[Federal Register: June 17, 2010 (Volume 75, Number 116)]
[Notices]
[Page 34495-34496]
[DOCID:fr17jn10-119]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62273; File No. SR-NYSEAmex-2010-55]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex
Rule 953NY To Provide That the Exchange Will Halt Trading When an
Underlying Security Is the Subject of a Trading Pause

June 10, 2010.
    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 June 10, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'')
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 self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Amex Rule 953NY to provide that
the Exchange will halt trading when an underlying security is the
subject of a trading pause. The text of the proposed rule change is
available at the Exchange, the Commission's Public Reference Room, on
the Commission's Web site at http://www.sec.gov, and at http://
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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 953NY governing Trading Halts
and Suspensions to add a new subsection to the rule that would provide
that the Exchange shall halt trading in any options contract when the
underlying security has been paused by the primary market.
    The Exchange proposes this rule to provide for how the Exchange
will respond when trading in any underlying security has paused, as set
forth in the stock-by-stock circuit breakers proposed by the equities
markets to respond to extraordinary market volatility in individual
securities.\3\ The Exchange believes that when trading has paused on
the equities markets pursuant to these proposed rules, trading should
also be halted in the options markets.
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    \3\ See Securities Exchange Act Release Notice Nos. 62121 (May
19, 2010), 75 FR 28834 (May 24, 2010) (SR-BATS-2010-14); 62122 (May
19, 2010), 75 FR 28833 (May 24, 2010) (SR-EDGA-2010-1); 62123 (May
19, 2010), 75 FR 28844 (May 24, 2010) (SR-EDGX-2010-1); 62124 (May
19, 2010), 75 FR 28828 (May 24, 2010) (SR-BX-2010-37); 62125 (May
19, 2010), 75 FR 28836 (May 24, 2010) (SR-ISE-2010-48); 62126 (May
19, 2010), 75 FR 28831 (May 24, 2010) (SR-NYSE-2010-39); 62127 (May
19, 2010), 75 FR 28837 (May 24, 2010) (SR-NYSEAmex-2010-46); 62128
(May 19, 2010), 75 FR 28830 (May 24, 2010) (SR-NYSEArca-2010-41);
62129 (May 19, 2010), 75 FR 28839 (May 24, 2010) (SR-Nasdaq-2010-
061); 62130 (May 19, 2010), 75 FR 28842 (May 24, 2010) (SR-CHX-2010-
10); 62131 (May 19, 2010), 75 FR 28845 (May 24, 2010) (SR-NSX-2010-
05); 62132 (May 19, 2010), 75 FR 28847 (May 24, 2010) (SR-CBOE-2010-
47); 62133 (May 19, 2010), 75 FR 28841 (May 19, 2010), 75 FR 28841
(May 24, 2010) (SR-FINRA-2010-25).
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    Accordingly, the Exchange proposes to add a new subsection to Rule
953NY to provide that trading on the Exchange in any option contract
shall be halted whenever trading in the underlying security has been
paused by the primary market. The Exchange proposes that trading in
such options contracts may be resumed upon a determination by the
Exchange that the conditions that led to the pause are no longer
present and that the interests of a fair and orderly market are best
served by a resumption of trading. However, under no circumstances
would trading resume before the Exchange has received notification that
the underlying security has resumed trading.
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''),\4\ 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)\5\ 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 a fair and orderly
market so that when trading is paused in the equities markets, options
contracts related to that security are also paused.
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    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 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

    Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not become
operative for 30 days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file the proposed rule change at least five business days prior to the
date of filing of the proposed rule change or such shorter time as
designated by the Commission, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act\6\ and Rule 19b-
4(f)(6) thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). The Commission notes that the
Exchange has met this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing.\8\ However,
Rule 19b-

4(f)(6)(iii) permits the Commission to designate a shorter time if such
action is consistent with the protection of investors and the public
interest. The Exchange requested that the Commission waive the 30-day
operative delay, as specified in Rule 19b-4(f)(6)(iii),\9\ which would
make the rule change effective and operative upon filing. The
Commission approved filings from the exchanges and the Financial
Industry Regulatory Authority to institute a single stock trading pause
for equity securities that experience a 10% change in price during a
five minute period.\10\ The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because it will allow NYSE Amex to halt trading for
individual equity options at the same time that the primary listing
market implements the pilot for eligible underlying stocks.\11\
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ See Securities Exchange Act Release Nos. 62251 and 62252
(June 10, 2010).
    \11\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-NYSEAmex-2010-55 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEAmex-2010-55. 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
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2010-55 and should be submitted on or before July 8, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14607 Filed 6-16-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register: March 18, 2008 (Volume 73, Number 53)]
[Notices]
[Page 14515-14516]
[DOCID:fr18mr08-126]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57472; File No. SR-CBOE-2008-24]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change, as Modified by Amendment No. 1 Thereto, Regarding the CBOE
Stock Exchange Market Data Infrastructure Fee

March 11, 2008.
    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 March 7, 2008, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been substantially
prepared by the Exchange. On March 11, 2008, the Exchange filed
Amendment No. 1 to the proposed rule change. The Exchange has
designated this proposal as one establishing a due, fee, or other
charge imposed by the Exchange under Section 19(b)(3)(A) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders it 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)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the CBOE Stock Exchange (``CBSX'')
market data infrastructure fee. The text of the proposed rule change is
available on the Exchange's Web site (http://www.cboe.org/legal), at
the Exchange's principal office, 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 charges CBSX market participants a monthly fee to
recoup the fees CBSX pays a third-party market data vendor and other
parties to help establish facilities at CBSX through which the third-
party market data vendor can provide CBSX participants with certain
market data.\5\ Currently, the amount of the fee is equal to $19,400
divided by the number of CBSX participants receiving the market data.
Recently, the Exchange's costs to provide this infrastructure have
increased. To help compensate CBSX for its increased costs in providing
this infrastructure, the Exchange proposes to increase the fee to
$20,400 divided by the number of CBSX participants receiving the market
data.
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    \5\ See Securities Exchange Act Release No. 55882 (June 8,
2007), 72 FR 32931 (June 14, 2007) (SR-CBOE-2007-54); and Securities
Exchange Act Release No. 56231 (August 9, 2007), 72 FR 46118 (August
16, 2007) (SR-CBOE-2007-73).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \7\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members. The Exchange believes the
proposed fee will help allocate to each CBSX market participant
receiving market data through this infrastructure a fair share of
CBSX's costs for providing this infrastructure.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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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

    Because the foregoing proposed rule change establishes or changes a
due, fee, or other charge imposed by the Exchange, it has become
effective upon filing pursuant to Section 19(b)(3)(A) of the Act \8\
and Rule 19b-4(f)(2) thereunder.\9\ At any time within 60 days of the
filing of the 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.\10\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 19b-4(f)(2).
    \10\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on March 11, 2008, the date on which the Exchange filed
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File No. SR-CBOE-2008-24 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-CBOE-2008-24. 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 Commissions 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 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 Number SR-CBOE-2008-24 and should be submitted on
or before April 8, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-5354 Filed 3-17-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 139 (Tuesday, July 21, 2015)]
[Notices]
[Pages 43151-43156]
[FR Doc No: 2015-17754]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75455; File No. SR-Phlx-2015-61]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Customer Rebate Program, Multiply Listed Options, and Singly-Listed
Options

