[Federal Register Volume 86, Number 23 (Friday, February 5, 2021)]
[Notices]
[Pages 8465-8472]
[FR Doc No: 2021-02398]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91030; File No. SR-EMERALD-2021-01]

Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule To Adopt a One-Time Membership Application Fee,
Application Programming Interface (``API'') Testing and Certification
Fees, and Network Connectivity Testing and Certification Fees

February 1, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 21, 2021, MIAX Emerald, LLC (``MIAX Emerald'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Emerald Fee
Schedule (the ``Fee Schedule'') to establish: (1) One-time membership
application fees for new MIAX Emerald Members; \3\ and (2) per-instance
Application Programming Interface (``API'') Testing and Certification
fees and Network

Connectivity Testing and Certification fees for Members and non-
Members.
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    \3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100 and the Definitions section of the Fee Schedule.
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    The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/emerald, at MIAX's
principal office, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend the Fee Schedule to establish: (1)
One-time membership application fees for new MIAX Emerald Members based
upon the applicant's status as either an Electronic Exchange Member
(``EEM'') \4\ or as a Market Maker; \5\ and (2) per-instance API
Testing and Certification fees and Network Connectivity Testing and
Certification fees for Members and non-Members.
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    \4\ ``Electronic Exchange Member'' or ``EEM'' means the holder
of a Trading Permit who is not a Market Maker. Electronic Exchange
Members are deemed ``members'' under the Exchange Act. See Exchange
Rule 100 and the Definitions section of the Fee Schedule.
    \5\ The term ``Market Makers'' refers to ``Lead Market Makers'',
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100 and the Definitions section of
the Fee Schedule.
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    MIAX Emerald commenced operations as a national securities exchange
registered under Section 6 of the Act \6\ on March 1, 2019.\7\ The
Exchange adopted its transaction fees and certain of its non-
transaction fees in its filing SR-EMERALD-2019-15.\8\ In that filing,
the Exchange expressly waived, among other fees, the one-time
membership application fee and per-instance API Testing and
Certification fees and Network Connectivity Testing and Certification
fees, both for Members and non-Members, in order to provide an
incentive to prospective market participants to become Exchange Members
and for prospective Members and non-Members to connect to MIAX Emerald
as soon as possible. At that time, the Exchange waived the one-time
membership application fee and per-instance API Testing and
Certification fees and Network Connectivity Testing and Certification
fees for the Waiver Period,\9\ and stated that it would provide notice
to market participants when the Exchange intended to terminate the
Waiver Period.
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    \6\ 15 U.S.C. 78f.
    \7\ See Securities Exchange Act Release No. 84891 (December 20,
2018), 83 FR 67421 (December 28, 2018) (File No. 10-233) (order
approving application of MIAX Emerald, LLC for registration as a
national securities exchange).
    \8\ See Securities Exchange Act Release No. 85393 (March 21,
2019), 84 FR 11599 (March 27, 2019) (SR-EMERALD-2019-15) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Establish the MIAX Emerald Fee Schedule).
    \9\ ``Waiver Period'' means, for each applicable fee, the period
of time from the initial effective date of the MIAX Emerald Fee
Schedule until such time that the Exchange has an effective fee
filing establishing the applicable fee. The Exchange will issue a
Regulatory Circular announcing the establishment of an applicable
fee that was subject to a Waiver Period at least fifteen (15) days
prior to the termination of the Waiver Period and effective date of
any such applicable fee. See the Definitions Section of the Fee
Schedule.
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    On September 15, 2020, the Exchange issued a Regulatory Circular
which announced that the Exchange would terminate the Waiver Period
for, among other fees, the one-time membership application fee and per-
instance API Testing and Certification fees and Network Connectivity
Testing and Certification fees for Members and non-Members, beginning
October 1, 2020.\10\
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    \10\ See MIAX Emerald Regulatory Circular 2020-41 available at
https://www.miaxoptions.com/sites/default/files/circular-files/MIAX_Emerald_RC_2020_41.pdf.
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    The Exchange initially filed its proposals to establish the one-
time membership application fee and per-instance API Testing and
Certification fees and Network Connectivity Testing and Certification
fees on October 1, 2020.\11\ The First Proposed Rule Changes were
published for comment in the Federal Register between October 20-21,
2020.\12\ On November 25, 2020, the Exchange withdrew the First
Proposed Rule Changes \13\ and refiled its proposal to establish the
one-time membership application fee and per-instance API Testing and
Certification fees and Network Connectivity Testing and Certification
fees.\14\ The Second Proposed Rule Change was published for comment in
the Federal Register on December 14, 2020.\15\ On January 21, 2021, the
Exchange withdrew the Second Proposed Rule Change and refiled its
proposal.\16\
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    \11\ See Securities Exchange Act Release Nos. 90183 (October 14,
2020), 85 FR 66607 (October 20, 2020) (SR-EMERALD-2020-09) (Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fee Schedule To Adopt Application Programming Interface
(``API'') Testing and Certification Fees and Network Connectivity
Testing and Certification Fees); 90196 (October 15, 2020), 85 FR
67064 (October 21, 2020) (SR-EMERALD-2020-11) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee
Schedule To Adopt One-Time Membership Application Fees and Monthly
Trading Permit Fees). The Exchange's prior proposals to establish
the one-time membership application fee and per-instance API Testing
and Certification fees and Network Connectivity Testing and
Certification fees are collectively referred to herein as the
``First Proposed Rule Changes.'' The Exchange notes that it will
refile its proposal to establish monthly Trading Permit fees in a
separate filing.
    \12\ See id.
    \13\ See Comment Letter from Joseph W. Ferraro III, SVP, Deputy
General Counsel, the Exchange, dated November 20, 2020, notifying
the Commission that the Exchange will withdraw the First Proposed
Rule Changes.
    \14\ See Securities Exchange Act Release Nos. 90597 (December 8,
2020), 85 FR 80878 (December 14, 2020) (SR-EMERALD-2020-15) (the
``Second Proposed Rule Change'').
    \15\ See id.
    \16\ See Comment Letter from Joseph W. Ferraro III, SVP, Deputy
General Counsel, the Exchange, dated January 15, 2021, notifying the
Commission that the Exchange will withdraw the Second Proposed Rule
Change.
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One-Time Membership Application Fee
    The Exchange proposes to assess a one-time membership application
fee based upon the applicant's status as either an EEM or as a Market
Maker. The Exchange proposes that applicants for MIAX Emerald
membership as an EEM will be assessed a one-time application fee of
$2,500. The Exchange proposes that applicants for MIAX Emerald
membership as a Market Maker will be assessed a one-time application
fee of $3,000. The difference in the proposed membership application
fee to be charged to EEMs and Market Makers is because of the
additional review and resources involved in processing a Market Maker's
application, as Market Makers have greater and more complex obligations
with respect to doing business on the Exchange.\17\ MIAX Emerald's
proposed one-time membership application fees are the same as the one-
time application fees in place at the Exchange's affiliate, Miami
International Securities Exchange, LLC (``MIAX'') ($2,500 for an EEM
and $3,000 for a MIAX Market Maker) \18\, and similar to or less than
application fees for the Cboe Exchange, Inc. (``Cboe'') ($3,000 for an
individual applicant and $5,000 for an applicant organization) \19\ and
Nasdaq ISE, LLC (``Nasdaq ISE'') ($7,500 per firm for a

