[Federal Register: October 3, 2007 (Volume 72, Number 191)]
[Notices]
[Page 56415-56419]
[DOCID:fr03oc07-112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56551; File No. SR-NYSE-2007-82]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to NYSE Rule 124 (Odd-Lot Orders)

 September 27, 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 September 6, 2007, the New York Stock Exchange LLC (``NYSE'' or
``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 substantially prepared by the NYSE. The
Exchange has filed the proposal pursuant to Section 19(b)(3)(A) of the
Act,\3\ and Rule 19b-4(f)(5) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(5).
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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 Exchange Rule 124 (Odd-Lot Orders)
to modify the way in which Exchange systems price and execute certain
types of odd-lot orders. The text of the proposed rule change is
available on the Exchange's Web site (http://www.nyse.com), at the

Exchange's Office of the Secretary, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, NYSE 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
    This filing is submitted to amend Exchange Rule 124 to change the
way in which certain odd-lot orders \5\ are priced and executed by
Exchange systems. The Exchange proposes that buy and sell odd-lot
market orders and odd-lot limit orders marketable upon receipt by
Exchange systems (collectively referred to herein as ``marketable odd-
lot orders'') be paired and executed at the price of the next round-lot
transaction, with any imbalance of buy or sell marketable odd-lot
orders executed at the price of the national best bid or offer
(``NBBO'') \6\ pursuant to specific conditions described herein; and
under certain circumstances, that non-marketable odd-lot limit orders
be executed at their limit price upon becoming marketable.
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    \5\ Odd-lot orders are orders for a size less than the standard
unit (round-lot) of trading, which is 100 shares for most stocks,
although some stocks trade in 10 share units.
    \6\ The National best bid or offer is defined by Rule 600
(b)(42) of Regulation NMS under the Act (``Regulation NMS''), 17 CFR
242.600(b)(42).
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a. Current Execution of Odd-Lot Orders
    Currently, odd-lot orders do not enter the Exchange's auction
market but are executed systemically by Exchange systems designated
solely for odd-lot orders (the ``odd-lot System'').\7\ The odd-lot
System executes all odd-lot orders against the specialist as the contra
party. Odd-lot market orders are executed in time priority at the price
of the next round-lot transaction.\8\ Buy and sell odd-lot market
orders are, in essence, netted against one another and executed;
however, since the specialist is buying the same amount that he or she
is selling, there is no economic consequence to the specialist in this
type of pairing-off of orders. There is a volume limitation inherent in
the execution of odd-lot market orders in that any imbalance of buy or
sell odd-lot market orders are executed against the specialist, but
only up to the size of the round-lot transaction.\9\ Any odd-lot market
orders that do not receive an execution because of the volume
limitation are executed, in order of time priority, at the price of the
next round-lot transaction.\10\ An odd-lot market order that is not
executed within 30 seconds is executed at the price of the national
best bid or offer (``NBBO'').\11\ There is no volume limitation for
odd-lot market orders that receive an execution after 30 seconds have
elapsed. Odd-lot market orders to sell short are executed at the price
of the next round-lot transaction that follows the entry of the order
that is higher than the last different last round-lot price (a ``plus
tick'' or a ``zero plus tick''). There is no volume limitation for odd-
lot market orders to sell short.
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    \7\ See Exchange Rule 124(a).
    \8\ See Exchange Rule 124(b)(i).
    \9\ See Exchange Rule 124(b)(i). See also Exchange Rule
124(b)(ii), which provides that any odd-lot market order that would
otherwise receive a partial execution will be executed in full.
    \10\ See Exchange Rule 124(b)(iii).
    \11\ Exchange Rule 124(b)(iv) provides that any odd-lot market
order that is not executed within 30 seconds shall be executed at
the price of the ``adjusted ITS offer'' or ``adjusted ITS bid'', as
those terms are defined in Exchange Rule 124.60, rather than the
NBBO. However, with the elimination of the Intermarket Trading
System (``ITS'') Plan on March 5, 2007, (see Securities Exchange Act
Release No. 55397 (March 5, 2007), 72 FR 11066 (March 12, 2007)
(File No. 4-208)), the ability to price such odd-lot orders in terms
of the ``adjusted ITS'' bid or offer no longer existed. The Exchange
states that, as of March 5, 2007, all odd-lot market orders that
remain unexecuted after 30 seconds have been executed at the price
of the NBBO, which is in fact the functional equivalent of the
adjusted bid or offer. Through this filing, the Exchange, among
other things, seeks to remove the concept of ``adjusted ITS bid''
and ``adjusted ITS offer''.
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    Odd-lot limit orders to buy or sell are executed at the price of
the first round-lot transaction that is at or higher/lower than the
limit price of the odd-lot limit order, subject to the volume
limitation of the round-lot transaction.\12\ Odd-lot limit orders are
aggregated with odd-lot market orders for purposes of the volume
limitation. Odd-lot limit orders eligible for execution are combined
with odd-lot market orders in order to determine time priority. Odd-lot
limit orders are similarly aggregated with odd-lot market orders for
purposes of the netting provision. As with odd-lot market orders, odd-
lot limit orders that would otherwise receive a partial execution will
be executed in full. There is no 30-second default execution

