[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Notices]
[Pages 55667-55676]
[FR Doc No: 2017-25233]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82102; File No. SR-CBOE-2017-070]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of a Proposed Rule Change Relating to Rule 6.56

November 16, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 3, 2017, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe'') 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 Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange seeks to amend Rule 6.56. The text of the proposed
rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's
Office of the Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 6.56 (Compression Forums) to:
(1) Modify the compression-list positions file to include positions
with multiple legs; (2) provide for the creation of a new multi-leg-
position file; and (3) modify the time by which TPHs must provide
compression-list positions. This proposal is intended to make it easier
for TPHs to efficiently close positions in series of SPX options at the
end of each calendar month in order to mitigate the effects of capital
constraints on market participants and help ensure continued depth of
liquidity in the SPX options market.
Modifications to the Compression-List Position File
    Under current Rule 6.56, on the final three business days of each
calendar month, the Exchange holds compression forums in the SPX
trading crowd. Beforehand, in order to facilitate TPHs finding
counterparty offsets against which they can trade closing positions,
TPHs may submit lists of existing SPX positions to the Exchange that
they wish to close during a compression forum (``compression-list
positions''). Prior to the open of trading on the third-to-last
business day of each calendar month (i.e. the first day of the month on
which a compression forum is held), the Exchange makes available to all
TPHs on its Web site a list including each series for which both long
and short compression-list positions have been submitted to the
Exchange (``compression-list positions file''). In addition, TPHs that
submit compression-list positions to the Exchange receive a
compression-list positions file containing the names of the TPHs that
contributed to the file (and did not opt out of being identified as
contributors), including contact information for each TPH's designated
point of contact. The Exchange then holds open outcry ``compression
forums'' in which all TPHs may participate, whether or not they
submitted positions for inclusion in the compression-list position
file.
    The Exchange proposes to amend Rule 6.56 to enhance the
effectiveness and utility of its compression forums process for market
participants. Specifically, the Exchange seeks to modify the
compression-list positions file to include positions with multiple
legs. For example, the Exchange proposes to group compression-list
positions into common multi-leg options strategies and include the
multi-leg positions in the compression-list position file.
Specifically, the Exchange proposes to use the list of individual
series to create a list of all possible vertical call spreads,\3\
vertical put spreads,\4\ and box spreads \5\ (common multi-leg options
strategies). The box spreads will be derived from the aforementioned
call and put spreads where there is both a long and short position
(i.e., offsetting interest). The Exchange emphasizes the fact that the
Exchange is proposing to compile a list of all possible vertical call
spreads, vertical put spreads, and box spreads. The Exchange is
proposing to specify in proposed Interpretation and Policy .01 to Rule
6.56 that for purposes of Rule 6.56 multi-leg positions will include
vertical call spreads, vertical put spreads, and box spreads. Files
generated by the Exchange pursuant to Rule 6.56 are provided to TPHs
for informational purposes only. Individual TPHs determine whether to
submit compression-list positions; whether to participate in the
compression forum process; and whether to represent orders on the
trading floor. The Exchange's provision of the list does not constitute
advice, guidance, a commitment to trade, an execution, or a
recommendation to trade.
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    \3\ A vertical call spread involves the purchasing and selling
of an equal number of call options with the same expiration date but
different strike prices. For example, buying 100 DEC 2040 calls and
selling 100 DEC 2070 calls.
    \4\ A vertical put spread involves the purchasing and selling of
an equal number of put options with the same expiration date but
different strike prices. For example, buying 100 DEC 2040 puts and
selling 100 DEC 2070 puts.
    \5\ A box spread involves purchasing (selling) a bull call
spread and purchasing (selling) a bear put spread. In other words, a
box spread is composed of a long (short) call and short (long) put
position at one strike price and a short (long) call and long
(short) put position at another strike price. For example, a box
spread would be entered by purchasing 100 DEC 2040 calls and selling
100 DEC 2070 calls (i.e., bull call spread) and selling 100 DEC 2040
puts and purchasing 100 DEC 2070 puts (i.e., bear put spread).
---------------------------------------------------------------------------

Example #1
     TPH A submits the following positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Long.
12/21/2017.......................  C                                  2700              50  Short.
----------------------------------------------------------------------------------------------------------------

     TPH B submits the following positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/15/2017.......................  C                                  2400              50  Short.
12/15/2017.......................  C                                  2700              50  Long.
----------------------------------------------------------------------------------------------------------------

     The Exchange will not identify any multi-leg positions
with offsetting interest because the expiration dates of TPH A's
positions do not match the expiration dates of TPH B's positions.
Example #2
     TPH A submits the following positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Long.
12/21/2017.......................  C                                  2700             100  Short.
----------------------------------------------------------------------------------------------------------------

     TPH B submits the following positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Short.
12/21/2017.......................  C                                  2700             100  Long.
----------------------------------------------------------------------------------------------------------------