primary market maker, $5,500 per firm for a competitive market maker,
and $3,500 per firm for an electronic access member).\20\ Below is the
table showing the proposed one-time membership application fees for
EEMs and Market Makers:
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    \17\ See Chapter VI of the Exchange's rules, generally.
    \18\ See MIAX Fee Schedule, Section 3(a).
    \19\ See Cboe Fees Schedule, p. 9, Cboe Trading Permit Holder
Application Fees.
    \20\ See Nasdaq ISE, Options Rules, Options 7, Pricing Schedule,
Section 9. Legal and Regulatory A. Application.

------------------------------------------------------------------------
                                                            Application
                   Type of membership                           fee
------------------------------------------------------------------------
Electronic Exchange Member..............................       $2,500.00
Market Maker............................................        3,000.00
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API Testing and Certification Fees for Members
    The Exchange also proposes to adopt an API Testing and
Certification fee for Members. An API makes it possible for Member
software to communicate with MIAX Emerald software applications, and is
subject to Member testing with, and certification by, MIAX Emerald. API
testing and certification includes, for EEMs, testing all available
order types, new order entry, order management, order throughput and
mass order cancellation. For Market Makers, API testing and
certification also includes testing of all available quote types, quote
throughput, quote management and cancellation, Aggregate Risk Manager
settings and triggers, and confirmation of quotes within the trading
engines.
    The API Testing and Certification fees for Members are based upon
the type of interface that the Member has been credentialed to use. The
Exchange proposes to adopt an API testing and certification fee for
EEMs (other than Clearing Firms): (i) Initially per API for Financial
Information Exchange (``FIX'') \21\ ports, FIX Drop Copy (``FXD'') \22\
ports and Clearing Trade Drop (``CTD'') \23\ ports in the month the EEM
has been credentialed to use one or more ports in the production
environment for the tested API, and (ii) each time an EEM initiates a
change to its system that requires testing and certification. The
Exchange proposes to adopt an API testing and certification fee for EEM
Clearing Firms (i) initially per API in the month the EEM Clearing Firm
has been credentialed to use one or more CTD Ports in the production
environment, and (ii) each time an EEM Clearing Firm initiates a change
to its system that requires testing and certification.
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    \21\ ``FIX Port'' means an interface with MIAX Emerald systems
that enables the Port user to submit simple and complex orders
electronically to MIAX Emerald. See the Definitions section of the
Fee Schedule.
    \22\ The FIX Drop Copy (``FXD'') Port is a messaging interface
that will provide a copy of real-time trade execution, trade
correction and trade cancellation information to FXD Port users who
subscribe to the service. FXD Port users are those users who are
designated by an EEM to receive the information and the information
is restricted for use by the EEM. FXD Port Fees will be assessed in
any month the Member is credentialed to use the FXD Port in the
production environment. See the Definitions section of the Fee
Schedule.
    \23\ ``CTD Port'' or ``Clearing Trade Drop Port'' provides an
Exchange Member with a real-time clearing trade updates. The updates
include the Member's clearing trade messages on a low latency, real-
time basis. The trade messages are routed to a Member's connection
containing certain information. The information includes, among
other things, the following: (i) Trade date and time; (ii) symbol
information; (iii) trade price/size information; (iv) Member type
(for example, and without limitation, Market Maker, Electronic
Exchange Member, Broker-Dealer); and (v) Exchange MPID for each side
of the transaction, including Clearing Member MPID. See the
Definitions section of the Fee Schedule.
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    The Exchange proposes to adopt an API testing and certification fee
for Market Makers: (i) Initially per API for CTD and MIAX Emerald
Express Interface (``MEI'') \24\ ports in the month the Market Maker
has been credentialed to use one or more ports in the production
environment for the tested API and the Market Maker has been assigned
to quote in one or more classes, and (ii) each time a Market Maker
initiates a change to its system that requires testing and
certification. The Exchange also proposes that API Testing and
Certification fees will not be assessed in situations where the
Exchange initiates a mandatory change to the Exchange's System \25\
that requires testing and certification. The Exchange proposes to
assess Member API Testing and Certification fees of $1,000 for EEMs and
$2,500 for Market Makers. Below is the proposed table for API Testing
and Certification fees for Members:
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    \24\ The MEI is a connection to the MIAX Emerald System that
enables Market Makers to submit simple and complex electronic quotes
to MIAX Emerald. The Exchange offers Full Service MEI Ports, which
provide Market Makers with the ability to send Market Maker simple
and complex quotes, eQuotes, and quote purge messages to the MIAX
Emerald System. Full Service MEI Ports are also capable of receiving
administrative information. Market Makers are limited to two Full
Service MEI Ports per Matching Engine. The Exchange also offers
Limited Service MEI Ports, which provide Market Makers with the
ability to send simple and complex eQuotes and quote purge messages
only, but not Market Maker Quotes, to the MIAX Emerald System.
Limited Service MEI Ports are also capable of receiving
administrative information. Market Makers initially receive two
Limited Service MEI Ports per Matching Engine. See the Definitions
section of the Fee Schedule.
    \25\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.

