Persimmon..................................................         0.05
Pineapple..................................................         0.05
Pineapple, process residue.................................         0.25
Pistachio..................................................         0.05
Potato.....................................................          0.5
Rhubarb....................................................         0.05
Rice, grain................................................         0.05
Rice, straw................................................         0.06
Safflower, seed............................................         0.05
Sheep, fat.................................................         0.05
Sheep, kidney..............................................          0.5
Sheep, meat................................................         0.05
Sheep, meat byproducts, except kidney......................         0.05
Sorghum, forage, forage....................................          0.1
Sorghum, grain.............................................         0.05
Sorghum, grain, forage.....................................          0.1
Soybean, forage............................................          0.4
Soybean, hay...............................................         10.0
Soybean, hulls.............................................          4.5
Soybean, seed..............................................          0.7
Strawberry.................................................         0.25
Sugarcane, cane............................................          0.5
Sugarcane, molasses........................................          3.0
Sunflower, seed............................................          2.0
Turnip, greens.............................................         0.05
Turnip, roots..............................................         0.05
Vegetable, brassica, leafy, group 5........................         0.05
Vegetable, cucurbit, group 9...............................         0.05
Vegetable, fruiting, group 8...............................         0.05
Vegetable, legume, edible podded, subgroup 6A..............         0.05
Wheat, forage..............................................          0.5
Wheat, grain...............................................          1.1
Wheat, hay.................................................          3.5
Wheat, straw...............................................         50.0
------------------------------------------------------------------------

* * * * *

Sec.  180.225  [Amended]

0
5. Section 180.225 is amended by removing the entry for ``pimento''
from the table in paragraph (a)(1).

0
6. Section 180.226 is amended by revising paragraph (a)(1), the tables
in paragraph (a)(2)(i) and (a)(3), and by removing paragraph (a)(6) to
read as follows:

Sec.  180.226  Diquat; tolerances for residues.

    (a) General. (1) Tolerances are established for residues of the
plant growth regulator and herbicide diquat, (6,7-dihydrodipyrido (1,2-
a:2'1'-c)pyrazinediium) derived from application of the dibromide salt
and calculated as the cation in or on the following food commodities:

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Alfalfa, seed..............................................          3.0
Cattle, fat................................................         0.05
Cattle, meat...............................................         0.05
Cattle, meat byproducts....................................         0.05
Egg........................................................         0.05
Goat, fat..................................................         0.05
Goat, meat.................................................         0.05
Goat, meat byproducts......................................         0.05
Hog, fat...................................................         0.05
Hog, meat..................................................         0.05
Hog, meat byproducts.......................................         0.05
Horse, fat.................................................         0.05
Horse, meat................................................         0.05
Horse, meat byproducts.....................................         0.05
Milk.......................................................         0.02
Potato.....................................................          0.1
Poultry, fat...............................................         0.05
Poultry, meat..............................................         0.05
Poultry, meat byproducts...................................         0.05
Sheep, fat.................................................         0.05
Sheep, meat................................................         0.05
Sheep, meat byproducts.....................................         0.05
Sorghum, grain, grain......................................          2.0
Soybean, seed..............................................          0.2
------------------------------------------------------------------------

    (2)(i) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Avocado....................................................          0.2
Berry group 13.............................................         0.05
Cotton, undelinted seed....................................          0.2
Cranberry..................................................         0.05
Fish.......................................................          2.0
Fruit, citrus, group 10....................................         0.05
Fruit, pome, group 11......................................         0.02
Fruit, stone, group 12.....................................         0.02
Grain, cereal, forage, fodder and straw, group 16..........         0.02
Grain, cereal, group 15....................................         0.02
Grape......................................................         0.05
Grass, forage, fodder and hay, group 17....................          0.2
Hop, dried cones...........................................          0.2
Nut, tree, group 14........................................         0.02
Shellfish..................................................         20.0
Strawberry.................................................         0.05
Sugarcane, cane............................................          0.2
Vegetable, brassica, leafy, group 5........................         0.05
Vegetable, cucurbit, group 9...............................         0.02
Vegetable, foliage of legume, group 7......................          0.2
Vegetable, fruiting, group 8...............................         0.05
Vegetable, leafy, except brassica, group 4.................         0.05
Vegetable, root and tuber, group 1.........................         0.02
Vegetable, seed and pod....................................         0.05
------------------------------------------------------------------------

* * * * *
    (3) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Banana.....................................................         0.05
Coffee, bean, green........................................         0.05
Soybean, hulls.............................................          0.6
------------------------------------------------------------------------

* * * * *

0
7. Section 180.236 is revised to read as follows:

Sec.  180.236  Triphenyltin hydroxide; tolerances for residues.

    (a) General. Tolerances are established for the combined residues
of the fungicide triphenyltin hydroxide (TPTH) and its monophenyltin
(MPTH) and diphenyltin (DPTH) hydroxide and oxide metabolites,
expressed in terms of parent TPTH, in or on the following raw
agricultural commodities:

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Beet, sugar, roots.........................................         0.05
Beet, sugar, tops..........................................         10.0
Cattle, fat................................................          0.2
Cattle, kidney.............................................          2.0

Cattle, liver..............................................          4.0
Cattle, meat...............................................          0.5
Goat, fat..................................................          0.2
Goat, kidney...............................................          2.0
Goat, liver................................................          4.0
Goat, meat.................................................          0.5
Hog, fat...................................................          0.3
Hog, meat..................................................         0.06
Hog, meat byproducts.......................................          0.3
Horse, fat.................................................          0.2
Horse, kidney..............................................          2.0
Horse, liver...............................................          4.0
Horse, meat................................................          0.5
Milk.......................................................         0.06
Pecan......................................................         0.05
Potato.....................................................         0.05
Sheep, fat.................................................          0.2
Sheep, kidney..............................................          2.0
Sheep, liver...............................................          4.0
Sheep, meat................................................          0.5
------------------------------------------------------------------------

    (b) Section 18 emergency exemptions. [Reserved]
    (c) Tolerances with regional registrations. [Reserved]
    (d) Indirect or inadvertent residues. [Reserved]

0
8. Section 180.259 is amended by revising the table in paragraph (a) to
read as follows:

Sec.  180.259  Propargite; tolerances for residues.

