[Federal Register: June 29, 2010 (Volume 75, Number 124)]
[Notices]
[Page 37494-37497]
[DOCID:fr29jn10-108]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62335; File No. SR-NYSEArca-2010-58]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change, as Modified by Amendment No. 1, Amending NYSE
Arca Equities Rule 7.10 Relating to Clearly Erroneous Executions

June 21, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on June 17, 2010, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. On June 18, 2010, the Exchange submitted Amendment No. 1
to the proposed rule change. The Commission is publishing this notice
to solicit comments on the proposed rule change, as amended, from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 NYSE Arca Equities Rule 7.10
relating to clearly erroneous executions. The text of the proposed rule
change is available at the Commission's Web site at
http:[sol][sol]www.sec.gov, at the Exchange, the Commission's Public
Reference Room, and http:[sol][sol]www.nyse.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 those 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 parts of such statements.

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

1. Purpose
    The Exchange is proposing to amend NYSE Arca Equities Rule 7.10,
entitled Clearly Erroneous Executions. First, the Exchange proposes
replacing existing paragraph (c)(2) of Rule 7.10, entitled ``Unusual
Circumstances and Joint Market Rulings'' with a new paragraph, entitled
``Multi-Stock Events Involving Twenty or More Securities.'' Second, the
Exchange proposes replacing existing paragraph (c)(4) of Rule 7.10,
entitled ``Numerical Guidelines Applicable to Volatile Market Opens''
with a new paragraph, entitled ``Individual Security Trading Pauses.''
Third, the Exchange is proposing changes to existing paragraphs (f) and
(g) of Rule 7.10 to eliminate the ability of the Exchange to deviate
from the Numerical Guidelines contained in paragraph (c)(1) (other than
under limited circumstances set forth in paragraph (f)) when deciding
which transactions will be reviewed by the Exchange as potentially
clearly erroneous. Finally, the Exchange proposes modifications to
paragraphs (c)(1), (c)(3), and (e) of Rule 7.10 consistent with the
proposed changes to paragraphs (c)(2) and (c)(4).
    The Exchange is proposing the rule changes described below in
consultation with other markets and Commission staff to provide for
uniform treatment: (1) Of clearly erroneous execution reviews in Multi-
Stock Events involving twenty or more securities; and (2) in the event
transactions occur that result in the issuance of an individual
security trading pause by the primary market and subsequent
transactions that occur before the trading pause is in effect on the
Exchange. The Exchange has also proposed additional changes to Rule
7.10 that reduce the ability of the Exchange to deviate from the
objective standards set forth in the Rule in those circumstances. The
proposed changes are described in further detail below.
    As proposed, the provisions of paragraphs (c), (e)(2), (f), and (g)
of Rule 7.10, as amended pursuant to this filing, would be in effect
during a pilot period set to end on December 10, 2010. If the pilot is
not either extended or approved permanent by December 10, 2010, the
prior versions of paragraphs (c), (e)(2), (f), and (g) of Rule 7.10
would be in effect.
Revised Paragraph (c)(2) Related to Multi-Stock Events Involving Twenty
or More Securities
    The Exchange proposes to eliminate the majority of existing
paragraph (c)(2), which provides flexibility to the Exchange to use
different Numerical Guidelines or Reference Prices in various ``Unusual
Circumstances.'' The Exchange proposes to replace this paragraph with
new language that would apply to Multi-Stock Events involving twenty or
more securities whose executions occurred within a period of five
minutes or less. The revised paragraph would retain language making
clear that during Multi-Stock Events involving twenty or more
securities the number of affected transactions may be such that
immediate finality is necessary to maintain a fair and orderly market
and to protect investors and the public interest. Accordingly, in such
circumstances, decisions made by the Exchange in consultation with
other markets could not be appealed.
    Further, as proposed, in connection with reviews of Multi-Stock
Events involving twenty or more securities, the Exchange may use a
Reference Price other than consolidated last sale in its review of
potentially clearly erroneous executions. With the exception of those
securities under review that are subject to an individual security
trading pause as described in proposed paragraph (c)(4), and to ensure
consistent application across market centers when proposed paragraph
(c)(2) is invoked, the Exchange will promptly coordinate with the other
market centers to determine the appropriate review period, which may be
greater than the period of five minutes or less that triggered
application of proposed paragraph (c)(2), as well as select one or more
specific points in time prior to the transactions in question and use
transaction prices at or immediately prior to the one or more specific
points in time selected as the Reference Price. The Exchange will
nullify as clearly erroneous all transactions that are at prices equal
to or greater than 30% away from the Reference Price in each affected
security during the review period selected by the Exchange and other
markets consistent with the proposed paragraph (c)(2).
    Because the Exchange and other market centers are adopting
different threshold and standards to handle large-scale market events,
which would include events occurring during times of high volatility at
the beginning of regular trading hours, the Exchange proposes deletion
of paragraph (c)(4) (``Numerical Guidelines Applicable to Volatile
Market Opens'') of the existing rule. The Exchange believes that this
provision is no longer necessary, and if maintained, could result in
extremely high Numerical Guidelines (up to 90%) in certain
circumstances.
Revised Paragraph (c)(4) Related to Individual Security Trading Pauses
    The Commission has just approved the Exchange's filing to adopt a
rule permitting the primary listing market to invoke a trading pause
for an individual security if the price of such security moves 10% or
more from a sale in a preceding five-minute period.\4\ This rule is
currently a pilot and is applicable to securities included in the S&P
500 Index.
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    \4\ See Securities Exchange Act Release No. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-NYSEArca-2010-41).
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    As described above, the Exchange is proposing to eliminate existing
paragraph (c)(4) (``Numerical Guidelines Applicable to Volatile Market
Opens''). The Exchange proposes adopting a rule, numbered as (c)(4)
following such elimination, which will provide for uniform treatment of
clearly erroneous execution reviews in the event transactions occur
that result in the issuance of an individual security trading pause by
the primary listing market and subsequent transactions that occur
before the trading pause is in effect on the Exchange. The proposed
rule change is necessary to provide greater certainty of the clearly
erroneous Reference Price for transactions that trigger a trading pause
(the ``Trigger Trade'') and subsequent transactions occurring between
the time of the Trigger Trade and the time the trading pause message is
received by the Exchange from the single plan processor responsible for
consolidation and dissemination of information for the security and put
into effect on the Exchange, especially under highly volatile and
active market conditions.
    The Exchange proposes to revise paragraph (c)(4) of Arca Equities
Rule 7.10 to allow the Exchange to use the price that triggered a
trading pause in an individual security (the ``Trading Pause Trigger
Price'') as the Reference Price for clearly erroneous execution reviews
of a Trigger Trade and transactions that occur immediately after a
Trigger Trade but before a trading pause is in effect on the Exchange.
As proposed, the phrase ``Trading Pause Trigger Price'' shall mean the
price that triggered a trading pause in any security subject to Arca
Equities Rule 7.11. The Trading Pause Trigger Price reflects a price
calculated