------------------------------------------------------------------------
                                                            API Testing
                                                                and
                     Type of member                        Certification
                                                                fee
------------------------------------------------------------------------
Electronic Exchange Member..............................       $1,000.00
Market Maker............................................        2,500.00
------------------------------------------------------------------------

API Testing and Certification Fee for Non-Members
    The Exchange proposes to adopt an API Testing and Certification fee
for Third Party Vendors,\26\ Service Bureaus \27\ and other non-Members
(such as clearing firms): (i) Initially per API for FIX, FXD, CTD and
MEI ports in the month the Third Party Vendor, Service Bureau or non-
Member has been credentialed to use one or more ports in the production
environment for the tested API, and (ii) each time a Third Party
Vendor, Service Bureau, or other non-Member initiates a change to its
system that requires testing and certification. The Exchange also
proposes that API Testing and Certification fees will not be assessed
to non-Members in situations where the Exchange initiates a mandatory
change to the Exchange's System that requires testing and
certification.
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    \26\ Third Party Vendors are subscribers of MIAX Emerald's
market and other data feeds, which they in turn use for
redistribution purposes. See the Definitions section of the Fee
Schedule.
    \27\ ``Service Bureau'' means a technology provider that offers
and supplies technology and technology services to a trading firm
that does not have its own proprietary system. See the Definitions
section of the Fee Schedule.
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    The Exchange proposes to assess non-Member API Testing and
Certification fees of $1,200 for Third Party Vendors, Service Bureaus
and other non-Members. Below is the proposed table for API Testing and
Certification fees for non-Members:

------------------------------------------------------------------------
                                                         API Testing and
                       Non-Member                          Certification
                                                               fee
------------------------------------------------------------------------
Third Party Vendors and Service Bureaus and other non-        $1,200.00
 Members...............................................
------------------------------------------------------------------------

    The proposed higher fee charged to Third Party Vendors, Service
Bureaus and non-Members reflects the greater amount of time spent by
MIAX Emerald employees testing and certifying non-Members. It has been
MIAX Emerald's experience that Member testing takes less time than non-
Member testing because Members have more experience testing these
systems with exchanges, resulting in generally fewer questions and
issues arising during the testing and certification process. Also,
because Third Party Vendors and Service Bureaus are redistributing data
and reselling services to other Members and

market participants, the number and types of scenarios that need to be
tested are more numerous and complex than those tested and certified
for a single Member.
    The Exchange believes it is necessary to charge an API Testing and
Certification fee to Members and non-Members because of the time and
resources spent to ensure that Member and non-Member APIs function
correctly to prevent any System malfunction. Further, the Exchange
believes the price differential in API Testing and Certification fees
for Members and non-Members is not unfairly discriminatory because, in
the Exchange's experience, Member testing takes less time than non-
Member testing as Members have more experience testing these systems
with exchanges, resulting generally in fewer questions and issues
arising during the testing and certification process.
Network Connectivity Testing and Certification Fee for Members
    The Exchange established electronic communication connections with
Members and now proposes to assess Members a Network Connectivity
Testing and Certification fee for each 1 Gigabit (``Gb'') connection
and 10 Gb ultra-low-latency (``ULL'') connection. The Exchange proposes
to assess a Member Network Connectivity Testing and Certification fee:
(i) Initially per connection in the month the Individual Firm has been
credentialed to use any API or market data feeds in the production
environment utilizing the tested network connection, and (ii) each time
an individual firm initiates a change to its system that requires
network connectivity testing and certification. Network Connectivity
Testing and Certification fees will not be assessed in situations where
the Exchange initiates a mandatory change to the Exchange's system that
requires testing and certification. Member Network Connectivity Testing
and Certification fees will not be assessed for testing and
certification of connectivity to the Exchange's Disaster Recovery
Facility.
    The Exchange proposes to assess Members a Network Connectivity
Testing and Certification Fee of $1,000 per 1Gb connection and $4,000
per 10Gb ULL connection. Below is the proposed table for Member Network
Connectivity Testing and Certification fees:

----------------------------------------------------------------------------------------------------------------
                                                                  1 Gigabit fee per      10 Gigabit ULL fee per
                       Type of member                                connection                connection
----------------------------------------------------------------------------------------------------------------
Individual Firm.............................................                $1,000.00                 $4,000.00
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    The proposed fee amounts are identical to the fees currently
assessed for the same services at the Exchange's affiliate options
exchanges, MIAX and MIAX PEARL, LLC (``MIAX PEARL''). The Exchange
notes that the Emerald Express Network Interconnect (``EENI'') \28\ is
a network infrastructure which provides Members and non-Members network
connectivity to the trading platforms, market data systems, test
systems, and disaster recovery facility of the Exchange. When utilizing
a Shared \29\ cross-connect, the EENI can also be configured to offer
network connectivity to the trading platforms, market data systems,
test systems, and disaster recovery facilities of the Exchange's
affiliate options exchanges, MIAX and MIAX PEARL. Members utilizing a
single, Shared cross-connect to connect to the trading platforms,
market data systems, test systems, and disaster recovery facilities of
the Exchange, MIAX and MIAX PEARL will only be assessed one Network
Connectivity Testing and Certification fee per connection tested,
regardless of the trading platforms, market data systems, test systems,
and disaster recovery facilities accessed via such connection.
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    \28\ ``EENI'' means the Emerald Express Network Interconnect,
which is a network infrastructure which provides Members and non-
Members network connectivity to the trading platforms, market data
systems, test systems, and disaster recovery facilities of MIAX
Emerald. When utilizing a Shared cross-connect, the EENI can also be
configured to offer network connectivity to the trading platforms,
market data systems, test systems, and disaster recovery facilities
of MIAX and MIAX PEARL. When utilizing a Dedicated cross-connect,
the EENI can only be configured to offer network connectivity to the
trading platforms, market data systems, and test systems of MIAX
Emerald. The EENI consists of the low latency and ultra-low latency
connectivity options set forth in the Exchange's Fee Schedule. See
the Definitions section of the Fee Schedule.
    \29\ ``Shared'' (cross-connect) means cross-connect that
provides network connectivity to the trading platforms, market data
systems, test systems, and/or disaster recovery facilities of MIAX
Emerald, MIAX and MIAX PEARL via a single, shared connection. The
following connections can be Shared across MIAX Emerald, MIAX and
MIAX PEARL: 1 Gigabit, 1 Gigabit Disaster Recovery, and 10 Gigabit
Disaster Recovery. See the Definitions section of the Fee Schedule.
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Network Connectivity Testing and Certification Fee for Non-Members
    MIAX Emerald established electronic communication connections with
Service Bureaus, Extranet Providers and other non-Members, and now
proposes to assess a Network Connectivity Testing and Certification fee
for each 1Gb connection and 10Gb ULL connection. The Exchange proposes
to assess a non-Member Network Connectivity Testing and Certification
fee: (i) Initially per connection in the month the Service Bureau,
Extranet Provider or other non-Member has been credentialed to use any
API or market data feeds in the production environment using the tested
network connection, and (ii) each time the Service Bureau, Extranet
Provider or other non-Member initiates a change to its system that
requires network connectivity testing and certification. Network
Connectivity Testing and Certification fees will not be assessed in
situations where the Exchange initiates a mandatory change to the
Exchange's system that requires testing and certification. Non-Member
Network Connectivity Testing and Certification fees will not be
assessed for testing and certification of connectivity to the
Exchange's Disaster Recovery Facility.
    The Exchange proposes to assess non-Members a Network Connectivity
Testing and Certification Fee of $1,200 per 1Gb connection and $4,200
per 10Gb ULL connection. Below is the proposed table for non-Member
Network Connectivity Testing and Certification fees:

----------------------------------------------------------------------------------------------------------------
                                                                  1 Gigabit fee per      10 Gigabit ULL fee per
                         Non-Member                                  connection                connection
----------------------------------------------------------------------------------------------------------------
Service Bureau/Extranet Provider and other non-Members......                $1,200.00                 $4,200.00
----------------------------------------------------------------------------------------------------------------