July 15, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 1, 2015, NASDAQ OMX PHLX LLC (``Phlx'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to modify the Phlx Pricing Schedule
(``Pricing Schedule''). Specifically, the Exchange proposes to amend
pricing in Section B, entitled ``Customer Rebate Program,'' \3\ Section
II, entitled ``Multiply Listed Options Fees,'' \4\ and Section III,
entitled ``Singly Listed Options,'' \5\ of the Pricing Schedule. The
Exchange proposes these amendments in order to: (i) Increase the
rebates specifically for Tier 4 and Tier 5 (Category B) electronic
Complex \6\ and Complex PIXL \7\ Orders \8\; (ii) increase the
assessment of Multiply Listed Options fees for non-Penny Pilot \9\
Options for electronic Professional,\10\ Broker-Dealer,\11\ and Firm
\12\ orders; (iii) delete Customer Rebate Tier 2 and Tier 3 from notes
13 [sic] and 14 dealing with Common Ownership; \13\ and (iv) increase
the assessment of Singly-Listed FX options \14\ fees for Professional,
Broker-Dealer, and Firm orders.
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    \3\ The term ``Customer'' applies to any transaction that is
identified by a member or member organization for clearing in the
Customer range at The Options Clearing Corporation (``OCC'') which
is not for the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Rule 1000(b)(14).
    \4\ This includes options overlying equities, exchange traded
funds (``ETFs''), exchange traded notes (``ETNs'') and indexes which
are Multiply Listed.
    \5\ This includes options overlying foreign exchange (``FX''),
equities, ETFs, ETNs, and indexes not listed on another exchange.
    \6\ A Complex Order is any order involving the simultaneous
purchase and/or sale of two or more different options series in the
same underlying security, priced at a net debit or credit based on
the relative prices of the individual components, for the same
account, for the purpose of executing a particular investment
strategy. Furthermore, a Complex Order can also be a stock-option
order, which is an order to buy or sell a stated number of units of
an underlying stock or ETF coupled with the purchase or sale of
options contract(s). See Exchange Rule 1080, Commentary .07(a)(i).
    \7\ PIXL\SM\ is the Exchange's price improvement mechanism known
as Price Improvement XL or PIXL. See Rule 1080(n).
    \8\ A transaction resulting from an order that was
electronically delivered utilizes Phlx XL. See Exchange Rules 1014
and 1080. Electronically delivered orders do not include orders
transacted on the Exchange floor. A transaction resulting from an
order that is non-electronically-delivered is represented on the
trading floor by a floor broker. See Exchange Rule 1063. All orders
are either electronically or non-electronically delivered.
    \9\ The Penny Pilot was established in January 2007 and was last
extended in 2015. See Securities Exchange Act Release Nos. 55153
(January 23, 2007), 72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74)
(notice of filing and approval order establishing Penny Pilot); and
75286 (June 24, 2015) (SR-Phlx-2015-54) (notice of filing and
immediate effectiveness extending the Penny Pilot through June 30,
2016). Non-Penny Pilot Options are options other than Penny Pilot
Options listed on the Exchange (e.g. AAPL, BAC, EEM, FB, FXI, IWM,
QQQ, TWTR, VXX and XLF), which can be found at http://www.nasdaqtrader.com/Micro.aspx?id=phlx.
    \10\ The term ``Professional'' means any person or entity that
(i) is not a broker or dealer in securities, and (ii) places more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Rule
1000(b)(14).
    \11\ The term ``Broker-Dealer'' applies to any transaction which
is not subject to any of the other transaction fees applicable
within a particular category.
    \12\ The term ``Firm'' applies to any transaction that is
identified by a member or member organization for clearing in the
Firm range at The Options Clearing Corporation.
    \13\ The term ``Common Ownership'' means members or member
organizations under 75% common ownership or control.
    \14\ FX options include XDB, XDE, XDN, XDS, XDA, XDM, XEH, XEV,
XDZ, XDC, and XDV.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.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 purpose of this filing is to modify the Pricing Schedule to
specifically amend fees in Section B, entitled ``Customer Rebate
Program,'' Section II, entitled ``Multiply Listed Options Fees,'' and
Section III, entitled ``Singly Listed Options.'' The Exchange proposes
these amendments in order to: (i) Increase the rebates specifically for
Tier 4 and Tier 5 (Category B) electronic Complex and Complex PIXL
Orders; (ii) increase the assessment of Multiply Listed Options fees
for non-Penny Pilot Options for electronic Professional, Broker-Dealer,
and Firm orders; (iii) delete Customer Rebate Tier 2 and Tier 3 from
notes 13 [sic] and 14 dealing with Common Ownership; and (iv) increase
the assessment of Singly-Listed FX options fees for Professional,
Broker-Dealer, and Firm orders.
Section B--Customer Rebate Program
    Currently, the Exchange has a Customer Rebate Program consisting of
five tiers that pays Customer Rebates on two categories, A and B, of
transactions. A Phlx member qualifies for a certain rebate tier based
on the percentage of total national customer volume in Multiply Listed
equity and ETFs options classes, excluding SPY \15\ options that it
transacts monthly on Phlx. The Exchange calculates Customer volume in
Multiply Listed Options (including SPY options) by totaling
electronically-delivered and executed volume, excluding volume
associated with electronic Qualified Contingent Cross (``QCC'')
Orders,\16\ as defined in Exchange Rule 1080(o).\17\ The Exchange
proposes, as discussed below, to increase the Tier 4 and Tier 5 Complex
PIXL Orders (Category B) rebates.
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    \15\ SPY is the SPDR[supreg] S&P 500[supreg] ETF Trust.
S&P[supreg], S&P 500[supreg], SPDR[supreg], and Standard &
Poor's[supreg] are registered trademarks of Standard &
Poor's[supreg] Financial Services LLC.
    \16\ A QCC Order is comprised of an order to buy or sell at
least 1000 contracts that is identified as being part of a qualified
contingent trade, as that term is defined in Rule 1080(o)(3),
coupled with a contra-side order to buy or sell an equal number of
contracts. The QCC Order must be executed at a price at or between
the National Best Bid and Offer and be rejected if a Customer order
is resting on the Exchange book at the same price. A QCC Order shall
only be submitted electronically from off the floor to the PHLX XL
II System. See Rule 1080(o). See also Securities Exchange Act
Release No. 64249 (April 7, 2011), 76 FR 20773 (April 13, 2011) (SR-
Phlx-2011-47) (a rule change to establish a QCC Order to facilitate
the execution of stock/option Qualified Contingent Trades (``QCTs'')
that satisfy the requirements of the trade through exemption in
connection with Rule 611(d) of the Regulation NMS).
    \17\ Members and member organizations under common ownership may
aggregate their Customer volume for purposes of calculating the
Customer Rebate Tiers and receiving rebates. Common ownership means
members or member organizations under 75% common ownership or
control.
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    Currently, a Category A rebate is paid to members executing
electronically-delivered Customer Simple Orders in Penny Pilot Options
and Customer Simple Orders in non-Penny Pilot Options in Section II
symbols. Rebates are paid on Customer PIXL Orders in Section II symbols
that execute against non-Initiating Order interest. In the instance
where member organizations qualify for Tier 4 or higher in the Customer
Rebate Program, Customer PIXL Orders that execute against a PIXL
Initiating Order are paid a rebate of $0.14 per contract. Rebates on
Customer PIXL Orders will be capped at 4,000 contracts per order for
Simple PIXL Orders.
    Currently, a Category B rebate is paid to members executing
electronically-delivered Customer Complex Orders in Penny Pilot Options
and non-Penny Pilot Options in Section II symbols. Rebates are paid on
Customer PIXL Complex Orders in Section II symbols that execute against
non-Initiating Order interest. Customer Complex PIXL Orders that
execute against a Complex PIXL Initiating Order will not be paid a
rebate under any circumstances. The Category B rebate will not be paid
when an electronically-delivered Customer Complex Order, including a
Customer Complex PIXL Order, executes against another electronically-
delivered Customer Complex Order. Rebates on Customer PIXL Orders are
capped at 4,000 contracts per order leg for Complex PIXL Orders.
Moreover, the Exchange will pay a $0.02 per contract Category A rebate
and a $0.03 per contract Category B rebate in addition to the
applicable Tier 2 and 3 rebate to a Specialist or Market Maker or its
member or member organization affiliate under Common Ownership provided
the Specialist or Market Maker has reached the Monthly Market Maker
Cap, as defined in Section II.
    Now, the rebates in all tiers (Category A and Category B) are as
follows:

----------------------------------------------------------------------------------------------------------------
                                                    Percentage thresholds of
                                                   national customer volume in
             Customer rebate tiers               multiply-listed equity and ETF     Category A      Category B
                                                 options classes, excluding spy
                                                        options (monthly)
----------------------------------------------------------------------------------------------------------------
Tier 1........................................  0.00%-0.60%.....................           $0.00           $0.00
Tier 2........................................  Above 0.60-1.10.................           *0.10           *0.17
Tier 3........................................  Above 1.10-1.60.................           *0.12           *0.17
Tier 4........................................  Above 1.60-2.50.................            0.16            0.20
Tier 5........................................  Above 2.50......................            0.17            0.20
----------------------------------------------------------------------------------------------------------------

    The Exchange proposes to change the Tier 4 Customer Rebate
(Category B) from $0.20 to $0.22. The Exchange also proposes to change
the Tier 5 Customer Rebate (Category B) from $0.20 to $0.22.\18\ The
Exchange believes that the proposed increased Category B rebates will
continue to encourage members to send Customer liquidity to Phlx
despite the cap on PIXL Complex Order rebates at the proposed 4,000
contracts per order leg. The Exchange believes that the proposed two
cent increase is reasonable. Moreover, the Exchange believes that the
resulting 5 cents difference between Category B Tiers 3 and 4 ($0.17
and $0.22) is reasonable and fair since, comparatively, the current
difference between Tiers 1 and 2 is 17 cents.
---------------------------------------------------------------------------

    \18\ This is similar to the Chicago Board Options Exchange
(``CBOE''). See CBOE's Fee Schedule.
---------------------------------------------------------------------------

Section II--Multiply Listed Options
    Currently, the Exchange charges Customers, Professionals,
Specialists and Market Makers, Broker-Dealers, and Firms Options
Transaction Fees for Multiply Listed Options (including options
overlying equities, ETFs, ETNs, and indexes which are Multiply Listed).
The fees are different for Penny Pilot Options and non-Penny Pilot
Options.

    Now, the Multiply-Listed Options fees, per contract, are as
follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Professional         Specialist and         Broker-dealer             Firm
------------------------------------------------------           ----------------------     market maker     -------------------------------------------
                                                        Customer                       ----------------------
                                                                   Electronic   Floor    Electronic   Floor    Electronic   Floor    Electronic   Floor
--------------------------------------------------------------------------------------------------------------------------------------------------------
Options Transaction Charge (Penny Pilot).............      $0.00   \13\ $0.48    $0.25        $0.22    $0.30   \13\ $0.48    $0.25    \12\ \13\    $0.25
                                                                                $0.48
Options Transaction Charge (non-Penny Pilot).........       0.00    \13\ \14\     0.25    \15\ 0.25     0.30    \13\ \14\     0.25    \12\ \13\     0.25
                                                                         0.70                                        0.70             \14\ 0.70
Options Surcharge in MNX and NDX.....................        N/A         0.20     0.20         0.20     0.20         0.20     0.20         0.20     0.20
Options Surcharge in BKX.............................        N/A         0.10     0.10         0.10     0.10         0.10     0.10         0.10     0.10
Cabinet Options......................................       0.00          N/A     0.10          N/A     0.10          N/A     0.10          N/A     0.10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Exchange offers a discount to Professional, Broker-Dealer, and
Firm for certain orders. Today, notes 13 and 14 apply to fees assessed
to a Professional, Broker-Dealer, and Firm for electronic orders in
certain non-Penny Pilot Options. Note 13 states that electronic Complex
Orders will be assessed $0.35 per contract. Note 14 states that any
member or member organization under Common Ownership with another
member or member organization that qualifies for Customer Rebate Tiers
2, 3, 4 or 5 in Section B of the Pricing Schedule will be assessed
$0.60 per contract. In addition, note 12 applies to fees assessed to a
Firm for electronic orders in certain non-Penny Pilot Options. Note 12
states that Firm electronic simple orders in AAPL, BAC, EEM, FB, FXI,
IWM, QQQ, TWTR, VXX, and XLF \19\ will be assessed $0.34.
---------------------------------------------------------------------------

    \19\ All are currently in the Penny Pilot.
---------------------------------------------------------------------------

    The Exchange proposes to amend the discounted amount that is
currently assessed to a Professional, Broker- Dealer, and Firm for
electronic orders in certain Multiply Listed non-Penny Pilot Options.
Whereas today the Exchange assesses a Professional, Broker-Dealer, and
Firm each a $0.70 per contract Options Transaction Charge for Non-Penny
Pilot Options, the Exchange proposes to increase this fee to $0.75.
Despite the increase in the fee, the Exchange believes that its fee
structure will continue to incentivize Professionals, Firms, and
Broker-Dealers to transact electronic non-Penny Pilot volume on the
Exchange.
    The Exchange offers a discount to Specialists and Market Makers for
certain orders. Today, note 15 applies to a Specialist or Market Maker
that transacts electronic orders in non-Penny Pilot Options. Note 15
states that any member or member organization under Common Ownership
with another member or member organization that qualifies for Customer
Rebate Tiers 2, 3, 4 or 5 in Section B of the Pricing Schedule will be
assessed $0.23 per contract. The Exchange is proposing to delete the
reference to Customer Rebate Tiers 2 and 3 in note 14 and note 15.
Thus, note 15 would continue to apply to Specialists and Market Makers
such that after the proposal, per note 15 any member or member
organization under Common Ownership with another member or member
organization that qualifies for Customer Rebate Tiers 4 or 5 in Section
B of the Pricing Schedule will be assessed $0.23 per contract.
    Today, note 14 applies to a Professional, Broker-Dealer, or Firm
that transacts electronic orders in non-Penny Pilot Options. Note 14
states that any member or member organization under Common Ownership
with another member or member organization that qualifies for Customer
Rebate Tiers 2, 3, 4 or 5 in Section B of the Pricing Schedule will be
assessed $0.60 per contract. The Exchange is proposing to delete the
reference in note 14 to Customer Rebate Tiers 2 and 3, just like in
note 15. Thus, note 14 would continue to apply to Professionals,
Broker-Dealers, and Firms such that after the proposal, per note 14 any
member or member organization under Common Ownership with another
member or member organization that qualifies for Customer Rebate Tiers
4 or 5 in Section B of the Pricing Schedule will be assessed $0.60 per
contract. The Exchange believes that the qualification for Customer
Rebate Tiers 2 or 3 is no longer necessary for the discount incentive
in notes 14 and 15, particularly where Professionals, Broker-Dealers,
Specialists and Market Makers, and Firms can choose to earn the
discount by qualifying for Customer Rebate Tiers 4 or 5 by bringing
liquidity to the Exchange.
    Despite the proposed deletion of the reference to Customer Rebate
Tiers 2 and 3 in notes 14 and 15, the Exchange believes that its fee
structure will continue to incentivize Professionals, Firms, Broker-
Dealers, and Specialists and Market Makers to transact electronic non-
Penny Pilot Option volume on the Exchange. The Exchange believes that
with the proposed deletion of the reference to Customer Rebate Tiers 2
and 3, the incentive remains to bring more order flow to the Exchange
to earn the discount.
Section III--Singly Listed Options
    Currently, fees for Singly Listed Options are located in Section
III of the Pricing Schedule. The Singly-Listed Options fees, per
contract, are as follows: \20\
---------------------------------------------------------------------------

    \20\ While Singly-Listed Options fees also apply to FX options,
these fees are not proposed to be changed and therefore, for
purposes of brevity, are not reproduced here.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Specialist and
                                                                         Customer       Professional     market maker         Firm        Broker- dealer
--------------------------------------------------------------------------------------------------------------------------------------------------------
Options Transaction Charge.........................................           $0.40            $0.70            $0.40            $0.70            $0.70
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Today, the Exchange assesses an Options Transaction Charge for
Customers of $0.40 per contract, for Professionals, Firms, and Broker-
Dealers of $0.70 per contract, and for Specialists and Market Makers of
$0.40 per contract. These fees apply to options overlying FX, equities,
ETNs, ETFs, and indexes not listed on another exchange.\21\ The
Exchange proposes to increase the Professional, Broker-Dealer, and Firm
Options Transaction Charges from $0.70 to $0.75 per contract for Singly
Listed Options.\22\ The increase

aligns these fees with the above-described proposed electronic non-
Penny Pilot fees in Section II of the Pricing Schedule.\23\ Despite the
fee increase, the proposal will allow the Exchange to incentivize
market participants to transact Singly Listed Options.
---------------------------------------------------------------------------

