[Federal Register Volume 79, Number 165 (Tuesday, August 26, 2014)]
[Rules and Regulations]
[Pages 50840-50844]
[FR Doc No: 2014-20225]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R08-OAR-2013-0006; FRL-9915-75-Region 8]

Approval and Promulgation of Air Quality Implementation Plans;
Wyoming; Revisions to the Wyoming Air Quality Standards and
Regulations; Ambient Standards for Particulate Matter and for Lead

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking direct
final action to approve a State Implementation Plan (SIP) revision
submitted by the State of Wyoming. The revision affects Wyoming's Air
Quality Standards and Regulations (WAQSR) regarding ambient standards
for particulate matter and for lead (Pb). This action is being taken
under section 110 of the Clean Air Act (CAA).

DATES: This rule is effective October 27, 2014 without further notice,
unless EPA receives adverse comment by September 25, 2014. If adverse
comment is received, EPA will publish a timely withdrawal of the direct
final rule in the Federal Register informing the public that the rule
will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R08-
OAR-2013-0006, by one of the following methods:
     http://www.regulations.gov. Follow the on-line
instructions for submitting comments.
     Email<EMAIL_ADDRESS>     Fax:<PHONE_NUMBER> (please alert the individual listed in
the FOR FURTHER INFORMATION CONTACT if you are faxing comments).
     Mail: Director, Air Program, EPA, Region 8, Mailcode 8P-
AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129.
     Hand Delivery: Director, Air Program, EPA, Region 8,
Mailcode 8P-AR, 1595 Wynkoop, Denver, Colorado 80202-1129. Such
deliveries are only accepted Monday through Friday, 8:00 a.m. to 4:30
p.m., excluding federal holidays. Special arrangements should be made
for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R08-OAR-
2013-0006. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any

personal information provided, unless the comment includes information
claimed to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Do not submit
information that you consider to be CBI or otherwise protected through
http://www.regulations.gov or email. The http://www.regulations.gov Web
site is an ``anonymous access'' system, which means EPA will not know
your identity or contact information unless you provide it in the body
of your comment. If you send an email comment directly to EPA, without
going through http://www.regulations.gov, your email address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses. For additional instructions on submitting
comments, go to Section I. General Information of the SUPPLEMENTARY
INFORMATION section of this document.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly-available docket materials are available either electronically
in http://www.regulations.gov or in hard copy at the Air Program, EPA,
Region 8, Mailcode 8P-AR, 1595 Wynkoop, Denver, Colorado 80202-1129.
EPA requests that if at all possible, you contact the individual listed
in the FOR FURTHER INFORMATION CONTACT section to view the hard copy of
the docket. You may view the hard copy of the docket Monday through
Friday, 8:00 a.m. to 4:00 p.m., excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Steven Pratt, Air Program, EPA, Region
8, Mailcode 8P-AR, 1595 Wynkoop, Denver, Colorado 80202-1129, (303)
312-6575<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Definitions

    For the purpose of this document, we are giving meaning to certain
words or initials as follows:
    (i) The words or initials Act or CAA mean or refer to the Clean Air
Act, unless the context indicates otherwise.
    (ii) The initials CFR mean the Code of Federal Regulations.
    (iii) The words EPA, we, us or our mean or refer to the United
States Environmental Protection Agency.
    (iv) The initials NAAQS mean National Ambient Air Quality Standard.
    (v) The initials PM2.5 mean or refer to particulate
matter with an aerodynamic diameter of less than 2.5 micrometers (fine
particulate matter).
    (vi) The initials PM10 mean or refer to particulate
matter with an aerodynamic diameter of less than or equal to 10
micrometers (coarse particulate matter).
    (vii) The initials Pb mean or refer to the heavy metal lead.
    (viii) The initials SIP mean or refer to State Implementation Plan.
    (ix) The initials WAQSR mean Wyoming Air Quality Standards and
Regulations.
    (x) The words Wyoming and State mean the State of Wyoming.

I. General Information

A. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
http://regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD ROM that you mail to EPA, mark the outside of the disk or CD ROM as
CBI and then identify electronically within the disk or CD ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments,
remember to:
    a. Identify the rulemaking by docket number and other identifying
information (subject heading, Federal Register date and page number).
    b. Follow directions--The agency may ask you to respond to specific
questions or organize comments by referencing a Code of Federal
Regulations (CFR) part or section number.
    c. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
    d. Describe any assumptions and provide any technical information
and/or data that you used.
    e. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    f. Provide specific examples to illustrate your concerns, and
suggest alternatives.
    g. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
    h. Make sure to submit your comments by the comment period deadline
identified.

II. Background of Wyoming's Submissions

    On August 19, 2011, the State of Wyoming submitted to EPA a formal
revision package detailing two rulemakings (R-4 and R-18) as revisions
to Wyoming's SIP. These revisions amend the WAQSR. In particular,
Wyoming has revised chapter 2, ``Ambient Standards,'' section 2,
``Ambient standards for particulate matter,'' section 10, ``Ambient
standards for lead,'' and section 12, ``Incorporation by reference.''
    The Wyoming Environmental Quality Council made these changes by
amending chapter 2, including sections 2, 10 and 12, via rulemakings R-
4 and R-18 on February 18, 2000, and July 8, 2010, respectively. In
accordance with the Wyoming Administrative Procedures Act, the
revisions were forwarded to the Wyoming Governor's Office where they
were approved, and then transmitted to the Wyoming Secretary of State's
office and became effective on March 30, 2000 and September 7, 2010,
respectively. All necessary State reviews and approvals have been
secured.
    In rulemaking R-4, section 2, the particulate matter ambient
standards were amended to adopt the 24-hour and annual PM2.5
standards into the State rule. Rulemaking R-18 made the State
PM2.5 ambient standards consistent with federal standards,
but no more stringent than federal standards, while deleting the annual
PM10 standard and retaining the 24-hour ambient air quality
standard for PM10. R-18 also amended section 10, the Pb
ambient standard, making Wyoming's Pb ambient standard consistent with,
but no more stringent than, the federal standard, and added section 12
to consolidate all incorporation by references for the chapter into one
section.

