[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8985-8990]
[FR Doc No: 2020-03100]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88173; File No. SR-NASDAQ-2020-006]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Remove Listing Rule and Other Amendments

February 11, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 29, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend The Nasdaq Options Market LLC
(``NOM'') Rules at Options 1, Section 1 (Definitions), Options 2,
Section 4 (Obligations of Market Makers), Section 5 (Market Maker
Quotations), Options 3, Section 2 (Units of Trading and Meaning if
Premium Quotes and Orders), Options 3, Section 3 (Minimum Increments),
Options 3, Section 8 (Opening and Halt Cross), Options 3, Section 19
(Mass Cancellation of Trading Interest), Options 4, Section 5 (Series
of Options Contracts Open for Trading), Options 4A, Section 2
(Definitions), Section 3 (Designation of a Broad-Based Index), Section
6 (Position Limits for Broad-Based Index Options), Section 11 (Trading
Sessions), Section 12 (Terms of Index Options Contracts), Section 14
(Disclaimers), Options 5, Section 2 (Order Protection), Section 4
(Order Routing), Options 6C Exercises and Deliveries, and Options 7
(Pricing Schedule). The Exchange also proposes to relocate current rule
text to new Options 2, Section 6 entitled ``Market Maker Orders'' and
reserve certain rules within the Rulebook. The text of the proposed
rule change is available on the Exchange's website at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.

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

    In its filing with the Commission, the 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 NOM's Rules at Options 1, Section 1
(Definitions), Options 2, Section 4 (Obligations of Market Makers),
Section 5 (Market Maker Quotations), Options 3, Section 2 (Units of
Trading and Meaning if Premium Quotes and Orders), Options 3, Section 3
(Minimum Increments), Options 3, Section 8 (Opening and Halt Cross),
Options 3, Section 19 (Mass Cancellation of Trading Interest), Options
4, Section 5 (Series of Options Contracts Open for Trading), Options
4A, Section 2 (Definitions), Section 3 (Designation of a Broad-Based
Index), Section 6 (Position Limits for Broad-Based Index Options),
Section 11 (Trading Sessions), Section 12 (Terms of Index Options
Contracts), Section 14 (Disclaimers), Options 5, Section 2 (Order
Protection), Section 4 (Order Routing), Options 6C Exercises and
Deliveries, and Options 7 (Pricing Schedule). The Exchange also
proposes to relocate current rule text to new Options 2, Section 6
entitled ``Market Maker Orders'' and reserve certain rules within the
Rulebook. Each change is described below.
Rulebook Harmonization
    The Exchange recently harmonized its Rulebook in connection with
other Nasdaq affiliated markets. The Exchange proposes to reserve
certain rules within the Nasdaq Rulebook to represent the presence of
rules in similar locations in other Nasdaq affiliated Rulebooks (e.g.,
Nasdaq Phlx LLC).\3\
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    \3\ See SR-Phlx-2020-03 (not yet published).
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    The Exchange proposes to reserve Sections 17-22 within General 2,
Organization and Administration. The Exchange proposes to reserve
Sections 11-14 within Options 2, Options Market Participants. The
Exchange proposes to reserve Sections 17-21 within Options 4A, Options
Index Rules. The Exchange proposes to reserve new section Options 4B.
The Exchange proposes to reserve Sections 8-13 within Options 6,
Options Trade Administration. The Exchange proposes to reserve Section
7 within Options 6C, which is currently titled ``Exercises and
Deliveries.'' The Exchange proposes to retitle Options 6C as
``Margins'' to harmonize the title to the other Nasdaq affiliated
markets. The Exchange proposes to reserve Section 24 within Options 9,
Business Conduct.

