[Federal Register Volume 82, Number 12 (Thursday, January 19, 2017)]
[Notices]
[Pages 6674-6678]
[FR Doc No: 2017-01151]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79779; File No. 4-678]

Program for Allocation of Regulatory Responsibilities Pursuant to
Rule 17d-2; Notice of Filing of Proposed Amended Plan for the
Allocation of Regulatory Responsibilities Among the Financial Industry
Regulatory Authority, Inc., Miami International Securities Exchange,
LLC, and MIAX PEARL, LLC

January 12, 2017.
    Pursuant to Section 17(d) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 17d-2 thereunder,\2\ notice is hereby given that
on January 12, 2017, Miami International Securities Exchange, LLC
(``MIAX''), MIAX PEARL, LLC (``MIAX PEARL''), and the Financial
Industry Regulatory Authority, Inc. (``FINRA'') (together, the
``Parties'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') an amended plan for the allocation of
regulatory responsibilities, dated January 11, 2017 (``17d-2 Plan'' or
the ``Plan''). The Commission is publishing this notice to solicit
comments on the 17d-2 Plan from interested persons.
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    \1\ 15 U.S.C 78q(d).
    \2\ 17 CFR 240.17d-2.
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I. Introduction

    Section 19(g)(1) of the Act,\3\ among other things, requires every
self-regulatory organization (``SRO'') registered as either a national
securities exchange or national securities association to examine for,
and enforce compliance by, its members and persons associated with its
members with the Act, the rules and regulations thereunder, and the
SRO's own rules, unless the SRO is relieved of this responsibility
pursuant to Section 17(d) or Section 19(g)(2) of the Act.\4\ Without
this relief, the statutory obligation of each individual SRO could
result in a pattern of multiple examinations of broker-dealers that
maintain memberships in more than one SRO (``common members''). Such
regulatory duplication would add unnecessary expenses for common
members and their SROs.
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    \3\ 15 U.S.C. 78s(g)(1).
    \4\ 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), respectively.
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    Section 17(d)(1) of the Act \5\ was intended, in part, to eliminate
unnecessary multiple examinations and regulatory duplication.\6\ With
respect to a common member, Section 17(d)(1) authorizes the Commission,
by rule or order, to relieve an SRO of the responsibility to receive
regulatory reports, to examine for and enforce compliance with
applicable statutes, rules, and regulations, or to perform other
specified regulatory functions.
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    \5\ 15 U.S.C. 78q(d)(1).
    \6\ See Securities Act Amendments of 1975, Report of the Senate
Committee on Banking, Housing, and Urban Affairs to Accompany S.
249, S. Rep. No. 94-75, 94th Cong., 1st Session 32 (1975).
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    To implement Section 17(d)(1), the Commission adopted two rules:
Rule 17d-1 and Rule 17d-2 under the Act.\7\ Rule 17d-1 authorizes the
Commission to name a single SRO as the designated examining authority
(``DEA'') to examine common members for compliance with the financial
responsibility requirements imposed by the Act, or by Commission or SRO
rules.\8\ When an SRO has been named as a common member's DEA, all
other SROs to which the common member belongs are relieved of the
responsibility to examine the firm for compliance with the applicable
financial responsibility rules. On its face, Rule 17d-1 deals only with
an SRO's obligations to enforce member compliance with financial
responsibility requirements. Rule 17d-1 does not relieve an SRO from
its obligation to examine a common member for compliance with its own
rules and provisions of the federal securities laws governing matters
other than financial responsibility, including sales practices and
trading activities and practices.
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    \7\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2, respectively.
    \8\ See Securities Exchange Act Release No. 12352 (April 20,
1976), 41 FR 18808 (May 7, 1976).
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    To address regulatory duplication in these and other areas, the
Commission adopted Rule 17d-2 under the Act.\9\ Rule 17d-2 permits SROs
to propose joint plans for the allocation of regulatory
responsibilities with respect to their common members. Under paragraph
(c) of Rule 17d-2, the Commission may declare such a plan effective if,
after providing for appropriate notice and comment, it determines that
the plan is necessary or appropriate in the public interest and for the
protection of investors; to foster cooperation and coordination among
the SROs; to remove impediments to, and foster the development of, a
national market system and a national clearance and settlement system;
and is in conformity with the factors set forth in Section 17(d) of the
Act. Commission approval of a plan filed pursuant to Rule 17d-2
relieves an SRO of those regulatory responsibilities allocated by the
plan to another SRO.
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    \9\ See Securities Exchange Act Release No. 12935 (October 28,
1976), 41 FR 49091 (November 8, 1976).
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II. The Plan

    On November 19, 2014, the Commission declared effective the Plan
entered into between FINRA and MIAX for allocating regulatory
responsibility pursuant to Rule 17d-2.\10\ The Plan is intended to
reduce regulatory duplication for firms that are common members of both
MIAX and FINRA. The plan reduces regulatory duplication for firms that
are members of MIAX and FINRA by allocating regulatory responsibility
with respect to certain applicable laws, rules, and regulations.
Included in the Plan is an exhibit that lists every MIAX rule for which
FINRA bears responsibility under the Plan for overseeing and enforcing
with respect to MIAX members that are also members of FINRA and the
associated persons therewith.
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    \10\ See Securities Exchange Act Release No. 73641 (November 19,
2014), 79 FR 70230 (November 25, 2014).
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III. Proposed Amendment to Plan

    On January 12, 2017, the parties submitted a proposed amendment to
the Plan. The primary purpose of the amendment is to add MIAX PEARL as
a Participant to the Plan. The text of the proposed amended 17d-2 plan
is as follows (additions are italicized; deletions are [bracketed]):

Agreement [Between] Among Financial Industry Regulatory Authority,
Inc., [and] Miami International Securities Exchange, LLC and MIAX
PEARL, LLC Pursuant to Rule 17d-2 Under the Securities Exchange Act of
1934

    This Agreement, by and [between] among the Financial Industry
Regulatory Authority, Inc. (``FINRA''), [and] Miami International
Securities Exchange, LLC (``MIAX'') and MIAX PEARL, LLC (``MIAX
PEARL''), is made this [13th] 11th day of [October] January, 201[4] 7
(the ``Agreement''), pursuant to Section 17(d) of the Securities
Exchange Act of 1934 (the ``Exchange Act'') and Rule 17d-2 thereunder,
which permits agreements between self-regulatory organizations to
allocate regulatory responsibility to eliminate regulatory duplication.
FINRA, [and] MIAX and MIAX PEARL may be referred to individually as a
``party'' and together as the ``parties.''
    This Agreement amends and restates the agreement entered into
between FINRA and MIAX on October 13, 2014, entitled ``Agreement
between Financial Industry Regulatory Authority, Inc. and Miami
International Securities