    The EENI is also available to non-Member subscribers. For non-
Member subscribers, when utilizing a Shared cross-connect, the EENI can
also be configured to offer network connectivity to the trading
platforms, market data systems, test systems, and disaster recovery
facilities of the Exchange's affiliate options exchanges, MIAX and MIAX
PEARL. Accordingly, non-Members utilizing Shared cross-connects to
connect to the trading platforms, market data systems, test systems,
and disaster recovery facilities of the Exchange and its affiliates,
MIAX and MIAX PEARL, will only be assessed one Network Connectivity
Testing and Certification fee per connection tested, regardless of the
trading platforms, market data systems, test systems, and disaster
recovery facilities accessed via such connection. The Member and non-
Member Network Testing and Certification fees represent installation
and support costs incurred by the Exchange as it works with each Member
and non-Member to make sure there are appropriate electronic
communication connections with MIAX Emerald. The Exchange's affiliate
options exchanges, MIAX and MIAX PEARL, charge the same fees for the
same services for their Members and non-Members.\30\ The Exchange
proposes to assess a higher Network Connectivity Testing and
Certification fee to non-Members than to Members, similar to how MIAX
and MIAX PEARL assesses such fees to their Members and non-Members. The
proposed higher fee charged to non-Members reflects the greater amount
of time spent by MIAX Emerald employees testing and certifying non-
Members. It has been MIAX Emerald's experience that Member network
connectivity testing takes less time than non-Member network
connectivity testing because Members have more experience testing these
systems with exchanges as generally fewer questions and issues arise
during the testing and certification process.
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    \30\ See MIAX Fee Schedule, Sections 4(c) and 4(d); see also
MIAX PEARL Fee Schedule, Sections 4(c) and 4(d).
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2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \31\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \32\ in
particular, in that it is an equitable allocation of reasonable dues,
fees and other charges among its members and issuers and other persons
using its facilities. The Exchange also believes the proposal furthers
the objectives of Section 6(b)(5) of the Act in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest and is not designed to permit unfair discrimination between
customers, issuers, brokers and dealers.
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    \31\ 15 U.S.C. 78f(b).
    \32\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange launched trading on March 1, 2019. For the month of
December 2020, the Exchange had only a 3.58% market share of the U.S.
options industry.\33\ The Exchange is not aware of any evidence that a
market share of approximately 3% provides the Exchange with anti-
competitive pricing power. If the Exchange were to attempt to establish
unreasonable pricing, then no market participant would apply to become
a Member of the Exchange, or test and certify with the Exchange's
trading System.
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    \33\ See The Options Clearing Corporation (``OCC'') publishes
options and futures volume in a variety of formats, including daily
and monthly volume by exchange, available here: https://www.theocc.com/market-data/volume/default.jsp.
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    The Exchange believes the proposed one-time membership application
fee is reasonable, equitable and not unfairly discriminatory because it
is a one-time fee that is reasonably related to (and designed to
recover) the Exchange's cost associated with reviewing and approving
membership applications, which consists primarily of the time and
resources of Exchange personnel to process the membership application
and conduct the new member on-boarding process. The Exchange's process
for reviewing and approving potential new Members involves several
steps and participation from personnel in multiple Exchange
departments, as follows: (i) Reviewing prospective Member information
provided in various membership forms, including, where necessary,
possibly consulting with FINRA, pursuant to the Exchange's Regulatory
Services Agreement; (ii) the on-boarding process, where Exchange
personnel contacts the firm for an introductory meeting with the
Exchange's Business Team to discuss goals, answer questions and
schedule the technical on-boarding meeting; (iii) the technical on-
boarding meeting, where the Exchange's on-boarding team and Trading
Operations Team guides the firm through the on-boarding process with
Exchange personnel available to discuss network connectivity, APIs,
Exchange functionality and operational issues; and (iv) follow-ups with
the Trading Operations Team to coordinate testing, as necessary, until
the firm is active in the Exchange's live trading environment.\34\
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    \34\ See the Exchange's Membership and Technical Onboarding
process, available at https://www.miaxoptions.com/membership/emerald.
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    The Exchange tracks the number of hours spent by Exchange personnel
providing the aforementioned services per membership application. Based
on the average number of person hours spent by the Exchange on
processing a typical membership application, and based on the
Exchange's average cost per full-time employee (``FTE'') of
approximately $250,000 (inclusive of all compensation and employee
benefits) per year, the Exchange represents that its cost to provide
this service is reasonably related to (and often exceeds) the amount of
the membership application fee the Exchange proposes to charge for such
service. In particular, it takes approximately 40 person hours to
review, on-board and approve a membership application. Therefore, the
cost to the Exchange for the review, on-boarding, and approval of each
application is, on average, approximately $4,000-$5,000 (with EEM
application costs closer to $4,000, versus Market Maker application
costs closer to $5,000). Accordingly, the proposed one-time membership
application fee would enable the Exchange to recover a material portion
of such cost. The Exchange believes this is a conservative cost
allocation because the Exchange is not allocating any additional costs
beyond the employee compensation costs for employees directly involved
in this process, such as costs associated with management review and
sign off, compliance team reviews, technology costs of employees,
office space costs of employees, costs associated with supporting
departments' time for things such as internal meetings, project
management coordination among the individuals who indirectly support
the membership approval and on-boarding processes, and various other
indirectly-related costs.
    The Exchange also points out that it is not seeking to recoup any
of its past costs associated with reviewing membership applications
that took place during the Waiver Period. The Exchange currently has 35
Members,\35\ all of whom did not pay the one-time membership
application fee, as it was waived for the Waiver Period when these
firms all became Members of the Exchange. Further, the majority of
firms

that are Members of the Exchange's affiliate options exchanges, MIAX
and MIAX PEARL, also became Members of those exchanges during similar
Waiver Periods for the MIAX and MIAX PEARL one-time membership
application fees. Accordingly, the Exchange (and MIAX and MIAX PEARL)
have assumed approximately 100% of the costs associated with processing
membership applications for the majority of Member firms approved by
the Exchange, MIAX, and MIAX PEARL. Accordingly, the Exchange believes
that it is reasonable, equitable, and not unfairly discriminatory to
now adopt a one-time membership application fee that is reasonably
related to (and designed to recover) the Exchange's cost associated
with reviewing and approving membership applications.
---------------------------------------------------------------------------

    \35\ See https://www.miaxoptions.com/exchange-members/emerald.
---------------------------------------------------------------------------

    The Exchange believes the proposed API Testing and Certification
fees and Network Connectivity Testing and Certification fees are
reasonable, equitable and not unfairly discriminatory. The Exchange
tracks the number of hours spent by Exchange personnel providing API
testing and certification services per billable instance. Based on the
average number of person hours spent by the Exchange on API testing and
certification services, and based on the Exchange's average cost per
FTE of approximately $250,000 (inclusive of all compensation and
employee benefits) per year, the Exchange represents that its costs to
provide these services are reasonably related to (and often exceed) the
amount of the respective testing and certification fees the Exchange
proposes to charge for such services. In particular, it takes
approximately 20 person hours to complete the API testing and
certification process. Therefore, the cost to the Exchange to provide
API testing and certification services is, on average, approximately
$2,500 per instance (with EEM and non-Member testing and certification
costs closer to $2,000, versus Market Maker testing and certification
costs closer to $3,000). Accordingly, the proposed API Testing and
Certification fees would enable the Exchange to recover a material
portion of such costs. The Exchange believes this is a conservative
cost allocation because the Exchange is not allocating any additional
costs beyond the employee compensation costs for employees directly
involved in this process, such as management review and sign off,
technology costs of employees, office space costs of employees, costs
associated with supporting departments' time for things such as
internal meetings, project management coordination among the
individuals who indirectly support the testing and certification
process, and various other indirectly-related costs.
    The Exchange also points out that it is not seeking to recoup any
of its past costs associated with conducting API testing and
certification that took place during the Waiver Period. The Exchange
currently has 35 Members,\36\ all of whom did not pay the API testing
and certification fee, as it was waived for the Waiver Period when
these firms all became Members of the Exchange. Further, the majority
of firms that are Members of the Exchange's affiliate options
exchanges, MIAX and MIAX PEARL, also became Members of those exchanges
during similar Waiver Periods for the MIAX and MIAX PEARL API Testing
and Certification fees. Accordingly, the Exchange (and MIAX and MIAX
PEARL) have assumed approximately 100% of the costs associated with
conducting API testing and certification for the majority of Member
firms approved by the Exchange, MIAX, and MIAX PEARL. Accordingly, the
Exchange believes that it is reasonable, equitable, and not unfairly
discriminatory to now adopt a per-instance fee that is reasonably
related to (and designed to recover) the Exchange's cost associated
with conducting API testing and certification.
---------------------------------------------------------------------------