    \21\ These Singly Listed Options include SOX, HGX, and OSX.
    \22\ The Exchange is not increasing the fees for Customers and
Specialists and Market Makers. As discussed herein, Customer orders
bring valuable liquidity to the market, which liquidity benefits
other market participants; and Specialists and Market Makers have
market obligations (e.g., to make continuous markets) that other
market participants do not have.
    \23\ Professionals, Broker-Dealers, and Firms are proposed to be
similarly assessed a $0.75 per contract electronic Options
Transaction Charge in Multiply Listed [sic] Options.
---------------------------------------------------------------------------

    The Exchange believes that the fees and rebates in its Pricing
Schedule are structured to attract liquidity. Tier 4 and 5 of the
Customer Rebate Schedule in Section B, for example, provide the highest
relative rebates in the five tier Customer Rebate Program to those that
bring the most liquidity to the Exchange, in particular where the
percentage thresholds of national customer volume in multiply-listed
equity and ETF Options classes, excluding SPY Options (monthly) are
also the highest. In making the proposed changes to the Pricing
Schedule, the Exchange continues to incentivize members to execute
liquidity on the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal to amend the Pricing
Schedule is consistent with Section 6(b) of the Act \24\ in general,
and furthers the objectives of Section 6(b)(4) and (b)(5) of the Act
\25\ in particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system which Phlx operates or
controls, and is not designed to permit unfair discrimination between
market participants to whom the Exchange's fees and rebates are
applicable.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------

    Section B--Customer Rebates
    The Exchange believes that its proposal to change the Tier 4
Customer Rebate (Category B) from $0.20 to $0.22, and to change the
Tier 5 Customer Rebate (Category B) from $0.20 to $0.22, is reasonable.
These proposed changes will allow the Exchange to continue to attract
Customer liquidity to the Exchange. Customer orders bring valuable
liquidity to the market, which liquidity benefits other market
participants. Customer liquidity benefits all market participants by
providing more trading opportunities, which attracts Specialists and
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
The Exchange believes that the proposed increased Category B rebates
will continue to encourage members to send Customer liquidity to Phlx
despite the cap on PIXL Complex Order rebates at the proposed 4,000
contracts per order leg. The Exchange believes that the proposed two
cent increase is reasonable. Additionally, the CBOE has similar
rebates.\26\
---------------------------------------------------------------------------

    \26\ CBOE's VIP credit for certain orders in Tier 3 is $0.22 per
contract. See CBOE's Fees Schedule. See also Securities Exchange Act
Release No. 371588 (June 17, 2015), 80 FR 36021 (June 23, 2015) (SR-
CBOE-2015-058) (rule change increasing VIP credit for certain orders
in Tier 3 from $0.16 per contract to $0.22 per contract, also in
Tier 2 from $0.16 per contract to $0.21 per contract and in Tier 4
from $0.17 per contract to $0.23 per contract).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to change the Tier 4 and
Tier 5 Customer Rebate (Category B) from $0.20 to $0.22 is equitable
and not unfairly discriminatory because these amendments to Category B
apply uniformly to all market participants to whom Category B applies.
Moreover, the Exchange believes that the resulting 5 cents difference
between Category B Tiers 3 and 4 ($0.17 and $0.22) is reasonable and
not unfair since, comparatively, the current difference between Tiers 1
and 2 is 17 cents.
Section II--Multiply Listed Options
    The Exchange believes that increasing from $0.70 to $0.75 the
amount that is currently assessed to a Professional, Broker-Dealer, and
Firm for electronic orders in certain Multiply Listed non-Penny Pilot
Options is reasonable. Despite the increase in the fee, the Exchange
believes that its fee structure will continue to incentivize
Professionals, Broker-Dealers, and Firms to transact electronic non-
Penny Pilot volume on the Exchange. The Exchange believes that the
proposed fee, although higher, will continue to incentivize
Professionals, Broker-Dealers, and Firms to send order flow to the
Exchange. In addition, these modestly increased fees are consistent
with similarly increased proposed fees for Singly Listed Options. The
Exchange believes that it is reasonable for it to instill consistency
in its pricing as discussed.
    The Exchange believes that increasing from $0.70 to $0.75 the
amount that is currently assessed to a Professional, Broker-Dealer, and
Firm for electronic orders in certain Multiply Listed non-Penny Pilot
Options is equitable and not unfairly discriminatory because it applies
uniformly to all. Further, the proposed amendment will continue to
allow the Exchange to incentivize Professionals, Broker-Dealers, and
Firms to send electronic order flow to the Exchange for execution. The
Exchange's fees will be competitive with fees at other options markets.
Although the Exchange will still be assessing Professionals, Broker-
Dealers, and Firms more than Customers (which do not pay the Option
Transaction Charge in Penny Pilot or in non-Penny Pilot Options),
Customer order flow enhances liquidity on the Exchange for the benefit
of all market participants and benefits all market participants by
providing more trading opportunities, which attracts Specialists and
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
Although Professionals, Broker-Dealers, and Firms will still be charged
more for non-Penny Pilot Options than Specialists and Market Makers,
who are charged $0.25 and $0.30, respectively, Specialists and Market
Makers have obligations to the market and regulatory requirements,
which normally do not apply to other market participants.\27\
Specialists and Markets have obligations to make continuous markets,
engage in a course of dealings reasonably calculated to contribute to
the maintenance of a fair and orderly market, and not make bids or
offers or enter into transactions that are inconsistent with a course
of dealings.
---------------------------------------------------------------------------

    \27\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
---------------------------------------------------------------------------

    The Exchange believes it is reasonable to propose to delete the
reference to Customer Rebate Tiers 2 and 3 in notes 14 and 15. Thus,
note 15 would continue to apply to Specialists and Market Makers and
after the proposal any member or member organization under Common
Ownership with another member or member organization that qualifies for
Customer Rebate Tiers 4 [sic] or 5 [sic] in Section B of the Pricing
Schedule will be assessed $0.23 per contract. Similarly, note 14 would
continue to apply to Professionals, Broker-Dealers, and Firms and after
the proposal any member or member organization under Common Ownership
with another member or member organization that qualifies for Customer
Rebate Tiers 4 or 5 in Section B of the Pricing Schedule will be
assessed $0.60 per contract. The Exchange believes that the
qualification for Customer Rebate Tiers 4 or 5 is no

longer necessary for the discount incentive in notes 14 and 15,
particularly where Professionals, Broker-Dealers, Specialists, and
Market Makers, and Firms can choose to earn the discount by qualifying
for Customer Rebate Tiers 4 or 5 by bringing liquidity to the Exchange.
Despite the proposed deletion of the reference to Customer Rebate Tiers
2 and 3 in notes 14 and 15, the Exchange believes that its fee
structure will continue to incentivize Professionals, Firms, Broker-
Dealers, and Specialists and Market Makers to transact electronic non-
Penny Pilot volume on the Exchange. The Exchange believes that with the
proposed deletion of the reference to Customer Rebate Tiers 2 and 3,
the incentive remains to bring more order flow to the Exchange to earn
the discount.
    The Exchange believes it is equitable and not unfairly
discriminatory to increase from $0.70 to $0.75 the Multiply Listed non-
Penny Pilot Options fee, as well as to delete the reference to Customer
Rebate Tiers 2 and 3 in notes 14 and 15. The Exchange believes that the
proposed changes will enable to Exchange to continue to incentivize
market participants to bring non-Penny Pilot Customer liquidity to the
Exchange. Customer liquidity benefits all market participants by
providing more trading opportunities, which attracts Specialists and
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
Specialists and Market Makers are assessed lower electronic Options
Transaction Charges in Penny Pilot Options as compared to
Professionals, Broker-Dealers, and Firms because they have obligations
to the market and regulatory requirements, which normally do not apply
to other market participants.\28\ They have obligations to make
continuous markets, engage in a course of dealings reasonably
calculated to contribute to the maintenance of a fair and orderly
market, and not make bids or offers or enter into transactions that are
inconsistent with a course of dealings. The proposed differentiation as
between Customers and Specialists and Market Makers and other market
participants (e.g., Professionals, Broker-Dealers, and Firms)
recognizes the differing contributions made to the liquidity and
trading environment on the Exchange by these market participants.
Moreover, the proposed changes to the fee structure and rebate
structure will be applied uniformly to all.
---------------------------------------------------------------------------