Exchange, LLC Pursuant to Rule 17d-2 under the Securities Exchange Act
of 1934,'' and any subsequent amendments thereafter.
    Whereas, [FINRA and MIAX] the parties desire to reduce duplication
in the examination of their [Dual] Common Members (as defined herein)
and in the filing and processing of certain registration and membership
records; and
    Whereas, [FINRA and MIAX] the parties desire to execute an
agreement covering such subjects pursuant to the provisions of Rule
17d-2 under the Exchange Act and to file such agreement with the
Securities and Exchange Commission (the ``SEC'' or ``Commission'') for
its approval.
    Now, therefore, in consideration of the mutual covenants contained
hereinafter, [FINRA and MIAX] the parties hereby agree as follows:
    1. Definitions. Unless otherwise defined in this Agreement or the
context otherwise requires, the terms used in this Agreement shall have
the same meaning as they have under the Exchange Act and the rules and
regulations thereunder. As used in this Agreement, the following terms
shall have the following meanings:
    (a) ``MIAX Rules,'' ``MIAX PEARL Rules or ``FINRA Rules'' shall
mean: (i) The rules of MIAX or MIAX PEARL, respectively, or (ii) the
rules of FINRA, respectively, as the rules of an exchange or
association are defined in Exchange Act Section 3(a)(27).
    (b) ``Common Rules'' shall mean MIAX Rules and MIAX PEARL Rules
that are substantially similar to the applicable FINRA Rules and
certain provisions of the Exchange Act and SEC rules set forth on
Exhibit 1 in that examination for compliance with such provisions and
rules would not require FINRA to develop one or more new examination
standards, modules, procedures, or criteria in order to analyze the
application of the provision or rule, or a [Dual] Common Member's
activity, conduct, or output in relation to such provision or rule.
Common Rules shall not include any provisions regarding (i) notice,
reporting or any other filings made directly to or from MIAX or MIAX
PEARL, (ii) compliance with other referenced MIAX or MIAX PEARL Rules
that are not Common Rules, (iii) exercise of discretion including, but
not limited to exercise of exemptive authority, by MIAX or MIAX PEARL,
(iv) prior written approval of MIAX or MIAX PEARL and (v) payment of
fees or fines to MIAX or MIAX PEARL.
    (c) ``[Dual] Common Members'' shall mean [those MIAX] members [that
are also members of FINRA and the associated persons therewith] of
FINRA and at least one of MIAX or MIAX PEARL.
    (d) ``Effective Date'' shall be the date this Agreement is approved
by the Commission.
    (e) ``Enforcement Responsibilities'' shall mean the conduct of
appropriate proceedings, in accordance with FINRA's Code of Procedure
(the Rule 9000 Series) and other applicable FINRA procedural rules, to
determine whether violations of Common Rules have occurred, and if such
violations are deemed to have occurred, the imposition of appropriate
sanctions as specified under FINRA's Code of Procedure and sanctions
guidelines.
    (f) ``Regulatory Responsibilities'' shall mean the examination
responsibilities and Enforcement Responsibilities relating to
compliance by the [Dual] Common Members with the Common Rules and the
provisions of the Exchange Act and the rules and regulations
thereunder, and other applicable laws, rules and regulations, each as
set forth on Exhibit 1 attached hereto.
    2. Regulatory and Enforcement Responsibilities. FINRA shall assume
Regulatory Responsibilities and Enforcement Responsibilities for [Dual]
Common Members. Attached as Exhibit 1 to this Agreement and made part
hereof, MIAX and MIAX PEARL furnished FINRA with a current list of
Common Rules and certified to FINRA that such rules that are MIAX Rules
and MIAX PEARL Rules are substantially similar to the corresponding
FINRA Rules (the ``Certification''). FINRA hereby agrees that the rules
listed in the Certification are Common Rules as defined in this
Agreement. Each year following the Effective Date of this Agreement, or
more frequently if required by changes in [either the rules of MIAX or
FINRA] the rules of the parties, MIAX and MIAX PEARL shall submit an
updated list of Common Rules to FINRA for review which shall add MIAX
Rules or MIAX PEARL Rules not included in the current list of Common
Rules that qualify as Common Rules as defined in this Agreement; delete
MIAX Rules or MIAX PEARL Rules included in the current list of Common
Rules that no longer qualify as Common Rules as defined in this
Agreement; and confirm that the remaining rules on the current list of
Common Rules continue to be MIAX Rules or MIAX PEARL Rules that qualify
as Common Rules as defined in this Agreement. Within 30 days of receipt
of such updated list, FINRA shall confirm in writing whether the rules
listed in any updated list are Common Rules as defined in this
Agreement. Notwithstanding anything herein to the contrary, it is
explicitly understood that the term ``Regulatory Responsibilities''
does not include, and MIAX and MIAX PEARL shall retain full
responsibility for (unless otherwise addressed by separate agreement or
rule) (collectively, the ``Retained Responsibilities'') the following:
    (a) Surveillance, examination, investigation and enforcement with
respect to trading activities or practices involving MIAX's and MIAX
PEARL's own marketplace;
    (b) registration pursuant to [its] their applicable rules of
associated persons (i.e., registration rules that are not Common
Rules);
    (c) discharge of [its] their duties and obligations as a Designated
Examining Authority pursuant to Rule 17d-1 under the Exchange Act; and
    (d) any MIAX Rules and MIAX PEARL Rules that are not Common Rules
as provided in paragraph 6.
    3. [Dual] Common Members. Prior to the Effective Date, MIAX and
MIAX PEARL shall furnish FINRA with a current list of [Dual] Common
Members, which shall be updated no less frequently than once each
quarter.
    4. No Charge. There shall be no charge to MIAX and MIAX PEARL by
FINRA for performing the Regulatory Responsibilities and Enforcement
Responsibilities under this Agreement except as hereinafter provided.
FINRA shall provide MIAX and MIAX PEARL with ninety (90) days advance
written notice in the event FINRA decides to impose any charges to MIAX
and MIAX PEARL for performing the Regulatory Responsibilities under
this Agreement. If FINRA determines to impose a charge, MIAX and MIAX
PEARL shall have the right at the time of the imposition of such charge
to terminate this Agreement; provided, however, that FINRA's Regulatory
Responsibilities under this Agreement shall continue until the
Commission approves the termination of this Agreement.
    5. Applicability of Certain Laws, Rules, Regulations or Orders.
Notwithstanding any provision hereof, this Agreement shall be subject
to any statute, or any rule or order of the SEC. To the extent such
statute, rule or order is inconsistent with one or more provisions of
this Agreement, the statute, rule or order shall supersede the
provision(s) hereof to the extent necessary to be properly effectuated
and the provision(s) hereof in that respect shall be null and void.
    6. Notification of Violations. In the event that FINRA becomes
aware of