provision for odd-lot limit orders.\13\ Odd-lot limit orders to sell
short are executed at the price of the first round-lot transaction
which is a plus or a zero plus tick.
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    \12\ See Exchange Rule 124(c).
    \13\ See Exchange Rule 124(c), which states that execution of an
odd-lot limit order is subject to the principles of paragraphs
(b)(i), (ii) and (iii) of the rule.
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    The odd-lot portion of partial round-lot (``PRL'') orders \14\ are
executed at the same price as the round lot portion, and are processed
through the odd-lot System with the specialist as the contra party. The
PRL order is automatically executed in accordance with Exchange Rules
1000-1004. Where there is more than one transaction required to effect
the complete execution of the round-lot portion of a PRL order, the
odd-lot portion is executed at the price of the first transaction in
which a round-lot portion of the PRL order is executed.
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    \14\ See Exchange Rule 124.50.
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b. Representing Odd-Lot Orders in the Round-Lot Market
    The Exchange has always believed that the most appropriate way to
execute odd-lot orders is to represent them in the round-lot auction
market where they would interact with all other market interest and be
priced in accordance with supply and demand dynamics. However, such
representation required technical changes to a number of Exchange
systems and was not a readily viable option.\15\ In view of this, the
pricing methodology of Exchange Rule 124 was amended in 2004 (as is
reflected in its current operation today, i.e., using the next round-
lot sale price) as an interim measure to accommodate the pricing and
execution of odd-lot orders in a manner that was based on the
prevailing market.\16\
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    \15\ See Securities Exchange Act No. 49536 (April 7, 2004), 69
FR 19890, 19893 (April 14, 2004) (SR-NYSE-2003-37).
    \16\ See Securities Exchange Act No. 49745 (May 20, 2004), 69 FR
29998 (May 26, 2004) (SR-NYSE-2003-37).
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    The Exchange has continued its move towards the goal of integrating
odd-lots into the round-lot market. The Exchange states that this
proposal should be seen as part of the Exchange's efforts to prepare
its membership for subsequent changes in market structure. The Exchange
proposes to amend the pricing and execution methodology of Exchange
Rule 124 to more precisely emulate executions in the round-lot market.
c. Proposed Change to Odd-Lot Trading Platform
    Through this filing, the Exchange seeks to modify the execution of
odd-lot orders such that: (i) Marketable odd-lot orders will begin
automatic execution only following the first round-lot transaction in
the subject security; (ii) marketable odd-lot buy and sell orders will
be netted against one another and executed, in time priority of
receipt, at the price of the next round-lot transaction on the
Exchange; (iii) any imbalance of marketable odd-lot buy and sell orders
incapable of being netted will be executed at the price of the NBBO;
(iv) odd-lot limit orders that are not marketable upon receipt will be
executed, upon becoming marketable, at their limit price subject to
certain conditions; and (v) in certain instances as described below,
odd-lot executions will be limited in size to the lesser of either the
number of shares of the last round-lot transaction or the number of
shares of the national best bid (in the case of an odd-lot order to
sell) or the national best offer (in the case of an odd-lot order to
buy). Moreover, the odd-lot portion of a PRL order will be executed
only if the entire round-lot portion of the PRL order has completed
execution.\17\ The odd-lot portion of a PRL will be executed with and
at the same price of the last round lot transaction that completes the
round lot portion of the PRL. With respect to all the proposed
modifications above, the specialist remains the contra side to all odd-
lot executions. The pricing and execution of odd-lot orders are set
forth in Exchange Rule 124.\18\
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    \17\ Telephone conversation between Gillian Rowe, Principal Rule
Counsel, NYSE, and Jennifer Dodd, Special Counsel, Division of
Market Regulation, Commission, on September 24, 2007.
    \18\ The Exchange has provided examples of the operation of the
most relevant aspects of this proposed rule change. These examples
are available on the Commission's Web site at http://www.sec.gov/rules/sro/nyse.shtml
.

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    Section (a) of the rule remains unchanged. A new section (b) will
be created to define the term ``marketable'' as it pertains to odd-lot
limit orders. For the purposes of the rule, the term ``marketable''
when applied to an odd-lot limit order to buy shall mean at a price
that is at or higher than the current Exchange best offer and when
applied to an odd-lot limit order to sell shall mean at a price that is
at or lower than the current Exchange best bid. The original section
(b) of the rule, which governs the pricing and execution of odd-lot
market orders, will be amended to become section (c).
Marketable Odd-Lot Orders--Proposed Section (c)
    Proposed section (c) of the rule will govern the execution of
marketable odd-lot orders, and provides that marketable odd-lot orders
will begin automatic execution only after the first round-lot
transaction on the Exchange in the subject security. If there is no
initial round-lot transaction in the subject security, then no odd-lot
orders will be executed in the trading session.\19\ After the initial
round-lot transaction in the subject security, marketable odd-lot
orders will be executed in time priority upon receipt by the odd-lot
System at the price of the next round-lot transaction in the subject
security.
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    \19\ It should be noted that execution of odd-lot orders after a
trading halt will be governed by proposed subsection (c)(vii) and
executions on the close will be governed by proposed subsection
(c)(viii), as described more fully below.
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    Subsection (b)(i) of the original rule text will be amended to
become subsection (c)(i). Proposed subsection (c)(i) retains the
netting provision of the original rule text, and provides that an equal
number of shares of marketable buy and sell odd-lot orders will be
paired-off against one another and executed at the price of the
applicable round-lot transaction with the specialist as the contra side
to the executions.
    A new subsection (c)(ii) will be created to provide that marketable
odd-lot orders that do not receive an execution pursuant to proposed
subsection (c)(i) will be executed in time priority of receipt at the
price of the NBBO with the specialist as the contra side to the
executions. Subsection (b)(ii) of the original rule text will be
amended to become subsection (c)(iii). Proposed subsection (c)(iii)
modifies the volume limitation of the original rule text and provides
that the number of shares of marketable odd-lot orders executed at the
price of the NBBO \20\ will not exceed the lesser of either (1) the
number of shares in the last round-lot transaction, or (2) the number
of shares available at the national bid (in the case of an odd-lot
order to sell) or the national best offer (in the case of an odd-lot
order to buy).\21\ Proposed subsection (c)(iii) also provides that a
marketable odd-lot order that would receive a partial execution as a
consequence of the volume limitation will continue to be executed in
full.
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    \20\ Non-marketable odd-lot limit orders that become marketable
and do not receive an execution pursuant to subsection (c)(i) will
be executed pursuant to (c)(ii) and (c)(iii) at their limit price.
    \21\ In determining the size of the volume limitation described
in proposed subsection (c)(iii), the Exchange will only consider the
size of displayed ``protected bids'' and ``protected offers'' as
defined by Rule 600(b)(57) of Regulation NMS, 17 CFR 242.600(b)(57).
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    Subsection (b)(iii) of the original rule text, which explains the
execution of odd-lot market orders that do not receive an execution
because of the volume limitation, will be amended to