III. EPA's Evaluation of Wyoming's Submissions

    The SIP revisions in the August 19, 2011 submittal that we are
acting on in this document involve chapter 2, ``Ambient Standards,''
section 2, ``Ambient standards for particulate matter,'' section 10,
``Ambient standards for lead,'' and section 12, ``Incorporation by
reference.'' To determine if Wyoming's submissions should be approved
by EPA, EPA must evaluate the submissions for consistency with the CAA
and EPA regulations.
    In rulemaking R-4, section 2, the particulate matter ambient
standards were amended to adopt the annual and 24-hour PM2.5
NAAQS into the State rule. This is consistent with the CAA as in 1997
EPA established annual and 24-hour NAAQS for PM2.5 for the
first time. This requirement has been part of WAQSR since its
incorporation on February 18, 2000.
    In rulemaking R-18, section 2 was amended to make the State
PM2.5 ambient standards consistent with federal standards,
but no more stringent than federal standards. The section now sets the
primary and secondary ambient air quality standards for
PM2.5 at 15 micrograms per cubic meter (ug/m3) annual
arithmetic mean concentration, and; 35 micrograms per cubic meter (ug/
m3)--98th percentile 24-hour average concentration. The change defines
attainment of the annual and 24-hour standards in accordance with
Appendix N of 40 CFR part 50. It further sets the measurement of
PM2.5, for the purpose of determining attainment of the
standards, as determined by a reference method based on 40 CFR part 50,
Appendix L and designated in accordance with 40 CFR part 53 or an
equivalent or alternate method designated in accordance with 40 CFR
Part 53. The revision also retains the 24-hour PM10 ambient
air standards for PM10 particulate matter at 150 micrograms
per cubic meter 24-hour average concentration with not more than one
expected exceedance per year, and defines attainment of the 24-hour
standard as determined in accordance with Appendix K of 40 CFR part 50.
These changes correlate with the requirements of 40 CFR parts 50 and 53
as of the August 19, 2011 date of Wyoming's submittal. The State also
removed the annual PM10 standard from their regulations.
This is permissible as the EPA revoked the annual PM10 NAAQS
in a 2006 rulemaking (71 FR 61224, October 17, 2006).
    In rulemaking R-18, section 2 was further amended to make the State
Pb ambient standards consistent with federal standards, but no more
stringent than federal standards. The section now sets the primary and
secondary ambient air quality standards for Pb at 0.15 micrograms per
cubic meter, arithmetic mean concentration over a 3-month period. It
further defines the measurement of Pb in the ambient air as Pb either
by: a reference method based on 40 CFR part 50, Appendix G and
designated in accordance with 40 CFR part 53, or an equivalent method
designated in accordance with 40 CFR part 53. The section now defines
that primary and secondary ambient air quality standards for Pb are met
when the maximum arithmetic 3-month mean concentration for a 3-year
period, as determined in accordance with Appendix R of 40 CFR part 50,
is less than or equal to 0.15 micrograms per cubic meter. These changes
correlate with the requirements of 40 CFR parts 50 and 53 as of the
August 19, 2011 date of Wyoming's submittal.
    Finally, in rulemaking R-18, Chapter 2 was amended by adding a new
section 12 ``Incorporation by reference.'' This section was added to
simply consolidate all adoption by reference for Chapter 2 in one
place. It defines the CFRs cited in the chapter as those published as
of July 1, 2008, and details where copies of the applicable CFRs can be
found for public inspection and to obtain copies. These changes
correlate with the requirements of 40 CFR parts 50 and 53 as of the
August 19, 2011 date of Wyoming's submittal.
    EPA has reviewed Wyoming's rule amendments and additions analyzed
above. These rules mirror applicable language in 40 CFR parts 50 and
53. The changes quoted above provide the regulation necessary for the
State to determine compliance with the CAA for PM2.5,
PM10 and Pb NAAQS. Therefore, these WAQSR changes and
additions are consistent with the CAA and EPA regulations. As a result,
EPA is approving a SIP revision submitted by the State of Wyoming
consisting of the above discussed applicable portions of rulemakings R-
4 and R-18 submitted on August 19, 2011 to EPA Region 8.

IV. Consideration of Section 110(l) of the CAA

    Under section 110(l) of the CAA, EPA cannot approve a SIP revision
if the revision would interfere with any applicable requirements
concerning attainment and reasonable further progress toward attainment
of the NAAQS or any other applicable requirement of the Act. In
addition, section 110(l) requires that each revision to an
implementation plan submitted by a state shall be adopted by such state
after reasonable notice and public hearing.
    The Wyoming SIP revisions that EPA approves today do not interfere
with attainment of the NAAQS or any other applicable requirement of the
Act. The first revision (R-4) revises the WAQSR particulate matter
ambient standard to adopt the annual and 24-hour PM2.5
standards into the State rule. The second revision (R-18) makes the
State annual and 24-hour PM2.5 and Pb ambient standards
consistent with federal standards, but no more stringent than federal
standards. This revision also adds a section that simply consolidates
all adoption by reference for chapter 2 in one place. The revisions
were adopted after reasonable public notice, and after public hearings
held on February 17, 2000, and July 8, 2010, respectively. All
necessary State reviews and approvals have been secured. Therefore, CAA
section 110(l) requirements are satisfied.

