[Federal Register: May 14, 2007 (Volume 72, Number 92)]
[Notices]
[Page 27156-27159]
[DOCID:fr14my07-66]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55724; File No. SR-CBOE-2007-39]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of Proposed Rule Change Regarding Penny
Price Improvement

May 8, 2007.
    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 April 24, 2007, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been substantially
prepared by the CBOE. 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

    The CBOE proposes to amend its Rules regarding penny price
improvement for options not currently quoted in one-cent increments.
The text of the proposed rule change is set forth below. Proposed new
language is italicized; and proposed deletions are [bracketed].
* * * * *

Rule 6.13B. Penny Price Improvement

    The Exchange may designate one or more options trading on the
Hybrid System for inclusion in the Penny Price Improvement Program.
Under this program, the Exchange will allow all users to provide price
improvement beyond the Exchange's disseminated quotation (``Penny
Pricing'') for classes or series that are not already quoted in one-
cent increments and for which the Simple Auction Liaison system in Rule
6.13A is not in effect.
    (a) Electronic Penny Pricing. Electronic penny prices may be
established as follows:
    (1) Market-Makers. Market-Makers may electronically provide the
Exchange with indications of interest that are superior to their own
quotations in increments no smaller than one-cent. Such indications
shall be firm for all interest received by the Exchange. The Exchange
shall disseminate such

interest using standard quoting increments by rounding the limit price
to the nearest standard quoting increment that does not violate the
limit price.
    (2) Orders. Public Customers and all other users may electronically
submit to the Exchange orders priced in one-cent increments. The
Exchange shall disseminate such orders using standard quoting
increments by rounding the limit price to the nearest standard quoting
increment that does not violate the limit price.
    All Penny Pricing submitted pursuant to (1) or (2) above shall be
filed by the System for order allocation purposes but shall not be
visible. The Exchange may append an indicator to its disseminated
quotation to indicate the existence of Penny Pricing in the relevant
side of a series when it exists, but no information regarding the price
and size of the Penny Pricing shall be made available.
    If an order is received by the Hybrid System that could trade
against Penny Pricing and where the Exchange's disseminated quotation
is the NBBO, it will automatically execute against the Penny Pricing
pursuant to the Exchange's normal allocation procedures.
    (b) Open Outcry Penny Pricing. Oral bids (offers) provided by in-
crowd market participants may be expressed in one-cent increments in
response to an order represented in open outcry provided that: (1) The
oral bids (offers) better the corresponding bid (offer) in the
Exchange's disseminated quotation; and (2) any resulting transaction(s)
is consistent with the requirements of Rule 6.83.
    The appropriate Procedure Committee may also determine on a class-
by-class basis to make the split-price priority provisions of Rule 6.47
applicable to a class that is subject to Penny Pricing under this rule.
    For purposes of this rule, ``in-crowd market participants''
includes in-crowd Market-Makers, an in-crowd DPM or LMM, and Floor
Brokers or PAR Officials representing orders in the trading crowd.
    (c) Prior to effecting any transactions in open outcry in one-cent
increments, Exchange members must electronically ``sweep'' any Penny
Pricing interest in the Hybrid System so as not to violate the priority
of such Penny Pricing.
    (d) All pronouncements regarding the applicability of this rule
will be announced to the membership via Regulator Circular.
* * * * *
Rule 6.45 Priority of Bids and Offers--Allocation of Trades
    Except as provided by Rules, including but not limited to Rule
6.2A, 6.8, 6.9, 6.13, 6.13B, 6.45A, [Rule] 6.47, [Rule] 6.74, [Rule]
8.87 and [CBOE] Exchange Regulatory Circulars approved by the [SEC]
Commission concerning Participation Entitlements [Rights], the
following rules of priority shall be observed with respect to bids and
offers:
    (a)-(e) No change.
    * * * Interpretations and Policies:
    .01-.02 No change.
* * * * *
Rule 6.45A Priority and Allocation of Equity Option Trades on the CBOE
Hybrid System
    6.45A Generally: No change.
    (a)-(e) No change.
    * * * Interpretations and Policies:
    .01 Principal Transactions: Order entry firms may not execute as
principal against orders they represent as agent unless: (i) Agency
orders are first exposed on the Hybrid System for at least three (3)
seconds, (ii) the order entry firm has been bidding or offering for at
least (3) seconds prior to receiving an agency order that is executable
against such bid or offer, or (iii) the order entry firm proceeds in
accordance with the crossing rules contained in Rule 6.74. This
paragraph also shall apply to orders resting on the Hybrid System in
penny increments pursuant to Rule 6.13B. In such cases, agency orders
priced in penny increments are deemed ``exposed'' pursuant to (i)
above, and order entry firm orders priced in penny increments are
deemed bids or offers pursuant to (ii) above.
    .02 Solicitation Orders. Order entry firms must expose orders they
represent as agent for at least three (3) seconds before such orders
may be executed electronically via the electronic execution mechanism
of the Hybrid System, in whole or in part, against orders solicited
from members and non-member broker-dealers to transact with such
orders. This paragraph also shall apply to agency orders resting on the
Hybrid System in penny increments pursuant to Rule 6.13B. In such
cases, agency orders priced in penny increments are deemed ``exposed''
pursuant to this paragraph.
* * * * *
Rule 6.45B Priority and Allocation of Trades in Index Options and
Options on ETFs on the CBOE Hybrid System
    6.45B Generally: No change.
    (a)-(d) No change.
    * * * Interpretations and Policies:
    .01 Principal Transactions: Order entry firms may not execute as
principal against orders they represent as agent unless: (i) Agency
orders are first exposed on the Hybrid System for at least three (3)
seconds, (ii) the order entry firm has been bidding or offering for at
least (3) seconds prior to receiving an agency order that is executable
against such bid or offer, or (iii) the order entry firm proceeds in
accordance with the crossing rules contained in Rule 6.74. This
paragraph also shall apply to orders resting on the Hybrid System in
penny increments pursuant to Rule 6.13B. In such cases, agency orders
priced in penny increments are deemed ``exposed'' pursuant to (i)
above, and order entry firm orders priced in penny increments are
deemed bids or offers pursuant to (ii) above.
    .02 Solicitation Orders. Order entry firms must expose orders they
represent as agent for at least three (3) seconds before such orders
may be executed electronically via the electronic execution mechanism
of the Hybrid System, in whole or in part, against orders solicited
from members and non-member broker-dealers to transact with such
orders. This paragraph also shall apply to agency orders resting on the
Hybrid System in penny increments pursuant to Rule 6.13B. In such
cases, agency orders priced in penny increments are deemed ``exposed''
pursuant to this paragraph.
* * * * *
    Rule 6.47. Priority on Split-Price Transactions Occurring in Open
Outcry
    (a)-(c) No change.
    * * * Interpretations and Policies:
    .01 No change.
    .02 The availability of split-price priority when an order is
executed in a one-cent increment pursuant to Rule 6.13B shall be
determined in accordance with Rule 6.13B(b).
* * * * *
Rule 6.74. Crossing Orders
    (a)-(f) No change.
    * * * Interpretations and Policies:
    .01-.08 No change.
    .09 For purposes of paragraphs (a), (b), and (d), the minimum
increment for bids and offers shall be one cent for orders that are
subject to the open outcry penny price improvement under Rule 6.13B.
Open outcry penny price improvement under Rule 6.13B shall not be
available for orders executed pursuant to paragraphs (c) and (f).
* * * * *