     The Exchange will identify a vertical call spread because
the expiration dates of TPH A's positions and TPH B's position match to
create a vertical call spread with two parties (TPH A and B) that have
opposite positions (i.e., the parties have offsetting interest).
However, a vertical call spread requires the purchase and sale of the
same number of options contracts; thus, even though there are 100 of
the 2700 calls in Example #2 the Exchange will identify a vertical call
spread with total possible offsetting interest of 50 contracts.
     In this example, the compression-list position file
distributed to all TPHs would include the following information (not
necessarily representative of the exact format) for both single series
positions (i.e., information currently provided in the compression-list
position file) and the multi-leg positions:
     Single series positions with the size of possible
offsetting interest:

----------------------------------------------------------------------------------------------------------------
                 Expiration                                Call/put                   Strike         Possible
----------------------------------------------------------------------------------------------------------------
12/21/2017..................................  C                                             2400              50
12/21/2017..................................  C                                             2700             100
----------------------------------------------------------------------------------------------------------------

     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2         Possible
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

Example #3
     If in Example #2 the positions were puts instead of calls,
the compression-list position file distributed to all TPHs would
include the following information (not necessarily representative of
the exact format) for both single series positions (i.e., information
currently provided in the compression-list position file) and the
multi-leg positions:
     Single series positions with size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                 Expiration                                Call/put                   Strike         Possible
----------------------------------------------------------------------------------------------------------------
12/21/2017..................................  P                                             2400              50
12/21/2017..................................  P                                             2700             100
----------------------------------------------------------------------------------------------------------------

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2         Possible
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

Example #4
     TPH A submits the following positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Long.
12/21/2017.......................  C                                  2700             100  Short.
12/21/2017.......................  P                                  2400              50  Short.
12/21/2017.......................  P                                  2700             100  Long.
----------------------------------------------------------------------------------------------------------------

     TPH B submits the following positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Short.
12/21/2017.......................  C                                  2700             100  Long.
12/21/2017.......................  P                                  2400              50  Long.
12/21/2017.......................  P                                  2700             100  Short.
----------------------------------------------------------------------------------------------------------------

     The Exchange will identify a vertical call spread (2400
calls and 2700 calls) and a vertical put spread (2400 puts and 2700
puts). Again, each vertical call spread and each vertical put spread
requires the purchase and sale of the same number of options contracts;
thus, even though the 2700 calls and puts have 100 contracts, the
Exchange will identify a vertical call spread with total possible
offsetting interest of 50 contracts and a vertical put spread with
total possible offsetting interest of 50 contracts.
     In addition to the vertical call spreads and vertical put
spreads, the Exchange will also identify a box spread. TPH A's position
is a box spread (long 2400 calls, short 2400 puts, short 2700 calls,
and long 2700 puts) that is potentially offset by TPH B's position
(short 2400 calls, long 2400 puts, long 2700 calls, and short 2700
puts), which represents an opposite interest box spread. Again, as with
vertical call spreads and vertical put spreads, the total possible
offsetting interest is limited to 50 contracts.
     In this example, the compression-list position file
distributed to all TPHs would include the following information (not
necessarily representative of the exact format) for both single series
positions (i.e., information currently provided in the compression-list
position file) and the multi-leg positions:
     Single series positions with the size of possible
offsetting interest:

----------------------------------------------------------------------------------------------------------------
                 Expiration                                Call/put                   Strike         Possible
----------------------------------------------------------------------------------------------------------------
12/21/2017..................................  C                                             2400              50
12/21/2017..................................  C                                             2700             100
12/21/2017..................................  P                                             2400              50
12/21/2017..................................  P                                             2700             100
----------------------------------------------------------------------------------------------------------------

     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Box spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

    As previously noted a box spread is composed of a long (short) call
and short (long) put position at one strike price and a short (long)
call and long (short) put position at another strike price. In Example
#4 above, identifying the two strike prices of a box spread necessarily
means that there is a TPH that is long the 2400 call, short the 2400
put, short the 2700 call, and long the 2700 put and at least one other
TPH has the opposite position (i.e., short the 2400 call, long the 2400
put, long the 2700 call, and short the 2700 put).
    As demonstrated above, in addition to providing the offsetting
interest for each individual series the Exchange is proposing to add
additional information to the compression-list positions file related
to multi-leg positions (i.e., the aforementioned vertical call spreads,
vertical put spreads, and box spreads). Currently, only a fraction of
the two-sided interest available to be offset is actually being offset.
This is due, in part, to the compression-list position file containing
only the offsetting interest for each individual series. TPHs currently
seeking to close such single series positions must then execute each
series individually or attempt to identify multi-leg positions
comprised of individual series. Closing positions on an individual
series basis is less advantageous because closing a single series may
change a TPHs risk profile. Closing multi-leg positions is advantageous
because such positions can be risk neutral, which means the closing of
the entire multi-leg position has little or no impact on a TPHs risk
profile. However, in the current compression forum framework TPHs
seeking to close multi-leg positions must undertake a burdensome
process of divulging their individual positions in an attempt to
identify multi-leg positions that have offsetting interest. The process
is time-consuming, inefficient, and devoid of the anonymity TPHs
desire, making the use of multi-leg orders to close positions difficult
and ineffective. The Exchange believes that providing TPHs with a way
to identify multi-leg positions with offsetting interest will enable
efficient closing of such positions.
Example #5
     In addition to the positions submitted by TPH A in Example
#4 TPH A also submits the below position:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2800               0  Short.
----------------------------------------------------------------------------------------------------------------