Definitions
    The Exchange proposes to add the definition of an ``Away Best Bid
or Offer'' or ``ABBO'' within Options 1, Section 1(a)(1). This term is
utilized throughout the Rulebook. Defining this term will bring greater
transparency to the Rulebook. The Exchange proposes to renumber the
remaining definitions and also update corresponding cross-references
within Options 7, Section 1.
    The Exchange proposes to remove the definitions of ``class of
options'' and ``series of options'' as they are duplicative of the
definitions for ``class'' and ``series.'' The Exchange proposes to
remove the terms ``System Book Feed'' and ``System Securities'' from
the Options 1, Section 1. The term ``System Book Feed'' is not utilized
in the Rulebook currently. The term ``System Securities'' is only
utilized within the definition of the term ``System'' at current
Options 1, Section 1(a)(60) and within Options 3, Section 8, Opening
and Halt Cross.'' The term is simply replaced by referring to option
series. The Exchange believes that replacing the term with the term
``option series'' will make the Rulebook clear.
    Finally, the Exchange is removing the phrase ``, or the United
States dollar'' from the definition of ``foreign currency'' within
current Options 1, Section 1(a)(20). This reference is not needed in
this string cite because the United States dollar is a medium of
exchange as noted in the introductory phrase to the string cite.
Relocation of Options 2 Rules
    The Exchange proposes to relocate Options 2, Section 4(d) and
Section 5(e) to Options 2, Section 6, which is currently reserved.
Specifically, the Exchange proposes to relocate these sections into
Options 6(a) and (b), respectively. Proposed Options 2, Section 6 would
be titled ``Market Maker Orders.'' This relocation will harmonize the
location of these rule to other Nasdaq affiliated markets.
Removal of Various Listings
Mini Options
    The Exchange has not listed Mini Options in several years and is
proposing to delete its listing rules and other ancillary trading rules
related to the listing of Mini Options. The Exchange notes that it has
no open interest in Mini Options.
    Specifically, the Exchange proposes to amend Options 3, Section 2
(Units of Trading and Meaning of Premium Quotes and Orders), Options 3,
Section 3 (Minimum Increments) and Options 4, Section 5 (Series of
Options Contracts Open for Trading) at Supplementary Material .15) to
remove references to the handling of Mini Options in the System. The
Exchange also proposes to remove pricing for Mini Options within
Options 7, Section 2 (Nasdaq Options Market--Fees and Rebates). The
Exchange is also amending Supplementary Material .01 to Options 4A,
Section 2.
    In the event that the Exchange desires to list Mini Options in the
future, it would file a rule change with the Commission to adopt rules
to list Mini Options.
U.S. Dollar-Settled Foreign Currency Options
    The Exchange has not listed U.S. Dollar-Settled Foreign Currency
Options (``FCOs'') in several years and is proposing to delete its
listing rules and other ancillary trading rules related to the listing
of FCOs. The Exchange notes that it has no open interest in FCOs.
    Specifically, the Exchange proposes to amend Supplementary Material
.16 to Options 4, Section 5 (Series of Options Contracts Open for
Trading) to remove references to the handling of FCOs in the System.
    In the event that the Exchange desires to list FCOs in the future,
it would file a rule change with the Commission to adopt rules to list
FCOs.
Mini-Nasdaq-100 Index
    The Exchange has not listed Mini-Nasdaq-100 Index options or
``MNX'' or ``Mini-NDX'' in several years and is proposing to delete its
listing rules and other ancillary trading rules related to the listing
of Mini-Nasdaq-100 Index options. The Exchange notes that it has no
open interest in Mini-Nasdaq-100 Index options.
    Specifically, the Exchange proposes to amend Supplementary Material
.05 to Options 4, Section 5 (Series of Options Contracts Open for
Trading) and Options 4A, Section 12 (Terms of Index Options Contracts)
to remove references to the handling of Mini-Nasdaq-100 Index options
in the System.
    In the event that the Exchange desires to list Mini-Nasdaq-100
Index options in the future, it would file a rule change with the
Commission to adopt rules to list Mini-Nasdaq-100 Index options.
MSCI EM Index and MSCI EAFE Index
    The Exchange has not listed the MSCI EM Index or MSCI EAFE Index in
several years and is proposing to delete its listing rules and other
ancillary trading rules related to the listing of the MSCI EM Index and
MSCI EAFE Index. The Exchange notes that it has no open interest in the
MSCI EM Index and MSCI EAFE Index.
    Specifically, the Exchange proposes to amend Supplementary Material
.01 to Options 4A, Section 2 (Definitions), Section 3 (Designation of a
Broad-Based Index), Section 6 (Position Limits for Broad-Based Index
Options), Section 11(Trading Sessions) Section 12 (Terms of Index
Options Contracts), Section 14 (Disclaimers) to remove references to
the handling of the MSCI EM Index and MSCI EAFE Index in the System.
    The Exchange proposes to add rule text within Options 4A, Section
12(a)(6) which indicates, ``There are currently no P.M.-settled index
options approved for trading on NOM.''
    In the event that the Exchange desires to list the MSCI EM Index
and/or MSCI EAFE Index in the future, it would file a rule change with
the Commission to adopt rules to list the MSCI EM Index and/or MSCI
EAFE Index.
Minimum Increments
    The Exchange proposes to amend Options 3, Section 3 to relocate
Section 3(a)(3) into a new Supplementary Material .01 and title the
section, ``Penny Pilot Program.'' The Exchange also proposes to amend a
typographical error in Options 3, Section 3(a)(3) to replace ``QQQQs''
with ``QQQs.'' The other changes relate to the removal of Mini Options
as explained herein.
Mass Cancellation of Trading Interest
    The Exchange proposes to amend the description of Options 3,
Section 19 titled ``Mass Cancellation of Trading Interest.'' The
proposed amended rule would state, '' An Options Participant may cancel
any bids, offers, and orders in any series of options by requesting NOM
Market Operations \4\ staff to effect such cancellation as per the
instructions of the Options Participant.'' The Exchange is not amending
the System with respect to this rule change. The proposed amended
language merely makes clear that an Options Participant may contact NOM
Market Operations and request the Exchange to cancel any bid, offer or
order in any series of options. This is a voluntary service that is
offered to market participants. The Exchange, would cancel such bid,
offer or order pursuant to the Member's instruction. This proposed new
rule would conform to rules of other Nasdaq affiliated markets.\5\
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    \4\ The request to Market Operations is a manual request which
is made telephonically.
    \5\ See Nasdaq Phlx LLC (``Phlx''), Nasdaq ISE, LLC (``ISE''),
Nasdaq GEMX, LLC (``GEMX'') and Nasdaq MRX, LLC (``MRX'') Options 3,
Section 19.

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Order Routing
    Phlx recently amended Options 5, Section 4.\6\ The Exchange
proposes to make similar amendments to the NOM Rule. The amendments
clarity and correct the rule text to represent current System
functionality. Currently, Options 5, Section 4(a)(iii)(A), relating to
DNR Orders, states,
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    \6\ See Securities Exchange Act Release No. 87811 (December 20,
2019), 84 FR 72017 (December 30, 2019) (SR-Phlx-2019-56).