    \36\ See id.
---------------------------------------------------------------------------

    The Exchange also tracks the number of hours spent by Exchange
personnel providing network connectivity testing and certification
services per billable instance. Based on the average number of person
hours spent by the Exchange on network connectivity testing and
certification services, and based on the Exchange's average cost per
FTE of approximately $250,000 (inclusive of all compensation and
employee benefits) per year, the Exchange represents that its costs to
provide these services are reasonably related to (and often exceed) the
amount of the respective testing and certification fees the Exchange
proposes to charge for such services. In particular, it takes
approximately 20 person hours to complete the network testing and
certification process for 1 Gigabit connections, and approximately 40
person hours to complete the network testing and certification process
for 10 Gigabit ULL connections. Therefore, the cost to the Exchange to
provide network connectivity testing and certification services is, on
average, approximately $2,500 per instance for 1 Gigabit connections,
and approximately $5,000 per instance for 10 Gigabit ULL connections.
Accordingly, the proposed Network Connectivity Testing and
Certification fees would enable the Exchange to recover a material
portion of such costs. The Exchange believes this is a conservative
cost allocation because the Exchange is not allocating any additional
costs beyond the employee compensation costs for employees directly
involved in this process, such as management review and sign off,
technology costs of employees, office space costs of employees, costs
associated with supporting departments' time for things such as
internal meetings, project management coordination among the
individuals who indirectly support the testing and certification
process, and various other indirectly-related costs.
    The Exchange believes the difference in the proposed membership
application fee to be charged to EEMs and Market Makers is an equitable
allocation of reasonable dues and fees pursuant to Section 6(b)(4) of
the Act \37\ because of the additional review and resources involved in
processing a Market Maker's application as opposed to an EEM's
application, as Market Makers have greater and more complex obligations
with respect to doing business on the Exchange.\38\
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78f(b)(4).
    \38\ See supra note 17.
---------------------------------------------------------------------------

    The Exchange believes its proposal to adopt API Testing and
Certification fees and Network Connectivity Testing and Certification
fees for Members and non-Members is an equitable allocation of
reasonable dues and fees pursuant to Section 6(b)(4) of the Act \39\
because it is a per-instance fee that is reasonably related to (and
designed to recover) the Exchange's cost associated with providing such
API Testing and Certification services and Network Connectivity Testing
and Certification services, which consists primarily of the time and
resources spent to ensure that Member and non-Member APIs and
connectivity function correctly to prevent any System malfunction.
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Further, the Exchange believes the price differential in API
Testing and Certification fees and Network Connectivity Testing and
Certification fees for Members and non-Members is not unfairly
discriminatory because, in the Exchange's experience, Member testing
utilizes less Exchange resources and employee time than non-Member
testing as Members have more experience testing these systems with
exchanges, resulting generally in fewer questions and issues arising
during the testing and certification process. Also, with respect to API
testing and certification, because Third Party

Vendors and Service Bureaus are redistributing data and reselling
services to other Members and market participants the number and types
of scenarios that need to be tested are more numerous and complex than
those tested and certified for Members.
    The Exchange believes the difference in the proposed 1 Gigabit and
10 Gigabit ULL network connectivity testing and certification fees is
an equitable allocation of reasonable dues and fees pursuant to Section
6(b)(4) of the Act \40\ because of the additional review and resources
involved in testing and certifying a 10 Gigabit ULL connection as
opposed to a 1 Gigabit connection, as 10 Gigabit ULL connections offer
vastly greater products and services which require significantly more
time to test, including Market Maker quoting systems. The Exchange
believes its proposed API Testing and Certification fees and Network
Connectivity Testing and Certification fees are reasonable and well
within the range of non-transaction fees assessed among other
exchanges, including the Exchange's affiliate options exchanges, MIAX
and MIAX PEARL.\41\
---------------------------------------------------------------------------

