[Federal Register Volume 81, Number 153 (Tuesday, August 9, 2016)]
[Notices]
[Pages 52717-52718]
[FR Doc No: 2016-18794]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78474; File No. 4-701]

Self-Regulatory Organizations; Investors Exchange LLC; Order
Declaring Effective a Minor Rule Violation Plan

August 3, 2016.
    On July 11, 2016, Investors Exchange LLC (``IEX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') a
proposed minor rule violation plan (``MRVP'' or ``Plan'') pursuant to
Section 19(d)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19d-1(c)(2) thereunder.\2\ The proposed MRVP was published for
public comment on July 18, 2016.\3\ The Commission received no comments
on the proposal. This order declares the Exchange's proposed MRVP
effective.
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    \1\ 15 U.S.C. 78s(d)(1).
    \2\ 17 CFR 240.19d-1(c)(2).
    \3\ See Securities Exchange Act Release No. 78300 (July 12,
2016), 81 FR 46730 (``Notice'').
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    The Exchange's MRVP specifies the rule violations which will be
included in the Plan and will have sanctions not exceeding $2,500. Any
violations which are resolved under the MRVP would not be subject to
the provisions of Rule 19d-1(c)(1) of the Act,\4\ which requires that a
self-regulatory organization (``SRO'') promptly file notice with the
Commission of any final disciplinary action taken with respect to any
person or organization.\5\ In accordance with Rule 19d-1(c)(2) under
the Act,\6\ the Exchange proposed to designate certain specified rule
violations as minor rule violations, and requested that it be relieved
of the prompt reporting requirements regarding such violations,
provided it gives notice of such violations to the Commission on a
quarterly basis.
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    \4\ 17 CFR 240.19d-1(c)(1).
    \5\ The Commission adopted amendments to paragraph (c) of Rule
19d-1 to allow SROs to submit for Commission approval plans for the
abbreviated reporting of minor disciplinary infractions. See
Securities Exchange Act Release No. 21013 (June 1, 1984), 49 FR
23828 (June 8, 1984). Any disciplinary action taken by an SRO
against any person for violation of a rule of the SRO which has been
designated as a minor rule violation pursuant to such a plan filed
with and declared effective by the Commission is not considered
``final'' for purposes of Section 19(d)(1) of the Act if the
sanction imposed consists of a fine not exceeding $2,500 and the
sanctioned person has not sought an adjudication, including a
hearing, or otherwise exhausted his administrative remedies.
    \6\ 17 CFR 240.19d-1(c)(2).
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    The Exchange proposed to include in its MRVP the procedures
included in Exchange Rule 9.216(b) (``Procedure for Violation Under
Plan Pursuant to Exchange Act Rule 19d-1(c)(2)'') and the violations to
be included in Exchange Rule 9.218 (``Violations Appropriate for
Disposition Under Plan Pursuant to Exchange Act Rule 19d-1(c)(2)'').\7\
According to the Exchange's

proposed MRVP, under Rule 9.216(b), the Exchange may impose a fine (not
to exceed $2,500) and/or a censure on any Member or associated person
with respect to any rule listed in IEX Rule 9.218. If the Financial
Industry Regulatory Authority Department of Enforcement or the
Department of Market Regulation, on behalf of the Exchange, has reason
to believe a violation has occurred and if the Member or associated
person does not dispute the violation, the Department of Enforcement or
the Department of Market Regulation may prepare and request that the
Member or associated person execute a minor rule violation plan letter
accepting a finding of violation, consenting to the imposition of
sanctions, and agreeing to waive the Member's or associated person's
right to a hearing before a Hearing Panel or, if applicable, an
Extended Hearing Panel, and any right of appeal to the IEX Appeals
Committee, the Board, the Commission, and the courts, or to otherwise
challenge the validity of the letter, if the letter is accepted. The
letter must describe the act or practice engaged in or omitted, the
rule, regulation, or statutory provision violated, and the sanction or
sanctions to be imposed. Unless the letter states otherwise, the
effective date of any sanction imposed will be a date to be determined
by IEX Regulation staff. In the event the letter is not accepted by the
Member or associated person, or is rejected by the Office of
Disciplinary Affairs, the matter can proceed in accordance with the
Exchange's disciplinary rules, which include hearing rights for formal
disciplinary proceedings.\8\
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    \7\ The Exchange received its grant of registration on June 17,
2016, which included approving the rules that govern the Exchange.
See Securities Exchange Act Release No. 78101 (June 17, 2016), 81 FR
41141 (June 23, 2016) (File No. 10-222).
    Under the proposed MRVP, violations of the following rules would
be appropriate for disposition under the MRVP: Rule 2.160(p)--
Continuing Education Requirements; Rule 4.511 (General Requirements
related to books and records requirements); Rule 4.540 (Furnishing
of records); Rule 5.110 (Supervision); Rule 8.220 (Automated
submission of trading data requested); Rule 11.151(a)(1) (Market
Maker two-sided quotation requirement); Rule 11.290 (Short sales);
Rule 11.310 (Locking or crossing quotations in NMS stocks); and Rule
11.420 (Order audit trail system requirements). See Notice, supra
note 3. When IEX's MRVP is declared effective, IEX will file a
proposed rule change to amend Rule 9.218 to specify the violations
to be included in the MRVP.
    \8\ See, Notice, supra note 3.
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    Once IEX's MRVP is effective, the Exchange will provide to the
Commission a quarterly report for any actions taken on minor rule
violations under the MRVP. The quarterly report will include: The
Exchange's internal file number for the case, the name of the
individual and/or organization, the nature of the violation, the
specific rule provision violated, the sanction imposed, the number of
times the rule violation occurred, and the date of the disposition.\9\
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    \9\ The Exchange attached a sample form of the quarterly report
with its submission to the Commission.
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    The Commission finds that the proposal is consistent with the
public interest, the protection of investors, and otherwise in
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2)
under the Act,\10\ because the MRVP will permit the Exchange to carry
out its oversight and enforcement responsibilities as an SRO more
efficiently in cases where full disciplinary proceedings are not
necessary due to the minor nature of the particular violation.
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    \10\ 17 CFR 240.19d-1(c)(2).
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    In declaring the Exchange's MRVP effective, the Commission in no
way minimizes the importance of compliance with Exchange rules and all
other rules subject to the imposition of sanctions under Exchange Rule
9.216(b). The Commission believes that the violation of an SRO's rules,
as well as Commission rules, is a serious matter. However, Exchange
Rule 9.216(b) provides a reasonable means of addressing violations that
do not rise to the level of requiring formal disciplinary proceedings,
while providing greater flexibility in handling certain violations. The
Commission expects that the Exchange will continue to conduct
surveillance and make determinations based on its findings, on a case-
by-case basis, regarding whether a sanction under the MRVP is
appropriate, or whether a violation requires formal disciplinary
action.
    IT IS THEREFORE ORDERED, pursuant to Rule 19d-1(c)(2) under the
Act,\11\ that the proposed MRVP for Investors Exchange LLC, File No. 4-
701, be, and hereby is, declared effective.
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    \11\ Id.
    \12\ 17 CFR 200.30-3(a)(44).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-18794 Filed 8-8-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 97 (Friday, May 18, 2018)]
[Notices]
[Pages 23310-23311]
[FR Doc No: 2018-10602]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83226; File No. SR-CBOE-2018-035]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Silexx Trading Platform Fees Schedule