    Any incoming order interacting with such a resting DNR Order
will execute at the ABBO price, unless (1) the ABBO is improved to a
price which crosses the DNR displayed price, in which case the
incoming order will execute at the previous ABBO price; (2) the ABBO
is improved to a price which locks the DNR's displayed price, in
which case the incoming order will execute at the DNR's displayed
price. Should the best away market move to an inferior price level,
the DNR Order will automatically re-price from its one MPV inferior
to the original away best bid/offer price to one MPV away from the
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new away best bid/offer price or its original limit price.

    The Exchange proposes to make non-substantive amendments to this
rule text within Options 5, Section 4(a)(iii)(A), relating to DNR
Orders, to align the rule text with Phlx Rule 1093. The Exchange
proposes to instead provide:

    Any incoming order interacting with such a resting DNR Order
will execute at the ABBO price, unless (1) the ABBO is improved to a
price which crosses the DNR Order's already displayed price, in
which case the incoming order will execute at the previous ABBO
price as the away market crossed a displayed price; or (2) the ABBO
is improved to a price which locks the DNR Order's displayed price,
in which case the incoming order will execute at the DNR Order's
displayed price. Should the best away market move to an inferior
price level, the DNR Order will automatically re-price from its one
MPV inferior to the original ABBO and display one MPV away from the
new ABBO or its original limit price.

    This proposed new text intends to make clear that if the Exchange's
System is executing an incoming order against a resting DNR Order which
is displayed, it would not consider an updated ABBO which crossed the
displayed DNR Order. The System would not take into account the away
market order or quote which crossed the DNR Order's displayed price.
The Exchange is not trading-through an away market in this scenario,
rather an away market is crossing NOM's displayed market and therefore
that market has the obligation not to trade-through NOM's displayed
price. A similar change is being made to the last sentence of Options
5, Section 4(a)(iii)(B)(4) for SEEK Orders and the last sentence
Options 5, Section 4(a)(iii)(C)(4) for SRCH Orders. By way of example,
consider the following sequence of events in the System:

9:45:00:00:00--MIAX Quote 0.95 x 1.20
9:45:00:00:10--OPRA updates MIAX BBO 0.95 x 1.20
9:45:00:00:20--NOM Local BBO Quote 1.00 x 1.15
9:45:00:00:30--OPRA disseminates NOM BBO updates: 1.00 x 1.15
9:45:00:00:35: CBOE Quote 1.00 x 1.12
9:45:00:00:45--OPRA disseminates CBOE BBO 1.00 x 1.12
9:45:00:00:50--DNR Order: Buy 5 @1.15 (exposes @ABBO of 1.12, displays
1 MPV from ABBO @1.11)
9:45:00:00:51--OPRA disseminates NOM BBO updates: 1.11 x 1.15 (1.11
being the DNR Order displaying 1 MPV from ABBO)
9:45:00:00:60--MIAX Quote updates to 1.00 x 1.10 (1.10 crosses the
displayed DNR Order price, violating locked/crossed market rules;
henceforth, we need not protect this price)
9:45:00:00:65--OPRA disseminates MIAX BBO 1.00 x 1.10
9:45:00:00:75--NOM Market Maker Order to Sell 5 @1.09
9:45:00:00:76--Market Maker Order immediately executes against DNR
Order 5 contracts @1.12 (1.12 being the `previous' ABBO price
disseminated by CBOE before the receipt of the DNR Order that was
subsequently and illegally crossed by MIAX's 2nd quote)
9:45:00:00:77--OPRA disseminates NOM BBO updates: 1.10 x 1.15 (reverts
back to BBO set by NOM Local Quote since the DNR Order has executed)

    The remainder of the changes to Options 5, Section 4(a)(iii)(A) are
non-substantive changes designed to bring clarity to the rule text. By
way of example, the Exchange proposes to add the word ``Order'' after
``DNR,'' change the words ``away best bid/offer price'' to the acronym
``ABBO'' and add the words ``display'' and ``already'' to the rule text
to make clear that the intent of the sentence.
    The Exchange proposes to amend Options 5, Section 4(a)(iii)(B)(4)
to amend the sentence which provides, ``If there exists a locked ABBO
when the SEEK Order is entered onto the Order Book, the SEEK Order will
display at the locked ABBO price.'' The Exchange is amending this
sentence to provide, ``If there exists a locked ABBO when the SEEK
Order is entered onto the Order Book, the SEEK Order will be entered at
the ABBO price and displayed one MPV inferior to the ABBO.'' This is
true of both SEEK and SRCH Orders. Where there exists a locked ABBO
when the SEEK Order or SRCH Order is entered onto the Order Book, the
SEEK Order or SRCH Order will be entered into the Order Book at the
ABBO price and displayed one MPV inferior to the ABBO. The Exchange is
proposing to add additional rule text to Options 5, Section
4(a)(iii)(B)(4). This amendment corrects the current rule text.
    The Exchange also proposes to remove the sentence, ``When checking
the Order Book, the System will seek to execute at the price at which
it would send the order to an away market.'' The Exchange proposes to
remove this sentence because the price at which the order would route
in explained in greater detail within Options 5, Section
4(a)(iii)(B)(4). Also, this sentence is confusing because the price at
which an order would execute is dependent on the scenario within which
an order would route. Removing this sentence will remove any confusion
related to the price at which the order would route. The Exchange also
proposes to remove the same sentence concerning SRCH Orders within
Options 5, Section 4(a)(iii)(C)(4).
Other Amendments
    The Exchange proposes to correct the lettering within General 9,
Section 1, General Standards. The Exchange proposes to correct a
typographical error within Options 4A, Section 12. Specifically, the
reference to Options 4, Section 6 should have referenced Options 4,
Section 5 instead. The Exchange proposes to remove a reference to
paragraph (c) within Options 5, Section 2, as there is no paragraph (c)
within the Rule. The Exchange also proposes to update rulebook
citations within Options 7, Pricing Schedule to reflect the proposed
changes to Options 1, Section 1 (Definitions).
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).