    \40\ 15 U.S.C. 78f(b)(4).
    \41\ See supra note 30.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Intra-Market Competition
    The Exchange believes that the proposed fees do not put any market
participants at a relative disadvantage compared to other market
participants. The proposed fees would apply to all new Exchange Members
and those firms looking to establish APIs and network connectivity in
the same manner. Market participants may not only choose whether to
become Exchange Members at all, but may choose to become members at
competing options exchanges instead.
    The Exchange further believes the proposed fees do not place any
market participant at a disadvantage compared to other market
participants because the proposed API Testing and Certification and
Network Connectivity Testing and Certification fees are intended to
cover the situations where a Member or non-Member firm makes changes to
its own system for its own business purpose (i.e., instances where a
firm is trying to improve its quoting engine), which requires the
Exchange to test those re-architected systems. This testing requires
the time of Exchange personnel in several departments (Trading
Operations, Business, On-Boarding, Membership), and occurs primarily
outside of normal business hours, often over the course of the weekend.
The proposed fees are a way for the Exchange to recoup its costs
associated with this testing. When the Exchange determines to make
upgrades to its own system which requires mandatory testing and
certification by Members, the Exchange does not charge any fees.
    The Exchange believes that the proposed fees do not dampen
innovation because the majority of Exchange Members are members of
most, if not all, of the other 15 options exchanges. Those exchanges
also require testing and certification any time the Member makes
changes to its system at those exchanges, and also charge a fee to
recoup the costs associated with testing and certifying members. The
Exchange also notes that it has never received a complaint from a
Member or non-Member any time a Member or non-Member has made a change
to its own system that resulted in the Exchange assessing a testing and
certification fee. Without some sort of testing and certification fee,
the Exchange believes that Members and non-Members might be less
efficient in testing their systems, potentially resulting in excessive
time being consumed by the Exchange re-testing and re-certifying
Members and non-Members, to the detriment of all market participants as
Exchange resources are diverted away from other trading operations.
    The Exchange also believes that the proposed fees neither favor nor
penalize one or more categories of market participants in a manner that
would impose an undue burden on competition. To the extent that various
market participants are charged different fees for the one-time
membership application and per-instance API and network connectivity
testing, those distinctions are not unfairly discriminatory and do not
unfairly burden one set of market participants over another. The
difference in the proposed membership application fee to be charged to
EEMs and Market Makers is because of the additional review and
resources involved in processing a Market Maker's application, as
Market Makers have greater and more complex obligations with respect to
doing business on the Exchange.\42\ The proposed higher fee charged to
Third Party Vendors, Service Bureaus and non-Members reflects the
greater amount of time spent by MIAX Emerald employees testing and
certifying non-Members. It has been MIAX Emerald's experience that
Member testing takes less time than non-Member testing because Members
have more experience testing these systems with exchanges, resulting in
generally fewer questions and issues arising during the testing and
certification process. Also, because Third Party Vendors and Service
Bureaus are redistributing data and reselling services to other Members
and market participants, the number and types of scenarios that need to
be tested are more numerous and complex than those tested and certified
for a single Member. The higher fee charged to non-Members reflects the
greater amount of time spent by MIAX Emerald employees testing and
certifying non-Members. It has been MIAX Emerald's experience that
Member network connectivity testing takes less time than non-Member
network connectivity testing because Members have more experience
testing these systems with exchanges as generally fewer questions and
issues arise during the testing and certification process. The proposed
higher fee charged for 10 Gigabit ULL connections versus 1 Gigabit ULL
connections reflects the greater amount of time spent by MIAX Emerald
employees testing and certifying 10 Gigabit ULL connections. MIAX
Emerald's proposed one-time membership application fee and per-instance
API Testing and Certification fee levels and Network Connectivity
Testing and Certification fee levels, as described herein, are
comparable to fee levels charged by other options exchanges for the
same or similar services, including those fees assessed by the
Exchange's affiliates, MIAX and MIAX PEARL.\43\
---------------------------------------------------------------------------

    \42\ See supra note 17.
    \43\ See supra notes 18, 19, 20 and 30.
---------------------------------------------------------------------------

    The Exchange believes that the proposed API Testing and
Certification fees and Network Connectivity Testing and Certification
fees do not place certain market participants at a relative
disadvantage to other market participants because the fees do not apply
unequally to different size market participants, but instead would
allow the Exchange to charge for the time and resource necessary for
API testing and certification and network connectivity testing and
certification for Members and non-Members to ensure proper functioning
of all available order types, new order entry, order management, order
throughput and mass order cancellation (as well as, for Market Makers,
all available quote types, quote

throughput, quote management and cancellation, Aggregate Risk Manager
settings and triggers, and confirmation of quotes within the trading
engines). Accordingly, the proposed API Testing and Certification fees
and network connectivity testing and certification fees do not favor
certain categories of market participants in a manner that would impose
a burden on competition.
Inter-Market Competition
    The Exchange believes the proposed API Testing and Certification
fees and Network Connectivity Testing and Certification fees do not
place an undue burden on competition on other SROs that is not
necessary or appropriate. The Exchange believes that the proposed fees
do not impose a burden on competition or on other exchanges that is not
necessary or appropriate because of the availability of numerous
substitute options exchanges. There are 15 other options exchanges
where market participants can become members.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\44\ and Rule 19b-4(f)(2) \45\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \45\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-EMERALD-2021-01 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-EMERALD-2021-01.
This file number should be included on the subject line if email is
used. To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for website
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE, Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-EMERALD-2021-01 and should
be submitted on or before February 26, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\46\
---------------------------------------------------------------------------

    \46\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02398 Filed 2-4-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: August 18, 2010 (Volume 75, Number 159)]
[Notices]
[Page 51033]
[DOCID:fr18au10-81]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL10-73-000]

BE Louisiana, LLC; Notice of Institution of Section 206
Proceeding and Refund Effective Date

August 12, 2010.
    On August 11, 2010, the Commission issued an order that instituted
a proceeding in Docket No. EL10-73-000, pursuant to section 206 of the
Federal Power Act (FPA), 16 USC 824e, to determine whether the J.P.
Morgan Sellers' \1\ market-based rate authority in the Cleco
Corporation, Inc. balancing authority area remains just and reasonable.
BE Louisiana, LLC, 132 FERC ] 61,118 (2010).
---------------------------------------------------------------------------

    \1\ For purposes of this notice, the J.P. Morgan Sellers are BE
Louisiana, LLC, Cedar Brakes I, L.L.C., Cedar Brakes II, L.L.C.,
J.P. Morgan Commodities Canada Corporation, J.P. Morgan Ventures
Energy Corporation, and Utility Contract Funding, L.L.C.
---------------------------------------------------------------------------

    The refund effective date in Docket No. EL10-73-000, established
pursuant to section 206(b) of the FPA, will be the date of publication
of this notice in the Federal Register.

