[Federal Register Volume 82, Number 76 (Friday, April 21, 2017)]
[Notices]
[Pages 18818-18820]
[FR Doc No: 2017-08079]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2000-8398; FMCSA-2002-12294; FMCSA-2003-14223; FMCSA-
2004-19477; FMCSA-2005-20027; FMCSA-2005-20560; FMCSA-2006-24783;
FMCSA-2007-27333; FMCSA-2008-0398; FMCSA-2009-0054; FMCSA-2010-0082;
FMCSA-2010-0201; FMCSA-2010-0372; FMCSA-2010-0385; FMCSA-2011-0010;
FMCSA-2011-0024; FMCSA-2011-0057; FMCSA-2012-0337; FMCSA-2013-0021;
FMCSA-2013-0022; FMCSA-2013-0024; FMCSA-2014-0005; FMCSA-2014-0297;
FMCSA-2014-0300; FMCSA-2014-0301; FMCSA-2014-0302; FMCSA-2014-0304;
FMCSA-2014-0305]

Qualification of Drivers; Exemption Applications; Vision

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of renewal of exemptions; request for comments.

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SUMMARY: FMCSA announces its decision to renew exemptions for 82
individuals from the vision requirement in the Federal Motor Carrier
Safety Regulations (FMCSRs) for interstate commercial motor vehicle
(CMV) drivers. The exemptions enable these individuals to continue to
operate CMVs in interstate commerce without meeting the vision
requirement in one eye.

DATES: Each group of renewed exemptions was effective on the dates
stated in the discussions below and will expire on the dates stated in
the discussions below. Comments must be received on or before May 22,
2017.

ADDRESSES: You may submit comments bearing the Federal Docket
Management System (FDMS) Docket No. FMCSA-2000-8398; FMCSA-2002-12294;
FMCSA-2003-14223; FMCSA-2004-19477; FMCSA-2005-20027; FMCSA-2005-20560;
FMCSA-2006-24783; FMCSA-2007-27333; FMCSA-2008-0398; FMCSA-2009-0054;
FMCSA-2010-0082; FMCSA-2010-0201; FMCSA-2010-0372; FMCSA-2010-0385;
FMCSA-2011-0010; FMCSA-2011-0024; FMCSA-2011-0057; FMCSA-2012-0337;
FMCSA-2013-0021; FMCSA-2013-0022; FMCSA-2013-0024; FMCSA-2014-0005;
FMCSA-2014-0297; FMCSA-2014-0300; FMCSA-2014-0301; FMCSA-2014-0302;
FMCSA-2014-0304; FMCSA-2014-0305 using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
     Mail: Docket Management Facility; U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
e.t., Monday through Friday, except Federal Holidays.
     Fax: 1-202-493-2251.
    Instructions: Each submission must include the Agency name and the
docket number(s) for this notice. Note that all comments received will
be posted without change to http://www.regulations.gov, including any
personal information provided. Please see the Privacy Act heading below
for further information.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov at any time or Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., e.t., Monday through Friday,
except Federal holidays. The FDMS is available 24 hours each day, 365
days each year. If you want acknowledgment that we received your
comments, please include a self-addressed, stamped envelope or postcard
or print the acknowledgement page that appears after submitting
comments online.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to http://www.regulations.gov, as described in
the system of records notice (DOT/ALL-14 FDMS), which can be reviewed
at http://www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: Ms. Christine A. Hydock, Chief,
Medical Programs Division,<PHONE_NUMBER><EMAIL_ADDRESS>FMCSA,
Department of Transportation, 1200 New Jersey Avenue SE., Room W64-224,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.,
e.t., Monday through Friday, except Federal holidays. If you have
questions regarding viewing or submitting material to the docket,
contact Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may grant an exemption
for two years if it finds ``such exemption would likely achieve a level
of safety that is equivalent to or greater than the level that would be
achieved absent such exemption.'' The statute also allows the Agency to
renew exemptions at the end of the two-year period.
    The physical qualification standard for drivers regarding vision
found in 49 CFR 391.41(b)(10) states that a person is physically
qualified to driver a CMV if that person:

    Has distant visual acuity of at least 20/40 (Snellen) in each
eye without corrective lenses or visual acuity separately corrected
to 20/40 (Snellen) or better with corrective lenses, distant
binocular acuity of a least 20/40 (Snellen) in both eyes with or
without corrective lenses, field of vision of at least 70[deg] in
the horizontal meridian in each eye, and the ability to recognize
the colors of traffic signals and devices showing red, green, and
amber.

    The 82 individuals listed in this notice have requested renewal of
their exemptions from the vision standard in 49 CFR 391.41(b)(10), in
accordance with FMCSA procedures. Accordingly, FMCSA has evaluated
these applications for renewal on their merits and decided to extend
each exemption for a renewable two-year period

II. Request for Comments

    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the statutory level of safety should immediately
notify FMCSA. The Agency will evaluate any adverse evidence submitted
and, if safety is being compromised or if continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315, FMCSA will take immediate steps to revoke the
exemption of a driver.

III. Basis for Renewing Exemptions

    Under 49 U.S.C. 31315(b)(1), an exemption may be granted for no
longer than two years from its approval date and may be renewed upon
application. In accordance with 49 U.S.C. 31136(e) and 31315, each of
the 82 applicants has satisfied the renewal conditions for obtaining an
exemption from the vision requirement (65 FR 78256; 66 FR 16311; 67 FR
46016; 67 FR 57267; 68 FR 10301; 68 FR 13360; 68 FR 19596; 69 FR 62741;
69 FR 64806; 70 FR 2701; 70 FR 2705; 70 FR 12265; 70 FR 16886; 70 FR
16887; 70 FR 17504; 70 FR 30997; 71 FR 32183; 71 FR 41310; 71 FR 62147;
72 FR 1056; 72 FR 5489; 72 FR 11426; 72 FR 12665; 72 FR 12666; 72 FR
18726; 72 FR 25831; 72 FR 27624; 73 FR 61925; 73 FR 76440; 74 FR 7097;
74 FR 8842; 74 FR 9329; 74

FR 11988; 74 FR 11991; 74 FR 15584; 74 FR 15586; 74 FR 19270; 74 FR
21427; 75 FR 25917; 75 FR 25919; 75 FR 39727; 75 FR 39729; 75 FR 54958;
75 FR 70078; 75 FR 77942; 75 FR 80887; 76 FR 5425; 76 FR 7894; 76 FR
9856; 76 FR 12216; 76 FR 15361; 76 FR 17481; 76 FR 17483; 76 FR 18824;
76 FR 20076; 76 FR 20078; 76 FR 21796; 76 FR 25762; 76 FR 28125; 76 FR
29024; 77 FR 36338; 77 FR 52388; 77 FR 70534; 78 FR 9772; 78 FR 10251;
78 FR 12815; 78 FR 14410; 78 FR 16761; 78 FR 16762; 78 FR 16912; 78 FR
18667; 78 FR 20379; 78 FR 22596; 78 FR 22602; 78 FR 24300; 78 FR 26106;
78 FR 29431; 79 FR 24298; 79 FR 27681; 79 FR 38649; 79 FR 51642; 79 FR
63211; 80 FR 2471; 80 FR 2473; 80 FR 3308; 80 FR 6162; 80 FR 12248; 80
FR 12254; 80 FR 12547; 80 FR 14420; 80 FR 14223; 80 FR 15863; 80 FR
16500; 80 FR 16502; 80 FR 18693; 80 FR 18696; 80 FR 20558; 80 FR 20559;
80 FR 20562; 80 FR 22773; 80 FR 26320; 80 FR 29152; 80 FR 45573). They
have submitted evidence showing that the vision in the better eye
continues to meet the requirement specified at 49 CFR 391.41(b)(10) and
that the vision impairment is stable. In addition, a review of each
record of safety while driving with the respective vision deficiencies
over the past two years indicates each applicant continues to meet the
vision exemption requirements. These factors provide an adequate basis
for predicting each driver's ability to continue to drive safely in
interstate commerce. Therefore, FMCSA concludes that extending the
exemption for each renewal applicant for a period of two years is
likely to achieve a level of safety equal to that existing without the
exemption.
    In accordance with 49 U.S.C. 31136(e) and 31315, the following
groups of drivers received renewed exemptions in the month of July and
are discussed below:
    As of May 7, 2017, and in accordance with 49 U.S.C. 31136(e) and
31315, the following 43 individuals have satisfied the conditions for
obtaining a renewed exemption from the vision requirements (65 FR
78256; 66 FR 16311; 68 FR 10301; 68 FR 13360; 68 FR 19596; 69 FR 64806;
70 FR 2701; 70 FR 2705; 70 FR 12265; 70 FR 16886; 70 FR 16887; 72 FR
1056; 72 FR 5489; 72 FR 11425; 72 FR 12666; 72 FR 18726; 72 FR 25831;
73 FR 76440; 74 FR 7097; 74 FR 8842; 74 FR 11988; 74 FR 11991; 74 FR
15584; 74 FR 15586; 74 FR 21427; 75 FR 25917; 75 FR 39727; 75 FR 80887;
76 FR 7894; 76 FR 9856; 76 FR 12216; 76 FR 15361; 76 FR 20076; 76 FR
20078; 76 FR 21796; 77 FR 52388; 77 FR 70534; 78 FR 9772; 78 FR 10251;
78 FR 12815; 78 FR 14410; 78 FR 16761; 78 FR 16762; 78 FR 18667; 78 FR
20379; 78 FR 22596; 78 FR 22602; 79 FR 27681; 79 FR 38649; 79 FR 51642;
79 FR 63211; 80 FR 2471; 80 FR 2473; 80 FR 3308; 80 FR 6162; 80 FR
12248; 80 FR 12254; 80 FR 12547; 80 FR 14220; 80 FR 14223; 80 FR 15863;
80 FR 16500; 80 FR 16502; 80 FR 18693; 80 FR 20562; 80 FR 29152; 80 FR
33011):