    (a) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Almond.....................................................          0.1
Almond, hulls..............................................         55.0
Bean, dry, seed............................................          0.2
Cattle, fat................................................          0.1
Cattle, meat...............................................          0.1
Cattle, meat byproducts....................................          0.1
Citrus, oil................................................         30.0
Corn, field, forage........................................         10.0
Corn, field, grain.........................................          0.1
Corn, pop, grain...........................................          0.1
Corn, stover...............................................         10.0
Corn, sweet, forage........................................         10.0
Cotton, undelinted seed....................................          0.1
Egg........................................................          0.1
Goat, fat..................................................          0.1
Goat, meat.................................................          0.1
Goat, meat byproducts......................................          0.1
Grain, aspirated fractions.................................          0.4
Grapefruit.................................................          5.0
Grape......................................................         10.0
Hog, fat...................................................          0.1
Hog, meat..................................................          0.1
Hog, meat byproducts.......................................          0.1
Hop, dried cones...........................................         30.0
Horse, fat.................................................          0.1
Horse, meat................................................          0.1
Horse, meat byproducts.....................................          0.1
Lemon......................................................          5.0
Milk, fat (0.08 ppm in milk)...............................          2.0
Nectarine..................................................          4.0
Orange.....................................................         10.0
Peanut.....................................................          0.1
Peanut, hay................................................         10.0
Peppermint, tops...........................................         50.0
Poultry, fat...............................................          0.1
Potato.....................................................          0.1
Sheep, fat.................................................          0.1
Sheep, meat................................................          0.1
Sheep, meat byproducts.....................................          0.1
Sorghum, grain.............................................          5.0
Sorghum, grain, forage.....................................         10.0
Sorghum, grain, stover.....................................         10.0
Spearmint, tops............................................         50.0
Tea, dried.................................................         10.0
Walnut.....................................................          0.1
------------------------------------------------------------------------

* * * * *

0
9. Section 180.292 is amended by revising the tables in paragraphs
(a)(1) and (2), removing paragraph (a)(3), and by removing the text
from paragraph (d) and reserving the paragraph designation and heading
to read as follows:

Sec.  180.292  Picloram; tolerances for residues.

    (a) * * * (1) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Barley, grain..............................................          0.5
Barley, straw..............................................          1.0
Cattle, fat................................................          0.2
Cattle, kidney.............................................          5.0
Cattle, liver..............................................          0.5
Cattle, meat...............................................          0.2
Cattle, meat byproducts, except kidney and liver...........          0.2
Egg........................................................         0.05
Goat, fat..................................................          0.2
Goat, kidney...............................................          5.0
Goat, liver................................................          0.5
Goat, meat.................................................          0.2
Goat, meat byproducts, except kidney and liver.............          0.2
Grain, aspirated fractions.................................          4.0
Grass, forage..............................................         80.0
Hog, fat...................................................          0.2
Hog, kidney................................................          5.0
Hog, liver.................................................          0.5
Hog, meat..................................................          0.2
Hog, meat byproducts, except kidney and liver..............          0.2
Horse, fat.................................................          0.2
Horse, kidney..............................................          5.0
Horse, liver...............................................          0.5
Horse, meat................................................          0.2
Horse, meat byproducts, except kidney and liver............          0.2
Milk.......................................................         0.05
Oat, forage................................................          1.0
Oat, grain.................................................          0.5
Oat, straw.................................................          1.0
Poultry, fat...............................................         0.05
Poultry, meat..............................................         0.05
Poultry, meat byproducts...................................         0.05
Sheep, fat.................................................          0.2
Sheep, kidney..............................................          5.0
Sheep, liver...............................................          0.5
Sheep, meat................................................          0.2
Sheep, meat byproducts, except kidney and liver............          0.2
Wheat, forage..............................................          1.0
Wheat, grain...............................................          0.5
Wheat, straw...............................................          1.0
------------------------------------------------------------------------

    (2) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Barley, pearled barley.....................................          3.0
Oat, groats/rolled oats....................................          3.0
Wheat, bran................................................          3.0
Wheat, germ................................................          3.0
Wheat, middlings...........................................          3.0
Wheat, shorts..............................................          3.0
------------------------------------------------------------------------

* * * * *
    (d) Indirect or inadvertent residues. [Reserved]

0
10. Section 180.324 is amended by revising the table in paragraph
(a)(1) to read as follows:

Sec.  180.324  Bromoxynil; tolerances for residues.

    (a) * * * (1) * * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Alfalfa, forage............................................          0.1
Alfalfa, hay...............................................          0.5
Barley, grain..............................................         0.05
Barley, hay................................................          9.0
Barley, straw..............................................          4.0
Corn, field, forage........................................          0.3
Corn, field, grain.........................................         0.05
Corn, field, stover........................................          0.2
Corn, pop, grain...........................................         0.05
Corn, pop, stover..........................................          0.2
Flax, seed.................................................          0.1
Garlic.....................................................          0.1
Grain, aspirated fractions.................................          0.3
Grass, forage..............................................          3.0
Grass, hay.................................................          3.0
Oat, forage................................................          0.3
Oat, grain.................................................         0.05
Oat, hay...................................................          9.0
Oat, straw.................................................          4.0
Onion, bulb................................................          0.1
Peppermint, hay............................................          0.1
Rye, forage................................................          1.0
Rye, grain.................................................         0.05
Rye, straw.................................................          2.0
Sorghum, grain.............................................         0.05
Sorghum, grain, forage.....................................          0.5
Sorghum, grain, stover.....................................          0.2
Spearmint, hay.............................................          0.1
Wheat, forage..............................................          1.0
Wheat, grain...............................................         0.05
Wheat, hay.................................................          4.0
Wheat, straw...............................................          2.0
------------------------------------------------------------------------

* * * * *

0
11. Section 180.362 is amended by revising paragraph (a) to read as
follows:

Sec.  180.362  Hexakis (2-methyl-2-phenylpropyl)distannoxane;
tolerances for residues.