become subsection (c)(iv). The purpose of this subsection is to make
clear that the procedure of proposed subsection (c)(i), (ii) and (iii)
will repeat itself after each round-lot transaction on the Exchange.
Since the same principle also applies to the operation of the 30-second
timing provision described in proposed subsection (c)(v), the Exchange
has further amended this subsection to include a reference to
subsection (c)(v). Accordingly, proposed subsection (c)(iv) provides
that marketable odd-lot orders that do not receive an execution
pursuant to subsections (c)(i), (ii), (iii) and (v), will be executed,
in time priority of receipt, following subsequent round-lot
transactions on the Exchange subject to the same procedures of proposed
subsections (c)(i), (ii), (iii) and (v).
    Subsection (b)(iv) of the original rule text, which governs the
handling of odd-lot market orders that do not receive an execution
after the next round lot transaction within 30 seconds of receipt, will
be amended to become subsection (c)(v). Proposed subsection (c)(v)
provides that marketable odd-lot orders that do not receive an
execution within 30 seconds of receipt by the System will be executed,
after 30 seconds, in time priority of receipt, at the price of the
national best bid (in the case of an order to sell) or at the price of
the national best offer (in the case of an order to buy) at the time of
the execution, subject to the volume restrictions in subsection
(c)(iii). The practical effect of this timing provision is that,
starting with the initial round-lot transaction on the Exchange in the
subject security, the operation of proposed subsection (c)(v) will
repeat itself every 30 seconds, providing for the execution of
marketable odd-lots at the price of the NBBO and the execution of non-
marketable odd-lot limit orders that have become marketable at their
limit price.
    Subsection (b)(v) of the original rule text, which explains the
handling of odd-lot market orders entered prior to the opening in the
subject security, will be changed to become subsection (c)(vi).
Proposed subsection (c)(vi) of the rule states that marketable odd-lot
orders entered before the opening transaction of the subject security
will be executed at the price of the opening transaction. The volume
limitation of proposed subsection (c)(iii) will not apply to the
opening transaction in the subject security.
    A new subsection enumerated as (c)(vii) will be added to the rule
text. Proposed subsection (c)(vii) provides that, in the event the
Exchange halts trading in a subject security, marketable odd-lot orders
that have been received by Exchange systems during the trading halt
shall be executed at the price of the re-opening transaction in the
subject security. The volume limitation of proposed subsection (c)(iii)
will not apply to any re-opening transaction in the subject security.
    Subsection (b)(vi) of the original rule text, which explains the
handling of odd-lot market orders entered prior to the close of
trading, will be changed to become subsection (c)(viii). Proposed
subsection (c)(viii) describes the pricing of marketable odd-lot orders
at the close of trading; however, it also governs the pricing and
execution of non-marketable odd-lot limit orders that become marketable
but remain unexecuted prior to the close of trading. The pricing and
execution of non-marketable odd-lot limit orders is specifically
described in proposed section (d) of the rule text.\22\
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    \22\ In order to avoid confusion with respect to the description
of how odd-lot orders are handled at the close, the Exchange
collectively refers to marketable odd-lot orders and non-marketable
odd-lot limit orders that have become marketable prior to the close
of trading as ``Marketable Odd-lot Orders at the Close'' in its
discussion below of the execution and pricing of odd-lot orders at
the close of trading.
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    Proposed subsection (c)(viii) states that Marketable Odd-lot Orders
at the Close will be executed, in time priority of receipt, at the
price of the closing transaction. This subsection includes a netting
provision (i.e., the execution of Marketable Odd-lot Orders at the
Close will total an equal number of shares bought and sold). After such
netting has occurred, any additional shares of Marketable Odd-lot
Orders at the Close that remain will be executed subject to the volume
limitation. The volume limitation of proposed subsection (c)(viii) is
related specifically to the size of the closing transaction (i.e., the
execution of additional shares of Marketable Odd-lot Orders at the
Close will not exceed the number of shares of the closing transaction).
Proposed subsection (c)(viii) also provides that Marketable Odd-lot
Orders at the Close that would otherwise receive a partial execution
will be executed in full.
    Subsection (b)(vii) of the original rule text, which governs the
execution of odd-lot market orders to sell short, will be removed
entirely as it is no longer necessary in light of the Commission's
elimination of restrictions on the execution prices of short sales
under the Act and prohibition of self-regulatory organizations from
having a short sale price test.\23\
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    \23\ See Securities Exchange Release No. 55970 (June 28, 2007),
72 FR 36348 (July 3, 2007).
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Non-Marketable Odd-Lot Limit Orders--Proposed Section (d)
    Section (c) of the original rule text governs the operation of odd-
lot limit orders. In this filing, the Exchange proposes to amend
section (c) to become section (d). Proposed section (d) will govern the
execution of odd-lot limit orders that are not marketable upon receipt
by the odd-lot System. Pursuant to proposed section (d), non-marketable
odd-lot limit orders shall, upon becoming marketable, be executed in
time priority of receipt at the price of subsequent round-lot
transactions on the Exchange in the subject security based on the
conditions of proposed subsections (c)(i)-(v), except that when an odd-
lot execution occurs pursuant to subsections (c)(ii) or (v), such odd-
lot limit order will be executed at its limit price. Thus, a non-
marketable odd-lot limit order that becomes marketable is eligible to
be netted and executed at the price of the next round-lot transaction
pursuant to proposed subsection (c)(i). If this odd-lot limit order
does not receive an execution then, pursuant to proposed subsection
(c)(ii), the odd-lot limit order is eligible to be executed, at its
limit price, subject to the volume limitation of proposed subsection
(c)(iii) and the provisions of subsections (c)(iv) and (c)(v).\24\ With
respect to proposed subsection (c)(v), which explains the operation of
the 30-second timing provision, if this odd-lot limit order remains
unexecuted within 30 seconds, it will receive an execution after 30
seconds at its limit price, in accordance with proposed section (d). As
previously discussed in this filing, proposed section (d) includes a
second exception which provides that non-marketable odd-lot limit
orders that become marketable, but remain unexecuted prior to the close
of trading will be executed at the price of the closing transaction,
subject to the specific principals of proposed subsection (c)(viii),
which governs the execution of odd-lots at the close of trading.
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    \24\ Proposed subsection (c)(iv) explains how a non-marketable
odd-lot limit order that has become eligible for execution will be
executed if it does not receive an execution because of the volume
limitation.
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Odd-Lot Market Orders To Sell Short
    Section (d) of the original rule text governs the operation of odd-
lot limit orders to sell short and will be removed entirely pursuant to
the Commission's elimination of the short sale price test.\25\
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    \25\ See footnote 23, supra.

