[Federal Register Volume 81, Number 182 (Tuesday, September 20, 2016)]
[Notices]
[Pages 64560-64563]
[FR Doc No: 2016-22624]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78847; File No. SR-BatsBZX-2016-34]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing of Amendment No. 1, and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendments No. 1 and No. 2, to BZX
Rule 14.1(i), Managed Fund Shares, To List and Trade Shares of the
ProShares Crude Oil Strategy ETF

September 15, 2016.

I. Introduction

    On July 1, 2016, Bats BZX Exchange, Inc. (``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule
change to list and trade shares (``Shares'') of the ProShares K-1 Free
Crude Oil Strategy ETF (``Fund''), a series of ProShares Trust
(``Trust''), under Rule 14.11(i) (``Managed Fund Shares''). The
proposed rule change was published for comment in the Federal Register
on July 21, 2016.\3\ The Commission received no comments on the
proposed rule change. On August 19, 2016, the Exchange filed Amendment
No. 1 to the proposed rule change, which amended and replaced the
original proposal in its entirety.\4\ On August 23, 2016, pursuant to
Section 19(b)(2) of the Exchange Act,\5\ 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.\6\ On
September 15, 2016, the Exchange filed Amendment No. 2 to the proposed
rule change.\7\ No comments have been received regarding the proposed
rule change. The Commission is publishing this notice to solicit
comments on Amendment No. 1 from interested persons, and is approving
the proposed rule change, as modified by Amendments No. 1 and No. 2, on
an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 78346 (July 15,
2016), 81 FR 47475.
    \4\ In Amendment No. 1, the Exchange clarified certain details
regarding the holdings of the Fund, clarified a point regarding
surveillance over futures contracts held by the Fund, and added
details about the Fund.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 78643, 81 FR 59253
(August 29, 2016). The Commission designated October 19, 2016, as
the date by which the Commission shall either approve or disapprove,
or institute proceedings to determine whether to disapprove, the
proposed rule change.
    \7\ In Amendment No. 2, the Exchange represented that: (1) All
statements and representations made in the filing regarding the
description of the portfolio, limitations on portfolio holdings or
reference assets, or the applicability of Exchange rules and
surveillance procedures constitute continued listing requirements
for listing the Shares on the Exchange; (2) the issuer has
represented to the Exchange that it will advise the Exchange of any
failure by the Fund to comply with the continued listing
requirements; (3) pursuant to its obligations under Section 19(g)(1)
of the Exchange Act, the Exchange will surveil for compliance with
the continued listing requirements; and (4) if the Fund is not in
compliance with the applicable listing requirements, the Exchange
will commence delisting procedures under BZX Rule 14.12. Amendments
No. 1 and No. 2 are available at: https://www.sec.gov/comments/sr-batsbzx-2016-34/batsbzx201634.shtml. Because Amendment No. 2 does
not materially alter the substance of the proposed rule change or
raise unique or novel regulatory issues, it is not subject to notice
and comment.
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II. The Exchange's Description of the Proposed Rule Change 8
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    \8\ The Commission notes that additional information regarding
the Trust, the Fund, its investments, and the Shares, including
investment strategies, risks, creation and redemption procedures,
fees, portfolio holdings disclosure policies, calculation of net
asset value (``NAV''), distributions, and taxes, among other things,
can be found in the Amendment No. 1 and the Registration Statement,
as applicable. See Amendment No. 1, supra note 4, and Registration
Statement, infra note 10.
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    The Exchange proposes to list and trade the Shares under BZX Rule
14.11(i), which governs the listing and trading of Managed Fund Shares
on the Exchange.\9\ The Fund will be an actively managed fund that
seeks to provide exposure to the West Texas Intermediate (``WTI'')
crude oil futures markets. The Fund's strategy seeks to improve
performance over index based strategies by actively managing the
rolling of WTI crude oil futures contracts.
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    \9\ The Commission approved BZX Rule 14.11(i) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
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    The Shares will be offered by the Trust. According to the Exchange,
the Trust is registered with the Commission as an open-end investment
company.\10\ ProShare Advisors LLC is the investment adviser
(``Adviser'') \11\ to the

Fund and to the Subsidiary.\12\ JPMorgan Chase Bank, National
Association is the administrator, custodian, fund account agent, index
receipt agent, and transfer agent for the Trust. SEI Investments
Distribution Co. serves as the distributor for the Trust.
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    \10\ The Exchange states that the Trust has filed a registration
statement on behalf of the Fund with the Commission. See
Registration Statement on Form N-1A for the Trust, dated May 3, 2016
(File Nos. 333-89822 and 811-21114) (``Registration Statement'').
The Exchange states that the Commission has issued an order granting
certain exemptive relief to the Trust under the Investment Company
Act of 1940 (``1940 Act''). See Investment Company Act Release No.
30562 (June 18, 2013) (File No. 812-14041).
    \11\ The Exchange states that the Adviser has registered as a
Commodity Pool Operator and will become a member of the National
Futures Association (``NFA''). The Exchange also states that the
Fund and its wholly-owned subsidiary (``Subsidiary'') will be
subject to regulation by the Commodity Futures Trading Commission
and NFA, as well as to additional disclosure, reporting, and
recordkeeping rules imposed upon commodity pool operators.
    \12\ The Exchange states that the Adviser is not a registered
broker-dealer, but is currently affiliated with a broker-dealer,
and, in the future may be affiliated with other broker-dealers. The
Adviser has implemented and will maintain a fire wall with respect
to its broker-dealer affiliate regarding access to information
concerning the composition and/or changes to the Fund's portfolio.
The Adviser personnel who make decisions regarding the Fund's
portfolio are subject to procedures designed to prevent the use and
dissemination of material nonpublic information regarding the Fund's
portfolio. In the event that (a) the Adviser becomes a broker-dealer
or newly affiliated with a broker-dealer, or (b) any new adviser or
sub-adviser is a broker-dealer or becomes affiliated with a broker-
dealer, it will implement a fire wall with respect to its relevant
personnel or such broker-dealer affiliate, as applicable, regarding
access to information concerning the composition and/or changes to
the portfolio, and will be subject to procedures designed to prevent
the use and dissemination of material non-public information
regarding such portfolio.
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    According to the Exchange, the Fund includes only those WTI crude
oil contracts traded on the New York Mercantile Exchange and ICE
Futures Europe (``WTI Crude Oil Futures''). The Fund's strategy seeks
to improve performance over index based strategies by actively managing
the rolling of WTI Crude Oil Futures (e.g., selling a futures contract
as it nears its expiration date and replacing it with a new futures
contract that has a later expiration date). The Fund generally selects
between front, second, and third month WTI Crude Oil Futures, based on
an analysis of the liquidity and cost surrounding such positions.
    The Fund generally will not invest directly in WTI Crude Oil
Futures. The Fund expects to gain exposure to these investments by
investing a portion of its assets in the Subsidiary.\13\ The Fund will
generally invest up to 25% of its total assets in the Subsidiary and,
through such investment, generally remain fully exposed to WTI Crude
Oil Futures, even during times of adverse market conditions. To achieve
its investment objective, the Fund will, under Normal Market
Conditions,\14\ invest in: (i) WTI Crude Oil Futures; and (ii) Cash
Assets (which are used to collateralize the WTI Crude Oil Futures),
which will be held in cash or cash equivalents such as U.S. Treasury
securities or other high credit quality short-term fixed-income or
similar securities (including US agency securities, shares of money
market funds, certain variable rate-demand notes, and repurchase
agreements collateralized by government securities).
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    \13\ The Subsidiary is not registered under the 1940 Act and is
not directly subject to its investor protections, except as noted in
the Registration Statement. However, the Subsidiary is wholly-owned
and controlled by the Fund and is advised by the Adviser. Therefore,
because of the Fund's ownership and control of the Subsidiary, the
Subsidiary would not take action contrary to the interests of the
Fund or its shareholders. The Fund's Board of Trustees has oversight
responsibility for the investment activities of the Fund, including
its expected investment in the Subsidiary, and the Fund's role as
the sole shareholder of the Subsidiary. The Adviser receives no
additional compensation for managing the assets of the Subsidiary.
The Subsidiary will also enter into separate contracts for the
provision of custody, transfer agency, and accounting agent services
with the same or with affiliates of the same service providers that
provide those services to the Fund.
    \14\ As defined in Rule 14.11(i)(3)(E), the term ``Normal Market
Conditions'' includes, but is not limited to, the absence of trading
halts in the applicable financial markets generally; operational
issues causing dissemination of inaccurate market information or
system failures; or force majeure type events such as natural or
man-made disaster, act of God, armed conflict, act of terrorism,
riot or labor disruption, or any similar intervening circumstance.
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    The Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.\15\
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    \15\ 26 U.S.C. 851.
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III. Discussion and Commission's Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Exchange
Act and the rules and regulations thereunder applicable to a national
securities exchange.\16\ In particular, the Commission finds that the
proposed rule change, as modified by Amendments No. 1 and No. 2, is
consistent with Section 6(b)(5) of the Exchange Act,\17\ which
requires, among other things, that the Exchange's rules be designed to
prevent fraudulent and manipulative acts and practices, 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.
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    \16\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \17\ 15 U.S.C. 78f(b)(5).
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    The Commission also finds that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Exchange Act,\18\ which sets forth Congress's finding that it is in
the public interest and appropriate for the protection of investors and
the maintenance of fair and orderly markets to assure the availability
to brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities.
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    \18\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    According to the Exchange, quotation and last sale information for
the Shares will be available on the facilities of the Consolidated Tape
Association (``CTA''), and the previous day's closing price and trading
volume information for the Shares will be generally available daily in
the print and online financial press. Also, daily trading volume
information for the Fund will be available in the financial section of
newspapers, through subscription services such as Bloomberg, Thomson
Reuters, and International Data Corporation, which can be accessed by
authorized participants and other investors, as well as through other
electronic services, including major public Web sites. Additionally,
information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services.
    In addition, the Intraday Indicative Value \19\ (as defined in BZX
Rule 14.11(i)(3)(C)) will be updated and widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Exchange's Regular Trading Hours.\20\ On each business day, before
commencement of trading in the Shares during Regular Trading Hours on
the Exchange, the Fund will disclose on its Web site the identities and
quantities of the portfolio WTI Crude Oil Futures and other assets
(``Disclosed Portfolio'') \21\ that will form