    (a) General. (1) Tolerances are established for residues of hexakis
(2-methyl-2-phenylpropyl)distannoxane in or on the following raw
agricultural commodities:

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Almond, hulls..............................................         80.0
Apple......................................................         15.0
Apple, wet pomace..........................................        100.0
Cherry, sweet..............................................          6.0
Cherry, tart...............................................          6.0
Citrus, dried pulp.........................................        100.0
Citrus, oil................................................        140.0
Cucumber...................................................          4.0
Eggplant...................................................          6.0
Fruit, citrus, group 10....................................         20.0
Grape......................................................          5.0
Grape, raisin..............................................         20.0
Nut, tree, group 14........................................          0.5
Papaya.....................................................          2.0
Peach......................................................         10.0
Pear.......................................................         15.0
Plum, prune, fresh.........................................          4.0
Plum, prune, dried.........................................         20.0
Strawberry.................................................         10.0
------------------------------------------------------------------------

    (2) Tolerances are established for the combined residues of hexakis
(2-methyl-2-phenylpropyl)distannoxane and its organotin metabolites
dihydroxybis(2-methyl-2-phenylpropyl)stannane, and 2-methyl-
2phenylpropylstannoic acid in or on the following raw agricultural
commodities:

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Cattle, fat................................................          0.5
Cattle, meat...............................................          0.5
Cattle, meat byproducts....................................          0.5
Egg........................................................          0.1
Goat, fat..................................................          0.5
Goat, meat.................................................          0.5
Goat, meat byproducts......................................          0.5
Hog, fat...................................................          0.5
Hog, meat..................................................          0.5
Hog, meat byproducts.......................................          0.5
Horse, fat.................................................          0.5
Horse, meat................................................          0.5
Horse, meat byproducts.....................................          0.5
Milk, fat..................................................          0.1
Poultry, fat...............................................          0.1
Poultry, meat..............................................          0.1
Poultry, meat byproducts...................................          0.1
Sheep, fat.................................................          0.5
Sheep, meat................................................          0.5
Sheep, meat byproducts.....................................          0.5
------------------------------------------------------------------------

* * * * *

0
12. Section 180.370 is amended by revising the table in paragraph (a)
to read as follows:

Sec.  180.370  5-Ethoxy-3-(trichloromethyl)-1,2,4-thiadiazole;
tolerances for residues.

    (a) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Barley, grain..............................................          0.1
Barley, hay................................................          0.1
Corn, field, forage........................................          0.1
Corn, field, grain.........................................          0.1
Corn, field, stover........................................          0.1
Corn, sweet, forage........................................          0.1
Corn, sweet, stover........................................          0.1
Cotton, gin byproducts.....................................          0.1
Cotton, undelinted seed....................................          0.1
Peanut.....................................................          0.1
Safflower, seed............................................          0.1
Sorghum, grain, forage.....................................          0.1
Sorghum, grain, grain......................................          0.1
Tomato.....................................................         0.15
Vegetable, foliage of legume, group 7......................          0.1
Vegetable, legume, group 6.................................          0.1
Wheat, forage..............................................          0.1
Wheat, grain...............................................          0.1
Wheat, straw...............................................          0.1
------------------------------------------------------------------------

* * * * *

Sec.  180.385  [Amended]

0
13. Section 180.385 is amended by removing from the table in paragraph
(a) the entries for ``lentil, seed'' and ``pea seeds (dry)''.

0
14. Section 180.395 is amended by revising the table in paragraph (a)
and removing the text from paragraph (b), and reserving the paragraph
designation and heading to read as follows:

Sec.  180.395  Hydramethylnon; tolerances for residues.

    (a) * * *

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Grass, forage..............................................          2.0
Grass, hay.................................................          2.0
Pineapple..................................................         0.05
------------------------------------------------------------------------

    (b) Section 18 emergency exemptions. [Reserved]
* * * * *

0
15. Section 180.417 is amended by revising paragraph (a) to read as
follows:

Sec.  180.417  Triclopyr; tolerances for residues.

    (a) General. (1) Tolerances for residues of the herbicide triclopyr
per se, as a result of the application/use of butoxyethyl ester of
triclopyr and triethyylamine salt of triclopyr, are established in or
on the following raw agricultural commodities:

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Egg........................................................         0.05
Fish.......................................................          3.0
Grass, forage..............................................        700.0
Grass, hay.................................................        200.0
Milk.......................................................         0.01
Poultry, fat...............................................          0.1
Poultry, meat..............................................          0.1
Poultry, meat byproducts, except kidney....................          0.1
Rice, grain................................................          0.3
Rice, straw................................................         10.0
Shellfish..................................................          3.5
------------------------------------------------------------------------

    (2) Tolerances for the combined residues of the herbicide triclopyr
((3,5,6-trichloro-2-pyridinyl)oxy) acetic acid and its metabolite
3,5,6-trichloro-2-pyridinol (TCP), as a result of the application/use
of butoxyethyl ester of triclopyr or the triethylamine salt of
triclopyr, are established in or on the following raw agricultural
commodities:

------------------------------------------------------------------------
                                                              Parts per
                         Commodity                             million
------------------------------------------------------------------------
Cattle, fat................................................         0.05
Cattle, kidney.............................................          0.5
Cattle, liver..............................................          0.5
Cattle, meat...............................................         0.05
Cattle, meat byproducts, except kidney and liver...........         0.05
Goat, fat..................................................         0.05
Goat, kidney...............................................          0.5
Goat, liver................................................          0.5
Goat, meat.................................................         0.05
Goat, meat byproducts, except kidney and liver.............         0.05
Hog, fat...................................................         0.05
Hog, kidney................................................          0.5
Hog, liver.................................................          0.5
Hog, meat..................................................         0.05
Hog, meat byproducts, except kidney and liver..............         0.05
Horse, fat.................................................         0.05
Horse, kidney..............................................          0.5
Horse, liver...............................................          0.5
Horse, meat................................................         0.05
Horse, meat byproducts, except kidney and liver............         0.05
Sheep, fat.................................................         0.05
Sheep, kidney..............................................          0.5
Sheep, liver...............................................          0.5
Sheep, meat................................................         0.05
Sheep, meat byproducts, except kidney and liver............         0.05
------------------------------------------------------------------------

* * * * *

[FR Doc. E7-14895 Filed 7-31-07; 8:45 am]

BILLING CODE 6560-50-S


[Federal Register: October 22, 2007 (Volume 72, Number 203)]
[Notices]
[Page 59577-59579]
[DOCID:fr22oc07-117]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56667; File No. SR-NFA-2007-04]

Self-Regulatory Organizations; National Futures Association;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Compliance Rule 2-4: Misuse of Trade Secrets and Proprietary
Information

October 17, 2007.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934
(``Exchange Act''),\1\ and Rule 19b-7 under the Exchange Act,\2\ notice
is hereby given that on August 20, 2007, National Futures Association
(``NFA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change described in Items I, II, and
III below, which Items have been substantially prepared by NFA. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons. NFA also has filed the
proposed rule change with the Commodity Futures Trading Commission
(``CFTC'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
---------------------------------------------------------------------------

    NFA, on August 17, 2007, submitted the proposed rule change to the
CFTC for approval and invoked the ``ten-day'' provision of section
17(j) of the Commodity Exchange Act (``CEA'').\3\ By letter dated
September 5, 2007, the CFTC notified NFA of its determination not to
review the proposed rule change.\4\
---------------------------------------------------------------------------

    \3\ 7 U.S.C. 21(j).
    \4\ See letter from Lawrence B. Patent, Deputy Director, CFTC,
to Thomas W. Sexton, III, General Counsel, NFA (``Letter'').
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule
Change

Text of Proposed Rule Changes Interpretive Notice NFA Compliance Rule
2-4: Misuse of Trade Secrets And Proprietary Information

    National Futures Association (``NFA'') Compliance Rule 2-4 provides
that Members and Associates shall observe high standards of commercial
honor and just and equitable principles of trade in the conduct of
their commodity futures business. Over the years, NFA's Board of
Directors (``Board'') has provided guidance on certain issues to ensure
that Members and Associates understand their responsibilities to
observe just and equitable principles of trade and to act honestly,
fairly, and in the best interests of customers.
    Compliance Rule 2-4 prohibits Members and Associates from knowingly
obtaining or seeking to obtain another Member's or Associate's
confidential information or trade secrets without that person's
permission. It also prohibits Members and Associates from knowingly or
recklessly misusing confidential information or trade secrets in their
possession. Although that rule does not seek to regulate business
disputes between Members or to extend beyond commodity futures
activities, it does reach conduct that could potentially harm
customers.
    Conduct that may violate Compliance Rule 2-4 includes:
     Misusing customer information, such as misappropriating
social security numbers or purposefully violating the firm's privacy
statement;
     Disclosing customer orders prior to execution (except as
permitted by exchange rules); or
     Obtaining or attempting to obtain information disclosing a
CTA's historical trading positions without the CTA's permission.
    These are merely examples of conduct that could potentially harm
customers. Any Member or Associate that knowingly obtains or seeks to
obtain

confidential information or trade secrets of another Member or
Associate without that person's permission or that knowingly or
recklessly misuses trade secrets and/or proprietary information in the
conduct of its commodity futures business violates Compliance Rule 2-4.

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

    In its filing with the Commission, NFA has prepared statements
concerning the purpose of, and basis for, the proposed rule change,
burdens on competition, and comments received from members,
participants, and others. The text of these statements may be examined
at the places specified in Item IV below. NFA 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
    Section 15A(k) of the Exchange Act \5\ makes NFA a national
securities association for the limited purpose of regulating the
activities of NFA members (``Members'') who are registered as brokers
or dealers in security futures products under section 15(b)(11) of the
Exchange Act.\6\ The new interpretive notice applies to all Members,
including those who are registered as security futures brokers or
dealers under section 15(b)(11).
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78o-3(k).
    \6\ 15 U.S.C. 78o(b)(11).
---------------------------------------------------------------------------

    NFA Compliance Rule 2-4 requires Members and Associates to observe
high standards of commercial honor and just and equitable principles of
trade in the conduct of their commodity futures business. The proposed
notice makes clear that Members and Associates violate NFA Compliance
Rule 2-4 if they knowingly obtain or seek to obtain another Member's or
Associate's confidential information or trade secrets without that
person's permission or knowingly or recklessly misuse confidential
information or trade secrets in their possession when these activities
may harm futures customers. It also clarifies that this prohibition is
limited to a Member's commodity futures business and does not reach
into areas beyond NFA's normal jurisdiction.
    The notice is narrowly drawn, focusing on behaviors that could harm
customers. It gives three examples of behavior that violates the rule:
(1) Misusing customer information, (2) disclosing customer orders, and
(3) obtaining or attempting to obtain confidential information
disclosing a CTA's historical trading positions.
2. Statutory Basis
    The rule change is authorized by, and consistent with, Section
15A(k) of the Exchange Act.\7\ This Section requires NFA to have rules
that are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and, in
general, to protect investors and the public interest in connection
with security futures products. The proposed rule change accomplishes
this by prohibiting the misuse of nonpublic information.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3(k).
---------------------------------------------------------------------------

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

    The rule change will not impose any burden on legitimate
competition. It should, however, prevent Members from using
illegitimate means to gain a competitive advantage when those means
could harm customers.