by the primary listing market over a rolling five-minute period and may
differ from the execution price of a transaction that triggered a
trading pause. The Exchange will rely on the primary listing market
that issued an individual security trading pause to determine and
communicate the Trading Pause Trigger Price for such security. The
Exchange proposes to make clear in the text that the proposed standards
in paragraph (c)(4) apply regardless of whether the security at issue
is part of a Multi-Stock Event involving five or more securities as
described in proposed paragraphs (c)(1) and (c)(2).
    As proposed, the Numerical Guidelines set forth in NYSE Arca
Equities Rule 7.10(c)(1), other than those Numerical Guidelines
applicable to Multi-Stock Events, would apply to reviews of Trigger
Trades and subsequent transactions. The Exchange proposes to review, on
its own motion pursuant to paragraph (g) of the Rule, all transactions
that trigger a trading pause and subsequent transactions occurring
before the trading pause is in effect on the Exchange. Because the
proposed rules for trading pauses would only apply within Regular
Trading Hours,\5\ an execution would be reviewed and nullified as
clearly erroneous if it exceeds the following thresholds:
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    \5\ Core Trading Hours are defined in NYSE Arca Rule 1.1(j) as
the time between 6:30 a.m. and 1 p.m. Pacific Time. An individual
security trading pause could be issued based on a Trigger Trade that
occurs at any time between 6:45 a.m. and 1:35 p.m. Pacific Time on
the Exchange or 9:45 a.m. and 3:35 p.m. Eastern Time on the other
primary listing markets. See, e.g., NYSE Arca Rule 7.11, NYSE Rule
80C, and Nasdaq Rule 4120(a)(11).