    \28\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
---------------------------------------------------------------------------

Section III--Singly Listed Options
    The Exchange believes that increasing the Professional, Firm, and
Broker-Dealer Options Transaction Charges is reasonable because the
Exchange is seeking to conform fees to electronic Non-Penny Pilot
Options \29\ pricing for Multiply Listed Options \30\ in order to
recoup the operational costs \31\ for Singly Listed Options. Also, the
Exchange believes the fees are reasonable because the proposed fees are
within the range of similar fees assessed at other exchanges.\32\
---------------------------------------------------------------------------

    \29\ All Singly Listed Options are Non-Penny Pilot Options.
    \30\ See Section II of the Pricing Schedule.
    \31\ By way of example, in analyzing an obvious error, the
Exchange would have additional data points available in establishing
a theoretical price for a Multiply Listed Option as compared to a
Singly Listed Option, which requires additional analysis and
administrative time to comply with Exchange rules to resolve an
obvious error.
    \32\ CBOE assesses an $0.80 per contract fee to Customers,
Broker-Dealers, Non-Trading Permit Holder Market Makers and
Professional, Voluntary Professional and Joint Back-Office market
participants for SPX Range Options (SRO) transactions, a proprietary
index, in addition to a surcharge fee. SPX refers to options on the
Standard & Poor's 500 Index. See CBOE's Fees Schedule. In addition,
NASDAQ Options Market LLC (``NOM'') assesses Non-Penny Pilot Fees
for Removing Liquidity ranging from $0.85 to $0.89 per contract
depending on the market participant. See Chapter XV, Section 2 of
NOM's Rules. The Exchange also assesses a Professional, Broker-
Dealer and Firm an electronic options transaction charge (non-Penny
Pilot Options) of $0.70 per contract for transactions in Multiply
Listed Options. See Section II of the Exchange's Pricing Schedule.
---------------------------------------------------------------------------

    The Exchange believes that increasing the Professional, Firm, and
Broker-Dealer Options Transaction Charges is equitable and not unfairly
discriminatory because the pricing will be comparable among similar
categories of market participants, as is the case today. Professionals,
Firms, and Broker-Dealers will be assessed the same rates ($0.70 [sic]
per contract) and Customers and Specialists and Market Makers will
continue to be assessed lower rates as compared to other market
participants. Customer order flow is, as discussed above, assessed the
lowest fee because incentivizing members to continue to offer Customer
trading opportunities in Singly Listed Options benefits all market
participants through increased liquidity. The Exchange notes that
Specialists and Market Makers are assessed lower options transaction
charges as compared to other market participants, except Customers,
because they have burdensome quoting obligations \33\ to the market
which do not apply to Customers, Professionals, Firms, and Broker-
Dealers. The proposed differentiation as between Customers and
Specialists and Market Makers as compared to Professionals, Firms, and
Broker-Dealers recognizes the differing contributions made to the
liquidity and trading environment on the Exchange by these market
participants. The proposed changes to the Options Transactions Charge
will be applied uniformly to all.
---------------------------------------------------------------------------

    \33\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
---------------------------------------------------------------------------

    The Exchange desires to continue to incentivize members and member
organizations, through the Exchange's rebate and fee structure, to
select Phlx as a venue for bringing liquidity and trading by offering
competitive pricing. Such competitive, differentiated pricing exists
today on other options exchanges. The Exchange's goal is creating and
increasing incentives to attract orders to the Exchange that will, in
turn, benefit all market participants through increased liquidity at
the Exchange.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
    The Customer Rebate Program amendments in Section B of the Pricing
Schedule do not create an undue burden on competition and, like all of
the amendments proposed by the Exchange, will apply uniformly to all
market participants. Moreover, the Section B amendments will enable the
Exchange to continue to attract liquidity, which benefits all market
participants by providing more trading opportunities, which attracts
Specialists and Market Makers. The Exchange's proposal to increase the
assessment for Professional, Broker-Dealer, and Firm Multiply-Listed
Options electronic Orders in certain non-Penny options, and the
deletion of Customer Rebate Tiers 2 and 3 from notes 14 and 15, does
not place an undue burden on competition, but rather will similarly
allow the Exchange to continue to attract liquidity. In addition, the
proposed $0.75 fee in Section II is consistent with what is assessed by
CBOE, as well as the Exchange proposal in Section III to increase the
assessment applicable to Professionals, Broker-Dealers, and Firms that
transact Singly-Listed. These increases do not create an undue burden
on competition, but rather align the

proposed Singly-Listed Option fees in Section III with the proposed
non-Penny Pilot Option fees in Section II of the Pricing Schedule, as
well as with other exchanges. Despite these proposed fee and rebate
changes, the Exchange's proposal will allow it to continue to
incentivize market participants to bring liquidity to the Exchange, as
described herein.
    The Exchange operates in a highly competitive market, comprised of
twelve exchanges, in which market participants can easily and readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive or rebates to be inadequate.
Accordingly, the fees that are assessed and the rebates paid by the
Exchange, as described in the proposal, are influenced by these robust
market forces and therefore must remain competitive with fees charged
and rebates paid by other venues and therefore must continue to be
reasonable and equitably allocated to those members that opt to direct
orders to the Exchange rather than competing venues.
    The proposed fees are designed to ensure a fair and reasonable use
of Exchange resources by allowing the Exchange to recoup costs while
continuing to attract liquidity and offer connectivity at competitive
rates to Exchange members and member organizations.

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.\34\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2015-61 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-Phlx-2015-61. 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-Phlx-2015-61 and should be
submitted on or before August 11, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
---------------------------------------------------------------------------

    \35\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-17754 Filed 7-20-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 99 (Wednesday, May 24, 2017)]
[Rules and Regulations]
[Pages 23731-23735]
[FR Doc No: 2017-10336]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 100, 110, and 165

[Docket No. USCG-2016-0949]
RIN 1625-AA08; AA01, AA87

Special Local Regulation, Temporary Anchorages and Safety Zones:
Sail Boston 2017; Port of Boston, MA

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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

SUMMARY: The Coast Guard is adopting a temporary special local
regulation, multiple safety zones, and temporary spectator anchorages
before, during, and after Sail Boston 2017 in the Port of Boston,
Massachusetts, to be held between June 16, 2017 and June 22, 2017.
These regulations are necessary to promote the safe navigation of
vessels and the safety of life and property during this event.