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

    NFA did not publish the rule change to the membership for comment
but did discuss it with NFA's FCM, IB, and CPO/CTA Advisory Committees,
which generally supported it. NFA did not receive comment letters
concerning the rule change.

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

    NFA, on August 17, 2007, submitted the proposed Interpretive Notice
entitled ``NFA Compliance Rule 2-4: Misuse of Trade Secrets and
Proprietary Information'' to the CFTC for approval and invoked the
``ten-day'' provision of section 17(j) of the CEA.\8\ The CFTC notified
NFA of its determination not to review the proposed rule change.\9\ The
proposed rule change has become effective on September 5, 2007.
---------------------------------------------------------------------------

    \8\ 7 U.S.C. 21(j).
    \9\ See Letter, supra note 4.
---------------------------------------------------------------------------

    Within 60 days of the date of effectiveness of the proposed rule
change, the Commission, after consultation with the CFTC, may summarily
abrogate the proposed rule change and require that the proposed rule
change be refiled in accordance with the provisions of section 19(b)(1)
of the Exchange Act.\10\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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 Exchange 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-NFA-2007-04 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-NFA-2007-04. 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 NFA. 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-NFA-2007-04 and should be
submitted on or before November 13, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(75).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-20784 Filed 10-19-07; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: January 18, 2011 (Volume 76, Number 11)]
[Notices]
[Page 2938-2940]
[DOCID:fr18ja11-102]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63694; File No. SR-BX-2011-001]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
BOX Trading Rules Regarding Voluntary Withdrawal From Trading Options
Classes in Which They Are Appointed

January 11, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 7, 2011, NASDAQ OMX BX, Inc. (the ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by the self-regulatory organization. The Commission
is publishing this notice to solicit comments on the proposed rule from
interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend Chapter VI, Section 4 (Appointment
of Market Makers) of the Rules of the Boston Options Exchange Group,
LLC (``BOX'') to permit the Exchange and Market Makers greater
flexibility in handling Market Makers' voluntary withdrawal from
trading options classes in which they are appointed. The text of the
proposed rule change is available from the principal office of the
Exchange, at the Commission's Public Reference Room and also on the
Exchange's Internet Web site at http://nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.

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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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 Chapter VI, Section 4(f) of the BOX
Rules (Appointment of Market Makers) to eliminate the requirement that
a Market Maker provide three business days' notice if they wish to
withdraw from trading an options class in which they are appointed. The
proposed rule change will provide that Boston Options Exchange
Regulation, LLC (``BOXR'') (i) may determine an appropriate minimum
amount of prior notice required for Market Makers to withdraw from
trading; and (ii) has the authority to place other conditions on Market
Maker withdrawal as may be appropriate in the interests of maintaining
fair and orderly markets.
    Chapter VI, Section 4(f) of the BOX Trading Rules currently
provides that a Market Maker may voluntarily withdraw from trading an
options class that is within their appointment by providing BOX with
three business days' written notice of such withdrawal. The proposed
rule change will eliminate

this specific notice requirement and give BOXR the discretion to
determine a minimum prior notice period required for a Market Maker's
withdrawal. Additionally, the proposed rule change will permit BOXR to
place other conditions on Market Maker withdrawal as may be appropriate
in the interests of maintaining fair and orderly markets. BOX believes
that removing the requirement of three business days' notice is
appropriate because requests for withdrawal can generally be addressed
within one business day. As such, three business days' notice is simply
unnecessary for BOX to respond to such requests. Market Makers'
requests for withdrawal from a class in which they are appointed will
not be permitted intraday, but may be approved as soon as the opening
of trading on the following business day.
    Under the proposed rule change, BOXR will also have the authority
to place conditions on Market Maker withdrawal as may be appropriate in
the interests of maintaining fair and orderly markets. With this
discretionary authority, BOXR can consider the impact of a Market
Maker's withdrawal on the market's customers, participants, other
Market Makers, and the overall marketplace, and place conditions on a
Market Maker's withdrawal as appropriate and necessary. This authority
allows BOXR to consider various factors, but BOXR will exercise its
discretion to place conditions on Market Maker withdrawal in a non-
discriminatory manner.
    In particular, the proposed rule change will allow BOXR greater
flexibility when addressing instances where the Market Maker requesting
voluntary withdrawal is the only Market Maker appointed to such class.
Chapter IV, Section 5(a) of the BOX Rules specifies that BOXR will open
trading in a series of options in a class only if there is at least one
Market Maker appointed for trading in that particular class. BOX
believes that requiring at least one Market Maker to be appointed for
trading a class provides BOX Options Participants with the greatest
amount of potential liquidity. Generally, BOXR anticipates placing
conditions on a Market Maker's request for withdrawal when the Market
Maker is the only Market Maker appointed to a class. For example, the
Market Maker may be required to continue trading in its appointed class
until BOXR can appoint another Market Maker in such options class, or
for one or more additional trading days, as BOXR deems appropriate in
the interests of maintaining a fair and orderly market and so that BOX
market participants may continue trading without interruption, if
possible. If BOXR is unable to appoint another Market Maker in the
options class, then BOXR may, in accordance with the proposed rule
change and the BOX Rules, approve the Market Maker withdrawal, but then
be unable to open trading in that class the following day.
    BOX believes that this proposed rule change eliminating the
specific notice requirement for Market Makers' voluntary withdrawal
from trading will provide BOX and its Market Makers greater flexibility
in modifying Market Maker appointments in options classes on BOX, while
retaining BOXR's ability to act in the best interests of a fair and
orderly market when a Market Maker requests voluntary withdrawal. BOX
believes that all of its market participants benefit from continuous
open trading on BOX, and Market Makers assist in the maintenance of
fair and orderly markets and provide liquidity to BOX. BOX believes
that providing potential BOX Market Makers greater flexibility in
handling their class appointments for trading on BOX may encourage
additional market participants to act as a Market Maker on BOX and
allow Market Makers to better fulfill their role on BOX to the benefit
of all BOX participants. BOX believes that additional Market Makers may
add liquidity and result in better markets.
    Finally, Chapter VI, Section 4(f) will continue to specify that
Market Makers who fail to give the required advance written notice of
withdrawal may be subject to formal disciplinary action by the
Exchange. The Exchange believes that this continues to be appropriate
so that regulatory action might be taken against any Market Maker that
fails to comply with the notice requirement, or any other conditions
that BOXR may place on the Market Maker, for withdrawal.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\3\ in general, and Section
6(b)(5) of the Act,\4\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, promote just and
equitable principles of trade, facilitate transactions in securities,
remove impediments to and perfect the mechanism for a free and open
market and a national market system and, in general, to protect
investors and the public interest. In particular, the Exchange believes
this proposal will enhance Market Maker flexibility in decision-making
about the options classes in which they are appointed and trade and
benefit BOX market participants by removing impediments to and
perfecting the mechanism for a free and open market and a national
market system. Further, BOX believes that all of its market
participants benefit from continuous open trading on BOX, and Market
Makers assist in the maintenance of fair and orderly markets and
provide liquidity to BOX. Moreover, BOX believes that providing
potential BOX Market Makers greater flexibility in handling their class
appointments for trading on BOX may encourage additional market
participants to act as a Market Maker on BOX and allow Market Makers to
better fulfill their role on BOX to the benefit of all BOX
participants. BOX believes that additional Market Makers may add
liquidity and result in better markets.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