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Odd-Lot Stop Orders--Section (e)
    Section (e) of Exchange Rule 124 delineates the operation of odd-
lot market stop orders. While the lettering of this section remains the
same, this filing proposes to amend section (e) by removing term
``market'' from the description of the order type. Section (e) of the
rule will retain the use of a round-lot transaction as a trigger to
convert each type of odd-lot stop order delineated in section (e) into
a market order. A new subsection (e)(i) will be added to indicate that
stop orders entered prior to the opening which would be elected by the
opening transaction will be executed at the price of the opening
transaction.
    Subsections (e)(i) (Buy Stop Orders) and (e)(ii) (Sell Stop Orders,
Marked ``Long'') of the original rule text will be amended to become
subsection (e)(ii) and subsection (e)(iii), respectively. Pursuant to
proposed subsections (e)(ii) and (e)(iii), once a buy stop order or a
sell stop order is elected at its stop price and becomes a market
order, it shall be filled, subject to all the provisions of proposed
section (c) of the rule. In other words, once these orders are elected
and become market orders they are priced and executed as any other
marketable odd-lot order. References to the phrase ``marked `Long'''
will be removed from proposed subsection (e)(iii) since the
Commission's elimination of the short sale price test renders such
distinctions between stop orders marked ``short'' and ``long''
unnecessary.
    Subsection (e)(iii) of the original rule text (Sell Stop Orders,
Marked ``Short'') will be removed entirely pursuant to the Commission's
elimination of the short sale price test.\26\
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    \26\ Id.
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Other Types of Odd-Lot Orders--Proposed Section (g)
    The lettering of section (h) (Other Types of Orders) of the rule
will be amended in this filing to become section (g). Proposed
subsection (g)(2) (Sell ``On Close'') will be amended to remove the
phrase ``marked `Long''' and the sentence ``[a]n order to sell ``On
Close'' marked ``short'' shall not be accepted'' in order to conform
with the elimination of the short sale price test by the
Commission.\27\ The phrase ``closing round-lot `sell''' found in
proposed subsection (g)(2) will be changed to the phrase ``closing
round-lot `sale''' in order to clarify the sentence.
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    \27\ Id.
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PRL Orders

    The execution of PRL orders is discussed in section .50 of the
Supplementary Material of the rule. The Exchange proposes to amend
section .50 of the Supplementary Material to reflect that, where more
than one round lot transaction is required to effect the complete
execution of the round-lot portion of a PRL, the odd lot portion will
receive an execution only if the entire round lot portion of the order
as received by the Exchange is executed. Moreover, the odd lot portion
will then be executed at the same price as the last round lot
transaction that is needed to complete the entire round-lot portion of
the PRL.
Conforming Changes to Exchange Rule 124
    The Exchange further proposes to make conforming changes to other
sections of Exchange Rule 124. The lettering of the original section
(g) (Limited Order, ``With or Without Sale'') of Exchange Rule 124 will
be changed to section (f).\28\ Section .60 of the Supplementary
Material of the rule, which defines the term ``adjusted ITS bid/offer''
for the purposes of the rule, will be removed in its entirety to
conform with the elimination of ITS.
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    \28\ The original section (f) of Exchange Rule 124 (``Limit Stop
Orders'') was removed in a previous rule filing and the lettering of
the remainder of the rule was not revised at that time. See
Securities Exchange Act Release No. 54820 (November 27, 2006), 71 FR
70824 (December 6, 2006) (SR-NYSE-2006-65).
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    Section .70 of the Supplementary Material of the original rule text
will be re-numbered to become section .60. Proposed section .60, which
explains the handling of odd-lot market orders in instances when
quotation collection or dissemination facilities are inoperable or the
market in a security is in a ``non-firm'' mode, will be amended to
reflect that marketable odd-lot orders will resume execution once
quotation information is available, at a price that is in accordance
with all the provisions of proposed section (c) of the rule.
    Finally, section .80 of the Supplementary Material of the original
rule text will be re-numbered to become section .70. Proposed section
.70 of the Supplementary Material will be amended to reflect that the
execution of odd-lot orders will be suspended and resume trading
pursuant to Exchange Rule 1000, paragraph (a), subsections (i)-(v).
References to Exchange Rules 1002, 1003 and 1004 will be removed
because they do not specifically pertain to the suspension of automatic
executions.
    The Exchange believes that the aforementioned proposed
modifications to the odd-lot System will further the efficient
execution of customer odd-lot orders while ensuring that the odd-lot
orders are appropriately executed without an unfair time priority or
price advantage over round-lot orders.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\29\ in general, and
with Section 6(b)(5) of the Act,\30\ in particular, in that it is
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest. The Exchange also states that the proposed rule change
also is designed to support the principles of Section 11A(a)(1) \31\ in
that it seeks to assure economically efficient execution of securities
transactions, make it practicable for brokers to execute investors'
orders in the best market and provide an opportunity for investors'
orders to be executed without the participation of a dealer.
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    \29\ 15 U.S.C. 78f(b).
    \30\ 15 U.S.C. 78f(b)(5).
    \31\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will not 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 were neither solicited nor received.

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

    Because the foregoing proposed rule change effects a change in an
existing order-entry or trading system of a self-regulatory
organization that does not (1) significantly affect the protection of
investors of the public interest, (2) impose any significant burden on
competition, and (3) have the effect of limiting the access to or
availability of the system, it has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \32\ and Rule 19b-4(f)(5) thereunder.\33\
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    \32\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \33\ 17 CFR 240.19b-4(f)(5).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate 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.