the basis for the Fund's calculation of NAV at the end of the business
day. The Web site for the Fund will also include a form of the
prospectus for the Fund and additional data relating to NAV and other
applicable quantitative information.
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    \19\ According to the Exchange, the Intraday Indicative Value
will be based upon the current value for the components of the
Disclosed Portfolio (as defined below). The Exchange states that
quotations of certain of the Fund's holdings may not be updated for
purposes of calculating Intraday Indicative Value during U.S.
trading hours where the market on which the underlying asset is
traded settles prior to the end of the Exchange's Regular Trading
Hours. The Exchange's Regular Trading Hours are 9:30 a.m. to 4:00
p.m. Eastern Time.
    \20\ The Exchange notes that several major market data vendors
display or make widely available Intraday Indicative Values
published via the CTA or other data feeds.
    \21\ As defined in BZX Rule 14.11(i)(3)(B), the Disclosed
Portfolio will include for each portfolio holding of the Fund and
the Subsidiary, as applicable: Ticker symbol or other identifier, a
description of the holding, identity of the asset upon which the
derivative is based, the quantity of each security or other asset
held as measured by select metrics, maturity date, coupon rate,
effective date, market value, and percentage weight of the holding
in the portfolio. The Web site and information will be publicly
available at no charge.
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    Intraday price quotations on cash equivalents of the type held by
the Fund, with the exception of money market mutual funds, are
available from major broker-dealer firms and from third parties, which
may provide prices free with a time delay or ``live'' with a paid fee.
For WTI Crude Oil Futures, such intraday information is available
directly from the applicable listing exchange. Price information for
money market fund shares will be available through issuer Web sites and
publicly available quotation services such as Bloomberg, Markit, and
Thomson Reuters.
    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Exchange will obtain a representation from the issuer of
the Shares that the NAV will be calculated daily and that the NAV and
the Disclosed Portfolio will be made available to all market
participants at the same time. Further, trading in the Shares will be
subject to BZX Rules 11.18 and 14.11(i)(4)(B)(iv), which set forth
circumstances under which trading in Shares of the Fund may be halted.
Trading may be halted because of market conditions or for reasons that,
in the view of the Exchange, make trading in the Shares inadvisable.
These may include: (1) The extent to which trading is not occurring in
the WTI Crude Oil Futures and other assets composing the Disclosed
Portfolio of the Fund; or (2) whether other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.
    The Reporting Authority that provides the Disclosed Portfolio must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the actual components of the portfolio.\22\ The Exchange
represents that it prohibits the distribution of material, non-public
information by its employees. The Exchange also states that the Adviser
is not a registered broker-dealer, but is affiliated with a broker-
dealer and has implemented a ``fire wall'' with respect to such broker-
dealer regarding access to information concerning the composition and/
or changes to the Fund's portfolio.\23\
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    \22\ See BZX Rule 14.11(i)(4)(B)(ii)(b).
    \23\ The Exchange represents that an investment adviser to an
open-end fund is required to be registered under the Investment
Advisers Act of 1940.
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    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. The Exchange represents that
trading of the Shares through the Exchange will be subject to the
Exchange's surveillance procedures for derivative products, including
Managed Fund Shares, and that these surveillance procedures are
adequate to properly monitor the trading of the Shares on the Exchange
during all trading sessions and to deter and detect violations of
Exchange rules and the applicable federal securities laws.
    The Exchange represents that all statements and representations
made in the filing regarding (a) the description of the portfolio, (b)
limitations on portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures constitute
continued listing requirements for listing the Shares on the
Exchange.\24\ In addition, the issuer has represented to the Exchange
that it will advise the Exchange of any failure by the Fund to comply
with the continued listing requirements, and that, pursuant to its
obligations under Section 19(g)(1) of the Exchange Act, the Exchange
will surveil for compliance with the continued listing requirements. If
the Fund is not in compliance with the applicable listing requirements,
the Exchange will commence delisting procedures under BZX Rule
14.12.\25\
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    \24\ See Amendment No. 2, supra note 7.
    \25\ See id.
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    The Commission notes that the Fund and the Shares must comply with
the requirements of BZX Rule 14.11(i) to be initially and continuously
listed and traded on the Exchange. The Exchange represents that it
deems the Shares to be equity securities, thus rendering trading in the
Shares subject to the Exchange's existing rules governing the trading
of equity securities. In support of this proposal, the Exchange has
made the following representations:
    (1) The Shares will be subject to BZX Rule 14.11(i), which sets
forth the initial and continued listing criteria applicable to Managed
Fund Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.\26\
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    \26\ See Amendment No. 1, supra note 4, at 19.
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    (3) The Exchange may obtain information regarding trading in the
Shares and the underlying futures via the Intermarket Surveillance
Group (``ISG'') from other exchanges who are members or affiliate
members of the ISG or with which the Exchange has entered into a
comprehensive surveillance sharing agreement. In addition, the Exchange
is able to access, as needed, trade information for certain fixed
income instruments reported to FINRA's Trade Reporting and Compliance
Engine.\27\
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    \27\ See id. at 20.
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    (4) All of the futures contracts in the Disclosed Portfolio for the
Fund will trade on markets that are a member or affiliate member of ISG
or on markets with which the Exchange has in place a comprehensive
surveillance sharing agreement.\28\
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    \28\ See id. at 20, n.17.
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    (5) Prior to the commencement of trading, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Circular will discuss the following: (a) The procedures for
purchases and redemptions of Shares in Creation Units (and that Shares
are not individually redeemable); (b) Exchange Rule 3.7, which imposes
suitability obligations on Exchange members with respect to
recommending transactions in the Shares to customers; (c) how
information regarding the Intraday Indicative Value is disseminated;
(d) the risks involved in trading the Shares during the Pre-Opening and
After Hours Trading Sessions when an updated Intraday Indicative Value
will not be calculated or publicly disseminated; (e) the requirement
that members deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (f) trading information.
    (6) For initial and continued listing, the Fund must be in
compliance with Rule 10A-3 under the Exchange Act.\29\
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    \29\ See 17 CFR 240.10A-3.
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    (7) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment) deemed
illiquid by the Adviser under the 1940 Act. The Fund will monitor its
portfolio liquidity on an ongoing basis to determine whether, in light
of current circumstances, an adequate level of liquidity is being
maintained, and will

consider taking appropriate steps to maintain adequate liquidity if,
through a change in values, net assets, or other circumstances, more
than 15% of the Fund's net assets are held in illiquid assets.
    (8) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in the proposed
rule change, as modified by Amendments No. 1 and No. 2. For the
foregoing reasons, the Commission finds that the proposed rule change,
as modified by Amendments No. 1 and No. 2, is consistent with Section
6(b)(5) of the Exchange Act \30\ and the rules and regulations
thereunder applicable to a national securities exchange.
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    \30\ 15 U.S.C. 78f(b)(5).
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IV. Solicitation of Comments on Amendment No. 1

    Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 1 is consistent with the
Exchange 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-BatsBZX-2016-34 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-BatsBZX-2016-34. 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-BatsBZX-2016-34 and should
be submitted on or before October 11, 2016.

