[Federal Register Volume 81, Number 54 (Monday, March 21, 2016)]
[Notices]
[Pages 15141-15143]
[FR Doc No: 2016-06239]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77374; File No. SR-NYSEARCA-2016-42]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rule 7.33 To Conform the Exchange's Rules to Industry-Wide
Standards for Recording the Capacity in Which an ETP Holder Executes a
Transaction

March 15, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on March 4, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') 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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Arca Equities Rule 7.33 to
conform the Exchange's rules to industry-wide standards for recording
the capacity in which an ETP Holders [sic] executes a transaction. The
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    NYSE Arca Equities Rule 7.33 (``Rule 7.33'') currently provides
that ETP Holders may enter proprietary orders and agency orders for the
account of a customer into the NYSE Arca Marketplace \4\ and that
proprietary orders are subject to the same display and execution
processes as agency orders. Rule 7.33 further provides that an ETP
Holder entering a proprietary order shall mark the order with the
appropriate designator to identify the order as proprietary.
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    \4\ The term ``NYSE Arca Marketplace'' is defined in NYSE Arca
Equities Rule 1.1.
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    As proposed, Rule 7.33 would be amended to add a clause specifying
that ETP Holders must input accurate information into the NYSE Arca
Marketplace, including, but not limited to, identifying the capacity in
which the ETP Holder entered each order, as follows: principal, agency,
or riskless principal.\5\ The Exchange would delete the current clause
relating to the entry of proprietary orders and agency orders for the
account of a customer and the clause providing that ETP Holders
entering proprietary orders mark the order with the appropriate
designator to identify the order as proprietary as redundant. The
Exchange proposes to retain the clause providing that proprietary
orders would be subject to the same display and execution processes as
agency orders.
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    \5\ In general, the term ``capacity'' refers to whether a
broker-dealer acts as agent, i.e., directly on behalf of a customer,
or whether the broker-dealer acts as principal, i.e., for its own
account, in a transaction. A riskless principal transaction is one
where a broker-dealer receives a customer order and then immediately
executes an identical order in the marketplace, while taking on the
role of principal, in order to fill the customer order pursuant to
NYSE Arca Equities Rule 5320.
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    By requiring ETP Holders to identify the capacity in which they
enter an order, the Exchange would be harmonizing its order entry
requirements with those of other national securities exchanges.\6\ The
proposed changes would not alter an ETP Holder's obligation to meet
order audit trail system requirements, as set forth in the Rule 7400
Series (Order Audit Trail System).
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    \6\ See, e.g., BATS Exchange, Inc. (``BATS'') Rule 11.21; BATS
Y-Exchange, Inc. (``BATS-Y'') Rule 11.21; EDGA Exchange, Inc.
(``EDGA'') Rule 11.5; EDGX Exchange, Inc. Rule 11.5; and NASDAQ
Stock Market LLC (``NASDAQ'') Rule 4611(a)(6). The Exchange's
affiliates New York Stock Exchange LLC (``NYSE'') and NYSE MKT LL
[sic] (``NYSE MKT'') impose the same marking requirements on
clearing member organizations. See NYSE Rule 132.30(9) & NYSE MKT
Rule 132.30(9).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\8\ in particular, because it
is designed to promote just and equitable principles of trade and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. The Exchange believes that the
proposed rule change would remove impediments to and perfect the
mechanism of a free and open market and national market system because
it would provide greater harmonization between order entry on the
Exchange and other marketplaces, resulting in greater uniformity and
more efficient order entry to enable ETP Holders to use the same order-
marking conventions across all equities markets. As such, the proposed
rule change would foster cooperation and coordination with persons
engaged in facilitating transactions in securities and would remove
impediments to and perfect the mechanism of a free and open market and
a national market system.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues, but rather it is designed
to provide greater harmonization between the Exchange and other markets
in the marking of orders, resulting in more uniform and efficient order
entry.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Because the 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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_ADDRESS>Please include
File Number SR-NYSEARCA-2016-42 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-NYSEARCA-2016-42. 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 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; 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-NYSEARCA-2016-42 and should
be submitted on or before April 11, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-06239 Filed 3-18-16; 8:45 am]
 BILLING CODE 8011-01-P


assets if they change because of the incentive; and
    (vi) A list of the Bulk Electric System Cyber Systems associated
with each of the Bulk Electric System assets including details on their
use.
    (2) For applications under the National Institute of Standards and
Technology Framework Approach:
    (i) A description of the public utility's current cybersecurity
posture;
    (ii) A description of the public utility's desired cybersecurity
posture;
    (iii) A description of the quantified risk factors being addressed
through the proposed incentive actions.
    (3) For applications requesting an increase in rate of return on
equity of 200 basis points:
    (i) The anticipated cost of the capital investment; and
    (ii) The identity of the Commission jurisdictional rate schedule(s)
under which it will recover the increased return on equity.
    (4) For applications requesting deferred cost recovery:
    (i) A description of any expenses, including whether the expenses
are:
    (A) Expenses associated with third-party provision of hardware,
software, and computing networking services;
    (B) Expenses for training to implement new cybersecurity
enhancements; or
    (C) Other transition expenses, such as risk assessments by third
parties or internal system reviews, and initial responses to findings
of such assessments.
    (ii) Estimates of the cost of such expenses;
    (iii) When the costs are expected to be incurred;
    (iv) A narrative explanation of how the expenses meet the requested
Critical Infrastructure Protection Incentive Approach or National
Institute of Standards and Technology Framework Approach.
    (f) Reporting requirements. A public utility that has received
cybersecurity incentives under this section must, within 120 days of
completion of upgrades for which it receives incentives, make an
informational filing and must make subsequent informational filings
annually thereafter detailing the specific investments that were made
pursuant to the Commission's approval and the corresponding FERC
account used. An incentive recipient must describe the parts of its
network that it upgraded in addition to the nature and cost of the
various capital investments. For incentives where the Commission allows
deferral of expenses, annual informational filings should describe such
expenses in sufficient detail to demonstrate that such expenses are
specifically related to the cybersecurity investment granted incentives
and not for ongoing services including system