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

    In its filing with the Commission, CBOE 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 purpose of this filing is to allow Exchange users the expanded
ability to effect transactions in penny increments in classes and/or
series trading on CBOE's Hybrid System that are not already quoting in
penny increments.\3\ The Exchange would designate the classes/series
eligible for this penny pricing, and the penny pricing would be
available electronically and in open outcry. As proposed, all limit
orders electronically sent to CBOE (regardless of sender origin type)
could be expressed in a one-cent increment. The Exchange would round
the limit price to the nearest permissible quoted increment for display
purposes, but would maintain the one-cent increment limit price for
trade allocation purposes. For example, the CBOE market is 1-1.20 and
an order is received to buy 10 contracts at 1.08. CBOE would
disseminate a 1.05 bid for 10 contracts, and any subsequent sell market
order received by the Exchange would trade at 1.08 for up to 10
contracts (after that, the quote would revert back to 1-1.20).\4\
---------------------------------------------------------------------------

    \3\ In File No. SR-CBOE-2006-42, the Exchange proposed to allow
penny price improvement in open outcry. That filing has been
withdrawn and most of its provisions have been incorporated into
this filing, which also contemplates electronic penny price
improvement.
    \4\ The Exchange has represented that the system would not
execute an order at a price that would cause a trade-through of
another options exchange.
---------------------------------------------------------------------------