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 Number SR-NYSE-2007-82 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 Number SR-NYSE-2007-82. 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 (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, 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 NYSE. 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-NYSE-2007-82 and should be
submitted on or before October 24, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\34\
---------------------------------------------------------------------------

    \34\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-19488 Filed 10-2-07; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 144 (Thursday, July 26, 2012)]
[Notices]
[Page 43846]
[FR Doc No: 2012-18231]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2012-N-0001]

Food and Drug Administration Pediatric Medical Devices Workshop;
Notice of Workshop

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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    The Food and Drug Administration's (FDA) Office of Orphan Products
Development is announcing the following workshop: FDA Pediatric Medical
Devices Workshop. This meeting is intended to focus on challenges in
pediatric device development--namely, business planning and funding
concerns; and how sponsors can most effectively interact with the FDA.
The goal of this meeting is to engage and educate pediatric innovators
and device industry sponsors.
    This educational meeting will consist of live presentations
provided by FDA experts from various Centers and Offices, as well as
from outside experts. The interactive meeting will also include a
``mock'' FDA pre-submission meeting for a ``mock'' pediatric medical
device, to illustrate how such encounters may transpire. In addition,
attendees will have an opportunity during lunch to engage with
Pediatric Device Consortia Grant Program leaders. The meeting will be
recorded for subsequent posting on the FDA Web site.
    Date and Time: The meeting will be held on September 24, 2012, from
8 a.m. to 5:30 p.m.
    Location: FDA White Oak Campus, 10903 New Hampshire Ave., Bldg. 31
Conference Center, the Great Room (rm. 1503), Silver Spring, MD 20993-
0002. For participants who cannot attend the live meeting, a recorded
Web cast will be made available after the meeting.
    Contact: Linda Ulrich, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 32, Rm.5206, Silver Spring, MD 20993-0002, 301-
796-8686, FAX:<PHONE_NUMBER>, email<EMAIL_ADDRESS>    Registration: Interested participants may register for this meeting
at the following Web site: https://events-support.com/events/FDA_OOPD_Pediatric_Medical_Devices_Workshop. Please note that
registration for the live meeting will be limited based on available
seating.
    If you need sign language interpretation during this meeting,
please contact Linda Ulrich at<EMAIL_ADDRESS>by August 24,
2012.
    The FDA Pediatric Medical Devices Workshop is supported by FDA's
Office of Orphan Product Development and will include participants from
the FDA's Center for Devices and Radiologic Health.
    (FDA has verified the Web site addresses throughout this document,
but we are not responsible for any subsequent changes to the Web sites
after this document publishes in the Federal Register.)

    Dated: July 17, 2012.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2012-18231 Filed 7-25-12; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register Volume 82, Number 124 (Thursday, June 29, 2017)]
[Notices]
[Pages 29588-29592]
[FR Doc No: 2017-13585]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81010; File No. SR-CBOE-2017-049]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Related to Rule 6.56 (Compression Forums)

June 23, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 16, 2017, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the
Exchange. The Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend Rule 6.56. The text of the proposed
rule change is provided below.

(additions are italicized; deletions are [bracketed])
* * * * *
Chicago Board Options Exchange, Incorporated Rules
* * * * *
Rule 6.56. Compression Forums

    (a) No change.
    (b) Trades executed through compression forums are subject to
trading rules applicable to trading in SPX during Regular Trading Hours
(including without limitation manner of bids and offers, allocation and
priority, and solicited transaction rules), except:
    (1) opening transactions in SPX options may not execute against
opening transactions through a compression forum; however, closing
transactions in SPX options (including compression-list positions) that
are represented in the compression forum may execute against closing or
opening transactions; [only closing transactions in SPX options
(including compression-list positions) may be executed through a
compression forum;] and
    (2) only closing transactions may be executed in $0.01 increments,
including simple and complex orders. Bids and offers for opening
transactions made in response to the representation of a closing
transaction must be priced in the standard increment for simple and
complex orders set forth in Rule 6.42. [the minimum increment for bids
and offers will be $0.01, including for both simple and complex
orders.]
    (c) No change.
* * * * *
    The text of the proposed rule change is also available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 6.56 (Compression Forums) in
order to fine-tune the compression forum process. Specifically, the
Exchange seeks to allow closing transactions that are represented in
the compression forum to be executed against opening transactions.
Allowing closing transactions that are represented in the compression
forum to be executed against opening transactions increases the
likelihood that existing positions creating high bank regulatory
capital requirements will be closed--thus lowering a TPH's bank capital
footprint.
Background
    SEC Rule 15c3-1 (Net Capital Requirements for Brokers or Dealers)
(``Net Capital Rules'') requires registered broker-dealers, unless
otherwise excepted, to maintain certain specified minimum levels of
capital.\5\ The Net Capital Rules are designed to protect securities
customers, counterparties, and creditors by requiring that broker-
dealers have sufficient liquid resources on hand, at all times, to meet
their financial obligations. Notably, hedged positions, including
offsetting futures and options contract positions, result in certain
net capital requirement reductions under the Net Capital Rules.\6\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.15c3-1.
    \6\ In addition, the Net Capital Rules permit various offsets
under which a percentage of an option position's gain at any one
valuation point is allowed to offset another position's loss at the
same valuation point (e.g., vertical spreads).
---------------------------------------------------------------------------

    Subject to certain exceptions, CBOE Clearing Trading Permit Holders
(``CTPHs'') \7\ are subject to the Net Capital Rules. However, a subset
of CTPHs are subsidiaries of U.S. bank holding companies, which, due to
their affiliations with their parent U.S. bank holding companies, must
comply with additional bank regulatory capital requirements pursuant to
rulemaking required under the Dodd-Frank Wall Street Reform and
Consumer Protection Act.\8\ Pursuant to this mandate, the Board of
Governors of the Federal Reserve System, the Office of the Comptroller
of the Currency, and the Federal Deposit Insurance Corporation have
approved a regulatory capital framework for subsidiaries of U.S. bank
holding company clearing firms.\9\ Generally, these rules impose higher
minimum capital requirements, more restrictive capital eligibility
standards, and higher asset risk weights than were previously mandated
for CTPHs that are subsidiaries of U.S. bank holding companies under
the Net Capital Rules. Furthermore, the new rules do not permit
deductions for hedged securities or offsetting options positions.\10\
Rather, capital charges under these standards are, in large part, based
on the aggregate notional value of short positions regardless of
offsets. As a result, in general, CTPHs must hold substantially more
bank regulatory capital than would otherwise be required under the Net
Capital Rules. The impact of these regulatory capital rules are
compounded in the SPX options market due to the large notional value of
SPX contracts.
---------------------------------------------------------------------------

