[Federal Register Volume 87, Number 148 (Wednesday, August 3, 2022)]
[Notices]
[Pages 47475-47478]
[FR Doc No: 2022-16548]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95381; File No. SR-BOX-2022-22]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule
IM-5050-11

July 28, 2022.
    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 July 18, 2022, BOX Exchange LLC (the ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule from
interested persons.
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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 BOX Rule IM-5050-11 to account for
conflicts between different provisions within the Short Term Option
Series Rules. The text of the proposed rule change is available from
the principal office of the Exchange, at the Commission's Public
Reference Room and also on the Exchange's internet website at http://boxoptions.com.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule IM-5050-11 to account for
conflicts between different provisions within the Short Term Option
Series Rules. The Exchange notes that this filing is based on a
proposal recently submitted by Nasdaq ISE LLC (``Nasdaq ISE'') and
approved by the Commission.\3\
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    \3\ See Securities Exchange Act Release No. 95085 (June 10,
2022), 87 FR 36353 (June 16, 2022) (Order Approving a Proposed Rule
Change, as Modified by Amendment No. 1, To Amend ISE Options 4,
Section 5, Series of Options Contracts Open for Trading) (SR-ISE-
2022-10).
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    In 2021, BOX amended Rule 5050 to limit the intervals between
strikes in equity options listed as part of the Short Term Option
Series Program, excluding Exchange-Traded Fund Shares and ETNs, that
have an expiration date more than twenty-one days from the listing date
(``Strike Interval Proposal'').\4\ The Strike Interval Proposal adopted
a new IM-5050-11 which included a table that intended to specify the
applicable strike intervals that would supersede IM-5050-6(b)(5) \5\
for Short Term Option Series in equity options, excluding Exchange-
Traded Fund Shares and ETNs, which have an expiration date more than
twenty-one days from the listing date. The Strike Interval Proposal was
designed to reduce the density of strike intervals that would be listed
in later weeks, within the Short Term Option Series Program, by
utilizing limitations for intervals between strikes which have an
expiration date more than twenty-one days from the listing date.
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    \4\ See Securities Exchange Act Release No. 92072 (May 28,
2021), 86 FR 29856 (June 3, 2021) (SR-BOX-2021-12).
    \5\ The interval between strike prices on Short Term Option
Series may be (i) $0.50 or greater where the strike price is less
than $100, and $1 or greater where the strike price is between $100
and $150 for all option classes that participate in the Short Term
Options Series Program; (ii) $0.50 for option classes that trade in
one dollar increments in Related non-short Term Options and are in
the Short Term Option Series Program; or (iii) $2.50 or greater
where the strike price is above $150. During the month prior to
expiration of an option class that is selected for the Short Term
Option Series Program pursuant to this rule (Short Term Option), the
strike price intervals for the related non-Short Term Option shall
be the same as the strike price intervals for the Short Term Option.
BOX Rule IM-5050-6(b)(5).
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    At this time, the Exchange proposes to amend the rule text within
IM-5050-11 to clarify the current rule text and amend the application
of the table to account for potential conflicts within the Short Term
Option Series Rules. Currently, the table within IM-5050-11 is as
follows: \6\
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    \6\ The Share Price would be the closing price on the primary
market on the last day of the calendar quarter and the Average Daily
Volume would be the total number of options contracts traded in a
given security for the applicable calendar quarter divided by the
number of trading days in the applicable calendar quarter The
Average Daily Volume would be the total number of options contracts
traded in a given security for the applicable calendar quarter
divided by the number of trading days in the applicable calendar
quarter. Beginning on the second trading day in the first month of
each calendar quarter, the Average Daily Volume shall be calculated
by utilizing data from the prior calendar quarter based on Customer-
cleared volume at The Options Clearing Corporation. For options
listed on the first trading day of a given calendar quarter, the
Average Daily Volume shall be calculated using the quarter prior to
the last trading calendar quarter.