     In addition to the positions submitted by TPH B in Example
#4 TPH B also submits the below position:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put            Strike 2          Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2800              50  Long.
----------------------------------------------------------------------------------------------------------------

     The Exchange will use the 2400 calls multiple times to
identify all possible combinations of vertical call spreads, vertical
put spreads, and boxes. In this example, the 2400 calls can be used
multiple times to create multiple possible vertical call spreads, thus,
the following information (not necessarily representative of the exact
format) for both single series positions (i.e., information currently
provided in the compression-list position file) and the multi-leg
positions:
     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                           Expiration                                Strike 1        Strike 2          Size
----------------------------------------------------------------------------------------------------------------
12/21/2017......................................................            2400            2700              50
12/21/2017......................................................            2400            2800            * 50
----------------------------------------------------------------------------------------------------------------
* Additional position identified due to the 2800 calls.

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Box spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

New Individualized Multi-Leg Position File
    In order to further encourage TPHs to submit compression-list
positions to the Exchange and to allow the Exchange to provide
information that will enable TPHs to represent multi-leg positions in
compression forums that have offsetting interest and thus more
efficiently and effectively close positions via compression forums, the
Exchange also seeks to create an additional position file containing
individualized multi-leg positions (``multi-leg position file'').
Specifically, the Exchange seeks to amend paragraph (a)(4) to Rule 6.56
to provide that in addition to making available to all Trading Permit
Holders a compression-list positions file composed of individual series
with offsetting interest and multi-leg positions with offsetting
interest (as proposed and described above), the Exchange will
electronically send an individualized multi-leg positions file to each
Trading Permit Holder that submitted compression-list positions to the
Exchange pursuant to paragraph (a)(1). Paragraph (a)(4) will also
provide that the individualized multi-leg position file will include: A
complete list of all possible combinations of offsetting multi-leg
positions that are composed of series the individual Trading Permit
Holder submitted as part of a compression-list position; a unique
identification number for each multi-leg position (``PID'') that will
enable the TPH to identify particular multi-leg positions for purposes
of proposed paragraph (a)(5), which is discussed below in relation to
disclosing the identities of TPHs; the series that make up the multi-
leg position; and the offsetting size of the multi-leg position against
other Trading Permit Holders on an individualized and anonymous basis.
Example #6
     TPH A submits the below positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Long.
12/21/2017.......................  C                                  2700             100  Short.
12/21/2017.......................  P                                  2400              50  Short.
12/21/2017.......................  P                                  2700             100  Long.
----------------------------------------------------------------------------------------------------------------

     TPH B submits the below positions to the Exchange:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Short.
12/21/2017.......................  C                                  2700             100  Long.
12/21/2017.......................  P                                  2400              50  Long.
12/21/2017.......................  P                                  2700             100  Short.
----------------------------------------------------------------------------------------------------------------

     The compression-list position file distributed to all TPHs
would include the following information (not necessarily representative
of the exact format) for both single series positions (i.e.,
information currently provided in the compression-list position file)
and the multi-leg positions:
     Single series positions with the size of possible
offsetting interest:

----------------------------------------------------------------------------------------------------------------
                 Expiration                                Call/put                   Strike         Possible
----------------------------------------------------------------------------------------------------------------
12/21/2017..................................  C                                             2400              50
12/21/2017..................................  C                                             2700             100
12/21/2017..................................  P                                             2400              50
12/21/2017..................................  P                                             2700             100
----------------------------------------------------------------------------------------------------------------

     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Box spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                          Expiration                               Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
12/21/2017...................................................            2400             2700               50
----------------------------------------------------------------------------------------------------------------

     TPH A's individualized position file would include the
following multi-leg position information (not necessarily
representative of the exact format):
     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
1...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
2...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Box spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
3...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

     TPH B's individualized position file would include the
following multi-leg position information (not necessarily
representative of the exact format):
     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
1...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
2...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Box spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
3...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

Example #7
     In addition to TPH A and TPH B's positions in Example #6,
TPH C submits the below position:

----------------------------------------------------------------------------------------------------------------
            Expiration                     Call/put             Strike           Size            Long/short
----------------------------------------------------------------------------------------------------------------
12/21/2017.......................  C                                  2400              50  Short.
12/21/2017.......................  C                                  2700             100  Long.
----------------------------------------------------------------------------------------------------------------

     TPH B's individualized position file noted in Example #6
would remain the same because TPH A still remains the only contra-party
with offsetting interest.
     The Exchange will use TPH A's positions multiple times to
identify all possible contra-parties with offsetting interest. In this
example, TPH A's 2400/2700 vertical call spread has multiple possible
contra-parties. Thus, TPH A's

individualized position file would include the following multi-leg
position information (not necessarily representative of the exact
format):
     Call spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                       PID                          Expiration       Strike 1        Strike 2          Size
----------------------------------------------------------------------------------------------------------------
1...............................................      12/21/2017            2400            2700              50
4...............................................      12/21/2017            2400            2700            * 50
----------------------------------------------------------------------------------------------------------------
* Additional position identified due to the additional contra-party.