DATES: This rule is effective without actual notice from May 24, 2017
until June 22, 2017, except that the suspension of Sec.  110.138 is
effective from 8:00 a.m. on June 16, 2017, through 4:00 p.m. on June
17, 2017. For the purposes of enforcement, actual notice will be used
from the date the rule was signed, May 15, 2017, until May 24, 2017.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to http://www.regulations.gov, type USCG-
2016-0949 in the ``SEARCH'' box and click ``SEARCH.'' Click on Open
Docket Folder on the line associated with this rule.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mark Cutter, Sector Boston Waterways Management Division,
U.S. Coast Guard; telephone<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Acronyms

CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
Sec.  Section
TFR Temporary Final Rule
U.S.C. United States Code

II. Background Information and Regulatory History

    On March 24, 2017, the Coast Guard published a NPRM titled
``Special Local Regulations, Temporary Anchorages, and Safety Zones:
Sail Boston 2017; Port of Boston, MA'' (82 FR 15014). There we stated
why we issued the NPRM, and invited comments on our regulatory action.
During the comment period that ended on April 24, 2017, we received no
comments.
    The Coast Guard is making this temporary rule effective less than
30 days after publication in the Federal Register pursuant to authority
under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C.
553(d)). This provision authorizes an agency to make a rule effective
less than 30 days after publication for good cause. We are issuing this
rule, and under 5 U.S.C. 553(d)(3), the Coast Guard finds that good
cause exists for making it effective less than 30 days after
publication in the Federal Register because waiting the 30 days would
be impracticable and or contrary to the public interest. It would be
impracticable and or contrary to the public interest because the Sail
Boston 2017 events will be taking place starting on a definite date of
June 16, 2017, and if this rule is not made effective by the date then
it would inhibit the Coast Guard's ability to perform its statutory
mission to ensure the safety of the maritime public.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 33 U.S.C.
471, 1221 through 1236, 2071 50 U.S.C. 191 and Department of Homeland
Security Delegation No. 0170.1, which collectively authorize the Coast
Guard to establish safety zones, anchorages and special local
regulations.
    The Captain of the Port (COTP) Boston has determined that this rule
will provide for the safety of life on navigable waters and to protect
the participating Tall Ships, private vessels, spectators, and the Port
of Boston during Sail Boston 2017.

IV. Discussion of Comments, Changes, and the Rule

    As noted above, we received no comments on our NPRM published on
March 24, 2017. The only change from the NPRM is that we added a
``NOTE'' following the regulatory text to advise the public that Boston
Harbor is a ``NO-DISCHARGE ZONE.'' This rule adopts a temporary special
local regulation, multiple safety zones, and temporary spectator
anchorage grounds before, during and after Sail Boston 2017.

Temporary Spectator Anchorage Grounds

    The Coast Guard will add temporary section 110.T01-0949 to
establish thirteen temporary spectator anchorage grounds for spectator
craft for the arrival of the participating Tall Ships on June 16, 2017
and the Sail Boston 2017 Parade of Tall Ships on June 17, 2017. This
rule also includes the temporary suspension of 33 CFR 110.138, the
Boston Harbor, Massachusetts anchorage ground, during the periods the
new spectator anchorage grounds and regulations are temporarily
established.
    The anchorage regulations would temporarily establish spectator
anchorage grounds for recreational, special use, fishing, and
commercial vessels during the Sail Boston 2017 Parade of Tall Ships.

Special Local Regulations

    In 1992, 2000, 2009, and 2012, similar events, including Sail
Boston 1992, 2000, 2009, and War of 1812 in 2012, drew several hundred
thousand spectators by land, as well as water, to Boston Harbor.
    Recognizing the significant amount of recreational boating traffic
this event is expected to draw, the Coast Guard will establish a
special local regulation that would create vessel movement control
measures in Boston Harbor that will be in effect during the entirety of
the Sail Boston 2017 event. This section would be designated as section
100.T01-0949.
    The special local regulation is needed to control vessel movement
in order to facilitate timely law enforcement support vessels access to
Maritime and transportation facilities. Additionally, the regulated
areas will protect the maritime public and participating vessels from
possible hazards to navigation associated with dense vessel traffic.

Safety Zones

    The Coast Guard is establishing safety zones in section 165.T01-
0949. On June 16, 2017, tall ships participating in the parade of sail
will rally in Broad Sound.

The Coast Guard is establishing a 100-yard safety zone surrounding
participating Tall Ships while they are anchored in Broad Sound. The
regulation would be enforced from June 16 to June 17.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
executive orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders and we discuss
First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13563 emphasizes the importance of
quantifying both costs and benefits, of reducing costs, of harmonizing
rules, and of promoting flexibility. This rule has not been designated
a ``significant regulatory action,'' under Executive Order 12866.
Accordingly, this rule has not been reviewed by the Office of
Management and Budget.
    Although this regulation imposes temporary spectator anchorages,
traffic control measures, and safety zones in portions of Boston Harbor
during the events, the effect of this regulation will not be
significant for the following reasons: Vessels needing to depart the
temporary spectator anchorages may do so with permission from the
COTP's designated on-scene representative and vessels will have
sufficient transit room around the outer edge of the designated
anchorages. The traffic control measures are confined to areas of
minimal distance, they follow the natural flow of Boston Harbor
traffic, they are in compliance with the navigational rules of the
road, and crossovers have been established for vessels wanting to
change direction. The 25-yard safety zone around participating Tall
Ships while moored will have no impact to vessel movement in Boston
Harbor and will only be in place during the 5 days of Sail Boston
activities. Sail Boston, Inc. over the past 6 months has held multiple
public meetings discussing Sail Boston 2017 events and during each
meeting, these proposals have been discussed. An extensive advance
notice will be made to mariners via appropriate means, which may
include broadcast notice to mariners, local notice to mariners,
facsimile, marine safety information bulletin, local Port Operators
Group meetings, Harbor Safety Committee meetings, the Internet, USCG
Sector Boston Homeport Web page, handouts, and local newspapers and
media. The advance notice will permit mariners to adjust their plans
accordingly. Similar restrictions were established for other Sail
Boston events in 1992, 2000, 2009, and War of 1812 in 2012. Based upon
the Coast Guard's experiences from those previous events of similar
magnitude, these regulations have been narrowly tailored to impose the
least impact on maritime interests while providing the necessary level
of safety.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
does not have a significant economic impact on a substantial number of
small entities.
    While some owners or operators of vessels intending to transit
Boston Harbor may be small entities, for the reasons stated in section
V.A above this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of federal
employees who enforce, or otherwise determine compliance with, federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule does not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this rule has implications for federalism or Indian tribes,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule does not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that
this action is one of a category of actions that do not individually or
cumulatively have a significant effect on the human environment. This
rule involves suspending permanent anchorages, establishing temporary
spectator anchorages, establishing temporary

safety zones, and traffic control measures to facilitate the safety of
all vessels participating, watching the Parade of Tall Ships and the
viewing of the moored Tall Ships during the Sail Boston 2017 event.
These actions are categorically excluded from further review under
paragraph 34 (f), (g), and (h) of Figure 2-1 of Commandant Instruction
M16475.lD. A Record of Environmental Consideration (REC) supporting
this determination is available in the docket where indicated under
ADDRESSES.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places, or vessels.

List of Subjects

33 CFR Part 100

    Marine safety, Navigation (water), Reporting and recordkeeping
requirements, and Waterways.

33 CFR Part 110

    Anchorage grounds.

33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR parts 100, 110, and 165 as follows:

PART 100--SAFETY OF LIFE ON NAVIGABLE WATERS

0
1. The authority citation for part 100 continues to read as follows:

    Authority: 33 U.S.C. 1233.

0
2. Add Sec.  100.T01-0949 to read as follows:

Sec.  100.T01-0949  Special Local Regulation: Sail Boston 2017; Port of
Boston, MA.