Neal S. Anderson (MN)
Joseph L. Beverly (FL)
Rex A. Botsford (MI)
Rickie L. Brown (MS)
Roger C. Carson (IN)
Gregory L. Cooper (PA)
Kenneth D. Craig (VA)
Douglas S. Dalling (GA)
Terry J. Dare (IN)
William A. Donovan (WA)
Breck L. Falcon (LA)
John D. Fortino (NY)
Joe T. Gage (AR)
William D. Holt (AZ)
Shane M. Holum (WA)
Mark C. Jeffrey (MT)
Christopher J. Kane (VT)
Purvis W. Kills Enemy At Night (SD)
Roosevelt Lawson (AL)
Scottie W. Lewis (GA)
Eugene R. Lydick (VA)
Emanuel N. Malone (VA)
Roberto E. Martinez (WA)
David S. Mayo (VA)
Anthony R. Melton (SC)
Joe L. Meredith, Jr. (VA)
John W. Montgomery (MA)
Travis W. Neiwert (ID)
Thomas G. Normington (WY)
Mark A. Omps (WV)
Richard D. Pontious (OH)
Daniel A. Rau (NJ)
Kevin L. Riddle (FL)
James L. Rooney (WA)
Gary W. Shelton, Jr. (FL)
James A. Smith (WA)
Benjamin Stone (VA)
Clarence L. Swann, Jr. (AL)
Bill J. Thierolf (NE)
Michael G. Trueblood (IL)
Sean E. Twohig (NY)
Donald A. Uplinger II (OH)
Steven M. Vujicic (IL)

    The drivers were included in one of the following docket Nos:
FMCSA-2000-8398; FMCSA-2003-14223; FMCSA-2004-19477; FMCSA-2005-20027;
FMCSA-2007-27333; FMCSA-2008-0398; FMCSA-2009-0054; FMCSA-2010-0082;
FMCSA-2010-0372; FMCSA-2011-0010; FMCSA-2012-0337; FMCSA-2013-0021;
FMCSA-2013-0022; FMCSA-2014-0005; FMCSA-2014-0297; FMCSA-2014-0300;
FMCSA-2014-0301; FMCSA-2014-0302; FMCSA-2014-0304; FMCSA-2014-0305.
Their exemptions are effective as of May 7, 2017, and will expire on
May 7, 2019.
    As of May 13, 2017, and in accordance with 49 U.S.C. 31136(e) and
31315, the following 9 individuals have satisfied the conditions for
obtaining a renewed exemption from the vision requirements (72 FR
12666; 72 FR 25831; 74 FR 7097; 74 FR 15584; 74 FR 15586; 75 FR 25919;
75 FR 39729; 75 FR 54958; 75 FR 70078; 75 FR 77942; 76 FR 5425; 76 FR
9856; 76 FR 17481; 76 FR 20076; 76 FR 21796; 76 FR 28125; 77 FR 36338;
78 FR 18667; 78 FR 22596; 78 FR 24300; 80 FR 18696):

Toby L. Carson (TN)
Vincent C. Durazzo, Jr. (CT)
Randy M. Lane (PA)
Michael O. Regentik (MI)
Alvaro F. Rodriguez (TX)
Esequiel Rodriguez, Jr. (TX)
George K. Sizemore (NC)
Donald E. Stone (VA)
Michael A. Zingarella (CT)

    The drivers were included in one of the following docket Nos:
FMCSA-2007-27333; FMCSA-2008-0398; FMCSA-2010-0082; FMCSA-2010-0201;
FMCSA-2010-0385; FMCSA-2011-0010; FMCSA-2011-0024. Their exemptions are
effective as of May 13, 2017, and will expire on May 13, 2019.
    As of May 19, 2017, and in accordance with 49 U.S.C. 31136(e) and
31315, the following 7 individuals have satisfied the conditions for
obtaining a renewed exemption from the vision requirements (76 FR
18824; 76 FR 29024; 78 FR 12815; 78 FR 22602; 79 FR 24298; 80 FR
20558):

Luis A. Bejarano (AZ)
Richard T. Berendt (OH)
James O. Cook (GA)
Kevin R. Lambert (NC)
Scott W. Schilling (ND)
Randy E. Sims (WA)
Mark E. Studer (KS)

    The drivers were included in one of the following docket Nos:
FMCSA-2011-0057; FMCSA-2013-0022. Their exemptions are effective as of
May 19, 2017, and will expire on May 19, 2019.
    As of May 20, 2017, and in accordance with 49 U.S.C. 31136(e) and
31315, the following 3 individuals have satisfied the conditions for
obtaining a renewed exemption from the vision requirements (78 FR
16912; 78 FR 29431; 80 FR 20559):

Dolan A. Gonzalez, Jr. (FL)
Paul Harpin (AZ)
Randy T. Richardson (KS)

    The drivers were included in docket No. FMCSA-2013-0024. Their
exemptions are effective as of May 20, 2017, and will expire on May 20,
2019.
    As of May 27, 2017, and in accordance with 49 U.S.C. 31136(e) and
31315, the following 11 individuals have satisfied the conditions for
obtaining a renewed exemption from the

vision requirements (80 FR 22773; 80 FR 45573):

Donald A. Becker (MI)
William T. Costie (NY)
Donald W. Donaldson (GA)
James L. Duck (NM)
Arthur R. Hughson (AL)
Joseph M. Jones (ID)
Howard H. Key Jr. (AR)
Quang M. Pham (TX)
Glen E. Robbins (WY)
Ronald P. Schoborg (AR)
Steven M. Tewhill (AR)

    The drivers were included in docket No. FMCSA-2014-0305. Their
exemptions are effective as of May 27, 2017, and will expire on May 27,
2019.
    As of May 31, 2017, and in accordance with 49 U.S.C. 31136(e) and
31315, the following 9 individuals have satisfied the conditions for
obtaining a renewed exemption from the vision requirements (65 FR
78256; 66 FR 16311; 67 FR 46016; 67 RF 57267; 68 FR 13360; 69 FR 62741;
70 FR 12265; 70 FR 17504; 70 FR 30997; 71 FR 32183; 71 FR 41310; 71 FR
62147; 72 FR 12665; 72 FR 12666; 72 FR 25831; 72 FR 27624; 73 FR 61925;
74 FR 9329; 74 FR 15586; 74 FR 19270; 76 FR 9856; 76 FR 17483; 76 FR
18824; 76 FR 20076; 76 FR 25762; 76 FR 29024; 78 FR 16762; 78 FR 24300;
78 FR 26106; 79 FR 24298; 80 FR 26320):

Robert A. Casson (KY)
Gerald S. Dennis (IA)
John K. Fank (IL)
Gene A. Lesher, Jr. (WV)
Kenneth L. Nau (MD)
George D. Schell (IL)
Robert D. Smith (OH)
Kenneth E. Suter, Jr. (OH)
Richard A. Westfall (OH)

    The drivers were included in one of the following docket Nos:
FMCSA-2000-8398; FMCSA-2002-12294; FMCSA-2005-20560; FMCSA-2006-24783;
FMCSA-2007-27333; FMCSA-2011-0010; FMCSA-2011-0057. Their exemptions
are effective as of May 31, 2017, and will expire on May 31, 2019.