    \7\ All CBOE CTPHs must also be clearing members of The Options
Clearing Corporation (``OCC'').
    \8\ H.R. 4173 (amending section 3(a) of the Securities Exchange
Act of 1934 (the ``Act'') (15 U.S.C. 78c(a))).
    \9\ 12 CFR 50; 79 FR 61440 (Liquidity Coverage Ratio: Liquidity
Risk Measurement Standards).
    \10\ Many options strategies, including relatively simple
strategies often used by retail customers and more sophisticated
strategies used by market-makers and institutions, are risk-limited
strategies or options spread strategies that employ offsets or
hedges to achieve certain investment outcomes. Such strategies
typically involve the purchase and sale of multiple options (and may
be coupled with purchases or sales of the underlying securities),
executed simultaneously as part of the same strategy. In many cases,
the potential market exposure of these strategies is limited and
defined. Whereas regulatory capital requirements have historically
reflected the risk-limited nature of carrying offsetting positions,
these positions may now be subject to higher regulatory capital
requirements. Various factors, including administration costs;
transaction fees; and limited market demand or counterparty
interest, however, may discourage market participants from closing
these positions even though many market participants likely would
prefer to close the positions rather than carry them to expiration.
---------------------------------------------------------------------------

    The Exchange believes that these higher regulatory capital
requirements have the potential to impact liquidity in the SPX options
market by limiting the amount of capital CTPHs can allocate to their
clients' transactions. Specifically, the rules may cause CTPHs to
impose stricter position limits on their client clearing members, which
include CBOE Market-Makers. Such position limits may impact the
liquidity Market-Makers might supply in the SPX market, and this impact
may be compounded when a CTPH has multiple Market-Maker client
accounts, each having largely risk-neutral portfolio holdings.\11\ The
Exchange believes that permitting Market-Makers and Floor Brokers (for
their own proprietary accounts or for the account of another on an
agency basis) to efficiently close existing SPX options positions
through modified open outcry trading procedures on the Exchange floor
may assist CTPHs and TPHs to address bank regulatory capital
requirements and would likely have a beneficial effect on continued
liquidity in the SPX options market without adversely affecting market
quality.
---------------------------------------------------------------------------

    \11\ Several TPHs have indicated to the Exchange that the
heightened bank regulatory requirements could impact their ability
to provide consistent liquidity in the SPX options market unless
they are able to efficiently close their positions in SPX.
---------------------------------------------------------------------------

    In order to mitigate the potential negative effects of these
additional bank regulatory capital requirements and

foster continued liquidity in the SPX options market in a manner
consistent with the requirements, the Exchange adopted Rule 6.56
pursuant to which TPHs can reduce (or ``compress'') existing positions
in SPX at the end of each calendar month more efficiently through
trading in an open outcry compression forum.\12\ The Exchange believes
that making available these periodic trading forums, which allow for
closing transactions in SPX options series to occur at reduced
transaction fees likely contributes to additional liquidity and
continued competitiveness in the SPX market and promotes more efficient
capital deployment in light of bank regulatory capital requirements.
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release No. 79610 (December 20,
2016), 81 FR 95219 (December 27, 2016) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change Relating to
Compression of S&P 500(R) Index Options Positions) (SR-CBOE-2016-
090).
---------------------------------------------------------------------------

    Under current Rule 6.56, on the final three business days of each
calendar month, the Exchange holds compression forums in the SPX
trading crowd. Beforehand, in order to facilitate TPHs finding
counterparty offsets against which they can trade closing positions,
currently, TPHs may submit lists of existing SPX positions to the
Exchange that they wish to close during a compression forum. Prior to
the open of trading on the third-to-last business day of each calendar
month (i.e., the first day of the month on which a compression forum is
held), the Exchange makes available to all TPHs on its Web site a list
including each series for which both long and short compression-list
positions have been submitted to the Exchange (``compression-list
positions file''). In addition, TPHs that submit compression positions
list to the Exchange receive a compression-list positions file
containing the names of the TPHs that contributed to the file,
including contact information for each TPH's designated point of
contact. This list does not identify the specific positions that any
TPH has submitted to the Exchange.
    The Exchange then holds open outcry ``compression forums'' in which
all TPHs may participate whether or not they submitted positions for
inclusion in the compression-list position file. Currently, trades
executed during compression forums are subject to trading rules
applicable to trading in SPX during Regular Trading Hours, including
manner of bids and offers and allocation and priority rules, except:
(1) Only closing transactions in SPX options (including compression-
list positions) may be executed through a compression forum; and (2)
the minimum increment for all series is $0.01 during a compression
forum. TPHs that trade positions previously submitted to the Exchange
on a compression list may then take advantage of the compression-list
position fee rebate on portions of a transaction that involve their
compression-list positions, which are executed through a compression
forum.
    The Exchange proposes to amend Rule 6.56 to enhance the
effectiveness and utility of its compression forums process for market
participants. Specifically, the Exchange seeks to allow closing
transactions that are represented in the compression forum to be
executed against opening transactions. Allowing closing transactions
that are represented in the compression forum to be executed against
opening transactions increases the likelihood that existing positions
creating high bank regulatory capital requirements will be closed--thus
lowering a TPH's (or clearing firm's) bank capital footprint.
Proposal
    The purpose of Rule 6.56 is to encourage the closing of positions
that are creating high bank regulatory capital requirements. When Rule
6.56 was originally implemented, the Exchange was concerned that
allowing opening transactions in the compression forum ``would defeat
the purpose of the proposed rule[.]'' \13\ However, after observing the
compression process for the past several months, the Exchange believes
allowing closing transactions that are represented in the compression
forum to execute against opening transactions will not discourage the
closing of positions that are creating a high bank regulatory capital
footprint nor will it adversely affect the compression forums. Allowing
opening transactions will expand the liquidity available to close
positions represented in a compression forum, thus, increasing the
opportunity for TPHs to close positions that cause them to have high
bank regulatory capital footprints. Ultimately the Exchange believes
the increased opportunity for positions to be closed will in fact
further encourage TPHs to close positions that cause them to have high
bank regulatory capital footprints without adversely affecting the
compression forums.
---------------------------------------------------------------------------

    \13\ Id.
---------------------------------------------------------------------------

