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

General Comment:Dear Mr. Zeller:

The first thing I'd like you good folks to know is that I, as well as hundreds of family and friends, have successfully transitioned off of cigarettes and on to the significantly safer electronic variety.  My doctor is amazed at how all of my health indicators have steadily improved and I feel amazing.  Please sir, be very deliberate an cautious about over-regulating.  Personal vaporizers represent an incredible opportunity for this country to get off deadly cigarettes.  I am proof that it works.  I tried everything and this method was incredibly easy and effective.  The long term costs of cigarettes are staggering.  They make ALL of their users, sick, and are known to kill.  Again, over-regulation of an incredibly effective method to quit would slow, if not kill this rare opportunity.  Not to mention place unnecessary burdens and business killing costs on small business that produce these products.

Please sir, listen to the public.  Please sir, restore my faith that government can do something good.  Please sir, don't hand the big tobacco lobby another victory.  Let the people win this one.  I beg of you.

All that being said:

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. Quite simply, I firmly believe that they saved my life. 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.

Steven Sapir
781-724-0288
16 Tall Timbers Lane
Kingston MA  02364


[Federal Register Volume 85, Number 64 (Thursday, April 2, 2020)]
[Notices]
[Page 18583]
[FR Doc No: 2020-06833]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4451-DR; Docket ID FEMA-2020-0001]

Missouri; Amendment No. 6 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Missouri (FEMA-4451-DR), dated July 9, 2019, and
related determinations.

DATES: This change occurred on February 21, 2020.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) hereby gives notice that pursuant to the authority vested in the
Administrator, under Executive Order 12148, as amended, John Brogan, of
FEMA is appointed to act as the Federal Coordinating Officer for this
disaster.
    This action terminates the appointment of Jon K. Huss as Federal
Coordinating Officer for this disaster.

(The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households In
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.)

Pete Gaynor,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2020-06833 Filed 4-1-20; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 630-633]
[FR Doc No: 2020-29283]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90835; File No. SR-NYSEArca-2020-84]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change, as Modified by Amendment No. 1, To Amend NYSE Arca Rule
8.900-E To Adopt Generic Listing Standards for Managed Portfolio Shares

December 31, 2020.

I. Introduction

    On September 22, 2020, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend NYSE Arca Rule 8.900-E
to adopt generic listing standards for Managed Portfolio Shares. On
October 2, 2020, the Exchange filed Amendment No. 1 to the proposed
rule change. The proposed rule change, as modified by Amendment No. 1,
was published for comment in the Federal Register on October 13,
2020.\3\ On November 13, 2020, pursuant to Section 19(b)(2) of the
Act,\4\ the Commission designated a longer period within which to
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\5\ The Commission has received no comments on the
proposed rule change. The Commission is publishing this order to
solicit comments on the proposed rule change from interested persons
and to institute proceedings pursuant to Section 19(b)(2)(B) of the Act
\6\ to determine whether to approve or disapprove the proposed rule
change, as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 90104 (October 7,
2020), 85 FR 64598 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 90418, 85 FR 73812
(November 19, 2020). The Commission designated January 11, 2021, as
the date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
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II. Description of the Proposed Rule Change

    The Exchange adopted listing standards for Managed Portfolio Shares
as set forth in NYSE Arca Rule 8.900-E.\7\ A Managed Portfolio Share is
a security that (a) represents an interest in an investment company
(``Investment Company''), registered under the Investment Company Act
of 1940 (``1940 Act'') organized as an open-end management investment
company, that invests in a portfolio of securities selected by the
Investment Company's investment adviser consistent with the Investment
Company's investment objectives and policies; (b) is issued in a
Creation Unit,\8\ or multiples thereof, in return for a designated
portfolio of instruments (and/or an amount of cash) with a value equal
to the next determined net asset value and delivered to the Authorized
Participant (as defined in the Investment Company's Form N-1A filed
with the Commission) through a Confidential Account; \9\ (c) when
aggregated into a Redemption Unit,\10\ or multiples thereof, may be
redeemed for a designated portfolio of instruments (and/or an amount of
cash) with a value equal to the next determined net asset value
delivered to the Confidential Account for the benefit of the Authorized
Participant; and (d) the portfolio holdings for which are disclosed
within at least 60 days following the end of every fiscal