Conditions and Requirements

    The exemptions are extended subject to the following conditions:
(1) Each driver must undergo an annual physical examination (a) by an
ophthalmologist or optometrist who attests that the vision in the
better eye continues to meet the requirements in 49 CFR 391.41(b)(10),
and (b) by a certified Medical Examiner, as defined by 49 CFR 390.5,
who attests that the driver is otherwise physically qualified under 49
CFR 391.41; (2) each driver must provide a copy of the
ophthalmologist's or optometrist's report to the Medical Examiner at
the time of the annual medical examination; and (3) each driver must
provide a copy of the annual medical certification to the employer for
retention in the driver's qualification file and retains a copy of the
certification on his/her person while driving for presentation to a
duly authorized Federal, State, or local enforcement official. The
exemption will be rescinded if: (1) The person fails to comply with the
terms and conditions of the exemption; (2) the exemption has resulted
in a lower level of safety than was maintained before it was granted;
or (3) continuation of the exemption would not be consistent with the
goals and objectives of 49 U.S.C. 31136(e) and 31315.

IV. Preemption

    During the period the exemption is in effect, no State shall
enforce any law or regulation that conflicts with this exemption with
respect to a person operating under the exemption.

VI. Conclusion

    Based upon its evaluation of the 82 exemption applications, FMCSA
renews the exemptions of the aforementioned drivers from the vision
requirement in 49 CFR 391.41(b)(10), subject to the requirements cited
above (49 CFR 391.64(b)). In accordance with 49 U.S.C. 31136(e) and
31315, each exemption will be valid for two years unless revoked
earlier by FMCSA.

    Issued on: April 14, 2017.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2017-08079 Filed 4-20-17; 8:45 am]
 BILLING CODE 4910-EX-P


[Federal Register: August 25, 2010 (Volume 75, Number 164)]
[Notices]
[Page 52380-52382]
[DOCID:fr25au10-118]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62739; File No. SR-FINRA-2010-044]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to
the Expansion of the Order Audit Trail System to All NMS Stocks

August 18, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 6, 2010, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. 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

    FINRA is proposing to amend the Order Audit Trail System (``OATS'')
rules to extend the recording and reporting requirements to all NMS
stocks, as that term is defined in Rule 600(b)(47) of Regulation
NMS,\3\ and to exclude certain firms that became FINRA members pursuant
to NASD IM-1013-1 or NASD IM-1013-2 and the rules of the NYSE and that
have limited trading activities.
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    \3\ 17 CFR 242.600(b)(47).
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    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA, at the
Commission's Web site at http://www.sec.gov, and at the Commission's
Public Reference Room.

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

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

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

1. Purpose
    FINRA Rules 7410 through 7470 (the ``OATS Rules'') impose
obligations on FINRA members to record in electronic form and report to
FINRA on a daily basis certain information with respect to orders
originated, received, transmitted, modified, canceled, or executed by
members relating to OTC equity securities and equity securities listed
and traded on The Nasdaq Stock Market, Inc. (``Nasdaq'').\4\ OATS
captures this order information and integrates it with quote and
transaction information to create a time-sequenced record of orders,
quotes, and transactions. This information is then used by FINRA staff
to conduct surveillance and investigations of member firms for
violations of FINRA rules and Federal securities laws.
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    \4\ As amended by SR-FINRA-2010-003, FINRA Rule 7410 defines an
``OTC equity security'' for purposes of the OATS Rules as an equity
security that is not an NMS stock, except that the term does not
include restricted equity securities and direct participation
programs, as those terms are defined in FINRA Rule 6420. See
Securities Exchange Act Release No. 61979 (April 23, 2010), 75 FR
23316 (May 3, 2010) (Order Approving File No. SR-FINRA-2010-003).
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    To enhance the effectiveness of OATS as a regulatory tool, FINRA is
proposing to amend the OATS Rules to extend the recording and reporting
requirements to all NMS stocks, as that term is defined in Rule
600(b)(47) of Regulation NMS.\5\ The proposed rule change would thus
effectively extend the OATS recording and reporting requirements to NMS
stocks listed on markets other than

Nasdaq (e.g., NYSE, NYSE Amex, and NYSE Arca). By including order
information for both OTC equity securities and all NMS stocks in OATS,
FINRA would receive a substantial portion of order information for all
U.S. equity securities, which would significantly enhance the scope of
the order audit trail in the U.S. equity markets. In connection with
the expansion of the OATS requirements, FINRA is also proposing to
create an exclusion from the definition of ``Reporting Member'' in
FINRA Rule 7410 to exclude certain firms that became FINRA members
pursuant to NASD IM-1013-1 or NASD IM-1013-2 and the rules of the NYSE
and that have limited trading activities.
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    \5\ Rule 600(b)(47) of Regulation NMS defines ``NMS stock'' as
``any NMS security other than an option.'' 17 CFR 242.600(b)(47). An
``NMS security'' is defined as ``any security or class of securities
for which transaction reports are collected, processed, and made
available pursuant to an effective transaction reporting plan, or an
effective national market system plan for reporting transactions in
listed options.'' 17 CFR 242.600(b)(46).
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    Although FINRA members generally are required to report trades to
FINRA for all over-the-counter transactions in all NMS stocks \6\ (in
addition to OTC equity securities \7\), the OATS Rules do not currently
require members to report order information to FINRA for NMS stocks
listed on markets other than Nasdaq. As a result, FINRA is unable to
recreate, on an automated basis, a complete order and transaction audit
trail for all over-the-counter transactions in NMS stocks. Expansion of
the OATS requirements to include all NMS stocks would enhance FINRA's
ability to review and examine for member compliance with certain
trading rules, including, but not limited to, NASD Rule 2320 (Best
Execution and Interpositioning) and NASD IM-2110-2 (Limit Order
Protection) [sic].
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    \6\ FINRA Rule 6110.
    \7\ See FINRA Rule 6400 Series.
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    By capturing OATS information for all NMS stocks, FINRA will also
be able to expand its existing surveillance patterns to conduct more
comprehensive cross-market surveillance, which also is in furtherance
of NYSE's recent outsourcing of surveillance and other regulatory
functions to FINRA.\8\ Specifically, to have comprehensive surveillance
patterns that monitor trading in Nasdaq and NYSE-listed securities
across all markets in a consistent manner, it is necessary for FINRA to
have the same complement of order, trade, and quote information for
these securities. Without OATS information for NYSE-listed securities,
FINRA has a less robust data set upon which to monitor activity in
NYSE-listed securities and would be forced to continue to have multiple
patterns, some less optimal, to surveil for the same activity.
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    \8\ See ``FINRA and NYSE Euronext Complete Agreement for FINRA
to Perform NYSE Regulation's Market Oversight Functions,'' FINRA
News Release (June 14, 2010), available at http://www.finra.org/
Newsroom/NewsReleases/2010/P121622. However, certain gaps will
continue to exist (e.g., information relating to orders from non-
FINRA member broker-dealers).
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    FINRA notes that the Commission has recently published a proposed
rule that, if adopted, would ultimately result in a consolidated audit
trail for the U.S. securities markets.\9\ FINRA believes that the
proposed rule change is necessary notwithstanding the Commission's rule
proposal concerning a consolidated audit trail. The consolidated audit
trail, as proposed by the Commission, is still in its proposal stage
and may be several years away from providing a means by which self-
regulatory organizations and the Commission can use the data to surveil
the equity markets.\10\ In the interim, FINRA believes that extending
the OATS recording and reporting requirements to NMS stocks listed on
markets other than Nasdaq will greatly enhance its audit trail and its
ability to identify illicit trading activity in a more effective and
efficient manner.
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    \9\ See Securities Exchange Act Release No. 62174 (May 26,
2010), 75 FR 32556 (June 8, 2010).
    \10\ The Commission has proposed that national securities
exchanges and national securities associations would begin
submitting data to the central repository required by the proposed
rule within one year after effectiveness of the NMS plan and that
members would begin submitting data one year later. See supra note
9.
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    Moreover, because Reporting Members \11\ already are reporting
order information to OATS regarding Nasdaq and OTC equity securities,
they should have the technological framework in place to report
information regarding orders in the remaining NMS stocks as well. In
addition, those FINRA members that are also member organizations of the
NYSE already are recording order information under the NYSE's Order
Tracking System (``OTS'') rules that are substantially similar to the
information required by the OATS Rules.\12\ FINRA believes that
extending the OATS Rules to NMS stocks listed on markets other than
Nasdaq can be accomplished in a comparatively short timeframe and can
provide FINRA with order data for these securities much sooner than the
consolidated audit trail proposed by the Commission.
---------------------------------------------------------------------------