Kimberly J. Bose,
Secretary.
[FR Doc. 2010-20456 Filed 8-17-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 142 (Wednesday, July 26, 2017)]
[Notices]
[Pages 34727-34728]
[FR Doc No: 2017-15636]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81181; File No. SR-ISE-2017-52]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To Adopt Rule 912

July 20, 2017.
    On June 9, 2017, Nasdaq ISE, LLC (``ISE'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to adopt Rule 912 (Consolidated Audit Trail--Fee
Dispute Resolution). The proposed rule change was published for comment
in the Federal Register on June 23, 2017.\3\ The Commission received no
comment letters on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 80971 (June 19, 2017),
82 FR 28698 (``Notice'').
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \4\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
Commission is extending this 45-day time period.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds that it is appropriate to designate a longer
period within which to take action on the proposed rule change so that
it has sufficient time to consider the proposed rule change. The
proposed rule change would establish the procedures for resolving
potential disputes related to CAT Fees charged to Industry Members.

    Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\5\ designates September 21, 2017, as the date by which the
Commission should either approve or disapprove or institute proceedings
to determine whether to disapprove the proposed rule change (File
Number SR-ISE-2017-52).
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(2).
    \6\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-15636 Filed 7-25-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 115 (Tuesday, June 16, 2015)]
[Notices]
[Page 34397]
[FR Doc No: 2015-14747]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. IS14-607-000, et al.]

Zydeco Pipeline Company, LLC; Notice of Informal Settlement
Conference

    Take notice that an informal settlement conference will be convened
in this proceeding commencing at 10:00 a.m. on June 22, 2015, at the
offices of the Federal Energy Regulatory Commission, 888 1st, NE.,
Washington, DC 20426, for the purpose of exploring the possible
settlement of the above-referenced case.
    Any party, as defined by 18 CFR 385.102(c), or any participant as
defined by 18 CFR 385.102(b), is invited to attend. Persons wishing to
become a party must move to intervene and receive intervenor status
pursuant to the Commission's regulations (18 CFR 385.214).
    FERC conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations please
send an email to<EMAIL_ADDRESS>or call toll free 1-866-208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a FAX to<PHONE_NUMBER> with
the required accommodations.
    For additional information, please contact Joel Cockrell
<EMAIL_ADDRESS>202-502-8153 or Nicolas McTyre
<EMAIL_ADDRESS>202-502-8356.

    Dated: June 10, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-14747 Filed 6-15-15; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 96 (Friday, May 19, 2017)]
[Proposed Rules]
[Pages 22924-22925]
[FR Doc No: 2017-10077]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2017-0287; Airspace Docket No. 17-ACE-6]

Proposed Amendment of Class E Airspace, for Wayne, NE

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to modify Class E airspace extending up
to 700 feet above the surface at Wayne Municipal Airport, Wayne, NE, to
accommodate new standard instrument approach procedures for instrument
flight rules (IFR) operations at the airport. This action is necessary
due to the decommissioning of the Wayne non-directional Radio Beacon
(NDB) serving the airport, and cancellation of the NDB approach. This
proposal would enhance the safety and management of IFR operations at
the airport. This action also would adjust the geographic coordinates
of the airport.

DATES: Comments must be received on or before July 3, 2017.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590; telephone
(202) 366-9826, or 1-800-647-5527. You must identify FAA Docket No.
FAA-2017-0287/Airspace Docket No. 17-ACE-6, at the beginning of your
comments. You may also submit comments through the Internet at http://www.regulations.gov.
    FAA Order 7400.11A, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11A at NARA, call<PHONE_NUMBER>, or go
to http://www.archives.gov/federal_register/code_of_federal-regulations/ibr_locations.html.
    FAA Order 7400.11A, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Ron Laster, Federal Aviation
Administration, Contract Support, Operations Support Group, Central
Service Center, 10101 Hillwood Parkway, Fort Worth, TX 76177; telephone
(817) 222-5879.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would amend Class E airspace to support IFR operations in
standard instruments approach procedures at the airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2017-0287/
Airspace Docket No. 17-ACE-6.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Federal

Aviation Administration, Air Traffic Organization, Central Service
Center, Operations Support Group, 10101 Hillwood Parkway, Fort Worth,
TX 76177.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability and Summary of Documents Proposed for Incorporation by
Reference

    This document proposes to amend FAA Order 7400.11A, Airspace
Designations and Reporting Points, dated August 3, 2016, and effective
September 15, 2016. FAA Order 7400.11A is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11A lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 by modifying Class E airspace extending
upward from 700 feet above the surface within a 6.5-mile radius
(reduced from 7.5-miles) of Wayne Municipal Airport, Wayne, NE.
Airspace redesign of standard instrument approach procedures is
necessary for IFR operations at the airport due to the decommissioning
of the Wayne NDB, and cancellation of the NDB approach. The geographic
coordinates of the airport also would be updated to be in concert with
the FAA's aeronautical database. This action would enhance the safety
and management of the standard instrument approach procedures for IFR
operations at the airport.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.11A, dated August 3, 2016, and effective September 15,
2016, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in the Order.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a regulatory evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority:  49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR 1959-1963 Comp., p. 389.

Sec.  71.1   [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11A,
Airspace Designations and Reporting Points, dated August 3, 2016, and
effective September 15, 2016, is amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ACE NE E5 Wayne, NE [Amended]

Wayne Municipal Airport, NE
    (Lat. 42[deg]14'30'' N., long. 96[deg]58'56'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.5-mile radius of Wayne Municipal Airport.

    Issued in Fort Worth, Texas, on May 8, 2017.
Walter Tweedy,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2017-10077 Filed 5-18-17; 8:45 am]
 BILLING CODE 4910-13-P