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                                                                                Share price
                                                                         -------------------------------------------------------------------------------
                Tier                         Average daily volume                           $25 to less     $75 to less    $150 to less       $500 or
                                                                           less than $25     than $75        than $150       than $500        greater
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...................................  Greater than 5,000................           $0.50           $1.00           $1.00           $5.00           $5.00
2...................................  Greater than 1,000 to 5,000.......            1.00            1.00            1.00            5.00           10.00
3...................................  0 to 1,000........................            2.50            5.00            5.00            5.00           10.00
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    The first sentence of IM-5050-11 provides, ``With respect to
listing Short Term Option Series in equity options, excluding Exchange-
Traded Fund Shares and ETNs, which have an expiration date more than
twenty-one days from the listing date, the strike interval for each
option class will be based on the below table.''
    First, the Exchange proposes to amend the first sentence of IM-
5050-11 to instead provide, ``With respect to listing Short Term Option
Series in equity options, excluding Exchange-Traded Fund Shares and
ETNs, which have an expiration date more than twenty-one days from the
listing date, the following table, which specifies the applicable
interval for listing will apply. To the extent there is a conflict
between applying IM-5050-6(b)(5) and the below table, the greater
interval would apply.'' The table within IM-5050-11 provides for the
listing of intervals based on certain parameters (average daily volume
and share price). The Exchange proposes to amend the language in IM-
5050-11 to make clear that the only permitted intervals are as
specified in the table within IM-5050-11, except in the case where IM-
5050-6(b)(5) provides for a greater interval as described in more
detail below.
    Today, there are instances where a conflict is presented as between
the application of the table within IM-5050-11 and the rule text within
IM-5050-6(b)(5) with respect to the correct interval. Adding the
proposed language would make clear to Participants the applicable
intervals where there is a conflict between the rule text within IM-
5050-11 and the rule text within IM-5050-6(b)(5) thereby providing
certainty as to the outcome. The Exchange proposes to insert the words
``greater interval'' because it proposes to permit IM-5050-6(b)(5) to
govern only in the event that the interval would be greater. The same
analysis would not be conducted where the result would be a lesser
interval. By way of example,
    Example 1: Assume a Tier 1 stock that closed on the last day of Q1
with a quarterly share price higher than $75 but less than $150.
Therefore, utilizing the table within IM-5050-11, the interval would be
$1.00 for strikes added during Q2 even for strikes above $150. Next,
assume during Q2 the share price rises above $150. Utilizing only the
table within IM-5050-11, the interval would be $1.00 even though the
stock is now trading above $150 because the Share Price for purposes of
IM-5050-11 was calculated utilizing data from the prior calendar
quarter. However, a separate rule, IM-5050-6(b)(5), provides that the
Exchange may list a Short Term Option Series at $2.50 intervals where
the strike price is above $150. In other words, there is a potential
conflict between the permitted strike intervals above $150. In this
example, IM-5050-11 would specify a $1.00 interval whereas IM-5050-
6(b)(5) would specify a $2.50 interval. As proposed, the Exchange
proposes to apply the greater interval. The greater interval would then
be $2.50 as per IM-5050-6(b)(5) in this scenario. Therefore, the
following strikes would be eligible to list: $152.5 and $157.5. For
strikes less than $150, the following strikes would be eligible to
list: $149 and $148 because Short Term Option Series with expiration
dates more than 21 days from the listing date as well as Short Term
Option Series with expiration dates less than 21 days from the listing
date would both be eligible to list $1 intervals pursuant to IM-5050-11
and IM-5050-6(b)(5).
    Example 2: Assume a Tier 2 stock that closed on the last day of Q1
with a quarterly share price less than $25. Therefore, utilizing the
table within IM-5050-11, the interval would be $1.00 for strikes added
during Q2 even for strikes above $25. Next, assume during Q2 the share
price rises above $100. Utilizing only the table within IM-5050-11, the
interval would be $1.00 even though the stock is now trading above $100
because the Share Price for purposes of IM-5050-11 was calculated
utilizing data from the prior calendar quarter. However, IM-5050-
6(b)(5) provides that the Exchange may list a Short Term Option Series
at $1.00 intervals where the strike price is above $100. As proposed,
the Exchange would apply the greater interval, however, the $1.00
interval is the same in both cases in this scenario and, therefore,
there is no conflict. Now, assume during Q2 the share price rises above
$150. Utilizing only the table within IM-5050-11, the interval would
continue to be $1.00 because the Share Price relied on data from the
prior calendar quarter, however, pursuant to IM-5050-6(b)(5), the
interval would be $2.50 for strike prices above $150. The greater
interval would then be $2.50 as per IM-5050-6(b)(5) in this scenario.
    Example 3: Assume a Tier 3 stock that closed on the last day of Q1
with a quarterly share price less than $25. Therefore, utilizing the
table within IM-5050-11, the interval would be $2.50 for strikes added
during Q2 even for strikes above $25. Next, assume during Q2 the share
price rises above $100. Utilizing only the table within IM-5050-11, the
interval would be $2.50 even though the stock was trading above $100
because the Share Price for purposes of IM-5050-11 was calculated
utilizing data from the prior calendar quarter. However, IM-5050-
6(b)(5) provides that the Exchange may list a Short Term Option Series
at $1.00 intervals where the strike price is above $100. The greater
interval would then be $2.50 as per the table in IM-5050-11 in this
scenario.
    The Exchange proposes to delete the last sentence of the first
paragraph of IM-5050-11 which states, ``The below table indicates the
applicable strike intervals and supersedes IM-5050-6(b)(4) above, which
permits additional series to be opened for trading on the Exchange when
the Exchange deems it necessary to maintain an orderly market, to meet
customer demand or when the market price of the underlying security
moves substantially from the exercise price or prices of the series
already opened.'' The table within IM-5050-11 impacts strike intervals,
while IM-5050-6(b)(4) describes adding series of options. The table
within IM-5050-11 supersedes other rules pertaining to