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Rulebook Harmonization
    The Exchange's proposal to reserve various sections of the Rules in
order to harmonize its Rulebook with other Nasdaq affiliated markets is
not a substantive amendment.
Definitions
    The Exchange's proposal to add the definition of an ``Away Best Bid
or Offer'' or ``ABBO'' within Options 1, Section 1(a)(1) is consistent
with the Act because these amendments will add transparency to the
Rulebook. The Exchange's proposal to remove the terms ``class of
options,'' ``series of options,'' ``System Book Feed'' and ``System
Securities'' from the Options 1, Section 1 is also consistent with the
Act. The term ``System Book Feed'' is not utilized in the Rulebook
currently and therefore this term does not need to be defined. The term
``System Securities'' is only utilized within the definition of the
term ``System'' at current Options 1, Section 1(a)(60) and within
Options 3, Section 8, Opening and Halt Cross.'' Replacing the term with
the term ``option series'' will make the Rulebook clear.
Relocation of Options 2 Rules
    The proposal to relocate Options 2, Section 4(d) and Section 5(e)
to Section 6 into Options 6(a) and (b), respectively is consistent with
the Act. This amendment is not substantive.
Removal of Various Listings
Mini Options
    The Exchange's proposal to removal references to the listing and
handling of Mini Options is consistent with the Act because Mini
Options have not been listed in several years. Also, the Exchange notes
that it has no open interest in Mini Options. In the event that the
Exchange desires to list Mini Options in the future, it would file a
rule change with the Commission to adopt rules to list Mini Options.
U.S. Dollar-Settled Foreign Currency Options
    The Exchange's proposal to removal references to the listing and
handling of FCOs is consistent with the Act because FCOs have not been
listed in several years. Also, the Exchange notes that it has no open
interest in FCOs. In the event that the Exchange desires to list FCOs
in the future, it would file a rule change with the Commission to adopt
rules to list FCOs.
Mini-Nasdaq-100 Index
    The Exchange's proposal to removal references to the listing and
handling Mini-Nasdaq-100 Index options is consistent with the Act
because Mini-Nasdaq-100 Index options have not been listed in several
years. Also, the Exchange notes that it has no open interest in Mini-
Nasdaq-100 Index options. In the event that the Exchange desires to
list Mini-Nasdaq-100 Index options in the future, it would file a rule
change with the Commission to adopt rules to list Mini-Nasdaq-100 Index
options.
MSCI EM Index and MSCI EAFE Index
    The Exchange's proposal to removal references to the listing and
handling of MSCI EM Index and MSCI EAFE Index options is consistent
with the Act because MSCI EM Index and MSCI EAFE Index options have not
been listed in several years. Also, the Exchange notes that it has no
open interest in MSCI EM Index and MSCI EAFE Index options. In the
event that the Exchange desires to list MSCI EM Index and MSCI EAFE
Index options in the future, it would file a rule change with the
Commission to adopt rules to list MSCI EM Index and MSCI EAFE Index
options.
Minimum Increments
    The Exchange's proposal to relocate parts of Options 3, Section 3
into a new Supplementary Material .01 and add a title for the Penny
Pilot Program is consistent with the Act. This amendment will bring
greater transparency to the Exchange's Rules.
Mass Cancellation of Trading Interest
    The Exchange's proposal to amend the rule text of Mass Cancellation
of Trading Interest rule within Options 3, Section 19 is consistent
with the Act because the Exchange desires to conform the rule text to
other Nasdaq affiliated markets.\9\ Permitting Participants to contact
Market Operations as a manual alternative to automated functionality,
which similarly allows Participants to cancel interest, provides
Participants experiencing their own system issues with a means to
manage risk. Today, Participants are able to cancel interest, in an
automated fashion through protocols \10\ and the Kill Switch.\11\ This
is a voluntary services offered to all Participants.
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    \9\ See note 5 above.
    \10\ See Options 3 at Supplementary Material .03 to Section 7.
    \11\ See Options 3, Section 17.
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    This amended rule reflects the Exchange's current practice of
allowing Participants to contact NOM Market Operations and request the
Exchange to cancel any bid, offer or order in any series of options.
The Exchange would continue to permit Participants to contact market
operations and manually request cancellation of interest. The proposed
amended language will make clear that an Options Participant may
contact NOM Market Operations and request the Exchange to cancel any
bid, offer or order in any series of options. The Exchange would
continue to cancel such bid, offer or order pursuant to the
Participant's instruction.
    This service, which permits Participants to cancel interest, does
not diminish a Market Maker's obligation with respect to providing two-
sided quotations and this rule is not inconsistent with other firm
quote obligations of the Market Maker. Upon the request of a
Participant, NOM Market Operations will continue to manually input a
mass cancellation message into the System consistent with the
Participant's instruction to cancel trading interest. Once the mass
cancellation message is entered into the System by NOM Market
Operations, the message will be accepted by the System in the order of
receipt in the queue such that the interest that was already accepted
into the System will be processed prior to the mass cancellation
message. In addition, mass cancellation messages entered into the
System by NOM Market Operations are handled by the System through the
same queuing mechanism that a quote or order message is handled by the
System. The Exchange notes its processing of a mass cancellation
message inputted by NOM Market Operations and handled by the System is
consistent with firm quote and order handling rules.
Order Routing
    The Exchange's proposal to amend the sentence within Options 5,
Section 4(a)(iii)(A) related to DNR Orders is consistent with the Act.
The Exchange proposes to amend this rule text to clarify the current
rule text. Specifically, the Exchange proposes to state, ``Any incoming
order interacting with such a resting DNR Order will execute at the
ABBO price, unless (1) the ABBO is improved to a price which crosses
the DNR Order's already displayed price, in which case the incoming
order will execute at the previous ABBO price as the away market
crossed a displayed price; or (2) the ABBO is improved to a price which
locks the DNR Order's displayed price, in which case the incoming order
will execute at the DNR Order's displayed price.'' The System would not
take into account the away market order or quote which crossed the
DNR's displayed price. The Exchange is