V. Final Action

    EPA is approving SIP revisions that Wyoming submitted to EPA Region
8 on August 19, 2011. The Environmental Quality Council of the Wyoming
Department of Environmental Quality adopted revisions to Chapter 2,
``Ambient Standards,'' Section 2,''Ambient standards for particulate
matter,'' Section 10, ``Ambient standards for lead,'' and Section 12,
``Incorporation by reference,'' of the WAQSR as revisions to the SIP.
    EPA is publishing this rule without prior proposal because we view
this as a noncontroversial amendment and anticipate no adverse
comments. However, in the Proposed Rules section of today's Federal
Register publication, we are publishing a separate document that will
serve as the proposal to approve the SIP revision if adverse comments
are filed. This rule will be effective October 27, 2014 without further
notice unless we receive adverse comments by September 25, 2014. If we
receive adverse comments, we will publish a timely withdrawal in the
Federal Register informing the public that the rule will not take
effect. We will address all public comments in a subsequent final rule
based on the proposed rule. We will not institute a second comment
period on this action. Any parties interested in commenting must do so
at this time. Please note that if we receive adverse comment on an
amendment, paragraph, or section of this rule and if that provision may
be severed from the remainder of the rule, we may adopt as final those
provisions of the rule that are not the subject of an adverse comment.

VI. Statutory and Executive Orders Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and,
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the State, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. section 801 et seq, as added
by the Small Business Regulatory Enforcement Fairness Act of 1996,
generally provides that before a rule may take effect, the agency
promulgating the rule must submit a rule report, which includes a copy
of the rule, to each House of the Congress and to the Comptroller
General of the United States. EPA will submit a report containing this
rule and other required information to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States
prior to publication of the rule in the Federal Register. A major rule
cannot take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
section 804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by October 27, 2014. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. Parties with objections to this direct final rule are
encouraged to file a comment in response to the parallel notice of
proposed rulemaking for this action published in the proposed rules
section of today's Federal Register, rather than file an immediate
petition for judicial review of this direct final rule, so that EPA can
withdraw this direct final rule and address the comment in the proposed
rulemaking. This action may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organization compounds.

    Authority:  42 U.S.C. 7401 et seq.

    Dated: August 5, 2014.
Shaun L. McGrath,
Regional Administrator, Region 8.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority for citation for part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart ZZ--Wyoming

0
2. In Sec.  52.2620, the table in paragraph (c)(1) is amended under
Chapter 2 by revising the entries for Sections 2 and 10 and by adding
an entry for Section 12 in numerical order to read as follows:

Sec.  52.2620  Identification of plan.

* * * * *
    (c) * * *
    (1) * * *

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                                                    State adopted and    EPA approval date
    State citation           Title/subject           effective date       and citation \1\       Explanations
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
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                                                    Chapter 2
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Section 2............  Ambient standards for      2/18/2000, 7/8/2010   8/26/14, [Insert     ...................
                        particulate matter.        and 3/30/2000, 9/7/   Federal Register
                                                   2010.                 citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
Section 10...........  Ambient standards for      7/8/2010, 9/7/2010..  8/26/14, [Insert     ...................
                        lead.                                            Federal Register
                                                                         citation].
Section 12...........  Incorporation by           7/8/2010, 9/7/2010..  8/26/14, [Insert     ...................
                        reference.                                       Federal Register
                                                                         citation].

                                                  * * * * * * *
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\1\ In order to determine the EPA effective date for a specific provision that is listed in this table, consult
  the Federal Register cited in this column for that particular provision.

* * * * *
[FR Doc. 2014-20225 Filed 8-25-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 197 (Thursday, October 13, 2022)]
[Notices]
[Page 62098]
[FR Doc No: 2022-22248]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-10284-01-OMS]

Cross-Media Electronic Reporting: Authorized Program Revision
Approval, Idaho Department of Environmental Quality

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice announces the Environmental Protection Agency's
(EPA) approval of the Idaho Department of Environmental Quality (ID
DEQ) request to revise/modify certain of its EPA-authorized programs to
allow electronic reporting.

DATES: EPA approves the authorized program revisions/modifications as
of October 13, 2022.

FOR FURTHER INFORMATION CONTACT: Shirley M. Miller, U.S. Environmental
Protection Agency, Office of Information Management, Mail Stop 2824T,
1200 Pennsylvania Avenue NW, Washington, DC 20460,<PHONE_NUMBER>,
[email protected].

SUPPLEMENTARY INFORMATION: On October 13, 2005, the final Cross-Media
Electronic Reporting Rule (CROMERR) was published in the Federal
Register (70 FR 59848) and codified as part 3 of title 40 of the CFR.
CROMERR establishes electronic reporting as an acceptable regulatory
alternative to paper reporting and establishes requirements to assure
that electronic documents are as legally dependable as their paper
counterparts. Subpart D of CROMERR requires that state, tribal or local
government agencies that receive, or wish to begin receiving,
electronic reports under their EPA-authorized programs must apply to
EPA for a revision or modification of those programs and obtain EPA
approval. Subpart D provides standards for such approvals based on
consideration of the electronic document receiving systems that the
state, tribe, or local government will use to implement the electronic
reporting. Additionally, Sec.  3.1000(b) through (e) of 40 CFR part 3,
subpart D provides special procedures for program revisions and
modifications to allow electronic reporting, to be used at the option
of the state, tribe or local government in place of procedures
available under existing program-specific authorization regulations. An
application submitted under the subpart D procedures must show that the
state, tribe or local government has sufficient legal authority to
implement the electronic reporting components of the programs covered
by the application and will use electronic document receiving systems
that meet the applicable subpart D requirements.
    On May 16, 2022, the Idaho Department of Environmental Quality (ID
DEQ) submitted an application titled shared services integrated into
CDX system for revisions/modifications to its EPA-approved programs
under title 40 CFR to allow new electronic reporting. EPA reviewed ID
DEQ's request to revise/modify its EPA-authorized programs and, based
on this review, EPA determined that the application met the standards
for approval of authorized program revisions/modifications set out in
40 CFR part 3, subpart D. In accordance with 40 CFR 3.1000(d), this
notice of EPA's decision to approve ID DEQ's request to revise/modify
its following EPA-authorized programs to allow electronic reporting
under 40 CFR is being published in the Federal Register:

 Part 52: Approval and Promulgation of Implementation Plans
(SIP/Clean Air Act Title II) Reporting under 40 CFR 50 through 52

ID DEQ was notified of EPA's determination to approve its application
with respect to the authorized programs listed above.