strike intervals, but the table does not supersede rules governing the
addition of options series. Therefore, the table within IM-5050-11 and
IM-5050-6(b)(4) do not conflict with each other. Deleting the reference
to IM-5050-6(b)(4) will avoid confusion.
    Finally, the Exchange provides within IM-5050-11(g),
``Notwithstanding the limitations imposed by IM-5050-11, this IM-5050-
11 does not amend the range of strikes for Short Term Option Series
that may be listed pursuant to IM-5050-6(b)(5) above.'' The Exchange
proposes to remove this rule text. While the range limitations continue
to be applicable to the table within IM-5050-11, the strike ranges do
not conflict with strike intervals and therefore the sentence is not
necessary. Removing IM-5050-11(g) will avoid confusion.
Implementation
    The Exchange proposes to implement this rule on August 1, 2022. The
Exchange will issue an Informational Circular to notify Participants of
the implementation date.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Securities Exchange Act of 1934
(the ``Act''),\7\ in general, and Section 6(b)(5) of the Act,\8\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general to protect investors and the
public interest. The Strike Proposal continues to limit the intervals
between strikes listed in the Short Term Option Series Program that
have an expiration date more than twenty-one days.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal to add clarifying language to IM-5050-11,
is consistent with the Act because it will make clear that the only
permitted intervals are as specified in the table within IM-5050-11,
except in the case where IM-5050-6(b)(5) provides for a greater
interval. This amendment will bring greater transparency to the rule.
    Adopting new language within IM-5050-11 to address a potential
conflict between the Short Term Option Series Program rules,
specifically as between the application of the table within IM-5050-11
and the rule text within IM-5050-6(b)(5) with respect to the correct
interval is consistent with the Act. This new rule text will make clear
to Participants the applicable intervals when there is a conflict
between the rule text within IM-5050-11 and the rule text within IM-
5050-6(b)(5), thereby providing certainty as to the outcome. The
proposed new rule text promotes just and equitable principles of trade
by adding transparency to the manner in which BOX implements its
listing rules, and protects investors and the general public by
removing uncertainty.
    Removing the last sentence of the first paragraph of IM-5050-11 is
consistent with the Act because the table within IM-5050-11 impacts
strike intervals, while IM-5050-6(b)(4) describes the addition of
options series. The table within IM-5050-11 supersedes other rules
pertaining to strike intervals, but the table does not supersede rules
governing the addition of options series. Therefore, the table within
IM-5050-11 and IM-5050-6(b)(4) do not conflict with each other.
Deleting the reference to IM-5050-6(b)(4) will avoid confusion.
    Removing IM-5050-11(g) is consistent with the Act because while the
range limitations continue to be applicable, the strike ranges do not
conflict with strike intervals, rendering the sentence unnecessary.
Removing IM-5050-11(g) will avoid confusion.
    The Strike Interval Proposal was designed to reduce the density of
strike intervals that would be listed in later weeks, within the Short
Term Option Series Program, by utilizing limitations for intervals
between strikes which have an expiration date more than twenty-one days
from the listing date. The Exchange's proposal intends to continue to
remove certain strike intervals where there exist clusters of strikes
whose characteristics closely resemble one another and, therefore, do
not serve different trading needs,\9\ rendering these strikes less
useful. Also, the Strike Interval Proposal continues to reduce the
number of strikes listed on BOX, allowing Market Makers to expend their
capital in the options market in a more efficient manner, thereby
improving overall market quality on BOX.
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    \9\ For example, two strikes that are densely clustered may have
the same risk properties and may also be the same percentage out-of-
the money.
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    Additionally, by making clear that the greater interval would
control as between the rule text within IM-5050-11 and the rule text
within IM-5050-6(b)(5), the Exchange is reducing the number of strikes
listed in a manner consistent with the intent of the Strike Interval
Proposal, which was to reduce strikes which were farther out in time.
The result of this clarification is to select wider strike intervals
for Short Term Option Series in equity options which have an expiration
date more than twenty-one days from the listing date. This rule change
would harmonize strike intervals as between inner weeklies (those
having less than twenty-one days from the listing date) and outer
weeklies (those having more than twenty-one days from the listing date)
so that strike intervals are not widening as the listing date
approaches.

