opening Cross price to fall
within the Price Test Threshold Range established by adding and
subtracting the Price Test Threshold from the Nasdaq best bid (for
Opening Cross prices that would be higher than the security's closing
price as established in Test A) or Nasdaq best offer (for opening cross
prices that would be lower than the security's closing price as
established in Test A). For purposes of this test, if a security does
not have a NOCP or consolidated closing price, as applicable, for the
previous trading day Nasdaq will use a price of $0. If the Nasdaq
Opening Cross price is higher or lower than the Opening Cross price
range established under this test all Orders in the Opening Cross \21\
will be cancelled back to Participants, no Opening Cross will occur,
and the security will open for regular market hours trading.
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    \21\ See note 18 above.
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    Using the example above where the QBBO is $10 x $11 and Opening
Price Range is $8.95 to $12.05, if the Opening Cross price is
calculated to be $10.50 then the security would move on to the Opening
Cross eligibility test process. Under Opening Cross Price Test A, if
the security had a NOCP of $12.50 then the Price Test Threshold used
would be 10% (10% of $12.50 = $1.25, which is greater than $0.50) and
the Price Test Threshold Range would be $11.25 to $13.75 ($12.50-$1.25
= $11.25 and

$12.50 + $1.25 = $13.75). Because the Opening Cross price is less than
the lower threshold ($10.50 < $11.25), the security fails Opening Cross
Price Test A and Opening Cross Price Test B is performed.
    Under Opening Cross Price Test B, if the last sale at 9:20 a.m. is
$11.90, the Price Test Threshold would be 10% (10% of $11.90 = $1.19,
which is greater than $0.50) and the Price Test Threshold Range would
be $10.71 to $13.09 ($11.90 - $1.19 = $10.71 and $11.90 + $1.19 =
$13.09). Because the Opening Cross price is less than the lower
threshold ($10.50 < $10.71), the security fails Opening Cross Price
Test B and Opening Cross Price Test C is performed.
    Under Opening Cross Price Test C, since the Opening Cross price is
lower than the NOCP ($10.50 < $12.50), the QBBO offer price of $11
would be used to calculate the Price Test Threshold Range, which would
result in a Price Test Threshold of 10% (10% of $11 = $1.10, which is
greater than $0.50) and a Price Test Threshold Range of $9.90 to $12.10
($11 - $1.10 = $9.90 and $11 + $1.10 = $12.10). Because the Opening
Cross price is within the Price Test Threshold Range, the security
passes the test and the Opening Cross may proceed.
    Accordingly, these new protections will mitigate situations in
which the Opening Cross price may be erroneous. As a result, the
changes will support fair and orderly markets.
Implementation
    Nasdaq is proposing to implement the proposed change in a measured
approach over the course of approximately four weeks. Although Nasdaq
does not foresee any technical issues with implementation of the
proposed changes, they affect a fundamental process in the operation of
an orderly market. As a result, the Exchange believes it should
implement the changes in stages. The Exchange will use a rollout
schedule that will start with a small number of securities (e.g., 5-50)
with each stage increasing the number of securities to be rolled out.
The implementation details will be published via an Exchange Trader
Alert and be posted on the NasdaqTrader Web site. The Exchange believes
that this measured approach will minimize risk to the overall market.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\22\ Specifically, the
proposal is consistent with Section 6(b)(5) of the Act,\23\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed change will promote just
and equitable principles of trade because it will implement a process
designed to prevent Opening Crosses to occur [sic] at erroneous prices.
As explained, under the current process an erroneous order or quote may
significantly skew the current Benchmark Value that is used to create a
boundary for the Opening Cross Price. This may then lead to the Opening
Cross price would result [sic] in a temporary price dislocation from
normal pricing and typically the use of the clearly erroneous trade
nullification process under Rule 11890.
    The Exchange considers that a better approach is to implement a
system of tests, as proposed herein, that would not allow an erroneous
order or quote affect the opening of a security. The proposed change,
moreover, would mitigate the likelihood of an erroneous execution
occurring in the Opening Cross, since all Orders in the Opening Cross
would be cancelled. There would be no need then to use the clearly
erroneous trade nullification process because no such trade would
occur. Thus, the proposed rule change also protects investors, by
avoiding erroneous transactions, which are disruptive to individual
investors and the market overall.
    The proposal also promotes just and equitable principles of trade
and further perfects mechanism of fair and orderly markets in that it
promotes transparency and uniformity in handling erroneous trades in
the Opening Cross.
    Finally, implementing the proposed changes in a phased approach
promotes just and equitable principles of trade, further improves
participating [sic] in fair and orderly markets, and serves to protect
investors because it will limit the potential disruption to the market
to a subset of the total number of securities in the opening cross
should the Exchange experience a technical issue with the
implementation.

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

    The Exchange does not believe that the proposed rule change
implicates any competitive issues. The proposed change implements
changes that will benefit all market participants by avoiding Opening
Prices that are not reasonably related to bona fide market interest.
Avoiding such prices will ensure that the information on which market
participants make investment decisions is accurate and representative
of investors' interest. As such, the proposed changes should not place
a burden on competition whatsoever.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-NASDAQ-2015-159 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 No. SR-NASDAQ-2015-159. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements

with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; 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 No. SR-NASDAQ-2015-159, and should be
submitted on or before February 1, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-249 Filed 1-8-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 158 (Thursday, August 15, 2019)]
[Proposed Rules]
[Pages 41664-41667]
[FR Doc No: 2019-17510]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2019-0557; Product Identifier 2019-NE-17-AD]
RIN 2120-AA64

Airworthiness Directives; Aviointeriors S.p.A. Centaurus
Passenger Seats

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain Aviointeriors S.p.A. (Aviointeriors) Centaurus passenger
seats with a specific life vest pouch assembly installed. This proposed
AD was prompted by reports of life vest pouches that were installed
incorrectly on certain seats. This proposed AD would require inspection
of the life vest pouch assembly and, depending on the results of the
inspection, replacement of the life vest pouch assembly. The FAA is
proposing this AD to address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by September
30, 2019.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12 140, 1200 New
Jersey Avenue SE, Washington, DC, 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact
Aviointeriors S.p.A., Customer Support, Via Appia Km. 66,4; 04013
Latina, Italy; phone: +39 0773 6891; fax: +39 0773 631546; email:
[email protected]; internet: http://www.aviointeriors.it. You may view this service information at the FAA,
Engine and Propeller Standards Branch, 1200 District Avenue,
Burlington, MA, 01803. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0557; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, the mandatory continuing airworthiness information (MCAI),
the regulatory evaluation, any comments received, and other
information. The street address for Docket Operations is listed above.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Dorie Resnik, Aerospace Engineer,
Boston ACO Branch, FAA, 1200 District Avenue, Burlington, MA, 01803;
phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2019-0557;
Product Identifier 2019-NE-17-AD'' at the beginning of your comments.
The FAA specifically invites comments on the overall regulatory,
economic, environmental, and energy aspects of this NPRM. The FAA will
consider all comments received by the closing date and may amend this
NPRM because of those comments.
    The FAA will post all comments received, without change, to http://www.regulations.gov, including any personal information you provide.
The FAA will also post a report summarizing each substantive verbal
contact received about this NPRM.