    Dated: October 7, 2022.
Jennifer Campbell,
Director, Office of Information Management.
[FR Doc. 2022-22248 Filed 10-12-22; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 82, Number 80 (Thursday, April 27, 2017)]
[Notices]
[Pages 19412-19413]
[FR Doc No: 2017-08466]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80506; File No. SR-ICC-2017-003]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Designation of Longer Period for Commission Action on Proposed Rule
Change, Security-Based Swap Submission, or Advance Notice Relating to
ICC's End-of-Day Price Discovery Policies and Procedures

April 21, 2017.
    On February 16, 2017, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change (SR-ICC-2017-003)
to amend ICC's End-of-Day Price Discovery Policies and Procedures to
implement a new price submission process for Clearing Participants
(``CP''). The proposed rule change was published for comment in the
Federal Register on March 9, 2017.\3\ The Commission received no
comments regarding the proposed changes.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-80150 (March 3,
2017), 82 FR 13173 (March 9, 2017) (SR-ICC-2017-003) (``Notice'').
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    Section 19(b)(2) of the Act provides that within 45 days of the
publication of the notice of the filing or a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding, or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved.\4\
The 45th day from the publication of the Notice is April 23, 2017.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending the 45-day time period for Commission
action on the proposed rule change. ICC proposes to revise its End of
Day Price Discovery Policies and Procedures to implement a new Clearing
Participant price submission process to remove the intermediary agent
through which Clearing Participants currently submit required prices,
and replace it with a process through which Clearing Participants
submit prices directly to ICC. The Commission finds that it is
appropriate to designate a longer period

within which to take action on the proposed rule change so that it has
sufficient time to consider ICC's proposed rule change and the
associated operational risks.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act, extends the period by which the Commission shall either approve or
disapprove, or institute proceedings to determine whether to
disapprove, the proposed rule change (File No. SR-ICC-2017-003) to no
later than June 7, 2017.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08466 Filed 4-26-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 160 (Monday, August 23, 2021)]
[Notices]
[Pages 47169-47172]
[FR Doc No: 2021-17964]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92685; File No. SR-FINRA-2021-019]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Expiration Date of the Temporary
Amendments set Forth in SR-FINRA-2020-015 and SR-FINRA-2020-027

August 17, 2021.
    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 August 13, 2021, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by 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\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to extend the expiration date of the temporary
amendments set forth in SR-FINRA-2020-015 and SR-FINRA-2020-027 from
August 31, 2021, to December 31, 2021.\4\ The proposed rule change
would not make any changes to the text of FINRA rules.
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    \4\ If FINRA seeks to provide additional temporary relief from
the rule requirements identified in this proposed rule change beyond
December 31, 2021, FINRA will submit a separate rule filing to
further extend the temporary extension of time. The amended FINRA
rules will revert to their original form at the conclusion of the
temporary relief period and any extension thereof.
---------------------------------------------------------------------------

    The text of the proposed rule change is available on FINRA's
website at http://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA 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
    In response to the COVID-19 global health crisis and the
corresponding need to restrict in-person activities, FINRA filed
proposed rule changes, SR-FINRA-2020-015 and SR-FINRA-2020-027, which
respectively provide temporary relief from some timing, method of
service and other procedural requirements in FINRA rules and allow
FINRA's Office of Hearing Officers (``OHO'') and the National
Adjudicatory Council (``NAC'') to conduct hearings, on a temporary
basis, by video conference, if warranted by the current COVID-19-
related public health risks posed by an in-person hearing. In April
2021, FINRA filed a proposed rule change, SR-FINRA-2021-006, to extend
the expiration date of the temporary amendments in both SR-FINRA-2020-
015 and SR-FINRA-2020-027 from April 30, 2021, to August 31, 2021.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 91495 (April 7,
2021), 86 FR 19306 (April 13, 2021) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2021-006).
---------------------------------------------------------------------------

    While there are signs of improvement, much uncertainty remains for
the coming months. The emergence of the Delta variant, dissimilar
vaccination rates throughout the United States, and the uptick in
transmissions in many locations indicate that COVID-19 remains an
active and real public health concern.\6\ Based on its assessment of
current COVID-19 conditions and the lack of a clear timeframe for a
sustained and widespread abatement of COVID-19-related health concerns
and corresponding restrictions,\7\ FINRA has determined that there is a
continued need for temporary relief for several months beyond August
31, 2021. Accordingly, FINRA proposes to extend the expiration date of
the temporary rule amendments in SR-FINRA-2020-015 and SR-FINRA-2020-
027 from August 31, 2021, to December 31, 2021.
---------------------------------------------------------------------------

    \6\ For example, President Joe Biden on July 29, 2021, announced
several measures to increase the number of people vaccinated against
COVID-19 and to slow the spread of the Delta variant, including
strengthening safety protocols for federal government employees and
contractors. See https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/29/fact-sheet-president-biden-to-announce-new-actions-to-get-more-americans-vaccinated-and-slow-the-spread-of-the-delta-variant/.
    \7\ For instance, the Centers for Disease Control and Prevention
on July 27, 2021, began recommending that fully vaccinated people
wear a mask in public indoor settings in areas of substantial or
high transmission and noted that fully vaccinated people might
choose to wear a mask regardless of the level of transmission,
particularly if they are immunocompromised or at increased risk for
severe disease from COVID-19. See https://www.cdc.gov/coronavirus/2019-ncov/vaccines/fully-vaccinated-guidance.html. Also, several
cities, including Atlanta, Baltimore, Los Angeles, New Haven and San
Francisco, have recently reinstated their mask mandates.
---------------------------------------------------------------------------