V. Accelerated Approval of Proposed Rule Change as Modified by
Amendments No. 1 and No. 2

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendments No. 1 and No. 2, prior to the
thirtieth day after the date of publication of notice of the filing of
Amendment No. 1 in the Federal Register. Amendment No. 1 supplements
the proposed rule change by clarifying the Fund's holdings,
surveillance, and general Fund details. Accordingly, the Commission
finds good cause, pursuant to Section 19(b)(2) of the Exchange Act,\31\
to approve the proposed rule change, as modified by Amendments No. 1
and No. 2, on an accelerated basis.
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    \31\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\32\ that the proposed rule change (SR-BatsBZX-2016-34),
as modified by Amendments No. 1 and No. 2, be, and it hereby is,
approved on an accelerated basis.
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    \32\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-22624 Filed 9-19-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Page 28295]
[FR Doc No: 2018-12982]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

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

Extension:
    Exchange Act Rules 13n-1--13n-12; Form SDR, SEC File No. 270-
629, OMB Control No. 3235-0719

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved collection of information provided for in Rules
13n-1 through 13n-12 (17 CFR 240.13n-1 through 240.13n-12) and Form SDR
(``Rules''), under the Securities Exchange Act of 1934 (15 U.S.C.
78m(n)(3) et seq.).
    Under the Rules, security-based swap data repositories (``SDRs'')
are required to register with the Commission by filing a completed Form
SDR (the filing of a completed Form SDR also constitutes an application
for registration as a securities information processor (``SIP'')). SDRs
are also required to abide by certain minimum standards set out in the
Rules, including a requirement to update Form SDR, abide by certain
duties and core principles, maintain data in accordance with the rules,
keep systems in accordance with the Rules, keep records, provide
reports to the Commission, maintain the privacy of security-based swaps
(``SBSs'') data, make certain disclosures, and designate a Chief
Compliance Officer. In addition, there are a number of collections of
information contained in the Rules. The information collected pursuant
to the Rules is necessary to carry out the mandates of the Dodd-Frank
Act and help ensure an orderly and transparent market for SBSs.
    The Commission staff estimates that it will take an SDR
approximately 481 hours to complete the initial Form SDR and any
amendments thereto. This burden is composed of a one-time reporting
burden that reflects the applicant's staff time (i.e. internal labor
costs) to prepare and submit the Form to the Commission and includes
the burden of responding to additional provisions incorporated from
Form SIP and finally includes responding to the revised disclosure of
business affiliations burden. Assuming a maximum of ten SDRs, the
aggregate one-time estimated dollar cost to complete Form SDR and any
amendments thereto will be $793,840 ((Compliance Attorney at $334 per
hour for 180 hours) + (Compliance Clerk at $64 per hour for 301 hours)
x (10 registrants)) and the aggregate ongoing cost per year will be
$55,440 to comply with the rule.
    The Commission staff estimates that the average initial paperwork
cost of filing a Form SDR to withdraw from registration will be 12
hours per SDR with an estimated dollar cost of $4,008 to comply with
the rule. The Commission estimates that an SDR will assign these
responsibilities to a Compliance Attorney, calculated as follows:
(Compliance Attorney at $334 per hour for 12 hours) x (1 SDR
withdrawing) = $4,008.
    In addition, the Commission staff estimates that the average
initial paperwork cost for each non-resident SDR to comply with Rule
13n-1(f) will be 1 hour and $900 per SDR. Assuming a maximum of three
non-resident SDRs, the aggregate one-time estimated dollar cost to
comply with the rule will be $3,840, calculated as follows: ($900 for
outside legal services + (Attorney at $380 per for 1 hour)) x (3 non-
resident registrants). Finally, the Commission believes that the costs
of filing Form SDR in a tagged data format beyond the costs of
collecting the required information will be minimal.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
    The public may view background documentation for this information
collection at the following website: www.reginfo.gov. Comments should
be directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to:
[email protected]; and (ii) Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington, DC 20549, or by sending an email
to: [email protected]. Comments must be submitted to OMB within 30
days of this notice.

    Dated: June 13, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12982 Filed 6-15-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 189 (Thursday, September 29, 2011)]
[Notices]
[Pages 60569-60572]
[FR Doc No: 2011-25073]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65387; File No. SR-BX-2011-034]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order
Approving Proposed Rule Change Amending Chapter V, Section 31 of the
Rules of the Boston Options Exchange Group, LLC To Establish
Facilitation and Solicitation Auction Mechanisms

September 23, 2011.

I. Introduction

    On June 17, 2011, NASDAQ OMX BX, Inc. (``BX'' 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
amend Chapter V (Doing Business on BOX), Section 31 (Block Trading) of
the Rules of the Boston Options Exchange Group, LLC (``BOX''), to
establish facilitation and solicitation auction mechanisms. The
proposed rule change was published for comment in the Federal Register
on June 29, 2011.\3\ The Commission received no comments on the
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 64734 (June 23,
2011), 76 FR 38226 (``Notice'').
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II. Description of the Proposal

    Facilitation Auction--The Facilitation Auction will allow Order
Flow Providers (``OFPs'') on BOX to enter crossing transactions in
which an OFP represents, as agent, an order (``Agency Order'') of 50
contracts or more and (a) is trading against the Agency Order as
principal, and/or (b) has solicited an order to take the opposite side
of the Agency Order. To utilize the Facilitation Auction, an OFP must
be willing to execute the entire size of the Agency Order through the
submission of a contra ``Facilitation Order.''
    Upon the entry of an Agency Order and Facilitation Order into the
Facilitation Auction, a broadcast message, which will include the
proposed execution price of the cross (the ``Facilitation Price''),
will be sent to Options Participants giving them one second to enter
responses (``Responses'') \4\ with the prices and sizes at which they
would be willing to participate in the facilitation opposite the Agency
Order. At the end of the one second period for the entry of Responses,
the Agency Order will be automatically executed, as follows:
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    \4\ Responses are permitted to be entered on behalf of any
customer.
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    Unless there is sufficient size to execute the entire Agency Order
at a price better than the Facilitation Price, Public Customer bids
(offers) and Public Customer Responses on BOX at the time the Agency
Order is executed that are priced higher (lower) than the Facilitation
Price will be executed at the facilitation price. Non-Public Customer
and Market Maker bids (offers) and Non-Public Customer and Market Maker
Responses on BOX at the time the Agency Order is executed that are
priced higher (lower) than the Facilitation Price will be executed
against the Agency Order at their stated price.
    The facilitating OFP will execute at least forty percent of the
original size of the Facilitation Order, but only after better-priced
bids (offers) and Responses on BOX, as well as Public Customer bids
(offers) and Responses at the facilitation price, are executed in full.
After the facilitating OFP has executed its forty percent, Non-Public
Customer and Market Maker bids (offers) and Responses on BOX at the
Facilitation Price will participate in the execution of the Agency
Order based upon price and time priority.\5\
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    \5\ The Exchange provided a more detailed explanation regarding
the Facilitation Auction in the Notice. See Notice, supra note 3.
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    Solicitation Auction--The Solicitation Auction will allow OFPs to
attempt to execute Agency Orders of 500 or more contracts against
contra orders that the OFP has solicited (``Solicited Orders'').\6\
Executions will occur only if the price is at or between the national
best bid or offer (``NBBO''). Each Agency Order entered into the
Solicitation Auction must be an all-or-none order.
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    \6\ The Exchange provided a more detailed explanation of how the
Solicitation Auction will work, with examples, in the Notice. See
Notice, supra note 3.
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    When a proposed solicited cross is entered into the Solicitation
Auction, BOX will broadcast a message, which will include the proposed
execution price of the cross, to Options Participants, and they will
have one second to enter Responses with the prices and sizes at which
they would be willing to participate in the execution of the Agency
Order. At the end of the one second period for the entry of Responses,
the Agency Order will be automatically executed in full or cancelled.
    The Agency Order will be executed against the Solicited Order at
the proposed execution price unless (a) There is sufficient size to
execute the entire Agency Order at a better price or prices, or (b)
there is a Public Customer order resting on the BOX Book at a price
equal to or better than the proposed execution price within the depth
of the BOX Book that would have traded with the Agency Order if the
Agency Order had been submitted to the BOX Book instead of to the
mechanism (a ``Book Priority Public Customer Order'').\7\
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    \7\ See chapter V, Section 31(b)(ii)(1) of the BOX Rules.
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    If there is sufficient size to execute the entire Agency Order at a
better price or prices at the time of execution, the Agency Order will
be executed at the improved price(s) and the Solicited Order will be
cancelled. The aggregate size of all bids (offers) and Responses at
each price will be used to determine whether the entire Agency Order
can be executed at an improved price (or prices).\8\
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    \8\ See chapter V, section 31(b)(ii)(3) of the BOX Rules.
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    If there is not sufficient size to execute the entire Agency Order
at a better price or prices, whether the Agency Order will be executed
against the Solicited Order at the proposed execution price depends on
whether there is one or more Book Priority Public Customer Order(s) on
the BOX Book at the time of execution. If no such Book Priority Public
Customer Orders are on the BOX Book at the time of execution, the
Agency Order will be executed against the Solicited Order at the
proposed execution price.\9\ However, if there is one or more Book
Priority Public Customer Orders on the Book, then BOX will calculate
whether sufficient size exists to execute the Agency Order at its
proposed price. In making this calculation, the Exchange will include
the aggregate size of all bids (offers) on the BOX Book at or better
than the proposed execution price but exclude Responses.\10\
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    \9\ See chapter V, section 31(b)(ii)(1) of the BOX Rules. In
addition, the Agency Order will not be executed against the
Solicited Order unless the execution price is equal to or better
than the NBBO at the time of execution. If an execution would take
place at a price that is inferior to the best bid or offer on BOX or
the NBBO, both the Solicited Order and Agency Order will be
cancelled. Id. Thus, a Solicited Order cannot trade through a better
price on an away market or on the BOX Book.
    \10\ See chapter V, section 31(b)(ii)(2) of the BOX Rules.