quarter.\11\ Further, each series of Managed Portfolio Shares widely
disseminates a Verified Intraday Indicative Value or ``VIIV'' \12\ in
one second intervals during the Core Trading Session.\13\
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    \7\ See Securities Exchange Act Release No. 88648 (April 15,
2020), 85 FR 22200 (April 21, 2020) (SR-NYSEArca-2020-32) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Adopt
a New NYSE Arca Rule 8.900-E).
    \8\ NYSE Arca Rule 8.900-E(c)(6) defines the term ``Creation
Unit'' as a specified minimum number of Managed Portfolio Shares
issued by an Investment Company at the request of an Authorized
Participant in return for a designated portfolio of instruments and/
or cash.
    \9\ NYSE Arca Rule 8.900-E(c)(4) defines the term ``Confidential
Account'' as ``an account owned by an Authorized Participant and
held with an AP Representative on behalf of the Authorized
Participant. The account will be established and governed by
contractual agreement between the AP Representative and the
Authorized Participant solely for the purposes of creation and
redemption, while keeping confidential the Creation Basket
constituents of each series of Managed Portfolio Shares, including
from the Authorized Participant. The books and records of the
Confidential Account will be maintained by the AP Representative on
behalf of the Authorized Participant.'' NYSE Arca Rule 8.900-E(c)(3)
defines the term ``AP Representative'' as ``an unaffiliated broker-
dealer, with which an Authorized Participant has signed an agreement
to establish a Confidential Account for the benefit of such
Authorized Participant, that will deliver or receive, on behalf of
the Authorized Participant, all consideration to or from the
Investment Company in a creation or redemption. An AP Representative
will not be permitted to disclose the Creation Basket to any person,
including the Authorized Participants.''
    \10\ NYSE Arca Rule 8.900-E(c)(7) defines the term ``Redemption
Unit'' as a specified minimum number of Managed Portfolio Shares
that may be redeemed to an Investment Company at the request of an
Authorized Participant in return for a portfolio of instruments and/
or cash.
    \11\ See NYSE Arca Rule 8.900-E(c)(1).
    \12\ NYSE Arca Rule 8.900-E(c)(2) defines the term ``Verified
Intraday Indicative Value'' (``VIIV'') as the indicative value of a
Managed Portfolio Share based on all of the holdings of a series of
Managed Portfolio Shares as of the close of business on the prior
business day and, for corporate actions, based on the applicable
holdings as of the opening of business on the current business day,
priced and disseminated in one second intervals during the Core
Trading Session by the Reporting Authority.
    \13\ NYSE Arca Rule 8.900-E(d)(2)(A) requires for continued
listing that the VIIV for a series of Managed Portfolio Shares be
widely disseminated by the Reporting Authority and/or by one or more
major market data vendors in one second intervals during the Core
Trading Session, and be disseminated to all market participants at
the same time.
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    NYSE Arca Rule 8.900-E(b)(1) currently requires that the Exchange
submit a proposed rule change with the Commission to list and trade
each new series of Managed Portfolio Shares.\14\ The Exchange proposes
to amend NYSE Arca Rule 8.900-E to adopt ``generic'' listing standards
that would allow the Exchange to approve the listing and trading
(including pursuant to unlisted trading privileges) of series of
Managed Portfolio Shares that satisfy those generic listing standards
pursuant to Rule 19b-4(e) under the Act.\15\
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    \14\ The Exchange notes that the Commission has approved listing
and trading of series of Managed Portfolio Shares on the Exchange
under NYSE Arca Rule 8.900-E and on another national securities
exchange under substantially equivalent listing rules. See
Securities Exchange Act Release Nos. 89633 (August 25, 2020), 85 FR
53868 (August 31, 2020) (SR-NYSEArca-2020-48) (Order Approving a
Proposed Rule Change, as Modified by Amendment No. 1, to List and
Trade Shares of Gabelli ETFs under Rule 8.900-E) (``Gabelli Approval
Order''); 88247 (February 20, 2020), 85 FR 11137 (February 26, 2020)
(SR-CboeBZX-2019-102) (Notice of Filing of Amendment No. 3 and Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified
by Amendment No. 3 Thereto, to List and Trade Shares of the
ClearBridge Focus Value ETF under BZX Rule 14.11(k)) (``ClearBridge
Approval Order''); 88175 (February 12, 2020), 85 FR 9494 (February
19, 2020) (SR-CboeBZX-2019-057) (Notice of Filing of Amendment No. 2
and Order Granting Accelerated Approval of a Proposed Rule Change,
as Modified by Amendment No. 2 Thereto, to List and Trade Shares of
the American Century Focused Dynamic Growth ETF and American Century
Focused Large Cap Value ETF under BZX Rule 14.11(k)) (``American
Century Approval Order'' and, together with the Gabelli Approval
Order and the ClearBridge Approval Order, ``Approval Orders'').
    \15\ 17 CFR 240.19b-4(e). Rule 19b-4(e)(1) under the Act
provides that the listing and trading of a new derivative securities
product by a self-regulatory organization (``SRO'') is not deemed a
proposed rule change, pursuant to paragraph (c)(1) of Rule 19b-4, if
the Commission has approved, pursuant to Section 19(b) of the Act,
the SRO's trading rules, procedures and listing standards for the
product class that would include the new derivative securities
product and the SRO has a surveillance program for the product
class. See 17 CFR 240.19b-4(e)(1). Under Rule 19b-4(e), the term
``new derivative securities product'' means any type of option,
warrant, hybrid securities product or any other security, other than
a single equity option or a security futures product, whose value is
based, in whole or in part, upon the performance of, or interest in,
an underlying instrument. See 17 CFR 240.19b-4(e). Under Rule 19b-
4(c)(1), a stated policy, practice, or interpretation of the SRO
shall be deemed to be a proposed rule change unless it is reasonably
and fairly implied by an existing rule of the SRO. 17 CFR 240.19b-
4(c)(1). 17 CFR 240.19b-4(c)(1).
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A. Proposed Amendments to Rule 8.900-E