    \11\ See FINRA Rule 7410(o).
    \12\ See NYSE Rules 132B, 132C.
---------------------------------------------------------------------------

    Expanding the categories of securities to which the OATS Rules
apply to include securities listed on the NYSE or other national
securities exchanges, such as those listed on NYSE Amex, would have the
ancillary effect of extending the OATS recording and reporting
requirements to certain members that became members of FINRA pursuant
to NASD IM-1013-1 or IM-1013-2 \13\ and the rules of the NYSE.\14\
These members generally conduct their trading activities on the floor
of an exchange, which is overseen by the relevant exchange. FINRA
believes it is appropriate to exclude these firms from the OATS
recording and reporting requirements. Consequently, FINRA is proposing
to amend the definition of ``Reporting Member'' in FINRA Rule 7410 so
that a member will not be considered a ``Reporting Member'' with
respect to an order if: (i) The firm was approved as a FINRA member
pursuant to NASD IM-1013-1 or NASD IM-1013-2; (ii) the firm operates
consistent with NASD IM-1013-1 or NASD IM-1013-2, including limiting
its business operations to ``permitted floor activities,'' as that term
is defined in NASD IM-1013-1 and NASD IM-1013-2; and (iii) the order
was received by the firm through systems operated and regulated by the
NYSE or NYSE Amex.
---------------------------------------------------------------------------

    \13\ NASD IM-1013-1 and NASD IM-1013-2 establish a waive-in
membership application process for certain firms to become FINRA
members that were members of the NYSE or NYSE Alternext (n/k/a NYSE
Amex) but were not members of the National Association of Securities
Dealers, Inc. See Securities Exchange Act Release No. 58707 (October
1, 2008), 73 FR 59001 (October 8, 2008); Securities Exchange Act
Release No. 56653 (October 12, 2007), 72 FR 59127 (October 18,
2007).
    \14\ See NYSE Rule 2.
---------------------------------------------------------------------------

    FINRA will announce the effective date of the proposed rule change
in a Regulatory Notice to be published no later than 60 days following
Commission approval. The effective date will be no later than 180 days
following publication of the Regulatory Notice announcing Commission
approval.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\15\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. The proposed rule change is consistent with the Act
because it will enhance FINRA's ability to conduct surveillance and
investigations of member firms for violations of FINRA's rules and
Federal securities laws.
---------------------------------------------------------------------------

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

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

    FINRA does not believe that the proposed rule change will result in
any

burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    The proposed rule change was published for comment in Notice to
Members 04-80 (November 2004).\16\ Eight comments were received in
response to the Notice.\17\ A copy of the Notice is attached as Exhibit
2a. Copies of the comment letters received in response to the Notice
are attached as Exhibit 2b.\18\ Seven commenters were generally opposed
to the proposed rule change. One commenter generally supported the
proposal provided firms could report all equity securities in the same
format and there were no redundant reporting responsibilities.\19\
---------------------------------------------------------------------------

    \16\ Three other proposals were discussed in the Notice. The
first involved expanding the OATS requirements to OTC equity
securities. The second would require enhanced information, including
execution data, relating to orders routed to non-members or
exchanges. The third would require members to record and report to
OATS proprietary orders generated in the ordinary course of market
making activities. The proposal regarding OTC equity securities was
approved by the SEC in 2006 and became effective on February 4,
2008. See Securities Exchange Act Release No. 54585 (October 10,
2006), 71 FR 61112 (October 17, 2006); see also Securities Exchange
Act Release No. 55440 (March 9, 2007), 72 FR 12852 (March 19, 2007);
Notice to Members 06-70 (December 2006). As part of that proposed
rule change, FINRA discussed the comments related to the expansion
of OATS to OTC equity securities. See SR-NASD-2005-101. Neither of
the other two proposals is part of the current proposed rule change.
Accordingly, FINRA is not addressing the comments received in
response to those proposals.
    \17\ Letter from Emily Vitale dated November 24, 2004
(``Vitale''); Letter from ML Stern & Co., LLC dated January 14, 2005
(``ML Stern''); Letter from Ameritrade, Inc. dated January 18, 2005
(``Ameritrade''); Letter from Instinet Group dated January 20, 2005
(``Instinet''); Letter from Operations Committee of the Securities
Industry Association dated January 20, 2005 (``SIA''); Letter from
royalblue Financial Corp. dated January 20, 2005 (``royalblue'');
Letter from Jed Bandes dated January 20, 2005 (``Bandes''); and
Letter from The Financial Information Forum dated January 21, 2005
(``FIF'').
    \18\ The Commission notes that Exhibits 2a and 2b are attached
to the filing itself and not to this notice.
    \19\ See Ameritrade.
---------------------------------------------------------------------------

    One commenter opposed the proposed rule change without additional
discussion but noted that the system in place for OATS at the time was
inefficient in several ways.\20\ Two other commenters opposed the OATS
rules generally, without specifically commenting on any of the
proposals.\21\ These commenters cited the additional costs and burdens
to member firms of complying with the OATS requirements.
---------------------------------------------------------------------------

    \20\ See ML Stern.
    \21\ See Bandes, Vitale.
---------------------------------------------------------------------------

    The predominant concern among the commenters with respect to the
proposal to extend the OATS Rules to securities traded on markets other
than Nasdaq regarded the potential regulatory duplication that could
occur by expanding OATS to include NYSE-listed equity securities \22\
because NYSE maintains its own rules regarding the retention and
reporting of order information in its OTS Rules.\23\ As noted above,
FINRA now has regulatory responsibility for performing the market
surveillance and enforcement functions previously conducted by NYSE
Regulation. It is FINRA's understanding that NYSE will propose to
retire OTS upon the expansion of OATS to all NMS stocks.
---------------------------------------------------------------------------

    \22\ See Ameritrade, FIF, Instinet, SIA, royalblue.
    \23\ See NYSE Rules 132B, 132C.
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File No. SR-FINRA-2010-044 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-FINRA-2010-044. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File No. SR-FINRA-2010-044 and should be
submitted on or before September 15, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-21031 Filed 8-24-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register Volume 85, Number 196 (Thursday, October 8, 2020)]
[Notices]
[Pages 63652-63653]
[FR Doc No: 2020-22298]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2020-0077]

Petition for Waiver of Compliance

    Under part 211 of title 49 Code of Federal Regulations (CFR), this
document provides the public notice that on September 18, 2020, the
Regional Transportation District Commuter Rail (RTDC) petitioned the
Federal Railroad Administration (FRA) for a waiver of compliance from
certain provisions of the Federal railroad safety regulations contained
at 49 CFR part 238, Passenger Equipment Safety Standards. FRA assigned
the petition Docket Number FRA-2020-0077.
    Specifically, RTDC requests relief from 49 CFR 238.309, Periodic
brake equipment maintenance. Section 238.309(b)(2) stipulates that
brake equipment and brake cylinders of each MU locomotive must be
cleaned, repaired, and tested at intervals of every 1,104 days if the
MU locomotive is part of a fleet that is 100 percent equipped with air
dryers and has a brake system using RT-5A-style valves (among others).
The RTDC MU locomotives are equipped with the RT-5A+ Brake System and
is 100 percent air dryer equipped. RTDC requests a waiver to extend the
maintenance interval to

perform periodic brake equipment maintenance on the RT-5A+ system from
1,104 days to a total of 2,208 days (6 years) for the RTDC MU
locomotive fleet.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested parties
desire an opportunity for oral comment and a public hearing, they
should notify FRA, in writing, before the end of the comment period and
specify the basis for their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Website: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation (DOT), 1200 New Jersey Ave. SE, W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Ave. SE, Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
    Communications received by November 23, 2020 will be considered by
FRA before final action is taken. Comments received after that date
will be considered if practicable.
    Anyone can search the electronic form of any written communications
and comments received into any of our dockets by the name of the
individual submitting the comment (or signing the document, if
submitted on behalf of an association, business, labor union, etc.).
Under 5 U.S.C. 553(c), DOT solicits comments from the public to better
inform its processes. DOT posts these comments, without edit, including
any personal information the commenter provides, to
www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at https://www.transportation.gov/privacy. See also https://www.regulations.gov/privacyNotice for the
privacy notice of regulations.gov.