maintenance, surveillance, and other labor costs.
    (1) A public utility that receives incentive-based rate treatment
under the Critical Infrastructure Protection Incentive Approach must
also describe in its informational filings implementation of the
enhanced security controls, as applicable, in all the topics covered by
the Critical Infrastructure Protection Reliability Standards. For the
first informational filing, the public utility must provide
documentation to demonstrate voluntary application of identified
Critical Infrastructure Protection Reliability Standards to facilities
that are not currently subject to those requirements. For subsequent
annual informational filings, the public utility must provide an
updated version of the supporting documentation showing any changes
from the prior informational filing as well as information on any
period of time during the reported year where the public utility ceased
to voluntarily apply identified Critical Infrastructure Protection
Reliability Standards to facilities that are not currently subject to
those requirements.
    (2) A public utility that receives incentive-based rate treatments
under the National Institute of Standards and Technology Framework
Approach must also include information that demonstrates:
    (i) The acquisition and installation of required network
components, including confirmation that funds have been expended on the
necessary equipment through documentation such as purchase orders,
receipts, licensing agreements, and installation documentation with
specified time periods;
    (ii) Attainment of necessary training and personnel, including
documentation such as third-party contractor agreements, training
program curricula, and official job descriptions;
    (iii) Network and sensor node recognition optimization through such
items as configuration files, system logs, configuration settings, and
a description of its location on the affected network;
    (iv) Incorporation of sensor nodes in the enterprise level incident
monitoring and response plan including attesting that the information
would be included in operational activities such as incident response
plans, playbooks, and Standard Operating Procedures.

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Cybersecurity Incentives

DANLY, Chairman, and GLICK, Commissioner, concurring:
    1. Threats to the cybersecurity of the bulk power system are
numerous and growing. Ensuring that the system is adequately protected
against those threats is an issue of national importance and one that
must remain a priority of this Commission. Accordingly, we support this
notice of proposed rulemaking (NOPR) as a means for soliciting further
comments on whether this particular incentives-based approach is a just
and reasonable and not unduly discriminatory or preferential approach
to improving public utilities' cybersecurity posture.
    2. We write separately to highlight two general issues that we
believe require additional attention. The first issue is whether the
Commission can better address cybersecurity threats by directing NERC
to expand its critical infrastructure protection (CIP) standards to
require some or all of the investments contemplated in this NOPR.
Although we appreciate the appeal of an incentives-based approach, the
importance of cybersecurity demands us to at least consider whether we
should mandate the best practices contemplated in this NOPR rather than
simply trying to induce public utilities to adopt them.
    3. The second issue goes to the heart of what the NOPR intends to
achieve--whether public utilities are not adopting the contemplated
measures because the existing financial incentives are insufficient. We
encourage commenters to address whether--and, if so, why--additional
measures, such as an elevated ROE or deferred cost recovery, are
necessary to incentivize public utilities to adopt additional
cybersecurity measures.
    For these reasons, we respectfully concur.

James P. Danly,

Chairman.

Richard Glick,

Commissioner.

[FR Doc. 2021-01986 Filed 2-4-21; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: January 3, 2008 (Volume 73, Number 2)]
[Notices]
[Page 524-526]
[DOCID:fr03ja08-59]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57037; File No. SR-BSE-2007-53]

Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Opening of the Market of the Boston Options Exchange

December 21, 2007.
    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 20, 2007, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. The Exchange filed the proposed rule change pursuant to
section 19(b)(3)(A)(iii) \3\ of the Act and Rule 19b-4(f)(5)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(5).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to delay the opening of trading in the event
of unusual trading activity in a particular series or instrument. The
text of the proposed rule change is available on the Exchange's Web
site at http://www.bostonstock.com, at the Exchange's principal office,

and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change, and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has substantially 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
    BSE proposes to amend the BOX Rules \5\ to delay the opening of
trading in the event of unusual trading activity in a particular series
or instrument on the Boston Options Exchange, (``BOX''). BOX believes
that delaying the opening of trading in the event of unusual