apparent violations of any MIAX Rules or MIAX PEARL Rules, which are
not listed as Common Rules, discovered pursuant to the performance of
the Regulatory Responsibilities assumed hereunder, FINRA shall notify
MIAX and MIAX PEARL of those apparent violations for such response as
MIAX and MIAX PEARL deem[s] appropriate. In the event that MIAX or MIAX
PEARL becomes aware of apparent violations of any Common Rules,
discovered pursuant to the performance of the Retained
Responsibilities, MIAX and MIAX PEARL shall notify FINRA of those
apparent violations and such matters shall be handled by FINRA as
provided in this Agreement. Apparent violations of Common Rules shall
be processed by, and enforcement proceedings in respect thereto shall
be conducted by FINRA as provided hereinbefore; provided, however, that
in the event a [Dual] Common Member is the subject of an investigation
relating to a transaction on MIAX or MIAX PEARL, MIAX and MIAX PEARL
may in [its] their discretion assume concurrent jurisdiction and
responsibility. Each party agrees to make available promptly all files,
records and witnesses necessary to assist the other in its
investigation or proceedings.
    7. Continued Assistance.
    (a) FINRA shall make available to MIAX and MIAX PEARL all
information obtained by FINRA in the performance by it of the
Regulatory Responsibilities hereunder with respect to the [Dual] Common
Members subject to this Agreement. In particular, and not in limitation
of the foregoing, FINRA shall furnish MIAX and MIAX PEARL any
information it obtains about [Dual] Common Members which reflects
adversely on their financial condition. MIAX and MIAX PEARL shall make
available to FINRA any information coming to its attention that
reflects adversely on the financial condition of [Dual] Common Members
or indicates possible violations of applicable laws, rules or
regulations by such firms.
    (b) The parties agree that documents or information shared shall be
held in confidence, and used only for the purposes of carrying out
their respective regulatory obligations. [Neither] No party shall
assert regulatory or other privileges as against [the] any other with
respect to documents or information that is required to be shared
pursuant to this Agreement.
    (c) The sharing of documents or information [between] among the
parties pursuant to this Agreement shall not be deemed a waiver as
against third parties of regulatory or other privileges relating to the
discovery of documents or information.
    8. Statutory Disqualifications. When FINRA becomes aware of a
statutory disqualification as defined in the Exchange Act with respect
to a [Dual] Common Member, FINRA shall determine pursuant to Sections
15A(g) and/or Section 6(c) of the Exchange Act the acceptability or
continued applicability of the person to whom such disqualification
applies and keep MIAX and MIAX PEARL advised of its actions in this
regard for such subsequent proceedings as MIAX and MIAX PEARL may
initiate.
    9. Customer Complaints. MIAX and MIAX PEARL shall forward to FINRA
copies of all customer complaints involving [Dual] Common Members
received by MIAX and MIAX PEARL relating to FINRA's Regulatory
Responsibilities under this Agreement. It shall be FINRA's
responsibility to review and take appropriate action in respect to such
complaints.
    10. Advertising. FINRA shall assume responsibility to review the
advertising of [Dual] Common Members subject to the Agreement, provided
that such material is filed with FINRA in accordance with FINRA's
filing procedures and is accompanied with any applicable filing fees
set forth in FINRA Rules.
    11. No Restrictions on Regulatory Action. Nothing contained in this
Agreement shall restrict or in any way encumber the right of [either]
any party to conduct its own independent or concurrent investigation,
examination or enforcement proceeding of or against [Dual] Common
Members, as [either] any party, in its sole discretion, shall deem
appropriate or necessary.
    12. Termination. This Agreement may be terminated by [MIAX or
FINRA] any party at any time upon the approval of the Commission after
one (1) year's written notice to the other [party] parties (or such
shorter time as agreed by the parties), except as provided in paragraph
4.
    13. Arbitration. In the event of a dispute [between] among the
parties as to the operation of this Agreement, [MIAX and FINRA] the
parties hereby agree that any such dispute shall be settled by
arbitration in Washington, DC in accordance with the rules of the
American Arbitration Association then in effect, or such other
procedures as the parties may mutually agree upon. Judgment on the
award rendered by the arbitrator(s) may be entered in any court having
jurisdiction. Each party acknowledges that the timely and complete
performance of its obligations pursuant to this Agreement is critical
to the business and operations of the other [party] parties. In the
event of a dispute [between] among the parties, the parties shall
continue to perform their respective obligations under this Agreement
in good faith during the resolution of such dispute unless and until
this Agreement is terminated in accordance with its provisions. Nothing
in this Section 13 shall interfere with a party's right to terminate
this Agreement as set forth herein.
    14. Separate Agreement. This Agreement is wholly separate from the
following agreement: (1) The multiparty Agreement made pursuant to Rule
17d-2 of the Exchange Act among BATS Exchange, Inc., BOX Options
Exchange, LLC, Chicago Board Options Exchange, Incorporated, C2 Options
Exchange, Incorporated, the International Securities Exchange, LLC,
FINRA, MIAX, [the New York Stock Exchange LLC,] NYSE MKT LLC, the NYSE
Arca, Inc., The NASDAQ Stock Market LLC, NASDAQ OMX BX, Inc., NASDAQ
OMX PHLX LLC, ISE Gemini, LLC, EDGX Exchange, Inc. and [Topaz Exchange,
LLC] ISE Mercury, LLC involving the allocation of regulatory
responsibilities with respect to common members for compliance with
common rules relating to the conduct by broker-dealers of accounts for
listed options or index warrants entered as approved by the SEC on
[July 26, 2013] February 16, 2016, and as may be amended from time to
time; and (2) the multiparty Agreement made pursuant to Rule 17d-2 of
the Exchange Act among NYSE MKT LLC, BATS Exchange, Inc., EDGX
Exchange, Inc., BOX Options Exchange LLC, NASDAQ OMX BX, Inc., C2
Options Exchange, Incorporated, Chicago Board Options Exchange,
Incorporated, International Securities Exchange LLC, ISE Gemini, LLC,
ISE Mercury, LLC, FINRA, NYSE Arca, Inc., The NASDAQ Stock Market LLC,
NASDAQ OMX PHLX, Inc., and MIAX[, and Topaz Exchange, LLC] involving
the allocation of regulatory responsibilities with respect to SRO
market surveillance of common members activities with regard to certain
common rules relating to listed options approved by the SEC on [July
26, 2013] February 16, 2016, and as may be amended from time to time.
    15. Notification of Members. [MIAX and FINRA] The parties shall
notify [Dual] Common Members of this Agreement after the Effective Date
by means of a uniform joint notice.
    16. Amendment. This Agreement may be amended in writing provided
that the changes are approved by [both parties] each party. All such
amendments must be filed with and approved by the

Commission before they become effective.
    17. Limitation of Liability. [Neither FINRA nor MIAX] None of the
parties nor any of their respective directors, governors, officers or
employees shall be liable to [the] any other party to this Agreement
for any liability, loss or damage resulting from or claimed to have
resulted from any delays, inaccuracies, errors or omissions with
respect to the provision of Regulatory Responsibilities as provided
hereby or for the failure to provide any such responsibility, except
with respect to such liability, loss or damages as shall have been
suffered by [one or the other of FINRA or MIAX] any party and caused by
the willful misconduct of [the other] another party or their respective
directors, governors, officers or employees. No warranties, express or
implied, are made by [FINRA or MIAX] any party hereto with respect to
any of the responsibilities to be performed by [each of] them
hereunder.
    18. Relief from Responsibility. Pursuant to Sections 17(d)(1)(A)
and 19(g) of the Exchange Act and Rule 17d-2 thereunder, FINRA, [and]
MIAX and MIAX PEARL join in requesting the Commission, upon its
approval of this Agreement or any part thereof, to relieve MIAX and
MIAX PEARL of any and all responsibilities with respect to matters
allocated to FINRA pursuant to this Agreement; provided, however, that
this Agreement shall not be effective until the Effective Date.
    19. Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement or affecting the
validity or enforceability of any of the terms or provisions of this
Agreement in any other jurisdiction.
    20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and such
counterparts together shall constitute one and the same instrument.
In witness whereof, each party has executed or caused this Agreement to
be executed on its behalf by a duly authorized officer as of the date
first written above.

MIAMI INTERNATIONAL SECURITIES EXCHANGE, LLC.

By:--------------------------------------------------------------------
Name:
Title:

MIAX PEARL, LLC.

By:--------------------------------------------------------------------
Name:
Title:

FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC.

By:--------------------------------------------------------------------
Name:
Title:
Exhibit 1
Miami International Securities Exchange, LLC and MIAX PEARL, LLC Rules
Certification for 17d-2 Agreement With FINRA
    Miami International Securities Exchange, LLC (``MIAX'') and MIAX
PEARL, LLC (``MIAX PEARL'') hereby [certifies] certify that the
requirements contained in the rules listed below are identical to, or
substantially similar to, the comparable FINRA (NASD) Rule, Exchange
Act provision or SEC rule identified (``Common Rules'').