    Issued in Washington, DC.
John Karl Alexy,
Associate Administrator for Railroad Safety, Chief Safety Officer.
[FR Doc. 2020-22298 Filed 10-7-20; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register: July 6, 2007 (Volume 72, Number 129)]
[Notices]
[Page 37063-37064]
[DOCID:fr06jy07-115]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55973; File No. SR-ISE-2007-39]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change as Modified by Amendment No. 1 Thereto Relating to a Fee
Reduction and Fee Cap in Options on IWM

June 28, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 1, 2007, the International Securities Exchange, LLC (``ISE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. On June 26, 2007, the Exchange filed Amendment No. 1 to the
proposed rule change.\3\ ISE has designated this proposal as one
establishing or changing a due, fee, or other charge imposed by ISE
under Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2)
thereunder,\5\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change, as amended, from interested
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 made clarifying changes to the purpose
section, clarified the operation of the Exchange's waiver program
with respect to the Comparison and Non-ISE Market Maker fees, and
corrected a typographical error in Exhibit 5.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    ISE proposes to establish a reduction and a cap in fees for trading
options on the iShares Russell 2000[supreg] Index Fund (``IWM''). The
text of the proposed rule change is available at the Exchange, its Web
Site at http://www.iseoptions.com/legal/proposed_rule_changes.asp,

and the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its Schedule of Fees to impose, on a
pilot basis until June 30, 2007, both a reduction in and a cap on
exchange transaction and comparison fees for IWM options. Specifically,
any Member with monthly Average Daily Volume (``ADV'') of 8,000
contracts in IWM options would receive a $.10 discount from the
standard transaction fees for contracts traded above that amount, up to
ADV of 10,000 contracts in IWM options. For contracts in IWM options
traded in excess of 10,000 ADV for a month, the Exchange will waive all
transaction and comparison fees. The proposed fee discount program
applies to ISE Market Maker orders, non-ISE Market Maker orders, and
Firm Proprietary orders in IWM options. The Exchange's current
transaction fees for these order types are as follows: For ISE Market
Maker orders, the transaction fees range from $.21 to $.12 a contract,
depending on the Exchange's trading volume, plus a comparison fee of
$.03 per contract; for non-ISE Market Maker orders and Firm Proprietary
orders, the transaction fees are $.37 and $.15, respectively, plus a
comparison fee of $.03 per contract. The fee reduction and waiver is
intended to increase the Exchange's competitiveness in trading IWM
options. The Exchange notes that the proposed discount will apply to
transaction fees only and not to the payment for order flow fee or any
licensing surcharge fee that may be applicable to the trading of
options in IWM.
    This proposal is similar to the volume-based discount fee program
currently in place for trading in options on the NASDAQ-100 Index
Tracking Stock[supreg] (QQQQ[supreg]) and for trading in the Exchange's
Facilitation Mechanism.\6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 49147 (January 29,
2004), 69 FR 5629 (February 5, 2004) (SR-ISE-2003-32).
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4) of the Act \7\ that an exchange have
an equitable allocation of reasonable dues, fees, and other charges
among its members and other persons using its facilities.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

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

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee,
or other charge imposed by the Exchange. Accordingly, the proposal took
effect upon filing with the Commission. At any time within 60 days of
the filing of such proposed rule change the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.\10\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on June 26, 2007, the date on which ISE filed Amendment
No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-ISE-2007-39 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-ISE-2007-39. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments,

all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2007-39 and should be
submitted on or before July 27, 2007.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-13068 Filed 7-5-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: October 11, 2005 (Volume 70, Number 195)]
[Notices]
[Page 59096-59097]
[DOCID:fr11oc05-73]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[File No. 1-31514]

Issuer Delisting; Notice of Application of Meredith Enterprises,
Inc. to Withdraw Its Common Stock, $.01 Par Value, From Listing and
Registration on the American Stock Exchange LLC

October 4, 2005.
    On September 15, 2005, Meredith Enterprises, Inc., a Delaware
corporation (``Issuer''), filed an application with the Securities and
Exchange Commission (``Commission''), pursuant to Section 12(d) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 12d2-2(d)

thereunder,\2\ to withdraw its common stock, $.01 par value
(``Security''), from listing and registration on the American Stock
Exchange LLC (``Amex'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78l(d).
    \2\ 17 CFR 240.12d2-2(d).
---------------------------------------------------------------------------

    On September 8, 2005, the Board of Directors (``Board'') of the
Issuer approved resolutions to withdraw the Security from listing and
registration on Amex. The Issuer stated the following reasons, among
others, factored into the Board's decision to withdraw the Security
from Amex. First, the ongoing costs and expenses, both direct and
indirect, associated with the preparation and filing of the Issuer's
periodic reports with the Commission. The Issuer expects to save each
year approximately the equivalent of the current quarterly dividend in
out-of-pocket accounting, legal, and other costs. Second, the
substantial increase in costs and expenses that the Issuer expects to
incur in 2006, and thereafter as a public company in light of the
Sarbanes-Oxley Act of 2002, particularly in complying with Section 404
of such act. Third, going private will enable management to focus more
time on running the business rather than on Commission compliance.
Fourth, liquidity of the Security on Amex has been limited, and
volatility has been greater than the Issuer believes is warranted.
    The Issuer stated that it has met the requirements of Amex's rules
governing an issuer's voluntary withdrawal of a security from listing
and registration by complying with all the applicable laws in effect in
Delaware, the State in which it is incorporated, and by providing Amex
with the required documents for withdrawal from Amex.
    The Issuer's application relates solely to the withdrawal of the
Security from listing on Amex and from registration under Section 12(b)
of the Act,\3\ and shall not affect its obligation to be registered
under Section 12(g) of the Act.\4\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 781(b).
    \4\ 15 U.S.C. 781(g).
---------------------------------------------------------------------------

    Any interested person may, on or before October 28, 2005, comment
on the facts bearing upon whether the application has been made in
accordance with the rules of Amex, and what terms, if any, should be
imposed by the Commission for the protection of investors. All comment
letters may be submitted by either of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/delist.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

the File Number 1-31514 or;

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
    All submissions should refer to File Number 1-31514. This file
number should be included on the subject line if e-mail is used. To
help us 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/delist.shtml).

Comments are also available for public inspection and copying in the
Commission's Public Reference Room. All comments received will be
posted without change; we do not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly.
    The Commission, based on the information submitted to it, will
issue an order granting the application after the date mentioned above,
unless the Commission determines to order a hearing on the matter.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(1).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
[FR Doc. E5-5560 Filed 10-7-05; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 85, Number 122 (Wednesday, June 24, 2020)]
[Notices]
[Pages 37988-37992]
[FR Doc No: 2020-13541]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89088; File No. SR-NSCC-2020-010]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of and Immediate Effectiveness of a
Proposed Rule Change To Amend Rules With Respect to Index Receipts

June 18, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 11, 2020, National Securities Clearing Corporation (``NSCC'')
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 the clearing agency. NSCC filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(4) thereunder.\4\ The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change consists of amendments to Procedure II
(Trade Comparison and Recording Service) of the NSCC Rules & Procedures
(``Rules'') with respect to index receipts, as described in greater
detail below.\5\
---------------------------------------------------------------------------

    \5\ Capitalized terms not defined herein are defined in the
Rules, available at http://dtcc.com/~/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
---------------------------------------------------------------------------

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

    In its filing with the Commission, the clearing agency 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 clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.