trading activity will help to ensure a fair and orderly market opening.
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    \5\ Capitalized terms not otherwise defined herein shall have
the meanings prescribed under the BOX Rules.
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Delayed Series Opening
    The Exchange will delay the opening of an options series if a
Market Maker's quote crosses the Theoretical Opening Price (``TOP'')
\6\ by more than a certain percentage and certain amount of the TOP, as
determined on a periodic, series-by-series basis by the Market
Regulation Center (``MRC''). Such a delayed series opening will be
announced to all BOX Participants via the Trading Host and the Market
Operations Center (``MOC'') will contact the Market Maker whose quotes
caused the delayed opening to verify the accuracy of his or her quotes.
Once the Market Maker confirms or amends his or her quotes, the MRC
will open the series for trading.
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    \6\ The Theoretical Opening Price ``is that price at which the
Opening Match would occur at the current time, if that time were the
opening, according to the Opening Match procedures [described in
Chapter V, Section 9(e) of the BOX Rules].'' See BOX Rules, Chapter
V, Section 9(b).
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Delayed Class Opening
    The Exchange will delay the opening of an options class if the sum
of the volume for all of the series within a class exceeds a certain
amount of series or a certain amount of contracts, as determined on a
periodic, class-by-class basis by the MRC. Such a delayed class opening
will be announced to all BOX Participants via the Trading Host. MRC
will investigate the cause of the high volume or amount in the class
and once resolved, will open the class for trading.
Discussion
    By implementing a mechanism whereby the opening of a particular
series or instrument may be delayed under certain enumerated
circumstances, all BOX Market Makers will be protected equally from the
unreasonable risk of multiple, nearly simultaneous executions caused by
communication failures or systemic errors. Like auto-quote systems used
on other options exchanges, the primary method for Market Makers to
update their quotes on BOX is to post and update quotes on multiple
series of options at the same time through the use of ``bulk quotes.''
\7\ Generally, these quotes are based on the Market Maker's proprietary
pricing models that rely on various factors, including the price of the
underlying security and that security's market volatility. As these
variables change, a Market Maker's pricing model and automated quote
system will continuously enter bulk quotes for most or all of the
series in the class.
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    \7\ A ``bulk quote'' message is a single message from a Market
Maker that simultaneously updates all of the Market Maker's quotes
in multiple series in a class at the same time.
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    In most instances, a Market Maker sends a message to BOX to update
or refresh his or her quote on at least one of the series in his or her
assigned class after each execution by the Market Maker in that options
series or any movement in the underlying security's price. If, however,
a Market Maker's pricing model and automated quote update system
malfunction, the Market Maker's bulk quote update could inadvertently
execute across all of the series in the assigned class.
    This can be especially problematic if a Market Maker experiences a
technical breakdown in either the Market Maker's communication link
with BOX or the Market Maker's automated trading and quotation system
during the Opening Match. Trading on BOX opens by ``processing the
series of a class in a random order, starting promptly after the
opening for trading of the underlying security in the primary market.''
\8\ If a Market Maker is experiencing technical difficulties it can be
executed against numerous times nearly simultaneously as BOX's Opening
Match opens each options series within a class. This occurrence can
create huge unintended principal positions for the Market Maker and
expose the Market Maker to unnecessary market risk.
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    \8\ See BOX Rules, Chapter V, Section 9(e)(i).
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    Firm risk management procedures dictate that Market Makers must
take into account the possibility of such errors and the corresponding
risk to the Market Maker and the firm. As a result, the BSE believes
that Market Makers widen their quotes, quote less aggressively, and
limit their quote size in order to avoid such unintended executions and
the attendant risks and costs, all to the detriment of customers and
other market participants. The mechanism outlined in this proposal is
designed to promote Market Maker confidence that these risks have been
alleviated or eliminated and in turn bolster their ability to quote
more effectively on the BOX Market. Thus, Market Maker quote widths
should narrow, quotes should be entered more aggressively, and quote
size should increase, all resulting in increased liquidity on the
opening of the BOX Market.
    The proposed rule change is intended to detect situations where
price and volume seem to suggest that unusual market conditions exist.
By implementing a mechanism whereby the opening of a series or
instrument may be delayed in the event of unusual trading activity,
unintentional and erroneous trades may be prevented from occurring.
Unintentional and erroneous trades do not properly reflect the true
nature of the market and subject Market Makers to unreasonable market
risk, multiple executions and clearing fees, with no real economic
justification behind the trades. The Exchange believes the proposed
rule change will assist in reducing these inefficiencies and risks by
preventing a BOX Market Maker from erroneously and automatically
trading multiple times during the Opening Match.
    The MOC is best suited to contact a Market Maker in the event that
the proposed mechanism is triggered at the individual series level. If
and when needed, the MOC would expeditiously contact the Market Maker
responsible for the unusual quotes to determine if they were accurate
and intentional or were in fact erroneous. This quick response by the
MOC serves two purposes. First, if the Market Maker involved informs
the MOC that the quotes in question were intentionally and accurately
entered, then the MOC will quickly relay this information to the MRC
and remove this particular barrier preventing the series from opening.
Second, if the MOC's contact with the Market Maker confirms that the
quotes or orders were indeed erroneously sent to BOX and thus
unreliable, the Market Maker will be able to promptly amend its quotes,
whereby the MOC will notify the MRC that the issue has been resolved
and the series will again be ready to open.
    The proposed mechanism also accounts for unusual activity on the
opening of the BOX Market in an entire instrument as a whole. Certain
conditions on the opening of the BOX Market may not trigger the
parameters set at the individual series level. However, where a Market
Maker has nonetheless entered unintended erroneous quotes on BOX,
particularly excessive trading over normal levels could still cause
significant inefficiencies and expose the Market Maker to unintended
risk. This excessive volume could occur either in the number of series
or the number of contracts that would trade in that instrument on the
open. Again, providing a system whereby the MRC will have the ability
to suspend the opening of an instrument at the class level will protect
Market Makers from exposure to the risk and negative results that would
otherwise accompany trading on these erroneous quotes.

    The MRC is able to evaluate historical data from the opening of the
BOX Market. Statistical analysis of this data shows the number of
contracts and number of series that typically trade in each instrument
on the opening of the BOX Market. Using this data, the MRC will set
finite upper volume levels, ``y'' and ``z'', for both the number of
series and number of contracts that will be able to trade on the open.
These levels will be assigned on an individual basis for each
instrument that is listed and traded on the BOX Market.
    The MRC will periodically evaluate the parameters to be used in
determining the applicable percentages, amounts and volumes as
discussed above. These parameters will be coded into the Trading Host
and will be applied to all Market Maker quotes on an equal basis.
Periodic review will enable the proposed mechanism to function as
intended by allowing for adjustment of these parameters, when
appropriate. The MRC will also review these parameters if and when the
series and class opening delays are triggered. This will allow the MRC
to determine whether the quotes in question, in the interests of both
the Market Maker and BOX, should be flagged and prevent the series or
instrument from opening for trading. Thus, the combination of periodic
and event specific review of the parameters will allow for optimal
threshold settings and the function of the mechanism as designed.
    The Exchange also is proposing to delete current subparagraph g(i),
which provides that the BOX Trading Host will not open a series if the
opening price is not within an acceptable range as determined by the
MRC and will be announced to all BOX Participants via the Trading
Host.\9\ The Exchange believes that proposed subparagraph g(ii) is an
improvement to the current subparagraph g(i). The proposed (g)ii
contains parameters which will be hard coded into the system. The
Exchange believes these new parameters more effectively and efficiently
addresses situations where the opening should be delayed than the
current g(i) which relies on a variety of factors. These new parameters
were determined after reviewing trading activity over time. As such,
the new g(ii) will better assist in opening the market in a fair and
orderly manner.
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    \9\ In making this determination the MRC will consider, among
other factors, all prices that exceed a variance greater than either
$.50 or 20% to the previous day's closing price.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\10\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\11\ in particular, in that it
is designed to promote just and equitable principles of trade, to
prevent fraudulent and manipulative acts, 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.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were either solicited or received.

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

    Because the proposed rule change effects a change in an existing
order-entry or trading system that: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not have
the effect of limiting the access to or availability of the system, the
proposed rule change has become effective pursuant to section
19(b)(3)(A) of the Act \12\ and subparagraph (f)(5) of Rule 19b-4
thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(5).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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 the furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-BSE-2007-53 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BSE-2007-53. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of NYSE. 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-BSE-2007-53 and
should be submitted on or before January 24, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E7-25568 Filed 1-2-08; 8:45 am]

BILLING CODE 8011-01-P


 [Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)] [Rules and Regulations] [Pages 39773-39774] [FR Doc No: 2011-16953]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2011-0562]

Drawbridge Operation Regulation; Christina River, Wilmington, DE

AGENCY: Coast Guard, DHS.

ACTION: Notice of temporary deviation from regulations.