------------------------------------------------------------------------
                                                     FINRA (NASD) rules,
                                                        exchange act
         MIAX rules             MIAX pearl rules      provision or SEC
                                                            rule
------------------------------------------------------------------------
Rule 301 Just and Equitable   Rule 301 Just and     FINRA Rule 2010
 Principles of Trade \1\.      Equitable             Standards of
                               Principles of Trade   Commercial Honor
                               \1\.                  and Principles of
                                                     Trade *.
Rule 303 Prevention of the    Rule 303 Prevention   Section 15(g) of the
 Misuse of Material            of the Misuse of      Exchange Act and
 Nonpublic Information \1\ #   Material Nonpublic    FINRA Rule
 [\2\].                        Information \1\ #.    3110(b)(1)
                                                     Supervision.
Rule 315 Anti-Money           Rule 315 Anti-Money   FINRA Rule 3310 Anti-
 Laundering Compliance         Laundering            Money Laundering
 Program [\2\] #.              Compliance Program    Compliance Program.
                               #.
Rule 318(a) Manipulation....  Rule 318(a)           FINRA Rule 2020 Use
                               Manipulation.         of Manipulative,
                                                     Deceptive or other
                                                     Fraudulent Devices
                                                     *.
Rule 318(b) Manipulation....  Rule 318(b)           FINRA Rule 6140
                               Manipulation.         Other Trading
                                                     Practices.
Rule 319 Forwarding of Proxy  Rule 319 Forwarding   FINRA Rule 2251
 and Other Issuer-Related      of Proxy and Other    Processing and
 Materials [\3\] 2.            Issuer-Related        Forwarding of Proxy
                               Materials \2\.        and Other Issuer-
                                                     Related Materials.
Rule 320 Trading Ahead of     Rule 320 Trading      FINRA Rule 5280
 Research Reports.             Ahead of Research     Trading Ahead of
                               Reports.              Research Reports.
Rule 800(a), (b) and (d)      Rule 800(a), (b) and  FINRA Rule 4511
 Maintenance, Retention and    (d) Maintenance,      General
 Furnishing of Books,          Retention and         Requirements * and
 Records and Other             Furnishing of         Section 17 of the
 Information \1\ [\4\] #.      Books, Records and    Exchange Act and
                               Other Information     the rules
                               \1\ #.                thereunder #.
Rule 1304 Continuing          Rule 1304 Continuing  FINRA Rule
 Education for Registered      Education for         1250(a)(1)-(4), (6)
 Persons [\4\] #.              Registered Persons    and (b) Continuing
                               #.                    Education
                                                     Requirements #.
Rule 1321 Transfer of         Rule 1321 Transfer    FINRA Rule 11870
 Accounts.                     of Accounts.          Customer Account
                                                     Transfer Contracts.
Rule 1325 Telemarketing.....  Rule 1325             FINRA Rule 3230
                               Telemarketing.        Telemarketing.
------------------------------------------------------------------------
In addition, the following provisions shall be part of this 17d-2
  Agreement:
SEA Rule 200 of Regulation SHO--Definition of ``Short Sale'' and Marking
  Requirements and
SEA Rule 203 of Regulation SHO--Borrowing and Delivery Requirements
* FINRA shall not have Regulatory Responsibilities for these rules as
  they pertain to violations of insider trading activities, which is
  covered by a separate 17d-2 Agreement by and among BATS Exchange,
  Inc., BATS Y-Exchange, Inc., Chicago Board Options Exchange, Inc.,
  Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange,
  Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX,
  Inc., NASDAQ OMX PHLX LLC, the NASDAQ Stock Market LLC, National Stock
  Exchange, Inc., New York Stock Exchange LLC, NYSE Amex LLC, and NYSE
  Arca Inc., effective December 16, 2011, as may be amended from time to
  time.
# FINRA shall not have Regulatory Responsibilities regarding (i) notice,
  reporting or any other filings made directly to or from MIAX or MIAX
  PEARL, (ii) compliance with other referenced MIAX or MIAX PEARL Rules
  that are not Common Rules, (iii) exercise of discretion including, but
  not limited to exercise of exemptive authority, by MIAX or MIAX PEARL,
  (iv) prior written approval of MIAX or MIAX PEARL and (v) payment of
  fees or fines to MIAX or MIAX PEARL.
\1\ FINRA shall only have Regulatory Responsibilities regarding the rule
  and not the interpretations and policies.
[\2\] FINRA shall not have Regulatory Responsibilities regarding the
  rule to the extent it requires notification to MIAX.]
[\3\]\2\ FINRA shall not have Regulatory Responsibilities regarding
  subsection (c) of Rule 319.
[\4\] FINRA shall not have Regulatory Responsibilities for exercise of
  exemptive or other discretionary authority by MIAX to the extent it
  makes the rule inconsistent with the FINRA rule. In addition, FINRA
  shall only have Regulatory Responsibilities to the extent the category
  of persons subject to MIAX registration is the same as FINRA.]

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

    Pursuant to Section 17(d)(1) of the Act \11\ and Rule 17d-2
thereunder,\12\ February 3, 2017 declare the plan submitted by MIAX,
MIAX PEARL, and FINRA, File No. 4-678, to be effective if the
Commission finds that the plan is necessary or appropriate in the
public interest and for the protection of investors, to foster
cooperation and coordination among self-regulatory organizations, or to
remove impediments to and foster the development of the national market
system and a national system for the clearance and settlement of
securities transactions and in conformity with the factors set forth in
Section 17(d) of the Act.
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    \11\ 15 U.S.C. 78q(d)(1).
    \12\ 17 CFR 240.17d-2.
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IV. Solicitation of Comments

    In order to assist the Commission in determining whether to approve
the proposed 17d-2 Plan and to relieve MIAX and MIAX PEARL of the
responsibilities which would be assigned to FINRA, interested persons
are invited to submit written data, views, and arguments concerning the
foregoing. Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/other.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number4-678 on the subject line.

Paper Comments

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

All submissions should refer to File Number 4-678. 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/other.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 plan also will be available for inspection and
copying at the principal offices of MIAX, MIAX PEARL, and FINRA. 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 4-678 and should be submitted
on or before February 3, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(34).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01151 Filed 1-18-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 205 (Wednesday, October 27, 2021)]
[Rules and Regulations]
[Page 59303]
[FR Doc No: 2021-23403]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 1 and 175

46 CFR Part 25

[Docket No. USCG-2018-0099]
RIN 1625-AC41

Fire Protection for Recreational Vessels

AGENCY: Coast Guard, Department of Homeland Security.

ACTION: Final rule; correction.

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SUMMARY: The Coast Guard is correcting a final rule that appeared in
the Federal Register on October 22, 2021. The document issued a final
rule that amended fire extinguishing equipment regulations for
recreational vessels that are propelled or controlled by propulsion
machinery.

DATES: Effective April 20, 2022.

FOR FURTHER INFORMATION CONTACT: For information about this document,
call or email Jeffrey Decker, Office of Auxiliary and Boating Safety,
Boating Safety Division (CG-BSX-2), Coast Guard; telephone 202-372-
1507, email [email protected].

SUPPLEMENTARY INFORMATION:  In FR Doc. 2021-22578 apearing on pages
58560-58573 in the Federal Register of Friday, October 22, 2021, the
following correction is made:

33 CFR 175.320 [Corrected]

0
1. On page 58573, in the first column, in table 3 to Sec.
175.320(a)(2), the header for the second column is corrected to read
``Conditions that do not in themselves require fire extinguishers''.

Michael Cunningham,
Chief, Office of Regulations and Administrative Law, U.S. Coast Guard.
[FR Doc. 2021-23403 Filed 10-26-21; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: November 29, 2006 (Volume 71, Number 229)]
[Notices]
[Page 69161-69162]
[DOCID:fr29no06-90]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54811; File No. SR-NASD-2006-066]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Approving Proposed Rule Change and Amendment No. 1
Thereto To Allow Certain Institutional Customers To Elect Not To
Receive Account Statements

November 22, 2006.
    On May 23, 2006, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission''), pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed amendment to NASD rule 2340 (Customer Account
Statements). On August 17, 2006, NASD filed Amendment No. 1 to the
proposed rule change.\3\ The proposed rule change, as amended by
Amendment No. 1, was published for comment in the Federal Register on
October 16, 2006.\4\ The Commission received one comment on the
proposal.\5\ This order approves the proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, NASD proposed to partially amend the
text of proposed amended Rule 2340.
    \4\ See Exchange Act Release No. 54566 (Oct. 3, 2006), 71 FR
60784 (Oct. 16, 2006).
    \5\ See letter from Noland Cheng, Chairman, Operations
Committee, Securities Industry and Financial Markets Association
(``SIFMA''), to Nancy M. Morris, Secretary, Commission, dated
November 3, 2006 (``SIFMA letter'') (available for review on the
Commission's Web site at http://www.sec.gov/comments/sr-nasd-2006-066/nasd2006066-1.pdf
).