    The Exchange proposes to amend Rule 8.900-E(b)(1) to state that the
Exchange may approve Managed Portfolio Shares for listing and/or
trading (including pursuant to unlisted trading privileges) pursuant to
Rule 19b-4(e) under the Act. The Exchange would also specify within
proposed Rule 8.900-E(b)(1) that components of a series of Managed
Portfolio Shares listed pursuant to Rule 19b-4(e) shall satisfy the
criteria set forth in Rule 8.900-E and Commentary .01 thereto upon
initial listing and on a continual basis. In addition, the Exchange
would specify that it will file separate proposals under Section 19(b)
of the Act before the listing and trading of a series of Managed
Portfolio Shares with components that do not satisfy the criteria set
forth in proposed Commentary .01 or components other than those
specified in proposed Commentary .01.\16\
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    \16\ For example, according to the Exchange, if the components
of a series of Managed Portfolio Shares included a security or asset
that is not specified in proposed Commentary .01, the Exchange would
file a separate proposed rule change with the Commission to list the
series of Managed Portfolio Shares.
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    Proposed Commentary .01(a) to Rule 8.900-E would provide that the
portfolio holdings for a series of Managed Portfolio Shares shall
include only the following components:
    (1) U.S. exchange-traded securities that are common stocks;
preferred stocks; American Depositary Receipts; and real estate
investment trusts;
    (2) U.S. exchange-traded funds that are listed under the following
NYSE Arca rules: Investment Company Units (Rule 5.2-E(j)(3)); Exchange-
Traded Fund Shares (Rule 5.2-E(j)(8)); Portfolio Depositary Receipts
(Rule 8.100-E); Managed Fund Shares (Rule 8.600-E); Active Proxy
Portfolio Shares (Rule 8.601-E); and Managed Portfolio Shares (Rule
8.900-E);
    (3) Equity Gold Shares (listed under NYSE Arca Rule 5.2-E(j)(5))
    (4) Index-Linked Securities (listed under NYSE Arca Rule 5.2-
E(j)(6));
    (5) Commodity-Based Trust Shares (listed under NYSE Arca Rule
8.201-E);
    (6) Currency Trust Shares (listed under NYSE Arca Rule 8.202-E);
    (7) The following securities, which are required to be organized as
commodity pools: Commodity Index Trust Shares (listed under NYSE Arca
Rule 8.203-E); Commodity Futures Trust Shares (listed under NYSE Arca
Rule 8.204-E); Trust Units (listed under NYSE Arca Rule 8.500-E); and
Managed Trust Securities (listed under NYSE Arca Rule 8.700-E);
    (8) The following securities if organized as commodity pools: Trust
Issued Receipts (listed under NYSE Arca Rule 8.200-E) and Partnership
Units (listed under NYSE Arca Rule 8.300-E);
    (9) U.S. exchange-traded futures that trade contemporaneously with
shares of a series of Managed Portfolio Shares in the Exchange's Core
Trading Session; and
    (10) Cash and cash equivalents, which cash equivalents would be
limited to short-term U.S. Treasury securities, government money market
funds, and repurchase agreements.
    Proposed Commentary .01(b) to Rule 8.900-E would provide that a
series of Managed Portfolio Shares will not hold short positions in
securities and other financial instruments referenced in the list of
permitted investments in proposed Commentary .01(a). Proposed
Commentary .01(c) would provide that the securities referenced in
proposed Commentary .01(a)(2)-(8) would also include securities listed
on another national securities exchange pursuant to substantially
equivalent listing rules.
    The Exchange states that the securities and financial instruments
enumerated in proposed Commentary .01(a) to Rule 8.900-E are consistent
with, and limited to, the ``permissible investments'' for series of
Managed Portfolio Shares previously approved by the Commission for
Exchange listing and trading, as described in the Approval Orders \17\
and as permitted by their respective exemptive relief under the 1940
Act.
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    \17\ See supra note 14.
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    The Exchange also states that the regulatory staff of the Exchange,
or the Financial Industry Regulatory Authority, Inc. (``FINRA''), on
behalf of the Exchange, will communicate as needed regarding trading in
Managed Portfolio Shares, other exchange-traded equity securities and
futures contracts with other markets that are members of the
Intermarket Surveillance Group (``ISG''), including U.S. exchanges on
which the components are traded. In addition, the Exchange may obtain
information regarding trading in

Managed Portfolio Shares from other markets that are members of the
ISG, including all U.S. securities exchanges and futures exchanges on
which the equity securities and futures contracts are traded. The
Exchange represents that its surveillance procedures are adequate to
continue to properly monitor the trading of Managed Portfolio Shares in
all trading sessions and to deter and detect violations of Exchange
rules. Specifically, the Exchange intends to utilize its existing
surveillance procedures applicable to derivative products, which will
include Managed Portfolio Shares, to monitor trading in the Managed
Portfolio Shares.
    The Exchange states that the Managed Portfolio Shares will conform
to the initial and continued listing criteria under Rule 8.900-E. All
Managed Portfolio Shares listed and/or traded pursuant to Rule 8.900-E
(including pursuant to unlisted trading privileges) are subject to all
Exchange rules and procedures that currently govern the trading of
equity securities on the Exchange. The issuer of a series of Managed
Portfolio Shares will be required to comply with Rule 10A-3 under the
Act for the initial and continued listing of Managed Portfolio Shares,
as provided under NYSE Arca Rule 5.3-E.
    Further, according to the Exchange, prior to listing pursuant to
proposed amended Rule 8.900-E and proposed Commentary .01 thereto, an
issuer would be required to represent to the Exchange that it will
advise the Exchange of any failure by a series of Managed Portfolio
Shares to comply with the continued listing requirements, and, pursuant
to its obligations under Section 19(g)(1) of the Act, the Exchange will
monitor for compliance with the continued listing requirements. If a
series of Managed Portfolio Shares is not in compliance with the
applicable listing requirements, the Exchange will commence delisting
procedures under NYSE Arca Rule 5.5-E(m).