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

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

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

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

    This Exchange believes that the proposed rule change is
substantially similar to the rules of another self-regulatory
organization that has previously been approved by the Commission.\5\
Accordingly, the Exchange has designated this rule filing as non-
controversial under Section 19(b)(3)(A) of the Exchange Act \6\ and
Rule 19b-4(f)(6) thereunder.\7\ The Exchange believes that the proposed
rule change should take effect immediately upon filing because it will
effect a change that: (1) Does not significantly affect the protection
of investors or the public interest, (2) does

not impose any significant burden on competition, and (3) does not
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate. The Exchange
provided the Commission with 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, or such shorter time as designated by the Commission.\8\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58644 (September 25,
2008), 73 FR 57172 (October 1, 2008) (BATS-2008-005) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Amend
BATS Rulebook Chapter XI to Add Four New Rules Regarding the
Registration and Obligations of Market Makers).
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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 Exchange 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-BX-2011-001 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BX-2011-001. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2011-001 and should be
submitted on or before February 8, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-892 Filed 1-14-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 65 (Wednesday, April 7, 2021)]
[Notices]
[Pages 18084-18087]
[FR Doc No: 2021-07114]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91449; File No. SR-NYSE-2021-21]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7.37

April 1, 2021.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on March 25, 2021, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend Rule 7.37 to specify when the
Exchange may adjust its calculation of the PBBO. The proposed rule
change is available on the Exchange's website 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 7.37 to specify when the
Exchange may adjust its calculation of the PBBO.\4\
---------------------------------------------------------------------------

    \4\ The term ``PBBO'' is defined in Rule 1.1 to mean the Best
Protected Bid and the Best Protected Offer, which in turn mean the
highest Protected Bid and the lowest Protected Offer, which refer to
quotations in an NMS stock that is (i) displayed by an Automated
Trading Center; (ii) disseminated pursuant to an effective national
market system plan; and (iii) an Automated Quotation that is the
best bid or best offer of a national securities exchange or the best
bid or best offer of a national securities association. The term
NBBO is defined to mean the national best bid and offer. The
Exchange notes that the NBBO may differ from the PBBO because the
NBBO includes Manual Quotations, which are defined as any quotation
other than an automated quotation. 17 CFR 242.600(b)(37).
---------------------------------------------------------------------------

    Generally, the Exchange updates both the PBBO and NBBO based on
quote updates received from data feeds from Away Markets, which are
disclosed in Rule 7.37(e). In 2015, the Exchange described in a rule
filing that when it

routes interest to a protected quotation, the Exchange adjusts the
PBBO.\5\ The Exchange proposes to amend its rules to include that
description in Rule 7.37 and provide additional specificity of when it
may adjust its calculation of the PBBO.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 74410 (March 2,
2015), 80 FR 12240 (March 6, 2015) (SR-NYSE-2015-09) (Notice of
filing and immediate effectiveness of proposed rule change) (``Data
Feed Filing'').
---------------------------------------------------------------------------

    As proposed, new paragraph (e)(1) of Rule 7.37 would provide:

    The Exchange may adjust its calculation of the PBBO based on
information about orders it sends to Away Markets with protected
quotations, execution reports received from those Away Markets, and
certain orders received by the Exchange.

