[Federal Register Volume 84, Number 248 (Friday, December 27, 2019)]
[Notices]
[Pages 71488-71491]
[FR Doc No: 2019-27873]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87806; File No. SR-CBOE-2019-123]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 8.10 To Remove the Attestation Filing Requirements in Connection
With Trading Permit Holders' Policy and Procedures Regarding the Misuse
of Material, Nonpublic Information

December 19, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 17, 2019, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 8.10 to remove the attestation filing requirements in
connection with Trading Permit Holders' (``TPHs'') policy and
procedures regarding the misuse of material, nonpublic information. The
text of the proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to remove the Rule 8.10 requirement that TPHs
that file only annual SEC Form X-17A-5

reports (``FOCUS Reports'') \5\ must also file contemporaneous
attestations regarding compliance with the maintenance and enforcement
of policies and procedures to prevent the misuse of material, nonpublic
information with such reports. In addition, the Exchange also proposes
to remove Rule 8.10.03, which provides that a subset of TPHs that file
annual FOCUS Reports may use Exchange-developed OE-418 forms to satisfy
the Rule 8.10 filing and recordkeeping requirements.\6\
---------------------------------------------------------------------------

    \5\ FOCUS Reports are ``Financial and Operational Combined
Uniform Single Reports'' and must be completed by all broker-dealers
registered with the Securities and Exchange Commission (the
``Commission''). The form reports a broker-dealer's financial and
operating condition.
    \6\ See Cboe Options Regulatory Circular RG19-003, which sets
forth the criteria for use of form OE-418: (1) Individual TPHs with
no employees; (2) individual TPHs who employ no more than three non-
TPH employees; or (3) TPH organizations with no more than three
employees who are nominees and which employ no more than six non-TPH
employees. (January 11, 2019).
---------------------------------------------------------------------------

    Current Rule 8.10 provides that every TPH shall establish, maintain
and enforce written policies and procedures reasonably designed, taking
into consideration the nature of such TPH's business, to prevent the
misuse, in violation of the Securities Exchange Act of 1934 (the
``Act'') and Exchange Rules, of material, nonpublic information by such
TPH or persons associated with such TPH. It also provides that TPHs
required to file FOCUS Reports on an annual basis only, pursuant to
Rule 7.3 (Financial Reports), must contemporaneously file, with their
annual reports, attestations signed by such TPHs stating that the
procedures mandated by Rule 8.10 have been established, enforced and
maintained. Current Rule 8.10.03 provides that the Exchange-developed
form (OE-418) may be submitted by a subset of TPHs that only file
annual FOCUS Reports to satisfy attestation and record keeping
requirements pursuant to Rule 8.10. Specifically, the Exchange
implemented the attestation requirement for TPHs that file FOCUS
Reports only annually because those TPHs that file FOCUS Reports on a
more frequent basis (i.e., monthly and quarterly) were generally
subject to periodic exams by the Exchange in which the Exchange
reviewed, among other things, the procedures maintained by such TPHs
pursuant to Rule 8.10.\7\ TPHs filing FOCUS Reports only annually were
not subject to periodic exams by the Exchange at the time when Rule
8.10 was originally adopted.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 29967 (November 19,
1991), 56 FR 61067 (November 29, 1991) (SR-CBOE-91-41).
---------------------------------------------------------------------------

    Today, however, all TPHs are subject to the Exchange's risk-based
exam process, which is conducted by Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange pursuant to a
regulatory services agreement (``RSA''). Examinations are based on an
annual risk assessment to determine the cycle, scope and content of
examinations per firm to ensure each firm is appropriately examined.\8\
Moreover, the Exchange may conduct off-cycle examinations of a TPH, as
necessary.
---------------------------------------------------------------------------

    \8\ While examinations are on a risk-based exam cycle, each TPH
is examined no less than every three years.
---------------------------------------------------------------------------