------------------------------------------------------------------------
                                          Numerical guidelines (subject
                                         transaction's % difference from
       Reference price or product           the Trading Pause Trigger
                                                      Price)
------------------------------------------------------------------------
Greater than $0.00 up to and including   10%
 $25.00.
Greater than $25.00 up to and including  5%
 $50.00.
Greater than $50.00....................  3%
Leveraged ETF/ETN securities...........  Regular Trading Hours Numerical
                                          Guidelines multiplied by the
                                          leverage multiplier (i.e.,
                                          2x).
------------------------------------------------------------------------

    As further proposed, in conducting this review, and notwithstanding
anything to the contrary contained in paragraph (c)(1), where a trading
pause was triggered by a price decline (rise), the Exchange would limit
its review to transactions that executed at a price lower (higher) than
the Trading Pause Trigger Price.
Revision to Paragraph (e)
    The Exchange further proposes to amend paragraph (e) to provide
that when rulings are made in conjunction with one or more market
centers, the number of the affected transactions is similarly such that
immediate finality is necessary to maintain a fair and orderly market
and to protect investors and the public interest and, hence, are also
non-appealable. This provision ensures that in the case of joint market
rulings, even for situations involving less than 20 securities, such
rulings are not appealable. This is consistent with current paragraph
(c)(2) of the Rule, which is proposed to be deleted.
Revisions to Paragraphs (f) and (g)
    Consistent with other proposals made in this filing, the Exchange
proposes modifying paragraphs (f) and (g) to eliminate the ability of
an Exchange official to deviate from the Numerical Guidelines contained
in the Rule other than under very limited circumstances set forth in
paragraph (f).
    Current paragraph (f) provides an officer of the Exchange or other
senior level employee designee the ability on his or her own motion, to
review and rule on executions that result from ``any disruption or a
malfunction in the use or operation of any electronic communications
and trading facilities of the Exchange, or extraordinary market
conditions or other circumstances in which the nullification of
transactions may be necessary for the maintenance of a fair and orderly
market or the protection of investors and the public interest exist.''
Without modification, the language ``extraordinary market conditions or
other circumstances * * *'' would leave the Exchange with broad
discretion to deviate from the Numerical Guidelines set forth in
paragraph (c)(1). Thus, the Exchange proposes narrowing the scope of
paragraph (f) so that it only permits the Exchange to nullify
transactions consistent with that paragraph (including at a lower
Numerical Guideline) if there is a disruption or malfunction in the
operation of the Exchange's system. For the same reason, the Exchange
proposes eliminating the words ``use or'' from the language in
paragraph (f) to make clear that the provision only applies to a
disruption or malfunction of the Exchange's system (and not of an
Exchange user's systems).
    Paragraph (g) gives an officer of the Exchange or other senior
level employee designee the ability on his or her own motion to review
transactions as potentially clearly erroneous. Consistent with the goal
of achieving more objective and standard results, the Exchange proposes
deleting language in existing paragraph (g) that would allow the
Exchange to deviate from the Numerical Guidelines contained in
paragraph (c)(1). In addition, the Exchange proposes to make clear that
any Officer of the Exchange or other senior level employee reviewing
transactions on his or her own motion must follow the guidelines set
forth in proposed paragraph (c)(4), if applicable. Accordingly, the
Exchange proposes to modify paragraph (g) to state that an officer must
rely on paragraphs (c)(1)-(4) of Rule 7.10 when reviewing transactions
on his or her own motion.
Additional Conforming Revisions to Paragraphs (c)(1) and (c)(3)
    Based on proposed paragraph (c)(2), the Exchange has proposed
certain conforming changes to paragraphs (c)(1) and (c)(3) of the
existing Rule, as described below.
    Under current NYSE Arca Equities Rule 7.10, a transaction may be
found to be clearly erroneous only if the price of the transaction to
buy (sell) that is the subject of the complaint is greater than (less
than) the Reference Price by an amount that equals or exceeds the
Numerical Guidelines set forth in paragraph (c)(1) of the Rule. The
``Reference Price'' is currently defined as ``the consolidated last
sale immediately prior to the execution(s) under review except for in
Unusual Circumstances as described in paragraph (c)(2)'' of NYSE Arca
Equities Rule 7.10. The Exchange proposes modifying paragraph (c)(1)
consistent with the changes described above such that the Exchange
shall use the consolidated last sale immediately prior to the
execution(s) under review as the Reference Price except for: (A) Multi-
Stock Events involving twenty or more securities, as described in
proposed paragraph (c)(2); (B) transactions not involving a Multi-Stock