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I. Description

    The proposed amendment to NASD Rule 2340 would allow institutional
customers with Delivery versus Payment/Receive versus Payment (``DVP/
RVP'') accounts to elect not to receive quarterly account
statements.\6\ A DVP/RVP account is an arrangement whereby payment for
securities purchased is made to the selling customer's agent/and or
delivery of securities sold is made to the buying customer's agent in
exchange for payment at the time of settlement, usually in the form of
cash.
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    \6\ The proposed rule change is similar to a rule change
proposed by the New York Stock Exchange, Inc. (now known as New York
Stock Exchange LLC). See Securities Exchange Act Release No. 53826
(May 18, 2006), 71 FR 30211 (May 25, 2006).
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    Rule 2340, in pertinent part, requires any member that conducts a
general securities business and also carries customer accounts or holds
customer funds or securities to send account statements to customers at
least once each calendar quarter. The statement of account must contain
a description of any securities positions, money balances, or account
activity, and must be sent to each customer whose account had a
security position, money balance, or account activity during the time
since the last statement was sent.
    The proposed amendment would provide relief from this requirement
with regard to customer accounts that are carried solely for the
purpose of DVP/RVP transactions. NASD states that account statements
for DVP/RVP accounts (chiefly institutional accounts) generally do not
reflect any cash balance or security position at the end of a quarter,
and that DVP/RVP customers generally rely on trade runs or customer
confirmations issued pursuant to Rule 10b-10 under the Exchange Act for
transaction-related information.
    The proposed amendment would relieve members from the obligation to
send quarterly statements to customers with DVP/RVP accounts if: (1)
The customer's account is carried solely for the purpose of execution
on a DVP/RVP basis; (2) all transactions in the account are handled on
a DVP/RVP basis in conformity with Rule 11860;\7\ (3) there are no
securities or cash positions in the account at the end of the quarter
(other than positions of a temporary nature, such as those arising from
fails to receive or deliver, errors, questioned trades, dividend or
bond interest entries and other similar transactions); (4) the customer
consents to the suspension in writing and the member maintains such
consents in a manner consistent with NASD Rule 3110 and Rule 17a-4
under the Exchange Act;\8\ (5) the member undertakes to provide any
particular statement or statements to the customer promptly upon
request; and (6) the member undertakes to promptly reinstate the
delivery of such statements to the customer upon request. The proposed
rule change specifies that Rule 2340 does not qualify or condition the
obligations of a member under Rule 15c3-2 under the Exchange Act
concerning quarterly notices of free credit balances on statements.\9\
The proposed rule change would also define ``DVP/RVP account'' for
purposes of Rule 2340.\10\ Finally, the proposed rule change includes a
technical amendment that would replace the reference to ``the
Association'' in paragraph (e) of Rule 2340 with ``NASD.''
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    \7\ Prior to accepting an order in a DVP/RVP account, a member
must comply with Rule 11860, which requires, among other things,
that the member obtain certain information from the customer,
including the name and address of the agent and the account number
of the customer on file with the agent.
    \8\ Under NASD Rule 3110(a), NASD members are, among other
things, required to make and preserve books and records as
prescribed by Rule 17a-3 under the Exchange Act. Rule 3110(a) also
states that the recordkeeping format, medium, and retention period
must comply with Rule 17a-4 under the Exchange Act. Rule 17a-4
specifies the manner in which broker-dealers must maintain the
records created in accordance with Rule 17a-3, and certain other
records produced by broker-dealers, and the required retention
periods for these records.
    \9\ Rule 15c3-2 under the Exchange Act requires broker-dealers
to provide each of their customers for whom a free credit balance is
carried, not less frequently than once every three months, a written
statement informing the customer of the amount due to the customer,
and written notice that the funds are not segregated and may be used
in the broker-dealer's business operations, and that the funds are
payable on the customer's demand.
    \10\ Proposed Rule 2340(d)(6) would define a ``DVP/RVP account''
as ``an arrangement whereby payment for securities purchased is made
to the selling customer's agent and/or delivery of securities sold
is made to the buying customer's agent in exchange for payment at
time of settlement, usually in the form of cash.''
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II. Summary of Comments

    The Commission received one comment on the proposal, which was
supportive, did not suggest any changes to the proposal, and did not
require a response from NASD.\11\
---------------------------------------------------------------------------

    \11\ See SIFMA letter, footnote 5, supra.
---------------------------------------------------------------------------

III. Discussion and Findings

    The Commission finds that the proposed rule change is consistent
with the Act, and in particular, with section 15A(b)(6) of the Act,\12\
which requires, among other things, that NASD rules be designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and national
market system, and in general, to protect investors and the public
interest. The Commission believes that the proposed rule change, as
amended, should remove impediments to and perfect the mechanisms of a
free and open market and national market system by removing an
unnecessary and potentially costly obligation on firms to deliver
quarterly account statements to DVP/RVP customers. At the same time,
the proposal maintains certain investor protections (i.e., requiring
NASD members to obtain affirmative consent to the suspension of
quarterly account statements, preserving the ability of customers to
obtain particular statements upon request and to resume receipt of
statements promptly upon request, and precluding member organizations
from unilaterally terminating delivery of such statements). The
Commission therefore believes the proposal is consistent with the
Exchange Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the Act
\13\ that the proposed rule change (SR-NASD-2006-066) be, and hereby
is, approved,\14\ effective immediately.\15\
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    \13\ 15 U.S.C. 78s(b)(2).
    \14\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
    \15\ NASD initially requested that the effective date of the
proposed rule change be 30 days following NASD's publication, within
60 days of the Commission's approval of the rule change, of a Notice
to Members announcing the rule change. NASD withdrew its request to
delay effectiveness of the proposal in a telephone conversation
between Shirley Weiss, Associate General Counsel, NASD, and Brice
Prince, Special Counsel, Division of Market Regulation, Commission,
on November 21, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-20217 Filed 11-28-06; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: January 30, 2008 (Volume 73, Number 20)]
[Rules and Regulations]
[Page 5435-5439]
[DOCID:fr30ja08-10]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2007-0183; FRL-8514-5]

Approval and Promulgation of Air Quality Implementation Plans;
Illinois; Revisions to Emission Reduction Market System

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In 1997, Illinois adopted and submitted rules establishing a
cap and trade program regulating emissions of volatile organic
compounds (VOC). The program, known as the Emission Reduction Market
System (ERMS), was designed to address VOC sources in the Chicago area
with potential to emit at least 25 tons per year. Then, in 2004, the
Chicago ozone nonattainment area was in effect reclassified from severe
to moderate, which according to EPA guidance revised the applicable
definition of major sources from 25 tons per year to 100 tons per year.
This ``reclassification'' could have resulted in the program no longer
including sources with potential to emit more than 25 but less than 100
tons per year. Instead, Illinois adopted rule revisions, submitted to
EPA on January 10, 2007, which required that these sources remain part
of the program. Illinois' rule revisions also address other
ramifications of the ``reclassification.'' EPA is approving these rule
revisions.