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

SUMMARY: The Commander, Fifth Coast Guard District has issued a

temporary deviation from the regulations governing the operation of the

Third Street Bridge on Route 13, at mile 2.3, across the Christina

River in Wilmington, DE. The deviation restricts the operation of the

draw span in order

to facilitate the inspection of the operational equipment.

DATES: This deviation is effective from 8 a.m. July 18, 2011 until 5

p.m. August 5, 2011.

ADDRESSES: Documents mentioned in this preamble as being available in

the docket are part of docket USCG-2011-0562 and are available online

by going to http://www.regulations.gov, inserting USCG-2011-0562 in the

``Keyword'' box and then clicking ``Search''. They are also available

for inspection or copying at the Docket Management Facility (M-30),

U.S. Department of Transportation, West Building Ground Floor, Room

W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9

a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,

call or e-mail Terrance Knowles, Environmental Protection Specialist,

Fifth Coast Guard District, at telephone<PHONE_NUMBER>, e-mail

<EMAIL_ADDRESS>If you have questions on viewing the

docket, call Renee V. Wright, Program Manager, Docket Operations,

telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Delaware Department of Transportation

(DELDOT), who owns and operates this bascule type drawbridge, has

requested a temporary deviation from the current operating regulations

set out in 33 CFR 117.237(c) to facilitate the inspection of the

operational equipment within the structure.

    The Third Street Bridge, at mile 2.3, across the Christina River in

Wilmington, DE has a vertical clearance in the closed position to

vessels of 14 feet above mean high water.

    Under the regular operating schedule the bridge opens on signal as

required by 33 CFR 117.237(c).

    Under this temporary deviation, the Third Street Bridge will

require two hours advance notice to open, each day from 8 a.m. to 5

p.m., on July 18, 2011 until August 5, 2011. At all other times, the

Third Street Bridge will open on signal.

    Vessels that can pass under the closed span may do so at all times.

There are no alternate routes for vessels transiting this section of

the Christina River.

    There are three vessels that travel through the bridge several

times per week whose vertical clearance surpasses the closed bridge

position, requiring an opening of the draw span. DELDOT has coordinated

this replacement work with these three waterway users and the Coast

Guard will inform the other users of the waterway through our Local and

Broadcast Notices to Mariners of the closure periods for the bridge so

that vessels can arrange their transits to minimize any impacts caused

by the temporary deviation. The bridge may be delayed when opening for

an emergency during the proposed equipment inspections.

    In accordance with 33 CFR 117.35(e), the drawbridge must return to

its regular operating schedule immediately at the end of the designated

time period. This deviation from the operating regulations is

authorized under 33 CFR 117.35.

    Dated: June 23, 2011.

Waverly W. Gregory, Jr.,

Bridge Program Manager. By direction of the Commander, Fifth Coast

Guard District.

[FR Doc. 2011-16953 Filed 7-6-11; 8:45 am]

BILLING CODE 4910-15-P


[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Notices]
[Pages 19182-19184]
[FR Doc No: 2020-07090]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88530; File No. SR-CBOE-2020-031]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Rule 5.24

March 31, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 31, 2020, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') 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.
---------------------------------------------------------------------------

    \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

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 5.24.\3\ The text of the proposed rule change is provided
in Exhibit 5.
---------------------------------------------------------------------------

    \3\ The Exchange originally submitted a substantially similar
rule change on March 30, 2020 (SR-CBOE-2020-030). On March 31, 2020,
the Exchange withdrew that filing and submitted this filing.
---------------------------------------------------------------------------

    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 5.24 regarding the Exchange's
business continuity and disaster recovery plans. Rule 5.24 describes
which Trading Permit Holders (``TPHs'') are required to connect to the
Exchange's backup systems as well as certain actions the Exchange may
take as part of its business continuity plans so that it may maintain
fair and orderly markets if unusual circumstances occurred that could
impact the Exchange's ability to conduct business. This includes what
actions the Exchange would take if its trading floor became inoperable.
Specifically, Rule 5.24(e) states if the Exchange trading floor becomes
inoperable, the Exchange will continue to operate in a screen-based
only environment using a floorless configuration of the System that is
operational while the trading floor facility is inoperable. The
Exchange would operate using that configuration only until the
Exchange's trading floor facility became operational. Open outcry
trading would not be available in the event the trading floor becomes
inoperable.\4\ Rule 5.24(e)(1) also currently states in the event that
the trading floor becomes inoperable, trading will be conducted
pursuant to all applicable System Rules, except that open outcry Rules
would not be in force, including but not limited to the Rules (or
applicable portions) in Chapter 5, Section G,\5\ and that all non-
trading rules of the Exchange would continue to apply. The Exchange
recently proposed additional exceptions to Rules that would not apply
during a time in which the trading floor in inoperable.\6\
---------------------------------------------------------------------------

    \4\ Pursuant to Rule 5.26, the Exchange may enter into a back-up
trading arrangement with another exchange, which could allow the
Exchange to use the facilities of a back-up exchange to conduct
trading of certain of its products. The Exchange currently has no
back-up trading arrangement in place with another exchange.
    \5\ Chapter 5, Section G of the Exchange's rulebook sets forth
the rules and procedures for manual order handling and open outcry
trading on the Exchange.
    \6\ See Securities Exchange Act Release Nos. 88386 (March 13,
2020), 85 FR 15823 (March 19, 2020) (SR-CBOE-2020-019); and 88447
(March 20, 2020) (SR-CBOE-2020-023). The rule changes adopted in
that filing are effective until May 15, 2020, unless extended. See
Rule 5.24(e)(1).
---------------------------------------------------------------------------

    As of March 16, 2020, the Exchange suspended open outcry trading to
help prevent the spread of the novel coronavirus and is currently
operating in an all-electronic configuration. While the trading floor
was open, the Exchange facilitated compression forums on the trading
floor at the end of each calendar week, month, and quarter in which
Trading Permit Holders reduce open positions in series of SPX options
in order to mitigate the effects of capital constraints on market
participants and help ensure continued depth of liquidity in the SPX
options market.
    The Exchange recently adopted Rule 5.24(e)(1)(E) to permit the
Exchange to offer electronic compression forums while the trading floor
is closed.\7\ Pursuant to Rule 5.24(e)(1)(E), the Exchange will make
available an electronic ``compression forum'' in the same manner as an
open outcry ``compression forum'' as set forth in Rule 5.88, except as
provided in subparagraph (E). In both electronic and open outcry
compression forums, TPHs may submit lists of open positions to the
Exchange that they wish to close against opposing (long/short)
positions of other TPHs, which the Exchange would then aggregate into a
single list that would allow TPHs to more easily identify those
positions with counterparty interest on the Exchange. The list provided
by the Exchange includes a complete list of all possible combinations
of offsetting multi-leg positions to each TPH that submitted
compression-list positions to the Exchange.\8\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 88490 (March 26,
2020) (SR-CBOE-2020-026).
    \8\ See Rule 5.88(a)(4); see also Rule 5.24(e)(1)(E)(ii).
---------------------------------------------------------------------------