Event as described in proposed paragraph (c)(2) that trigger a trading
pause and subsequent transactions, as described in proposed paragraph
(c)(4), in which case the Reference Price shall be determined in
accordance with that paragraph (c)(4); and (C) in other circumstances,
such as, for example, relevant news impacting a security or securities,
periods of extreme market volatility, sustained illiquidity, or
widespread system issues, where use of a different Reference Price is
necessary for the maintenance of a fair and orderly market and the
protection of investors and the public interest. The Exchange also
proposes modifying paragraph (c)(1) to reduce uncertainty as to the
applicability of the Numerical Guidelines, by requiring a finding that
an execution was clearly erroneous if such execution exceeds the
Numerical Guidelines, subject to the Additional Factors included in
paragraph (c)(3). Finally, the Exchange proposes revising the existing
description for Multi-Stock Events that is contained on the Numerical
Guidelines chart to make clear that different Numerical Guidelines
apply for Multi-Stock Events involving five or more, but fewer than
twenty, securities whose executions occurred within a period of five
minutes or less. In addition, the Exchange proposes adding to the
Numerical Guidelines chart a row that contains the Numerical Guidelines
(30%) for Multi-Stock Events involving twenty or more securities whose
executions occurred within a period of five minutes or less.
    In addition, the Exchange proposes clarifying paragraph (c)(3) to
make clear that the additional factors set forth in that paragraph are
not intended to provide any discretion to an Exchange official to
deviate from the guidelines that apply to Multi-Stock Events or to
transactions in securities subject to individual security trading
pauses.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\6\ which requires
the rules of an exchange 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 proposed rule change also is
designed to support the principles of Section 11A(a)(1) \7\ of the Act
in that it seeks to assure fair competition among brokers and dealers
and among exchange markets. The Exchange believes that the proposed
rule meets these requirements in that it promotes transparency and
uniformity across markets concerning reviews of potentially clearly
erroneous executions in various contexts, including reviews in the
context of a Multi-Stock Event involving twenty or more securities and
reviews resulting from a Trigger Trade and any executions occurring
immediately after a Trigger Trade but before a trading pause is in
effect on the Exchange. Further, the Exchange believes that the
proposed changes enhance the objectivity of decisions made by the
Exchange with respect to clearly erroneous executions.
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    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File No. SR-NYSEArca-2010-58 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-NYSEArca-2010-58. 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSEArca-2010-58 and should be
submitted on or before July 20, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15747 Filed 6-28-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register: November 2, 2006 (Volume 71, Number 212)]
[Notices]
[Page 64523-64524]
[DOCID:fr02no06-39]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPPT-2003-0004;FRL-8101-6]

Access to Confidential Business Information by ASRC Management
Services, Incorporated

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA has authorized ASRC Management Services, Incorporated
access to information which has been submitted to EPA under all
sections of the Toxic Substances Control Act (TSCA). Some of the
information may be claimed or determined to be Confidential Business
Information (CBI).

DATES: Access to the confidential data will occur no sooner than
November 9, 2006.

FOR FURTHER INFORMATION CONTACT: For generalinformation contact: Colby
Lintner, Regulatory Coordinator, Environmental Assistance Division
(7408M), Office of Pollution Prevention and Toxics, Environmental
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460;
telephone number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
    For technical information contact: Scott M. Sherlock, TSCA Security
Staff, Environmental Assistance Division (7408M), Office of Pollution
Prevention and Toxics, Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington, DC 20460; telephone number: (202)
564-8257; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Notice Apply to Me?

    This action is directed to the public in general. This action may,
however, be of interest to those persons who are or may be required to
conduct testing of chemical substances under TSCA. Since other entities
may also be interested, the Agency has not attempted to describe all
the specific entities that may be affected by this action. If you have
any questions regarding the applicability of this action to a
particular entity, consult the technical person listed under FOR
FURTHER INFORMATION CONTACT.

B. How Can I Get Copies of this Document and Other Related Documents?

    1. Docket. EPA has established an official public docket for this
action under docket identification (ID) number EPA-HQ-OPPT-2003-0004.
The official public docket consists of the documents specifically
referenced in this action, any public comments received, and other
information related to this action. Although a part of the official
docket, the public docket does not include CBI or other information
whose disclosure is restricted by statute. The official public docket
is the collection of materials that is available for public viewing at
the EPA Docket Center, EPA West, Infoterra Room, Room 3334,1301
Constitution Ave., NW., Washington, DC. The EPA Docket Center is open
from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal
holidays. The EPA Docket Center Reading Room telephone number is (202)
566-1744, and the telephone number for the OPPT Docket, which is
located in the EPA Docket Center, is<PHONE_NUMBER>.
    2. Electronic access. You may access this Federal Register document
electronically through the EPA Internet under the ``Federal Register''
listings athttp://www.epa.gov/fedrgstr/.