    An Exchange Market-Maker could also provide the Exchange with
indications to trade in one-cent increments that improve on the Market-
Maker's disseminated quotation. To the extent there is trading interest
from multiple sources at the same one-cent increment price, priority
will be established in the exact same manner as priority at a standard
quoting increment (i.e., normal allocation procedures are used). The
Exchange may attach an indicator to its publicly disseminated quote
indicating the existence of penny pricing for the series, but the size
and price of any penny pricing will not be displayed or made available
to anyone. If the indicator feature is activated, it will apply to all
classes/series participating in the penny pricing program.
    With respect to open outcry, crowd members would be able to provide
price improvement in one-cent increments over the Exchange's Best Bid
or Offer (``BBO''). The Exchange has represented that any resulting
trade would not cause a trade-through of another options exchange.
Further, prior to executing any order in open outcry in one-cent
increments, members would be required to electronically ``sweep'' any
penny pricing interest that may exist. The ``sweep'' would ensure that
better-priced orders resting in one-cent increments are executed prior
to the open outcry transaction and would also ensure that same priced
orders receive executions consistent with existing rules governing
priority of orders in the Hybrid book when trading with an order
represented in open outcry (CBOE Rules 6.45A(b) and 6.45B(b)).
    The applicability of split-price priority under CBOE Rule 6.47 to
transactions effected under proposed CBOE Rule 6.13B would be
determined by the appropriate option procedure committee, and the
mechanics of split-price priority in those instances would be the same
as the mechanics of split-price priority in five- and ten-cent
increments.
    In addition, open outcry penny pricing would generally be available
in instances where a Floor Broker is attempting to cross an order
pursuant to CBOE Rule 6.74. However, it would not be available in those
instances where (i) a Floor Broker is attempting to cross orders during
the opening rotation in open outcry \5\ or (ii) a Floor Broker is
utilizing the Exchange's SizeQuote Mechanism.\6\
---------------------------------------------------------------------------

    \5\ See CBOE Rule 6.74(c), which provides procedures for a floor
broker to cross orders during the opening rotation for a class of
options.
    \6\ See CBOE Rule 6.74(f), which describes the SizeQuote
Mechanism.
---------------------------------------------------------------------------

    Lastly, the restrictions contained in Interpretations and Policies
.01 and .02 under CBOE Rules 6.45A and 6.45B would continue to apply to
trading in penny increments, including the 3-second exposure
requirements, contained in those Interpretations and Policies.
2. Statutory Basis
    The Exchange believes that the proposed rule change 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 facilitate transactions in securities, to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and practices, and, in general, to protect investors
and the public interest. In particular, the Exchange believes that the
proposal will provide an opportunity for customers to receive price
improvement on their orders.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

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

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

    Written comments on the proposed rule change were neither solicited
nor received.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form http://www.sec.gov/rules/sro.shtml.
; or     Send an e-mail to<EMAIL_ADDRESS>Please include

File

No. SR-CBOE-2007-39 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
    All submissions should refer to File No. SR-CBOE-2007-39. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site at http://www.sec.gov/rules/sro.shtml.
 Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. 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 No. SR-
CBOE-2007-39 and should be submitted on or before June 4, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-9179 Filed 5-11-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: December 22, 2008 (Volume 73, Number 246)]
[Rules and Regulations]
[Page 78179-78180]
[DOCID:fr22de08-11]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2008-0999; Airspace Docket No. 08-AAL-30]

Revision of Class E Airspace; Toksook Bay, AK

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This action revises Class E airspace at Toksook Bay, AK to
provide adequate controlled airspace to contain aircraft executing
Standard Instrument Approach Procedures (SIAPs). One SIAP is being
amended for the Toksook Bay Airport. Additionally, one textual Obstacle
Departure Procedure (ODP) is being amended. This action revises
existing Class E airspace upward from 700 feet (ft.) and 1,200 ft.
above the surface at Toksook Bay Airport, Toksook Bay, AK.

DATES: Effective Date: 0901 UTC, March 12, 2009. The Director of the
Federal Register approves this incorporation by reference action under
title 1, Code of Federal Regulations, part 51, subject to the annual
revision of FAA Order 7400.9 and publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: Gary Rolf, AAL-538G, Federal Aviation
Administration, 222 West 7th Avenue, Box 14, Anchorage, AK 99513-7587;
telephone number<PHONE_NUMBER>; fax:<PHONE_NUMBER>; e-mail:
<EMAIL_ADDRESS>Internet address: http://www.faa.gov/about/
office_org/headquarters_offices/ato/service_units/systemops/fs/
alaskan/rulemaking/.

SUPPLEMENTARY INFORMATION:

History

    On Friday, October 17, 2008, the FAA proposed to amend part 71 of
the Federal Aviation Regulations (14 CFR part 71) to revise Class E
airspace upward from 700 ft. above the surface and from 1,200 ft. above
the surface at Toksook Bay, AK (73 FR 61750). The action was proposed
in order to create Class E airspace sufficient in size to contain
aircraft while executing instrument procedures for the Toksook Bay
Airport. Class E controlled airspace extending upward from 700 ft. and
1,200 ft. above the surface in the Toksook Bay Airport area is revised
by this action.
    Interested parties were invited to participate in this rulemaking
proceeding by submitting written comments on the proposal to the FAA.
No comments were received. The rule is adopted as proposed.
    The area will be depicted on aeronautical charts for pilot
reference. The coordinates for this airspace docket are based on North
American Datum 83. The Class E airspace areas designated as 700/1,200
ft. transition areas are published in paragraph 6005 of FAA Order
7400.9S, Airspace Designations and Reporting Points, signed October 3,
2008, and effective October 31, 2008, which is incorporated by
reference in 14 CFR 71.1. The Class E airspace designations listed in
this document will be published subsequently in the Order.