     Put spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
2...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

     Box spread positions with the size of possible offsetting
interest:

----------------------------------------------------------------------------------------------------------------
                     PID                         Expiration        Strike 1         Strike 2           Size
----------------------------------------------------------------------------------------------------------------
3...........................................      12/21/2017             2400             2700               50
----------------------------------------------------------------------------------------------------------------

    The purpose of grouping individual series into multi-leg positions
is to allow TPHs to efficiently and effectively identify multi-leg
positions with offsetting interest in order for TPHs to represent
multi-leg orders in compression forums. If a TPH does not receive an
individualized multi-leg position file from the Exchange the TPH will
be less able to efficiently and effectively identify which of their
individual series positions can and should be grouped together to be
represented in the compression forum. Even a compression-list position
file that contains multi-leg positions is not effective without an
individualized list because it is an individualized list that will
allow a TPH to easily identify their particular multi-leg positions
that can be represented in a compression forum in an efficient and
effective manner.
    The Exchange proposes to condition receipt of individualized multi-
leg position files on a TPH's submission of compression-list positions.
The Exchange believes the condition will encourage TPHs to submit
compression-list positions, which helps to encourage TPHs to close
positions via the compression forum.
TPH Identity Disclosures
    The Exchange also seeks to add paragraph (a)(5) to give TPHs the
opportunity to identify themselves as having a particular multi-leg
position. Pursuant to proposed paragraph (a)(5), TPHs will have the
opportunity to give the Exchange permission (on a multi-leg position by
multi-leg position basis--enabled by the PID unique to each identified
multi-leg position) to share the TPH's identity with the contra-party
for each multi-leg position and vice versa.
    To illustrate, in Example #5 above TPH A has three multi-leg
positions that have a potential contra-party with offsetting interest
(in this example TPH B). TPH A has the option--for PID #1, PID #2, and/
or PID #3--to direct the Exchange to disclose TPH A's identity to the
potential contra-party for each particular multi-leg position. If, for
example, TPH A instructed the Exchange to disclose their identity to
the potential contra-party for PID #3, but not PID #1 or #2, the
Exchange would notify TPH B that the potential contra-party for TPH B's
PID #3 is willing to disclose their identity to TPH B if TPH B agrees
to disclose their identity to the contra-party to PID #3. In short, if
TPH A and B mutually agree to disclose their identities to the other
party for purposes of PID #3, the Exchange will disclose the
information. In the event that TPH B does not want their identity
disclosed, the Exchange will not disclose any identifying information
to either party.
    As noted above, each TPH and contra-party each have to agree to
reveal their identity before the Exchange can provide the information
to the TPH and contra-party. The Exchange believes providing a process
by which individual TPHs with offsetting multi-leg positions may
identify each other will enable TPHs utilizing that process to more
easily identify potential counterparties during the compression forums,
which encourages a more efficient and effective compression forum
process. The Exchange notes that TPHs currently have the ability to
identify themselves for purposes of the compression-list positions
file.\6\ Although Rule 6.56(a)(3) does not currently allow the Exchange
to disclose a TPH's identity in relation to a specific position listed
on the compression-list position file, the restriction was solely
designed to alleviate concerns from TPHs that the Exchange's
publication of the compression-list position file would publically
disclose the individual positions of every TPH submitting compression-
list positions. The Exchange is not proposing to modify the restriction
in Rule 6.56(a)(3); thus, the compression-list position file that is
publically disclosed will not identify any TPH as having a specific
position. Rather, the Exchange is proposing to allow TPHs to opt-in to
a process that will disclose their identity to the contra-party for a
specific multi-leg position, but only if the parties mutually agree to
do so for the specific multi-leg position. TPHs can make the commercial
decision not to opt-in to the process. The Exchange notes that
providing the ability for TPHs to opt-in to the proposed process is
similar to the manner in which TPHs have the ability to opt-out of
identifying themselves on the compression-list positions file.\7\
---------------------------------------------------------------------------

    \6\ See Rule 6.56(a)(3).
    \7\ See Rule 6.56(a)(3), which provides, in part, that ``the
Exchange will electronically send the compression-list positions
file to the Trading Permit Holders that submitted compression-list
positions to the Exchange pursuant to paragraph (a)(1), including a
list of those Trading Permit Holders that contributed to the
compression-list positions file. The list will not include the name
of any Trading Permit Holder that requests its name be excluded from
this list.''