II. What Action is the Agency Taking?

    Under Contract Number EP-W-05-052, ASRC of 6303 Ivy Lane, Suite
300, Greenbelt, MD, will assist EPA in managing the Non-confidential
Information Center (NCIC). ASRC will provide current and historical
reports on all TSCA non-CBI submissions received in compliance with
TSCA; organize, distribute and prepare records for permanent storage;
and handle all docket-related records for OPPT, in accordance with the
TSCA Security Manual.
    In accordance with 40 CFR 2.306(j), EPA has determined that under
Contract Number EP-W-05-052, ASRC will require access to CBI submitted
to EPA under all sections of TSCA, to perform successfully the duties
specified under this contract.

    ASRC personnel will be given information submitted to EPA under all
sections of TSCA. Some of the information may be claimed or determined
to be CBI.
    EPA is issuing this notice to inform all submitters of information
under all sections of TSCA that the Agency will be providing ASRC
access to these CBI materials on a need-to-know basis only. All access
to TSCA CBI under this arrangement will take place at EPA Headquarters.
    Clearance for access to TSCA CBI under this arrangement may
continue until October 18, 2010, unless the underlying contract
performance period is extended.
    ASRC personnel will be required to sign non-disclosure agreements
and be briefed on appropriate security procedures before they are
permitted access to the CBI.

List of Subjects

    Environmental protection, Confidential business information.

    Dated: October 26, 2006.
Brion Cook,
Director, Office of Pollution Prevention and Toxics

[FR Doc. E6-18490 Filed 11-1-06; 8:45 am]

BILLING CODE 6560-50-S


[Federal Register Volume 82, Number 66 (Friday, April 7, 2017)]
[Proposed Rules]
[Pages 16952-16953]
[FR Doc No: 2017-06748]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2017-0032; Airspace Docket No. 17-AEA-1]

Proposed Amendment of Class D Airspace and Revocation of Class E
Airspace; Fort Eustis, VA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to remove Class E airspace designated as
an extension at Fort Eustis, VA, as the Felker Non-Directional Beacon
(NDB) has been decommissioned, and the approaches cancelled at Felker
Army Airfield, (AAF). This action also would update the geographic
coordinates of the airport under Class D airspace.

DATES: Comments must be received on or before May 22, 2017.

ADDRESSES: Send comments on this proposal to: U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE., West
Bldg. Ground Floor, Rm. W12-140, Washington, DC 20590; Telephone: 1-
800-647-5527, or<PHONE_NUMBER>. You must identify the Docket No. FAA-
2017-0032; Airspace Docket No. 17-AEA-1, at the beginning of your
comments. You may also submit and review received comments through the
Internet at http://www.regulations.gov. You may review the public
docket containing the proposal, any comments received, and any final
disposition in person in the Dockets Office between 9:00 a.m. and 5:00
p.m., Monday through Friday, except Federal holidays.
    FAA Order 7400.11A, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed on line at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone:<PHONE_NUMBER>.
The Order is also available for inspection at the National Archives and
Records Administration (NARA). For information on the availability of
FAA Order 7400.11A at NARA, call<PHONE_NUMBER>, or go to http://www.archives.gov/federal_register/code_of_federal-regulations/ibr_locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, P.O.
Box 20636, Atlanta, Georgia 30320; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would remove Class E airspace, and amend Class D at Felker AAF,
Fort Eustis, VA.

Comments Invited

    Interested persons are invited to comment on this rule by
submitting such written data, views, or arguments, as they may desire.
Comments that provide the factual basis supporting the views and
suggestions presented are particularly helpful in developing reasoned
regulatory decisions on the proposal. Comments are specifically invited
on the overall regulatory, aeronautical, economic, environmental, and
energy-related aspects of the proposal.
    Communications should identify both docket numbers and be submitted
in triplicate to the address listed above. You may also submit comments
through the Internet at http://www.regulations.gov.
    Persons wishing the FAA to acknowledge receipt of their comments on
this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to Docket
No. FAA-2017-0032; Airspace Docket No. 17-AEA-1.'' The postcard will be
date/time stamped and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded from and
comments submitted through http://www.regulations.gov. Recently
published rulemaking documents can also be accessed through the FAA's
Web page at http://www.regulations.gov.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal
holidays. An informal docket may also be examined between 8:00 a.m. and
4:30 p.m., Monday through Friday, except Federal Holidays at the office
of the Eastern Service Center, Federal Aviation Administration, Room
350, 1701 Columbia Avenue, College Park, Georgia 30337.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11A, Airspace
Designations and Reporting Points, dated August 3, 2016, and effective
September 15, 2016. FAA Order 7400.11A is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11A lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is considering an amendment to Title 14, Code of Federal
Regulations (14 CFR) part 71 to remove Class E airspace designated as
an extension to a class D surface area at Felker Army Airfield, Fort
Eustis, VA, due to the decommissioning of the Felker NDB and
cancellation of the NDB approach, and for continued safety and
management of IFR operations at the airport. The geographic coordinates
of the airport would be adjusted under Class D to coincide with the
FAAs aeronautical database.
    Class D and E airspace designations are published in Paragraphs
5000 and 6004, respectively, of FAA Order 7400.11A, dated August 3,
2016, and effective September 15, 2016, which is incorporated by
reference in 14 CFR 71.1. The Class D airspace designation listed in
this document will be published subsequently in the Order.