Discussion

    The European Union Aviation Safety Agency (EASA), which is the
Technical Agent for the Member States of the European Community, has
issued EASA AD 2018-0264R1, dated April 4, 2019 (referred to after this
as ``the MCAI''), to address the unsafe condition on these products.
The MCAI states:

    Incorrect installation of the affected pouch was found on
certain affected seats. Subsequent investigation determined that
those pouches have been (re)installed in service. This condition, if
not detected and corrected, could prevent extraction of the life
vest from the pouch, leading to evacuation of the aeroplane without
a life vest, possibly resulting in injury to passengers.
    To address this potential unsafe condition, Aviointeriors issued
the SB to provide inspection instructions and the modification SB to
provide instructions to modify the affected seats. Aviointeriors
also revised the Component Maintenance Manuals (CMM) to include
updated instructions for installing an affected pouch.
    For the reason described above, EASA issued AD 2018-0264,
requiring inspection of the affected seats and, depending on
findings, accomplishment of applicable corrective action(s). Since
that [EASA] AD was issued, it was determined that affected seats may
have received an additional P/N related to the aircraft modification
addressing the installation of the seats. This [EASA] AD is revised
to clarify the Applicability by inserting Note 1 into Appendix 1 of
this [EASA] AD.

    You may obtain further information by examining the MCAI in the AD
docket on the internet at http://www.regulations.gov by searching for
and locating Docket No. FAA-2019-0557.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Aviointeriors Mandatory Service Bulletin (MSB) No.
16/18, Rev. 1, dated October 11, 2019, and Aviointeriors Optional
Service Bulletin (OSB) No. 18/18, Rev. 2, dated March 11, 2019. The MSB
describes procedures for inspection and horizontal installation of the
life vest pouch assembly. The OSB describes procedures for an
alternative (vertical) inspection and installation of the life vest
pouch assembly. This service information is reasonably available
because the interested parties have access to it through their normal
course of business or by the means identified in the ADDRESSES section.

FAA's Determination

    This product has been approved by EASA, and is approved for
operation in the United States. Pursuant to our bilateral agreement
with the European Community, EASA has notified us of the unsafe
condition described in the MCAI and service information referenced
above. The FAA is proposing

this AD because it evaluated all the relevant information provided by
EASA and determined the unsafe condition described previously is likely
to exist or develop in other products of the same type design.

Proposed AD Requirements

    This proposed AD would require inspection of the life vest pouch
assembly and, depending on the results of the inspection, replacement
of the life vest pouch.

Differences Between This Proposed AD and the MCAI

    EASA AD 2018-0264R1, dated April 4, 2019, refers to Aviointeriors
OSB No. 18/18, Rev. 1, dated October 16, 2018. This FAA AD refers to
Aviointeriors OSB No. 18/18, Rev. 2, dated March 11, 2019. EASA
reasoned that they are aware of Aviointeriors OSB No. 18/18, Rev. 2,
but because none of their operators opted to implement the optional
vertical installation modification within Aviointeriors OSB No. 18/18,
EASA determined it was not necessary to refer to the latest revision of
the service bulletin.

Costs of Compliance

    The FAA estimates that this proposed AD affects an unknown number
of passenger seats installed on, but not limited to, Boeing 777-200 and
777-300 airplanes of U.S. registry.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                   Action                                 Labor cost                Parts cost        product
----------------------------------------------------------------------------------------------------------------
Inspect life vest pouch assembly...........  0.2 work-hours x $85 per hour = $17              $0             $17
Replace life vest pouch assembly...........  0.1 work-hours x $85 per hour =                 172          180.50
                                              $8.50.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to engines, propellers, and
associated appliances to the Manager, Engine and Propeller Standards
Branch, Policy and Innovation Division.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have 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.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

Aviointeriors S.p.A.: Docket No. FAA-2019-0557; Product Identifier
2019-NE-17-AD.

(a) Comments Due Date

    The FAA must receive comments by September 30, 2019.

(b) Affected ADs

    None.

(c) Applicability

    (1) This AD applies to Aviointeriors S.p.A. (Aviointeriors)
Centaurus Economy Class 13E, 13H, and 13K passenger seats with a
seat part number (P/N) listed in Figure 1 to paragraph (c)(1) of
this AD, with life vest pouch, P/N<PHONE_NUMBER>04, installed.
BILLING CODE 1910-13-P

[GRAPHIC] [TIFF OMITTED] TP15AU19.005

BILLING CODE 1910-13-C
    (2) These appliances are installed on, but not limited to,
Boeing 777-200 and 777-300 airplanes.

(d) Subject

    Joint Aircraft System Component (JASC) Code 2561, Life Jacket.

(e) Unsafe Condition

    This AD was prompted by reports of life vest pouches installed
incorrectly on certain seats. The FAA is issuing this AD to prevent
the life vest from failing to extract from the pouch during an
emergency. The unsafe condition, if not addressed, could result in
having to evacuate the airplane without a life vest, possibly
resulting in injury or death to passengers.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Required Actions

    (1) Within three months or 600 flight hours after the effective
date of this AD, whichever occurs first, inspect the affected seat
life vest pouch assembly using Paragraph 2, Life Vest Inspection, of
Aviointeriors Mandatory Service Bulletin (MSB) No. 16/18, Rev. 1,
dated October 11, 2018, or Paragraph 2, Life Vest Pouches
Inspection, Aviointeriors Optional SB (OSB) No. 18/18, Rev. 2, dated
March 11, 2019.
    (2) If, during the inspection required by paragraph (g)(1) of
this AD, a life vest pouch velcro strip is found damaged or worn,
before further flight, remove the life vest pouch from service and
replace it with a part eligible for installation using Paragraphs 3
through 5, inclusive, of Aviointeriors MSB No. 16/18, Rev. 1, dated
October 11, 2018, or Aviointeriors OSB No. 18/18, Rev. 2, dated
March 11, 2019.
    (3) If, during the inspection required by paragraph (g)(1) of
this AD, a life vest pouch installation is not found acceptable, as
defined in Paragraph 2 of Aviointeriors MSB No. 16/18, Rev. 1, dated
October 11, 2018, or Aviointeriors OSB No. 18/18, Rev. 2, dated
March 11, 2019, before further flight, remove the life vest pouch
from service and replace it with a part eligible for installation
using Paragraphs 3 through 5, inclusive, of Aviointeriors MSB No.
16/18, Rev. 1, dated October 11, 2018, or Aviointeriors OSB No. 18/
18, Rev. 2, dated March 11, 2019.