i. SR-FINRA-2020-015
    As stated in its previous filings, FINRA proposed, and subsequently
extended, the changes set forth in SR-FINRA-2020-015 to temporarily
amend some timing, method of service and other procedural requirements
in FINRA rules during the period in which FINRA's operations are
impacted by the outbreak of COVID-19.\8\ Among other

things, the need for FINRA staff, with limited exceptions, to work
remotely and restrict in-person activities--consistent with the
recommendations of public health officials--have made it challenging to
meet some procedural requirements and perform some functions required
under FINRA rules. For example, working remotely makes it difficult to
send and receive hard copy documents and conduct in-person oral
arguments. The temporary amendments have addressed these concerns by
easing logistical and other issues and providing FINRA with needed
flexibility for its operations during the COVID-19 outbreak, allowing
FINRA to continue critical adjudicatory and review processes in a
reasonable and fair manner and meet its critical investor protection
goals, while also following best practices with respect to the health
and safety of its staff.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 88917 (May 20,
2020), 85 FR 31832 (May 27, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-015); Securities Exchange
Act Release No. 89055 (June 12, 2020), 85 FR 36928 (June 18, 2020)
(Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-
2020-017); Securities Exchange Act Release No. 89423 (July 29,
2020), 85 FR 47278 (August 4, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-022); Securities Exchange
Act Release No. 90619 (December 9, 2020), 85 FR 81250 (December 15,
2020) (Notice of Filing and Immediate Effectiveness of File No. SR-
FINRA-2020-042); supra note 5.
---------------------------------------------------------------------------

    FINRA staff, with limited exceptions, continue to work remotely to
protect their health and safety. As indicated in its previous filings,
FINRA has established a COVID-19 task force to develop a data-driven,
staged plan for FINRA staff to safely return to working in FINRA office
locations and resume other in-person activities. Based on its
assessment of current COVID-19 conditions, FINRA does not believe the
COVID-19-related health concerns necessitating this relief will
meaningfully subside by August 31, 2021, and therefore proposes to
extend the expiration date of the temporary rule amendments originally
set forth in SR-FINRA-2020-015 from August 31, 2021, to December 31,
2021.\9\
---------------------------------------------------------------------------

    \9\ See supra note 8 (outlining the filing history of SR-FINRA-
2020-015 and its prior extensions).
---------------------------------------------------------------------------

ii. SR-FINRA-2020-027
    The same public health concerns and restrictions, along with a
corresponding backlog of disciplinary cases,\10\ led FINRA to file, and
subsequently extend to August 31, 2021, SR-FINRA-2020-027 to
temporarily amend FINRA Rules 1015, 9261, 9524, and 9830 to grant OHO
and the NAC authority \11\ to conduct hearings in connection with
appeals of Membership Application Program decisions, disciplinary
actions, eligibility proceedings and temporary and permanent cease and
desist orders by video conference, if warranted by the COVID-19-related
public health risks posed by an in-person hearing.\12\
---------------------------------------------------------------------------

    \10\ For example, FINRA began temporarily postponing in-person
hearings as a result of the COVID-19 impacts on March 16, 2020.
    \11\ For OHO hearings under FINRA Rules 9261 and 9830, the
proposed rule change temporarily grants authority to the Chief or
Deputy Chief Hearing Officer to order that a hearing be conducted by
video conference. For NAC hearings under FINRA Rules 1015 and 9524,
this temporary authority is granted to the NAC or the relevant
Subcommittee.
    \12\ See Securities Exchange Act Release No. 89739 (September 2,
2020), 85 FR 55712 (September 9, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2020-027); Securities
Exchange Act Release No. 90619 (December 9, 2020), 85 FR 81250
(December 15, 2020) (Notice of Filing and Immediate Effectiveness of
File No. SR-FINRA-2020-042); supra note 5.
---------------------------------------------------------------------------

    As set forth in the previous filings, FINRA also relies on the
guidance of its health and safety consultant, in conjunction with
COVID-19 data and guidance issued by public health authorities, to
determine whether the current public health risks presented by an in-
person hearing may warrant a hearing by video conference.\13\ Based on
that guidance and data, FINRA does not believe the COVID-19-related
health concerns necessitating this relief will meaningfully subside by
August 31, 2021, and has determined that there will be a continued need
for this temporary relief for several months beyond that date.\14\
Accordingly, FINRA proposes to extend the expiration date of the
temporary rule amendments originally set forth in SR-FINRA-2020-027
from August 31, 2021, to December 31, 2021.\15\ The extension of these
temporary amendments allowing for specified OHO and NAC hearings to
proceed by video conference will allow FINRA's critical adjudicatory
functions to continue to operate effectively in these extraordinary
circumstances--enabling FINRA to fulfill its statutory obligations to
protect investors and maintain fair and orderly markets--while also
protecting the health and safety of hearing participants.\16\
---------------------------------------------------------------------------

    \13\ As noted in SR-FINRA-2020-027, the temporary proposed rule
change grants discretion to OHO and the NAC to order a video
conference hearing. In deciding whether to schedule a hearing by
video conference, OHO and the NAC may consider a variety of other
factors in addition to COVID-19 trends. In SR-FINRA-2020-027, FINRA
provided a non-exhaustive list of other factors OHO and the NAC may
take into consideration, including a hearing participant's
individual health concerns and access to the connectivity and
technology necessary to participate in a video conference hearing.
    \14\ FINRA notes that the proposed extension of the temporary
amendments does not mean a video conference hearing will be ordered
in every case. FINRA strives to hold in-person hearings when it is
safe to do so and had recently begun to hold such hearings at a
single location. FINRA held its first in-person hearing since the
temporary rule change was implemented in July 2021. A recent surge
in case numbers for the Delta variant of the COVID-19 virus caused
FINRA's outside health and safety consultant to recommend in early
August against in-person hearings. Accordingly, the Chief Hearing
Officer recently converted a hearing scheduled for mid-September
from in-person to video conference. In addition to creating a safe
environment in which an in-person hearing may be held, as mentioned
above, a number of other considerations inform whether any given
case will be held in-person or by video conference.
    \15\ See supra note 5.
    \16\ Since the temporary amendments were implemented, OHO and
the NAC have conducted several hearings by video conference. As of
July 21, 2021, OHO has conducted 10 disciplinary hearings by video
conference (decisions have been issued in seven of these cases) and
scheduled hearings in nine other disciplinary matters. The parties
have agreed to proceed by video conference for one of the hearings.
Also, as of July 21, 2021, the NAC, through the relevant
Subcommittee, has conducted 11 oral arguments by video conference in
connection with appeals of FINRA disciplinary proceedings pursuant
to FINRA Rule 9341(d), as temporarily amended. Furthermore, the NAC
has conducted via video conference a one-day evidentiary hearing in
a membership application proceeding pursuant to FINRA Rule 1015, as
temporarily amended.
---------------------------------------------------------------------------

    FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so FINRA can implement the proposed rule change
immediately.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\17\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change is also
consistent with Section 15A(b)(8) of the Act,\18\ which requires, among
other things, that FINRA rules provide a fair procedure for the
disciplining of members and persons associated with members.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78o-3(b)(6).
    \18\ 15 U.S.C. 78o-3(b)(8).
---------------------------------------------------------------------------

    The proposed rule change, which extends the expiration date of the
temporary amendments to FINRA rules set forth in SR-FINRA-2020-015,
will continue to provide FINRA, and in some cases another party to a
proceeding, temporary modifications to its procedural requirements in
order to allow FINRA to maintain fair processes and protect investors
while operating in a remote work environment and with corresponding
restrictions on its activities. It is in the public interest, and
consistent with the Act's purpose, for FINRA to operate pursuant to
this temporary relief. The temporary amendments allow FINRA to specify
filing and service methods, extend

certain time periods, and modify the format of oral argument for FINRA
disciplinary and eligibility proceedings and other review processes to
cope with the current pandemic conditions. In addition, extending this
temporary relief will further support FINRA's disciplinary and
eligibility proceedings and other review processes that serve a
critical role in providing investor protection and maintaining fair and
orderly markets.
    The proposed rule change, which also extends the expiration date of
the temporary amendments to FINRA rules set forth in SR-FINRA-2020-027,
will continue to aid FINRA's efforts to timely conduct hearings in
connection with its core adjudicatory functions. Given the current and
frequently changing COVID-19 conditions and the uncertainty around when
those conditions will see meaningful, widespread and sustained
improvement, without this relief allowing OHO and NAC hearings to
proceed by video conference, FINRA might be required to postpone some
or almost all hearings indefinitely. FINRA must be able to perform its
critical adjudicatory functions to fulfill its statutory obligations to
protect investors and maintain fair and orderly markets. As such, this
relief is essential to FINRA's ability to fulfill its statutory
obligations and allows hearing participants to avoid the serious COVID-
19-related health and safety risks associated with in-person hearings.
    Among other things, this relief will allow OHO to conduct temporary
cease and desist proceedings by video conference so that FINRA can take
immediate action to stop ongoing customer harm and will allow the NAC
to timely provide members, disqualified individuals and other
applicants an approval or denial of their applications. As set forth in
detail in the original filing, this temporary relief allowing OHO and
NAC hearings to proceed by video conference accounts for fair process
considerations and will continue to provide fair process while avoiding
the COVID-19-related public health risks for hearing participants.
Accordingly, the proposed rule change extending this temporary relief
is in the public interest and consistent with the Act's purpose.

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

    FINRA does not believe that the temporary proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As set forth in
SR-FINRA-2020-015 and SR-FINRA-2020-027, the proposed rule change is
intended solely to extend temporary relief necessitated by the
continued impacts of the COVID-19 outbreak and the related health and
safety risks of conducting in-person activities. FINRA believes that
the proposed rule change will prevent unnecessary impediments to
FINRA's operations, including its critical adjudicatory processes, and
its ability to fulfill its statutory obligations to protect investors
and maintain fair and orderly markets that would otherwise result if
the temporary amendments were to expire on August 31, 2021.

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

    Written comments were neither solicited nor received.

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

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

    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
pursuant to Rule 19b-4(f)(6)(iii), the Commission may designate a
shorter time if such action is consistent with the protection of
investors and the public interest. As FINRA requested in connection
with SR-FINRA-2020-015 and related extensions,\21\ FINRA has also asked
the Commission to waive the 30-day operative delay so that this
proposed rule change may become operative immediately upon filing.
---------------------------------------------------------------------------

    \21\ See SR-FINRA-2020-015, 85 FR at 31836. Although FINRA did
not request that the Commission waive the 30-day operative delay for
SR-FINRA-2020-027, FINRA did request that the Commission waive the
30-day operative delay for SR-FINRA-2020-042 and FINRA-2021-006,
which extended the expiration date of the temporary amendments
originally set forth in SR-FINRA-2020-027.
---------------------------------------------------------------------------

    FINRA has indicated that extending the relief provided originally
in SR-FINRA-2020-015 and SR-FINRA-2020-027 will continue to ease
logistical and other issues by providing FINRA with needed flexibility
for its operations during the COVID-19 outbreak. Importantly, extending
the relief provided in these prior rule changes immediately upon filing
and without a 30-day operative delay will allow FINRA to continue
critical adjudicatory and review processes in a reasonable and fair
manner and meet its critical investor protection goals, while also
following best practices with respect to the health and safety of its
employees.\22\ The Commission also notes that this proposal, like SR-
FINRA-2020-015 and SR-FINRA-2020-027, provides only temporary relief
during the period in which FINRA's operations are impacted by COVID-19.
As proposed, the changes would be in place through December 31,
2021.\23\ FINRA also noted in both SR-FINRA-2020-015 and SR-FINRA-2020-
027 that the amended rules will revert back to their original state at
the conclusion of the temporary relief period and, if applicable, any
extension thereof.\24\ For these reasons, the Commission believes that
waiver of the 30-day operative delay for this proposal is consistent
with the protection of investors and the public interest. Accordingly,
the Commission hereby waives the 30-day operative delay and designates
the proposal operative upon filing.\25\
---------------------------------------------------------------------------