III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEArca-2020-84, as Modified by Amendment No. 1, and Grounds for
Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \18\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide
additional comment on the proposed rule change to inform the
Commission's analysis of whether to approve or disapprove the proposed
rule change.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\19\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, which requires, among other things, that the rules of a
national securities 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 to protect
investors and the public interest, and not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.\20\
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    \19\ Id.
    \20\ 15 U.S.C. 78f(b)(5).
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    The Exchange proposes to adopt generic listing standards for
Managed Portfolio Shares, which would allow the Exchange to list and
trade Managed Portfolio Shares that meet the requirements of NYSE Arca
Rule 8.900-E and Commentary .01 without filing a proposed rule change
with the Commission. As noted above, however, the Exchange only
recently adopted Rule 8.900-E to permit the listing and trading of
Managed Portfolio Shares on the Exchange.\21\ Further, the Exchange
states that only three series of Managed Portfolio Shares are currently
listed and traded on BZX and does not indicate whether any series are
currently listed and traded on the Exchange.\22\ Accordingly, the
Commission and the Exchange, as well as the marketplace, more
generally, have limited experience with respect to this type of new
derivative securities product.\23\ In the past, a new derivative
securities product typically had a significant history of being listed
and traded on an exchange before the Commission approved its generic
listing standards. For example, the Commission approved the Exchange's
listing standards for Managed Fund Shares in 2008, but did not approve
the generic listing standards for the same until 2016.\24\ Given the
relatively short amount of time the Commission has had to oversee and
observe Managed Portfolio Shares and other similarly structured
exchange traded products, the Commission is concerned that there is
insufficient experience to determine that the proposal to permit
generic listing and trading of Managed Portfolio Shares is consistent
with Section 6(b)(5) of the Act, including whether the proposal is
designed to prevent fraudulent and manipulative acts and practices and
to protect investors and the public interest.
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    \21\ See supra note 7 and accompanying text. The Commission
notes that it also recently approved a substantively similar rule
for the listing and trading of Managed Portfolio Shares on Cboe BZX
Exchange, Inc. (``BZX''). See Securities Exchange Act Release No.
87759 (December 16, 2019), 84 FR 70223 (December 20, 2019) (Notice
of Filing of Amendment Nos. 4 and 5, and Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified by Amendment Nos. 4
and 5, to Adopt BZX Rule 14.11(k) to Permit the Listing and Trading
of Managed Portfolio Shares).
    \22\ See Notice, supra note 3, at 64600. See also Approval
Orders, supra note 14. The Commission notes that, since the initial
filing of the Exchange's proposal, additional Managed Portfolio
Shares have been approved, or filed pursuant to (b)(3)(A) under
Section 19 of the Exchange Act, for listing on a national securities
exchange. See Securities Exchange Act Release Nos. 90528 (November
30, 2020), 85 FR 78389 (December 4, 2020) (Order Approving a
Proposed Rule Change, as Modified by Amendment No. 2, to List and
Trade Shares of Alger Mid Cap 40 ETF and Alger 25 ETF Under Rule
8.900-E); 90683 (December 16, 2020), 85 FR 83665 (December 22, 2020)
(Order Approving a Proposed Rule Change, as Modified by Amendments
No. 1 and No. 2, to List and Trade Shares of the AdvisorShares Q
Portfolio Blended Allocation ETF and AdvisorShares Q Dynamic Growth
ETF Under NYSE Arca Rule 8.900-E).
    \23\ See supra note 15.
    \24\ See Securities Exchange Act Release No. 78397 (July 22,
2016), 81 FR 49320 (July 27, 2016 (SR-NYSEArca-2015-110) (Order
Granting Approval of Proposed Rule Change, as Modified by Amendment
No. 7 Thereto, Amending NYSE Arca Equities Rule 8.600 to Adopt
Generic Listing Standards for Managed Fund Shares) and Securities
Exchange Act Release No. 57619 (April 4, 2008), 73 FR 19544 (April
10, 2008) (Notice of Filing of Amendment No. 1 to Proposed Rule
Change and Order Granting Accelerated Approval of Such Proposed Rule
Change, as Modified by Amendment No. 1 Thereto, Relating to Rules
Permitting the Listing and Trading of Managed Fund Shares, Trading
Hours and Halts, Listing Fees Applicable to Managed Fund Shares, and
the Listing and Trading of Shares of the PowerShares Active AlphaQ
Fund, PowerShares Active Alpha Multi-Cap Fund, PowerShares Active
Mega-Cap Portfolio, and the PowerShares Active Low Duration
Portfolio).
---------------------------------------------------------------------------

    Under the Commission's Rules of Practice, the ``burden to
demonstrate that a proposed rule change is consistent with the Exchange
Act and the rules and regulations issued thereunder . . . is on the
[SRO] that proposed the rule change.'' \25\ The

description of a proposed rule change, its purpose and operation, its
effect, and a legal analysis of its consistency with applicable
requirements must all be sufficiently detailed and specific to support
an affirmative Commission finding,\26\ and any failure of an SRO to
provide this information may result in the Commission not having a
sufficient basis to make an affirmative finding that a proposed rule
change is consistent with the Act and the applicable rules and
regulations.\27\ The Commission notes that the Exchange has provided no
data or analysis to support the determination that, in the absence of
significant market or regulatory experience, its proposal to permit the
listing and trading of Managed Portfolio Shares pursuant to a generic
listing standards raises no new or novel concerns.
---------------------------------------------------------------------------

    \25\ 17 CFR 201.700(b)(3).
    \26\ See id.
    \27\ See id.
---------------------------------------------------------------------------

    Accordingly, the Commission is instituting proceedings to allow for
additional consideration and comment on the issues raised herein,
including whether the proposal is consistent with the Act.