    Thus, the Exchange proposes to amend Rule 6.56(b)(1) to remove the
closing only restricting for compression forum executions.
Specifically, the Exchange proposes to amend Rule 6.56(b)(1) to provide
that transactions in SPX options (including compression-list positions)
that are represented in the compression forum may execute against
closing or opening transactions. To provide further clarity as to the
limited application of this change, the Exchange proposes to amend Rule
6.56(b)(1) to provide that opening transactions in SPX options may not
execute against opening transactions through a compression forum. The
Exchange notes that Rule 6.56(b)(1) already effectively prohibits
opening transactions from executing against opening transactions in a
compression forum because Rule 6.56(b)(1) currently provides that only
closing transactions are to be executed via a compression forum.
    Currently, transactions executed via a compression forum may be
executed in $0.01 increments for both simple and complex orders, but as
previously noted, compression forums are currently restricted to
closing transactions. Thus, with the expansion of compression forums to
opening transactions (provided they execute against closing
transactions), the Exchange proposes to amend Rule 6.56(b)(2) to
provide that only closing transactions may be executed in $0.01
increments, including simple and complex orders whereas bids and offers
for opening transactions made in response to the representation of a
closing transaction must be priced in the standard increment for simple
and complex orders set forth in Rule 6.42 (e.g., $0.05 for option
series below $3, $0.10 for option series at or above $3, and $0.05
increments for complex orders).\14\ The Exchange notes that the
proposed minimum increment for opening transactions executed against
closing transactions in a compression forum is consistent with the
minimum increment applicable to SPX transactions (opening or closing)
executed outside a compression forum.
---------------------------------------------------------------------------

    \14\ See Rule 6.42(1)-(4).
---------------------------------------------------------------------------

    Currently, only a fraction of the offsetting interest provided in
the compression-list positions have ultimately been closed out during
previous compression forums.\15\ This proposal will allow a TPH that is
representing closing transactions in a compression forum--but is unable
to close the position against another party's closing transaction--to
solicit TPHs or non-TPH customers or broker-dealers to participate in
the compression forum whether the TPH or non-TPH is opening or closing
a position. Although the most impactful

bank capital relief (in the context of listed options) occurs when two
parties can each close offsetting open position, whenever a TPH is able
to close a position--whether the TPH is transacting with a party that
is opening or closing a position--the TPH will lower its bank capital
footprint. Thus, the Exchange simply seeks to increase the opportunity
for TPHs to lower their bank capital footprint.
---------------------------------------------------------------------------

    \15\ In the months since the adoption of Rule 6.56, of the
compression-list positions submitted to the Exchange, less than 10%
of the offsetting interest were actually closed in transactions
through a compression forum.
---------------------------------------------------------------------------

    A party's bank capital footprint is largely a function of its
investor profile and clearing firm. TPHs are sophisticated parties
capable of assessing a transaction's impact on their bank capital
footprint and determining whether to close positions to reduce their
bank capital footprint. For those TPHs concerned with their bank
capital footprint, Rule 6.56 provides an opportunity for them to submit
compression-list positions and participate in the compression process.
The Exchange believes this proposal further encourages TPHs to close
positions via the compression process by increasing the likelihood that
there will be liquidity against which a closing position may execute.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\16\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \17\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \18\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that its proposal is
consistent with the Act in that it seeks to foster liquidity in the SPX
options market in light of the bank regulatory capital requirements. As
described above, the Exchange believes that the new bank regulatory
capital requirements could potentially limit the amount of capital
CTPHs can allocate to their clients' transactions, which in turn, may
impact liquidity, particularly in the SPX market. The Exchange believes
the proposal encourages TPHs to close positions via the compression
process by increasing the likelihood that there will be liquidity with
which to execute a closing position, which, in general, helps to
protect investors and the public interest because closing positions via
the compression process serves to alleviate the adverse impact of bank
capital requirements.
    The Exchange also believes the proposed rule change is consistent
with the Act, because the proposed procedure is consistent with its
current rules. The proposed rule would direct that all trading through
compression forums be conducted in accordance with normal SPX trading
rules and thus, in the same manner as transactions during normal SPX
trading, except that opening transactions may not execute against
opening transactions via a compression forum and that closing
transactions executed against closing transactions may be in penny
increments. The Exchange notes that Rule 6.56(b)(1) already effectively
prohibits opening transactions from executing against opening
transactions in a compression forum because Rule 6.56(b)(1) currently
provides that only closing transactions are to be executed via a
compression forum. The Exchange also notes that the proposed minimum
increment for opening transactions executed against closing
transactions in a compression forum (i.e., bids and offers for opening
transactions made in response to the representation of a closing
transaction must be priced in the standard increment for simple and
complex orders set forth in Rule 6.42) is consistent with the minimum
increment applicable to SPX transactions (opening or closing) executed
outside a compression forum.

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

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

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

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

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \19\ and Rule 19b-4(f)(6) thereunder.\20\
Because the foregoing proposed rule change does not: (i) Significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \21\ and Rule 19b-
4(f)(6) thereunder.\22\
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 15 U.S.C. 78s(b)(3)(A).
    \22\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \23\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day

operative delay so that the proposed rule change may become effective
on June 27, 2017, permitting the proposed change to take effect for the
compression forum scheduled to take place using the amended procedures
prior to the end of the second quarter. In justifying its requested
waiver, the Exchange noted that bank-imposed capital limits may impact
certain TPHs on at least a quarterly basis, which can effectively limit
the amount of liquidity that such TPHs, including some Market-Makers,
are willing or able to provide in SPX options. The month of June is the
end of a quarter, and the Exchange expressed concern that those bank
capital requirements may have adverse consequences on investors if the
impacted TPHs are not able to more effectively reduce their open
interest in SPX. The Exchange therefore believes that it is in the best
interest of investors and the general public to help ensure consistent
continued depth of liquidity in the SPX options market by allowing TPHs
to utilize the modified compression forum process set forth in this
proposal on the final three days of trading of the second quarter.
---------------------------------------------------------------------------