Regulatory Notices and Analyses

    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this proposed rule, when promulgated, will not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal would be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

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

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

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

Sec.  71.1  [Amended]

0
 2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.11A, Airspace Designations and Reporting
Points, dated August 3, 2016, effective September 15, 2016, is amended
as follows:

Paragraph 5000 Class D Airspace.

* * * * *

AEA VA D Fort Eustis, VA [Amended]

Felker Army Airfield, Fort Eustis, VA
    (Lat. 37[deg]07'57'' N., long. 76[deg]36'32'' W.)

    That airspace extending upward from the surface to and including
2,500 feet MSL within a 4.4-mile radius of Felker Army Airfield,
excluding the portion that coincides with the Newport News, VA,
Class D airspace area. This Class D airspace area is effective
during specific dates and times established in advance by a Notice
to Airmen. The effective dates and times will thereafter be
published continuously in the Chart Supplement, (formerly the
Airport/Facility Directory).

Paragraph 6004 Class E Airspace Designated as an Extension to a
Class D Surface Area.

* * * * *

AEA VA E4 Fort Eustis, VA [Removed]

    Issued in College Park, Georgia, on March 27, 2017.
Joey L. Medders,
Acting Manager, Operations Support Group, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2017-06748 Filed 4-6-17; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 221 (Friday, November 17, 2017)]
[Notices]
[Pages 54460-54463]
[FR Doc No: 2017-24931]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82059; File No. SR-BX-2017-051]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Options Pricing at Chapter XV, Section 2

November 13, 2017.
    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 November

1, 2017, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend the Options Pricing at Chapter XV,
Section 2, entitled ``BX Options Market--Fees and Rebates,'' which
governs pricing for BX members using the BX Options Market (``BX
Options''). The Exchange proposes to modify certain fees for
transactions in options overlying Select Symbols,\3\ as further
discussed below.
---------------------------------------------------------------------------

    \3\ The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA,
EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG,
IWM, IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO,
TBT, TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB,
XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT. See Chapter
XV, Section 2(1).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqbx.cchwallstreet.com/, at the principal office
of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Chapter XV, Section 2(1), which
includes pricing for transactions in Select Symbol options, to increase
the Firm \4\ fee to add liquidity and fee to remove liquidity in Select
Symbols. Select Symbols represent some of the highest volume Penny
Pilot options traded on the Exchange and in the industry. The fees and
rebates applicable to Select Symbol options in Chapter XV, Section 2(1)
are designed to attract more order flow to BX Options, particularly in
these high volume symbols, and apply to Customers,\5\ BX Options Market
Makers,\6\ Non-Customers \7\ and Firms as follows:
---------------------------------------------------------------------------

    \4\ The term ``Firm'' or (``F'') applies to any transaction that
is identified by a Participant for clearing in the Firm range at
OCC. See Chapter XV.
    \5\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at OCC which is not for the account of broker or dealer or for
the account of a ``Professional'' (as that term is defined in
Chapter I, Section 1(a)(48)). See Chapter XV.
    \6\ The term ``BX Options Market Maker'' or (``M'') is a
Participant that has registered as a Market Maker on BX Options
pursuant to Chapter VII, Section 2, and must also remain in good
standing pursuant to Chapter VII, Section 4. In order to receive
Market Maker pricing in all securities, the Participant must be
registered as a BX Options Market Maker in at least one security.
See Chapter XV.
    \7\ As set forth in note 1 to Chapter XV, Section 2(1), a Non-
Customer includes a Professional, Broker-Dealer and Non-BX Options
Market Maker.
---------------------------------------------------------------------------