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) \28\ of the Act or any other provision
of the Act, or the rules and regulations thereunder. Although there do
not appear to be any issues relevant to approval or disapproval that
would be facilitated by an oral presentation of views, data, and
arguments, the Commission will consider, pursuant to Rule 19b-4 under
the Act,\29\ any request for an opportunity to make an oral
presentation.\30\
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    \28\ 15 U.S.C. 78f(b)(5).
    \29\ 17 CFR 240.19b-4.
    \30\ Section 19(b)(2) of the Act, as amended by the Securities
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by January 27, 2021. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
February 10, 2021. The Commission asks that commenters address the
sufficiency of the Exchange's statements in support of the proposal,
which are set forth in the Notice,\31\ in addition to any other
comments they may wish to submit about the proposed rule change.
Comments may be submitted by any of the following methods:
---------------------------------------------------------------------------

    \31\ See Notice, supra note 3.
---------------------------------------------------------------------------

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-2020-84 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-2020-84. 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-NYSEArca-2020-84 and should be submitted
by January 27, 2021. Rebuttal comments should be submitted by February
10, 2021.
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-29283 Filed 1-5-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 206 (Thursday, October 26, 2017)]
[Notices]
[Page 49607]
[FR Doc No: 2017-23289]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL18-15-000]

Kanstar Transmission, LLC; Notice of Institution of Section 206
Proceeding and Refund Effective Date

    On October 19, 2017, the Commission issued an order in Docket No.
EL18-15-000, pursuant to section 206 of the Federal Power Act (FPA), 16
U.S.C. 824e (2012), instituting an investigation into whether the
formula rate protocols of Kanstar Transmission, LLC may be unjust,
unreasonable, unduly discriminatory or preferential. Kanstar
Transmission, LLC, 161 FERC 61,052 (2017).
    The refund effective date in Docket No. EL18-15-000, established
pursuant to section 206(b) of the FPA, will be the date of publication
of this notice in the Federal Register.
    Any interested person desiring to be heard in Docket No. EL18-15-
000 must file a notice of intervention or motion to intervene, as
appropriate, with the Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426, in accordance with Rule 214 of the
Commission's Rules of Practice and Procedure, 18 CFR 385.214, within 21
days of the date of issuance of the order.

    Dated: October 19, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-23289 Filed 10-25-17; 8:45 am]
 BILLING CODE 6717-01-P


			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 10, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2004-17626

________________________________________________________________________
________________________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant:  VOLGA-DNEPR J.S. CARGO AIRLINE
        Date Filed:  April 26, 2004

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate, on behalf of Lockheed Martin, one, one-way
cargo charter flight from Denver, Colorado, to Cape Canaveral Kennedy
Space Center, Florida, on or about May 16-20, 2004, using its AN-124-100
aircraft.  Volga-Dnepr plans to carry on this flight Lockheed Martin
Space Systems Atlas and Centaur launch vehicles.  The applicant stated
that Lockheed Martin urgently needs lift to meet tight integration and
launch schedules, that the cargo is too large for transportation on
U.S.-carrier aircraft; and that surface transportation is not feasible
because of the large size, delicate nature and high value of the cargo,
and conditions unsuitable to maintaining system integrity compliance.

Applicant representative:  Glenn P. Wicks,<PHONE_NUMBER>         DOT
analyst:  Allen F. Brown,<PHONE_NUMBER>

Responsive pleadings:  Volga-Dnepr served its application on those U.S.
carriers operating large all-cargo aircraft.  Each carrier indicated
that it did not have aircraft available to conduct the proposed
operation and that it had no comment or did not oppose grant of the
requested authority.

Statutory Standards:  Under 49 U.S.C. section 40109(g), we may authorize
a foreign air carrier to carry commercial traffic between U.S. points
(i.e., cabotage traffic) under limited circumstances.  Specifically, we
must find that the authority is required in the public interest; that
because of an emergency created by unusual circumstances not arising in
the normal course of business the traffic cannot be accommodated by U.S.
carriers holding certificates under 49 U.S.C. section 41102; that all
possible efforts have been made to place the traffic on U.S. carriers;
and that the transportation is necessary to avoid unreasonable hardship
to the traffic involved (an additional required finding, concerning
emergency transportation during labor disputes, was not relevant here).

        DISPOSITION

Action: Approved
                                             Action date:  May 10, 2004

Effective dates of authority granted:  May 10, 2004, through May 20,
2004

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its proposed one-way flight from Denver to Cape Canaveral, through May
20, 2004.  We found that its request met all the relevant criteria of 49
U.S.C. section 40109(g) for the grant of an exemption of this type and
that the grant was required in the public interest.  Specifically, we
were persuaded that the need to move the cargo promptly in order to meet
the tight integration and launch schedules, the fact that the cargo
could not be transported by surface transportation because of its large
size, delicate nature and high value, the potential negative impact of
delivery delay, and the unique, outsized nature of the cargo,
constituted an emergency not arising in the normal course of business.
Moreover, based on the representations of the U.S. carriers, we
concluded that no U.S. carrier had aircraft available that could be used
to conduct the operations at issue here.  We also found that grant of
this authority would prevent unreasonable hardship to Lockheed Martin.
Finally, we found that the applicant was qualified to perform its
proposed operation.

Except to the extent exempted/waived, this authority is subject to our
standard exemption conditions and to the condition that the applicant
must comply with an FAA-approved flight routing for the authorized
operation.

Action taken by:        Karan K. Bhatia

                                  Assistant Secretary

                     for Aviation and International Affairs

An electronic version of this document is available on the World Wide
Web at:

http://dms.dot.gov//reports/reports_aviation.asp


[Federal Register Volume 87, Number 60 (Tuesday, March 29, 2022)]
[Notices]
[Pages 18016-18017]
[FR Doc No: 2022-06576]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[FRL-9577-01-OW]

Meeting of the National Drinking Water Advisory Council

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of a public meeting.