    (a) Location: This special local regulation establishes a regulated
area to include all waters west of a line drawn from the monument at
Castle Island in approximate position 42[deg]20'21'' N., 71[deg]00'37''
W., to the Logan Airport Security Zone Buoy ``24'' in approximate
position 42[deg]20'45'' N., 71[deg]00'29'' W., and then to land in
approximate position 42[deg]20'48'' N., 71[deg]00'27'' W., including
the Reserved Channel to the Summer Street retractile bridge in
approximate position 42[deg]20'34'' N., 71[deg]02'11'' W., the Charles
River to the Gridley Locks at the Charles River Dam in approximate
position 42[deg]22'07'' N., 71[deg]03'40'' W., the Mystic River at the
Alford Street Bridge in approximate position 42[deg]23'22'' N.,
71[deg]04'16'' W., and the Chelsea River to the McArdle Bridge in
approximate position 42[deg]23'09'' N., 71[deg]02'21'' W.
    (b) Special Local Regulations. (1) During the effective period,
vessel operators transiting through the regulated area shall proceed in
a counterclockwise direction at no wake speeds not to exceed five
knots, unless otherwise authorized by the Captain of the Port.
    (2) Vessel operators shall comply with the directions and orders of
the COTP or the COTP's representative, upon being hailed by siren,
radio, flashing lights, or other means. The COTP's representative may
be any Coast Guard commissioned, warrant, or petty officer or any
federal, state, or local law enforcement officer who has been
designated by the COTP to act on the COTP's behalf. The COTP's
representative may be on a Coast Guard vessel, a Coast Guard Auxiliary
vessel, a federal, state or local law enforcement or safety vessel, or
a location on shore.
    (3) From 4 p.m. on June 17, 2017 through 8 a.m. on June 22, 2017,
vessel control measures will be implemented. The traffic pattern will
be in a counterclockwise rotation, such that all vessels shall stay
generally as far to the starboard side of the channel as is safe and
practicable.
    (4) To facilitate commercial ferry traffic with minimal disruption,
commercial ferries within the regulated area, moving between stops on
their normal routes, will be exempt from the mandatory counterclockwise
traffic pattern. This exemption does not give ferries navigational
precedence or in any way alter their responsibilities under the Rules
of the Road or any other pertinent regulations.
    (5) Vessel operators transiting the waterway between the World
Trade Center and Fish Pier must enter and keep to the starboard side of
the channel, proceeding as directed by the on-scene COTP's
representative. Vessel traffic shall move in a counterclockwise
direction around a turning point as marked by an appropriate on-scene
COTP's representative.
    (6) Vessel operators transiting this area must maintain at least a
twenty five (25) yard safe distance from all participating Sail Boston
Tall Ships and must make way for all deep draft vessel traffic underway
in the area.
    (7) When a vessel greater than 125 feet enters the waterway between
the World Trade Center and the Fish Pier, no other vessel will be
allowed to enter until the larger vessel departs that area, unless
authorized by the on-scene COTP's representative.
    (8) From 10 p.m. through 8 a.m. daily, while the regulated area is
in effect, only vessels which are tenants within the channels of the
World Trade Center and the Fish Pier will be authorized access.
    (9) The COTP may control the movement of all vessels operating on
the navigable waters of Boston Harbor when the COTP has determined that
such orders are justified in the interest of safety by reason of
weather, visibility, sea conditions, temporary port congestion, or
other temporary hazards circumstance.
    (10) To obtain permissions required by this regulation, individuals
may reach the COTP or a COTP representative via VHF channel 16 or 617-
223-5757 (Sector Boston Command Center).
    (11) Penalties. Those who violate this section are subject to the
penalties set forth in 33 U.S.C. 1232 and 50 U.S.C. 192.
    (c) Enforcement period. This regulation is will be enforced from 4
p.m. on June 17, 2017 through 8 a.m. on June 22, 2017.

PART 110--ANCHORAGE REGULATIONS

0
3. The authority citation for part 110 continues to read as follows:

    Authority: 33 U.S.C. 471; 33 U.S.C. 1221 through 1236, 2071; 33
CFR 1.05-1; Department of Homeland Security Delegation No. 0170.1.

Sec.  110.138   [Suspended]

0
4. From 8:00 a.m. on June 16, 2017, through 4:00 p.m. on June 17, 2017,
suspend Sec.  110.138.

0
5. Add Sec.  110.T01-0949 to read as follows:

Sec.  110.T01-0949  Temporary Anchorages: Sail Boston 2017; Port of
Boston, MA.

    (a) Anchorages. All anchorages in this paragraph are applicable as
specified. Vessel operators using the anchorages in this paragraph must
comply with the general operational requirements specified in paragraph
(b) and (c) of this section. All coordinates are NAD 1983.
    (1) Anchorage 1. (i). All waters bounded by the following
coordinates: 42[deg]22'06'' N./071[deg]02'43'' W., 42[deg]22'11'' N./
071[deg]02'39'' W., 42[deg]22'07'' N./071[deg]02'32'' W., and
42[deg]22'03'' N./071[deg]02'35'' W.
    (ii) This anchorage ground is designated for the exclusive use of

recreational vessels that are 45 feet or less in length and have
superstructures that do not exceed 10 feet in height.
    (2) Anchorage 2. (i) All waters bounded by the following
coordinates: 42[deg]21'41'' N./071[deg]02'25'' W., 42[deg]21'47'' N./
071[deg]02'20'' W., 42[deg]21'35'' N./071[deg]01'53'' W., and
42[deg]21'29'' N./071[deg]01'58'' W.
    (ii) This anchorage ground is designated for the exclusive use of
recreational vessels that are 45 feet or less in length and have
superstructures that do not exceed 10 feet in height.
    (3) Anchorage 3. (i) All waters bounded by the following
coordinates: 42[deg]21'26'' N./071[deg]01'51'' W., 42[deg]21'32'' N./
071[deg]01'47'' W., 42[deg]21'25'' N./071[deg]01'33'' W., and
42[deg]21'19'' N./071[deg]01'37''.
    (ii) This anchorage ground is designated for the exclusive use of
recreational vessels that are 45 feet or less in length and their
height above water does not to exceed 50 feet.
    (4) Anchorage 4. (i) All waters bounded by the following
coordinates: 42[deg]21'19'' N./071[deg]01'37'' W., 42[deg]21'25'' N./
071[deg]01'33'' W., 42[deg]21'09'' N./071[deg]01'02'' W., and
42[deg]21'04'' N./071[deg]01'06''.
    (ii) This anchorage ground is designated for the exclusive use of
inspected and uninspected small passenger vessels (certificated by the
Coast Guard under subchapters T and K of chapter I of title 46, Code of
Federal Regulations), and charter vessels that do not exceed 50 feet in
height above the water line.
    (5) Anchorage 5. (i) All waters bounded by the following
coordinates: 42[deg]21'04'' N./071[deg]01'06'' W., 42[deg]21'09'' N./
071[deg]01'02'' W., 42[deg]20'48'' N./071[deg]00'29'' W., and
42[deg]20'47'' N./071[deg]00'29''.
    (ii) This anchorage ground is designated for the exclusive use of
inspected and uninspected small passenger vessels (certificated by the
Coast Guard under subchapters T and K of chapter I of title 46, Code of
Federal Regulations), and charter vessels that do not exceed 50 feet in
height above the water line.
    (6) Anchorage 6. (i) All waters bounded by the following
coordinates: 42[deg]20'09'' N./070[deg]59'39'' W., 42[deg]20'23'' N./
070[deg]59'32'' W., 42[deg]20'19'' N./071[deg]59'17'' W., and
42[deg]20'07'' N./070[deg]59'24''.
    (ii) This anchorage ground is designated for the exclusive use of
recreational vessels.
    (7) Anchorage 7. (i) All waters bounded by the following
coordinates: 42[deg]20'06'' N./070[deg]59'23'' W., 42[deg]20'36'' N./
070[deg]59'06'' W., 42[deg]20'34'' N./070[deg]58'31'' W., and
42[deg]20'05'' N./070[deg]58'45''.
    (ii) This anchorage ground is designated for the exclusive use of
recreational vessels.
    (8) Anchorage 8. (i) All waters bounded by the following
coordinates: 42[deg]20'06'' N./070[deg]58'43'' W., 42[deg]20'35'' N./
070[deg]58'28'' W., 42[deg]20'33'' N./070[deg]57'29'' W., and
42[deg]20'05'' N./070[deg]57'31''.
    (ii) This anchorage ground is designated a general anchorage with
no restrictions.
    (9) Anchorage 9. (i) All waters bounded by the following
coordinates: 42[deg]19'45'' N./070[deg]59'55'' W., 42[deg]19'58'' N./
070[deg]59'55'' W., 42[deg]19'57'' N./070[deg]58'47'' W., and
42[deg]19'44'' N./070[deg]58'47''.
    (ii) This anchorage ground is designated as general transient
anchorage for all vessels that do not exceed 50 feet in height above
the water line, with no overnight anchoring. This anchorage is only
applicable from 6 a.m. on June 17, 2017 until 4 p.m. on June 17, 2017.
    (10) Anchorage 10. (i) All waters bounded by the following
coordinates: 42[deg]19'44'' N./070[deg]58'44'' W., 42[deg]19'58'' N./
070[deg]58'47'' W., 42[deg]19'55'' N./070[deg]57'28'' W., and
42[deg]19'43'' N./070[deg]57'35''.
    (ii) This anchorage ground is designated for the exclusive use of
recreational vessels with no overnight anchoring. This anchorage is
only applicable from 6 a.m. on June 17, 2017 until 4 p.m. on June 17,
2017.
    (11) Anchorage 11. (i) All waters bounded by the following
coordinates: 42[deg]20'30'' N./070[deg]56'30'' W., 42[deg]21'58'' N./
070[deg]56'05'' W., and 42[deg]21'32'' N./070[deg]55'27''.
    (ii) This anchorage ground is designated for the exclusive use of
late arriving recreational vessels and no overnight anchoring. This
anchorage is only applicable from 6 a.m. on June 17, 2017 until 4 p.m.
on June 17, 2017.
    (12) Anchorage 12. (i) All waters bounded by the following
coordinates: 42[deg]20'07'' N./070[deg]56'28'' W., 42[deg]21'43'' N./
070[deg]54'51'' W., 42[deg]21'18'' N./070[deg]54'29'' W., and
42[deg]20'05'' N./070[deg]55'51''.
    (ii) This anchorage ground is designated for the exclusive use of
late arriving recreational vessels and no overnight anchoring. This
anchorage is only applicable from 6 a.m. on June 17, 2017 until 4 p.m.
on June 17, 2017.
    (13) Anchorage 13. (i) All waters bounded by the following
coordinates: 42[deg]19'55'' N./070[deg]56'40'' W., 42[deg]20'06'' N./
070[deg]56'28'' W., 42[deg]20'05'' N./070[deg]55'51'' W., and
42[deg]19'51'' N./070[deg]56'05''.
    (ii) This anchorage ground is designated for the exclusive use of
inspected and uninspected small passenger vessels (certificated by the
Coast Guard under subchapters T and K of chapter I of title 46, Code of
Federal Regulations), and charter vessels. This anchorage is only
applicable from 6 a.m. on June 17, 2017 until 4 p.m. on June 17, 2017.
    (b) The regulations. The anchorages designated in paragraphs (a)(1)
through (13) of this section are subject to the following regulations:
    (1) General Operational Requirements for all anchorages. Vessel
operators using any of the anchorages established in this section
shall:
    (i) Ensure their vessels are properly anchored and remain safely in
position at anchor during marine events.
    (ii) Vessel operators shall comply with the directions and orders
of the COTP or the COTP's representatives, upon being hailed by siren,
radio, flashing lights, or other means. The COTP's representative may
be any Coast Guard commissioned, warrant, or petty officer or any
federal, state, or local law enforcement officer who has been
designated by the COTP to act on the COTP's behalf. The COTP's
representative may be on a Coast Guard vessel, a Coast Guard Auxiliary
vessel, a Federal, state, or local law enforcement or safety vessel, or
a location on shore.
    (iii) Vacate anchorages after termination of their effective
periods.
    (iv) Buoy with identifiable markers and release anchors fouled on
lobster trap lines if such anchors cannot be freed or raised.
    (v) Display anchor lights when anchoring at night in any anchorage.
    (vi) Do not leave vessels unattended in any anchorage at any time.
    (vii) Do not tie off to any aid to navigation or buoy.
    (ix) Maintain at least 20 feet of clearance if maneuvering between
anchored vessels.
    (x) Do not nest or tie off to other vessels in that anchorage.
    (xi) Based on COTP approval and direction, vessels commercially
engaged in the collection and legal disposal of marine sewage may
operate within spectator anchorages during the applicable periods.
    (2) [Reserved]
    (c) Enforcement dates. This section will be enforced from 8:00 a.m.
on June 16, 2017 through 4:00 p.m. on June 17, 2017 unless otherwise
noted.