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    After this calculation, if there is sufficient size available on
the BOX Book, including non-public customer interest, to execute the
entire Agency Order at the proposed price, the Agency Order will be
executed against the BOX Book.\11\ If there is not sufficient size
available on the BOX Book, including non-public customer interest, to
execute the entire Agency Order at the proposed price, the Agency Order
and the Solicited Order will be cancelled and no executions will
occur.\12\
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    \11\ Id.
    \12\ See chapter V, section 31(b)(ii)(1) of the BOX Rules.
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    BOX's Solicitation Auction proposal includes a ``Surrender
Quantity'' function for Solicitation Auctions. An OFP may use this
function when starting a Solicitation Auction by designating, for the
Solicited Order, the quantity of contracts of the Agency Order for
which the OFP is willing to ``surrender'' to the BOX Book (``Surrender
Quantity''). In effect, the Surrender Quantity reduces the size of the
Solicited Order in order to permit (a) Book Priority Public Customer
Orders on the BOX Book at the proposed price or better, and/or (b) any
bids (offers) on the BOX Book at any price better than the proposed
execution price, to execute against the Agency Order.\13\ The surrender
of contracts to the interest described in (a) and (b) of the prior
sentence permits the Solicited Order to execute against the balance of
contracts remaining in the Agency Order when otherwise the Solicited
Order would not participate in the transaction at all or the Agency
Order and Solicited Order both would be cancelled.
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    \13\ See chapter V, section 31(b)(ii)(4) of the BOX Rules.
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    The following examples describe how a Solicitation Auction could be
impacted by the presence of a Surrender Quantity:
     When a Book Priority Public Customer Order(s) is resting
on the BOX Book at a price equal to or better than the proposed price,
and, when aggregating all other interest on the BOX Book (i.e.
including non-public customer interest but not including Responses),
there is sufficient size to execute against the Agency Order at least
at the proposed price, the Agency Order is executed against the BOX
Book and the Solicited Order is cancelled.\14\ However, if the OFP has
designated a Surrender Quantity, and the aggregate size of Book
Priority Public Customer Orders, and other interest on the BOX Book at
prices better than the proposed price, is equal to or less than the
Surrender Quantity--i.e., such interest represents no more than the
maximum quantity that the OFP is willing to surrender--the Agency Order
will first execute against all such Book Priority Public Customer
Orders and all other interest on the BOX Book at a better price,\15\
and then against the Solicited Order.
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    \14\ See supra notes 10-11 and accompanying text.
    \15\ Public Customer bids (offers) on the BOX Book at the time
of Surrender Quantity execution that are priced higher (lower) than
the proposed execution price will be executed at the proposed
execution price. Non-Public Customer and Market Maker bids (offers)
on the BOX Book at the time of Surrender Quantity execution that are
priced higher (lower) than the proposed execution price will be
executed at their stated price, See Chapter V, Section
31(b)(ii)(4)(b) of the BOX Rules. The Surrender Quantity does not
need to accommodate non-Public Customer interest at the proposed
price, which would not, in itself, block a transaction with the
Solicited Order. The Surrender Quantity also does not need to
accommodate Responses even at a better price. (Responses at a better
price are aggregated only to determine if the entire Agency Order
can be executed at a better price.)
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     When a Book Priority Public Customer Order(s) is resting
on the BOX Book at a price equal to or better than the proposed
execution price but there is otherwise insufficient quantity on the BOX
Book to execute the entire Agency Order the Solicited Order is not
permitted to bypass the Book Priority Public Customer(s) on the BOX
Book, and both the Solicited Order and the Agency Order are
cancelled.\16\ With the Surrender Quantity, however, the Book Priority
Public Customer Order(s) will be executed first (assuming that it is
not larger than the Surrender Quantity) and the remainder of the Agency
Order will be executed against the Solicited Order.
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    \16\ See supra note 12.
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     When the proposed execution price is inferior to the best
bid or offer on the BOX Book, the Solicited Order is not permitted to
trade through the better-priced order(s) on the BOX Book, and both the
Solicited Order and the Agency Order are cancelled.\17\ With the
Surrender Quantity, however, the better priced order(s) on the BOX Book
will be executed first (assuming that the size of such order(s) is not
larger than the Surrender Quantity) and the remainder of the Agency
Order will be executed against the Solicited Order.
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    \17\ See supra note 9.
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    The proposed rule change also will require OFPs to deliver to
customers a written notification (in a form approved by the Exchange)
describing the terms and conditions of the Solicitation Auction before
executing Agency Orders using the Solicitation Auction.
    Proposed Supplementary Material to Section 31 states that it will
be a violation of an Options Participant`s duty of best execution if it
were to cancel a Facilitation Order to avoid execution of the order at
a better price. Also, Options Participants will be prohibited from
using the Solicitation Auction to circumvent chapter V, section 17,
which limits principal transactions.\18\ Such prohibited actions may
include, but are not limited to, Options Participants entering
Solicitation Orders that are solicited from (i) Affiliated broker-
dealers, or (ii) broker-dealers with which the Options Participant has
an arrangement that allows the Options Participant to realize similar
economic benefits from the solicited transaction as it would achieve by
executing the customer order in whole or in part as principal. Any
Solicited Orders entered by Options Participants to trade against
Agency Orders may not be for the account of a BOX market maker that is
assigned to the options class.
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    \18\ As amended by the proposed rule change, Chapter V, Section
17, among other things, contains provisions that (a) Prohibit an
Options Participant from executing agency orders to increase its
economic gain from trading against the order without first giving
other trading interest; (b) provide that it will be a violation of
the BOX Rules for an Options Participant to cause the execution of
an order it represents as agent on BOX through the use of orders it
solicited from Options Participants and/or non-Participant broker-
dealers to transact with such orders, whether such solicited orders
are entered into the BOX market directly by the Options Participant
or by the solicited party (either directly or through another
Participant), unless (i) The agency order is first exposed to the
BOX Book for at least one (1) Second, (ii) the Options Participant
utilizes the Solicitation Auction, or (iii) the Options Participant
utilizes the Price Improvement Period; and (c) provides that the
agency order be first exposed to the BOX Book for at least one (1)
second, (ii) the OFP has been bidding or offering on BOX for a least
one (1) Second prior to receiving an agency order that is executable
against such bid or offer, (iii) the OFP sends the agency order to
the Price Improvement Period or Universal Price Improvement Period,
or (iv) the Options Participant utilizes the Solicitation Auction.
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    In addition, the Supplementary Material provides that the proposed
rule change will allow orders and Responses to be entered into the BOX
Facilitation and Solicitation Auctions and receive executions at penny
increments. Finally, the proposed rule change adds references to the
Facilitation and Solicitation Auction mechanisms to Chapter V, Section
17 (Customer Orders and Order Flow Providers), and to Chapter III,
Section 4(f) (Prevention of the Misuse of Material Nonpublic
Information).