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

1. Purpose
    The purpose of this proposed rule change is to amend Procedure II
(Trade Comparison and Recording Service) with respect to index receipts
in order to (i) reflect the publication of ETF portfolio holdings for
pricing purposes via the Portfolio Report (as defined below and in the
proposed rule text) and (ii) permit Index Receipt Agents to submit to
NSCC index receipt creation and redemption instructions with a
scheduled settlement date that is greater than the standard settlement
cycle of second business day after the trade date (``T+2''). The
proposed rule change would also make technical and clarifying changes.
(i) Background
Overview of Exchange-Traded Funds
    Exchange-traded funds (``ETFs'') (referred to as ``index receipts''
in the Rules) are marketable securities that track stock indices,
commodities, bonds, or baskets of assets. ETFs are listed on exchanges
and are traded throughout the trading day. Shares of ETFs are created
and redeemed in the primary market and are traded on listed exchanges
in the secondary market. Each share of an ETF represents an undivided
interest in the underlying assets of the ETF. NSCC facilitates the in-
kind \6\ clearing and settlement of the creation and redemption of ETF
shares in the primary market as well as clearing of ETF trades in the
secondary market.
---------------------------------------------------------------------------

    \6\ In the ETF industry, the clearing of ETF creations and
redemptions ``in-kind'' represents an exchange of ETF shares for a
basket of component securities rather than cash.
---------------------------------------------------------------------------

    The participants in the ETF primary market typically consist of the
issuers of ETFs (``ETF Sponsors''), custodian banks (``ETF Agents,''
also referred to as ``Index Receipt Agents'' in the Rules), and
brokers/dealers that have agreements directly with ETF Sponsors to
allow the brokers/dealers to place orders for the creation and
redemption of ETF shares (``Authorized Participants'' or ``APs''). Both
the ETF Agents and APs \7\ are Members of NSCC.
---------------------------------------------------------------------------

    \7\ Form N-CEN defines AP as a broker-dealer that is also a
member of a clearing agency registered with the Commission, and
which has a written agreement with the ETF or one of its designated
service providers.

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

    As described in more detail below, NSCC understands that ETFs are
able to realize a tax efficiency that other corporations generally
cannot because redemptions from ETFs that are made in-kind (that is, by
delivering certain assets from the ETF's portfolio, rather than in
cash) do not require the ETF to realize and recognize capital gains if
such assets have appreciated in value.
Trading Baskets and ETF Portfolio Holdings for Pricing Purposes
    APs create and redeem ETF shares from the ETF Sponsors in blocks
called ``creation units.'' An AP that purchases a creation unit of ETF
shares delivers a ``basket'' of securities and other assets to the ETF
Agent, and then receives the creation unit of ETF shares in return for
those assets. The redemption process is the reverse of the creation
process: the AP redeems a creation unit of ETF shares for a basket of
securities and other assets. These creation and redemption baskets are
referred to as ``trading baskets.''
    A trading basket is generally representative of the ETF's portfolio
and, together with a cash balancing amount, equal in value to the
aggregate net asset value (``NAV'') of the ETF shares in the creation
unit. There are two types of trading baskets: standard trading baskets
and custom trading baskets. Trading baskets that reflect a pro rata
representation of the ETF's portfolio are referred to as ``standard
trading baskets.'' Trading baskets that are not standard trading
baskets are referred to as ``custom trading baskets.'' A custom trading
basket is a basket that contains a non-representative selection of the
ETF's portfolio holdings and does not reflect a pro rata representation
of the ETF's portfolio holdings. Custom trading baskets may, pursuant
to recently adopted Rule 6c-11 under the Investment Company Act of 1940
\8\ (``Rule 6c-11'') or applicable exemptive relief, substitute other
securities or cash in the basket for some (or all) of the ETF's
portfolio holdings.
---------------------------------------------------------------------------

    \8\ See Exchange-Traded Funds, Release Nos. 33-10695; IC 33646
(September 25, 2019), available at https://www.sec.gov/rules/final/2019/33-10695.pdf (the ``Adopting Release'').
---------------------------------------------------------------------------

    In contrast to trading baskets, the ``ETF portfolio holdings for
pricing purposes'' reflects an ETF's entire portfolio holding
information and is not used for creations and redemptions.\9\ The ETF
portfolio holdings for pricing purposes provides information such as a
comprehensive list of securities and assets held by an ETF, as well as
the associated asset types, i.e., fixed income, commodities, swaps, and
futures.\10\ Accordingly, the ETF portfolio holdings for pricing
purposes can be used by APs to facilitate valuing an ETF's portfolio on
an intraday basis, which, in turn, enables APs to identify any
potential premiums and discounts for the ETF in the secondary market.
The ability to identify an ETF's potential premiums and discounts in
the secondary market is necessary for keeping the market prices of the
ETF shares at or close to the NAV per share of the ETF. The ETF
portfolio holdings for pricing purposes may include information beyond
the disclosure required of an ETF under Rule 6c-11.\11\
---------------------------------------------------------------------------

    \9\ As an example, the trading basket for the Financial Select
Sector SPDR[supreg] Fund (an ETF that tracks an index of S&P
500[supreg] financial stocks) would include the underlying
securities of the relevant financial institutions while the
portfolio holdings for pricing purposes for the ETF may include
futures, swaps, options, and fractional shares of those underlying
securities.
    \10\ NSCC recognizes that an ETF would be able to provide NSCC
with such portfolio information only to the extent consistent with
its obligations under the federal securities laws governing the
disclosure of non-public portfolio information. See Adopting Release
Footnote 271 and accompanying text, supra note 8.
    \11\ Rule 6c-11 requires any ETF relying upon Rule 6c-11 to
disclose prominently on its website, publicly available and free of
charge, the portfolio holdings that will form the basis for each
calculation of NAV per share, and any cash balancing amount. The
rule requires that the portfolio holdings information contain
specified information, including description and amount of each
position. Rule 6c-11 also requires an ETF to disclose on its website
(i) the ETF's NAV per share, market price, and premium or discount,
each as of the end of the prior business day; (ii) a tabular chart
and line graph showing the ETF's premiums and discounts for the most
recently completed calendar year and the most recently completed
calendar quarters of the current year (or for the life of the ETF if
shorter); and (iii) the ETF's median bid-ask spread over the last 30
calendar days. See Adopting Release Footnotes 675, 676 and 677 and
accompanying text, supra note 8.
---------------------------------------------------------------------------

ETF Portfolio Reporting Service
    NSCC's ETF portfolio reporting service is an optional service that
is available to Members by subscription.\12\ This service is covered in
Procedure II (Trade Comparison and Reporting Service), Section F, of
the Rules.
---------------------------------------------------------------------------

    \12\ Firms that are not Members can obtain Portfolio Reports via
the DTCC ETF Portfolio Data Service provided by DTCC Solutions LLC,
an affiliate of NSCC.
---------------------------------------------------------------------------

    On the business day preceding the trade date (``T-1''), an ETF's
NAV is calculated by the ETF Sponsor or the ETF Agent after the market
closes. Following the calculation of the NAV, these firms calculate
trading baskets for use on the trade date (``T''). Pursuant to
Procedure II, Section F.1. of the Rules, the ETF Agent, on behalf of
the ETF Sponsor, transmits to NSCC on T-1 files that contain (a) the
composition of index receipts for creations and redemptions occurring
on the next business day (T), i.e., the shares and their associated
quantities, (b) the cash value of the portfolio for creates and redeems
made solely for cash, and, if applicable, (c) the estimated cash
amount, representing accrued dividend, cash-in-lieu of components,\13\
if applicable, and balancing amount data (``Dividend/Balancing Cash
Amount''), and (d) such other financial data as NSCC may require or
permit from time to time.\14\
---------------------------------------------------------------------------

    \13\ The ``cash-in-lieu of securities'' portion of the cash
amount represents cash substituted for a partial quantity of the
components underlying a creation or redemption rather than acting as
the sole underlying component.
    \14\ NSCC currently does not require any additional financial
data.
---------------------------------------------------------------------------

    NSCC compiles the information on the evening of T-1 and provides
Members that subscribe to the ETF portfolio reporting service with a
portfolio composition report (``Portfolio Report'') detailing, if
applicable, the estimated Dividend/Balancing Cash Amount, other
financial data, and the composition of the next business day's ETFs.
The Portfolio Reports provide subscribing Members a convenient and
comprehensive publication of basket data for U.S.-listed ETFs in a
standardized format. For each U.S.-listed ETF, NSCC currently publishes
a Portfolio Report that includes one standard trading basket and, if
applicable, multiple custom trading baskets.\15\
---------------------------------------------------------------------------