not trading-through an away market in this scenario, rather an away
market is crossing NOM's displayed market and therefore that market has
the obligation not to trade-through NOMs displayed price. Similar
amendments were made to Options 5, Section 4(a)(iii)(B)(4) and Section
4(a)(iii)(C)(4). The remainder of the changes to this paragraph are
clarifying non-substantive amendments.
    The Exchange's proposal to remove the following sentence from
Options 5, Section 4(a)(iii)(B)(4) and Section 4(a)(iii)(C)(4), ``When
checking the Order Book, the System will seek to execute at the price
at which it would send the order to an away market,'' is consistent
with the Act because this sentence is vague. The price at which an
order would execute is dependent on the scenario within which an order
would route. Removing this sentence will remove any confusion related
to the price at which the order would route. The proposed rule would
also add additional detail about the scenarios under which an order
would route away.
    With respect to SEEK Orders within Options 5, Section 4(a)(iii)(B)
as well as SRCH Orders within Options 5, Section 4(a)(iii)(C) the
amendments are consistent with the Act as they protect investors and
the general public by amending current incorrect rule text. If there
exists a locked ABBO when the SEEK Order or SRCH Order is entered onto
the Order Book, the SEEK Order or SRCH Order will be entered at the
ABBO price and displayed one MPV inferior to the ABBO. The amendments
to Options 5, Section 4 represent current System functionality. This
new rule text will provide Participants with clarity as to the manner
in which the System handles locked market conditions during routing.
The proposed rule text is similar to rule text within Phlx Rule 1093.
Other Amendments
    The Exchange's proposal to correct certain typographical errors and
update rulebook citations are not substantive.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
Rulebook Harmonization
    The Exchange's proposal to reserve various rules in connection with
a larger Rulebook harmonization do not impose an undue burden on
competition because these amendments are non-substantive.
Definitions
    The Exchange's proposal to add the definition of an ``Away Best Bid
or Offer'' or ``ABBO'' within Options 1, Section 1(a)(1) and remove the
terms ``class of options,'' ``series of options,'' ``System Book Feed''
and ``System Securities'' from the Options 1, Section 1 do not impose
an undue burden on competition because these amendments will add
transparency to the Rulebook.
Relocation of Options 2 Rules
    The proposal to relocate Options 2, Section 4(d) and Section 5(e)
to Section 6, into Options 6(a) and (b) does not burden competition as
this amendment is not substantive.
Removal of Various Listings
Mini Options
    The Exchange's proposal to removal references to the listing and
handling of Mini Options do not impose an undue burden on competition.
Mini Options have not been listed in several years. Also, the Exchange
notes that it has no open interest in Mini Options.
U.S. Dollar-Settled Foreign Currency Options
    The Exchange's proposal to remove references to the listing of U.S.
Dollar-Settled Foreign Currency Options (``FCOs'') does not impose an
undue burden on competition. FCOs have not been listed in several
years. The Exchange notes that it has no open interest in FCOs.
Mini-Nasdaq-100 Index
    The Exchange's proposal to removal references to the listing and
handling of Mini-Nasdaq-100 Index options does not impose an undue
burden on competition. Mini-Nasdaq-100 Index options have not been
listed in several years. Also, the Exchange notes that it has no open
interest in Mini-Nasdaq-100 Index options.
MSCI EM Index and MSCI EAFE Index
    The Exchange's proposal to removal references to the listing and
handling of MSCI EM Index and the MSCI EAFE Index does not impose an
undue burden on competition. Neither the MSCI EM Index nor the MSCI
EAFE Index have been listed in several years. Also, the Exchange notes
that it has no open interest in either the MSCI EM Index or the MSCI
EAFE.
Minimum Increments
    The Exchange's proposal to relocate parts of Options 3, Section 3
into a new Supplementary Material .01 and add a title for the Penny
Pilot Program do not impose an undue burden on competition as these
amendments are non-substantive.
Mass Cancellation of Trading Interest
    The Exchange's proposal to amend the rule text of the Mass
Cancellation of Trading Interest rule within Options 3, Section 19 does
not impose an undue burden on competition because there is no
corresponding change to the manner in which this service will be
offered. It will continue to be offered to all Participants.
Order Routing
    The Exchange believes that adding greater detail to its rules
concerning routing of orders does not impose an undue burden on
competition, rather it provides greater transparency as to the
potential outcomes when utilizing different routing strategies.
Further, the Exchange notes that market participants may elect not to
route their orders. The Exchange continues to offer various options to
its market participants with respect to routing.
Other Amendments
    The Exchange proposes to correct typographical error and update
rulebook citations do not impose and undue burden on competition as
these amendments are non-substantive.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.