DATES: This direct final rule will be effective March 31, 2008, unless
EPA

receives adverse comments by February 29, 2008. If adverse comments are
received, EPA will publish a timely withdrawal of the direct final rule
in the Federal Register informing the public that the rule will not
take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2007-0183, by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for

submitting comments.
    2. Email<EMAIL_ADDRESS>    3. Fax:<PHONE_NUMBER>.
    4. Mail: John M. Mooney, Chief, Criteria Pollutant Section, Air
Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 West
Jackson Boulevard, Chicago, Illinois 60604.
    5. Hand Delivery: John M. Mooney, Chief, Criteria Pollutant
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection
Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604. Such
deliveries are only accepted during the Regional Office normal hours of
operation, and special arrangements should be made for deliveries of
boxed information. The Regional Office official hours of business are
Monday through Friday, 8:30 a.m. to 4:30 p.m. excluding Federal
holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2007-0183. 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 website 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 docket are listed in the
http://www.regulations.gov index. Although listed in the index, some

information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in http://www.regulations.gov or in hard copy at the Environmental Protection

Agency, Region 5, Air and Radiation Division, 77 West Jackson
Boulevard, Chicago, Illinois 60604. This Facility is open from 8:30
a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. We
recommend that you telephone John Summerhays, Environmental Scientist,
at<PHONE_NUMBER> before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: John Summerhays, Environmental
Scientist, Criteria Pollutant Section, Air Programs Branch (AR-18J),
Environmental Protection Agency, Region 5, 77 West Jackson Boulevard,
Chicago, Illinois 60604,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: This supplementary information section is
arranged as follows:

I. Description and Review of Illinois' Submittal
II. What Action is EPA Taking?
III. Statutory and Executive Order Reviews

I. Description and Review of Illinois' Submittal

    On January 10, 2007, Illinois submitted revisions to Part 205 of
Title 35 of the Illinois Administrative Code, entitled ``Emissions
Reduction Market System'' (ERMS). ERMS is a cap and trade program
addressing VOC emissions in the Chicago area. Under ERMS, Illinois
issues allowances equivalent to 12 percent less than baseline VOC
emission levels, and requires affected sources to hold allowances
equivalent to their VOC emissions during the ozone season. The program
thereby requires overall VOC emission levels to be reduced to 12
percent below baseline levels. The original rules for this program were
adopted on November 20, 1997, and were submitted by Bharat Mathur of
the Illinois EPA on December 16, 1997. EPA approved those rules on
October 15, 2001, at 66 FR 52359.
    Part 205 requires participation of all major VOC sources in the
Chicago area. More specifically, the 1997 version of Section 205.200
that Illinois adopted in 1997 stated that ``The requirements of this
Part shall apply to any source * * * located in the Chicago ozone
nonattainment area that is required to obtain a [Title V permit], and
[has VOC emissions during the ozone season of at least 10 tons].'' The
requirement for a Title V operating permit applies to major sources.
Since the Chicago area at that time was classified as a severe ozone
nonattainment area, major sources were defined to include sources with
the potential to emit 25 tons per year or more of VOC.
    In 2004, EPA classified the Chicago ozone nonattainment area as
moderate for the 8-hour ozone standard, and effective in 2005 rescinded
the severe classification for the 1-hour ozone standard. The definition
of major sources for moderate ozone nonattainment areas includes
sources with the potential to emit 100 tons per year or more of VOC.
According to EPA guidance (see 69 FR 23951, April 30, 2004), the
replacement of the prior classification of severe with a classification
of moderate thus meant that sources with potential to emit at least 25
tons per year but less than 100 tons per year of VOC would no longer be
required to have Title V operating permits. As a result, the sources in
the Chicago area in this size range would no longer be subject to the
ERMS requirements, given the applicability criteria in Section 205.200
as quoted above.
    Illinois estimated that the loss of these intermediate sized
sources from ERMS would result in a loss of 330 tons of VOC emission
reduction per ozone season associated with these sources. Illinois
sought to avoid this loss of sources from the program. Consequently,
Illinois revised Section 205.200 to redefine applicability to include
sources with potential to emit at least 25 tons of VOC (and sources
otherwise required to have a Title V permit) and at least 10 tons of
VOC emissions during the ozone season. By this means, Illinois revised
its applicability provisions to include the same set of sources as were
included in 1997, notwithstanding the change in the classification of
the Chicago area.
    Under the 1997 rules, Illinois established several elements of the
ERMS program by means of Title V permits. Most notably, the source's
Title V permit is used to specify the number of allowances to be issued
to the source (Cf. Section 205.315) and the source-specific VOC
monitoring methods (Cf.