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

    The Exchange also proposes to determine the deadlines by which TPHs
must grant the Exchange permission to disclose their identities with
regards to specific multi-leg positions. The deadlines are necessary to
allow the Exchange to begin and complete the notification process.
    Importantly, the Exchange is unaware of any regulatory restriction
that would prevent TPHs from publically disclosing their entire
position book in an effort to find potential counterparties with
offsetting interest. In fact, TPHs can and do share position level
information today. It is standard practice for TPHs to request quotes,
seek indications of interest, and solicit parties to trade (via the
trading crowd, electronic messaging systems, telephone, etc.) when
seeking liquidity for a particular position. The Exchange's role and
the design of Rule 6.56 (e.g., providing TPHs the option to opt-in to
the information sharing process or even submit compression-list
positions to the Exchange in the first instance) helps to alleviate the
commercial concerns of TPHs, which helps to encourage TPH participation
in compression forums and ultimately the closing of open positions.
Furthermore, the proposal has no effect on the manner in which TPHs
will represent orders on the trading floor. The position level
information will simply allow TPHs to more effectively and efficiently
identify other TPHs on the trading floor that have a particular
offsetting position. TPHs must represent orders on the trading floor,
and TPHs that do not submit compression-list positions have the
opportunity to respond to the orders represented on the trading floor,
including orders represented in compression forums.
    The Exchange notes that all transactions must be effected in
accordance with applicable trading rules, must be subject to risk of
the market, and must be reported for dissemination. In addition, TPHs
are reminded that Section 9(a)(1) of the Act provides in relevant part
that it shall be unlawful for any member of a national securities
exchange, for the purpose of creating a false or misleading appearance
of active trading in any security registered on a national securities
exchange or a false or misleading appearance with respect to the market
for any such security, (A) to effect any transaction in such security
which involves no change in the beneficial ownership thereof, or (B) to
enter an order or orders for the purchase of such security with the
knowledge that an order or orders substantially the same size, at
substantially the same time, and at substantially the same price, for
the sale of any such security, has been or will be entered by or for
the same or different parties. Furthermore, under the Exchange's policy
concerning prearranged trading, TPHs are cautioned that any purchase or
sale, transaction or series of transactions, coupled with an agreement,
arrangement or understanding, directly or indirectly to reverse such
transaction which is not done for a legitimate economic purpose or
without subjecting the transactions to market risk, violates Exchange
Rules and may be inconsistent with various provisions of the Act and
rules thereunder.\8\
---------------------------------------------------------------------------

    \8\ See Cboe Regulatory Circular RG17-085.
---------------------------------------------------------------------------

    TPHs receiving individualized multi-leg position lists will still
be required to represent orders on the trading floor in accordance with
existing trading rules and thereby expose orders to the risk of the
market. The Exchange notes that the provision in Rule 6.56(c) is not
intended as an absolute safe harbor from prearranged trading
prohibitions, but is instead intended to provide that transacting
through a compression forum (consistent with open outcry transactions
generally) will not be deemed to be prearranged trading provided that
the transaction is otherwise executed in accordance with Exchange
Rules, including the policy concerning prearranged trading.
Deadline To Submit Compression-List Positions
    Paragraph (a)(1) of Rule 6.56 currently provides that prior to the
close of Regular Trading Hours (i.e., 3:15 p.m. Chicago time) on the
fourth to last business day of each calendar month, a Trading Permit
Holder may provide the Exchange with a list of open SPX options
positions that it would like to close through the compression forum for
that calendar month (``compression-list positions''). The Exchange is
proposing to extend the deadline to 4:30 p.m. Chicago time. TPHs have
missed the 3:15 p.m. cutoff in the past, and the Exchange believes
expanding the deadline to 4:30 p.m. Chicago time will give TPHs the
time necessary after the end of the trading day to submit compression-
list positions to the Exchange.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\9\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settlpreing [sic], processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. Additionally, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \11\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that its proposal is
consistent with the Act in that it seeks to foster liquidity in the SPX
options market in light of the bank regulatory capital requirements.
The Exchange believes bank regulatory capital requirements could
potentially limit the amount of capital clearing TPHs can allocate to
their clients' transactions, which in turn, may impact liquidity,
particularly in the SPX market. The Exchange believes the proposal
encourages TPHs to close positions via the compression process by
providing information regarding multi-leg positions that will enable
TPHs to more efficiently and effectively close positions via the
compression forums, which, in general, helps to protect investors and
the public interest because closing positions via the compression
process serves to alleviate the adverse impact of bank capital
requirements.
    In addition, the proposed rule change is not designed to permit
unfair discrimination between customers, issuers, brokers, or dealers
because the compression forum process is open to all TPHs and
completely voluntary. Individual TPHs determine whether to submit
compression-list positions; whether to participate in the compression
forum process; and whether to represent orders on the trading floor.
The Exchange's provision of the list does not constitute advice,
guidance, a commitment to trade, an execution, or a recommendation to
trade. Rather, files generated by the Exchange pursuant to Rule 6.56
are provided to TPHs for informational purposes only. Aiding TPHs
efforts to identify offsetting multi-leg positions helps TPHs close
positions and thereby