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. The Strike Interval Proposal
continues to limit the number of Short Term Option Series Program
strike intervals available for quoting and trading on BOX for all BOX
Participants.
    Adding language to the first sentence of IM-5050-11 to make clear
which parameter the table within IM-5050-11 amends within the Short
Term Option Series Program will bring greater transparency to the
rules. Adopting new language to address potential conflicts as between
the rule text within IM-5050-11 and the rule text within IM-5050-
6(b)(5), within the Short Term Option Series Program, will bring
greater transparency to the manner in which BOX implements its listing
rules. The table within IM-5050-11 impacts strike intervals, while IM-
5050-6(b)(4), describes adding series of options. The table within IM-
5050-11 supersedes other strike interval rules, but does not supersede
the addition of series. Removing the last sentence of the first
paragraph of IM-5050-11 does not impose an undue burden on competition
because the table within IM-5050-11 supersedes other rules pertaining
to strike intervals, but the table does not supersede rules governing
the addition of options series. Also, deleting the reference to IM-
5050-6(b)(4) will avoid confusion. Finally, deleting IM-5050-11(g) will
remove any potential confusion. While the range limitations continue to
be applicable, the strike ranges do not conflict with strike intervals
and are not necessary.
    While this proposal continues to limit the intervals of strikes
listed on BOX, the Exchange continues to balance the needs of market
participants by continuing to offer a number of strikes to meet a
market participant's investment objective. The Exchange's

Strike Interval Proposal does not impose an undue burden on inter-
market competition as this Strike Interval Proposal does not impact the
listings available at another self-regulatory organization.

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

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

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

    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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\
thereunder.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the Exchange may implement the proposed rule change on August 1, 2022--
the same time other exchanges are implementing an identical change.\14\
The Exchange states that waiving the operative delay will allow the
Exchange to harmonize its rules with other exchanges with similar
rules. This, in turn, will reduce investor confusion and add
transparency in the BOX rules. For these reasons, the Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay.\15\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See Securities Exchange Act Release No. 95085 (June 10,
2022), 87 FR 36353 (June 16, 2022) (SR-ISE-2022-10) (Order Approving
a Proposed Rule Change, as Modified by Amendment No. 1, to Amend ISE
Options 4, Section 5, Series of Options Contracts Open for Trading).
    \15\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    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 protected]. Please include
File Number SR-BOX-2022-22 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-BOX-2022-22. 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-BOX-2022-22 and
should be submitted on or before August 24, 2022.
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    \16\ 17 CFR 200.30-3(a)(12), (59).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-16548 Filed 8-2-22; 8:45 am]
BILLING CODE 8011-01-P


			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on September 24, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-2001-11231

________________________________________________________________________
__________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant:  Transcarga Intl. Airways, C.A.				Date Filed:  July 14, 2004

Relief requested:  Renew exemption from 49 U.S.C. § 41301 to engage in
charter foreign air transportation of property and mail between
Venezuela and the United States; and other all-cargo charters in
accordance with 14 CFR Part 212 of the Department’s rules.  The
applicant would conduct these services only by wet leasing aircraft from
a duly authorized and properly supervised U.S. or foreign air carrier.