    \22\ See supra Item II.A.1; see also SR-FINRA-2020-015, 85 FR at
31833.
    \23\ As noted above, see supra note 4, FINRA stated that if it
requires temporary relief from the rule requirements identified in
this proposal beyond December 31, 2021, it may submit a separate
rule filing to extend the effectiveness of the temporary relief
under these rules.
    \24\ See SR-FINRA-2020-015, 85 FR at 31833; see also SR-FINRA-
2020-027, 85 FR at 55712.
    \25\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act.

Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2021-019 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2021-019. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of FINRA. All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-FINRA-2021-019 and should be submitted
on or before September 13, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill Peterson,
Assistant Secretary.
[FR Doc. 2021-17964 Filed 8-20-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 164 (Friday, August 27, 2021)]
[Notices]
[Pages 48272-48274]
[FR Doc No: 2021-18457]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92721; File No. SR-CboeBZX-2021-039]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change To List and Trade Shares of the Wise Origin
Bitcoin Trust Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares

August 23, 2021.
    On May 10, 2021, Cboe BZX Exchange, Inc. (``BZX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
list and trade shares (``Shares'') of the Wise Origin Bitcoin Trust
(``Trust'') under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares.
The proposed rule change was published for comment in the Federal
Register on June 1, 2021.\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 91994 (May 25,
2021), 86 FR 29321 (June 1, 2021) (``Notice''). Comments on the
proposed rule change can be found at: https://www.sec.gov/comments/sr-cboebzx-2021-039/srcboebzx2021039.htm.
---------------------------------------------------------------------------

    On July 13, 2021, pursuant to Section 19(b)(2) of the Act,\4\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ This order institutes proceedings under Section 19(b)(2)(B)
of the Act \6\ to determine whether to approve or disapprove the
proposed rule change.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 92388 (July 13,
2021), 86 FR 38163 (July 19, 2021). The Commission designated August
30, 2021, as the date by which it should approve, disapprove, or
institute proceedings to determine whether to disapprove the
proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

I. Summary of the Proposal

    As described in more detail in the Notice,\7\ the Exchange proposes
to list and trade the Shares of the Trust under BZX Rule 14.11(e)(4),
which governs the listing and trading of Commodity-Based Trust Shares
on the Exchange.
---------------------------------------------------------------------------

    \7\ See Notice, supra note 3.
---------------------------------------------------------------------------

    The investment objective of the Trust would be to seek to track the
performance of bitcoin, as measured by the Fidelity Bitcoin Index PR
(``Index''), adjusted for the Trust's expenses and other
liabilities.\8\ Each Share will represent a fractional undivided
beneficial interest in and ownership of the Trust. The Trust's assets
will consist of bitcoin held by the Custodian on behalf of the Trust.
The Trust generally does not intend to hold cash or cash equivalents.
However, there may be situations where the Trust will

unexpectedly hold cash on a temporary basis.\9\
---------------------------------------------------------------------------

    \8\ FD Funds Management LLC (``Sponsor'') is the sponsor of the
Trust, Delaware Trust Company is the trustee, and Fidelity Service
Company, Inc. will be the administrator (``Administrator''). A
third-party transfer agent will facilitate the issuance and
redemption of Shares of the Trust, respond to correspondence by
Trust shareholders and others relating to its duties, maintain
shareholder accounts, and make periodic reports to the Trust. An
affiliate of the Sponsor, Fidelity Distributors Corporation, will be
the marketing agent in connection with the creation and redemption
of ``baskets'' of Shares, and the Sponsor will provide assistance in
the marketing of the Shares. Fidelity Digital Asset Services, LLC
will serve as the Trust's custodian (``Custodian''). The Index
methodology was developed by Fidelity Product Services, LLC and is
administered by the Fidelity Index Committee. Coin Metrics, Inc. is
the third-party calculation agent for the Index. The Sponsor's
affiliates have an ownership interest in Coin Metrics, Inc. See id.
at 29321, 29327 n.57, 29328-29.
    \9\ See id. at 29328.
---------------------------------------------------------------------------

    In seeking to achieve its investment objective, the Trust will hold
bitcoin and will value its Shares daily as of 4:00 p.m. E.T. using the
same methodology used to calculate the Index. The Index is designed to
reflect the performance of bitcoin in U.S. dollars. The Index is
calculated using bitcoin price feeds from eligible bitcoin spot
platforms. The current platform composition of the Index is Bitstamp,
Coinbase, Gemini, itBit and Kraken. The Index market value is the
volume-weighted median price of bitcoin in U.S. dollars over the
previous five minutes, which is calculated by (1) ordering all
individual transactions on eligible spot platforms over the previous
five minutes by price, and then (2) selecting the price associated with
the 50th percentile of total volume.\10\
---------------------------------------------------------------------------

    \10\ See id. at 29329.
---------------------------------------------------------------------------

    The Net Asset Value (``NAV'') of the Trust means the total assets
of the Trust including, but not limited to, all bitcoin and cash, if
any, less total liabilities of the Trust, each determined on the basis
of generally accepted accounting principles. The NAV of the Trust is
calculated by taking the fair market value of its total assets based on
the volume-weighted median price of bitcoin used for the calculation of
the Index, subtracting any liabilities (which include accrued
expenses), and dividing that total by the total number of outstanding
Shares. The Administrator calculates the NAV of the Trust once each
Exchange trading day. The NAV for a normal trading day will be released
after 4:00 p.m. E.T.\11\
---------------------------------------------------------------------------