    Note 1 to Sec.  110.T01-0949:  Caution: The designated spectator
anchorages in this section have not been specially surveyed or
inspected and navigational charts may not

show all seabed obstructions or shallowest depths. Additionally, the
anchorages are in areas of substantial currents. Mariners who use
these temporary anchorages should take appropriate precautions,
including using all means available to ensure vessels are not
dragging anchor.

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
6. The authority citation for part 165 continues to read as follows:

    Authority:  33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-
1, 6.04-6, and 160.5; Department of Homeland Security Delegation No.
0170.1.

0
7. Add Sec.  165.T01-0949 to read as follows:

Sec.  165.T01-0949  Safety Zone: Sail Boston 2017; Port of Boston, MA.

    (a) Location. The following are safety zones (all coordinates are
NAD 1983):
    (1) All navigable waters from surface to bottom, within a 100-yard
radius of each participating Tall Ship while anchored in Broad Sound.
    (2) All navigable waters from surface to bottom, within 1000-yards
ahead and astern and 100-yards on each side of participating Tall
Ships, during their transit from anchorage to mooring.
    (3) All navigable waters from surface to bottom, within 25-yards
surrounding participating Tall Ships while moored at various locations
throughout the Port of Boston.
    (4) All navigable waters from surface to bottom, bounded within the
following points (NAD 83): From 42[deg]39.00'' N., 070[deg]26.00'' W.,
thence to 42[deg]39.00'' N., 070[deg]24.00'' W., thence to
42[deg]38.00'' N., 070[deg]24.00'' W., thence to 42[deg]38.00'' N.,
070[deg]26.00'' W., thence to the first point.
    (b) Regulations. While these safety zones are being enforced, the
following regulations, along with those contained in 33 CFR 165.23,
apply:
    (1) No person or vessel may enter or remain in a safety zone
without the permission of the COTP, Sector Boston or the COTP's
representative.
    (2) Any person or vessel permitted to enter the safety zones shall
comply with the directions and orders of the COTP or the COTP's
representative. Upon being hailed by siren, radio, flashing lights, or
other means, the operator of a vessel within the zone shall proceed as
directed. Any person or vessel within the security zone shall exit the
zone when directed by the COTP or the COTP's representative.
    (3) To obtain permissions required by this regulation, individuals
may reach the COTP or a COTP representative via VHF channel 16 or 617-
223-5757 (Sector Boston Command Center) to obtain permission.
    (4) Penalties. Those who violate this section are subject to the
penalties set forth in 33 U.S.C. 1232 and 50 U.S.C. 192.
    (c) COTP Representative. The COTP's representative may be any Coast
Guard commissioned, warrant, or petty officer or any federal, state, or
local law enforcement officer who has been designated by the COTP to
act on the COTP's behalf. The COTP's representative may be on a Coast
Guard vessel, a Coast Guard Auxiliary vessel, federal, state, or local
law enforcement or safety vessel, or a location on shore.
    (d) Enforcement dates. Paragraph (a)(1) of this section is
applicable on June 16, 2017 through June 17, 2017. Paragraph (a)(2) of
this section is applicable on June 17, 2017. Paragraph (a)(3) of this
section is applicable on June 17, 2017 through June 22, 2017. Paragraph
(a)(4) of this section is applicable on June 22, 2017 from 4 p.m. until
8 p.m.

    Note 1 to Sec.  165.T01-0949:  Boston Harbor is a NO-DISCHARGE
ZONE. No-discharge zones are designated bodies of water where the
discharge of all boat sewage, whether treated or not, is prohibited
and a violation of federal law. Boat pumpout facilities provide a
convenient way to properly dispose of boat sewage. Many of the
pumpouts in this area are pumpout vessels. These vessels have the
capacity to bring the pumpout to the boater. In order to facilitate
compliance with this no-discharge zone, the pumpout vessels will be
allowed to maneuver through the regulated zones and anchorages
grounds. For additional information on complying with vessel sewage
discharge regulations and using pumpout facilities see http://www.mass.gov/eea/agencies/czm/program-areas/coastal-water-quality/ndz/.

    Dated: May 15, 2017.
C.C. Gelzer,
Captain, U.S. Coast Guard, Captain of the Port Boston.
[FR Doc. 2017-10336 Filed 5-23-17; 8:45 am]
 BILLING CODE 9110-04-P