If renewal, date and citation of last action:  July 14, 2003, in this
docket

Applicant representative:  Lance Joseph<PHONE_NUMBER>

DOT Analyst:  Gordon H. Bingham<PHONE_NUMBER>

DISPOSITION

Action:  Approved							Action date:  September 24, 2004

Effective dates of authority granted:  September 24, 2004-September 24,
2005

Basis for approval (bilateral agreement/reciprocity):  Reciprocity with
Venezuela

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:  X  Standard exemption
conditions (attached)

Special conditions/Partial grant/Denial basis/Remarks:  The authority
granted above is subject to the wet lease condition  and prior approval
requirement for cargo charter operations set forth in the Notice of
Action Taken, dated February 22, 2002, in this docket.

Action taken by:   Paul L. Gretch, Director

		      Office of International Aviation

________________________________________________________________________
_________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) the applicant was qualified to perform the
proposed operations; (2) our action was consistent with Department
policy; (3) grant of the authority was consistent with the public
interest; and (4) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the

extent not granted/deferred/dismissed, we denied all requests in the
referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR §
385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice.  This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

http://dms.dot.gov//reports/reports_aviation.asp

Foreign Air Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
contact its International Principal Security Inspector (IPSI) to advise
the IPSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a)  based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland, except
as otherwise provided for in the U.S.-U.K. Air Services Agreement;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

					05/2004

  Venezuela is a Category 2 country under the FAA’s IASA program.


[Federal Register Volume 80, Number 49 (Friday, March 13, 2015)]
[Notices]
[Pages 13361-13362]
[FR Doc No: 2015-05688]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2678-006-CA]

Pacific Gas and Electric Company; Notice of Availability of
Environmental Assessment

    In accordance with the National Environmental Policy Act of 1969
and the Federal Energy Regulatory Commission's (Commission)
regulations, 18 CFR part 380 (Order No. 486, 52 FR 47897), the Office
of Energy Projects has reviewed the application for a subsequent
license for the Narrows No. 2 Transmission Line Project and has
prepared an Environmental Assessment (EA). The project occupies 1.28
acres of public land managed by the United States Army Corps of
Engineers and provides service from the Yuba County Water Agency's
Narrows No. 2 Powerhouse (a component of FERC Project No. 2246), in
Yuba County, to PG&E's Narrows No. 2 Substation, in Nevada County.
    The EA contains staff's analysis of the potential environmental
effects of the project and alternatives and concludes that licensing
the project, with appropriate environmental protective measures, would
not constitute a major federal action that would significantly

affect the quality of the human environment.
    A copy of the EA is available for review at the Commission in the
Public Reference Room or may 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, contact FERC Online Support at
<EMAIL_ADDRESS>or toll-free at 1-866-208-3676, or for TTY,
(202) 502-8659.
    You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    For further information, contact Jim Fargo at<PHONE_NUMBER>.

     Dated: March 4, 2015.
Kimberly D. Bose,
 Secretary.
[FR Doc. 2015-05688 Filed 3-12-15; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 204 (Thursday, October 22, 2015)]
[Notices]
[Pages 64039-64041]
[FR Doc No: 2015-26808]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76176; File No. SR-FINRA-2015-026]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Amendment No. 1 and Order Granting
Accelerated Approval to a Proposed Rule Change, as Modified by
Amendment No. 1, To Require an Indicator When a TRACE Report Does Not
Reflect a Commission or Mark-up/Mark-down

October 16, 2015.

I. Introduction

    On July 20, 2015, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend FINRA Rule 6730, which governs the
reporting of eligible transactions to its Trade Reporting and
Compliance Engine (``TRACE''). The proposed rule change was published
for comment in the Federal Register on August 7, 2015.\3\ The
Commission received two comment letters on the proposed rule change.\4\
On September 10, 2015, the Commission extended the time to act on the
proposal until November 5, 2015.\5\ On October 6, 2015, FINRA filed
Amendment No. 1 to the proposed rule change.\6\ The Commission is
publishing this Notice and Order to solicit comment on Amendment No. 1
and to approve the proposed rule change, as modified by Amendment No.
1, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 75588 (August 3,
2015), 80 FR 47546 (August 7, 2015) (``Notice'').
    \4\ See letter from Sean Davy, Managing Director, SIFMA, to
Elizabeth M. Murphy, Secretary, Commission, dated August 27, 2015
(``SIFMA Letter''); letter from Michael Nicholas, Chief Executive
Officer, Bond Dealers of America, to Secretary, Commission, dated
August 28, 2015 (``BDA Letter'').
    \5\ See Securities Exchange Act Release No. 75875, 80 FR 55671
(September 16, 2015).
    \6\ Amendment No. 1 revised the proposal to include three
exceptions to the requirement that members append the ``no
remuneration'' indicator to trade reports that do not reflect either
a commission or mark-up/mark-down, for: (i) List or Fixed Offering
Price Transactions, (ii) Takedown Transactions, and (iii) inter-
dealer transactions. Amendment No. 1 is available in the public
comment file for SR-FINRA-2015-026 on the Commission's Web site.
---------------------------------------------------------------------------