May 14, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 1, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the Silexx trading platform
(``Silexx'' or the platform'') Fees Schedule.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of this filing is to include language within the Silexx
Fees Schedule to: (1) Clarify that the purchase of Login IDs is subject
to proration; and (2) introduce a two-month free upgrade for users on
Silexx Basic to Silexx Pro. Today, the Exchange does not prorate the
pricing for Login IDs or offer free upgrades on Silexx.
    By way of background, Silexx is an order entry and management
trading platform for listed stocks and options that support both simple
and complex orders.\3\ The platform is a software application that is
installed locally on a user's desktop. It provides users with the
capability to send option orders to U.S. options exchanges and stock
orders to U.S. stock exchanges (and other trading centers), and allows
users to input parameters to control the size, timing, and other
variables of their trades. Silexx includes access to real-time options
and stock market data, as well as access to certain historical data.
The platform also provides users with the ability to maintain an
electronic audit trail and provide detailed trade reporting. In
addition, Silexx offers other functionality such as access to crossing
orders tickets, equity order reports, and market data feeds (for
specific fees). Use of Silexx is completely optional.
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    \3\ The platform also permits users to submit orders for
commodity futures, commodity options and other non-security products
to be sent to designated contract markets, futures commission
merchants, introducing brokers or other applicable destinations of
the users' choice.
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Login IDs
    Login IDs may be purchased for different versions of the platform,
including Basic, Pro, Sell-Side, Pro Plus Risk, and Buy-Side Manager.
The Exchange previously filed to establish set monthly fees for each
version of the platform.\4\ The Exchange now proposes to clarify that
fees related to the purchase of Login IDs are prorated. Specifically,
if a user signs up for a Login ID on any version of the platform after
the first calendar day of the month, the fee for that calendar month is
prorated based on the remaining calendar days in that calendar month.
This proration does not apply if a user cancels a Login ID prior to the
end of the calendar month.
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    \4\ See Securities Exchange Act Release No. 82088 (November 15,
2017), 82 FR 55443 (November 21, 2017) (SR-CBOE-2017-068)
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Two-Month Free Upgrade
    Silexx Basic is an order-entry and management system that provides
basic functionality including real-time data, alerts, trade reports,
views of exchange books, management of the customer's orders and
positions, simple and complex order tickets, and basic risk features.
Users are currently charged $200 per month per Login ID for Silexx
Basic. Silexx Pro offers the same functionality as the basic platform
plus additional features including an algorithmic order ticket,
position analysis, charting, earnings and dividend information, delta
hedging tools, volatility skews, and additional risk features. Users
are currently charged $400 per month per Login ID for Silexx Pro.
    The Exchange proposes to introduce a two-month free-upgrade period
for users that are currently on Silexx Basic. This upgrade would allow
users of Silexx Basic to use the functionality of Silexx Pro for a
period of two months (May 1, 2018 through June 30, 2018) at the current
Silexx Basic rate of $200 per month per Login ID. After the two-month
period ends, beginning July 1, 2018, those users will be charged at the
Silexx Pro rate of $400 per month until they choose to downgrade. The
Exchange notes that the upgrade to Silexx Pro is optional.
    These proposed changes to the Silexx Fees Schedule are to take
effect on May 1, 2018.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the

Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\7\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(4).
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    First, the Exchange believes the proposed change related to Login
IDs provides for the equitable allocation of reasonable fees because
the prorated Login ID fees will apply to all users of each version of
the platform. Additionally, the Exchange believes the proposed change
will provide for a more precise assessment of platform fees based on
when a user signs up for a Login ID. Second, the Exchange believes the
proposed change related to the free upgrade to Silexx Pro is
reasonable, equitable, and not unfairly discriminatory because the free
upgrade will apply to all current users of Silexx Basic who wish to
upgrade. Additionally, the free upgrade period will be limited to two
months beginning on May 1, 2018 and ending on June 30, 2018. Finally,
the Exchange notes that use of the platform, including the upgrade, is
discretionary and not compulsory, and users may downgrade or cancel
their Login IDs with Silexx at any time.

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

    Cboe Options does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change will not impose any burden on intramarket
competition because the proposed rule changes apply to all users of
Silexx. The Exchange notes that each version of Silexx is available to
all market participants, and users have discretion to determine which
version of the platform they register for based on functionality.
    The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed change applies only to Cboe Options. To the extent that the
proposed changes make Cboe Options a more attractive marketplace for
market participants at other exchanges, such market participants are
welcome to become Cboe Options market participants.

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

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

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CBOE-2018-035 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2018-035. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2018-035, and should be submitted
on or before June 8, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10602 Filed 5-17-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 198 (Tuesday, October 13, 2020)]
[Rules and Regulations]
[Pages 64394-64398]
[FR Doc No: 2020-22562]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2020-0511]
RIN 1625-AA00

Safety Zone; Spa Creek, Annapolis, MD

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing a temporary safety zone for
certain waters of Spa Creek. This action is necessary to provide for
the safety of life on these navigable waters within Market Slip (Ego
Alley), Annapolis, MD, during a film project on October 22, 2020
(alternate date October 23, 2020). This regulation prohibits persons
and vessels from being in the safety zone unless authorized by the
Captain of the Port Maryland-National Capital Region or a designated
representative.

DATES: This rule is effective from 5 a.m. on October 22, 2020 through
noon on October 23, 2020.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://

www.regulations.gov, type USCG-2020-0511 in the ``SEARCH'' box and
click ``SEARCH.'' Click on Open Docket Folder on the line associated
with this rule.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mr. Ron Houck, U.S. Coast Guard Sector Maryland-National
Capital Region; telephone<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    Hoonigan Industries, of Long Beach, CA, notified the Coast Guard
that it will be conducting a film project using barges and other marine
equipment positioned at two locations in Spa Creek, at Annapolis, MD.
In response, on September 11, 2020, the Coast Guard published a notice
of proposed rulemaking (NPRM) titled ``Safety Zones; Spa Creek,
Annapolis, MD'' (85 FR 56186). In that NPRM we proposed to establish 2
security zones--the first within a portion of Market Slip (Ego Alley)
and the second across the width of Annapolis Harbor. The first safety
zone was to be enforced from 5 a.m. to noon on October 19, 2020, or if
necessary due to inclement weather on October 19, 2020, from 5 a.m. to
noon on October 20, 2020. The second safety zone was to be enforced
from 7 a.m. on October 20, 2020, through noon on October 22, 2020, or
if necessary due to inclement weather continued through noon on October
23, 2020.
    After NPRM had been sent to the Office of the Federal Register and
scheduled for publication, the Coast Guard was notified by the film
company that they were making three changes to the project. First, the
filming date at Spa Creek within Market Slip (Ego Alley) was
rescheduled from October 19, 2020, to October 22, 2020 (additional rain
date of October 23, 2020, if needed.) Second, the company also informed
the Coast Guard that another vessel would be used during filming at
this location. No changes to the filming hours at this location were
made. Filming is scheduled to take place from 5 a.m. to noon on October
22nd (with additional filming on October 23rd if necessary due to
inclement weather on the preceding dates). Finally, the film company
notified the Coast Guard that the filming scheduled for the location
across the width of Spa Creek between Annapolis City Dock and Eastport
had been cancelled.
    Due to the date of the scheduled event, the Coast Guard did not
have time to publish a supplemental notice of proposed rulemaking
(SNPRM). To the extent, if any, that the Coast Guard's inability to
publish a supplemental notice of proposed rulemaking invalidates the
notice requirement required by the Administrative Procedure Act, the
Coast Guard issues this temporary rule without prior notice and
opportunity to comment pursuant to authority under section 4(a) of the
Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because it is impracticable and contrary to
the public interest to do so. Immediate action is needed to protect
persons and vessels from the hazards associated with this event. It is
impracticable and contrary to the public interest to publish an NPRM or
SNPRM because a final rule needs to be in place by October 22, 2020, to
minimize potential danger to the film crew and nearby public.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying the effective date of
this rule would be impracticable and contrary to the public interest
because immediate action is needed to restrict vessel traffic to
protect life, property and the environment and respond to the potential
safety hazards associated with the film project.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 46 U.S.C.
70034 (previously 33 U.S.C. 1231). The Captain of the Port Maryland-
National Capital Region (COTP) has determined that potential hazards
associated with the film project will be a safety concern for anyone
within Market Slip (Ego Alley), Annapolis, MD, during filming. The
purpose of this rule is to ensure safety of vessels and the navigable
waters in the safety zone before, during, and after the scheduled
event.