Section 205.330). Since ERMS included sources which under EPA's
guidance were not subject to a requirement for a Title V permit, the
State needed an alternative means of specifying source-specific ERMS
provisions.
    Illinois therefore adopted Section 205.316, to provide that sources
that are not required to obtain a Title V permit (i.e., under EPA's
guidance, sources with potential emissions between 25 and 100 tons per
year) shall either request a Title V permit anyway or apply for a
federally enforceable state operating permit (FESOP). The FESOP is to
specify the provisions (relating for example to the number of
allowances allocated to the source and the source-specific monitoring
requirements) that would otherwise be specified in the Title V permit.
    Title V provides for defining some operations with trivial or no
emissions as insignificant activities. The 1997 version of Section
205.220 of Illinois' rules exempts these activities from ERMS. The
revised version of Section 205.220 extends this exemption to sources
obtaining FESOPs. That is, the revised Section 205.220 provides that
any activity meeting the criteria in Part 201 Subpart F of Title 35 of
the Illinois Administrative Code for insignificant activities may be
exempted from the ERMS program, whether the source is subject to a
Title V permit or a FESOP.
    In ozone nonattainment areas classified as severe, major new
sources and existing sources undergoing major modifications must obtain
1.3 tons of offsets for every ton of new emissions. In ozone
nonattainment areas classified as moderate, major new sources and
existing sources undergoing major modifications need only obtain 1.1
tons of offsets for every ton of new emissions. New source review rules
require that any change in offset ratio applies only prospectively, to
sources permitted after the change in ratio, and that sources permitted
before the change in ratio must continue to have offsets in at least
the ratio that applied at the time the source was permitted.
    Under Section 205.150 of the 1997 ERMS rules, major new sources and
sources undergoing major modifications were required to obtain 1.3
allowances for every ton of new emissions. Illinois' revised rules
provide for modified ratios as the applicable ratios change. Section
205.150(f)(1) of the revised rules states: ``If the nonattainment
classification of the Chicago area for ozone is changed such that the
required offset ratio is no longer 1.3 to 1 and a new offset ratio
applies, as specified in 35 Ill. Adm. Code 203.302, that ratio shall
then apply in lieu of the 1.3 to 1 ratio set forth in subsections
(c)(2), (d)(1), and (e) of this Section. Such new ratio shall not apply
to any part of a source or any modification already subject to the 1.3
to 1 ratio or other previously effective offset ratio established prior
to the effective date of the new ratio.'' Section 205.150(f)(2)
provides that the ratio becomes 1 to 1 if the Chicago area is
redesignated to attainment.
    These revisions address the ramifications of a revised
classification according to EPA guidance as cited above. However, while
Illinois was adopting these rule revisions, EPA's ozone implementation
guidance was being challenged in court. On December 22, 2006, with
clarification on June 8, 2007, the Court of Appeals for the District of
Columbia Circuit ruled against elements of EPA's ozone implementation
guidance, including the ``backsliding'' inherent in allowing an area
originally classified as severe and subsequently classified as moderate
to apply the less stringent major source definition for moderate areas.
South Coast Air Quality Management Dist. v. EPA, 472 F.3d 882 (D.C.
Cir. 2006). As stated in a memorandum from Robert Meyers to EPA's
Regional Administrators dated October 7, 2007, the effect of the
court's ruling is to restore the applicability thresholds and offset
ratios of the higher, 1-hour ozone classification. The court's decision
also signifies that operating permits under Title V of the Clean Air
Act also must be obtained according to major source thresholds as
defined for the 1-hour ozone classification, e.g., for sources in the
Chicago area with potential emissions of at least 25 tons per year.
This decision would also restore the 1.3 to 1 offset ratio for new VOC
sources in the Chicago area. The Meyers memorandum states further that
EPA intends two rulemakings, the first to establish applicability
thresholds and offset ratios in accordance with the court's ruling and
the second to develop rules that would define the circumstances under
which the provisions associated with 1-hour classifications might be
terminated.
    Fortunately, Illinois' rules achieve the intended effect
notwithstanding these developments regarding applicable size thresholds
and offset ratios. Section 205.200 provides that Part 205 requirements
apply to sources with potential to emit at least 25 tons of VOC per
year, without regard to whether the major source threshold is 25 or 100
tons per year. Resumption of a 25 ton per year definition of major
source simply means that sources with potential emissions between 25
and 100 tons that were subject to ERMS in 1997 because they were major
sources are again subject to ERMS because they are again major sources.
Since any source with potential to emit more than 25 tons per year now
by definition must obtain a Title V permit, it is a moot point whether
the State provides a FESOP option for sources of that size that are not
subject to the Title V permitting requirement. With respect to offsets,
Section 205.150 simply applies required holding allowances for new
sources in accordance with the applicable offset ratio. While the ratio
for a time was interpreted to be 1.1 to 1, the court decision means
that this ratio is reverting back to 1.3 to 1, and Section 205.150
provides that the ratio used for ERMS shall indeed revert back to 1.3
to 1. Thus, the Illinois rules accommodate the effects of the court's
ruling, and the court's ruling does not alter the approvability of
Illinois' Part 205 rules.
    Illinois requested that EPA defer rulemaking on Section 205.150(e).
This section provides that new sources providing offsets by holding
trading program allowances in the proper ratio need not also provide
offsets in their new source permit. Illinois made a similar request for
deferral of EPA rulemaking on this section in conjunction with its 1997
submittal of ERMS rules. While a new source may use a shutdown for both
purposes, purchasing the necessary allowances from a shutdown source
and simultaneously using the shutdown in the new source permit to
satisfy offset requirements, the deferral of rulemaking provides that
the two requirements must be met independently.
    Illinois made a corollary change, changing the term ``Chicago ozone
nonattainment area'' to the term ``Chicago area.'' The term ``Chicago
area'' is defined to mean the same area as the previous term ``Chicago
ozone nonattainment area,'' but the revised term more clearly signifies
that the program will remain in effect even if the Chicago area is
redesignated as an attainment area.
    In addition to the rules identified above, Illinois made conforming
revisions to multiple other rules. These revisions generally replace
the term ``Chicago nonattainment area'' with the term ``Chicago area''
or mention FESOPs as a possible vehicle for specifying source-specific
provisions to implement the ERMS rules.
    EPA finds these changes approvable. The change in the applicability
provisions merely assures that the original program applicability
criteria continue to apply, notwithstanding any change in the
classification or designation of the area. The requirement

for sources with potential emissions between 25 and 100 tons per year
to obtain FESOPs is a reasonable means of implementing the ERMS
requirements at any time when these sources are not required to obtain
a Title V permit. Illinois' provision for offset ratios, wherein new
source emissions are offset at the ratio that reflects the offset ratio
that is mandated at the time the permit authorizing the new source
emissions is issued, properly matches offset requirements. The use of
the term ``Chicago area'' also properly clarifies that the program
continues even if the area is redesignated to attainment.

II. What action is EPA taking?

    EPA is approving Illinois' revisions to the ERMS program, except
that EPA is deferring action on Section 205.150(e). EPA is publishing
this action without prior proposal because EPA views this as a
noncontroversial amendment and anticipates no adverse comments.
However, in the proposed rules section of this Federal Register
publication, EPA is publishing a separate document that will serve as
the proposal to approve the state plan if relevant adverse written
comments are filed. This rule will be effective March 31, 2008 without
further notice unless EPA receives relevant adverse written comments by
February 29, 2008. If EPA receives such comments, EPA will withdraw
this action before the effective date by publishing a subsequent
document that will withdraw the final action. All public comments
received will then be addressed in a subsequent final rule based on the
proposed action. EPA will not institute a second comment period. Any
parties interested in commenting on this action should do so at this
time. If EPA does not receive any comments, this action will be
effective March 31, 2008.
    Illinois did not change every rule in part 205. The State submitted
only those rules that it changed. Thus, the revised rules being
approved here must be viewed in conjunction with the unrevised rules
approved at 40 CFR 52.720(c)(158).

III. Statutory and Executive Order Reviews

Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget.

Executive Order 13211: Actions That Significantly Affect Energy Supply,
Distribution, or Use

    Because it is not a ``significant regulatory action'' under
Executive Order 12866 or a ``significant energy action,'' this action
is also not subject to Executive Order 13211, ``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use'' (66 FR 28355, May 22, 2001).

Regulatory Flexibility Act

    This action merely approves state law as meeting Federal
requirements and imposes no additional requirements beyond those
imposed by state law. Accordingly, the Administrator certifies that
this rule will not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act (5 U.S.C.
601 et seq.).

Unfunded Mandates Reform Act

    Because this rule approves pre-existing requirements under state
law and does not impose any additional enforceable duty beyond that
required by state law, it 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).

Executive Order 13175: Consultation and Coordination With Indian Tribal
Governments

    This rule also does not have tribal implications because it will
not have a substantial direct effect on one or more Indian tribes, on
the relationship between the Federal Government and Indian tribes, or
on the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (59
FR 22951, November 9, 2000).

Executive Order 13132: Federalism

    This action also does not have Federalism implications because it
does not have substantial direct effects on the states, on the
relationship between the national government and the states, or on the
distribution of power and responsibilities among the various levels of
government, as specified in Executive Order 13132 (64 FR 43255, August
10, 1999). This action merely approves a state rule implementing a
federal standard, and does not alter the relationship or the
distribution of power and responsibilities established in the Clean Air
Act.

Executive Order 13045: Protection of Children From Environmental Health
and Safety Risks

    This rule also is not subject to Executive Order 13045 ``Protection
of Children from Environmental Health Risks and Safety Risks'' (62 FR
19885, April 23, 1997), because it approves a state rule implementing a
Federal Standard.

National Technology Transfer Advancement Act

    In reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act. In
this context, in the absence of a prior existing requirement for the
state to use voluntary consensus standards (VCS), EPA has no authority
to disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Clean Air Act. Thus, the requirements
of section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) do not apply.

Paperwork Reduction Act

    This rule does not impose an information collection burden under
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
et seq.).

Congressional Review Act

    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 rule 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).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by March 31, 2008. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this 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 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, Incorporation by
reference, Intergovernmental relations, Ozone, Reporting and
recordkeeping requirements, Volatile organic compounds.

    Dated: December 18, 2007.
Bharat Mathur,
Acting Regional Administrator, Region 5.

0
For the reasons stated in the preamble, part 52, chapter I, of title 40
of the Code of Federal Regulations 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 O--Illinois

0
2. Section 52.720 is amended by adding paragraph (c)(180) to read as
follows:

Sec.  52.720  Identification of plan.