II. Description of the Proposal

    FINRA Rule 6730 (Transaction Reporting) sets forth the requirements
applicable to members reporting transactions in TRACE-Eligible
Securities,\7\ and provides the specific items of information that must
be included in a TRACE trade report. Rules 6730(c) and (d) require a
member firm to report the commission (total dollar amount) separately
on the TRACE trade report for an agency transaction. FINRA combines the
dollar amount that is reported as the commission with the amount that
is reported in the price field, and disseminates to the market this
aggregate amount as the transaction's price. For a principal
transaction, Rule 6730(d)(1) provides that a firm must report a price
that includes the mark-up/mark-down, and FINRA disseminates this price
to the market. FINRA notes that the goal of these reporting
requirements is to provide investors and market participants with
pricing information that better reflects comparable prices for
principal and agency trades in a TRACE-Eligible Security.
---------------------------------------------------------------------------

    \7\ See FINRA Rule 6710 (defining ``TRACE-Eligible Security'').
Most transactions reported to TRACE are publicly disseminated
immediately upon receipt of a transaction report.
---------------------------------------------------------------------------

    FINRA believes that the pricing information currently being
disseminated might be incomplete and in some cases misleading, given
that disseminated prices on transactions that do not include
remuneration are not distinguished from transactions that do include a
commission or mark-up/mark-down. This proposal is designed to provide
more meaningful pricing transparency through TRACE by identifying any
transaction where a commission or mark-up/mark-down was not charged or
known at the time of TRACE reporting.
    The proposal amends Rule 6730 to require a member firm to identify
any transactions for which a commission or mark-up/mark-down is not
reflected in the TRACE trade report because the firm does not charge,
or does not know the amount of, the commission or mark-up/mark-down at
the time of TRACE reporting. For example, a firm might assess a charge
that is not transaction-based, as in the case of a ``fee-based
account'' where remuneration is based upon assets under management (and
individual commissions or mark-ups/mark-downs are not charged).\8\
Thus, for such transactions, the price is not inclusive of a commission
or mark-up/mark-down. In another case, a firm might charge a commission
or mark-up/mark-down, but might not know the exact amount of that
commission or mark-up/mark-down at the time that the TRACE transaction
report is required to be submitted because of their remuneration
structure (e.g., a firm might not calculate a mark-up for a transaction
on a trade-by-trade basis, but could nonetheless ultimately assess
transaction remuneration pursuant to a monthly volume-based
schedule).\9\ The proposal requires a firm to identify all such trades
for which the firm does not charge or does not know the amount of the
commission or mark-up/market-down at the time of TRACE reporting. In
addition, if a firm does not charge any remuneration associated with
the trade (in any form), it would be required to identify the trade as
one for which no remuneration was assessed to the transaction. FINRA
will flag these disseminated transactions as not being inclusive of
remuneration. Based on current rules, the disseminated TRACE feed will
not explicitly distinguish between agency and principal transactions,
and the ``no remuneration'' flag will apply to both principal and
agency transactions.
---------------------------------------------------------------------------

    \8\ Another example of a fee structure that is not transaction-
based is where an alternative trading system (``ATS'') charges
subscribers a fixed fee for unlimited trading each month. See
Notice, 80 FR at 47547.
    \9\ FINRA states that, as a practical matter, firms have
difficulty complying with the current TRACE rules for these types of
volume-based mark-up/mark-down arrangements, since they are unable
to report accurately all the required information related to the
transaction on a timely basis and would need to submit a cancel and
replace to update the pricing information. In some cases, this
information might not be known until the end of the month. See id.
---------------------------------------------------------------------------

    FINRA believes that, in addition to improving transparency for
disseminated prices, this proposal will enhance its regulatory audit
trail and surveillance patterns. With this additional level of detail,
surveillance patterns should yield fewer false positives regarding
mark-up and best execution surveillance, reduce regulatory inquiries,
and provide greater focus for FINRA's regulatory efforts. FINRA has
represented, for example, that without the ``no remuneration''
designation FINRA's surveillance patterns for best execution might
generate alerts for transactions whose prices reflect a commission or a
mark-up as being outliers compared to transactions whose prices do not
reflect a charge.\10\
---------------------------------------------------------------------------

    \10\ See Notice, 80 FR at 47548.
---------------------------------------------------------------------------

    FINRA plans to implement the proposal on May 23, 2016.