IV. Discussion of Comments

    We received 7 comments on our NPRM published September 11, 2020.
The comments are available for public inspection at www.regulations.gov
under docket USCG-2020-0511. We address the commenter's concerns below.

1. Is it necessary for the Coast Guard to issue this rule?

    A few commenters questioned whether it was necessary for the Coast
Guard to issue a rule (create a safety zone) for this event. The Coast
Guard has determined that access to the water, shoreline to shoreline,
in the area near where filming will take place needs to be restricted
to ensure the safety of those involved in the filming and the nearby
public. Safety zones are only necessary under certain conditions. Not
every event on the water requires access to be restricted. A safety
zone for this event is needed because the project is likely to pose an
extra or unusual hazard to the safety of human life on and near the
navigable waters of the United States at Market Slip (Ego Alley),
Annapolis MD. Hazardous activities associated with the project include
aerial stunt car jumps with minimum heights across the entire width of
the waterway. Filming and associated activities may be conducted on the
water or shore area.\1\ The Coast Guard is issuing this rule under the
authority of 46 U.S.C. 70034.
---------------------------------------------------------------------------

    \1\ See 33 CFR 165.20 (definition of ``safety zone'').
---------------------------------------------------------------------------

2. Why didn't the Coast Guard provide specifics about the filming
project, such as what the company is filming?

    Some commenters expressed concern about a lack of specificity of
the planned activities associated with the film project. Certain
details of the planned event were still being developed at the time of
publishing the proposed rule. The Coast Guard wanted to ensure the
public was afforded an opportunity to comment on its proposal, even if
final details had not yet been provided by the film company. The Coast
Guard is focused on the importance of identifying and mitigating the
potential hazards posed by the event, not on items such as what the
film project is actually filming or who may be involved.

3. Will all of Spa Creek be blocked?

    One commenter requested clarification about whether the entire
width of Spa Creek could be covered by the safety zone and whether it
would include navigable waters immediately adjacent to the Annapolis
City Dock.

Yes, it would have. However, with the changes made by the film company,
the safety zone no longer covers all of Spa Creek, but covers only all
navigable waters of Spa Creek within Market Slip (Ego Alley), from
shoreline to shoreline, within coordinates specified in the regulation.
It includes navigable waters immediately adjacent to the Annapolis City
Dock. Coast Guard vessels will be present to enforce this safety zone.
No persons or vessels will be authorized to transit the area of the
safety zone during actual filming, however, they may be allowed to do
so immediately before and after, and at the discretion of the COTP or
the COTP's representative, following consultation with on scene film
project representatives. Waterway users can seek permission to enter
the safety zone by contacting the COTP or the COTP's representative by
telephone at<PHONE_NUMBER> or on Marine Band Radio VHF-FM channel 16.
The Coast Guard vessels enforcing this safety zone can be contacted on
Marine Band Radio VHF-FM channel 16.

5. Why was there a 15-day comment period rather than the normal 30
days?

    One commenter asked why the Coast Guard only provided a 15-day
comment period rather than the agency's normal 30 days. The Coast Guard
considers public participation essential to effective rulemaking.
However, the Administrative Procedure Act does not specify a minimum
time for submission of written comments. And, while the Coast Guard
normally tries to allow 30 days of comment, cases and circumstances may
arise that make it prudent to have a shorter comment period.\2\ It was
not possible to publish the NPRM for this action sooner as the
necessary details were not yet available to the Coast Guard. And, we
were concerned that a 30-day comment period would not leave the agency
enough time to review all comments, respond to any significant
comments, and have a final rule drafted and published in the Federal
Register in time for the scheduled event. Considering all the factors--
the time frame before the event, the length of the NPRM, the relatively
short proposed regulatory text, and the location of the event--we felt
that 15 days allowed sufficient time for members of the interested
public to review the notice and provide us with informed feedback on
the proposal. This analysis in determining the sufficiency of a 15-day
comment period is consistent with the legislative history of the
Administrative Procedure Act, which indicates that an NPRM ``must be
sufficient to fairly apprise interested parties of the issues involved,
so that they may present responsive data or argument.'' \3\
---------------------------------------------------------------------------

    \2\ See 33 CFR 1.05-15.
    \3\ Jeffrey S. Lubbers, A Guide to Federal Agency Rulemaking 273
(5th ed.2012) (citing Administrative Procedure Act: Legislative
History, S. Doc. No. 248 79-258 (1946)).
---------------------------------------------------------------------------

6. Did the Coast Guard consider impacts to small business?

    One commenter was concerned about whether or not their company
would be allowed to conduct a planned sailing cruise for the affected
area of Annaopolis Harbor and Spa Creek. The Coast Guard's rule allows
vessels desiring to transit to or from local waterside businesses
located within the safety zone during enforcement to seek permission to
enter the zone. Such vessels can contact the Coast Guard vessels
enforcing this safety zone on Marine Band Radio VHF-FM channel 16
(156.8 MHz).

V. Changes From the NPRM and This Final Rule

    The Coast Guard amended the regulatory text from that proposed in
the NPRM to account for the date change to the first safety zone and
the removal of the second safety zone. Otherwise, this rule adopts the
text of the NPRM without change.
    This rule establishes a temporary safety zone from 5 a.m. on
October 22, 2020, to noon on October 23, 2020. The safety zone will
cover all navigable waters of Spa Creek, within Market Slip (Ego
Alley), from shoreline to shoreline, bounded on the southeast by a line
commencing at latitude 38[deg]58'34.2'' N, longitude 076[deg]29'05.6''
W, thence southwest to latitude 38[deg]58'32.9'' N, longitude
076[deg]29'06.4'' W, located at Annapolis, MD. The duration of the zone
is intended to ensure the safety of vessels and these navigable waters
before, during, and after the scheduled 5 a.m. to noon film project.
Except for vessels operated by Hoonigan Industries and marine
equipment, which includes any vessel, barge or other equipment operated
by Smith Marine Towing, Inc., or its subcontractors, no vessel or
person will be permitted to enter this safety zone without obtaining
permission from the COTP or a designated representative. The COTP will
notify the public that the safety zone will be enforced by all
appropriate means to the affected segments of the public, including
publication in the Federal Register, as practicable, in accordance with
33 CFR 165.7(a). Such means of notification may also include, but are
not limited to, Broadcast Notice to Mariners or Local Notice to
Mariners. Vessels or persons violating this rule are subject to the
penalties set forth in 46 U.S.C. 70036 (previously codified in 33
U.S.C. 1232) and 46 U.S.C. 70052 (previously codified in 50 U.S.C.
192).