The Rule

    This amendment to 14 CFR part 71 revises Class E airspace at the
Toksook Bay Airport, Alaska. This Class E airspace is revised to
accommodate aircraft executing amended instrument procedures, and will
be depicted on aeronautical charts for pilot reference. The intended
effect of this rule is to provide adequate controlled airspace for
Instrument Flight Rules (IFR) operations at the Toksook Bay Airport,
Toksook Bay, Alaska.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Because this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule will not have a significant economic impact on
a substantial number of small entities under the criteria of the
Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle 1, section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart 1, section 40103, Sovereignty and use of
airspace. Under that section, the FAA is charged with prescribing
regulations to ensure the safe and efficient use of the navigable
airspace. This regulation is within the scope of that authority because
it creates Class E airspace sufficient in size to contain aircraft
executing instrument procedures for the Toksook Bay Airport and
represents the FAA's continuing effort to safely and efficiently use
the navigable airspace.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

0
In consideration of the foregoing, the Federal Aviation Administration
amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, CLASS B, CLASS C, CLASS D, AND
CLASS E AIRSPACE AREAS; AIRWAYS; ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.9S, Airspace Designations and Reporting
Points, signed October 3, 2008, and effective October 31, 2008, is
amended as follows:

Paragraph 6005 Class E Airspace Extending Upward From 700 Feet or
More Above the Surface of the Earth.

* * * * *

AAL AK E5 Toksook Bay, AK [Revised]

Toksook Bay, Toksook Bay Airport, AK
    (Lat. 60[deg]32'29'' N., long. 165[deg]05'14'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.3-mile radius of the Toksook Bay Airport, AK; and that
airspace extending upward from 1,200 feet above the surface within a
73-mile radius of the Toksook Bay Airport, AK.
* * * * *

    Issued in Anchorage, AK, on December 4, 2008.
Anthony M. Wylie,
Manager, Alaska Flight Services Information Area Group.
[FR Doc. E8-30014 Filed 12-19-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register: November 13, 2008 (Volume 73, Number 220)]
[Notices]
[Page 67152]
[DOCID:fr13no08-31]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. EL08-88-000; ER08-1178-000; ER09-213-000]

California Independent System Operator Corporation; Supplemental
Notice of Technical Conference

November 5, 2008.
    On October 28, 2008, the Commission issued a Supplemental Notice
(October 28, 2008 Notice) of a staff technical conference in the above-
captioned proceedings. As stated in the October 28, 2008 Notice, the
purpose of the technical conference is to further explore the justness
and reasonableness of the California Independent System Operator
Corporation's (CAISO) Exceptional Dispatch mechanism and proposed
mitigation plan. The technical conference will be held on November 6,
2008, from 9 a.m. to 5 p.m., and November 7, 2008 from 9 a.m. to 12
p.m. (Eastern Time), in Hearing Room 1, at the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.
    The agenda for this conference is attached. If there are any
changes, the revised agenda will be posted on the calendar page for
this event on the Commission's Web site, http://www.ferc.gov. Please
note that the timeframes are estimates, and if the schedule for
November 6, 2008 is completed before 4 p.m., discussion will turn to
issues scheduled for November 7, 2008.
    Also, in an abundance of caution, the instant supplemental notice
adds Docket No. ER09-213-000, California Independent System Operator
Submits an Amendment to the Market Redesign and Technology Upgrade
Tariff, as this filing concerns forbidden operating regions.
    The technical conference will be open for the public to attend and
advance registration is not required. The conference will be accessible
via telephone on a listen-only basis for those parties who reserved a
telephone line pursuant to the instructions provided in the October 28,
2008 Notice. Staff reiterates that, to the extent possible, individuals
calling from the same location share a single telephone line.
    All interested persons may file written comments following the
technical conference on or before November 24, 2008. Reply comments
will be due on or before December 2, 2008.
    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations, please
send an e-mail to<EMAIL_ADDRESS>or call toll free 1-866-208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a FAX to<PHONE_NUMBER> with
the required accommodations.
    For more information about this conference, please contact: Sarah
McKinley,<PHONE_NUMBER><EMAIL_ADDRESS>for logistical issues,
and Sarah Crawford,<PHONE_NUMBER><EMAIL_ADDRESS>or Saeed
Farrokhpay,<PHONE_NUMBER><EMAIL_ADDRESS>for other
concerns.