    Rule 5.88, Interpretation and Policy .01 provides that for purposes
of Rule 5.88, multi-leg positions include vertical call spreads,
vertical put spreads, and box spreads, which interpretation and policy
applies to both electronic and open outcry compression forums. The
proposed rule change would add Rule 5.24(e)(1)(E)(iv), which states
that notwithstanding Interpretation and Policy .01 in Rule 5.88, for
purposes of subparagraph (E) (and thus for purposes of electronic
compression forums held while the trading floor is inoperable), multi-
leg positions include vertical call spreads, vertical put spreads,
combos (i.e., purchase (sale) of a call and a sale (purchase) of a put
with the same expiration date and strike price), and box spreads.
Because a combo is essentially a ``synthetic future,'' it is a common
multi-leg strategy among market participants. Market participants

often establish market neural hedges by purchasing (selling) a number
of combos with an offsetting SPX option position.\9\ As a result,
market participants maintain a significant number of combos in their
portfolios. Additionally, when markets are volatile (as they have been
recently), market participants often take on positions in a larger
range of strikes, which positions can be put together as combos. The
Exchange believes closing combo positions will be advantageous because
such positions can be risk neutral, which means the closing of the
entire combo has little or no impact on a TPH's risk profile. However,
the current compression forum framework limits multi-leg positions to
vertical call \10\ and put \11\ spreads and boxes. The Exchange notes
that just as one put spread and one call spread combine to create a box
spread, two combos similarly create a box spread.\12\ For example, a
box spread would be entered by purchasing 100 DEC 2040 calls and
selling 100 DEC 2070 calls (i.e., bull call spread) and selling 100 DEC
2040 puts and purchasing 100 DEC 2070 puts (i.e., bear put spread). The
purchase of 100 DEC 2040 calls and sale of 100 DEC 2040 puts comprises
a combo (as does the sale of 100 DEC 2070 calls and purchase of 100 DEC
2070 puts). The Exchange believes that providing TPHs with this
additional way to identify multi-leg positions with offsetting interest
will enable more efficient closing of such common strategy positions.
---------------------------------------------------------------------------

    \9\ See, e.g., Rule 5.85(e).
    \10\ A vertical call spread involves the purchasing and selling
of an equal number of call options with the same expiration date but
different strike prices.
    \11\ A vertical put spread involves the purchasing and selling
of an equal number of put options with the same expiration date but
different strike prices.
    \12\ A box spread involves purchasing (selling) a bull call
spread and purchasing (selling) a bear put spread. In other words, a
box spread is composed of a long (short) call and short (long) put
position at one strike price and a short (long) call and long
(short) put position at another strike price.
---------------------------------------------------------------------------

    Like the other multi-leg strategies currently covered by the rule,
the Exchange will compile a list of all possible combos. The lists
generated by the Exchange pursuant to Rule 5.24(e)(1)(E) are provided
to TPHs for informational purposes only. Individual TPHs continue to
determine whether to submit compression-list positions; whether to
participate in the compression forum process; and whether to submit
orders for execution in a compression forum. The Exchange's provision
of the list does not constitute advice, guidance, a commitment to
trade, an execution, or a recommendation to trade.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\13\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \14\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \15\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ Id..
---------------------------------------------------------------------------

    In particular, the proposed rule change will 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 by adding a strategy for which the Exchange will make
positions available during compression forums will benefit investors,
which the Exchange believes will increase positions that market
participants may close during compression forums. The Exchange believes
the additional information that may be provided to TPHs in compression
forums may encourage TPHs to close additional positions via the
compression process. The Exchange believes this will enable TPHs to
more efficiently and effectively close positions comprising a common
multi-leg strategy in the SPX market via the compression forums, which,
in general, helps to protect investors and the public interest because
closing positions via the compression process serves to alleviate the
adverse impact of bank capital requirements. As noted above, the
information regarding combo positions is currently included in the
compression position lists the Exchange provides to TPHs, as two combos
create a box spread. The proposed rule change merely provides the
Exchange with the ability to list combo positions separately, as it
currently does for vertical call and put spreads (which also comprise
box spreads).

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change has
no impact on the trading process used in compression forums, but
rather, adds to the information the Exchange may provide to TPHs as
part of its efforts to facilitate market participants' reduction in
open interest. The Exchange does not believe the proposed rule change
will impose any burden on intramarket competition, as compression
forums will continue to be available to all market participants with
SPX open interest. The Exchange will make available a list of all
possible offsetting combos, which will be available to all TPHs that
submit compression-list positions (similar to all other information in
these lists). The Exchange does not believe the proposed rule change
will impose any burden on intermarket competition, as it will apply
only to SPX options, which are currently listed for trading only on the
Exchange. The proposed rule change is intended to permit market
participants to further reduce open SPX interest to free up additional
capital that will permit those parties to continue to provide liquidity
to the market, which the Exchange believes benefits the entire market.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
Because the 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, if

consistent with the protection of investors and the public interest,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \18\ and Rule 19b-4(f)(6) thereunder.\19\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b- 4(f)(6)(iii)
under the Act, the Exchange is required 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \20\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\21\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. As explained above, the
Exchange believes that the proposed rule change has no impact on the
trading process for compression forums. The Exchange believes that
providing the additional information proposed herein with respect to
combos, in addition to the other information the Exchange regularly
provides, may increase the ability of firms to find other firms with
offsetting positions and maximize the impact of the quarter-end
compression forum. Furthermore, the Exchange believes providing TPHs
with separate combo information, as it provides separate vertical
spread information, will provide TPHs with additional flexibility to
locate offsetting positions against which they may execute in
compression forums, which will permit them to further reduce open SPX
interest and free up additional capital, which benefits all investors
in the SPX market. Accordingly, the Exchange asserts that waiver of the
operative delay would permit the Exchange to provide TPHs with this
information in time for them to engage in compression transactions in
connection with the expected first quarter CTPH capital recalculation.
For these reasons, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\22\
---------------------------------------------------------------------------