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

SUMMARY: The U.S. Environmental Protection Agency's (EPA) Office of
Ground Water and Drinking Water is announcing a virtual meeting of the
National Drinking Water Advisory Council (NDWAC or Council) as
authorized under the Safe Drinking Water Act (SDWA). The purpose of the
meeting is for EPA to update the Council on Safe Drinking Water Act
programs and to consult with NDWAC as required by SDWA on a proposed
National Primary Drinking Water Regulation (NPDWR) for per- and
polyfluoroalkyl substances (PFAS), including perfluorooctanoic acid
(PFOA) and perfluorooctanesulfonic acid (PFOS). Additional details
including other topics for discussion will be provided in the meeting
agenda, which will be posted on EPA's NDWAC website. See the
SUPPLEMENTARY INFORMATION section of this announcement for more
information.

DATES: The meeting will be held on April 19, 2022, from 10:30 a.m. to
5:30 p.m., eastern time.

ADDRESSES: This will be a virtual meeting. There will be no in-person
gathering for this meeting. For more information about attending,
providing oral statements, and accessibility for the meeting, as well
as sending written comments, see the SUPPLEMENTARY INFORMATION section
of this announcement.

FOR FURTHER INFORMATION CONTACT: Elizabeth Corr, NDWAC Designated
Federal Officer, Office of Ground Water and Drinking Water (Mail Code
4601), U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue
NW, Washington, DC 20460; telephone number:<PHONE_NUMBER>; email
address: [email protected].

SUPPLEMENTARY INFORMATION:
    Attending the Meeting: The meeting will be open to the general
public. The meeting agenda and information on how to register for and
attend the meeting online will be provided on EPA's website at: https://www.epa.gov/ndwac prior to the meeting.
    Oral Statements: EPA will allocate one hour for the public to
present oral comments during the meeting. Oral statements will be
limited to three minutes per person during the public comment period.
It is preferred that only one person present a statement on behalf of a
group or organization. Persons interested in presenting an oral
statement should send an email to [email protected] by noon, eastern time,
on April 12, 2022.
    Written Statements: Any person who wishes to file a written
statement can do so before or after the Council meeting. Send written
statements by email to [email protected] or see the FOR FURTHER INFORMATION
CONTACT section if sending statements by mail. Written statements
received by noon, eastern time, on April 12, 2022, will be distributed
to all members of the Council prior to the meeting. Statements received
after that time will become part of the permanent file for the meeting
and will be forwarded to the Council members after conclusion of the
meeting. Members of the public should be aware that their personal
contact information, if included in any written comments, may be posted
to the NDWAC website. Copyrighted material will not be posted without
explicit permission of the copyright holder.
    Accessibility: For information on access or services for
individuals with disabilities, or to request accommodations for a
disability, please contact Elizabeth Corr by email at

[email protected], or by phone at<PHONE_NUMBER>, preferably at
least 10 days prior to the meeting to allow as much time as possible to
process your request.
    National Drinking Water Advisory Council: NDWAC was created by
Congress on December 16, 1974, as part of the Safe Drinking Water Act
(SDWA) of 1974, Public Law 93-523, 42 U.S.C. 300j-5, and is operated in
accordance with the provisions of the Federal Advisory Committee Act
(FACA), 5 U.S.C. App. 2. NDWAC was established to advise, consult with,
and make recommendations to the EPA Administrator on matters relating
to activities, functions, policies, and regulations under SDWA. General
information concerning NDWAC is available at: https://www.epa.gov/ndwac.

Jennifer L. McLain,
Director, Office of Ground Water and Drinking Water.
[FR Doc. 2022-06576 Filed 3-28-22; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 222 (Friday, November 16, 2012)]
[Proposed Rules]
[Pages 68722-68723]
[FR Doc No: 2012-27976]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 234

[Docket No. FRA-2011-0007, Notice No. 2]
RIN 2130-AC26

National Highway-Rail Crossing Inventory Reporting Requirements

AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).

ACTION: Announcement of technical symposium and extension of comment
period.

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

SUMMARY: On October 18, 2012, FRA published a Notice of Proposed
Rulemaking (NPRM) on National Highway-Rail Crossing Inventory Reporting
Requirements. In the NPRM, FRA announced that it would schedule a
technical symposium to give interested parties the opportunity to
discuss issues associated with the electronic submission of data to the
U.S. DOT National Highway-Rail Crossing Inventory (Crossing Inventory).
This notice announces the scheduling of the technical symposium. This
notice also extends the NPRM comment period to allow time for
interested parties to submit comments after the technical symposium.

DATES: The technical symposium will be held on December 13, 2012 in
Washington, DC and will commence at 10 a.m. The comment period in this
proceeding is extended to January 31, 2013.

ADDRESSES: (1) Technical Symposium: The technical symposium will be
held at the Courtyard by Marriott Capitol Hill/Navy Yard, 140 L Street
SE., Washington, DC 20003.
    (2) Attendance: Any person wishing to participate in the technical
symposium should notify Michelle Silva in FRA's Office of Chief Counsel
by telephone, email, or by mail at least five business days prior to
the date of the symposium. Ms. Silva's contact information is as
follows: FRA, Office of Chief Counsel, Mail Stop 10, 1200 New Jersey
Avenue SE., Washington, DC 20590; telephone:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>    For information on facilities or services for persons with
disabilities or to request special assistance at the meeting, please
contact Larry Woolverton in FRA's Office of Railroad Safety, by
telephone<PHONE_NUMBER>) or email (larry.woolverton@dot.gov).