    \15\ ETFs can, pursuant to Rule 6c-11 or applicable exemptive
relief, use custom trading baskets to create and redeem shares.
---------------------------------------------------------------------------

    On T, based on the Portfolio Report, create and redeem orders for
the ETF shares can be placed by APs with the ETF Sponsors. The ETF
Sponsors can, via the ETF Agents, submit those orders to NSCC on a
locked-in basis for clearing and settlement via NSCC's Continuous Net
Settlement (``CNS'') System. The delivers and receives are processed
through NSCC's Universal Trade Capture (``UTC'') system and netted in
the CNS System for settlement.
    The Rules do not currently provide for the publication of ETF
portfolio holdings for pricing purposes via the Portfolio Report. In
addition, the Rules currently only permit the ETF Agents to submit
creation and redemption instructions with scheduled settlement date of
one business day after the trade date (``T+1'') or T+2.
(ii) Proposed Enhancements
Publication of ETF Portfolio Holdings for Pricing Purposes via
Portfolio Reports
    As discussed above, trading baskets and ETF portfolio holdings for
pricing

purposes facilitate ETF trading activities; however, because NSCC's
Rules do not currently provide for the publication of ETF portfolio
holdings for pricing purposes via the Portfolio Report, Members need to
obtain ETF portfolio holdings for pricing purposes via means outside of
the Portfolio Report.\16\ Based on its discussion with the ETF industry
group,\17\ NSCC understands that obtaining ETF portfolio holdings for
pricing purposes outside of the Portfolio Report is inefficient for
Members. Members generally prefer to receive trading baskets and ETF
portfolio holdings for pricing purposes within one single consolidated
and standardized file. Therefore, NSCC is proposing to enhance the
Portfolio Report by publishing ETF portfolio holdings for pricing
purposes along with trading baskets in a standardized format.\18\
---------------------------------------------------------------------------

    \16\ It is NSCC's understanding that Members currently obtain
ETF portfolio holdings for pricing purposes from ETF Sponsors. In
addition, Members can also obtain ETF portfolio holdings information
from an ETF's website. As noted above, Rule 6c-11 requires any ETF
relying upon Rule 6c-11 to disclose prominently on its website,
publicly available and free of charge, the portfolio holdings that
will form the basis for each calculation of NAV per share, and any
cash balancing amount. Supra note 11.
    \17\ The ETF industry group is comprised of Members that are ETF
Agents and APs.
    \18\ Based on its discussions with the ETF industry group, NSCC
understands that, although Rule 6c-11 does not require ETFs to
publish any trading basket information, Members would nevertheless
prefer to receive Portfolio Reports that include both trading
baskets and ETF portfolio holdings for pricing purposes.
---------------------------------------------------------------------------

    NSCC is proposing to amend Procedure II (Trade Comparison and
Recording Service), Section F.1. to reflect the publication of ETF
portfolio holdings for pricing purposes via the Portfolio Report.
Unlike trading baskets, ETF portfolio holdings for pricing purposes are
not used for creations and redemptions. Accordingly, NSCC is proposing
to add an additional paragraph to Section F.1. that provides each day,
by such time as determined by NSCC from time to time, the Index Receipt
Agent may also report to NSCC the composition of index receipts for
purposes other than creations and redemptions.\19\ NSCC is also
proposing to add an additional sentence to the last paragraph of
Section F.1. that provides the Portfolio Report will also include, if
available, portfolio holdings of the index receipts.
---------------------------------------------------------------------------

    \19\ While NSCC believes publication of ETF portfolio holdings
for pricing purposes via the Portfolio Reports would be an efficient
and effective means for ETF Agents to transmit ETF portfolio
holdings for pricing purposes, ETF Agents would not be required to
use Portfolio Reports.
---------------------------------------------------------------------------

Extending ETF Creation/Redemption Settlement Dates Beyond T+2
    As mentioned above, NSCC understands that an ETF is able to realize
a tax efficiency for the ETF when redemptions from the ETF are made in-
kind. It is NSCC's understanding that this tax efficiency is
particularly implicated when an ETF needs to undertake a large
rebalancing (generally due to a change in an index that the ETF's
holdings track). This is because when an index changes, the ETF needs
to rebalance by disposing of its holding in securities that are no
longer in the index. NSCC understands that the sale of such securities
would generally incur a capital gain tax liability (assuming the
securities have appreciated in market value); however, if the ETF
redeems its shares from the ETF's shareholders in exchange for the
securities that are no longer in the index, such transaction would
generally not result in capital gains tax under the current U.S.
federal income tax laws and regulations.
    As understood by NSCC, this tax efficiency for ETFs is generally
known in the market as giving rise to so called ``heartbeat trades.''
\20\ Market participants refer to heartbeat trades as transactions in
which an ETF would fulfill a creation order from an AP (AP gets newly
created ETF shares in exchange for either cash or securities), the AP
would then place a custom redemption order to exchange the newly
created ETF shares for that ETF's holding in securities that are no
longer in the index. NSCC understands that an AP would look to align
the settlement dates of both the creation and redemption orders in
order to minimize any overnight positions and related margin impact. In
addition, NSCC understands that APs would prefer to hold the newly
created ETF shares for at least one day before placing any redemption
orders for such shares.
---------------------------------------------------------------------------

    \20\ Members interested in heartbeat trades should discuss with
their legal and tax advisers. By submitting this proposal, NSCC is
not opining on the practice of heartbeat trades or any related tax
implications, including, but not limited to, whether the alignment
of the settlement dates of both the creation and redemption orders
impacts the tax treatment of these transactions.
---------------------------------------------------------------------------

    The Rules currently only permit ETF creation and redemption
instructions with scheduled settlement dates of T+1 or T+2. This means
that when an AP submits a creation order on Monday (T), the creation
order has to settle no later than Wednesday (T+2); however, if the AP
desires to hold the newly created ETF shares for at least one day
(i.e., Tuesday), then the earliest that the AP can submit a redemption
order for those ETF shares would be on Wednesday for settlement on
Thursday. Therefore, under the current Rules, the settlement dates of
the creation and redemption orders could not be aligned if the AP were
to hold the newly created ETF shares for at least one day.\21\
---------------------------------------------------------------------------

    \21\ Currently, ETF creations and redemptions with scheduled
settlement dates beyond T+2 are settled broker-to-broker outside of
NSCC.
---------------------------------------------------------------------------

    NSCC is proposing to modify Procedure II (Trade Comparison and
Recording Service) Section F.2. to provide APs more flexibility when
selecting settlement dates for creation and redemption orders while
still being able to hold the newly created ETF shares for at least one
day. Specifically, NSCC is proposing to revise the language in the
second paragraph of Section F.2. so that Index Receipt Agents \22\
would be permitted to select a Settlement Date of T+1 or later for
their index receipts.\23\
---------------------------------------------------------------------------

    \22\ Create and redeem orders for the ETF shares are placed by
APs with the ETF Sponsors. The ETF Sponsors, via the Index Receipt
Agents, submit those orders to NSCC for clearing and settlement.
    \23\ NSCC believes extending ETF creation/redemption settlement
date beyond T+2 would be consistent with rule 15c6-1 of the Act.
Rule 15c6-1 requires that most securities transactions settle within
two business days of the trade date, unless otherwise expressly
agreed to by the parties at the time of the transaction. 17 CFR
240.15c6-1.
---------------------------------------------------------------------------

    As proposed, when an AP submits a creation order on Monday (T), it
would be able to have the creation order settle on Thursday (T+3),
which could be aligned with a T+1 settlement date of a redemption order
submitted on Wednesday while enabling the AP to hold the newly created
ETF shares for one day (i.e., Tuesday). The proposal would thus enable
the AP to align the settlement dates of both the creation and
redemption orders (i.e., Thursday) in order to minimize any overnight
positions and related margin impact while holding the newly created ETF
shares for one day (i.e., Tuesday) before placing any redemption orders
for such shares.
Technical and Clarifying Changes
    NSCC is proposing technical and clarifying changes in Sections F.1.
and F.2 of Procedure II (Trade Comparison and Recording Service).
Specifically, NSCC is proposing to modify Section F.1. by replacing the
term ``cash-in-lieu of components'' with ``cash-in-lieu of securities''
in order to conform with the current industry terminology usage.
Likewise, NSCC is proposing technical changes in footnote 1 of Section
F.1. to ensure consistent placement of hyphens with respect to the term
``cash-in-lieu of securities.''
    NSCC is also proposing a technical change to define Portfolio
Report in