    (1) Fees for Execution of Contracts on the BX Options Market:
* * * * *

                                                          Select Symbols Options Tier Schedule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Rebate to add      Fee to add       Rebate to      Fee to remove      Fee to add
--------------------------------------------------------------------    liquidity        liquidity          remove         liquidity        liquidity
                                               When:                ----------------------------------    liquidity    ---------------------------------
--------------------------------------------------------------------     Customer        BX options   -----------------    BX options       BX options
                                                                    -----------------   market maker       Customer       market maker     market maker
                                                                                -------------------------------------------------------------------
                                                                     Non-customer or                   Non-customer or                   Non-customer or
                                           Trading with:                BX options                        BX options                        BX options
                                                                      market maker,       Customer      market maker,       Customer      market maker,
                                                                         or firm                           or firm                           or firm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tier 1........................  Participant executes less than                 $0.00            $0.44            $0.00            $0.42            $0.14
                                 0.05% of total industry customer
                                 equity and ETF option ADV
                                 contracts per month.
Tier 2........................  Participant executes 0.05% to less              0.10             0.44             0.25             0.42             0.10
                                 than 0.15% of total industry
                                 customer equity and ETF option ADV
                                 contracts per month.
Tier 3........................  Participant executes 0.15% or more              0.20             0.40             0.37             0.39             0.04
                                 of total industry customer equity
                                 and ETF option ADV contracts per
                                 month.
Tier 4........................  Participant executes greater than               0.25             0.29             0.37             0.25             0.00
                                 10,000 PRISM Agency Contracts per
                                 month; or Participant executes BX
                                 Options Market Maker volume of
                                 0.30% or more of total industry
                                 customer equity and ETF options
                                 ADV per month.
--------------------------------------------------------------------------------------------------------------------------------------------------------

BX Options Select Symbol List

    The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, EWJ,
EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR,
KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, TLT, TNA,
TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, XLI, XLK,
XLP, XLU, XLV, XLY, XME, XOP, XRT.
     Firm fee to add liquidity and fee to remove liquidity in
Select Symbols Options will be $0.33 per contract, regardless of
counterparty.
     Non-Customer fee to add liquidity and fee to remove
liquidity in Select Symbols Options will be $0.46 per contract,
regardless of counterparty.
     BX Options Market Maker fee to remove liquidity in Select
Symbols Options will be $0.46 per contract when trading with Firm, Non-
Customer, or BX Options Market Maker.
     Customer fee to add liquidity in Select Symbols Options
when contra to another Customer is $0.33 per contract.
     Volume from all products listed on BX Options will apply
to the Select Symbols Options Tiers.
* * * * *
    The Exchange proposes to increase the $0.33 per contract Firm fee
to add liquidity and fee to remove liquidity in Select Symbols to raise
revenue for the Exchange and help defray costs. As proposed, the Firm
fee to add liquidity and fee to remove liquidity in Select Symbols will
be $0.37 per contract, regardless of counterparty. The pricing for all
other transactions in Select Symbol options as set forth above will
remain unchanged.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to increase the Firm fee to
add liquidity and fee to remove liquidity in Select Symbols, as
discussed above, is reasonable because the proposed change is a modest
increase to help defray costs and remains lower than the Firm fee to
add liquidity and fee to remove liquidity in all other Penny Pilot
options that are not options in Select Symbols.\10\ As discussed above,
the pricing for all other transactions in Select Symbol options will
remain unchanged. Furthermore, the Exchange notes that the proposed
Firm fees for Select Symbols remain competitive with the fees of other
options markets.\11\ Accordingly, the Exchange believes that despite
the proposed increase in Firm fees as described above, the pricing
model in Chapter XV, Section 2(1) for Select Symbols will continue to
attract order flow to BX Options, particularly in these high volume
symbols, to the benefit of all market participants.
---------------------------------------------------------------------------

    \10\ The Exchange currently charges a $0.45 per contract Firm
fee to add liquidity and a $0.46 per contract Firm fee to remove
liquidity in all other Penny Pilot options that are not in Select
Symbol options. See Chapter XV, Section 2(1).
    \11\ See, e.g., MIAX Options Fee Schedule at: https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_10112017.pdf. See also, e.g., Nasdaq PHLX
LLC Pricing Schedule at: http://nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools/PlatformViewer.asp?selectednode=chp_1_4_1&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed increase of the Firm
fee to add liquidity and fee to remove liquidity in Select Symbols is
equitable and not unfairly discriminatory because the Exchange will
apply the same fee to all similarly situated members. For the reasons
discussed above, the proposed fee continues to provide an incentive for
Firms to transact order flow on the Exchange, which order flow brings
increased liquidity to the Exchange for the benefit of all Exchange
participants. To the extent the purpose of the proposed Firm fee is
achieved, all market participants should benefit from the improved
market liquidity.