SUPPLEMENTARY INFORMATION:

Technical Symposium

    The purpose of the technical symposium is to facilitate discussion
on technical issues associated with the electronic submission of data
to the Crossing Inventory. The meeting is not intended as a forum for
discussion or comment on any other aspects of the proposed rule. The
proposed topics for discussion include the draft Instructions for
Submitting U.S. DOT Crossing Inventory Data by Electronic Methods
(Electronic Submission Instructions) referenced in the NPRM (and
available in the docket at FRA-2011-0007-0005), proposed options for
the submission of electronic crossing data to the Crossing Inventory,
data formats that would be accepted for the submission of electronic
crossing data to the Crossing Inventory, and the proposed timeframe and
related concerns associated with meeting the proposed new requirements
for the electronic submission of crossing data to the Crossing
Inventory. In order to facilitate discussion at the technical
symposium, FRA intends to supplement the docket with revised draft
Electronic Submission Instructions prior to the symposium. The revised
draft Electronic Submission Instructions will contain information on
the proposed file formats and data specifications that would need to be
followed when preparing electronic crossing data for submission to the
Crossing Inventory. Therefore, interested parties are advised to
review, prior to attending the technical symposium, the draft revised
Electronic Submission Instructions that will be placed in the docket.
Parties are reminded that the docket (No. FRA-2011-0007) can be
accessed via the Internet at www.regulations.gov.

    A transcript of the technical symposium will be taken and placed in
the public docket of this proceeding.

Public Participation Procedures

    Any person wishing to participate in the technical symposium should
notify FRA by telephone, email, or mail as provided in the Attendance
section of this notice at least five business days prior to the date of
the technical symposium. The notification should identify the docket
number of this proceeding (Docket No. FRA-2011-0007), as well as the
organization the person represents (if any) and the particular issues
associated with electronic data submission that the person plans to
address. The notification should also provide a phone number, mailing
address, and email address (if applicable) at which the registrant can
be reached.

Extension of Comment Period

    To afford interested parties the opportunity to submit comments in
response to views or information provided at the technical symposium,
FRA is extending the comment period in this proceeding to January 31,
2013.

    Issued in Washington, DC, on November 9, 2012.
Jo Strang,
Associate Administrator for Railroad Safety/Chief Safety Officer.
[FR Doc. 2012-27976 Filed 11-15-12; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 85, Number 20 (Thursday, January 30, 2020)]
[Notices]
[Pages 5491-5493]
[FR Doc No: 2020-01644]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88030; File No. SR-OCC-2020-001]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Modify the Fees for
Exercise Notices Submitted After the Deadlines and To Change the
Deadline for Submitting a Late Exercise Notice on Non-Expiration Dates

January 24, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on January 14, 2020, the Options Clearing
Corporation (``OCC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by OCC. 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. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change by OCC would amend Rules 801 and 805 to
modify the fees for exercise notices submitted after the deadlines and
to amend Rule 801 to change the deadline for submitting a late exercise
notice on non-expiration dates. The proposed changes to OCC's Rules are
included in Exhibit 5 of the filing. Material proposed to be added to
OCC's Rules as currently in effect is marked by underlining and
material proposed to be deleted is marked with strikethrough text. All
terms with initial capitalization that are not otherwise defined herein
have the same meaning as set forth in the By-Laws and Rules.\3\
---------------------------------------------------------------------------

    \3\ OCC's By-Laws and Rules can be found on OCC's public
website: http://optionsclearing.com/about/publications/bylaws.jsp.
---------------------------------------------------------------------------

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

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

(1) Purpose
    The purpose of this rule filing is to: (1) Amend Rule 801 for
exercises on non-expiration dates and Rule 805 for exercises on
expiration dates to modify the fee applied to exercise notices that are
submitted to OCC after the start of critical processing (``late
exercise notices''), and (2) amend Rule 801 to change the deadline by
which late exercise notices are to be submitted to OCC for exercises on
non-expiration dates from 6:30 a.m. CT (7:30 a.m. ET) to 6:00 a.m. CT
(7:00 a.m. ET).
Background
    Rule 801 addresses the exercise of options other than at
expiration. Subject to certain conditions, Rule 801(d) grants the Chief
Executive Officer, Chief Operating Officer, or any delegate of such
officer the discretion to permit a Clearing Member to file an exercise
notice after the prescribed deadline solely for the purpose of
correcting a bona fide error on the part of the

Clearing Member or a customer.\4\ However, the requesting Clearing
Member must pay OCC a $75,000 fee per line item for a late exercise
notice.\5\ Similarly, Rule 805, which addresses exercises on
expiration, imposes a $75,000 fee per line item on a Clearing Member
that submits an exercise notice after the prescribed deadline.\6\
---------------------------------------------------------------------------

    \4\ The current deadline for submitting exercise notices other
than at expiration is 6:00 p.m. CT.
    \5\ A line item is an exercise instruction which includes the
account, series, and quantity to be exercised.
    \6\ The current deadline for submitting exercise notices at
expiration is 8:00 p.m. CT on monthly standard Friday expirations,
7:00 p.m. CT on weekly Friday expirations, and 6:30 p.m. CT on
Monday and Wednesday expirations. Any exercise notice submitted
after these expiration deadlines until the ``expiration time'' of
the option, which is currently 10:59 p.m. CT as set forth in Article
1, Section 1(E)(23) of the By-Laws, would be treated as a late
exercise notice. Rule 805(d)(2) also provides for the ability to
submit a notice to not exercise an in-the-money option (i.e., a
contrary exercise). OCC does not allow for the submission of
contrary exercise notices after these expiration deadlines.
---------------------------------------------------------------------------