    The Exchange notes that no more than 10 TPHs currently fall under
the Rule 8.10 attestation requirement, and that the Exchange currently
collects the OE-418 forms in accordance with Rule 8.10.03 for those
TPHs that submit the form to satisfy the Rule's attestation and record-
keeping requirements. As a result of the proposed rule change, all TPHs
would continue to be subject to the Rule 8.10 recordkeeping
requirement, which, pursuant to Rule 7.1, a TPH must make available to
the Exchange upon request. The Exchange believes it is an additional
administrative burden to the limited number of TPHs who are required to
submit an attestation when all TPHs are now subject to periodic
examination, including review of the TPHs procedures pursuant to Rule
8.10, if warranted.
    The Exchange further notes that all TPHs are subject to Rule 8.16,
which provides that, among other things, each TPH and associated person
of a TPH is required to be under the supervision and control of
appropriately qualified supervisor, as well as implement written
supervisory procedures and a system for applying such procedures to
supervise the types of business in which the TPH engages and to
supervise the activities of all associated persons. Under paragraph (g)
of Rule 8.16, each TPH must conduct an interview or meeting with all
associated persons, during which compliance matters relevant to the
activities of the associated person are discussed. Each TPH must also
conduct an annual compliance review and written report on the TPH's
supervision and compliance effort during the preceding year and on the
adequacy of the TPH's ongoing compliance processes and procedures. The
Rule further requires that the TPH's Chief Executive Officer (``CEO'')
(or equivalent officer) certifies that the TPH has processes in place
to: (a) Establish and maintain policies and procedures reasonably
designed to achieve compliance with applicable Exchange Rules and
federal securities laws and regulations; (b) modify such policies and
procedures as business, regulatory and legislative changes and events
dictate, and; (c) test the effectiveness of such policies and
procedures on a periodic basis, the timing and extent of which is
reasonably designed to ensure continuing compliance with Exchange Rules
and federal securities laws and regulations. Rule 8.16 was adopted by
the Exchange following its adoption of Rule 8.10, and prior to the
adoption of Rule 8.16 only TPHs approved to conduct business with the
public were subject to such supervision requirements.\9\ The Exchange
believes that the Rule 8.10 attestation requirement is generally
redundant of the CEO certification requirement in Rule 8.16.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 71644 (February 18,
2014), 79 FR 13365 (March 10, 2014) (SR-CBOE-2013-126).
---------------------------------------------------------------------------

    The Exchange believes that periodic TPH examinations and
supervision requirements pursuant to Rule 8.16 are sufficient to ensure
TPH compliance with the requirement to establish enforce and maintain
policies and procedures to prevent the misuse of material, nonpublic
information. As noted previously, the Exchange, through its regulatory
services provider, now conducts periodic risk-based exams of all TPHs
and all TPHs are currently subject to the supervision requirements of
Rule 8.16. Therefore, the Exchange believes that the attestation
requirement and accompanying OE-418 form are redundant of the current
exam process and other Exchange Rules in place, thus, their proposed
removal would lift an unnecessary additional reporting step and
administrative procedure.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged

in regulating, clearing, settling, processing information with respect
to, and facilitating transactions in securities, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. Additionally, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \12\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that removing the duplicative
and unnecessary attestation requirement in connection with Rule 8.10
and 8.10.03 would serve to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and benefit
investors. Specifically, the Exchange believes that the supervision,
annual report and CEO certification requirements pursuant to Rule 8.16
and changes to its examination practices which subject all TPHs to
periodic risk-based examination, both of which were implemented/adopted
after the adoption of Rule 8.10, are sufficient to ensure that TPHs
have internal processes and procedures in place for identifying and
preventing misuse of material, non-public information. In addition, all
TPHs are currently, and will remain, subject to the Rule 8.10
recordkeeping requirement, and they must make such records available to
the Exchange upon request. Therefore, the proposed rule change is
designed to lift the unnecessary administrative burden of the limited
number of TPHs who are required to also attest that the procedure
mandated by Rule 8.10 have been established, enforced and maintained.
As a result of the above-stated practices and procedures already in
place, the Exchange believes that removing the attestation requirement
in Rule 8.10 would benefit investors by removing a duplicative and
unnecessary reporting step and administrative procedure. Further, the
Exchange does not believe that the proposed rule change would affect
the protection of investors as the Exchange may at any time require
TPHs to produce records in connection with maintenance and enforcement
of policies and procedures to prevent the misuse of material, nonpublic
information, as well as conduct an off-cycle examination of a TPH, as
necessary.
    In addition to this, the Exchange also believes the proposed rule
change is consistent with Section 6(b)(1) of the Act,\13\ which
provides that the Exchange be organized and have the capacity to be
able to carry out the purposes of the Act and to enforce compliance by
the Exchange's Trading Permit Holders and persons associated with its
Trading Permit Holders with the Act, the rules and regulations
thereunder, and the rules of the Exchange. As noted above, the Exchange
currently has the capacity under other Exchange Rules to be able to
enforce compliance by TPHs related to submission of appropriate records
in connection with the prevention of the misuse of non-public
information. The Exchange believes that removing redundant and
unnecessary rules would allow for the Exchange to be organized and
better able to carry out the purposes of the Act and enforce
compliance. Removing the Rule 8.10 attestation requirement would reduce
the administrative burden on the Exchange in having to collect and
maintain reports that are generally duplicative of reports required
under other Exchange Rules, and would allow the Exchange to better
allocate regulatory resources.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. In particular, the proposed
rule change is not intended to address competitive issues but rather is
concerned with facilitating less burdensome and more efficient
regulatory administration. The Exchange notes that the Rule 8.10
requirement to maintain and enforce policies and procedures to prevent
the misuse of material nonpublic information and recordkeeping
requirement of such would continue to uniformly apply to all TPHs.