Kimberly D. Bose,
Secretary.
 [FR Doc. E8-26897 Filed 11-12-08; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 77 (Friday, April 20, 2012)]
[Notices]
[Pages 23788-23791]
[FR Doc No: 2012-9529]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66817; File No. SR-NASDAQ-2012-050]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Routing Fees

April 16, 2012.
    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 April 11, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange

Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by NASDAQ.
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

    The NASDAQ Stock Market LLC proposes to modify Chapter XV, Section
2, governing pricing for NASDAQ members using the NASDAQ Options Market
(``NOM''), NASDAQ's facility for executing and routing standardized
equity and index options.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.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. 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 purpose of this rule filing is to recoup costs that the
Exchange incurs for routing and executing Customer, Firm, Market Maker
and Professional orders in equity and index options to the BATS
Exchange, Inc. (``BATS''). The Exchange's Routing Fees are located at
Chapter XV, Section 2, entitled ``NASDAQ Options Market-Fees and
Rebates,'' and are as follows:

----------------------------------------------------------------------------------------------------------------
                    Exchange                         Customer          Firm             MM         Professional
----------------------------------------------------------------------------------------------------------------
BATS............................................           $0.55           $0.55           $0.55           $0.55
BOX.............................................            0.11            0.55            0.55            0.11
CBOE............................................            0.11            0.55            0.55            0.31
CBOE orders greater than 99 contracts in NDX,               0.29            0.55            0.55            0.31
 MNX ETFs, ETNs & HOLDRs........................
C2..............................................            0.55            0.55            0.55            0.55
ISE.............................................            0.11            0.55            0.55            0.29
ISE Select Symbols *............................            0.31            0.55            0.55            0.39
NYSE Arca Penny Pilot...........................            0.55            0.55            0.55            0.55
NYSE Arca Non Penny Pilot.......................            0.11            0.55            0.55            0.11
NYSE AMEX.......................................            0.11            0.55            0.55            0.31
PHLX (for all options other than PHLX Select                0.11            0.55            0.55            0.31
 Symbols).......................................
PHLX Select Symbols **..........................            0.50            0.55            0.55            0.51
----------------------------------------------------------------------------------------------------------------
* These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing
  Liquidity in Select Symbols. See ISE's Schedule of Fees for the complete list of symbols that are subject to
  these fees.
** These fees are applicable to orders routed to PHLX that are subject to Rebates and Fees for Adding and
  Removing Liquidity in Select Symbols. See PHLX's Pricing Schedule for the complete list of symbols that are
  subject to these fees.

    The Exchange is proposing to amend the current BATS Routing Fees by
renaming those fees as ``BATS Penny.'' \3\ The Exchange is not
proposing to amend the current rate of $0.55 per contract for
Customers, Firms, Market Makers, and Professionals but proposes to
apply those fees solely to Penny options routed to BATS.
---------------------------------------------------------------------------

    \3\ BATS defines Penny options as those issues that are quoted
pursuant to BATS Rule 21.5, Interpretation and Policy .01.
---------------------------------------------------------------------------

    The Exchange proposes to create new Routing Fees to BATS for non-
Penny options. BATS recently adopted a $0.75 per contract non-Penny fee
for customers that remove liquidity from the BATS Options order book
and a $0.80 per contract non-Penny fee for professionals, firms and
market makers that remove liquidity from the BATS Options order
book.\4\ The Exchange is proposing to adopt BATS non-Penny Routing Fees
to account for the new BATS fees to remove liquidity and other routing
costs incurred by the Exchange when routing to BATS, as follows:
---------------------------------------------------------------------------

    \4\ See SR-BATS-2012-015.

----------------------------------------------------------------------------------------------------------------
                    Exchange                         Customer          Firm             MM         Professional
----------------------------------------------------------------------------------------------------------------
BATS non-Penny..................................           $0.86           $0.91           $0.91           $0.91
----------------------------------------------------------------------------------------------------------------

    NASDAQ Options Services LLC (``NOS''), a member of the Exchange, is
the Exchange's exclusive order router. Each time NOS routes to away
markets NOS is charged a $0.06 clearing fee and, in the case of certain
exchanges, a transaction fee is also charged in certain symbols, which
are passed through to the Exchange. The Exchange currently recoups
clearing and transaction charges incurred by the Exchange when
Customer, Firm, Market Maker and Professional orders are routed to an
away market. The Exchange currently recoups clearing and transaction
charges incurred by the Exchange as well as certain other costs
incurred by the Exchange when routing to away markets, such as
administrative and technical costs associated with operating NOS, the
Exchange's exclusive order router; the Exchange's membership fees at
away markets; and technical costs associated with routing.\5\
---------------------------------------------------------------------------