    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
    \22\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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_ADDRESS>Please include
File Number SR-CBOE-2020-031 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-CBOE-2020-031. 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 offices 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-CBOE-2020-031, and should be submitted
on or before April 27, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07090 Filed 4-3-20; 8:45 am]
 BILLING CODE 8011-01-P


Comment Info: =================

General Comment:Dear Mr. Zeller:

I am writing as an individual consumer to request an extension of the comment period for the Food and Drug Administration's ("FDA") Proposed Rule Deeming Tobacco Products to be Subject to the Federal Food, Drug, and Cosmetic Act, as amended by the Family Smoking and Prevention and Tobacco Control Act (the "Proposed Rule") published at 79 Fed. Reg. 23,142 and Federal Register No. 2014-09491. On behalf of myself, I am requesting that the comment period for the Proposed Rule be extended by the FDA for an additional 105 days, from its current 75-day period, to 180 days.

The Proposed Rule raises a number of significant issues and questions that are important and relevant to me, as a consumer of products that are proposed for regulation under the Proposed Rule. The Proposed Rule asks about a hundred different questions I might want to respond to. I want to provide my thoughts and comments on many of these issues, but my time to devote to researching and providing thoughtful comments on these important questions is limited. I have already spent many hours researching and dissecting these issues, but they take time. I know that the FDA took many years to even come up with the Proposed Rule, so I do not think it is at all unreasonable to allow the public a mere six months to comment on it. This is our only opportunity, as consumers, to provide our feedback.

I feel very strongly about e-cigarettes as an alternative to combustible cigarettes, having tried numerous smoking cessation options and failing. Quite simply, I firmly believe that they saved my life, and could possibly save the lives of countless others. I wish to provide you with my personal story, as well as science- and evidence-based responses to your questions so that you can take my comment into account. I realize that the FDA has the authority under 21 CFR 10.40 to extend this time frame and that the FDA has exercised this authority on numerous occasions in the past. I would therefore ask that you do so here, so that all stakeholders have the opportunity to provide their comments on this proposed regulation.

I appreciate your consideration of my request and am happy to discuss this issue with you further.


[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Notices]
[Pages 71325-71327]
[FR Doc No: 2022-25344]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2022-0222; FRL-10288-01-OCSPP]

Cancellation Order for Certain Pesticide Registrations and
Amendments To Terminate Uses

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: This notice announces EPA's order for the cancellations and
amendments to terminate uses, voluntarily requested by the registrants
and accepted by the Agency, of certain product registrations, pursuant
to the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
This cancellation order follows an August 29, 2022, Federal Register
Notice of Receipt of Requests from the registrants listed in Table 3 of
Unit II, to voluntarily cancel and amend certain product registrations
to terminate uses of these product registrations. In the August 29,
2022, notice, EPA indicated that it would issue an order implementing
the cancellations and amendments to terminate uses, unless the Agency
received substantive comments within the 30-day comment period that
would merit its further review of these requests, or unless the
registrants withdrew their requests. The Agency did not receive any
comments on the notice. Further, the registrants did not withdraw their
requests. Accordingly, EPA hereby issues in this notice a cancellation
order granting the requested cancellations and amendments to terminate
uses. Any distribution, sale, or use of the products subject to this
cancellation order is permitted only in accordance with the terms of
this order, including any existing stocks provisions.

DATES: The cancellations and amendments are effective November 22,
2022.

FOR FURTHER INFORMATION CONTACT: Christopher Green, Registration
Division (7505T), Office of Pesticide Programs, Environmental
Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; email address:
[email protected].

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides. Since others also may be interested, the Agency
has not attempted to describe all the specific entities that may be
affected by this action.

B. How can I get copies of this document and other related information?

    The docket for this action, identified by docket identification
(ID) number EPA-HQ-OPP-2022-0222, is available at https://www.regulations.gov or at the Office of Pesticide Programs Regulatory
Public Docket (OPP Docket) in the Environmental Protection Agency
Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334,
1301 Constitution Ave. NW, Washington, DC 20460-0001. The Public
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Public
Reading Room is<PHONE_NUMBER>, and the telephone number for the OPP
Docket is<PHONE_NUMBER>. Please review the visitor instructions and
additional information about the docket available at https://www.epa.gov/dockets.

II. What action is the Agency taking?

    This notice announces the cancellations and amendments to terminate
uses, as requested by registrants, of products registered under FIFRA
section 3 (7 U.S.C. 136a). These registrations are listed in sequence
by registration number in Tables 1 and 2 of this unit.

                     Table 1--Product Cancellations
------------------------------------------------------------------------
                                                             Active
   Registration No.     Company No.     Product name       ingredients
------------------------------------------------------------------------
100-1238..............          100  Scimitar GR        Lambda-
                                      Insecticide.       Cyhalothrin.
100-1239..............          100  Lambda-CY 0.045%   Lambda-
                                      H&G Granule        Cyhalothrin.
                                      Insecticide.
100-1273..............          100  A14796             Lambda-
                                      Insecticide.       Cyhalothrin.
100-1274..............          100  A14797             Lambda-
                                      Insecticide.       Cyhalothrin.
100-1304..............          100  Thiamethoxam 0.20/ Lambda-
                                      Lambda-            Cyhalothrin &
                                      Cyhalothrin 0.04   Thiamethoxam.
                                      L&G GR.
100-1334..............          100  Thiamethoxam 0.40/ Lambda-
                                      Lambda-            Cyhalothrin &
                                      cyhalothrin 0.16   Thiamethoxam.
                                      ME Concentrate.
100-1336..............          100  Thiamethoxam       Lambda-
                                      0.010/Lambda-      Cyhalothrin &
                                      cyhalothrin        Thiamethoxam.
                                      0.004 ME RTU.
228-649...............          228  NuFarm Two Ox Pro  Oxadiazon &
                                      Herbicide.         Oxyfluorfen.
1381-180..............         1381  Pro Source #1      Oxadiazon.
                                      Magic Carpet
                                      Fertilizer with
                                      0.67% Ronstar.
1381-181..............         1381  Pro Source Magic   Oxadiazon.
                                      Carpet
                                      Fertilizer with
                                      1.00% Ronstar.
2693-195..............         2693  VC17M with Biolux  Copper as
                                      Copper Powder      elemental.
                                      V901.