(h) Installation Prohibition

    After the effective date of this AD, do not install an
Aviointeriors Centaurus Economy Class passenger seat with a P/N
identified in paragraph (c) of this AD unless the affected seat life
vest pouch assembly has been inspected in accordance with paragraph
(g)(1) of this AD, and depending on the finding, replaced with a
part eligible for installation.

(i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Boston ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request
to your principal inspector or local Flight Standards District
Office, as appropriate. If sending information directly to the
manager of the ECO Branch, send it to the attention of the person
identified in paragraph (j)(1) of this AD.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(j) Related Information

    (1) For more information about this AD, contact Dorie Resnik,
Aerospace Engineer, Boston ACO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].
    (2) Refer to European Union Aviation Safety Agency (EASA) AD
2018-0264R1, dated April 4, 2019, for more information. You may
examine the EASA AD in the AD docket on the internet at http://www.regulations.gov by searching for and locating it in Docket No.
FAA-2019-0557.
    (3) For service information identified in this AD, contact
Aviointeriors S.p.A., Customer Support, Via Appia Km. 66,4; 04013
Latina, Italy; phone: +39 0773 6891; fax: +39 0773 631546; email:
[email protected]; internet: http://www.aviointeriors.it. You may view this referenced service
information at the FAA, Engine and Propeller Standards Branch, 1200
District Avenue, Burlington, MA 01803. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

    Issued in Burlington, Massachusetts, on August 12, 2019.
Robert J. Ganley,
Manager, Engine and Propeller Standards Branch, Aircraft Certification
Service.
[FR Doc. 2019-17510 Filed 8-14-19; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Notices]
[Pages 2493-2496]
[FR Doc No: 2014-00462]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71254; File No. SR-NASDAQ-2014-004]

Self-Regulatory Organizations; Notice of Filing of a Proposed
Rule Change by the NASDAQ Stock Market LLC Proposes To Amend Exchange
Rule 4754 Governing the NASDAQ Closing Cross (``Cross'')

January 8, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 7, 2014, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    Nasdaq is filing with the Commission a proposed rule change to
amend Exchange Rule 4754 governing the NASDAQ Closing Cross (``Cross'')
to accommodate changes in market structure triggered by Phase 2 of the
Plan to Address Extraordinary Market Volatility submitted to the
Commission pursuant to Rule 608 of Regulation NMS (``LULD Plan'').
Specifically, NASDAQ proposes to modify the operation of the Cross in
circumstances where a pause triggered under the LULD Plan would be
triggered after 3:50 p.m. EST and could, absent the proposed
modification, disrupt the operation of the Cross.
    The text of the proposed rule change is available from Nasdaq's Web
site at http://nasdaq.cchwallstreet.com/Filings/, at Nasdaq's principal
office, on the Commission's Web site at http://www.sec.gov, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    Background. Since May 6, 2010, the national securities exchanges
and FINRA have implemented market-wide measures designed to protect
investors from market volatility. The measures adopted include pilot
plans for stock-by-stock trading pauses,\3\ changes to the erroneous
execution rules,\4\ stricter equities market maker quoting
requirements,\5\ and changes to the equities market-wide circuit
breaker rules.\6\ In addition, on May 31, 2012, the Commission approved
the LULD Plan, as amended, as a one-year pilot, which began on April 8,
2013.\7\
---------------------------------------------------------------------------

    \3\ See, e.g., NASDAQ Rule 4120.
    \4\ See, e.g., NASDAQ Rule 11890.
    \5\ See, e.g., NASDAQ Rule 4613(a).
    \6\ See Securities Exchange Act Release No. 67090 (May 31,
2012), 77 FR 33531 (June 6, 2012) (SR-BATS-2011-038; SR-BYX-2011-
025; SR-BX-2011-068; SR-CBOE-2011-087; SR-C2-2011-024; SR-CHX-2011-
30; SR-EDGA-2011-31; SR-EDGX-2011-30; SR-FINRA-2011-054; SR-ISE-
2011-61; SR-NASDAQ-2011-131; SR-NSX-2011-11; SR-NYSE-2011-48; SR-
NYSEAmex-2011-73; SR-NYSEArca-2011-68; SR-Phlx-2011-129).
    \7\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (File No. 4-631) (Order Approving,
on a Pilot Basis, the National Market System Plan To Address
Extraordinary Market Volatility). Unless otherwise specified,
capitalized terms used in this rule filing are based on the defined
terms of the Plan.
---------------------------------------------------------------------------

    The LULD Plan is designed to prevent trades in individual NMS
Stocks from occurring outside of specified Price Bands calculated and
disseminated by the Network Processors.\8\ When the National Best Bid
(Offer) (``NBB'' or ``NBO'') is below (above) the Lower (Upper) Price
Band, the Processors disseminate the National Best Bid (Offer) with an
appropriate flag identifying it as non-executable. When the NBB (NBO)
is equal to the Upper (Lower) Price Band, the Processors distribute the
NBB (NBO) with an appropriate flag identifying it as a Limit State
Quotation.\9\ Although trading centers must maintain written policies
and procedures that are reasonably designed to prevent the display of
offers outside of the Price Band, the Processors will display such bids
and offers with a ``non-executable'' flag. Such bids and offers are
excluded from the NBB and NBO.\10\
---------------------------------------------------------------------------

    \8\ See Section (V)(A) of the LULD Plan.
    \9\ See Section VI(A) of the Plan.
    \10\ See Section VI(A)(3) of the Plan.
---------------------------------------------------------------------------

    Trading in an NMS Stock immediately enters a Limit State if the NBO
(NBB) equals but does not cross the Lower (Upper) Price Band.\11\
Trading exits the Limit State if, within 15 seconds of entering the
Limit State, all Limit State Quotations are executed or canceled in
their entirety. If the affected NMS Stock does not exit the Limit State
within 15 seconds, the Primary Listing Exchange declares a market-wide,
five-minute Trading Pause pursuant to Section VII of the LULD Plan.\12\
In addition, the Plan defines a Straddle State as when the NBB (NBO) is
below (above) the Lower (Upper) Price Band and the NMS Stock is not in
a Limit State. If an NMS Stock is in a Straddle State and trading in
that stock deviates from normal trading characteristics, the Primary
Listing Exchange may declare a Trading Pause for that NMS Stock.
---------------------------------------------------------------------------

    \11\ See Section VI(B)(1) of the Plan.
    \12\ The primary listing market would declare a trading pause in
an NMS Stock; upon notification by the primary listing market, the
Processor would disseminate this information to the public. No
trades in that NMS Stock could occur during the trading pause, but
all bids and offers may be displayed. See Section VII(A) of the
Plan.
---------------------------------------------------------------------------