* * * * *
    (c) * * *
    (180) On January 10, 2007, Illinois submitted revisions to its
rules for the Emission Reduction Market System. These revisions assure
that sources in the Chicago area with potential emissions of VOC
between 25 and 100 tons per year will remain subject to the program,
irrespective of changes in the area's ozone nonattainment
classification or designation and any associated changes in whether
such sources are defined to be major sources. EPA is again deferring
action on section 205.150(e).
    (i) Incorporation by reference.
    (A) The following sections of 35 Illinois Administrative Code Part
205, as effective June 13, 2005: sections 205.120, 205.130, 205.150
(except for 205.150(e)), 205.200, 205.205, 205.210, 205.220, 205.300,
205.310, 205.315, 205.316, 205.318, 205.320, 205.330, 205.335, 205.337,
205.400, 205.405, 205.410, 205.500, 205.510, 205.610, 205.700, 205.730,
205.750, and 205.760.

 [FR Doc. E8-806 Filed 1-29-08; 8:45 am]

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[Federal Register: March 20, 2009 (Volume 74, Number 53)]
[Notices]
[Page 11963-11964]
[DOCID:fr20mr09-76]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2009-D-0136]

Draft Guidance for Industry on Community-Acquired Bacterial
Pneumonia: Developing Drugs for Treatment; Availability

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice.

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SUMMARY:  The Food and Drug Administration (FDA) is announcing the
availability of a draft guidance for industry entitled ``Community-
Acquired Bacterial Pneumonia: Developing Drugs for Treatment.'' This
draft guidance informs industry of FDA's current thinking regarding the
overall development program and clinical trial designs for drugs to
support an indication for treatment of community-acquired bacterial
pneumonia (CABP). This draft guidance does not address the development
of drugs for other purposes or populations, such as treatment of
patients with hospital-acquired pneumonia or ventilator-associated
pneumonia. This draft guidance revises the draft guidance for industry
entitled ``Community-Acquired Pneumonia-Developing Antimicrobial Drugs
for Treatment'' published July 1998.

DATES:  Although you can comment on any guidance at any time (see 21
CFR 10.115(g)(5)), to ensure that the agency considers your comment on
this draft guidance before it begins work on the final version of the
guidance, submit written or electronic comments on the draft guidance
by June 18, 2009.

ADDRESSES:  Submit written requests for single copies of the draft
guidance to the Division of Drug Information, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 51, rm. 2201, Silver Spring, MD 20993-0002. Send
one self-addressed adhesive label to assist that office in processing
your requests. Submit written comments on the draft guidance to the
Division of Dockets Management (HFA-305), Food and Drug Administration,
5630 Fishers Lane, rm. 1061, Rockville, MD 20852. Submit electronic
comments to http://www.regulations.gov. See the SUPPLEMENTARY
INFORMATION section for electronic access to the draft guidance
document.

FOR FURTHER INFORMATION CONTACT:
    Sumathi Nambiar, Center for Drug Evaluation and Research, Food and
Drug Administration, 10903 New Hampshire Ave., Bldg. 22, rm. 6232,
Silver Spring, MD 20993-0002,<PHONE_NUMBER>; or
    Edward Cox, Center for Drug Evaluation and Research, 10903 New
Hampshire Ave., Bldg. 22, rm. 6212, Silver Spring, MD 20993-0002, 301-
796-1300.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a draft guidance for industry
entitled ``Community-Acquired Bacterial Pneumonia: Developing Drugs for
Treatment.'' Since FDA published the draft guidance on the development
of antimicrobial drugs for the treatment of community-acquired
pneumonia in 1998, there have been public discussions regarding
clinical trial designs to study CABP, including an FDA-Infectious
Disease Society of America (IDSA) workshop and a meeting of the Anti-
Infective Drugs Advisory Committee. These discussions have focused on
clinical trial designs for CABP and other important issues such as the
following:
     Noninferiority versus superiority design
     Justification of an appropriate noninferiority margin
     Classification of severity of illness
     Classification of CABP based on hospitalization (inpatient
versus outpatient)
     Enrollment criteria
     Application of appropriate diagnostic criteria, including
microbiologic diagnosis
     Use of appropriate definitions of clinical outcomes,
including mortality
     Timing of outcome assessments
     Use of prior antibacterial drugs
    Important changes from the 1998 draft guidance that are based on
these discussions have been incorporated into this revised draft
guidance.
    This draft guidance is being issued consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the agency's current thinking on the
development of antibacterial drugs for CABP including appropriate
clinical trial designs to evaluate drugs for the treatment of CABP. It
does not create or confer any rights for or on any person and does not
operate to bind FDA or the public. An alternative approach may be used
if such approach

satisfies the requirements of the applicable statutes and regulations.

II. The Paperwork Reduction Act of 1995

    This draft guidance refers to previously approved collections of
information that are subject to review by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520). The collections of information in 21 CFR part 312 have been
approved under OMB control no. 0910-0014; the collections of
information in 21 CFR part 314 have been approved under OMB control no.
0910-0001; and the collections of information referred to in the
guidance ``Establishment and Operation of Clinical Trial Data
Monitoring Committees'' have been approved under OMB control no. 0910-
0581.

III. Comments

    Interested persons may submit to the Division of Dockets Management
(see ADDRESSES) written or electronic comments regarding this document.
Submit a single copy of electronic comments or two paper copies of any
mailed comments, except that individuals may submit one paper copy.
Comments are to be identified with the docket number found in brackets
in the heading of this document. Received comments may be seen in the
Division of Dockets Management between 9 a.m. and 4 p.m., Monday
through Friday.

IV. Electronic Access

    Persons with access to the Internet may obtain the document at
either http://www.fda.gov/cder/guidance/index.htm or http://
www.regulations.gov.

    Dated: March 13, 2009.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E9-6145 Filed 3-19-09; 8:45 am]

BILLING CODE 4160-01-S


[Federal Register Volume 79, Number 60 (Friday, March 28, 2014)]
[Notices]
[Pages 17643-17644]
[FR Doc No: 2014-06845]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2003-15638]

Petition for Waiver of Compliance

    In accordance with Part 211 of Title 49 Code of Federal Regulations
(CFR), this document provides the public notice that by a document
dated August 1, 2013, the Long Island Rail Road (LIRR) has petitioned
the Federal

Railroad Administration (FRA) for an extension of a waiver of
compliance from certain provisions of the Federal railroad safety
regulations contained at 49 CFR 238.303(15)(1). FRA assigned the
petition Docket Number FRA-2003-15638.
    LIRR has requested the Federal Railroad Administration (FRA)
requests an extension of its existing waiver of compliance from 49 CFR
238.303(e)(l5)(i)(c) for its fleet of M7 multiple unit (MU)
locomotives. The provision requires that MU locomotives, equipped with
dynamic brakes that become defective, ``shall be repaired or removed
from service by or at the locomotive's next exterior calendar day
mechanical inspection.''
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov and in person at the U.S. Department of
Transportation's (DOT) Docket Operations Facility, 1200 New Jersey
Avenue SE., W12-140, Washington, DC 20590. The Docket Operations
Facility is open from 9 a.m. to 5 p.m., Monday through Friday, except
Federal Holidays.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested party
desires an opportunity for oral comment, they should notify FRA, in
writing, before the end of the comment period and specify the basis for
their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
    Communications received by May 12, 2014 will be considered by FRA
before final action is taken. Comments received after that date will be
considered as far as practicable.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the comment (or signing the document,
if submitted on behalf of an association, business, labor union, etc.).
See http://www.regulations.gov/#!privacyNotice for the privacy notice
of regulations.gov or interested parties may review DOT's complete
Privacy Act Statement in the Federal Register published on April 11,
2000 (65 FR 19477).

Robert C. Lauby,
Associate Administrator for Railroad Safety, Chief Safety Officer.
[FR Doc. 2014-06845 Filed 3-27-14; 8:45 am]
BILLING CODE 4910-06-P