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the Act and the rules and regulations
thereunder applicable to

a national securities exchange.\19\ In particular, the Commission finds
that the proposed rule change is consistent with Section 6(b) of the
Act,\20\ in general, and Section 6(b)(5) of the Act,\21\ in particular,
which requires that the rules of an exchange be designed, among other
things, to prevent fraudulent and manipulative acts and practices, 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.
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    \19\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposed Facilitation Auction is substantially
similar to the facilitation mechanism currently operative at the
International Securities Exchange, Inc. (``ISE''), which the Commission
has found consistent with the Act.\22\ The Commission notes, however,
that, on BOX, should any portion of Agency Order remain available for
execution against Non-Public Customer and Market Maker bids (offers),
such Non-Public Customer and Market Maker bids (offers) will be
executed against the Agency Order on a price-time priority basis,
instead of on a pro-rata priority basis, as is done on ISE. The use of
price-time priority on BOX is consistent with the priority rules of
BOX's trading system, whereas the use of pro-rata priority on ISE is
consistent with the principles generally of that exchange. The
Commission believes that this functionality is consistent with the Act.
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    \22\ See Securities Exchange Act Release No. 42455 (February 24,
2000), 65 FR 11388 (March 2, 2000) (concerning registration of the
ISE, and, among other features of the exchange, the ISE's
facilitation mechanism).
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    The proposed Solicitation Auction on BOX also is modeled on similar
mechanisms on other exchanges. The Commission previously has found such
mechanisms consistent with the Act,\23\ stating that they should allow
for greater flexibility in pricing large-sized orders and may provide a
greater opportunity for price improvement.\24\ BOX has made certain
modifications to its solicitation auction, in part to reflect its
price-time priority system, and the Commission believes that these
changes are also consistent with the Act.
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    \23\ See id., and see Securities Exchange Act Release Nos. 49141
(January 28, 2004), 69 FR 5625 (February 5, 2004) (SR-ISE-2001-22)
(approval of ISE Solicited Order Mechanism) and 57610 (April 3,
2008), 73 FR 19535 (April 10, 2008) (SR-CBOE-2008-14) (approval of
CBOE Solicitation Auction Mechanism).
    \24\ See Securities Exchange Act Release No. 57610 (April 3,
2008), 73 FR 19535 (April 10, 2008) (File No. SR-CBOE-2008-14).
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    The first modification relates to the interaction between Public
Customer Orders and the Solicitation Auction. Specifically, in BOX's
proposed Solicitation Auction, a Public Customer Order resting on the
BOX Book within the depth that would have traded with the Agency Order
had the Solicitation Auction not been in place (i.e., a Book Priority
Public Customer Order) would prevent the Solicited Order from executing
against the Agency Order, while a Public Customer Order resting on the
BOX Book below a depth that would be traded with the Agency Order had
the Solicitation Auction not been in place (i.e., a public customer
order that is not a Book Priority Public Customer Order) would not
prevent such execution. Similar to ISE's solicitation mechanism, BOX's
Solicitation Auction will not permit Public Customer orders to be
bypassed, but, unlike ISE's mechanism, BOX's Solicitation Auction will
only preclude the bypassing of Public Customers orders to the extent
that such orders would have been entitled to participate in the
execution of the Agency Order had the Agency Order been sent to the BOX
Book.\25\
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    \25\ See Notice, supra note 3, at note 8.
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    The differential treatment of Public Customers orders that are not
Book Priority Public Customer Orders and Book Priority Public Customer
Orders is consistent with the price-time priority structure of the BOX
market.\26\ In particular, Public Customer orders that are not Book
Priority Public Customer Orders would not have been executed against
the Agency Order had it been sent to the BOX Book. Thus, the Commission
believes that it is reasonable for BOX and consistent with the Act not
to provide for the execution of such orders against the Agency Order
and not to allow such orders to prevent the execution of a Solicited
Order with an Agency Order.
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    \26\ The consistency with the Act of a price-time priority
system that gives Public Customers no priority in trading rights is
discussed, in the context of BOX, in Securities Exchange Act Release
No. 49068 (January 13, 2004), 69 FR 2775 (January 20, 2004) (SR-BSE-
2002-15) (Order Establishing Trading Rules for the Boston Options
Exchange facility).
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    The second modification relates to how Responses are aggregated
with orders on the BOX Book. Specifically, the ISE's solicitation
mechanism always aggregates Responses with orders when determining
whether sufficient size exists to execute the entire Agency Order. BOX,
however, aggregates Responses with orders only if such Responses are at
an improved price over the price proposed for the transaction.
Responses are not aggregated with orders on the BOX Book when
determining whether sufficient size exists to execute the entire Agency
Order at the proposed solicitation price.\27\
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    \27\ See supra note 10.
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    Regarding the differential treatment of Responses in these two
scenarios, the Commission notes that the solicitation mechanisms on
other exchanges, on which BOX's proposed Solicitation Auction generally
is modeled, assure that when sufficient interest can be attracted
through the exposure of an agency order to obtain a price better than
the proposed execution price for the entire agency order, the agency
order should receive that price improvement.\28\ On the other hand, in
the case where price improvement is not elicited for the entire agency
order, such solicitation mechanisms provide for the execution to the
solicited order against the agency order, even when non-public customer
interest (including responses) in the aggregate would provide enough
size to fill the entire agency order.\29\ It is only the presence of a
public customer order at the proposed price that prevents the execution
of the solicited order against the agency order, so as not to bypass
that public customer.
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    \28\ See supra note 23.
    \29\ For a more complete discussion of the rationale for these
aspects of the Solicited Order Mechanism, see generally Securities
Exchange Act Release Nos. 49141 (January 28, 2004), 69 FR 5625
(February 5, 2004) (SR-ISE-2001-22) (Notice); and 49943 (June 30,
2004), 69 FR 41317 (July 8, 2004) (SR-ISE-2001-22) (Approval Order).
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    Responses exist only as a result of a solicitation auction and only
for the possibility of eliciting a better price for an agency order in
its entirety. Responses were not designed to elicit interest to fill
the agency order at the same price as that proposed by the solicited
order. In particular, a distinctive feature of solicitation mechanisms
is that the solicited order is executed against the agency order even
when non-public customer orders could fill the agency order at the
proposed price, so long as those orders do not improve the price for
the entire size of the agency order. On BOX, Public Customer orders
generally are not granted any more deference than other orders on the
BOX Book. Nonetheless, in its Solicitation Auction, consistent with the
operation of solicitation mechanisms at other exchanges, BOX will not
permit a Solicited Order to trade against the Agency Order when it
would bypass a Public Customer Order