    Currently, the Trading Pauses described above operate from 9:30
a.m. EST to 3:45 p.m. EST. Because no Trading Pause can be triggered
after 3:45

p.m. EST, the Trading Pause does not impact continuous market trading
during the minutes leading up to NASDAQ's Closing Cross.
    Full implementation of Phase 2 of the LULD Plan (Amendment 6) will
take effect on February 24, 2014, and upon such date the Plan's
operative time will be extended from 3:45 p.m. until 4:00 p.m., or the
last 15 minutes of regular trading. As a result, Trading Pauses may
occur immediately prior to the close of trading at 4:00 p.m. When that
occurs, continuous book trading may be halted at the time of the Cross.
At present, continuous market trading is essential to an effective
Cross because the Cross mechanism uses continuous book trading to
establish reference prices for the Cross which limit volatility in the
closing price. Therefore, to ensure that the Cross operates properly
when a Trading Pause impacts continuous market trading at the close,
NASDAQ proposes to establish an alternate mechanism to close a security
that is subject to a Trading Pause within the last ten minutes of
regular trading.
    The Proposed LULD Closing Cross. The alternate method for closing a
stock impacted by an LULD Trading Pause between 3:50 and 4:00 p.m. EST
will be called the ``LULD Closing Cross'' and it will be a hybrid
containing elements of the NASDAQ Closing Cross and the NASDAQ Halt
Cross. The primary changes, described in more detail below, are (1)
timing, (2) information dissemination (3) participation of certain
order types, (4) execution processing, and (5) re-opening of trading
following execution.
    Timing. For securities halted due to an LULD Trading Pause
triggered between 3:50 and 4:00 p.m., NASDAQ will conduct an LULD
Closing Cross at 4:00 p.m. Whether the LULD Trading Pause is triggered
at 3:50:01 or 3:59:59, the stock will open via the LULD Closing Cross
described in greater detail below. For securities that are paused after
3:55:00 the LULD Trading Pause will, in effect, be shortened to ensure
that the market continues to close at 4:00 p.m. except in the presence
of extreme volatility as described below. NASDAQ believes that
maintaining the 4:00 p.m. market closing time is the approach most
likely to result in a fair and orderly market at the close of
trading.\13\
---------------------------------------------------------------------------

    \13\ The LULD Closing Cross will not apply for any security
halted by an LULD Trading Pause triggered prior to 3:50 p.m.
Specifically, if an LULD Trading Pause is triggered at 3:49:59 and
ends at 3:54:59, the stock will open via the standard NASDAQ Halt
Cross as specified in the rules toady and then close via the
standard NASDAQ Closing Cross at 4:00 p.m.
---------------------------------------------------------------------------

    If at 4:00 p.m. there is insufficient trading interest in the
NASDAQ system to execute an LULD Closing Cross,\14\ NASDAQ will not
conduct an LULD Closing Cross in that security. In that case, NASDAQ
shall instead use the last sale on NASDAQ as the NASDAQ Official
Closing Price in that security for that trading day, as it does when
there is insufficient trading interest to execute the standard Closing
Cross on a daily basis.
---------------------------------------------------------------------------

    \14\ Insufficient trading interest is defined as the lack of any
bid interest priced to be marketable against any available offer
interest. For example, if the most aggressively priced bid interest
is priced at $1.00 and the most aggressively priced offer interest
is priced at $5.00, there is insufficient trading interest to
execute an LULD Closing Cross.
---------------------------------------------------------------------------

    Additionally, NASDAQ will delay execution of the LULD Closing Cross
if the market experiences volatility during the Trading Pause just
prior to the time of execution. Specifically, if the expected closing
price changes more than five percent, or 50 cents whichever is greater,
in the last 15 seconds of the LULD pause, or if there is a market order
imbalance (e.g. there is a greater quantity of shares to buy priced as
market orders than total eligible sell interest) preventing the
calculation of a cross price, NASDAQ will delay the execution of the
LULD Closing Cross. In that case, the LULD Closing Cross will be
extended in one-minute increments until such time as sufficient trading
interest does exist, the volatility condition is eliminated, and/or the
market order imbalance has been eliminated. The above volatility checks
will be governed under Rule 4120(c)(7)(C)(1) and 4120(c)(7)(C)(3). If
this condition persists until 5:00 p.m., NASDAQ will not conduct an
LULD Closing Cross in that security and shall instead use the last-sale
on NASDAQ as the NASDAQ Official Closing Price in that security for
that trading day. In that event, all orders will be cancelled back to
the entering firms, and after hours trading will begin at 5:00 p.m.
    NASDAQ believes that the proposed price check for movement of five
percent or 50 cents, whichever is greater, in the last 15 seconds of an
LULD Trading Pause is prudent in light of the volatility that stocks
are, by definition, experiencing at the time of the LULD Trading Pause.
A major goal of any closing cross, including the proposed LULD Closing
Cross, is to establish a reliable, tradable, and liquid reflection of
the market's value of a stock at the close of regular trading. This
goal is defeated if the price of a stock is moving dramatically at the
time of the cross. In addition, there is limited downside to extending
the time for the execution by as little as one minute. On balance,
NASDAQ concluded that the proposed price check will best protect
investors.
    NASDAQ also believes that 5:00 p.m. is a reasonable time to end
such volatility extensions and cancel the closing cross. As volatility
in a security continues towards 5:00 p.m., the likelihood of a smooth
closing cross diminishes. While it is prudent to extend the time for
executing the closing cross rather than risk a volatile close, this
must be balanced by the need for closure. NASDAQ believes that the 5:00
p.m. cut-off time represents a reasonable balance.
    Information Dissemination. This change in timing will impact not
only the time of execution of the LULD Closing Cross, but also how
NASDAQ disseminates the Net Order Imbalance Indicator (``NOII'').
Today, NASDAQ disseminates the NOII every five seconds from 3:50 p.m.
until the close of trading at 4:00 p.m., and it will continue to do so
under this proposal. If the LULD Closing Cross is extended beyond 4:00
p.m. due to late volatility or a market order imbalance, NASDAQ will
continue to disseminate the NOII every five seconds until the LULD
Closing Cross actually occurs or until 5:00 p.m.
    The NOII message during the pause preceding an LULD Closing Cross
will be similar to those disseminated during a standard Closing Cross
and other Halt crosses. Specifically, the Near Price, Far Price, and
Reference Price contained in the NOII will all represent the price at
which the LULD Closing Cross would execute should the cross conclude at
that time. The NOII associated with the LULD Closing Cross will also
include Imbalance Size and Side information, which represents the
shares not currently paired at the reference price. This will
facilitate the entry of additional offsetting interest in the closing
process.
    Participation of Order Types. Currently, two sets of orders can
participate in the Closing Cross: (1) Orders resting on NASDAQ's
continuous book at the time of the Cross, and (2) any ``Special Closing
Order'' entered and not cancelled prior to the close. Those special
closing orders, as set forth in NASDAQ Rule 4754, are Market on Close
(``MOC''), Limit on Close, (``LOC''), and Imbalance Only (``IO'')
orders.
    Under this proposal, the LULD Closing Cross would include Special
Closing Orders, newly entered orders, and all orders resting on the
continuous book.