    Rule 801(d) further provides that the deadline for submitting late
exercise notices for exercises other than at expiration is 6:30 a.m.
CT, and that OCC will notify Clearing Members with short positions that
they have been assigned a late exercise notice by 8:00 a.m. CT.\7\
---------------------------------------------------------------------------

    \7\ As discussed below, OCC is proposing to change the deadline
for submitting late exercises under Rule 801(d). OCC is not,
however, proposing to make any changes to the deadline for
submitting late exercises under Rule 805 (i.e., the expiration time
for an option).
---------------------------------------------------------------------------

Discussion
    In 2008, OCC raised the late exercise fee from $20,000 to $75,000
per line item in Rules 801 and 805 in response to the increased amount
of late exercise notices it had received in the prior two years.\8\ As
noted in connection with that change, the late exercise fee is intended
as an incentive for OCC Clearing Members to be especially diligent in
processing exercise notices and to improve back office procedures,
while at the same time while preserving their ability to correct bona
fide operational errors. OCC believes that the increase achieved its
intended purpose at the time of improving Clearing Members' processing
proficiency and significantly reduced the amount of late exercise
notices.
---------------------------------------------------------------------------

    \8\ See Exchange Act Release No. 59046 (December 3, 2008), 73 FR
75486 (December 11, 2008) (SR-OCC-2007-16).
---------------------------------------------------------------------------

    In 2017, OCC received four late exercise notices.\9\ This amount
was significantly more than the four late exercise notices OCC had
received in the seven years preceding 2017, and it prompted OCC to
review the late exercise fee again. OCC discussed the issue on November
9, 2017 with the OCC Roundtable, which is an OCC-sponsored advisory
group comprised of representatives from OCC's participant exchanges, a
cross-section of OCC clearing members, and OCC staff. These discussions
noted the dollar amount at issue in connection with each of the four
late exercises in 2017, which reflected the amount of dividends
received by the person submitting the late exercise as a result of
receiving the underlying shares. These dividend amounts ranged from
$188,000 to $375,810.\10\ As a result of these discussions, OCC's
Roundtable agreed that it was appropriate to increase the late exercise
fee to $250,000 per line item for late exercise notices submitted under
Rules 801 and 805. Consistent with the purposes of the late exercise
fee noted above, the Roundtable believed this amount would be in a
range to incent OCC Clearing Members to be especially diligent in
processing exercise notices while at the same time still allowing firms
to correct bona fide errors.
---------------------------------------------------------------------------

    \9\ Until recently, OCC had not received a late exercise notice
from a Clearing Member since these ones in 2017. On December 14,
2019, OCC received three late exercise notices from a Clearing
Member.
    \10\ The dividend amounts for the recent December 14, 2019 late
exercise notices ranged from $93,600 to $436,800.
---------------------------------------------------------------------------

    In connection with the four late exercise notices received in 2017,
OCC also reviewed its procedures for processing a late exercise. OCC
Rule 801(d) provides that the current deadline for a Clearing Member to
formally request a late exercise for an exercise on a non-expiration
date is 6:30 a.m. CT and that OCC must notify the assigned Clearing
Members by 8:00 a.m. CT of the late exercise. Given the compressed
timeframe in which to process a late exercise (i.e., 6:30 a.m. CT to
8:00 a.m. CT) and that they are an exception to the normal processing
routine, OCC's procedures for processing a late exercise involve
significant resources. They include a review of the positions of the
Clearing Member, escalation of the request to senior management, random
assignment of the exercise to Clearing Members holding the short
position, and a detailed communication to those assigned Clearing
Members. The late exercises in 2017 have shown the 6:30 to 8:00 a.m. CT
window is a narrow window for OCC staff to properly process the
exercise and assignments without delays, and OCC therefore believes it
needs another 30 minutes to process the late exercises. Accordingly,
OCC is proposing to change the deadline for the submission of late
exercises to 6:00 a.m. CT from the current 6:30 a.m. CT deadline. OCC
also discussed this proposal with the OCC Roundtable in connection with
discussions noted above and they agreed with it.
(2) Statutory Basis
    Section 17A(b)(3)(F) of the Act \11\ requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities and derivatives
transactions. OCC believes that the proposed rule change is consistent
with this provision because it would promote the prompt and accurate
clearance and settlement of securities transactions by providing an
incentive for Clearing Members to improve back office processing with
respect to identifying and handling positions for which an exercise
notice is to be submitted, while preserving their ability to correct
bona fide operational errors. Similarly, providing OCC an additional 30
minutes in which to process a late exercise notice is consistent with
this provision because it is designed to help OCC process such notices
without delays. As noted, OCC discussed both of these changes with the
OCC Roundtable and they agreed with them. The proposed rule change is
not inconsistent with the existing rules of OCC, including any other
rules proposed to be amended.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act \12\ requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the Act. OCC does not believe that the
proposed rule change would impact or impose any burden on
competition.\13\ The proposed rule change would not affect the
competitive dynamics between Clearing Members in that it would apply to
all Clearing Members equally. The proposed rule change also would not
inhibit access to OCC's services or disadvantage or favor any
particular user in relationship to another. In this regard, as
described above, the proposed rule change is designed to further
facilitate the prompt and accurate clearance and settlement of
securities transactions. It is designed to incent Clearing Members to
be especially diligent in processing exercise notices and to improve
back office procedures, while at the same time preserving their

ability to correct bona fide operational errors
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q-1(b)(3)(I).
    \13\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

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

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self- regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the 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-OCC-2020-001 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2020-001. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly.
    All submissions should refer to File Number SR-OCC-2020-001 and
should be submitted on or before February 20, 2020.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-01644 Filed 1-29-20; 8:45 am]
 BILLING CODE 8011-01-P