    \23\ 17 CFR 240.19b-4(f)(6).
    \24\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because this waiver will enable the Exchange to hold a compression
forum for SPX options under the proposed amended procedures prior to
the end of the second quarter, thereby helping to facilitate
transactions and remove impediments to quarter-end trading in SPX
options. The Commission notes that CBOE's compression forum rule, as
proposed to be amended, is limited in its application, involves no
material changes to how trading is conducted on the Exchange, involves
a process in which participation is voluntary and open to all, and is
designed as a means to help Market Makers and other market
participants, as well as their clearing brokers, to close positions in
SPX options that they carry on their books and which may impact their
available capital. For this reason, the Commission hereby waives the
30-day operative delay and designates the proposal effective on June
27, 2017.\25\
---------------------------------------------------------------------------

    \25\ 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).
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2017-049 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2017-049. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2017-049 and should be
submitted on or before July 20, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13585 Filed 6-28-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: June 20, 2008 (Volume 73, Number 120)]
[Proposed Rules]
[Page 35111-35112]
[DOCID:fr20jn08-22]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2008-0342; FRL-8581-8]

Approval and Promulgation of Implementation Plans; State of
Missouri

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA proposes to approve a State Implementation Plan (SIP) to
revise the sulfur dioxide (SO2) emissions rates and
averaging times for Kansas City Power & Light's Hawthorn Plant and
Montrose Station in Missouri rule, Restriction of Emission of Sulfur
Compounds. Previous changes to this rule were disapproved in 2006
because EPA was concerned that the averaging times for the rates at
these units had been dramatically increased from a 3-hour average to an
annual average and that the revised averaging times were not
demonstrated by the state to be protective of the short-term (3- and
24-hour) sulfur dioxide (SO2) National Ambient Air Quality
Standard (NAAQS). EPA believes that the recent changes, which EPA is
now proposing to approve, have been shown by Missouri to be protective
of the short-term SO2 NAAQS. This revision will ensure
consistency between the state and the federally-approved rules.

DATES: Comments on this proposed action must be received in writing by
July 21, 2008.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-
OAR-2008-0342, by mail to Amy Algoe-Eakin, Environmental Protection
Agency, Air Planning and Development Branch, 901 North 5th Street,
Kansas City, Kansas 66101. Comments may also

be submitted electronically or through hand delivery/courier by
following the detailed instructions in the ADDRESSES section of the
direct final rule located in the rules section of this Federal
Register.

FOR FURTHER INFORMATION CONTACT: Amy Algoe-Eakin at<PHONE_NUMBER>, or
by e-mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: In the final rules section of the Federal
Register, EPA is approving the state's SIP revision as a direct final
rule without prior proposal because the Agency views this as a
noncontroversial revision amendment and anticipates no relevant adverse
comments to this action. A detailed rationale for the approval is set
forth in the direct final rule. If no relevant adverse comments are
received in response to this action, no further activity is
contemplated in relation to this action. If EPA receives relevant
adverse comments, the direct final rule will be withdrawn and all
public comments received will be addressed in a subsequent final rule
based on this proposed action. EPA will not institute a second comment
period on this action. Any parties interested in commenting on this
action should do so at this time. Please note that if EPA receives
adverse comment on part of this rule and if that part can be severed
from the remainder of the rule, EPA may adopt as final those parts of
the rule that are not the subject of an adverse comment. For additional
information, see the direct final rule which is located in the rules
section of this Federal Register.

    Dated: June 9, 2008.
John B. Askew,
Regional Administrator, Region 7.
[FR Doc. E8-13839 Filed 6-19-08; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 207 (Thursday, October 27, 2022)]
[Proposed Rules]
[Pages 65020-65021]
[FR Doc No: 2022-23384]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 174, 175, and 177

[Docket No. FDA-2022-F-1108]

Environmental Defense Fund, Maricel Maffini, Breast Cancer
Prevention Partners, Clean Water Action/Clean Water Fund, Consumer
Reports, Endocrine Society, Environmental Working Group, Healthy Babies
Bright Futures, Linda Birnbaum, and the Nicholas School of the
Environment at Duke University; Filing of Food Additive Petition;
Correction

AGENCY: Food and Drug Administration, HHS.

ACTION: Notification of petition; correction.

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SUMMARY: The Food and Drug Administration (FDA or we) is correcting a
notification that appeared in the Federal Register of July 11, 2022.
The notification contained errors in the subject heading and list of
petitioners. This document corrects the errors.

DATES: This notification of petition correction is effective October
27, 2022.

FOR FURTHER INFORMATION CONTACT: Marissa Santos, Office of Food
Additive Safety (HFS-255), Center for Food Safety and Applied
Nutrition, Food and Drug Administration, 5001 Campus Dr., College Park,
MD 20740,<PHONE_NUMBER>; or Carrol Bascus, Office of Regulations and
Policy (HFS-024), Center for Food Safety and Applied Nutrition, Food
and Drug Administration, 5001 Campus Dr., College Park, MD 20740, 240-
402-2378.

SUPPLEMENTARY INFORMATION: In the Federal Register of July 11, 2022 (87
FR 41079), in FR Doc. 2022-14682, appearing on page 41079, the
following corrections are made:
    On page 41079, all instances of ``the Nicholas School of the
Environment at Duke University'' and ``Clean Water Fund'' are removed,
and the location of ``Maricel Maffini'' is revised in the list of
petitioners in the subject heading. The subject heading of the
notification is updated to read as follows: ``Environmental Defense
Fund, Breast Cancer Prevention Partners, Clean Water Action, Consumer
Reports, Endocrine Society, Environmental Working Group, Healthy Babies
Bright Futures, Maricel Maffini, and Linda Birnbaum; Filing of Food
Additive Petition''.
    On page 41079, ``the Nicholas School of the Environment at Duke
University'' and ``Clean Water Fund'' are removed from the list of
petitioners and the

location of ``Maricel Maffini'' is revised in the SUMMARY (1st column),
ADDRESSES (2nd column, Instructions paragraph), and Background (3rd
column, 1st paragraph) sections to read as follows: ``Environmental
Defense Fund, Breast Cancer Prevention Partners, Clean Water Action,
Consumer Reports, Endocrine Society, Environmental Working Group,
Healthy Babies Bright Futures, Maricel Maffini, and Linda Birnbaum''.

    Dated: October 20, 2022.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2022-23384 Filed 10-26-22; 8:45 am]
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