    With respect to Special Closing Orders, members would not be
permitted to enter new MOC or LOC orders; MOC and LOC orders may only
be entered until 3:50 p.m. EST. Members that had previously entered
MOC, LOC, and IO Orders generally would not be permitted to modify or
cancel such orders prior to the execution of the LULD Closing Cross. As
is the case today under Rule 4754, MOC and LOC orders can be cancelled
between 3:50:00 p.m. and 3:55:00 p.m. ``only by requesting Nasdaq to
correct a legitimate error (e.g., side, size, symbol, price or
duplication of an order).'' In addition MOC and LOC orders ``cannot be
cancelled after 3:55:00 p.m. for any reason.'' Under the proposal,
members will be permitted to enter and modify (only to increase the
number of shares represented), but not cancel new IO orders up to the
time of execution of the LULD Closing Cross.
    NASDAQ considered permitting members to cancel or modify previously
entered MOC and LOC Orders, but decided not to for several reasons.
First and foremost, members that participate in NASDAQ's Closing Cross
rely on the fixed status of MOC and LOC Orders to anchor the crosses;
the benefits of stability apply with equal force to the LULD Closing
Cross. Second, there is a benefit to maintaining the same behavior of
specific order types to the greatest extent possible; changing the
behavior of order types could create member confusion. Third, members
that enter MOC and LOC orders are and will continue to be fully aware
of the risk of price movements at the close, including the risk of an
LULD Trading Pause. Members can avoid that risk by changing their
behavior and entering other order types if they deem the risk to be too
large. All told, NASDAQ concluded that the better course is to prevent
the cancellation or modification of MOC and LOC Orders to the same
extent as today.
    With respect to continuous book orders resting on the book at the
time of the LULD pause, all order times in force (``TIF's'') eligible
to participate in the closing cross today will continue to do so in the
proposed LULD Closing Cross. Those orders include the following Time In
Force markings: Market Hours Good-till-Cancelled (``MGTC''), Market
Hours Day (``MDAY''), System Hours Expire Time (``SHEX''), System Hours
Day (``SDAY''), System Hours Good-till-Cancelled (``SGTC''), or Good-
til-Market Close ``GTMC''). TIFs are different from order types which
are instructions that tell the NASDAQ system how to execute an order as
opposed to when to execute it. Each NASDAQ order type can be associated
with multiple potential TIFs but each order can have one and only one
actual TIF assigned to it by the entering firm. NASDAQ is focusing on
the TIF rather than the order type of the orders to determine which are
eligible to participate in the LULD Closing Cross.
    NASDAQ also proposes to permit the entry, modification, and
cancellation of additional orders (whether market or limit orders)
during the LULD Trading Pause up to the time of execution of the LULD
Closing Cross. Specifically, during an LULD Trading Pause that is
triggered or extended after 3:50 p.m., members will be permitted to
enter, modify, and cancel new market or limit orders up to the time of
execution of the LULD Closing Cross. New orders of any order type or
any time in force described in NASDAQ Rule 4751 will be eligible to
participate in the LULD Closing Cross. Any new order entered between
3:50 and 4:00 p.m. that is not executed in the LULD Closing Cross shall
be processed after the LULD Closing Cross is executed according to the
entering firm's instructions on that order. NASDAQ believes that
permitting the entry of such new orders will enhance the liquidity and
price discovery of the resulting LULD Closing Cross.
    Execution Processing. The closing price will be determined by
taking the closing book (MOC and LOC orders only), the remaining
eligible orders on the book prior to the LULD halt, and any new
interest entered after the LULD halt. Priority in the cross will be
price/time, with Imbalance Only orders more aggressive than the closing
price re-priced to the closing price but retaining their original time
priority. The execution algorithm for the LULD Closing Cross shall be
the same as currently used for the Cross. Specifically,
    (A) The Nasdaq Closing Cross will occur at the price that maximizes
the number of shares of Eligible Interest in the Nasdaq Market Center
to be executed;
    (B) If more than one price exists under subparagraph (A), the
Nasdaq Closing Cross shall occur at the price that minimizes any
Imbalance;
    (C) If more than one price exists under subparagraph (B), the
Nasdaq Closing Cross shall occur at the entered price at which shares
will remain unexecuted in the cross.
    Once the algorithm determines the proper closing price, the LULD
Closing Cross will execute all orders at the determined price in strict
price/time priority, rather than the complex priority currently set
forth in NASDAQ Rule 4754(b)(3). Excess interest at the closing price
will be available for execution against available Imbalance Only orders
on the opposite side of the market. Aggressive IO orders opposite the
side of the imbalance that were entered prior to other orders at
exactly the crossing price will be re-priced to the crossing price and
have priority over those orders.\15\ The LULD Closing Cross price will
be the Nasdaq Official Closing Price for stocks that participate in the
LULD Closing Cross.
---------------------------------------------------------------------------

    \15\ This treatment of IO Orders differs slightly from the
current closing cross where aggressive IO Orders may be re-priced to
either the best bid or offer in order to interact only with MOC and
LOC interest.
---------------------------------------------------------------------------

    Re-Opening Trading. After hours trading will begin immediately
following execution of the LULD Closing Cross. At that time, all
resting orders or newly entered orders not executed in the LULD Closing
Cross will be either cancelled or available for execution in after
hours trading based on the entering firm's instruction on the order.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \16\ in general, and furthers the objectives of
Section 6(b)(5),\17\ in particular, in that it is designed to promote
just and equitable principles of trade, remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
The proposal is consistent with this provision in that it will ensure
that the Exchange continues to comply with the LULD Plan, and
simultaneously provide for an effective pricing mechanism for the
critical period of the market close. The proposed LULD Closing Cross is
designed to balance the need for transparency and liquidity with the
need to move quickly from a Trading Pause to a closing price. NASDAQ
believes that it has accomplished these goals to the maximum extent
possible.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f (b).
    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    NASDAQ believes that the proposal is consistent with Section
6(b)(5) in that it will protect investors by responding effectively to
an LULD Trading Pause near the close of trading. First, the proposal is
only triggered in the event an LULD Trading Pause occurs in the final
ten minutes of trading, thereby minimizing the time when the LULD
Closing Cross will occur. Second, the proposal is designed to preserve
to the extent possible current order entry and trading behaviors,
thereby reducing the potential for member and investor