III. Summary of Comments and Amendment No. 1

    As noted above, the Commission received two comment letters on the

proposal.\11\ The SIFMA Letter generally supports the proposal.
However, SIFMA believes that the requirement to report trades involving
no remuneration should be limited to customer trades and should not
apply to dealer-to-dealer trades, consistent with SR-MSRB-2015-02.\12\
The BDA Letter also supports the proposal but recommends that the
proposed reporting requirement extend only to customer trades,
consistent with MSRB Rule G-14.\13\ The BDA Letter expresses concern
with how the proposed requirement would affect smaller introducing
dealers and dealers already having difficulty with trade reporting
deadlines under current rules, particularly if the requirement applies
to inter-dealer transactions.
---------------------------------------------------------------------------

    \11\ See supra note 4.
    \12\ See SIFMA Letter at 1. See also Securities Exchange Act
Release No. 75039 (May 22, 2015), 80 FR 31084 (June 1, 2015) (SR-
MSRB-2015-02) (approving an MSRB proposal to, among other things,
require dealers to include a new indicator on their trade reports
that would be disseminated publicly to distinguish customer
transactions that do not include a dealer compensation component and
those that include a markup, mark-down, or a commission) (``MSRB
Order'').
    \13\ See BDA Letter at 1.
---------------------------------------------------------------------------

    In response to commenters' concerns, FINRA proposed in Amendment
No. 1 to provide an exception to the proposed ``no remuneration''
requirement for inter-dealer transactions. FINRA notes that this change
would further align the proposal with the comparable MSRB rule, as
requested by the commenters.\14\ FINRA believes that, given that inter-
dealer transactions typically do not involve remuneration, excluding
such transactions from the requirement better focuses the use of the
indicator on the types of transactions that would provide the
additional price transparency sought by the proposal, which are
transactions between dealers and customers.
---------------------------------------------------------------------------

    \14\ The MSRB's rule limits the use of its ``non-transaction-
based compensation arrangement indicator'' to transactions with
customers. See MSRB Order, 80 FR at 31085.
---------------------------------------------------------------------------

    Also in Amendment No. 1, FINRA proposed to add exceptions from the
``no remuneration'' indicator requirement for List or Fixed Offering
Price Transactions, as defined in FINRA Rule 6710(q), and Takedown
Transactions, as defined in FINRA Rule 6710(r). These transactions are
not currently subject to dissemination; FINRA believes, therefore, that
applying the ``no remuneration'' indicator to these transactions would
not provide additional transparency to the market.

IV. Discussion and Commission Findings

    After careful review of the proposal and comments submitted, the
Commission finds that the proposal, as modified by Amendment No. 1, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
association.\15\ In particular, the Commission finds that the proposed
rule change is consistent with Section 15A(b)(6) of the Act,\16\ which
requires, among other things, that FINRA's rules be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, and, in general, to protect investors
and the public interest. The Commission also finds the proposal
consistent with Section 15A(b)(9) of the Act,\17\ which requires that
FINRA's rules not impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act. The
Commission notes that it previously has approved a similar proposed
rule change of the MSRB.\18\
---------------------------------------------------------------------------

    \15\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \16\ 15 U.S.C. 78o-3(b)(6).
    \17\ 15 U.S.C. 78o-3(b)(9).
    \18\ See MSRB Order, 80 FR at 31086-87.
---------------------------------------------------------------------------

    The Commission believes that the proposed rule change is reasonably
designed to improve transparency of disseminated TRACE trade reports by
requiring firms to indicate when the trade report does not include a
commission or mark-up/mark-down. Use of a ``no remuneration'' indicator
will make investors better able to assess disseminated transaction
prices. Finally, the Commission believes that it is reasonable and
consistent with the Act for FINRA to provide exceptions to this
requirement for inter-dealer transactions, which do not typically have
remuneration, and for List or Fixed Offering Price and Takedown
Transactions, for which there currently is no TRACE dissemination of
the transaction information.
    Therefore, the Commission finds that the proposed rule change, as
modified by Amendment No. 1, is consistent with the Act.