    This proposed rule text is consistent with the Exchange's
disclosure in the Data Feed Filing and adds specificity that the
Exchange may adjust its calculation of the PBBO based on execution
reports received from Away Markets and certain orders received by the
Exchange.\6\
---------------------------------------------------------------------------

    \6\ The Exchange does not adjust its calculation of the NBBO
based on information about orders sent to Away Markets, execution
reports from Away Markets, or certain orders received by the
Exchange.
---------------------------------------------------------------------------

    Proposed Rule 7.37(e)(1) is based on MEMX LLC (``MEMX'') Rule
13.4(b) with two non-substantive differences.\7\ First, the Exchange
proposes to use the term ``PBBO,'' which is the term used in the
Exchange's rules for the best-priced protected quotations, instead of
``NBBO.'' Second, the Exchange proposes to refer to ``Away Markets,''
which is a defined term in Rule 1.1, instead of ``other venues.''
---------------------------------------------------------------------------

    \7\ MEMX Rule 13.4(b) provides: ``The Exchange may adjust its
calculation of the NBBO based on information about orders sent to
other venues with protected quotations, execution reports received
from those venues, and certain orders received by the Exchange.''
---------------------------------------------------------------------------

    MEMX has not disclosed circumstances when ``certain orders received
by the Exchange'' would result in an adjustment to its calculation of
the PBBO, but the Exchange believes that when MEMX receives an ISO with
a Day time in force (``Day ISO''), it adjusts its calculation of the
PBBO. The Exchange proposes that it would also adjust its calculation
of the PBBO based on receipt of a Day ISO, which is consistent with how
Nasdaq Stock Market LLC (``Nasdaq'') \8\ and Cboe BZX Exchange, Inc.
(``BZX'') \9\ function.
---------------------------------------------------------------------------

    \8\ See Nasdaq Rule 4703(j) (``Upon receipt of an ISO, the
System will consider the stated price of the ISO to be available for
other Orders to be entered at that price, unless the ISO is not
itself accepted at that price level (for example, a Post-Only Order
that has its price adjusted to avoid executing against an Order on
the Nasdaq Book) or the ISO is not Displayed.'') and Securities
Exchange Act Release No. 74558 (March 20, 2015) 80 FR 16050, 16068
(March 26, 2015) (SR-Nasdaq-2015-024) (Notice).
    \9\ See Securities Exchange Act Release No. 74074 (January 15,
2015), 80 FR 3679, 3680 (January 23, 2015) (SR-BATS-2015-04) (Notice
of filing and immediate effectiveness of proposed rule change to
clarify the use of certain data feeds) (``The Exchange's [matching
engine] will update the NBBO upon receipt of a Day ISO. When a Day
ISO is posted on the BATS Book, the [matching engine] uses the
receipt of a Day ISO as evidence that the protected quotes have been
cleared, and the ME does not check away markets for equal or better-
priced protected quotes. . . . . In determining whether to route an
order and to which venue(s) it should be routed, the [routing
engine] makes its own calculation of the NBBO. . . . The [routing
engine] does not utilize Day ISO Feedback in constructing the NBBO;
however, because all orders initially flow through the [matching
engine], to the extent Day ISO Feedback has updated the [matching
engine's] calculation of the NBBO, all orders processed by the
[routing engine] do take Day ISO Feedback into account.'') (``BZX
Filing'').
---------------------------------------------------------------------------

    Specifically, the Exchange proposes that it would adjust its
calculation of the PBBO upon receipt of a Day ISO Order that the
Exchange displays. As described in Rule 7.37(f)(3)(C), a Day ISO is
eligible for the exception to locking or crossing a protected quotation
because the member organization simultaneously routes an ISO to execute
against the full size of any locked or crossed protection quotations,
i.e., the member organization routes ISOs to trade with contra-side
protected quotations on Away Markets that are priced equal to or better
than the arriving Day ISO on the Exchange. Because receipt of a Day ISO
informs the Exchange that the member organization has routed ISOs to
trade with Away Market contra-side protected quotations priced equal to
or better than the Day ISO, upon receipt and displaying of a Day ISO,
the Exchange proposes to adjust its calculation of the PBBO to exclude
any contra-side protected quotations that are priced equal to or better
than the Day ISO.
     For example, if the best protected bid is 10.00, Exchange
A is displaying a protected offer at 10.05, and Exchange B is
displaying a protected offer at 10.09, the Exchange's calculation of
the PBBO would be 10.00 x 10.05. If the Exchange receives a Day ISO for
100 shares to buy priced at 10.05 that is displayed on the Exchange at
10.05, the Exchange would adjust its calculation of the PBBO to be
10.05 x 10.09 and would use this updated PBBO for execution, routing,
and re-pricing determinations.
    If a Day ISO is displayed on the Exchange at a price less
aggressive than its limit price (e.g., a Day ISO ALO that, if displayed
at its limit price, would lock displayed interest on the Exchange), the
Day ISO still informs the Exchange that the member organization has
routed ISOs to trade with contra-side protected quotations on Away
Markets that are priced equal to or better than the limit price of
arriving Day ISO on the Exchange. The Exchange would therefore use the
limit price of the Day ISO ALO to determine how to adjust its
calculation of the contra-side Away Market PBBO, provided that contra-
side displayed interest on the Exchange equal to the limit price of the
Day ISO ALO would not be considered cleared. The price at which the
arriving Day ISO ALO would be displayed would be the price that informs
the Exchange's calculation of the same-side PBBO.
    For example, when the best protected bid is 10.00 and Exchange A is
displaying a protected offer at 10.05 and the Exchange's best displayed
offer is 10.07, the Exchange's calculation of the PBBO would be 10.00 x
10.05, then:
     If the Exchange receives ALO ``1'' to buy at 10.06, it
would be displayed at 10.04 and be assigned a working price of 10.05,
which is the PBO (displayed on Exchange A),\10\ and the Exchange would
adjust the PBBO to be 10.04 x 10.05.
---------------------------------------------------------------------------

    \10\ See Rule 7.31(e)(2)(B)(i).
---------------------------------------------------------------------------

     If next, the Exchange receives Day ISO ALO ``2'' to buy at
10.07, the Exchange would be permitted to display that order at a price
that crosses Exchange A's PBO because it is a Day ISO. However, because
it locks the Exchange's best displayed offer, due to its ALO modifier,
the Exchange would display Day ISO ALO ``2'' at 10.06 and it would have
a working price of 10.06.\11\ In this scenario, the Exchange proposes
to adjust its calculation of the PBBO to be 10.06 x 10.07 and use this
updated PBBO for execution, routing, and re-pricing determinations,
including repricing the ALO ``1'' to buy to both work and display at
its limit price of 10.06.
---------------------------------------------------------------------------