confusion. Third, the proposal is well-tailored to provide transparency
and predictability by clearly defining when the LULD Closing Cross will
occur, what orders will be included, what information will be
disseminated, how the execution algorithm will operate, and when after
hours trading will begin.
    The Exchange also believes that the proposal protects investors by
fully and fairly considering the risks of modifying the standard
Closing Cross, and weighing those against the risks created by an LULD
Trading Pause that occurs near the close of trading, and attempted to
mitigate those risks to the greatest extent possible. The decision to
prevent the cancellation or modification of previously entered MOC and
LOC orders is reasonable and prudent, preserving the benefits of
stability and predictability as well as preserving the opportunity for
members to avoid entering such orders if they choose. NASDAQ will
monitor to determine whether this decision undermines the Closing
Cross, and modify it via another rule filing if that occurs.
    Finally, the Exchange believes that, consistent with Section
6(b)(5), imposing price checks for volatility near the close is
prudent, and that delaying the LULD Closing Cross in one-minute
increments when such volatility occurs will protect the public and
investors. By definition, stocks that experience an LULD Trading Pause
near the close may be subject to volatility that could undermine the
validity of the closing price. Given the importance to the industry and
investors of a liquid and reliable closing price, the price check and
potential delays are a reasonable counter-balance to the risk of such
volatility.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. To the contrary, the
proposal is specifically designed to comply with the LULD Plan and,
thereby, to ensure cooperation between and among all national
securities exchanges and FINRA to promote uniform and effective
regulation of the national market system. NASDAQ believes that multiple
national securities exchanges will file proposed changes to their
closing processes to comply with Phase 2 of the LULD Plan. In
actuality, the proposal is pro-competitive because it promotes fair and
orderly markets and investor protection, which in turn will buttress
investor confidence and attract more investors into U.S. equities
markets.

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

    Written comments were neither solicited nor received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2014-004 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2014-004. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2014-004, and should
be submitted on or before February 4, 2014.
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00462 Filed 1-13-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 233 (Tuesday, December 4, 2018)]
[Notices]
[Pages 62633-62635]
[FR Doc No: 2018-26270]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84671; File No. SR-NASDAQ-2018-096]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 4756(c)(2)

November 28, 2018.
    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 16, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' 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.
---------------------------------------------------------------------------

    \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 allow the Exchange to aggregate Displayed
odd-lot Orders across price levels for transmission to network
processors as the Exchange's best priced Order under Rule 4756(c)(2).
While these amendments are effective upon filing, the Exchange has
designated the proposed amendments to be operative in the first quarter
of 2019, and will announce the precise date by Equity Trader Alert at
least thirty days prior to implementation.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange is proposing to amend Rule 4756 to allow the Exchange
to aggregate Displayed \3\ odd-lot Orders across price levels for
transmission to network processors as the Exchange's best ranked
Displayed Order(s), which is based on how NYSE Arca, Inc. handles such
orders pursuant to NYSE Arca Rule 7.36-E(b)(3).\4\ Rule 4756 concerns
entry and display of Quotes \5\ and Orders,\6\ and paragraph (c)
thereunder provides how the System \7\ will display Quotes and Orders
submitted to the System. Rule 4756(c)(2), which the Exchange is
proposing to amend, describes what the Exchange transmits to the
network processors as the Exchange's best priced Order. Specifically,
Rule 4756(c)(2) provides that, for each System Security,\8\ the
aggregate size of all Quotes and Orders at the best price to buy and
sell resident in the System will be transmitted for display to the
appropriate network processor, unless the aggregate size is less than
one round lot, in which case the aggregate size will be displayed in
the System Book Feed \9\ but not be transmitted to a network
processor.\10\ Thus, pursuant to Rule 4756(c)(2) Orders with an
aggregate size of less than one round lot at a particular price level
are displayed in the System Book Feed, but are not transmitted to a
network processor. For example, if the Nasdaq best bid is $10.00, and
there are the following three odd-lot Orders resting displayed on the
Nasdaq Book with no other interest resting on the Nasdaq Book--25
shares to buy at $10.00, 25 shares to buy at $9.99, and 50 shares to
buy at $9.98--the System will not transmit any of these Orders to the
appropriate processor, but rather will post them to the System Book
Feed.\11\
---------------------------------------------------------------------------

    \3\ Display is an Order Attribute that allows the price and size
of an Order to be displayed to market participants via market data
feeds. Certain Order Types may be non-displayed if they are not
assigned a Display Order Attribute, and all non-displayed Orders may
be referred to as ``Non-Displayed Orders'' (See Rule 4703(b)(3)(A)
[sic]). In contrast, an Order with a Display Order Attribute may be
referred to as a ``Displayed Order.'' See Rule 4703(k).
    \4\ See Securities Exchange Act Release No. 74796 (April 23,
2015), 80 FR 23838 (April 29, 2015) (SR-NYSEArca-2015-08).
    \5\ The term ``Quote'' means a single bid or offer quotation
submitted to the System by a Market Maker or Nasdaq Electronic
Communications Network and designated for display (price and size)
next to the Participant's Market Participant Identifier in the
Nasdaq Book. Quotes are entered in the form of Orders with
Attribution (as defined in Rule 4703). Accordingly, all Quotes are
also Orders. See Rule 4701(d).
    \6\ The term ``Order'' means an instruction to trade a specified
number of shares in a specified System Security submitted to the
Nasdaq Market Center by a Participant. An ``Order Type'' is a
standardized set of instructions associated with an Order that
define how it will behave with respect to pricing, execution, and/or
posting to the Nasdaq Book when submitted to Nasdaq. An ``Order
Attribute'' is a further set of variable instructions that may be
associated with an Order to further define how it will behave with
respect to pricing, execution, and/or posting to the Nasdaq Book
when submitted to Nasdaq. The available Order Types and Order
Attributes, and the Order Attributes that may be associated with
particular Order Types, are described in Rules 4702 and 4703. One or
more Order Attributes may be assigned to a single Order; provided,
however, that if the use of multiple Order Attributes would provide
contradictory instructions to an Order, the System will reject the
Order or remove non-conforming Order Attributes. See Rule 4701(e).
    \7\ The term ``Nasdaq Market Center,'' or ``System'' shall mean
the automated system for order execution and trade reporting owned
and operated by The Nasdaq Stock Market LLC. See Rule 4701(a).
    \8\ The term ``System Securities'' shall mean (1) all securities
listed on Nasdaq and (2) all securities subject to the Consolidated
Tape Association Plan and the Consolidated Quotation Plan except
securities specifically excluded from trading via a list of excluded
securities posted on www.nasdaqtrader.com. See Rule 4701(b).
    \9\ The term ``System Book Feed'' shall mean a data feed for
System Securities, generally known as the TotalView ITCH feed. See
Rule 4701(l).
    \10\ Consequently, the Exchange currently will aggregate and
transmit to the network processor odd-lot Orders at a particular
price level if such Orders aggregate to at least one round lot and
are priced better than the best-priced round lot interest on the
Nasdaq Book.
    \11\ The Exchange notes that the network processors only accept
quotations in round lots. As a consequence, if aggregated Orders do
not equal a round lot the Exchange will round down to the nearest
round lot for purposes of reporting to the appropriate network
processor. This proposal does not change this process.
---------------------------------------------------------------------------