    \5\ In addition to membership fees and transaction fees, the
Exchange also incurs an Options Regulatory Fee when routing to an
away market that assesses that fee.
---------------------------------------------------------------------------

    The Exchange is adopting BATS non-Penny Routing Fees to account for
the BATS remove fees of $0.75 per contract for customer orders and
$0.80 per contract for professional, firm and market maker orders, the
$0.06 clearing

cost and another $0.05 per contract associated with administrative and
technical costs associated with operating NOS.
    As with all fees, the Exchange may adjust these Routing Fees in
response to competitive conditions by filing a new proposed rule
change.
2. Statutory Basis
    NASDAQ NASDAQ [sic] believes that the proposed rule changes are
consistent with the provisions of Section 6 of the Act,\6\ in general,
and with Section 6(b)(4) of the Act,\7\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which NASDAQ operates or controls.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed amendment to the current
BATS Routing Fees to rename those fees as ``BATS Penny'' and apply
those fees to Penny options routed to BATS and adopt separate Routing
Fees for non-Penny options routed to BATS is reasonable because the two
separate categories take into account the different fees to remove
liquidity assessed by BATS for non-Penny versus Penny options. The
Exchange seeks to recoup costs incurred when routing orders to BATS on
behalf of its members.
    The Exchange believes that the proposed amendment to the current
BATS Routing Fees to rename those fees as ``BATS Penny'' and apply
those fees to Penny options routed to BATS and adopt separate Routing
Fees for non-Penny options routed to BATS is equitable and not unfairly
discriminatory because the Exchange will uniformly apply the BATS Penny
as well as BATS non-Penny Routing Fees to its members based on the type
of options orders routed to BATS.\8\
---------------------------------------------------------------------------

    \8\ See note 3.
---------------------------------------------------------------------------

    The proposed BATS non-Penny Routing Fees are reasonable because
they seek to recoup costs that are incurred by the Exchange when
routing Customer, Firm, Market Maker and Professional orders to BATS on
behalf of members. Each destination market's transaction charge varies
and there is a standard clearing charge for each transaction incurred
by the Exchange along with other administrative and technical costs
that are incurred by the Exchange. The Exchange believes that the
proposed Routing Fees would enable the Exchange to recover the remove
fees assessed by BATS for non-Penny options, plus clearing and other
administrative and technical fees for the execution of such orders when
routed to BATS. The Exchange also believes that the proposed BATS non-
Penny Routing Fees are equitable and not unfairly discriminatory
because they would be uniformly applied to all non-Penny orders that
are routed to BATS.
    With respect to the Firm and Market Maker Routing Fees, the
Exchange initially proposed to assess fixed Routing Fees of $0.55 per
contract applicable to all away markets.\9\ The Exchange noted in that
rule change that pricing on the various options exchanges varies
significantly from exchange to exchange for non-Customer orders.
Accordingly, the Exchange proposed a $0.55 per contract side Routing
Fee in order to capture the majority of the transaction and clearing
fees for Firm and Market Maker orders, while making the Exchange's
Routing Fees easier to calculate and predict for members whose
proprietary orders are routed away. In addition, fixed Routing Fees are
easier to comprehend by the members whose orders are routed away.
Further, predicting, calculating and charging back ``pass-through''
fees is an unduly burdensome, expensive and complicated task for
members whose orders are routed away. The Exchange noted that fixed
Routing Fees for Firm and Market Maker orders should ease the burden,
expense and complexity of this task. Furthermore, fixed fees are easier
to manage and maintain for the Exchange, ensuring accurate billing and
accounting. The Exchange believes its proposal to increase the BATS
non-Penny Customer Routing Fee from $0.55 per contract to $0.86 per
contract and the Professional, Firm and Market Maker Routing Fees from
$0.55 per contract to $0.91 per contract is reasonable because the fees
proposed by BATS are not within the range of fees assessed by other
exchanges since the recent increase in the BATS fee to remove liquidity
from $0.44 per contract to $0.75 per contract for customer non-Penny
options and from $0.44 per contract to $0.80 for professionals, firms
and market makers. The Exchange believes it is reasonable to recoup the
BATS remove fees plus the clearing and other costs to recoup Routing
Fees. The Exchange believes that the increase to the Firm and Market
Maker non-Penny BATS Routing Fees are equitable and not unfairly
discriminatory because, as previously mentioned, those fees would be
similarly calculated for Customers, Firms, Market Makers and
Professionals.\10\ Additionally, the non-Penny BATS Routing Fees would
be uniformly assessed for all non-Penny orders routed to BATS.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 61666 (March 5,
2010), 75 FR 12318 (March 15, 2010) (SR-NASDAQ-2010-027).
    \10\ The Exchange's proposed non-Penny BATS Routing Fees are
calculated similarly for all participants by adding the fee to
remove liquidity assessed by BATS for the particular market
participant plus a fee of $.11 per contract which represents
clearing and other costs noted herein.
---------------------------------------------------------------------------

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

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

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

    No written comments were either solicited or received.