2693-196..............         2693  VC17M with Biolux  Copper as
                                      Copper Powder      elemental.
                                      V900.
6836-124..............         6836  Glybrom RW-97.5..  2,4-
                                                         Imidazolidinedi
                                                         one, 1-bromo-3-
                                                         chloro-5,5-
                                                         dimethyl- & 1,3-
                                                         Dibromo-5,5-
                                                         dimethylhydanto
                                                         in.
6836-329..............         6836  Lonzabac 12        1,3-
                                      Preservative.      Propanediamine,
                                                         N-(3-
                                                         aminopropyl)-N-
                                                         dodecyl-.
9150-11...............         9150  Cryocide 20......  Chlorine dioxide
                                                         & 1-
                                                         Decanaminium, N-
                                                         decyl-N,N-
                                                         dimethyl-,
                                                         chloride.
9150-15...............         9150  Anthium            1-Decanaminium,
                                      Pesticidal         N-decyl-N,N-
                                      Disinfecting       dimethyl-,
                                      Spray.             chloride &
                                                         Chlorine
                                                         dioxide
10324-99..............        10324  Maquat 10-PD.....  Alkyl* dimethyl
                                                         benzyl ammonium
                                                         chloride
                                                         *(60%C14,
                                                         30%C16, 5%C18,
                                                         5%C12) & Alkyl*
                                                         dimethyl
                                                         ethylbenzyl
                                                         ammonium
                                                         chloride
                                                         *(68%C12,
                                                         32%C14).
10324-142.............        10324  Maquat MQ2525M-14  Alkyl* dimethyl
                                                         ethylbenzyl
                                                         ammonium
                                                         chloride
                                                         *(68%C12,
                                                         32%C14) &
                                                         Alkyl* dimethyl
                                                         benzyl ammonium
                                                         chloride
                                                         *(60%C14,
                                                         30%C16, 5%C18,
                                                         5%C12).
52287-11..............        52287  Fertilizer with    Trifluralin;
                                      Starteem(R) #2.    Benfluralin &
                                                         Oxadiazon.
59682-5...............        59682  Fast Attack......  Nonylphenoxypoly
                                                         ethoxyethanol--
                                                         iodine complex.
67799-3...............        67799  Sea Fresh 150....  Sulfur dioxide.
70506-33..............        70506  Devrinol 2-G       Napropamide.
                                      Ornamental
                                      Selective
                                      Herbicide.
70506-37..............        70506  Devrinol 3.75 SC   Napropamide.
                                      Landscape and
                                      Nursery
                                      Selective
                                      Herbicide
                                      (Active);
                                      Devrinol 4-F
                                      Ornamental
                                      Selective
                                      Herbicide
                                      (Alternate).
70506-38..............        70506  Devrinol 50-DF     Napropamide.
                                      Ornamental
                                      Selective
                                      Herbicide.
70506-39..............        70506  Devrinol Lawn and  Napropamide.
                                      Ornamental
                                      Selective
                                      Herbicide.
70506-63..............        70506  Devrinol 2-EC      Napropamide.
                                      Ornamental
                                      Selective
                                      Herbicide.
70506-263.............        70506  Doubledown.......  Oxadiazon &
                                                         Oxyfluorfen.
70506-373.............        70506  Dupont Londax G    Bensulfuron-
                                      Herbicide.         methyl.
87373-41..............        87373  A364.02..........  Paraquat
                                                         dichloride.
87373-112.............        87373  Paraquat           Paraquat
                                      Technical.         dichloride.
91234-87..............        91234  A364.01..........  Paraquat
                                                         dichloride.
IN-110004.............        62719  Instinct.........  Nitrapyrin.
IN-130001.............        10163  Malathion 8......  Malathion (NO
                                                         INERT USE).
IN-130002.............        10163  Malathion 8......  Malathion (NO
                                                         INERT USE).
KS-170001.............          100  Dual Magnum        S-Metolachlor.
                                      Herbicide.
NJ-990006.............        62719  Confirm 2F         Tebufenozide.
                                      Agricultural
                                      Insecticide.
OK-990002.............        62719  Confirm 2F         Tebufenozide.
                                      Agricultural
                                      Insecticide.
OR-110018.............        59639  Valor Herbicide..  Flumioxazin.
VA-980006.............        62719  RH-5992 2F         Tebufenozide.
                                      Experimental
                                      Insecticide.
WA-110011.............        62719  Opensight........  Metsulfuron &
                                                         Aminopyralid-
                                                         potassium.
WA-140004.............        62719  Entrust SC.......  Spinosad.
WA-140005.............        81880  GWN-1715.........  Pyridaben.
WA-170001.............        81880  Nexter SC          Pyridaben.
                                      Miticide/
                                      Insecticide.
------------------------------------------------------------------------

                           Table 2--Product Registration Amendments To Terminate Uses
----------------------------------------------------------------------------------------------------------------
      Registration No.       Company No.       Product name          Active ingredient     Uses to be terminated
----------------------------------------------------------------------------------------------------------------
45728-21...................        45728  Thiram Granuflo         Thiram................  Turf and golf.
                                           Agricultural
                                           Fungicide.
45728-26...................        45728  Thiram SC.............  Thiram................  Turf and golf.
85678-67...................        85678  Bifenthrin 2E.........  Bifenthrin............  Crop use for
                                                                                Nurseries.
94730-3....................        94730  Bifenthrin Technical..  Bifenthrin............  Indoor Residential.
----------------------------------------------------------------------------------------------------------------

    Table 3 of this unit includes the names and addresses of record for
all registrants of the products in Tables 1 and 2 of this unit, in
sequence by EPA company number. This number corresponds to the first
part of the EPA registration numbers of the products listed above.

         Table 3--Registrants of Cancelled and Amended Products
------------------------------------------------------------------------
        EPA company No.                 Company name and address
------------------------------------------------------------------------
100...........................  Syngenta Crop Protection, LLC, 410 Swing
                                 Road, P.O. Box 18300, Greensboro, NC
                                 27419-8300.
228...........................  NuFarm Americas, Inc., 4020 Aerial
                                 Center Pkwy., Ste. 101, Morrisville, NC
                                 27560.
1381..........................  Winfield Solutions, LLC, P.O. Box 64589,
                                 St. Paul, MN 55164-0589.
2693..........................  International Paint, LLC, 6001 Antoine
                                 Drive, Houston, TX 77091.
6836..........................  Arxada, LLC, 412 Mount Kemble Avenue,
                                 Suite 200S, Morristown, NJ 07960.