helps mitigate the effects of bank capital requirements. Mitigating the
effects of bank capital requirements helps to promote continued
liquidity provision by the market-making community, which serves to
protect investors and the public interest by helping to ensure
liquidity continues to be available to investors. Each individualized
multi-leg position file will be customized only in that each
individualized list will be unique to the positions submitted by the
individual TPH. In short, each individual multi-leg position list may
contain different information because each individual TPH's positions
are different. The individual multi-leg position lists will not be
different based on any of the Exchange's processes. The Exchange is not
raking positions but is instead compiling lists of all possible
combinations of multi-leg positions (defined as vertical call spread,
vertical put spreads, and boxes), and as previously noted, the
Exchange's provision of the list does not constitute advice, guidance,
a commitment to trade, an execution, or a recommendation to trade.
Again, the multi-leg position files are provided to TPHs for
informational purposes only. Finally, TPHs are not required to
participate in the compression forum process. To the extent TPHs
participate, compression forums are conducted in a non-discriminatory
manner, which is also consistent with the Act. Furthermore, this
proposed rule change does not amend rules related to open outcry
trading, prearranged trading, solicitation orders, etc. The manner in
which orders must be represented on the trading floor is unaffected by
this proposed rule change.
    Importantly, the Exchange is unaware of any regulatory restriction
that would prevent TPHs from publically disclosing their entire
position book in an effort to find potential counterparties with
offsetting interest. In fact, TPHs can and do share position level
information today. It is standard practice for TPHs to request quotes,
seek indications of interest, and solicit parties to trade (via the
trading crowd, electronic messaging systems, telephone, etc.) when
seeking liquidity for a particular position. The Exchange's role and
the design of Rule 6.56 (e.g., providing TPHs the option to opt-in to
the information sharing process or even submit compression-list
positions to the Exchange in the first instance) helps to alleviate the
commercial concerns of TPHs, which helps to encourage TPH participation
in compression forums and ultimately the closing of open positions.
Furthermore, the proposal has no effect on the manner in which TPHs
will represent orders on the trading floor. The position level
information will simply allow TPHs to more effectively and efficiently
identify other TPHs on the trading floor that have a particular
offsetting position. TPHs must represent orders on the trading floor,
and TPHs that do not submit compression-list positions have the
opportunity to respond to the orders represented on the trading floor,
including orders represented in compression forums.
    The Exchange notes that all transactions must be effected in
accordance with applicable trading rules, must be subject to risk of
the market, and must be reported for dissemination. In addition, TPHs
are reminded that Section 9(a)(1) of the Act provides in relevant part
that it shall be unlawful for any member of a national securities
exchange, for the purpose of creating a false or misleading appearance
of active trading in any security registered on a national securities
exchange or a false or misleading appearance with respect to the market
for any such security, (A) to effect any transaction in such security
which involves no change in the beneficial ownership thereof, or (B) to
enter an order or orders for the purchase of such security with the
knowledge that an order or orders substantially the same size, at
substantially the same time, and at substantially the same price, for
the sale of any such security, has been or will be entered by or for
the same or different parties. Furthermore, under the Exchange's policy
concerning prearranged trading, TPHs are cautioned that any purchase or
sale, transaction or series of transactions, coupled with an agreement,
arrangement or understanding, directly or indirectly to reverse such
transaction which is not done for a legitimate economic purpose or
without subjecting the transactions to market risk, violates Exchange
Rules and may be inconsistent with various provisions of the Act and
rules thereunder.\12\
---------------------------------------------------------------------------

    \12\ See Cboe Regulatory Circular RG17-085.
---------------------------------------------------------------------------

    TPHs receiving individualized multi-leg position lists will still
be required to represent orders on the trading floor in accordance with
existing trading rules and thereby expose orders to the risk of the
market. The Exchange notes that the provision in Rule 6.56(c) is not
intended as an absolute safe harbor from prearranged trading
prohibitions, but is instead intended to provide that transacting
through a compression forum (consistent with open outcry transactions
generally) will not be deemed to be prearranged trading provided that
the transaction is otherwise executed in accordance with Exchange
Rules, including the policy concerning prearranged trading.

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

    Cboe does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change would
encourage the closing of positions, which, once closed, may serve to
alleviate the capital requirement constraints on TPHs and improve
overall market liquidity by freeing capital currently tied up in
certain SPX positions. The Exchange does not believe that the proposed
rule changes will impose any burden on intermarket competition that is
not necessary or appropriate in furtherance of the purposes of the Act
because the proposed rule change applies only to the trading of SPX
options, which are exclusively-listed on Cboe. To the extent that the
proposed changes make the Exchange a more attractive marketplace for
market participants at other exchanges, such market participants are
eligible to participant through Cboe TPHs. Furthermore, participation
in compression forums is completely voluntary and open to all TPHs.
Lastly, sharing of position level information is also completely
voluntary.