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)(ii) of the Act.\11\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-2012-050 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission,

100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2012-050. 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
a.m. and 3 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-NASDAQ-2012-050 and should
be submitted on or before May 11, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------

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

[FR Doc. 2012-9529 Filed 4-19-12; 8:45 am]
BILLING CODE 8011-01-P


<!DOCTYPE HTML PUBLIC "-//-//W3C//DTD HTML 3.2//EN">

<META name="generator" content="PDFCreactiveX HTML Export">
<META name="creation-date" content="24/04/2008 04:24:06 ">
<TITLE></TITLE>


IMPORTANT NOTE TO USER:

The margins and lines are NOT block protected, so you must fill the form with caution, paying attention to any shifting of the existing text. The following tips should make this a simple task:

 Fill in the spaces by using the type over command. Otherwise you'll have to delete a space for each letter you add.

 Use the same font ( Times New Roman 8pt).

 Do not change table lines ( although you can delete an extra space line to provide more space elsewhere.

 It is not recommended that you convert this form to WP5.1, some of these features are not available in WP5.1, so the text will scramble.

If you have any problems or questions, please call your OEI Desk Officer. PAPERWORK REDUCTION ACT SUBMISSION Please read the instructions before completing this form. For additional forms or assistance in completing this form, contact your agency's Paperwork Clearance Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 17th Street NW Washington, DC 20503.

1. Agency/ Subagency originating request EPA/ OW/ OGWDW 2. OMB control number b. X None a__ __ __ __  __ __ __ __ 2040

3. Type of information collection ( check one) a. X New collection b. G Revision of a currently approved collection c. G Extension of a currently approved collection d. G Reinstatement, without change, of a previously approved collection for which approval has expired e. G Reinstatement, with change, of a previously approved collection for which approval has expired f. G Existing collection in use without an OMB control number 4. Type of review requested ( check one) a. X Regular b. G Emergency  Approval requested by: / / c. G Delegated 5. Small entities Will this information collection have a significant economic impact on a substantial number of small entities? G Yes X No For b f, note item A2 of Supporting Statement Instructions 6. Requested expiration date a. X Three years from approval date b. G Other Specify: / /___

7. Title: The National Primary Drinking Water Regulations; Long Term 2 Enhanced Surface Water Treatment Rule ( Final Rule)

8. Agency form number( s) ( If applicable) 2097.02 9. Keywords Drinking Water; Microbial; Pathogens; large systems; small systems, Cryptosporidium, E. Coli, LT2ESWTR, Regulations, Stage 2, Disinfection, Byproducts, Protozoan, public water systems, surface water, GWUDI 10. Abstract EPA needs the information that will be collected under this rule in order to protect public health as required by the Safe Drinking Water Act. Under this rule, public ( drinking) water systems will monitor their water sources for Cryptosporidium, as well as E. coli and turbidity as indicators of Cryptosporidium. EPA and States will use the results of this monitoring to require additional water treatment by systems with the highest vulnerability to Cryptosporidium contamination. This treatment will significantly reduce rates of illness due to Cryptosporidium in drinking water. The respondents will be public water systems using surface water sources or ground water under the direct influence of surface water and States.

11. Affected public ( Mark primary with " P" and all others that apply with " X") a. Individuals or households d. Farms b. Business or other for profit e. Federal Government c. Not for profit institutions f. P State, Local or Tribal Government 12. Obligation to respond ( Mark primary with " P" and all others that apply with " X") a. G Voluntary b. P Required to obtain or retain benefits c. X Mandatory 13. Annual reporting and recordkeeping hour burden a. Number of respondents 2,503 b. Total annual responses 226,029 1. Percentage of these responses collected electronically 90 % c. Total hours requested 141,295 d. Current OMB inventory 0 e. Difference 141,295 f. Explanation of difference 1. Program Change 141,295 2. Adjustment 0 14. Annual reporting and recordkeeping cost burden ( in thousands of dollars)

a. Total annualized capital/ startup costs 0 b. Total annual costs ( O& M) $ 7,016 c. Total annualized cost requested $ 7,016 d. Current OMB inventory 0 e. Difference $ 7,016 f. Explanation of difference 1. Program change $ 7,016 2. Adjustment 0 15. Purpose of information collection ( Mark Primary With " P" and all others that apply with " X") a. __ Application for benefits e. X Program planning or management b. __ Program evaluation f. __ Research c. __ General purpose statistics g. P Regulatory or compliance d. __ Audit 16. Frequency of recordkeeping or reporting ( check all that apply) a. X Recordkeeping b. Q Third party disclosure c. X Reporting 1. Q On occasion 2. Q Weekly 3. X Monthly 4. Q Quarterly 5. Q Semi annually 6. Q Annually 7. Q Biannually 8. X Other ( describe) biweekly 17. Statistical methods Does this information collection employ statistical methods?