VI. Regulatory Analyses

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

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This rule has not been
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, this rule has not been reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt
from the requirements of Executive Order 13771.
    This regulatory action determination is based on the size,
location, duration, and time-of-day, day-of-week and time-of-year of
the safety zone. Vessel traffic will be able to safely transit around
this safety zone which will impact a small designated area of the Spa
Creek within Market Slip (Ego Alley) for 14 total enforcement hours.
Moreover, the Coast Guard will issue a Broadcast Notice to Mariners via
VHF-FM marine channel 16 about the zone, and the rule will allow
vessels to seek permission to enter the zone.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard received no comments from the Small Business
Administration on this rulemaking. The Coast Guard certifies under 5
U.S.C. 605(b) that this rule will not have a significant economic
impact on a substantial number of small entities.
    While some owners or operators of vessels intending to transit the
safety

zone may be small entities, for the reasons stated in section V.A.
above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
call or email the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

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

D. Federalism and Indian Tribal Governments

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

E. Unfunded Mandates Reform Act

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

F. Environment

    We have analyzed this rule under Department of Homeland Security
Directive 023-01, Rev. 1, associated implementing instructions, and
Environmental Planning COMDTINST 5090.1 (series), which guide the Coast
Guard in complying with the National Environmental Policy Act of 1969
(42 U.S.C. 4321-4370f), and have determined that this action is one of
a category of actions that do not individually or cumulatively have a
significant effect on the human environment. This rule involves a
safety zone lasting 14 total enforcement hours that will prohibit entry
within a portion of Spa Creek within Market Slip (Ego Alley). It is
categorically excluded from further review under paragraph L60(a) of
Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. A
Record of Environmental Consideration supporting this determination is
available in the docket. For instructions on locating the docket, see
the ADDRESSES section of this preamble.

G. Protest Activities

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

List of Subjects in 33 CFR Part 165

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

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

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

    Authority: 46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

0
2. Add Sec.  165.T05-0511 to read as follows:

Sec.  165.T05-0511   Safety Zone; Spa Creek, Annapolis, MD.

    (a) Location. The following area is a safety zone: All navigable
waters of Spa Creek, within Market Slip (Ego Alley), from shoreline to
shoreline, bounded on the southeast by a line commencing at latitude
38[deg]58'34.2'' N, longitude 076[deg]29'05.6'' W, thence southwest to
latitude 38[deg]58'32.9'' N, longitude 076[deg]29'06.4'' W, located at
Annapolis, MD. These coordinates are based on datum NAD 83.
    (b) Definitions. As used in this section--
    Captain of the Port (COTP) means the Commander, U.S. Coast Guard
Sector Maryland-National Capital Region.
    Designated representative means any Coast Guard commissioned,
warrant, or petty officer who has been authorized by the Captain of the
Port Maryland-National Capital Region to assist in enforcing any safety
zone described in paragraph (a) of this section.
    Marine equipment means any vessel, barge or other equipment
operated by Smith Marine Towing, Inc. or its subcontractors.
    (c) Regulations. (1) Under the general safety zone regulations in
subpart C of this part, you may not enter the safety zone described in
paragraph (a) of this section unless authorized by the COTP or the
COTP's designated representative. Except for vessels operated by
Hoonigan Industries and marine equipment, all vessels underway within
this safety zone at the time it is activated are to depart the zone.
    (2) To seek permission to enter, contact the COTP or the COTP's
representative by telephone at<PHONE_NUMBER> or on Marine Band Radio
VHF-FM channel 16 (156.8 MHz). The Coast Guard vessels enforcing this
section can be contacted on Marine Band Radio VHF-FM channel 16 (156.8
MHz).
    (3) Those in the safety zone must comply with all lawful orders or
directions given to them by the COTP or the COTP's designated
representative.
    (d) Enforcement officials. The U.S. Coast Guard may be assisted in
the patrol and enforcement of the safety zone by Federal, State, and
local agencies.
    (e) Enforcement period. This section will be enforced from 5 a.m.
to noon on October 22, 2020, or if necessary due to inclement weather
on October 22, 2020, from 5 a.m. to noon on October 23, 2020.

    Dated: October 7, 2020.
Joseph B. Loring,
Captain, U.S. Coast Guard, Captain of the Port Maryland-National
Capital Region.
[FR Doc. 2020-22562 Filed 10-9-20; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 79, Number 249 (Tuesday, December 30, 2014)]
[Notices]
[Pages 78543-78547]
[FR Doc No: 2014-30443]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73907; File No. SR-OCC-2014-24]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Concerning Extended and
Overnight Trading Sessions

December 22, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 12, 2014, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by OCC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change is filed by OCC in connection with a
proposed change to its operations concerning the clearance of confirmed
trades executes in extended and overnight trading sessions
(hereinafter, ``overnight trading sessions'') offered by exchanges for
which OCC provides clearance and settlement services.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Purpose
    This proposed rule change is being filed in connection with a
proposed change to OCC's operations concerning the clearance of
confirmed trades executed in overnight trading sessions offered by
exchanges for which OCC provides clearance and settlement services. OCC
currently clears overnight trading activity for CBOE Futures Exchange,
LLC (``CFE'').\3\ The total number of trades submitted to OCC from
overnight trading sessions is nominal, typically less than 3,000
contracts per session. However, OCC has recently observed an industry
trend whereby exchanges are offering overnight trading sessions beyond
traditional hours. Exchanges offering overnight trading sessions have
indicated that such sessions benefit market participants by providing
additional price transparency and hedging opportunities for products
traded in such sessions, which, in turn, promotes market stability.\4\
In light of this trend, OCC proposes to implement a framework for
clearing trades executed in such sessions that includes: (1)
Qualification criteria used to approve clearing members for overnight
trading sessions, (2) systemic controls to identify trades executed
during overnight trading sessions by clearing members not approved for
such sessions, (3) enhancements to OCC's overnight monitoring of trades
submitted by exchanges during overnight trading sessions, (4)
enhancements to OCC's credit controls with respect to monitoring
clearing members' credit risk during overnight trading sessions,
including procedures for contacting an exchange offering overnight
trading sessions in order to invoke use of the exchange's kill switch,
and (5) taking appropriate disciplinary action against clearing members
who attempt to clear during overnight trading session without first
obtaining requisite approvals. These changes (described in greater
detail below) are designed to reduce and mitigate the risks associated
with clearing trades executed in overnight trading sessions. In
addition, the only products that will be eligible for overnight trading
sessions are index options and index futures products.
---------------------------------------------------------------------------

    \3\ ELX Futures LP (``ELX'') previously submitted overnight
trading activity to OCC, but currently does not submit trades from
overnight trading sessions to OCC. OCC will re-evaluate ELX's risk
controls in the event ELX re-institutes its overnight trading
sessions.
    \4\ See CFE-2014-010 at http://cfe.cboe.com/publish/CFErulefilings/SR-CFE-2014-010.pdf.
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    OCC's standards for determining whether to provide clearing
services for overnight trading sessions offered by an exchange and the
implementation of a framework are designed to work in conjunction with
the risk controls of the exchanges that offer overnight trading
sessions. OCC would confirm an exchange's risk controls as well as its
staffing levels as they relate to overnight trading sessions to
determine if OCC may reasonably rely on such risk controls to reduce
risk presented to OCC by the exchange's overnight trading sessions.
Such exchange risk controls will consist of: (1) Price reasonability
checks, (2) controls to prevent orders from being executed beyond a
certain percentage (determined by the exchange) from the initial
execution price, (3) activity based protections which focus on risk
beyond price, such as a high number of trades occurring in a set period
of time, and (4) kill switch capabilities, which may be initiated by
the exchange and can cancel all open quotes or all orders of a
particular participant. OCC believes that confirming the existence of
applicable pre-trade risk controls as well as overnight staffing at the
relevant exchanges is essential to mitigating risks

presented to OCC from overnight trading sessions.\5\ Providing clearing
services to exchanges offering such sessions is consistent with OCC's
mission to provide market participants with clearing and risk
management solutions that respond to changes in the marketplace and may
result in increased cleared contract volume.
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    \5\ Comparable controls are applied to futures and future option
trades executed in overnight trading sessions currently cleared by
OCC, although such controls have been implemented by clearing
futures commission merchants (``clearing FCMs'') pursuant to
Commodity Futures Trading Commission (``CFTC'') Regulation 1.73,
which also requires such clearing FCMs to monitor for adherence to
such controls during regular and overnight trading sessions. OCC
believes that it may reasonably rely on such regulation to reduce
risk presented to OCC during futures markets overnight trading
sessions. See 17 CFR 1.73. OCC also confirmed CFE maintains kill
switch capabilities.
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Qualification Criteria
    In order to mitigate risks associated with clearing for overnight
trading sessions, clearing members that participate in such trading
sessions would be required to provide contact information to OCC for
operational and risk personnel available to be contacted by OCC during
such sessions. In addition, OCC would require that clearing members
participating in an overnight trading session to post additional margin
in a designated account in order to mitigate against the risk that OCC
cannot draft a clearing member's bank account during an overnight
trading session.\6\ OCC would also adopt a procedure whereby, on a
quarterly basis, it confirms its record of clearing members eligible
for overnight trading sessions with a similar record maintained by
exchanges offering such overnight trading sessions.
---------------------------------------------------------------------------