at the same price, so long as that order was on the Book within the
depth of interest that would have traded with the Agency Order had the
Agency Order been submitted unmatched. If other interest on the Book
can fill the balance of the Agency Order, BOX further will permit the
Public Customer Order, together with such other interest, to fill the
Agency Order. The Commission believes that it is reasonable and
consistent with the Act for BOX to not aggregate Responses in this case
because the sole purpose in eliciting Responses in the Solicitation
Auction is to explore whether any possibility exists to obtain price
improvement for the entire Agency Order.
    Regarding BOX's introduction of the Surrender Quantity, the
Commission believes that this function could help facilitate the
execution of block-sized orders, while avoiding trade-throughs of
better priced bids (offers) on the BOX Book and not bypassing Public
Customer orders that would have traded with the Agency Order if the
Agency Order had been submitted to the BOX Book.
    The Exchange has adopted an interpretive provision to make clear
that it would be a violation of an Options Participant's duty of best
execution to its customer if it were to cancel a facilitation order to
avoid execution of the order at the better price. Use of the
Facilitation Auction does not modify an Options Participant's best
execution duty to obtain the best price for its customer. Accordingly,
while Facilitation Orders may be canceled during the facilitation
timeframe, if an Options Participant was to cancel a facilitation order
when there was a superior price available on the Exchange and
subsequently re-enter the facilitation order at the same facilitation
price after the better price was no longer available without attempting
to obtain that better price for its customer, there would be a
presumption that the member did so to avoid execution of its customer
order by other market participants.
    The Commission believes that this interpretation is important to
ensure that brokers proposing to facilitate orders as principal fulfill
their best execution duties to their customers. In the Commission's
view, withdrawing a facilitated order that may be price improved simply
to avoid execution of the order at the superior price is a violation of
a broker's duty of best execution.\30\ The Commission expects the
Exchange to establish procedures to surveil for violations of this best
execution obligation.\31\
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    \30\ See, e.g., Securities Exchange Act Release No. 49175
(February 3, 2004), 69 FR 6124 (February 9, 2004) (Commission
concept release on ``Competitive Developments in the Options
Markets''), citing In the Matter of the Application of the
International Securities Exchange, LLC For Registration as a
National Securities Exchange, Release No. 42455 (Feb. 24, 2000).
    \31\ The Commission realizes that ensuring that Options
Participations do not re-enter facilitated orders on markets other
than the Exchange may be difficult. Nevertheless, the Commission
expects the Exchange to work with the other options markets through
the Intermarket Surveillance Group to develop methods and procedures
to monitor their Options Participants trading on other markets for
possible best execution violations in this context.
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    Finally, the Commission believes that it is reasonable and
consistent with the Act for orders and Responses to be entered into the
Exchange's Facilitation and Solicitation Auctions and receive
executions at penny increments (the ``Penny Increment functionality'').
The Commission notes that the Exchange is not restricting the ability
of any Options Participant to enter orders and Reponses in penny
increments into the Exchange's Facilitation and Solicitation Auctions
on its own behalf or on behalf of any other person, including
customers. The Commission believes that the Penny Increment
functionality could provide greater flexibility in pricing for block-
size orders and could provide enhanced opportunities for block-sized
orders to benefit from price improvement, while ensuring broad access
to persons that would like to participate in a one-cent increment. In
addition, the Commission notes that it has previously approved rules
relating to exchange crossing mechanisms that allow orders and
executions in penny increments.\32\
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    \32\ See Securities Exchange Act Release Nos. 49068 (January 14,
2003), 68 FR 3062 (January 22, 2003) (Commission approval
establishing trading rules for BOX, including rules for the Price
Improvement Period); 49323 (February 26, 2004), 69 FR 10087 (March
3, 2004) (Commission approval establishing rules for ISE's Price
Improvement Mechanism); and 53222 (February 3, 2006), 71 FR 7089
(February 10, 2006) (Commission approval establishing rules for
CBOE's Automated Improvement Mechanism). These mechanisms allow for
the execution of orders at penny increments even when the standard
minimum trading increment is greater than one penny.
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IV. Conclusion

    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\33\ that the proposed rule change (SR-BX-2011-034) be, and it
hereby is, approved.
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    \33\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
 Elizabeth M. Murphy,
Secretary.
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    \34\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2011-25073 Filed 9-28-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 168 (Thursday, August 29, 2013)]
[Notices]
[Pages 53452-53454]
[FR Doc No: 2013-21025]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9900-42-ORD: Docket ID No. EPA-HQ-ORD-2013-0620]

Notice of Workshop and Call for Information on Integrated Science
Assessment for Oxides of Nitrogen and Oxides of Sulfur

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice; call for information.

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SUMMARY: The U.S. EPA Office of Research and Development's National
Center for Environmental Assessment (NCEA) is preparing an Integrated
Science Assessment (ISA) as part of the review of the secondary
National Ambient Air Quality Standards (NAAQS) for oxides of nitrogen
(NOX) and oxides of sulfur (SOX). This ISA is
intended to update the scientific assessment presented in the
Integrated Science Assessment for Oxides of Nitrogen and Sulfur--
Ecological Criteria (EPA 600/R-08/082F), published in December 2008.
Interested parties are invited to assist the EPA in developing and
refining the scientific information base for the review of the
secondary NOX and SOX NAAQS by submitting
research studies that have been published, accepted for publication, or
presented at a public scientific meeting.
    The EPA is also announcing that a workshop entitled ``Workshop to
Discuss Policy-Relevant Science to Inform EPA's Review of the Secondary
NOX and SOX NAAQS'' is being organized by NCEA and the EPA Office of
Air and Radiation's Office of Air Quality Planning and Standards
(OAQPS). The workshop will be held October 1 to 3, 2013, in Research
Triangle Park, North Carolina. The workshop will be open to attendance
by interested public observers on a first-come, first-served basis up
to the limits of available space.

DATES: The workshop will be held October 1 to 3, 2013. All
communications and information submitted in response to notice of the
workshop should be received by EPA by September 27, 2013.

ADDRESSES: The workshop will be held at U.S. EPA, 109 T.W. Alexander
Drive, Research Triangle Park, North Carolina. An EPA contractor, ICF
International, is providing logistical support for the workshop. Please
register by going to https://sites.google.com/site/soxnoxkickoffworkshop/. The pre-registration deadline is September 27,
2013. Please direct questions regarding workshop registration or
logistics to Courtney Skuce at<EMAIL_ADDRESS>or by
phone at<PHONE_NUMBER>. For specific questions regarding technical
aspects of the workshop see the section of this notice entitled FOR
FURTHER INFORMATION CONTACT.
    Information in response to the call for information may be
submitted electronically, by mail, by facsimile, or by hand delivery/
courier. Please follow the detailed instructions as provided in the
section of this notice entitled SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT: For details on the period for
submission of research information from the public, contact the Office
of Research and Development (ORD) Docket; telephone:<PHONE_NUMBER>;
facsimile:<PHONE_NUMBER>; or email<EMAIL_ADDRESS>For technical
information, contact Tara Greaver, Ph.D., NCEA, telephone: (919) 541-
5762; facsimile:<PHONE_NUMBER>; or email<EMAIL_ADDRESS>or
Ginger Tennant, OAQPS, telephone:<PHONE_NUMBER> or email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Information About the Project

    Section 108(a) of the Clean Air Act directs the Administrator to
issue ``air quality criteria'' for certain air pollutants. These air
quality criteria are to ``accurately reflect the latest scientific
knowledge useful in indicating the kind and extent of all identifiable
effects on public health or welfare, which may be expected from the
presence of such pollutant in the ambient air. . . .'' Under section
109 of the Act, EPA is then to establish NAAQS for each pollutant for
which EPA has issued criteria. Section 109(d) of the Act