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

    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. The Exchange
believes that adoption the term ``ABBO,'' would add greater
transparency to its rules, and that removing the rule text related to
various options listing which are no longer listed on the Exchange will
provide Participants with notice of the unavailability of these
listing. The Exchange also states that its amendment to its routing
rules protects investors and the general public by providing clarity
concerning the current operation of its System. The Exchange believes
that the amended rules will provide market participants with greater
information for each potential order routing strategy and, in general,
provide greater transparency. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\16\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2020-006 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-NASDAQ-2020-006. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NASDAQ-2020-006 and should be submitted
on or before March 10, 2020.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-03100 Filed 2-14-20; 8:45 am]
 BILLING CODE 8011-01-P


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[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)]
[Notices]
[Pages 50593-50594]
[FR Doc No: 2016-18137]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2013-0121; FMCSA-2013-0123; FMCSA-2013-0124; FMCSA-
2013-0125; FMCSA-2014-0102; FMCSA-2014-0104]

Qualification of Drivers; Exemption Applications; Hearing

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of renewal of exemptions; request for comments.

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SUMMARY: FMCSA announces its decision to renew the exemptions for 20
individuals from the hearing requirement in the Federal Motor Carrier
Safety Regulations (FMCSRs) for interstate commercial motor vehicle
(CMV) drivers. The exemptions enable these individuals to operate CMVs
in interstate commerce.

DATES: This decision was effective March 4, 2016. Comments must be
received on or before August 31, 2016.

FOR FURTHER INFORMATION CONTACT: Christine A. Hydock, Chief, Medical
Programs Division, Medical Programs Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>FMCSA, Department of Transportation, 1200 New
Jersey Avenue SE., Room W64-224, Washington, DC 20590-0001. Office
hours are from 8:30 a.m. to 5 p.m. Monday through Friday, except
Federal holidays.

SUPPLEMENTARY INFORMATION:

I. Electronic Access

    You may see all the comments online through the Federal Document
Management System (FDMS) at: http://www.regulations.gov.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov and/or Room W12-140 on the
ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., e.t., Monday through Friday,
except Federal holidays.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.

II. Background

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may grant an exemption
for up to 2 years if it finds ``such exemption would likely achieve a
level of safety that is equivalent to or greater than the level that
would be achieved absent such exemption.'' The statute also allows the
Agency to renew exemptions at the end of the 2-year period. The
physical qualification standard for drivers regarding hearing found in
49 CFR 391.41(b)(11) states that a person is physically qualified to
driver a CMV if that person:

    First perceives a forced whispered voice in the better ear at
not less than 5 feet with or without the use of a hearing aid or, if
tested by use of an audiometric device, does not have an average
hearing loss in the better ear greater than 40 decibels at 500 Hz,
1,000 Hz, and 2,000 Hz with or without a hearing aid when the
audiometric device is calibrated to American National Standard
(formerly ASA Standard) Z24.5--1951.

    49 CFR 391.41(b)(11) was adopted in 1970, with a revision in 1971
to allow drivers to be qualified under this standard while wearing a
hearing aid, 35 FR 6458, 6463 (April 22, 1970) and 36 FR 12857 (July 3,
1971).
    The 20 individuals listed in this notice have requested renewal of
their exemptions from the hearing standard in 49 CFR 391.41(b)(11), in
accordance with FMCSA procedures.

III. Request for Comments

    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the

statutory level of safety should immediately notify FMCSA. The Agency
will evaluate any adverse evidence submitted and, if safety is being
compromised or if continuation of the exemption would not be consistent
with the goals and objectives of 49 U.S.C. 31136(e) and 31315, FMCSA
will take immediate steps to revoke the exemption of a driver. FMCSA
encourages you to participate by submitting comments and related
materials.

IV. Basis for Renewing Exemptions

    Under 49 U.S.C. 31315(b)(1), an exemption may be granted for no
longer than two years from its approval date and may be renewed upon
application. In accordance with 49 U.S.C. 31136(e) and 31315, each of
the 20 applicants has satisfied the entry conditions for obtaining an
exemption from the hearing requirement (80 FR 18924; 80 FR 18926; 80 FR
22766; 80 FR 22768; 80 FR 60747). The Commercial Driver's License
Information System (CDLIS) and Motor Carrier Management Informatiom
System (MCMIS) are searched for crash and violation data. For non-CDL
holders, the Agency reviews the driving records from the State Driver's
Licensing Agency (SDLA). These factors provide an adequate basis for
predicting each driver's ability to continue to drive safely in
interstate commerce.