    \6\ Clearing members will be required to designate a proprietary
bank account to ensure that OCC has a general lien on the assets in
the account and can use them to satisfy any obligation of the
clearing member to OCC.
---------------------------------------------------------------------------

    With respect to providing operational and risk contacts, under OCC
Rule 201, each clearing member is required to maintain facilities for
conducting business with OCC, and a representative of the clearing
member authorized in the name of the clearing member to take all action
necessary for conducting business with OCC is required to be available
at the facility during such hours as may be specified from time-to-time
by OCC. Similarly, OCC Rules 214(c) and (d) require clearing members to
ensure that they have the appropriate number of qualified personnel and
to maintain the ability to process anticipated volumes and values of
transactions. OCC would use this existing authority to require clearing
members trading during overnight trading sessions to maintain
operational and risk staff that may be contacted by OCC during such
sessions.
    OCC would impose upon clearing members qualified to participate in
overnight trading sessions additional margin requirement in an amount
of the lesser of $10 million or 10% of the clearing member's net
capital (``Additional Margin''), which would be equal to the first
monitoring risk threshold (described below) and which would be
collected the morning before each overnight trading sessions.\7\
Clearing members must identify the proprietary account that would be
charged the Additional Margin amount. The Additional Margin requirement
is intended to provide OCC with additional margin assets should a
clearing member's credit risk increase during overnight trading
sessions. OCC proposes to adopt a process whereby each morning OCC
Financial Risk Management staff would assess the Additional Margin
requirement against clearing members eligible to participate in
overnight trading sessions. Clearing members that do not have
sufficient excess margin on deposit with OCC to meet the Additional
Margin amount would be required to deposit additional funds with OCC to
satisfy the Additional Margin requirement.\8\ This process would be
adopted under existing rule authority.
---------------------------------------------------------------------------

    \7\ Clearing members approved for overnight trading sessions who
do not meet the Additional Margin requirement for a given overnight
trading session will be treated like a clearing member not approved
overnight trading sessions, as described below.
    \8\ Under OCC Rule 601, OCC has the discretion to fix the margin
requirement for any account at an amount that it deems necessary or
appropriate under the circumstances to protect the interests of
clearing members, OCC and the public.
---------------------------------------------------------------------------

    Moreover, OCC also would confirm that an exchange offering
overnight trading sessions has adopted a procedure whereby such
exchange would contact OCC when a trader requests trading privileges
during overnight trading sessions. The purpose of this contact is to
verify that the trader's clearing firm (i.e., the OCC clearing member)
is approved for overnight trading sessions. If the applicable OCC
clearing member is not approved for overnight trading sessions, then
the clearing member must receive OCC's approval for overnight trading
sessions, or the exchange would not provide the trader trading
privileges during overnight trading sessions. Moreover, OCC would
confirm that an exchange offering overnight trading sessions has
implemented a procedure to periodically (i.e., quarterly) validate its
record of approved clearing firms against OCC's record of clearing
members approved for overnight trading sessions. Any discrepancies
between the two records would be promptly resolved by either the
clearing member obtaining approval at OCC for overnight trading
sessions, or by the exchange revoking the clearing firm's trading
privileges for overnight trading sessions.
Systemic Controls
    OCC plans to implement system changes so that trades submitted to
OCC during overnight trading sessions that have been executed by
clearing members not approved for such trading sessions would be
reviewed by OCC staff after acceptance but before being processed (each
such trade a being a ``Reviewed Trade''). OCC would contact the
submitting exchange regarding each Reviewed Trade in order to determine
if the trade is a valid trade. If the exchange determines that the
Reviewed Trade was in error such that, as provided in Article VI,
Section 7(c), new or revised trade information is required to properly
clear the transaction, OCC expects the exchange would instruct OCC to
disregard or ``bust'' the trade. If the exchange determines that the
Reviewed Trade was not in error, then OCC would clear the Reviewed
Trade and take appropriate disciplinary action against the non-approved
clearing member, as described below. OCC believes that clearing the
Reviewed Trade is appropriate in order to avoid potentially harming the
clearing member approved for overnight trading sessions that is on the
opposite side of the transaction.
Overnight Monitoring
    OCC plans to implement additional overnight monitoring in order to
better monitor clearing members' credit risk during overnight trading
sessions. Such monitoring of credit risk is similar to existing OCC
practices concerning futures cleared during overnight trading hours and
includes automated processes within ENCORE to measure, by clearing
member: (i) The aggregate mark-to-market amounts of a clearing member's
positions, including positions created during overnight trading, based
on current prices using OCC's Portfolio Revaluation system, (ii) the
aggregate incremental margin produced by all positions resulting from
transactions executed during overnight trading, and (iii) with respect
to options cleared during overnight trading hours, the aggregate net
trade premium positions resulting from trades executed during overnight
trading (each of these measures being a ``Credit Risk Number''). Hourly
credit reports would

be generated by ENCORE containing the Credit Risk Numbers expressed in
terms of both dollars and, except for the mark-to-market position
values, as a percentage of net capital for each clearing member trading
during overnight trading sessions. The Credit Risk Numbers are the same
information used by OCC staff to evaluate clearing member exposure
during regular trading hours and, in addition to OCC's knowledge of its
clearing members' businesses, are effective measures of the risk
presented to OCC by each clearing member. OCC's Operations staff would
review such reports as they are generated and, in the event that any of
the Credit Risk Numbers for positions established by a clearing member
during an overnight trading session exceeds established thresholds,
staff would alert OCC's Market Risk staff \9\ of the exceedance in
accordance with established procedures, as described below. Market Risk
staff would follow a standardized process concerning such exceedances,
including escalation to OCC's management, if required by such process.
Given the nominal volume of trades executed in overnight trading
sessions that are presently submitted for clearance, no changes in
current staffing levels that support overnight clearing activities is
contemplated at this time, however, such staffing levels will be
periodically assessed and adjusted, as appropriate. As part of the
overnight clearing activities, OCC has, however, designated an on-call
Market Risk duty officer who would be responsible for reviewing issues
that arise when clearing for overnight trading session and determining
what measures to be taken as well as additional escalation, if
necessary.
---------------------------------------------------------------------------

    \9\ OCC's Member Services staff will also receive alerts in
order to contact clearing members as may be necessary.
---------------------------------------------------------------------------