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

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

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \14\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

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

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-CBOE-2019-123 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-219-123. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule

change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
CBOE-2019-123 and should be submitted on or before January 17, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27873 Filed 12-26-19; 8:45 am]
 BILLING CODE 8011-01-P


TELEPHONE CALL RECORD x Incoming Call _ Outgoing Call Account & Task Number 0<IP_ADDRESS> Project Name Other Solid Waste Incineration Date 6/ 15/ 05 Time 1400 EDT Person Calling Jason Huckaby ( ERG), Mary Johnson ( EPA), Brian Shrager ( EPA), Bob Wayland ( EPA) Activity Conference Call Person Called Doug Buteyn ( AK DEC), Leslie Simmons ( AK DEC), Ed Emswiler ( AK DEC) Telephone No.

( 919) 541 4332 ( EPA conference call in number)

General Subject Discussion on local government structures and Class II and III solid waste disposal sites in Alaska TOPICS DISCUSSED AND ACTION TAKEN The purpose of the conference call was for EPA and State of Alaska Department of Environmental Conservation ( AK DEC) representatives to discuss issues specific to solid waste management in remote areas of Alaska and how those issues relate to EPA's proposed new source performance standards and emission guidelines for other solid waste incineration ( OSWI) units ( agenda attached). In particular, EPA had the following three questions:

1. What types of local government structure are present in Alaska? Discussion: AK DEC indicated that there are two types of local government structures in Alaska  " boroughs" and " unorganized areas." " Boroughs" are like counties, where one or more municipalities are joined in a regional government. There are about 15 boroughs in Alaska. " Unorganized areas" are the non borough areas where there is either ( 1) no intermediate government between the State and the tribal, village, or city council, and local government is strictly at the municipal level or ( 2) no governing body other than the State. AK DEC further indicated that there are large parts of Alaska where people reside and there is no local governing structure. 2. Would an incinerator run by a borough or unorganized area meet the definition of Class II or Class III municipal solid waste landfill? Discussion: AK DEC indicated that there are incinerators used at solid waste disposal sites in both boroughs and unorganized areas ( e. g., village government or tribal council) that would meet the requirements to be defined as a Class II or Class III municipal solid waste landfill. However, the State of Alaska does not consider the local government structure in determining the class of a municipal solid waste landfill. AK DEC indicated that the definitions of Class II and Class III municipal solid waste landfills are strictly based on the anticipated volume of waste going to the disposal site and the location ( proximity to Class I landfill) regardless of the government structure. As a result, there also are Class I municipal solid waste landfills located in both boroughs and unorganized areas. 3. What are Alaska's thoughts on how incinerators at these boroughs and unorganized areas in Alaska should be addressed? Discussion: AK DEC likes the language regarding incinerators used in isolated areas of Alaska in the proposed preamble and rules. They find the language, as proposed, very workable and believe that the proposal appropriately addresses incinerators used in isolated areas of Alaska, including boroughs and unorganized areas.

AK DEC also pointed out that incinerators at pump stations or oil exploration camps could qualify as Class II or Class III muncipial solid waste landfills under their State solid waste rules, provided the incinerators were burning municipal waste. They explained that, given the same waste volumes and locations, the State does not make a distinction when permitting a waste disposal site that qualifies for Class III status owned by an oil pump station or a small village government. However, if oily residues were being burned, Alaska would not consider the incinerator to be disposing of municipal waste and would permit them differently. Again, AK DEC reiterated that the proposed language is very workable and fits nicely into Alaska's State regulations for solid waste disposal. They did not suggest any changes to the proposed language.


[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Notices]
[Pages 67743-67744]
[FR Doc No: 2023-21695]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ID-9853-000]

Smith, William L.; Notice of Filing

    Take notice that on September 26, 2023, William L.Smith submitted
for filing, application for authority to hold interlocking positions,
pursuant to section 305(b) of the Federal Power Act, 16 U.S.C. 825d (b)
and part 45.8 of the Federal Energy Regulatory Commission's
(Commission) Rules of Practice and Procedure, 18 CFR part 45.8.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the comment date. On or
before the comment date, it is not necessary to serve motions to
intervene or protests on persons other than the Applicant.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at [email protected] or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.
    The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the ``eFiling'' link
at http://www.ferc.gov. Persons unable to file electronically may mail
similar pleadings to the Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426. Hand delivered submissions in
docketed proceedings should be delivered to Health and Human Services,
12225 Wilkins Avenue, Rockville, Maryland 20852.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes. For
public inquiries and

assistance with making filings such as interventions, comments, or
requests for rehearing, the public is encouraged to contact OPP at
(202) 502-6595 or [email protected].
    Comment Date: 5:00 p.m. Eastern Time on October 17, 2023.

    Dated: September 26, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-21695 Filed 9-29-23; 8:45 am]
BILLING CODE 6717-01-P