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

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

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

    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 Exchange consents, the Commission will:
    A. By order approve or disapprove such proposed rule change, or
    B. institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,

including whether the proposed rule change is consistent with the Act.
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CBOE-2017-070 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2017-070. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2017-070 and should be
submitted on or before December 13, 2017.

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

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

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25233 Filed 11-21-17; 8:45 am]
 BILLING CODE P


[Federal Register: May 28, 2010 (Volume 75, Number 103)]
[Rules and Regulations]
[Page 29894-29897]
[DOCID:fr28my10-7]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2010-0320; FRL-9156-1]

Approval and Promulgation of Air Quality Implementation Plans;
District of Columbia; Transportation Conformity Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: EPA is taking direct final action to approve revisions to the
District of Columbia State Implementation Plan (SIP). The revisions
establish general and transportation conformity regulations for the
District of Columbia. EPA is approving these revisions in accordance
with the requirements of the Clean Air Act.

DATES: This rule is effective on July 27, 2010 without further notice,
unless EPA receives adverse written comment by June 28, 2010. If EPA
receives such comments, it will publish a timely withdrawal of the
direct final rule in the Federal Register and inform the public that
the rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2010-0320 by one of the following methods:
    A. http://www.regulations.gov, Follow the on-line instructions for
submitting comments.
    B. E-mail<EMAIL_ADDRESS>    C. Mail: EPA-R03-OAR-2010-0320, Cristina Fernandez, Associate
Director, Office of Air Planning Programs, Mailcode 3AP30, U.S.
Environmental Protection Agency, Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
    D. Hand Delivery: At the previously-listed EPA Region III address.
Such deliveries are only accepted during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2010-0320. EPA's policy is that all comments received will be included
in the public docket without change, and may be made available online
at http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through http://
www.regulations.gov or e-mail. The http://www.regulations.gov Web site
is an anonymous access system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
    Docket: All documents in the electronic docket are listed in the
http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in http://
www.regulations.gov or in hard copy during normal business hours at the
Air Protection Division, U.S. Environmental Protection Agency, Region
III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the
State submittal are available at the District of Columbia District
Department of the Environment, Air Quality Division, 51 N Street, NE.,
Fifth Floor, Washington, DC 20002.

FOR FURTHER INFORMATION CONTACT: Martin Kotsch,<PHONE_NUMBER>, or by
e-mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.

SUPPLEMENTARY INFORMATION:

I. What is transportation conformity?

    Transportation conformity is required under Section 176(c) of the
Clean Air Act to ensure that Federally supported highway, transit
projects, and other activities are consistent with (conform to) the
purpose of the SIP. Conformity currently applies to areas that are
designated nonattainment, and those redesignated to attainment after
1990 (maintenance areas), with plans developed under section 175A of
the Clean Air Act for the following transportation related criteria
pollutants: ozone, particulate matter (PM2.5 and
PM10), carbon monoxide (CO), and nitrogen dioxide
(NO2). Conformity to the purpose of the SIP means that
transportation activities will not cause new air quality violations,
worsen existing violations, or delay timely attainment of the relevant

national ambient air quality standards (NAAQS). The transportation
conformity regulation is found in 40 CFR part 93 and provisions related
to conformity SIPs are found in 40 CFR 51.390.

II. What is the background for this action?

    On August 10, 2005, the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) was signed
into law. SAFETEA-LU revised certain provisions of section 176(c) of
the Clean Air Act, related to transportation conformity. Prior to
SAFETEA-LU, States were required to address all of the Federal
conformity rule's provisions in their conformity SIPs. After SAFETEA-
LU, State's SIPs were required to contain all or portions of only the
following three sections of the Federal rule, modified as appropriate
to each State's circumstances: 40 CFR 93.105 (consultation procedures);
40 CFR 93.122(a)(4)(ii) (written commitments to implement certain kind
of control measures); and 40 CFR 93.125(c) (written commitments to
implement certain kinds of mitigation measures). States are no longer
required to submit conformity SIP revisions that address the other
sections of the Federal conformity rule.