V. Exemption Decision

    The 20 drivers in this notice remain in good standing with the
Agency and have not exhibited any medical issues that would compromise
their ability to safely operate a CMV during the previous 2-year
exemption period. FMCSA has concluded that renewing the exemptions for
each of these applicants is likely to achieve a level of safety equal
to that existing without the exemption. Therefore, FMCSA has decided to
renew each exemption for a two-year period. They are:

Joshua Arango (FL), Michael Beebe (NJ), Andrew Deuschle (TX), David
Garland (ME), Daniel Grossinger (MD), Roman Landa (CA), Claire Mitcham
(TX), Quinton Murphy (WI), Michael Paasch (NE), Jeffrey Pagenkopf (MN),
Kelly Pulvermacher (WI), Alfredo Ramirez (TX), Fernando Ramirez-Savon
(NM), Julie Ramirez (TX), Ralph Reno (PA), Adalberto Rodriguez (NY),
Andrey Shevchenko (MN), William Symonds (IL), Hayden Teesdale (TX),
Joshua Weaver (GA).

VI. Conditions and Requirements

    The exemptions are extended subject to the following conditions:
(1) Each driver must report any crashes or accidents as defined in 49
CFR 390.5; and (2) report all citations and convictions for
disqualifying offenses under 49 CFR part 383 and 49 CFR 391 to FMCSA.
In addition, the driver must also have a copy of the exemption when
driving, for presentation to a duly authorized Federal, State, or local
enforcement officials. The driver is prohibited from operating a
motorcoach or bus with passengers in interstate commerce. The exemption
does not exempt the individual from meeting the applicable CDL testing
requirements. Each exemption will be valid for two years unless
rescinded earlier by FMCSA. The exemption will be rescinded if: (1) The
person fails to comply with the terms and conditions of the exemption;
(2) the exemption has resulted in a lower level of safety than was
maintained before it was granted; or (3) continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315.

VII. Conclusion

    Based upon its evaluation of the 20 exemption applications, FMCSA
renews the exemptions of the aforementioned drivers from the hearing
requirement in 49 CFR 391.41(b)(11). In accordance with 49 U.S.C.
31136(e) and 31315, each exemption will be valid for 2 years unless
revoked earlier by FMCSA.

    Issued on: July 22, 2016.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2016-18137 Filed 7-29-16; 8:45 am]
 BILLING CODE 4910-EX-P


[Federal Register Volume 78, Number 55 (Thursday, March 21, 2013)]
[Notices]
[Pages 17390-17391]
[FR Doc No: 2013-06463]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP13-94-000]

Kinder Morgan Texas Pipeline LLC; Notice of Application

    Take notice that on March 1, 2013 Kinder Morgan Texas Pipeline LLC
(KM Texas), 1001 Louisiana Street, Houston, Texas 77002, filed in
Docket No. CP13-94-000, an application pursuant to section 3 of the
Natural Gas Act (NGA), to amend its authorization and Presidential
Permits to allow it to import and export natural gas from the United
States to Mexico utilizing KM Texas's existing cross-border facilities.
Specifically, KM Texas proposes to increase the authorized design
capacity of its border facilities from approximately 425 million cubic
feet (MMcf) per day to 700 MMcf per day to provide Pemex-Gas Y
Petroquimica Basica and other potential end users in Mexico with
increased gas supplies, all as more fully set forth in the application
which is on file with the Commission and open to public inspection.
This filing may also be viewed on the Commission's Web site at http://www.ferc.gov using the ``eLibrary'' link. Enter the docket number,
excluding the last three digits, in the docket number field to access
the document. For assistance, call<PHONE_NUMBER> or TTY, (202) 208-
3676.
    Any questions regarding this application should be directed to Lee
Baskin, Director, Regulatory, Kinder Morgan Texas Pipeline Group, 1001
Louisiana Street, Suite 1000, Houston, Texas 77002, or phone (713) 369-
8810 or facsimile<PHONE_NUMBER> or email<EMAIL_ADDRESS>    Pursuant to section 157.9 of the Commission's rules, 18 CFR 157.9,
within 90 days of this Notice the Commission staff will either:
Complete its environmental assessment (EA) and place it into the
Commission's public record (eLibrary) for this proceeding; or issue a
Notice of Schedule for Environmental Review. If a Notice of Schedule
for Environmental Review is issued, it will indicate, among other
milestones, the anticipated date for the

Commission staff's issuance of the final environmental impact statement
(FEIS) or EA for this proposal. The filing of the EA in the
Commission's public record for this proceeding or the issuance of a
Notice of Schedule for Environmental Review will serve to notify
federal and state agencies of the timing for the completion of all
necessary reviews, and the subsequent need to complete all federal
authorizations within 90 days of the date of issuance of the Commission
staff's FEIS or EA.
    There are two ways to become involved in the Commission's review of
this project. First, any person wishing to obtain legal status by
becoming a party to the proceedings for this project should, on or
before the below listed comment date, file with the Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426, a
motion to intervene in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 385.214 or
385.211) and the Regulations under the NGA (18 CFR 157.10). A person
obtaining party status will be placed on the service list maintained by
the Secretary of the Commission and will receive copies of all
documents filed by the applicant and by all other parties. A party must
submit 14 copies of filings made with the Commission and must mail a
copy to the applicant and to every other party in the proceeding. Only
parties to the proceeding can ask for court review of Commission orders
in the proceeding.
    However, a person does not have to intervene in order to have
comments considered. The second way to participate is by filing with
the Secretary of the Commission, as soon as possible, an original and
two copies of comments in support of or in opposition to this project.
The Commission will consider these comments in determining the
appropriate action to be taken, but the filing of a comment alone will
not serve to make the filer a party to the proceeding. The Commission's
rules require that persons filing comments in opposition to the project
provide copies of their protests only to the party or parties directly
involved in the protest.
    Motions to intervene, protests and comments may be filed
electronically via the internet in lieu of paper; see, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.
    Comment Date: 5:00 p.m. Eastern Time on April 4, 2013.