    \11\ See id. at 29329-30.
---------------------------------------------------------------------------

    The Trust will provide information regarding the Trust's bitcoin
holdings, as well as an Intraday Indicative Value (``IIV'') per Share
updated every 15 seconds, as calculated by the Exchange or a third-
party financial data provider during the Exchange's Regular Trading
Hours (9:30 a.m. to 4:00 p.m. E.T.). The IIV will be calculated by
using the prior day's closing NAV per Share as a base and updating that
value during Regular Trading Hours to reflect changes in the value of
the Trust's bitcoin holdings during the trading day.\12\
---------------------------------------------------------------------------

    \12\ See id. at 29329.
---------------------------------------------------------------------------

    When the Trust sells or redeems its Shares, it will do so in ``in-
kind'' transactions in blocks of Shares. Authorized participants will
deliver, or facilitate the delivery of, bitcoin to the Trust's account
with the Custodian in exchange for Shares when they purchase Shares,
and the Trust, through the Custodian, will deliver bitcoin to such
authorized participants when they redeem Shares with the Trust.\13\
---------------------------------------------------------------------------

    \13\ See id. at 29328-29.
---------------------------------------------------------------------------

II. Proceedings To Determine Whether To Approve or Disapprove SR-
CboeBZX-2021-039 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \14\ to determine whether the proposed rule
change should be approved or disapproved. Institution of proceedings is
appropriate at this time in view of the legal and policy issues raised
by the proposed rule change, as discussed below. Institution of
proceedings does not indicate that the Commission has reached any
conclusions with respect to any of the issues involved. Rather, as
described below, the Commission seeks and encourages interested persons
to provide comments on the proposed rule change.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\15\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, which requires, among other things, that the rules of a
national securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices'' and ``to protect investors and the
public interest.'' \16\
---------------------------------------------------------------------------

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

    The Commission asks that commenters address the sufficiency of the
Exchange's statements in support of the proposal, which are set forth
in the Notice,\17\ in addition to any other comments they may wish to
submit about the proposed rule change. In particular, the Commission
seeks comment on the following questions and asks commenters to submit
data where appropriate to support their views:
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    \17\ See Notice, supra note 3.
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    1. What are commenters' views on whether the proposed Trust and
Shares would be susceptible to manipulation? What are commenters' views
generally on whether the Exchange's proposal is designed to prevent
fraudulent and manipulative acts and practices? What are commenters'
views generally with respect to the liquidity and transparency of the
bitcoin markets, the bitcoin markets' susceptibility to manipulation,
and thus the suitability of bitcoin as an underlying asset for an
exchange-traded product?
    2. What are commenters' views of the Exchange's assertion that the
regulatory and financial landscapes relating to bitcoin and other
digital assets have changed significantly since 2016? \18\ Are the
changes that the Exchange identifies sufficient to support the
determination that the proposal to list and trade the Shares is
designed to protect investors and the public interest and is consistent
with the other applicable requirements of Section 6(b)(5) of the Act?
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    \18\ See id. at 29322-23.
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    3. The Exchange states that ``approving this proposal . . . [would]
allow U.S. investors with access to bitcoin in a regulated and
transparent exchange-traded vehicle that would act to reduce risk''
associated with exposure through other means.\19\ Further, the Exchange
asserts that ``the manipulation concerns previously articulated by the
Commission are sufficiently mitigated.'' \20\ What are commenters'
views regarding such assertions?
---------------------------------------------------------------------------

    \19\ See id. at 29324.
    \20\ See id. at 29327.
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    4. According to the Exchange, ``[n]early every measurable metric
related to [Chicago Mercantile Exchange's] Bitcoin Futures has trended
consistently up since launch and/or accelerated upward in the past
year.'' \21\ Based on data provided and the academic research cited by
the Exchange, do commenters agree that the Chicago Mercantile Exchange
(``CME'')'s bitcoin futures market now represents a regulated market of
significant size? \22\ What are commenters' views on whether there is a
reasonable likelihood that a person attempting to manipulate the Shares
would also have to trade on CME to manipulate the Shares? What are
commenters' views on the Exchange's assertion that the combination of
(a) CME bitcoin futures leading price discovery; (b) the overall size
of the bitcoin market; and (c) the ability for market participants to
buy or sell large amounts of bitcoin without significant market impact
helps to prevent the Shares from becoming the predominant force on
pricing in either the bitcoin spot or CME bitcoin futures markets? \23\
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    \21\ See id. at 29325.
    \22\ See id. at 29322.
    \23\ See id. at 29332.
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    5. What are commenters' views on the Exchange's statement,
generally, that bitcoin is resistant to price manipulation and that
other means to prevent fraudulent and manipulative acts and practices
exist to justify dispensing with the requisite

surveillance sharing agreement with a regulated market of significant
size related to bitcoin? \24\ What are commenters' views on the
Exchange's assertion in support of such statement that significant
liquidity in the spot market and the impact of market orders on the
overall price of bitcoin mean that attempting to move the price of
bitcoin is costly? \25\ What are commenters' views on the assertion
that offering only in-kind creations and redemptions provides unique
protections against potential attempts to manipulate the Shares and
that the price the Sponsor uses to value the Trust's bitcoin ``is not
particularly important''? \26\
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    \24\ See id. at 29327 n.51.
    \25\ See id. at 29328.
    \26\ See id.
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III. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) or any other provision of the Act, and
the rules and regulations thereunder. Although there do not appear to
be any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\27\
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    \27\ Section 19(b)(2) of the Act, as amended by the Securities
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
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    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by September 17, 2021. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
October 1, 2021.
    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-CboeBZX-2021-039 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeBZX-2021-039. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBZX-2021-039 and should be submitted
by September 17, 2021. Rebuttal comments should be submitted by October
1, 2021.
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    \28\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-18457 Filed 8-26-21; 8:45 am]
BILLING CODE 8011-01-P