    The Exchange is proposing to amend Rule 4756(c)(2) to allow the
Exchange to aggregate odd-lot sized Displayed Orders at multiple price
points that equal at least a round lot for purposes of transmitting the
Exchange's best ranked Displayed Order(s) to the appropriate processor.
In assigning a price to such aggregated odd-lot Orders, the Exchange
would use the highest (lowest) price to buy (sell) wherein the
aggregate size of all displayed buy (sell) interest in the System
greater (less) than or equal to that price is one round lot or greater.
Consequently, because the aggregated Displayed odd-lot Orders represent
the best price available on the Exchange, they would be transmitted to
the network processor as such. Using the example above, all three odd-
lot Orders resting displayed on the Nasdaq Book would be aggregated
into a round lot Order and reported to the appropriate processor for
quoting at a price of $9.98.\12\ The Exchange is proposing to amend
Rule 4756(c)(2) to add four new subparagraphs to the rule, which
provide that the Exchange will transmit to the appropriate processor
the highest (lowest) price to buy (sell) wherein the aggregate size of
all displayed buy (sell) interest in the System greater (less) than or
equal to that price is one round lot or greater, and that the aggregate
size of all displayed buy (sell) interest in the System greater (less)
than or equal to that price will be transmitted rounded down to the
nearest round lot.\13\
---------------------------------------------------------------------------

    \12\ The Exchange notes that it is not proposing to change how
it processes Orders for execution. Thus, Orders resting on the
Nasdaq Book will be executed in price/display/time priority pursuant
to Rule 4757.
    \13\ Supra note 10 [sic].
---------------------------------------------------------------------------

    The Exchange is also proposing to make clarifying changes to Rule
4756(c)(2). Currently, the rule does not note that the obligation to
report the highest (lowest) aggregate Displayed interest to buy (sell)
arises from Rule 602 of Regulation NMS. The Exchange is amending the
rule to affirmatively state that the transmission to the appropriate
network processor is done pursuant to Rule 602 of Regulation NMS. The
Exchange is also deleting the text concerning the display in the System
Book Feed of all Quotes and Orders at the best price to buy and sell
resident in the System that are less than one round lot. The Exchange
believes that this text is redundant of paragraph (1) of Rule 4756(c)
and serves no purpose under the clarified rule. The Exchange notes that
the clarifying changes do not alter how it currently handles Quotes and
Orders for display and trade reporting.
    The Exchange plans to implement the change proposed herein in the
first quarter of 2019, and will announce the precise date by Equity
Trader Alert at least thirty days prior to implementation.

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\14\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\15\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, because the proposed change would remove impediments to and
perfect the mechanism of a free and open market and a national market
system by allowing the Exchange to aggregate odd lot Orders across
multiple price levels for purposes of determining the Exchange's best
ranked Displayed Order(s) for transmission to the appropriate network
processor. The proposed change will provide market participants with
greater visibility into liquidity available on the Exchange via the
appropriate network processor. Because arriving marketable contra-side
Orders execute in price-time priority against resting odd-lot Orders
priced better than resting round-lot Orders, the Exchange believes that
it is appropriate to display such odd-lot interest on the public data
feeds as the Exchange's best bid or offer if in the aggregate, they
equal a round lot or more. The Exchange further believes that
aggregating such odd-lot Orders at the highest (lowest) price to buy
(sell) wherein the aggregate size of all buy (sell) interest in the
System greater (less) than or equal to that price is one round lot or
greater would remove impediments to and perfect the mechanism of a free
and open market because it represents the best aggregated execution
price for incoming sell (buy) Orders. The Exchange notes that the
incoming marketable interest would receive price improvement when
executing against any odd-lot orders priced better than the aggregated
displayed price. Last, the Exchange believes that the proposed
clarifying changes will help promote a better understanding of the
operation of the rule. As noted above, the clarifying changes do not
alter how the Exchange currently handles Quotes and Orders for display
and trade reporting.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. As noted above, the Exchange is
copying functionality that is currently in use by a competitor
exchange. The proposed change may increase the Exchange's position at
the National Best Bid and Offer, thus allowing the Exchange to receive
greater Order flow and, consequently, executions. This is the same
benefit that the competitor exchange has received since adopting the
process proposed herein. Thus, the proposed change is a competitive
response, but does not place any burden on competition because it is
copying a process used by a competitor exchange, which was approved by
the Commission.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \16\ and Rule 19b-
4(f)(6) thereunder.\17\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

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 protected]. Please include
File Number SR-NASDAQ-2018-096 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-NASDAQ-2018-096. 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-NASDAQ-2018-096 and should be submitted
on or before December 26, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26270 Filed 12-3-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 76 (Friday, April 19, 2019)]
[Notices]
[Page 16485]
[FR Doc No: 2019-07779]

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

ENVIRONMENTAL PROTECTION AGENCY

[ER-FRL-9044-4]

Environmental Impact Statements; Notice of Availability

    Responsible Agency: Office of Federal Activities, General
Information<PHONE_NUMBER> or https://www.epa.gov/nepa/.

Weekly receipt of Environmental Impact Statements
Filed 04/01/2019 Through 04/05/2019
Pursuant to 40 CFR 1506.9.

Notice

    Section 309(a) of the Clean Air Act requires that EPA make public
its comments on EISs issued by other Federal agencies. EPA's comment
letters on EISs are available at: https://cdxnodengn.epa.gov/cdx-enepa-public/action/eis/search.