III. What did the state submit and how did we evaluate it?

    On January 26, 2010, the District of Columbia Department of the
Environment submitted a revision to its SIP for general and
transportation conformity regulations adopted on January 8, 2010. The
portion of the SIP dealing with general conformity is strictly a
recodification of its previously approved general conformity regulation
from Chapter 4 of the District of Columbia Regulations (DCMR) to
Chapter 15 and contains no substantial changes from its previous
approval. The SIP revision section for transportation conformity
addresses the three provisions of the EPA Conformity Rule required
under SAFETEA-LU: 40 CFR 93.105 (consultation procedures); 40 CFR
93.122(a)(4)(ii) (control measures), and 40 CFR 93.125(c) (mitigation
measures).
    We reviewed the submittals to assure consistency with the February
14, 2006 ``Interim Guidance for Implementing the Transportation
Conformity provisions in the SAFETEA-LU.'' The guidance document can be
found at http://epa.gov/otaq/stateresources/transconf/policy.htm. The
guidance document states that each State is only required to address
and tailor the afore-mentioned three sections of the Federal Conformity
Rule to be included in their State conformity SIPs. EPA's review of the
District of Columbia's proposed SIP revision indicates that it is
consistent with EPA's guidance in that it includes the three elements
specified by SAFETEA-LU. Consistent with the EPA Conformity Rule at 40
CFR 93.105 (consultation procedures), Title 20, DCRM Chapter 15,
Sections 1503, 1504, and 1505 identifies the appropriate agencies,
procedures and allocation of responsibilities. In addition, Title 20,
DCMR Chapter 15, Section 1506 provides for appropriate, public
consultation/public involvement consistent with 40 CFR 93.105. With
respect to the requirements of 40 CFR 93.122(a)(4)(ii) and 40 CFR
93.125(c), the Title 20, DCRM Chapter 15, Section 1509 of the
regulation specifies that written commitments for control measures and
mitigation measures for meeting these requirements will be provided as
needed.

IV. Final Action

    EPA is approving the District of Columbia SIP revisions for general
and transportation conformity, without prior proposal because the
Agency views this as a noncontroversial amendment and anticipates no
adverse comment. However, in the Proposed Rules section of today's
Federal Register, EPA is publishing a separate document that will serve
as the proposal to approve the SIP revision if adverse comments are
filed. This rule will be effective on July 27, 2010 without further
notice unless EPA receives adverse comment by June 28, 2010. If EPA
receives adverse comment, EPA will publish a timely withdrawal in the
Federal Register informing the public that the rule will not take
effect. EPA will address all public comments in a subsequent final rule
based on the proposed rule. EPA will not institute a second comment
period on this action. Any parties interested in commenting must do so
at this time. Please note that if EPA receives adverse comment on an
amendment, paragraph, or section of this rule and if that provision may
be severed from the remainder of the rule, EPA may adopt as final those
provisions of the rule that are not the subject of an adverse comment.

V. Statutory and Executive Order Reviews

A. General Requirements

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve State
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely approves State law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by State law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have Tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the State, and EPA notes that it will not impose substantial direct
costs on Tribal governments or preempt Tribal law.

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small

Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).

C. Petitions for Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by July 27, 2010. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this final rule for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action to approve the District of Columbia transportation
conformity regulations may not be challenged later in proceedings to
enforce its requirements. (See, section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Volatile organic compounds.

    Dated: May 17, 2010.
William C. Early,
Acting Regional Administrator, Region III.

0
40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart J--District of Columbia

0
2. In Sec.  52.470, the table in paragraph (c) is amended by removing
the existing entry for Chapter 4, Section 403 and adding a new entry
for Chapter 15. The amendments read as follows:

Sec.  52.470  Identification of plan.

* * * * *
    (c) * * *

                                  EPA-Approved District of Columbia Regulations
----------------------------------------------------------------------------------------------------------------
                                                          State
          State citation              Title/subject     effective      EPA approval date          Additional
                                                           date                                  explanation
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
            Chapter 15             General and Transportation Conformity
----------------------------------------------------------------------------------------------------------------
Section 1500.....................  General Conformity--    1/8/10  5/28/10 [Insert page      New Regulation.
                                    Purpose.                        number where the
                                                                    document begins].
Section 1501.....................  General Conformity--    1/8/10  5/28/10 [Insert page      New Regulation.
                                    Requirements.                   number where the
                                                                    document begins].
Section 1502.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Purpos              number where the
                                    e.                              document begins].
Section 1503.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Consul              number where the
                                    tation Process.                 document begins].
Section 1504.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Intera              number where the
                                    gency Consultation              document begins].
                                    Requirements.
Section 1505.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Confli              number where the
                                    ct Resolution                   document begins].
                                    Associated With
                                    Conformity
                                    Determinations.
Section 1506.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Public              number where the
                                    Consultation                    document begins].
                                    Procedures.
Section 1507.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Intera              number where the
                                    gency Consultation              document begins].
                                    Procedures.
Section 1508.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Proced              number where the
                                    ures for                        document begins].
                                    Determining
                                    Regional
                                    Transportation-
                                    Related Emissions.
Section 1509.....................  Transportation          1/8/10  5/28/10 [Insert page      New Regulation.
                                    Conformity--Enforc              number where the
                                    eability of Design              document begins].
                                    Concept and Scope
                                    and Project-Level
                                    Mitigation and
                                    Control Measures.

Section 1599.....................  Definitions........     1/8/10  5/28/10 [Insert page      New Regulation.
                                                                    number where the
                                                                    document begins].

                                                   * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2010-12929 Filed 5-27-10; 8:45 am]
BILLING CODE 6560-50-P