subsequently requires periodic review and, if appropriate, revision of
existing air quality criteria to reflect advances in scientific
knowledge on the effects of the pollutant on public health and welfare.
EPA is also to revise the NAAQS, if appropriate, based on the revised
air quality criteria.
    NOX and SOX are two of six ``criteria''
pollutants for which EPA has established NAAQS. Periodically, EPA
reviews the scientific basis for these standards by preparing an ISA.
The ISA, along with additional technical and policy assessments
conducted by OAQPS, form the basis for EPA decisions on the adequacy of
existing NAAQS and the appropriateness of new or revised standards.
    At the start of a NAAQS review, EPA issues an announcement of the
review and notes the initiation of the development of the ISA. At that
time, EPA also issues a request that the public submit scientific
literature that they want to bring to the attention of the Agency for
consideration in the review process. The Clean Air Scientific Advisory
Committee (CASAC), an independent scientific advisory committee
mandated by the Clean Air Act, conducts independent expert scientific
review of EPA's draft ISAs. As the process proceeds, the public will
have opportunities to review and comment on draft NOX and
SOX ISAs. These opportunities will also be announced in the
Federal Register.
    For the review of the NOX and SOX NAAQS being
initiated by this notice, the Agency is interested in obtaining
additional new information on how gas-phase and deposition of these
pollutants affects all ecosystem types in the US. Studies of particular
interest are those evaluating the effects of exposure to gas-phase or
deposition of NOX and SOX on laboratory plants
and/or animals, field studies on ecosystem structure and/or function,
including but not limited to studies on biogeochemistry, biodiversity,
population and/or community structure. Deposition of NOX and
SOX contribute to deposition of total nitrogen (N) and total
sulfur (S) categories. General ecological effects due to deposition are
ecosystem acidification (N + S deposition), nutrient enrichment (N
deposition), eutrophication (N deposition) and sulfur induced mercury
methylation (S deposition). EPA also seeks recent information in other
areas of NOX and SOX research such as chemistry
and physics, sources and emissions, analytical methodology, transport
and transformation in the environment, and ambient concentrations in
addition to information on reduced N and organic N to understand how
NOX contributes to total N loading. This and other selected
literature relevant to a review of the NAAQS for NOX and
SOX will be assessed in the forthcoming NOX and
SOX ISA.
    As part of this review of the NOX and SOX
NAAQS, EPA intends to sponsor a workshop on October 1 to 3, 2013, to
inform the planning for EPA's review of the secondary (welfare-based)
NAAQS for NOX and SOX. Consistent with the NAAQS
review process,\1\ the workshop will provide an opportunity to
highlight key policy-relevant science issues around which EPA would
structure the review. In workshop discussions, EPA and experts from
other organizations will be expected to highlight significant new and
emerging NOX and SOX research and make
recommendations to the Agency regarding the design and scope of this
review. The goal of the workshop is to ensure that this review focuses
on the key policy-relevant issues and considers the most meaningful new
science to inform our understanding of these issues. Workshop
discussions will provide important input as EPA considers the
appropriate design and scope of major elements of the review that will
inform the Agency's policy assessment. These elements include an
integrated review plan (IRP) highlighting the key policy-relevant
issues; an integrated science assessment; and a risk and exposure
assessment. We intend that workshop discussions will build upon three
prior assessments or events (please see http://www.epa.gov/ttn/naaqs/standards/no2so2sec/cr.html to obtain a copy of these and other related
documents):
---------------------------------------------------------------------------

    \1\ More information on the NAAQS review process is provided at:
http://www.epa.gov/ttn/naaqs/.
---------------------------------------------------------------------------

    1. Secondary National Ambient Air Quality Standards for Nitrogen
Dioxide; Final Rule (40 CFR Part 50 [EPA-HQ-OAR-2007-1145], April 3,
2012). The preamble to the final rule included detailed discussions of
policy-relevant issues central to the last review.
    2. Integrated Science Assessment for Oxides of Nitrogen and
Sulfur--Ecological Criteria (EPA 600/R-08/082F, December 2008).
    3. Risk and Exposure Assessment to Support the Review of the NO2
Primary National Ambient Air Quality Standard (EPA 452/R-09/008a,
September 2009).
    Based in large part on the input received during this workshop, EPA
will develop a draft IRP that will outline the schedule, process, and
approaches for evaluating the relevant scientific information,
assessing risks to the environment and addressing the key policy-
relevant issues. The CASAC will be asked to review the draft integrated
review plan, and the public will have the opportunity to comment on it
as well. The final integrated review plan will be used as a framework
to guide the review.

II. How To Submit Technical Comments to the Docket at
www.regulations.gov

    Submit your comments, identified by Docket ID No. EPA-HQ-ORD-2013-
0620 by one of the following methods:
     www.regulations.gov: Follow the on-line instructions for
submitting comments.
     Email<EMAIL_ADDRESS>     Fax:<PHONE_NUMBER>.
     Mail: Office of Research and Development (ORD) Docket
(Mail Code: 28221T), U.S. Environmental Protection Agency, 1200
Pennsylvania Avenue NW., Washington, DC 20460. The phone number is 202-
566-1752.
     Hand Delivery: The ORD Docket is located in the EPA
Headquarters Docket Center, Room 3334, EPA West Building, 1301
Constitution Avenue NW., Washington, DC. The EPA Docket Center Public
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding Federal holidays. The telephone number for the Public
Reading Room is<PHONE_NUMBER>. Such deliveries are only accepted during
the docket's normal hours of operation, and special arrangements should
be made for deliveries of boxed information. If you provide comments by
mail or hand delivery, please submit three copies of the comments. For
attachments, provide an index, number pages consecutively with the
comments, and submit an unbound original and three copies.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-ORD-
2013-0620. Please ensure that your comments are submitted within the
specified comment period. Comments received after the closing date will
be marked ``late,'' and may only be considered if time permits. It is
EPA's policy to include all comments it receives in the public docket
without change and to make the comments available online at
www.regulations.gov, including any personal information provided,
unless a 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 www.regulations.gov or email. The
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 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
information about EPA's public docket visit the EPA Docket Center
homepage at www.epa.gov/epahome/dockets.htm.
    Docket: Documents in the docket are listed in the
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 materials,
such as copyrighted material, are publicly available only in hard copy.
Publicly available docket materials are available either electronically
in www.regulations.gov or in hard copy at the ORD Docket in the EPA
Headquarters Docket Center.

    Dated: August 21, 2013.
Debra B. Walsh,
Acting Director, National Center for Environmental Assessment.
[FR Doc. 2013-21025 Filed 8-28-13; 8:45 am]
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[Federal Register Volume 79, Number 15 (Thursday, January 23, 2014)]
[Notices]
[Page 3820]
[FR Doc No: 2014-01222]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2013-N-0377]

Agency Information Collection Activities; Announcement of Office
of Management and Budget Approval; Tobacco Health Document Submission

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing that a
collection of information entitled ``Tobacco Health Document
Submission'' has been approved by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1995.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, 1350 Piccard Dr., PI50-400B, Rockville,
MD 20850<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On August 28, 2013, the Agency submitted a
proposed collection of information entitled ``Tobacco Health Document
Submission'' to OMB for review and clearance under 44 U.S.C. 3507. An
Agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a currently
valid OMB control number. OMB has now approved the information
collection and has assigned OMB control number 0910-0654. The approval
expires on December 31, 2016. A copy of the supporting statement for
this information collection is available on the Internet at http://www.reginfo.gov/public/do/PRAMain.

    Dated: January 16, 2014.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2014-01222 Filed 1-22-14; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)]
[Notices]
[Pages 23502-23503]
[FR Doc No: 2018-10776]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

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

Extension:
    Rule 12b-1, SEC File No. 270-188, OMB Control No. 3235-0212.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget (``OMB'') for extension and approval.
    Rule 12b-1 under the Investment Company Act of 1940 (17 CFR
270.12b-1) permits a registered open-end investment company (``fund'')
to bear expenses associated with the distribution of its shares,
provided that the fund complies with certain requirements, including,
among other things, that it adopt a written plan (``rule 12b-1 plan'')
and that it preserves in writing any agreements relating to the rule
12b-1 plan. The rule in part requires that (i) the adoption or material
amendment of a rule 12b-1 plan be approved by the fund's directors,
including its independent directors, and, in certain circumstances, its
shareholders; (ii) the board review quarterly reports of amounts spent
under the rule 12b-1 plan; and (iii) the board, including the
independent directors, consider continuation of the rule 12b-1 plan and
any related agreements at least annually. Rule 12b-1 also requires
funds relying on the rule to preserve for six years, the first two
years in an easily accessible place, copies of the rule 12b-1 plan and
any related agreements and reports, as well as minutes of board
meetings that describe the factors considered and the basis for
adopting or continuing a rule 12b-1 plan.
    Rule 12b-1 also prohibits funds from paying for distribution of
fund shares with brokerage commissions on their portfolio transactions.
The rule requires funds that use broker-dealers that sell their shares
to also execute their portfolio securities transactions, to implement
policies and procedures reasonably designed to prevent: (i) The persons
responsible for selecting broker-dealers to effect transactions in fund