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. As discussed above, the
Exchange believes that the proposed Firm fees for Select Symbol options
remain competitive with those on other options markets and will
continue to attract order flow to the Exchange. The Exchange notes that
it operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually review, and consider adjusting, its fees and rebates
to remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed fee changes reflect this
competitive environment.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\12\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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-BX-2017-051 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-BX-2017-051. 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. 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-BX-
2017-051, and should be submitted on or before December 8, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

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

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24931 Filed 11-16-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 51 (Wednesday, March 16, 2022)]
[Notices]
[Pages 14931-14932]
[FR Doc No: 2022-05541]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-774, OMB Control No. 3235-0727]

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.

Extension:
    Rules 400-404 of Regulation Crowdfunding (Intermediaries)

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information provided for Rule 17Ab2-1 (17 CFR 240.17Ab2-1) and Form CA-
1: Registration of Clearing Agencies (17 CFR 249b.200) under the
Securities Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a et
seq.). The Commission plans to submit this existing collection of
information to the Office of Management and Budget (``OMB'') for
extension and approval.
    The collections of information required under Rules 400 through 404
is mandatory for all funding portals. Form Funding Portal helps ensure
that the Commission can make information about funding portals
transparent and easily accessible to the investing public, including
issuers and obligated persons who engage funding portals; investors who
may purchase securities through offerings on funding portals; and other
regulators. Further, the information provided on Form Funding Portal
expands the amount of publicly available information about funding
portals, including disciplinary history. Consequently, the rules and
forms allows issuers and the investing public, as well as others, to
become more fully informed about funding portals in a more efficient
manner.
    Rule 400 requires each person applying for registration with the
Commission as a funding portal to file electronically with the
Commission Form Funding Portal. Rule 400(a) requires a funding portal
to become a member of a national securities association registered
under Section 15A of the Exchange Act. Rule 400(b) requires a funding
portal to file an amendment to Form Funding Portal if any information
previously submitted on Form Funding Portal becomes inaccurate for any
reason. Rule 400(c) provides that a funding portal can succeed to the
business of a predecessor funding portal upon the successor filing a
registration on Form Funding Portal and the predecessor filing a
withdrawal on Form Funding Portal.
    Rule 400(d) requires a funding portal to promptly file a withdrawal
of registration on Form Funding Portal upon ceasing to operate as a
funding portal. Rule 400(e) states that duplicate originals of the
applications and reports provided for in this section must be filed
with surveillance personnel designated by any registered national
securities association of which the funding portal is a member. Rule
400(f) requires a nonresident funding portal to: (1) Obtain a written
consent and power of attorney appointing an agent for service of
process in the United States; (2) furnish the Commission with the name
and address of its agent for services of process on Schedule C of Form
Funding Portal; (3) certify that it can, as a matter of law, and will
provide the Commission and any registered national securities
association of which it becomes a member with prompt access to its
books and records and can, as a matter of law, and will submit to
onsite inspection and examination by the Commission and any registered
national securities association of which it becomes a member; and (4)
provide the Commission with an opinion of counsel and certify on
Schedule C on Form Funding Portal that the firm can, as a matter of
law, provide the Commission and registered national securities
association of which it becomes a member with prompt access to its
books and records and can, as a matter of law, submit to onsite
inspection and examination by the Commission and any registered
national securities association of which it becomes a member.\1\
---------------------------------------------------------------------------

    \1\ Exchange Act Section 3(h)(1)(C) permits us to impose, as
part of our authority to exempt funding portals from broker
registration, ``such other requirements under [the Exchange Act] as
the Commission determines appropriate.''

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

    Rule 403(a) requires a funding portal to implement written policies
and procedures reasonably designed to achieve compliance with the
federal securities laws and the rules and regulations thereunder
relating to its business as a funding portal. Rule 403(b) provides that
a funding portal must comply with privacy rules. Rule 404 requires all
registered funding portals to maintain certain books and records
relating to their funding portal activities, for not less than five
years, the first two in an easily accessible place. Rule 404(e)
requires funding portals to furnish promptly to the Commission, its
representatives, and the registered national securities association of
which the funding portal is a member true, correct, complete and
current copies of such records of the funding portal that are requested
by the representatives of the Commission and the registered national
securities association.
    The Commission staff estimates that annualized industry burden
would be 36,775 hours to comply with Rules 400-404. The Commission
staff estimates that the costs associated with complying with Rules
400-404 are estimated to be approximately a total amount of $671,793.
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing by May 16, 2022.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to:
[email protected].

    Dated: March 11, 2022.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2022-05541 Filed 3-15-22; 8:45 am]
BILLING CODE 8011-01-P