    With respect to OCC's escalation thresholds, if any Credit Risk
Number of a clearing member approved for overnight trading sessions is
$10 million or more, or any Credit Risk Number equals 10% or more of
the clearing member's net capital, OCC's Operations staff would be
required to provide email notification to Market Risk and Member
Services staff. If any Credit Risk Number of a clearing member not
approved for overnight trading sessions is $10 million or more, or any
Credit Risk Number equals 10% or more of the clearing member's net
capital, OCC's Operations would also notify Market Risk and Member
Services staff as well as its senior management. Such departments would
take action to prevent additional trading by the non-approved clearing
member, including contacting the exchange to invoke use of the
exchange's kill switch.
    If any Credit Risk Number of a clearing member approved for
overnight trading sessions is $50 million or more, or equals 25% or
more of the clearing member's net capital, Operations staff would be
required to contact, by telephone: (i) Market Risk and Member Services,
(ii) the applicable exchange for secondary review, and (iii) the
clearing member's designated contacts. The on-call Market Risk duty
officer would also consider if additional action is necessary, which
may include contacting a designated executive officer in order to issue
an intra-day margin call, increase the clearing member's margin
requirement in order to prevent the withdrawal of a specified amount of
excess margin collateral, if any, the clearing member has on deposit
with OCC or contacting the exchange in order to invoke use of its kill
switch. If any Credit Risk Number is $75 million or more, or equals 50%
or more of the clearing member's net capital, Operations staff would be
required to contact, by telephone, Market Risk staff, the on-call
Market Risk duty officer and a designated executive officer. Such
officer would be responsible for reviewing the situation and
determining whether to implement credit controls, which are described
in greater detail below and include: Issuing an intra-day margin call,
increasing a clearing member's margin requirement in order to prevent
the withdrawal of a specified amount of excess margin collateral, if
any, the clearing member has on deposit with OCC, whether further
escalation is warranted in order for OCC to take protective measures
pursuant to OCC Rule 305, or contact the exchange in order to invoke
use of its kill switch. OCC chose the above described escalation
thresholds based on its analysis of historical overnight trading
activity across the futures industry. OCC believes that these
thresholds strike an appropriate balance between effective risk
monitoring and operational efficiency.
Credit Controls
    In order to address credit risk associated with trading during
overnight trading sessions, and as described above, OCC would collect
Additional Margin from clearing members as well as monitor and analyze
the impact that positions established during such sessions have on a
clearing member's overall exposure. Should the need arise based on
threshold breaches described above, and pursuant to OCC Rule 609, OCC
may require the deposit of additional margin (``intra-day margin'') by
any clearing member that increases its incremental risk as a result of
trading activity during overnight trading sessions. Accordingly, a
clearing member's positions established during such sessions will be
incorporated into OCC's intra-day margin process. Should a clearing
member's exposure significantly increase while settlement banks are not
open to process an intra-day margin call, OCC has the authority under
OCC Rule 601 to increase a clearing member's margin requirement which
would restrict its ability to withdraw excess margin collateral. The
implementation of these measures is discussed more fully below.
    In the event that a clearing member's exposure during overnight
trading sessions causes a clearing member to exceed OCC's intra-day
margin call threshold for overnight night trading sessions, OCC would
require the clearing member to deposit intra-day margin equal to the
increased incremental risk presented by the clearing member.
Specifically, if a clearing member has a total risk charge \10\
exceeding 25% (a reduction of the usual figure of 50%), as computed
overnight by OCC's STANS system, and a loss of greater than $50,000
from an overnight trading session(s), as computed by Portfolio
Revaluation, OCC would initiate an intra-day margin call. OCC would
know at approximately 8:30 a.m. (Central Time) if an intra-day margin
call on a clearing member would be initiated based on breaches of these
thresholds. This ``start of business'' margin call is in addition to
daily margin OCC collects from clearing members pursuant to OCC Rule
605, any intra-day margin call that OCC may initiate as a result of
regular trading sessions or special margin call that OCC may initiate.
---------------------------------------------------------------------------

    \10\ Total risk charge is a number derived from STANS outputs
and is the sum of expected shortfall, stress test charges and any
add-on charges computed by STANS. STANS is OCC's proprietary margin
methodology.
---------------------------------------------------------------------------

    In addition to, or instead of, requiring additional intra-day
margin, OCC Rule 601 \11\ and OCC's Clearing Member Margin Call Policy
work together to authorize Market Risk staff to increase a clearing
member's margin requirement which may be in an amount equal to an
intra-day margin call.\12\ (Any increased

margin requirement will remain in effect until the next business day.)
This action would immediately prevent clearing members from withdrawing
any excess margin collateral (in the amount of the increased margin
requirement) the clearing member has deposited with OCC. With respect
to clearing trades executed in overnight trading sessions, and in the
event OCC requires additional margin from a clearing member, Market
Risk staff may use increased margin requirements as a means of
collateralizing the increase in incremental risk a clearing member
incurred during such sessions without having to wait for banks to open
to process an intra-day margin call.\13\ Such action may be taken by
OCC instead of or in addition to issuing an intra-day margin call
depending on the amount of excess margin a clearing member has on
deposit with OCC and the amount of the incremental risk presented by
such clearing member. The expansion of OCC's intra-day margin call
process as described in the preceding paragraph, including OCC's
ability to manually increase clearing members' margin requirements,
would mitigate the risk that OCC is under-collateralized as a result of
overnight trading hours.
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    \11\ In addition, OCC Rule 601 provides OCC with the authority
to fix the margin requirement for any account or any class of
cleared contracts at such amount as it deems necessary or
appropriate under the circumstances to protect the respective
interests of clearing members, OCC and the public.
    \12\ Clearing members frequently deposit margin at OCC in excess
of requirements.
    \13\ Clearing members would be able to substitute the locked-up
collateral during normal time frames (i.e., 6:00 a.m. to 5:00 p.m.
(Central Time) for equity securities).
---------------------------------------------------------------------------

    Moreover, a designated executive officer may call an exchange
offering overnight trading sessions to invoke use of its kill switch.
The kill switch would prevent a clearing member (or the market
participant clearing through a clearing member) from executing trades
on the exchange during a given overnight trading session or, if needed,
stop all trading during a given overnight trading session. Finally,
pursuant to OCC Rule 305, the Executive Chairman or the President of
OCC, in certain situations, has the authority to impose limitations and
restrictions on the transactions, positions and activities of a
clearing member. This authority would be used, as needed, in the event
a clearing member accumulates significant credit risk during overnight
trading sessions, or a clearing member's activities during such trading
sessions otherwise warrant OCC taking protective action.
Rule Enforcement Actions
    In order to deter clearing members from attempting to participate
in overnight trading sessions without authorization as well as
appropriately enforce the above described processes, OCC would ensure
that any attempt by a clearing member to participate in overnight
trading sessions without first obtaining the necessary approval would
result in the initiation of a rule enforcement action against such
clearing member. As described above, clearing members not approved for
overnight trading sessions who trade during such overnight sessions
would have their trades reviewed by OCC staff. Clearing members who
attempted to participate in overnight trading sessions that did not
obtain the necessary approval to do so would be subject to a minor rule
violation fine.\14\ In addition, if a clearing member's operational or
risk contacts for overnight trading sessions were unavailable had OCC
attempted to contact such individuals, the clearing member would be
subject to a minor rule violation fine. OCC has existing processes in
place to monitor for clearing member violations of OCC's rules and such
processes would also apply to clearing member activity during overnight
trading sessions.
---------------------------------------------------------------------------

    \14\ See OCC Rule 1201(b).
---------------------------------------------------------------------------

 2. Statutory Basis
    OCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \15\ because it provides for the
safeguarding of securities and funds in the custody and control of OCC.
OCC believes that the proposed changes described above will provide OCC
with the tools necessary to mitigate risks that may occur as a result
of overnight trading sessions thereby providing for the safeguarding of
securities and funds in the custody and control of OCC. As described
above, OCC will implement a risk monitoring processes designed to
identify increases in credit risk presented to OCC as a result of
overnight trading sessions as well as implement additional safeguards
designed to mitigate operational risk associated with overnight trading
sessions. These practices are designed to identify and mitigate risks
that may be presented to OCC as a result of overnight trading sessions,
and provide for the safeguarding of securities and funds in the custody
and control of OCC. The proposed rule change is not inconsistent with
the existing rules of OCC, including any other rules proposed to be
amended.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose a
burden on competition.\16\ The proposed rule change concerns
operational changes that are designed to reduce OCC's exposure to risk
as a result of clearing member activities during overnight trading
sessions and are protective in nature. These changes will be applied
uniformly across all clearing members and all exchanges participating
in overnight trading sessions. Accordingly, OCC does not believe that
the proposed rule change would impose a burden on competition.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2014-24 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-OCC-2014-24. 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 OCC and on OCC's Web site at
http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_14_24.pdf. 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-OCC-
2014-24 and should be submitted on or before January 20, 2015.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Brent J. Fields,
Secretary.
[FR Doc. 2014-30443 Filed 12-29-14; 8:45 am]
BILLING CODE 8011-01-P


UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Served: July 29, 2002

Joint Application of American Airlines, Inc. and Swiss International Air
Lines Ltd.

for Approval of and Antitrust Immunity for Alliance Agreement

under 49 U.S.C. §§ 41308 and 41309 (Docket OST-2002-12688)

NOTICE ESTABLISHING PROCEDURAL DATES

On June 28, 2002, American Airlines and its affiliates and Swiss
International Air Lines Ltd. filed a joint application requesting
approval of and antitrust immunity for (1) a cooperative agreement
(Exhibit JA-1), and (2) all agreements among the applicants that
implement any part of the cooperative agreement or are entered into by
the applicants under the cooperative agreement (hereafter the
“Alliance Agreement”).  On June 28, the applicants filed a joint
Motion under 14 C.F.R. 302.12 (Rule 12) of our regulations seeking
confidential treatment for supporting documents and information.  On
July 2, American Airlines, Inc. filed a supplementary Motion under 14
C.F.R. 302.12 (Rule 12) of our regulations seeking confidential
treatment for additional documents and information.  Both Motions state
that this material is proprietary, commercially sensitive, and
confidential in nature which qualifies for being withheld from public
disclosure.  The applicants ask that access to this material be limited
to counsel and outside experts for interested parties.

We have now finished our initial review.  We find the application is now
substantially complete.  We will require that answers to the application
be filed no later than 21 calendar days from the issue date of this
Notice, and that replies be filed no later than 7 business days after
the last day for filing an answer.

We shall serve this notice on all persons on the service list for this
docket.

By:

READ C. VAN DE WATER

Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide
Web at:

http://dms.dot.gov/search

 	Specifically, TWA Airlines LLC; American Eagle Airlines, Inc.; and
Executive Airlines, Inc. d/b/a American Eagle.

 	Answers to the Motion were due on July 10.  The Motion is unopposed.

 	See Joint Motions at 1.

 	We will rule on the merits of the Rule 12 Motion by subsequent order.
By Notice dated July 10, we granted immediate interim access to all
documents covered by the applicants’ Motion, or to any subsequent
materials that may be filed confidentially in this proceeding, to
counsel and outside experts for interested parties, consistent with
conditions agreed to by the Joint Applicants and imposed by the
Department in similar recent cases.  At the same time, we suspended the
procedural schedule of this case, pending a determination of
completeness.

 	We reserve the right to require the filing of additional information
deemed relevant to the proceeding at any time.

 PAGE

 PAGE   2


[Federal Register: February 20, 2008 (Volume 73, Number 34)]
[Notices]
[Page 9328-9330]
[DOCID:fr20fe08-67]

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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2005-0061; FRL-8349-8]

Azinphos-methyl; Product Cancellation Order and Amendments to
Terminate Uses

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: This notice publishes EPA's order for the cancellations and
amendments to terminate uses, voluntarily requested by the registrants
and accepted by the Agency, of products containing the pesticide
azinphos-methyl (AZM), pursuant to section 6(f)(1) of the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA), as amended. This
cancellation order follows an August 8, 2007 Federal Register Notice of
Receipt of Requests from the AZM registrants to voluntarily cancel and
amend to terminate uses of all their AZM product registrations by
September 30, 2012. Subject to the terms and conditions described in
Unit II below and except as provided in the existing stocks provisions
of the cancellation order, the order terminates distribution, sale and
use of AZM products labeled for use on Brussels sprouts and nursery
stock effective as of today's date; and prohibits use of such products
on Brussels spouts and nursery stock effective September 30, 2008;
terminates AZM use on walnuts, almonds, and pistachios effective
October 30, 2009; and cancels all AZM products effective September 30,
2012. The cancellation of AZM products serves to terminate the six
remaining uses of AZM (apples, pears, cherries, blueberries, alkali bee
beds, and parsley) on September 30, 2012. All distribution, sale and
use of such products will be prohibited as of that date except as
provided in the existing stocks order of the notice. While the alkali
bee bed use was not specifically identified in the registrants'
voluntary cancellation requests, the registrants requested cancellation
of all AZM products, which includes products labeled for the bee bed
use. These are the last AZM products registered for use in the United
States. In the August 8, 2007 notice, EPA indicated that it would issue
an order implementing the cancellations and amendments to terminate
uses, unless the Agency received substantive comments within the 30-day
comment period that would merit its further review of these requests.
The Agency did not receive any comments on the notice. Accordingly, EPA
hereby issues in this notice a cancellation order granting the
requested cancellations and amendments to terminate uses. Any
distribution, sale, or use of the AZM products subject to this
cancellation order is permitted only in accordance with the terms of
this order, including any existing stocks provisions.

DATES: This order is February 20, 2008.

FOR FURTHER INFORMATION CONTACT: Tom Myers, Special Review and
Reregistration Division (7508P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>; fax
number:<PHONE_NUMBER>; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Action Apply to Me?

    This action is directed to the public in general, and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides. Since others also may be interested, the Agency
has not attempted to describe all the specific entities that may be
affected by this action. If you have any questions regarding the
applicability of this action to a particular entity, consult the person
listed under FOR FURTHER INFORMATION CONTACT.

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

    1. Docket. EPA has established a docket for this action under
docket identification (ID) number EPA-HQ-OPP-2005-0061. Publicly
available docket materials are available either in the electronic
docket at http://www.regulations.gov, or, if only available in hard

copy, at the Office of Pesticide Programs (OPP) Regulatory Public
Docket in Rm. S-4400, One Potomac Yard (South Bldg.), 2777 S. Crystal
Dr., Arlington, VA. The hours of operation of this Docket Facility are
from 8:30 a.m. to 4 p.m., Monday through Friday, excluding legal
holidays. The Docket Facility telephone number is<PHONE_NUMBER>.
    2. Electronic access. You may access this Federal Register document
electronically through the EPA Internet under the Federal Register
listings at http://www.epa.gov/fedrgstr.

II. What Action is the Agency Taking?

    This notice announces the cancellation and amendments to terminate
uses, as requested by registrants, of all end-use and manufacturing-use
AZM products registered under section 3 and 24(c) of FIFRA. At the
request of EPA, the AZM registrants requested that EPA terminate
certain uses in 2007 and 2009 and cancel all remaining AZM product
registrations in 2012 (identified in Table 1 of this notice), subject
to certain terms and conditions. Specifically they requested the
deletion of the Brussels sprouts and nursery stock uses from their
registrations not sooner than the later of September 30, 2007 or 90
days from the date EPA approves draft