9150..........................  International Dioxcide, Inc., 40
                                 Whitecap Drive, North Kingstown, RI
                                 02852.
10163.........................  Gowan Company, LLC, 370 S Main St.,
                                 Yuma, AZ 85366.
10324.........................  Mason Chemical Company, 9075 Centre
                                 Pointe Dr., Suite 400, West Chester, OH
                                 45069.
45728.........................  Taminco US, LLC, A Subsidiary of Eastman
                                 Chemical Company, c/o John Hott-B280,
                                 200 S Wilcox Dr., Kingsport, TN
                                 376605147.
52287.........................  Harrell's, LLC, P.O. Box 807, Lakeland,
                                 FL 33802.
59639.........................  Valent U.S.A. LLC, 4600 Norris Canyon
                                 Road, P.O. Box 5075, San Ramon, CA
                                 94583.
59682.........................  Controlled Release Technologies, Inc.,
                                 1016 Industry Drive, Shelby, NC 28152.
62719.........................  Corteva Agriscience, LLC, 9330
                                 Zionsville Road, Indianapolis, IN
                                 46268.
67799.........................  Seaco Technologies, Inc., P.O. Box
                                 80205, Bakersfield, CA 93380.
70506.........................  UPL NA, Inc., 630 Freedom Business
                                 Center, Suite 402, King of Prussia, PA
                                 19406.
81880.........................  Canyon Group, LLC, c/o Gowan Company,
                                 370 S Main Street, Yuma, AZ 85364.
85678.........................  RedEagle International, LLC, Agent Name:
                                 Wagner Regulatory Associates, Inc.,
                                 7217 Lancaster Pike, Suite A, P.O. Box
                                 640, Hockessin, DE 19707.
87373.........................  Argite, LLC, Agent Name: Pyxis
                                 Regulatory Consulting, Inc., 4110 136th
                                 Street Ct. NW, Gig Harbor, WA 98332.
91234.........................  Atticus, LLC, Agent Name: Pyxis
                                 Regulatory Consulting, Inc., 4110 136th
                                 Street Ct. NW, Gig Harbor, WA 98332-
                                 9122.
94730.........................  Generic Crop Science, LLC, Agent Name:
                                 Wagner Regulatory Associates, Inc.,
                                 7217 Lancaster Pike, Ste. A, P.O. Box
                                 640 Hockessin, DE 19707.
------------------------------------------------------------------------

III. Summary of Public Comments Received and Agency Response to
Comments

    During the public comment period provided, EPA received no comments
in response to the August 29, 2022, Federal Register notice announcing
the Agency's receipt of the requests for voluntary cancellations and
amendments to terminate uses of products listed in Tables 1 and 2 of
Unit II.

IV. Cancellation Order

    Pursuant to FIFRA section 6(f) (7 U.S.C. 136d(f)(1)), EPA hereby
approves the requested cancellations and amendments to terminate uses
of product registrations identified in Tables 1 and 2 of Unit II.
Accordingly, the Agency hereby orders that the product registrations
identified in Tables 1 and 2 of Unit II, are canceled and amended to
terminate the affected uses. The effective date of the cancellations
that are subject of this notice is November 22, 2022. Any distribution,
sale, or use of existing stocks of the products identified in Tables 1
and 2 of Unit II, in a manner inconsistent with any of the provisions
for disposition of existing stocks set forth in Unit VI, will be a
violation of FIFRA.

V. What is the Agency's authority for taking this action?

    Section 6(f)(1) of FIFRA (7 U.S.C. 136d(f)(1)) provides that a
registrant of a pesticide product may at any time request that any of
its pesticide registrations be canceled or amended to terminate one or
more uses. FIFRA further provides that, before acting on the request,
EPA must publish a notice of receipt of any such request in the Federal
Register. Thereafter, following the public comment period, the EPA
Administrator may approve such a request. The notice of receipt for
this action was published for comment in the Federal Register of August
29, 2022 (87 FR 52773) (FRL-9997-01-OCSPP). The comment period closed
on September 28, 2022.

VI. Provisions for Disposition of Existing Stocks

    Existing stocks are those stocks of registered pesticide products
which are currently in the United States, and which were packaged,
labeled, and released for shipment prior to the effective date of the
action. The existing stocks provision for the products subject to this
order is as follows.
    For 10324-142, listed in Table 1 of Unit II, the registrant has
requested an 18-month sell-through period. The registrant may continue
to sell and distribute existing stocks of 10324-142 until May 22, 2024,
a period of 18 months after publication of the cancellation order in
this Federal Register, unless other restrictions have been imposed.
Thereafter, the registrant will be prohibited from selling or
distributing the product.
    For all other voluntary cancellations listed in Table 1 of Unit II,
the registrants may continue to sell and distribute existing stocks of
the products listed in Table 1 of Unit II, until November 22, 2023,
which is 1 year after publication of this cancellation order in the
Federal Register. Thereafter, the registrants are prohibited from
selling or distributing all other products listed in Table 1 of Unit
II, except for export in accordance with FIFRA section 17 (7 U.S.C.
136o) or for proper disposal.
    Now that EPA has approved product labels reflecting the requested
amendments to terminate uses listed in Table 2 of Unit II, registrants
are permitted to sell or distribute products listed in Table 2 of Unit
II, under the previously approved labeling until May 22, 2024, a period
of 18 months after publication of the cancellation order in this
Federal Register, unless other restrictions have been imposed.
Thereafter, registrants will be prohibited from selling or distributing
the products whose labels include the terminated uses identified in
Table 2 of Unit II, except for export consistent with FIFRA section 17
or for proper disposal.
    Persons other than the registrant may sell, distribute, or use
existing stocks of canceled products and products whose labels include
the terminated uses, until supplies are exhausted, provided that such
sale, distribution, or use is consistent with the terms of the
previously approved labeling on, or that accompanied, the canceled
products and terminated uses.
    Authority: 7 U.S.C. 136 et seq.

    Dated: November 15, 2022.
Daniel Rosenblatt,
Acting Director, Registration Division, Office of Pesticide Programs.
[FR Doc. 2022-25344 Filed 11-21-22; 8:45 am]
BILLING CODE 6560-50-P