V. Accelerated Approval of Proposal, as Modified by Amendment No. 1

    The Commission finds good cause, pursuant to Section 19(b)(2) of
the Exchange Act \19\ for approving the proposal, as modified by
Amendment No. 1, prior to the 30th day after publication of Amendment
No. 1 in the Federal Register.
---------------------------------------------------------------------------

    \19\ See 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    Amendment No. 1 revised the proposal to include limited exceptions
to the proposed ``no remuneration'' indicator requirement. The
Commission believes that Amendment No. 1 does not raise any novel
regulatory issues because these exceptions are measured and do not
appear to impose any undue burdens on affected persons.
    Accordingly, the Commission finds that good cause exists to approve
the proposal, as modified by Amendment No. 1, on an accelerated basis.

VI. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 1
to 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-FINRA-2015-026 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2015-026. 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 such filing also will be available
for inspection and copying at the principal offices of FINRA. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions

should refer to File Number SR-FINRA-2015-026, and should be submitted
on or before November 12, 2015.

VII. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\20\ that the proposed rule change (SR-FINRA-2015-026), as modified
by Amendment No. 1, be, and hereby is, approved on an accelerated
basis.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(2).
    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Brent J. Fields,
Secretary.
[FR Doc. 2015-26808 Filed 10-21-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Notices]
[Page 7535]
[FR Doc No: 2016-02923]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP16-544-000.
    Applicants: Southern Natural Gas Company, L.L.C.
    Description: Compliance filing Order No. 587-W Compliance to be
effective 4/1/2016.
    Filed Date: 2/1/16.
    Accession Number: 20160201-5441.
    Comments Due: 5 p.m. ET 2/16/16.

    Docket Numbers: RP16-583-000.
    Applicants: Northern Natural Gas Company.
    Description: Section 4(d) Rate Filing: 20160203 Negotiated Rate to
be effective 2/4/2016.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5083.
    Comments Due: 5 p.m. ET 2/16/16.

    Docket Numbers: RP16-584-000.
    Applicants: WestGas InterState, Inc.
    Description: Compliance filing 20160203_WGI 587-W NAESB Standards
to be effective 4/1/2016.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5170.
    Comments Due: 5 p.m. ET 2/16/16.

    Docket Numbers: RP16-585-000.
    Applicants: Enable Mississippi River Transmission, L.
    Description: Section 4(d) Rate Filing: Negotiated Rate Filing to
Amend LER 5680's Attachment A_02_03_16 to be effective 2/3/2016.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5214.
    Comments Due: 5 p.m. ET 2/16/16.

    Docket Numbers: RP16-586-000.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Section 4(d) Rate Filing: Neg Rate Service Agmts--
Pauley to be effective 2/1/2016.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5244.
    Comments Due: 5 p.m. ET 2/16/16.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.

Filings in Existing Proceedings

    Docket Numbers: RP15-65-005.
    Applicants: Gulf South Pipeline Company, LP.
    Description: Compliance filing Settlement Compliance Tariff Records
to be effective 3/1/2016.
    Filed Date: 1/29/16.
    Accession Number: 20160129-5209.
    Comments Due: 5 p.m. ET 2/10/16.

    Docket Numbers: RP15-1331-001.
    Applicants: Texas Eastern Transmission, LP.
    Description: Compliance filing Update to Non-conforming Agreements
for the OPEN Project.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5135.
    Comments Due: 5 p.m. ET 2/16/16.

    Docket Numbers: RP16-576-001.
    Applicants: Cimarron River Pipeline, LLC.
    Description: Compliance filing NAESB 3.0 Correction Filing to be
effective 4/1/2016.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5237.
    Comments Due: 5 p.m. ET 2/16/16.

    Docket Numbers: RP16-579-001.
    Applicants: Dauphin Island Gathering Partners.
    Description: Compliance filing NAESB 3.0 Correction to be effective
4/1/2016.
    Filed Date: 2/3/16.
    Accession Number: 20160203-5240.
    Comments Due: 5 p.m. ET 2/16/16.

    Any person desiring to protest in any of the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR 385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: February 4, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-02923 Filed 2-11-16; 8:45 am]
 BILLING CODE 6717-01-P