Q Yes X No 18. Agency contact ( person who can best answer questions regarding the content of this submission) Name: Dan Schmelling Phone: ( 202) 564 5281 OMB 83 I 10/ 95 19. Certification for Paperwork Reduction Act Submissions On behalf of this Federal agency, 1 certify that the collection of information encompassed by this request complies with' 5 CFR 1320.9.

NOTE: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8( b)( 3), appear at the end of the instructions. The certification is to be made with reference to those regulatory provisions as set forth in the instructions.

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

( a) It is necessary for the proper performance of agency functions;

( b) It avoids unnecessary duplication;

( c) It reduces burden on small entities;

( d) It uses plain, coherent, and unambiguous terminology that is understandable to respondents;

( e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

( f) It indicates the retention periods for recordkeeping requirements;

( g) It informs respondents of the information called for under 5 CFR 1320.8( b)( 3): ( I) Why the information is being collected' ( ii) Use of information; ( iii) Burden estimate; ( iv) Nature of response ( voluntary, required for a benefit, or mandatory); ( v) Nature and extent of confidentiality; and ( vi) Need to display currently valid OMB control number;

( h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected ( see note in Item 19 of the instructions);

( I) It uses effective and efficient statistical survey methodology; and ( j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item below and explain the reason in Item 18 of the Supporting Statement.

Signature of Program Official Phil Oshida, Acting Director Standards and Risk Reduction Division Office of Ground Water and Drinking Water Date Signature of Senior Official or designee Oscar Morales, Director Collection Strategies Division Office of Environmental Information Date OMB 83 I 10/ 95 Certification Requirement for Paperwork Reduction Act Submissions 5 CFR 1320.9 reads " As part of the agency submission to OMB of a proposed collection of information, the agency ( through the head of the agency, the Senior Official or their designee) shall certify ( and provide a record supporting such certification) that the proposed collection of information

"( a) is necessary for the proper performance of the functions of the agency, including that the information to be collected will have practical utility;

"( b) is not unnecessarily duplicative of information otherwise reasonably accessible to the agency;

"( c) reduces to the extent practicable and appropriate the burden on persons who shall provide information to or for the agency, including with respect to small entities, as defined in the Regulatory Flexibility Act 5 U. S. C § 601( 6)), the use of such techniques as:

"( 1) establishing differing compliance or reporting requirements or timetables that take into account the resources available to those who are to respond; "( 2) the clarification, consolidation, or simplification of compliance and reporting requirements; or collection of information , or any part thereof; "( 3) an exemption from coverage of the collection of information, or any part thereof;

"( d) is written using plain, coherent, and unambiguous terminology and is understandable to those who are to respond;

"( e) is to be implemented in ways consistent and compatible, to the maximum extent practicable, with the existing reporting and recordkeeping practices of those who are to respond;

"( f) indicates for each recordkeeping requirement the length of time persons are required to maintain the records specified;

"( g) informs potential respondents of the information called for under § 1320.8( b)( 3); [ see below]

"( h) has been developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected, including the processing of the information in a manner which shall enhance, where appropriate, the utility of the information to agencies and the public;

"( I) uses effective and efficient statistical survey methodology appropriate to the purpose for which the information is to be collected; and "( j) to the maximum extent practicable, uses appropriate information technology to reduce burden and improve data quality, agency efficiency and responsiveness to the public."

NOTE: 5 CFR 1320.8( b)( 3) requires that each collection of information:

"( 3) informs and provides reasonable notice to the potential persons to whom the collection of information is addressed of: "( I) the reasons the information is planned to be and/ or has been used to further the proper performance of the functions of the agency; "( ii) the way such information is planned to be and/ or has been used to further the proper performance of the functions of the agency; "( iii) an estimate, to the extent practicable, of the average burden of the collection ( together with a request that the public direct to the agency any comments concerning the accuracy of this burden estimate and any suggestions for reducing this burden); "( iv) whether responses to the collection of information are voluntary, required to obtain or retain a benefit ( citing authority), or mandatory ( citing authority); "( v) the nature and extent of confidentiality to be provided, if any ( citing authority); and "( vi) the fact that any agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number."

OMB 83 I ( Instructions) 10/ 95