portfolio securities from taking into account broker-dealers'
promotional or sales efforts when making those decisions; and (ii) a
fund, its adviser, or its principal underwriter, from entering into any
agreement under which the fund directs brokerage transactions or
revenue generated by those transactions to a broker-dealer to pay for
distribution of the fund's (or any other fund's) shares.
    The board and shareholder approval requirements of rule 12b-1 are
designed to ensure that fund shareholders and directors receive
adequate information to evaluate and approve a rule 12b-1 plan and,
thus, are necessary for investor protection. The requirement of
quarterly reporting to the board is designed to ensure that the rule
12b-1 plan continues to benefit the fund and its shareholders. The
recordkeeping requirements of the rule are necessary to enable
Commission staff to oversee compliance with the rule. The requirement
that funds or their advisers implement, and fund boards approve,
policies and procedures in order to prevent persons charged with
allocating fund brokerage from taking distribution efforts into account
is designed to ensure that funds' selection of brokers to effect
portfolio securities transactions is not influenced by considerations
about the sale of fund shares.
    Commission staff estimates that there are approximately 7,858 fund
portfolios that have at least one share class subject to a rule 12b-1
plan and approximately 323 fund families with common boards of
directors that have at least one fund with a 12b-1 plan. The Commission
further estimates that the annual hour burden for complying with the
rule is 425 hours for each fund family with a portfolio that has a rule
12b-1 plan. We therefore estimate that the total hourly burden per year
for all funds to comply with current information collection
requirements under rule 12b-1 is 137,275 hours. Commission staff
estimates that approximately three funds per year prepare a proxy in
connection with the adoption or material amendment of a rule 12b-1
plan. The staff further estimates that the cost of each fund's proxy is
$34,849. Thus, the total annual cost burden of rule 12b-1 to the fund
industry is $104,547.
    Estimates of average burden hours and costs are made solely for
purposes of the Paperwork Reduction Act and are not derived from a
comprehensive or even representative survey or study of the costs of
Commission rules and forms. The collections of information required by
Rule 12b-1 are necessary to obtain the benefits of the rule. Notices to
the Commission will not be kept confidential. An agency may not conduct
or sponsor, and a person is not required to respond to a collection of
information unless it displays a currently valid OMB control number.
    Written comments are invited on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the burden of
the collection of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques or other
forms of information technology. Consideration will be given to
comments and suggestions submitted in writing within 60 days of this
publication.
    Please direct your written comments to Pamela Dyson, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE, Washington, DC 20549; or send an email
to: [email protected].
    All submissions should refer to File Number 270-188. This file
number should be included on the subject line if email is used. The
Commission will post all comments on the Commission's internet website
(http://www.sec.gov). All comments received will be posted without
change; we do not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.

    Dated: May 16, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10776 Filed 5-18-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 168 (Friday, August 29, 2014)]
[Notices]
[Pages 51623-51624]
[FR Doc No: 2014-20560]

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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2006-0028]

MET Laboratories, Inc.: Grant of Expansion of Recognition

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Notice.

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SUMMARY: In this notice, OSHA announces its final decision to expand
the scope of recognition for MET Laboratories, Inc., as a Nationally
Recognized Testing Laboratory (NRTL).

DATES: The renewal of recognition becomes effective on August 29, 2014.

FOR FURTHER INFORMATION CONTACT: Information regarding this notice is
available from the following sources:
    Press inquiries: Contact Mr. Frank Meilinger, Director, OSHA Office
of Communications, U.S. Department of Labor, 200 Constitution Avenue
NW., Room N-3647, Washington, DC 20210; telephone:<PHONE_NUMBER>;
email<EMAIL_ADDRESS>    General and technical information: Contact Mr. David Johnson,
Director, Office of Technical Programs and Coordination Activities,
Directorate of Technical Support and Emergency Management, Occupational
Safety and Health Administration, U.S. Department of Labor, 200
Constitution Avenue NW., Room N-3655, Washington, DC 20210; telephone:
(202) 693-2110; email<EMAIL_ADDRESS>OSHA's Web page
includes information about the NRTL Program (see http://www.osha.gov/dts/otpca/nrtl/index.html).

SUPPLEMENTARY INFORMATION:

I. Notice of Final Decision

    OSHA hereby gives notice of the expansion of the scope of
recognition of MET Laboratories, Inc. (MET), as an NRTL. MET's
expansion covers the addition of one test standard to its scope of
recognition.
    OSHA recognition of an NRTL signifies that the organization meets
the requirements specified by 29 CFR 1910.7. Recognition is an
acknowledgment that the organization can perform independent safety
testing and certification of the specific products covered within its
scope of recognition, and is not a delegation or grant of government
authority. As a result of recognition, employers may use products
properly approved by the NRTL to meet OSHA standards that require
testing and certification of the products.
    The Agency processes applications by an NRTL for initial
recognition, or for expansion or renewal of this recognition, following
requirements in Appendix A to 29 CFR 1910.7. This appendix requires
that the Agency publish two notices in the Federal Register in
processing an application. In the first notice, OSHA announces the
application and provides its preliminary finding and, in the second
notice, the Agency provides its final decision on the application.
These notices set forth the NRTL's scope of recognition or
modifications of that scope. OSHA maintains an informational Web page
for each NRTL that details its scope of recognition. These pages are
available from the Agency's Web site at http://www.osha.gov/dts/otpca/nrtl/index.html.
    MET submitted an application, dated December 13, 2011 (OSHA-2006-
0028-0015--MET Expansion Application for UL 2202), to expand its
recognition to include one additional test standard. OSHA staff
reviewed MET's application and other pertinent information. OSHA did
not perform any on-site reviews in relation to this application.
    OSHA published the preliminary notice announcing MET's expansion
application in the Federal Register on May 6, 2014 (79 FR 25894). The
Agency requested comments by May 21, 2014, but it received no comments
in response to this notice. OSHA now is proceeding with this final
notice to grant expansion of MET's scope of recognition.
    To obtain or review copies of all public documents pertaining to
MET's application, go to www.regulations.gov or contact the Docket
Office, Occupational Safety and Health Administration, U.S. Department
of Labor, 200 Constitution Avenue NW., Room N-2625, Washington, DC
20210. Docket No. OSHA-2006-0028 contains all materials in the record
concerning MET's recognition.

II. Final Decision and Order

    OSHA staff examined MET's expansion application, its capability to
meet the requirements of the test standards, and other pertinent
information. Based on its review of this evidence, OSHA finds that MET
meets the requirements of 29 CFR 1910.7 for expansion of its
recognition, subject to the limitation and conditions listed below.
    OSHA limits the expansion of MET's recognition to testing and
certification of products for demonstration of conformance to the
following test standard, which OSHA determined is an appropriate test
standard within the meaning of 29 CFR 1910.7(c):

 Table 1--Appropriate Test Standard for Inclusion in MET's NRTL Scope of
                               Recognition
------------------------------------------------------------------------
             Test standard                     Test standard title
------------------------------------------------------------------------
UL 2202................................  Electric Vehicle (EV) Charging
                                          System Equipment.
------------------------------------------------------------------------

    OSHA's recognition of any NRTL for a particular test standard is
limited to equipment or materials for which OSHA standards require
third-party testing and certification before using them in the
workplace. Consequently, if a test standard also covers any products
for which OSHA does not require such testing and certification, an
NRTL's scope of recognition does not include those products.
    The American National Standards Institute (ANSI) may approve the
test standard listed above as an American National Standard. However,
for convenience, we may use the designation of the standards-developing
organization for the standard as opposed to the ANSI designation. Under
the NRTL Program's policy (see OSHA Instruction CPL 1-0.3, Appendix C,
paragraph XIV), any NRTL recognized for a particular test standard may
use either the proprietary version of the test standard or the ANSI
version of that standard. Contact ANSI to determine whether a test
standard is currently ANSI-approved.

A. Conditions

    In addition to those conditions already required by 29 CFR 1910.7,
MET must abide by the following conditions of the recognition:
    1. MET must inform OSHA as soon as possible, in writing, of any
change of ownership, facilities, or key personnel, and of any major
change in its operations as an NRTL, and provide details of the
change(s);
    2. MET must meet all the terms of its recognition and comply with
all OSHA policies pertaining to this recognition; and
    3. MET must continue to meet the requirements for recognition,
including all previously published conditions on MET's scope of
recognition, in all areas for which it has recognition.
    Pursuant to the authority in 29 CFR 1910.7, OSHA hereby expands the
scope of recognition of MET, subject to the limitation and conditions
specified above.

III. Authority and Signature

    David Michaels, Ph.D., MPH, Assistant Secretary of Labor for
Occupational Safety and Health, 200 Constitution Avenue NW.,
Washington, DC 20210, authorized the preparation of this notice.
Accordingly, the Agency is issuing this notice pursuant to 29 U.S.C.
657(g)(2), Secretary of Labor's Order No. 1-2012 (77 FR 3912, Jan. 25,
2012), and 29 CFR 1910.7.

    Signed at Washington, DC, on August 25, 2014.
David Michaels,
Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. 2014-20560 Filed 8-28-14; 8:45 am]
BILLING CODE 4510-26-P