    \11\ See Rule 7.31(e)(3)(D)(ii). Currently, the Exchange would
display such Day ISO ALO ``2'' at 10.06 and would adjust its
calculation of the same-side PBBO and reprice same-side resting
orders to the Day ISO price, but would not adjust its calculation of
the contra-side PBBO for purposes of routing and execution
determinations of new orders.
---------------------------------------------------------------------------

    The Exchange believes that adjusting the PBBO in this manner is
consistent with Regulation NMS because the member organization that
submitted the

Day ISO ALO to buy priced at 10.07 has represented that it has sent
ISOs to trade with protected offers on other exchanges priced at 10.07
or lower. The only reason that such order would not be displayed at
10.07 on the Exchange is because it has an ALO modifier and cannot
trade with the Exchange's displayed offer of 10.07. However, there is
no restriction on that Day ISO ALO being displayed at 10.06, which
crosses the Away Market PBO of 10.05. The Exchange believes in this
circumstance, it is consistent with Regulation NMS for the Exchange to
consider that any Away Market protected offers priced 10.07 or below
have been cleared and therefore adjust its calculation of the contra-
side Away Market PBBO for purposes of execution, routing, and repricing
determinations based on the limit price of the Day ISO ALO.
    The Exchange believes that the proposed amendments to Rule 7.37(e)
would promote clarity and transparency in the Exchange's rules
regarding circumstances when the Exchange may adjust its calculation of
the PBBO. The Exchange does not believe this proposed rule change is
novel. Rather, the Exchange believes that other equity exchanges that
accept Day ISOs similarly adjust their calculation of the best
protected bid and best protected offer for purposes of making
execution, routing, and repricing determinations based on the receipt
of Day ISOs, as described above. The Exchange anticipates that it will
implement the technology change to how it calculates the PBBO in May
2021.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\12\ in general, and furthers the objectives of
Sections 6(b)(5) of the Act,\13\ in particular, because it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to, and perfect the mechanisms of,
a free and open market and a national market system and, in general, to
protect investors and the public interest and because it is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because it is designed to promote clarity and
transparency in Exchange rules of when the Exchange may adjust its
calculation of the PBBO. The Exchange believes that adjusting its
calculation of the PBBO based on receipt of a Day ISO is consistent
with Regulation NMS because the member organization that entered such
Day ISO has also sent ISOs to Away Markets to trade with contra-side
protected quotations priced equal to or better than the Day ISO. For
the same reasons that displaying a Day ISO at a price that locks or
crosses the PBBO is consistent with Regulation NMS, the Exchange
believes that adjusting its calculation of the PBBO based on receipt
and display of a Day ISO for purposes of making execution, routing, and
repricing determinations for other orders is also consistent with
Regulation NMS. The Exchange further notes that the proposed rule text
is not novel and is based on MEMX Rule 13.4(b) and is consistent with
Nasdaq rules and the BZX Filing.

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

    In accordance with Section 6(b)(8) of the Act,\14\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule changes are designed to promote
transparency and clarity in Exchange rules regarding when the Exchange
may adjust its calculation of the PBBO. The Exchange believes that the
proposed rule change would promote competition because the Exchange
proposes to adjust its calculation of the PBBO under similar
circumstances that other equity exchanges adjust their calculation of
the PBBO, including MEMX, Nasdaq, and BZX.
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    \14\ 15 U.S.C. 78f(b)(8).
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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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\
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 prior to
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \17\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSE-2021-21 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-NYSE-2021-21. 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-
NYSE-2021-21, and should be submitted on or before April 28, 2021.
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    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-07114 Filed 4-6-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: September 16, 2010 (Volume 75, Number 179)]
[Notices]
[Page 56651-56652]
[DOCID:fr16se10-115]

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DEPARTMENT OF TRANSPORTATION

ITS Joint Program Office; Trucking Industry Mobility & Technology
Coalition Annual Meeting

AGENCY: Research and Innovative Technology Administration, U.S.
Department of Transportation.

ACTION: Notice.

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    The Trucking Industry Mobility & Technology Coalition (TIMTC)
Annual

Meeting will be held October 18-19, 2010 in conjunction with ATA's
Management Conference & Exhibition in Phoenix, providing TIMTC members
with the opportunity to participate in both events simultaneously.
TIMTC is a U.S. DOT-sponsored forum for public and private sector
stakeholders that are focused on the latest in truck technology and
productivity initiatives. TIMTC members will convene in Phoenix this
October for business and educational meetings focused on today's top
issues including: Truck IntelliDrive: Beating Gridlock with a Smart
Grid; U.S. DOT Truck Technology Initiatives; and State and Federal
Reauthorization Objectives.
    Confirmed speakers include: Anne Ferro, FMCSA Administrator; Jeff
Lindley, FHWA Associate Administrator for Operations; Allen Biehler,
Secretary of Transportation, Commonwealth of Pennsylvania; David
Parker, Senior Legal Counsel, Great West Casualty; and other top
industry executives.
    For more information and your free registration for the TIMTC
Annual Meeting, please contact Carla Schulz at<PHONE_NUMBER> or
<EMAIL_ADDRESS>Not yet a member of TIMTC? Membership is free and
provides the latest information and updates on trucking industry
initiatives that improve the industry's safety and mobility. Send your
contact information to<EMAIL_ADDRESS>to receive your free
membership.

    Issued in Washington, DC, on the 9th day of September 2010.
John Augustine,
Managing Director, ITS Joint Program Office.
[FR Doc. 2010-22962 Filed 9-15-10; 8:45 am]
BILLING CODE 4910-HY-P