Section F.1., which is a term currently used in the Rules but has not
been defined. Specifically, NSCC is proposing to delete the first
instance of ``Portfolio Report'' from the last paragraph of Section
F.1. and replace it with ``report.'' In addition, NSCC is proposing to
define the term ``Portfolio Report'' at the end of the first sentence
in the last paragraph of Section F.1.
    In the second paragraph of Section F.2., NSCC is proposing a
technical change to replace ``Index Receipts'' with ``index receipts''
because it is not a defined term under the Rules.
    In addition, NSCC is proposing a clarifying change in the last
paragraph of Section F.1. The clarifying change would make it clear
that the composition data within the Portfolio Report may be used by
NSCC to process index receipt creations and redemptions on the next
business day.
(iii) Member Outreach
    Beginning in October 2017, NSCC has conducted ongoing outreach to
each Member in order to provide them with notice of the proposed
changes. As of the date of this filing, no written comments relating to
the proposed changes have been received in response to this outreach.
The Commission will be notified of any written comments received.
(iv) Implementation Timeframe
    NSCC would implement the proposed changes by no later than August
31, 2020 and would announce the effective date of the proposed changes
by an Important Notice, posted to its website. As proposed, a legend
would be added to Procedure II stating there are changes that became
effective upon filing with the Commission but have not yet been
implemented. The proposed legend also would include a date by which
such changes would be implemented and the file number of this proposal,
and state that, once this proposal is implemented, the legend would
automatically be removed from Procedure II.
2. Statutory Basis
    NSCC believes this proposal is consistent with the requirements of
the Act, and the rules and regulations thereunder applicable to a
registered clearing agency. Specifically, NSCC believes this proposal
is consistent with Section 17A(b)(3)(F) \24\ of the Act and Rule 17Ad-
22(e)(21),\25\ as promulgated under the Act, for the reasons described
below.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78q-1(b)(3)(F).
    \25\ 17 CFR 240.17Ad-22(e)(21).
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions and to protect investors and the public
interest.\26\ NSCC believes that the proposed rule change to provide
for the publication of ETF portfolio holdings for pricing purposes via
the Portfolio Report would protect investors and the public interest.
This is because publishing the ETF portfolio holdings for pricing
purposes via the Portfolio Report would provide Members with the
necessary information to facilitate their valuation of the ETF
portfolios on an intraday basis, which, in turn, would help enable them
to assess whether any potential ETF trading premiums or discounts exist
in the secondary market when comparing to the ETF NAVs. The ability to
identify potential premiums and discounts in the secondary market is
necessary for keeping the market prices of ETF shares at or close to
the NAV per share of the ETF, thereby helping to ensure ETF investors
are treated equitably when buying and selling ETF shares. Therefore,
NSCC believes that the proposed rule change to provide for the
publication of ETF portfolio holdings for pricing purposes via the
Portfolio Report would protect investors and the public interest,
consistent with Section 17A(b)(3)(F) of the Act.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The proposed rule change to make technical and clarifying changes
would help ensure that the Rules remain accurate and clear to Members.
Having accurate and clear Rules would help Members to better understand
their rights and obligations regarding NSCC's clearance and settlement
services. NSCC believes that when Members better understand their
rights and obligations regarding NSCC's clearance and settlement
services, they can act in accordance with the Rules. NSCC believes that
better enabling Members to comply with the Rules would promote the
prompt and accurate clearance and settlement of securities transactions
by NSCC. As such, NSCC believes the proposed rule changes to make
technical and clarifying changes are consistent with Section
17A(b)(3)(F) of the Act.
    Rule 17Ad-22(e)(21) under the Act requires NSCC to establish,
implement, maintain and enforce written policies and procedures
reasonably designed to be efficient and effective in meeting the
requirements of its participants and the markets it serves.\27\ The
proposed rule change to provide for the publication of ETF portfolio
holdings for pricing purposes via the Portfolio Report would enhance
the efficiency of the current reporting capability by enabling Members
to receive both ETF portfolio holdings for pricing purposes and trading
baskets in one single consolidated file instead of having to receive
them from multiple sources. The proposed rule change to provide for the
publication of ETF portfolio holdings for pricing purposes via the
Portfolio Report would enhance the effectiveness of the current
reporting capability by providing both ETF portfolio holdings for
pricing purposes and trading baskets in a standardized format, which,
NSCC believes, would help reduce the need for Members to work with data
in different formats and, in turn, result in fewer data conversion
errors and omissions. Therefore, by establishing a more efficient and
effective reporting capability for ETFs, NSCC believes that the
proposed rule change to provide for the publication of ETF portfolio
holdings for pricing purposes via the Portfolio Report is consistent
with Rule 17Ad-22(e)(21) under the Act.
---------------------------------------------------------------------------

    \27\ 17 CFR 240.17Ad-22(e)(21).
---------------------------------------------------------------------------

    The proposed rule change to extend ETF creation and redemption
settlement dates beyond T+2 is designed to meet the requirements of APs
and ETF Agents by providing them with more flexibility when selecting
settlement dates for ETF creation and redemption orders. As discussed
above, in order to minimize any overnight positions and related margin
impact, NSCC understands that APs and ETF Agents are looking to align
the applicable ETF creation and redemption settlement dates while
holding newly created ETF shares for the requisite time frame. The
proposal to extend ETF creation and redemption settlement dates beyond
T+2 would provide APs and ETF Agents with additional flexibility when
selecting settlement dates for ETF creation and redemption orders.
Having more flexibility when selecting settlement dates for ETF
creation and redemption orders would enable APs and ETF Agents to align
the applicable settlement dates more easily while still holding newly
created ETF shares for the desired time period. Therefore, NSCC
believes that the proposed rule change to extend ETF creation and
redemption settlement dates beyond T+2 is consistent with Rule 17Ad-
22(e)(21) under the Act.
(B) Clearing Agency's Statement on Burden on Competition
    NSCC does not believe the proposed rule change to provide for the
publication of ETF portfolio holdings for pricing purposes via the
Portfolio

Report would have any adverse impact, or impose any burden, on
competition.\28\ This is because the proposed rule change would enhance
NSCC's reporting capabilities in a manner that would enable Members to
receive all necessary information to support their ETF trading
activities in one single consolidated and standardized file. The
proposed rule change would not disproportionally impact any Members.
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    Moreover, NSCC believes the proposed rule change would have a
positive effect on competition among ETF industry participants. This is
because the proposed rule change to provide for the publication of ETF
portfolio holdings for pricing purposes via the Portfolio Report would
provide the ETF industry a more efficient and effective method to
disseminate ETF portfolio holdings for pricing purposes and also enable
Members to receive all necessary information to support their ETF
trading activities in one single consolidated and standardized file.
Therefore, NSCC believes the proposed rule change to provide for the
publication of ETF portfolio holdings for pricing purposes via the
Portfolio Report would enhance competition among ETF industry
participants by allowing information to be distributed more quickly and
in a more streamlined manner.
    NSCC does not believe the proposed rule change to extend ETF
creation and redemption settlement dates beyond T+2 would have any
adverse impact, or impose any burden, on competition.\29\ This is
because the proposed rule change is designed to meet the requirements
of APs and ETF Agents by providing them with more flexibility when
selecting settlement dates for ETF creation and redemption orders. The
proposed rule change would not disproportionally impact any Members.
---------------------------------------------------------------------------

    \29\ Id.
---------------------------------------------------------------------------

    NSCC does not believe the proposed rule changes to make technical
and clarifying changes would impact competition.\30\ These changes
would apply equally to all Members and would not affect Members' rights
and obligations. As such, NSCC believes these proposed rule changes
would not have any impact on competition.
---------------------------------------------------------------------------

    \30\ Id.
---------------------------------------------------------------------------

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
    Written comments relating to this proposed rule change have not
been solicited or received. NSCC will notify the Commission of any
written comments received by NSCC.

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 \31\ and paragraph (f) of Rule 19b-4
thereunder.\32\ 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.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(3)(A).
    \32\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-NSCC-2020-010 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2020-010. 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 NSCC and on DTCC's website
(http://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2020-010 and should be submitted on
or before July 15, 2020.
---------------------------------------------------------------------------

    \33\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-13541 Filed 6-23-20; 8:45 am]
BILLING CODE 8011-01-P