EIS No. 20190044, Final, BLM, NM, Copper Flat Copper Mine, Review
Period Ends: 05/20/2019, Contact: Leighandra Keeven<PHONE_NUMBER>
EIS No. 20190057, Final, USFS, WY, Medicine Bow Landscape Vegetation
Analysis (LaVA) Project, Review Period Ends: 05/20/2019, Contact:
Melissa Martin<PHONE_NUMBER>
EIS No. 20190058, Final, FHWA, NY, Hunts Point Interstate Access
Improvement Project, Contact: Erik Koester--NYSDOT Project Director
718-482-4683. Under 23 U.S.C. 139(n)(2), FHWA has issued a single
document that consists of a final environmental impact statement and
record of decision. Therefore, the 30-day wait/review period under NEPA
does not apply to this action.
EIS No. 20190059, Draft, BLM, WY, Moneta Divide Natural Gas and Oil
Development Project, Comment Period Ends: 07/18/2019, Contact: Kristin
Yannone<PHONE_NUMBER>
EIS No. 20190060, Draft, USFWS, CA, Proposed Habitat Conservation Plan
and Incidental Take Permit for Sierra Pacific Industries, Comment
Period Ends: 06/18/2019, Contact: Kim Turner<PHONE_NUMBER>
EIS No. 20190061, Draft, BIA, CA, Redding Rancheria Fee-to-Trust and
Casino Project, Comment Period Ends: 06/03/2019, Contact: Chad
Broussard<PHONE_NUMBER>
EIS No. 20190062, Final, FERC, FL, Eagle LNG Partners Jacksonville, LLC
Jacksonville Project, Review Period Ends: 05/20/2019, Contact: Office
of External Affairs<PHONE_NUMBER>

Amended Notice

EIS No. 20180087, Draft, USDA, NAT, Southern Gardens Citrus Nursery,
LLC Permit to Release Genetically Engineered Citrus tristeza virus
Draft Environmental Impact Statement, Comment Period Ends: 04/30/2019,
Contact: Joanne Serrels<PHONE_NUMBER>. Revision to FR Notice Published
05/11/2018; APHIS has reopened the comment period to end on 04/30/2019.

    Dated: April 15, 2019.
Robert Tomiak,
Director, Office of Federal Activities.
[FR Doc. 2019-07779 Filed 4-18-19; 8:45 am]
 BILLING CODE 6560-50-P


(c) Electronic exhibits. No later than five days after the
Secretary serves a final record index, the parties shall submit
electronically to the Secretary a copy of all exhibits that were
admitted, or offered and not admitted, during the hearing, and any
other exhibits that were admitted after the hearing. The parties shall
submit such evidence in the form and manner to be specified by the
Office of the Secretary in the materials posted on the Commission's
website.
    (1) Certification of Inability to Submit Exhibits Electronically. A
person who reasonably cannot submit exhibits electronically must file a
certification under Sec.  201.351(c)(1) that explains why the person
reasonably cannot comply. The filing also must indicate the expected
duration of the person's reasonable inability to comply, such as
whether the certification is intended to apply to a solitary submission
or all submissions made during the proceeding. The certification is
immediately effective. Upon filing the certification, it will be part
of the record of the proceeding, and the person shall submit originals
of any exhibits that have not already been submitted to the Secretary
by other means.
    (2) Signature requirement. Electronic submissions that require a
signature pursuant to Sec.  201.153 may be signed with an ``/s/''
notation, but in that event, the use of the filer's login and password
to file a document shall be deemed the signature of the person making
the submission for purposes of Sec.  201.153.
    (3) Certification. The parties shall certify that exhibits and
other documents or items submitted to the Secretary under this section
are true and accurate copies of exhibits that were admitted, or offered
and not admitted, during the hearing, or any other exhibits that were
admitted after the hearing.
* * * * *

0
12. Section 201.420 is amended by revising paragraph (e) and adding
paragraph (f) to read as follows:

Sec.  201.420  Appeal of determinations by self-regulatory
organizations.

* * * * *
    (e) Certification of the record; service of the index. Fourteen
days after receipt of an application for review or a Commission order
for review, the self-regulatory organization shall certify and file
electronically in the form and manner to be specified by the Office of
the Secretary in the materials posted on the Commission's website one
unredacted copy of the record upon which the action complained of was
taken.
    (1) The self-regulatory organization also shall file electronically
with the Commission one copy of an index to such record, and shall
serve upon each party one copy of the index. If such index contains any
sensitive personal information, as defined in paragraph (e)(2) of this
section, the self-regulatory organization also shall file
electronically with the Commission one redacted copy of such index,
subject to the requirements of paragraph (e)(2) of this section.
    (2) Sensitive personal information. Sensitive personal information
is defined as a Social Security number, taxpayer identification number,
financial account number, credit card or debit card number, passport
number, driver's license number, state-issued identification number,
home address

(other than city and state), telephone number, date of birth (other
than year), names and initials of minor children, as well as any
unnecessary health information identifiable by individual, such as an
individual's medical records. Sensitive personal information shall not
be included in, and must be redacted or omitted from, all filings
subject to:
    (i) Exceptions. The following information may be included and is
not required to be redacted from filings:
    (A) The last four digits of a financial account number, credit card
or debit card number, passport number, driver's license number, and
state-issued identification number;
    (B) Home addresses and telephone numbers of parties and persons
filing documents with the Commission;
    (C) Business telephone numbers; and
    (D) Copies of unredacted filings by regulated entities or
registrants that are available on the Commission's public website.
    (f) Certification. Any filing made pursuant to this section, other
than the record upon which the action complained of was taken, must
include a certification that any information described in paragraph
(e)(2) of this section has been omitted or redacted from the filing.

0
13. Section 201.440 is amended by revising paragraph (d) and adding
paragraph (e) to read as follows:

Sec.  201.440  Appeal of determinations by the Public Company
Accounting Oversight Board.

* * * * *
    (d) Certification of the record; service of the index. Within
fourteen days after receipt of an application for review, the Board
shall certify and file electronically in the form and manner to be
specified by the Office of the Secretary in the materials posted on the
Commission's website one unredacted copy of the record upon which it
took the complained-of action.
    (1) The Board shall file electronically with the Commission one
copy of an index of such record, and shall serve one copy of the index
on each party. If such index contains any sensitive personal
information, as defined in paragraph (d)(2) of this section, the Board
also shall file electronically with the Commission one redacted copy of
such index, subject to the requirements of paragraphs (d)(2) of this
section.
    (2) Sensitive personal information. Sensitive personal information
is defined as a Social Security number, taxpayer identification number,
financial account number, credit card or debit card number, passport
number, driver's license number, state-issued identification number,
home address (other than city and state), telephone number, date of
birth (other than year), names and initials of minor children, as well
as any unnecessary health information identifiable by individual, such
as an individual's medical records. Sensitive personal information
shall not be included in, and must be redacted or omitted from, all
filings subject to:
    (i) Exceptions. The following information may be included and is
not required to be redacted from filings:
    (A) The last four digits of a financial account number, credit card
or debit card number, passport number, driver's license number, and
state-issued identification number;
    (B) Home addresses and telephone numbers of parties and persons
filing documents with the Commission;
    (C) Business telephone numbers; and
    (D) Copies of unredacted filings by regulated entities or
registrants that are available on the Commission's public website.
    (e) Certification. Any filing made pursuant to this section, other
than the record upon which the action complained of was taken, must
include a certification that any information described in paragraph
(d)(2) of this section has been omitted or redacted from the filing.

    By the Commission.

    Dated: November 17, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-25747 Filed 12-29-20; 8:45 am]
BILLING CODE 8011-01-P