    Dated: March 14, 2013.
Kimberly D. Bose,
Secretary.
[FR Doc. 2013-06463 Filed 3-20-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8761-8763]
[FR Doc No: 2014-03182]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71510; File No. SR-CBOE-2014-011]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to a CBOE Stock Exchange Fee for
Qualification Examination Waiver Requests

February 7, 2014.
    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 February 3, 2014 Chicago Board Options Exchange, Incorporated
(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.
---------------------------------------------------------------------------

    \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

    Chicago Board Options Exchange, Incorporated (the ``Exchange'' or
``CBOE'') proposes to amend the CBOE Stock Exchange (``CBSX'') Fees
Schedule to establish a fee for

qualification examination waiver requests. CBSX is CBOE's stock trading
facility. 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
    CBOE Rule 3.6A, Interpretation and Policy .05, authorizes the
Exchange, in exceptional cases and where good cause is shown, to waive
qualification examinations and accept other standards as evidence of an
applicant's qualification for registration. This authority is to be
exercised in exceptional cases and where good cause is shown by the
applicant. The rule further states that advanced age or physical
infirmity, will not individually of themselves constitute sufficient
grounds to waive a qualification examination. Experience in fields
ancillary to the securities business may constitute sufficient grounds
to waive a qualification examination.
    The Exchange has entered into a regulatory services agreement
(``RSA'') with the Financial Industry Regulatory Authority, Inc.
(``FINRA'') pursuant to which FINRA will process qualification
examination waiver requests on behalf of the Exchange and CBSX
(``Waiver Requests'').\3\ Under the RSA, CBSX Trading Permit Holders
(``TPHs'') and persons associated with CBSX TPHs seeking a waiver of a
qualification examination will submit a Waiver Request to FINRA.\4\
FINRA will process all Waiver Requests submitted by CBSX TPHs and their
associated persons, whether the Waiver Request is for a FINRA
examination or a non-FINRA examination (e.g., the Series 56
examination).
---------------------------------------------------------------------------

    \3\ CBOE Rule 15.9(b) authorizes the Exchange to enter into
agreements with another self-regulatory organization to provide
regulatory services to the Exchange to assist the Exchange in
discharging its obligations under Section 6 and Section 19(g) of the
Securities Exchange Act of 1934.
    \4\ Currently, Waiver Requests must be submitted to FINRA
through the FINRA Firm Gateway.
---------------------------------------------------------------------------

    FINRA will review each Waiver Request based on guidelines approved
by the Exchange and provide the Exchange with a recommendation
regarding the disposition of the Waiver Request. The Exchange will make
the final decision regarding whether or not to grant or deny a Waiver
Request.\5\ FINRA will maintain files and records made, collected or
otherwise created by FINRA in the course of performing services under
the RSA. Such files and records shall include, but not be limited to,
FINRA Waiver Request disposition recommendations and the basis for its
recommendations,\6\ CBOE decisions and the basis for its decisions,\7\
and letters sent to requesting CBSX TPHs communicating CBOE's
decisions.
---------------------------------------------------------------------------

    \5\ Notwithstanding the RSA, the Exchange shall retain ultimate
legal responsibility for, and control of, its self-regulatory
responsibilities.
    \6\ The recommendation provided to CBOE will include a detailed
explanation and justification as to whether to grant or deny the
Waiver Request, and in those cases where the recommendation is to
grant a waiver, the reasoning shall support why FINRA believes it is
an exceptional case and that good cause has been shown to warrant
the granting of the Waiver Request.
    \7\ CBOE will notify FINRA in writing of its final decision
regarding whether to grant or deny a Waiver Request, including any
additional information regarding such decision.
     The Commission expects CBOE to document in writing its
rationale for any decision when CBOE determines not to follow
FINRA's recommendation.
---------------------------------------------------------------------------

    The Exchange will pay a fee to FINRA under the RSA for each Waiver
Request of a non-FINRA examination (e.g., the Series 56 examination)
processed by FINRA. The Exchange proposes to charge CBSX TPHs a fee of
$200 for each Waiver Request of a non-FINRA examination processed by
FINRA. The proposed fee would help the Exchange recoup its costs under
the RSA.
    The proposed fee would be effective on February 3, 2014.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\9\ which requires that Exchange rules provide for
the equitable allocation of reasonable dues, fees, and other charges
among its Trading Permit Holders and other persons using its
facilities. Additionally, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \10\ requirement that the
rules of an exchange not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers. The Exchange believes
the proposed fee is reasonable because it would help the Exchange
recoup its costs in engaging FINRA to process Waiver Requests of non-
FINRA examinations by CBSX TPHs and their associated persons. The
Exchange believes the proposed fee is equitable and not unfairly
discriminatory because it would apply equally to all CBSX TPHs who
submit Waiver Requests of non-FINRA examinations.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ Id. [sic]
---------------------------------------------------------------------------

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 Exchange does not believe
that the proposed fee will impose an unnecessary burden on intramarket
competition because it would apply equally to all CBSX TPHs who submit
Waiver Requests of non-FINRA examinations. The Exchange does not
believe that the proposed fee will impose an unnecessary burden on
intermarket competition because the fee would only apply to CBSX TPHs.

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

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

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of

the purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2014-011 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-2014-011. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2014-011 and should be
submitted on or before March 6, 2014.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03182 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P