labeling submitted by the registrants (draft labeling was approved on
August 14, 2007); deletion of the walnut, almond, and pistachio uses
not sooner than October 30, 2009; and the cancellation of all AZM
registrations (thereby ending AZM use on apples, pears, cherries,
blueberries, alkali bee beds, and parsley) not sooner than September
30, 2012. Other terms and conditions include:
    1. A condition that the requests for termination of use and
voluntary cancellation shall not be made effective until EPA conducts
an independent scientific review of a submission from the registrants
requesting reconsideration of EPA's decision to maintain an inter-
species uncertainty factor in its risk assessment of AZM for
agricultural workers. EPA has conducted this review and provided its
response to the registrants.
    2. A condition that the requests for voluntary cancellation of all
AZM products shall not become effective unless:
    i. EPA holds at least one public meeting to obtain views regarding
the continued need for access to AZM prior to July 1, 2011 (EPA has
thus far held a series of public meetings under the auspices of the
Pesticide Program Dialogue Committee regarding the need for AZM and
issues related to the transition to alternatives); and
    ii. EPA makes a determination not later than November 1, 2011 for
the remaining uses of AZM whether to conduct a risk-benefit analysis
for AZM prior to the cancellation of these uses, and, if it so
determines, conducts such analysis not later than July 1, 2012.
    If the actions described above result in the retention of any AZM
use beyond the stop-use date (as provided in the existing stock
provisions below and in appendix A of the November 16, 2006 Final
Decisions for the Remaining Uses for Azinphos-methyl), the registrants
may request that product labeling be amended consistent with the terms
of such actions and EPA shall grant any amendment that is consistent
with such actions and the provisions of 40 CFR part 156.
    Affected registrations are listed in sequence by registration
number in Table 1 of this unit. EPA believes this is the complete list
of all such products; however, because the registrants requested
cancellation of all AZM products, the cancellation order and amendment
to terminate uses extend to all AZM products held by these registrants
irrespective of whether the products are specifically listed in the
tables below.

                   Table 1.--AZM Product Cancellations
------------------------------------------------------------------------
          EPA Registration Number                   Product Name
------------------------------------------------------------------------
264-722                                     Guthion Solupak 50% Wettable
                                             Powder in Water Soluble
                                             Packets
------------------------------------------------------------------------
264-733                                     Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
10163-78                                    Gowan Azinphos-M 50 WSB
------------------------------------------------------------------------
10163-95                                    Azinphos-methyl Technical
------------------------------------------------------------------------
11678-53                                    Cotnion-Methyl
------------------------------------------------------------------------
66222-11                                    Cotnion-Methyl Azinphos-
                                             methyl 50W
------------------------------------------------------------------------
66330-233                                   Azinphos-methyl 50W
------------------------------------------------------------------------
ID000006                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
NJ990010                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
OH020005                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
OR040020                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
TX030011                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
WA000001                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------
WA030035                                    Guthion Solupak 50% Wettable
                                             Powder Insecticide
------------------------------------------------------------------------

    Table 2 of this unit includes the names and addresses of record for
all registrants of the products in Table 1 of this unit, in sequence by
EPA company number. Please note, Guthion Technical Insecticide (264-
722) was transferred to Makhteshim Chemical Works LTD (11678-70) in
October 2007, and Guthion Solupak 50% Wettable Powder Insecticide (264-
733) was transferred to Makteshim-Agan of North America (66222-162) in
October 2007. In addition, the following Special Local Need
registrations will be cancelled immediately upon publication of this
notice: ID000006, NJ990010, OH020005, TX030011, and WA000001. Special
Local Need registrations OR040020 and WA030035 (both registered only
for alkali bee bed use) are subject to existing stocks provisions as
listed in Unit IV.2. of this notice.

     Table 2.--Registrants of Cancelled and/or Amended AZM Products
------------------------------------------------------------------------
            EPA Company Number                Company Name and Address
------------------------------------------------------------------------
264                                         Bayer Crop Science
                                            P.O. Box 12014
                                            2 T.W. Alexander Drive
                                            Research Triangle Park, NC
                                             27709
------------------------------------------------------------------------
11678                                       Makteshim Chemical Works LTD
                                            c/o Makteshim Agan of North
                                             America
                                            4515 Falls of Neuse RD STE
                                             300
                                            Raleigh, NC 27609
------------------------------------------------------------------------
66222                                       Makteshim-Agan of North
                                             America
                                            4515 Falls of Neuse RD STE
                                             300
                                            Raleigh, NC 27609
------------------------------------------------------------------------
10163                                       Gowan Company
                                            PO Box 5569
                                            Yuma, AZ 85366-5569
------------------------------------------------------------------------
66330                                       Arysta Lifescience North
                                             America Corporation
                                            15401 Weston Parkway, Suite
                                             150
                                            Cary, NC 27513
------------------------------------------------------------------------

III. Summary of Public Comments Received and Agency Response to
Comments

    During the public comment period provided, EPA received no comments
in response to the August 8, 2007 Federal Register notice (72 FR 44511)
(FRL-8134-7) announcing the Agency's receipt of the requests for
voluntary cancellations and amendments to terminate uses of AZM.

IV. Cancellation Order

    1. Cancellation and amendment. Pursuant to FIFRA section 6(f), EPA
hereby approves the requested cancellations and amendments to terminate
uses of AZM registrations identified in Table 1 of Unit II. and any
other AZM product that may be held by the registrants listed in Table 2
of Unit II. Accordingly, subject to the terms and conditions described
in Unit II. of this notice, the Agency orders that these AZM product
registrations are hereby canceled and amended as follows:
    i. Use of AZM products on Brussels sprouts and nursery stock is
prohibted as of September 30, 2008.

    ii. Use of AZM products on walnuts, almonds, and pistachios is
prohibited effective October 30, 2009
    iii. All AZM products currently held by any of the registrants
listed in Table 2 of Unit II are canceled effective September 30, 2012.
Any distribution, sale, or use of these products in a manner
inconsistent with this order, including the provisions in Unit IV.2
regarding the disposition of existing stocks, will be considered a
violation of section 12(a)(2)(K) and/or 12(a)(1)(A) of FIFRA.
    2. Existing Stocks. For purposes of this order, the term ``existing
stocks'' is defined, pursuant to EPA's existing stocks policy (56 FR
29362, June 26, 1991) as those stocks of registered pesticide products
which are currently in the United States and which were packaged,
labeled, and released for shipment prior to the effective date of the
amendment or cancellation action. This cancellation order includes the
following existing stocks provisions.
    a. Distribution or sale. i. Distribution or sale of products
bearing the Brussels sprouts and nursery stock uses is prohibited
effective as of February 20, 2008, except for the purposes of proper
disposal, reformulation, relabeling, or export consistent with section
17 of FIFRA, which activities may continue until such stocks are
depleted.
    ii. Distribution or sale of Special Local Need registrations
OR040020 and WA030035 bearing the alkali bee beds use is prohibited
after December 31, 2010 except the sale or distribution of such
products for the purposes of proper disposal, reformulation,
relabeling, or export consistent with section 17 of FIFRA, which
activities may continue until such stocks are depleted.
    iii. For products bearing all other uses, distribution or sale of
such products is prohibited after September 30, 2012 except the sale or
distribution of such products for the purposes of proper disposal,
reformulation, relabeling, or export consistent with section 17 of
FIFRA, which activities may continue until such stocks are depleted.
    b. Use. i. Use of products on Brussels sprouts and nursery stock is
prohibited as of February 20, 2008. Labels prohibit use on almonds,
walnuts, and pistachios after October 30, 2009.
    ii. Use of all azinphos methyl products subject to this notice for
any use is prohibited after September 30, 2012.
    Note that the stop use dates for the uses are also reflected on
amended product labeling. Any use of existing stocks must be consistent
with the directions for use on product labeling.

V. What is the Agency's Authority for Taking this Action?

    Section 6(f)(1) of FIFRA provides that a registrant of a pesticide
product may at any time request that any of its pesticide registrations
be canceled or amended to terminate one or more uses. FIFRA further
provides that, before acting on the request, EPA must publish a notice
of receipt of any such request in the Federal Register. Thereafter,
following the public comment period, the Administrator may approve such
a request.

List of Subjects

    Environmental protection, Pesticides and pests.

    Dated:February 12, 2008.
Steven Bradbury,
Director, Special Review and Reregistration Division, Office of
Pesticide Programs.
[FR Doc. E8-3112 Filed 2-19-08; 8:45 a.m.]

BILLING CODE 6560-50-S