Sec. 51.906 Redesignation to nonattainment following initial designations for the 8 hour NAAQS.

For any area that is initially designated attainment or unclassifiable for the 8 hour NAAQS and that is subsequently redesignated to nonattainment for the 8 hour ozone NAAQS, any absolute, fixed date applicable in connection with the requirements of this part is extended by a period of time equal to the length of time between the effective date of the initial designation for the 8 hour NAAQS and the effective date of redesignation, except as otherwise provided in this subpart.

Section 51.908 is revised to read as follows:

Text Was Moved From Here: 1 ( 1) An area subject to section 51.904 for which EPA has not approved an attainment date of 3 years or less after designation under paragraph ( f) of this section must submit an attainment demonstration no later than 3 years after designation of the area for the 8 hour NAAQS. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 581 ( 2) For purposes of the Las Vegas, NV, 8 hour ozone nonattainment area designated on September 17, 2004 ( 69 FR 55956), the area shall be treated as having an effective date of designation of June 15, 2004, for purposes of calculating SIP submission deadlines and attainment dates under these regulations.

( c) What criteria must the attainment demonstration meet? An attainment demonstration due pursuant to paragraph ( a) or ( b)

of this section must meet the requirements of section 51.112.

( d) What is the required time frame for obtaining emission reductions to ensure attainment by the attainment date? For each nonattainment area, the State must provide for implementation of all control measures needed for attainment no later than the beginning of the attainment year ozone season.

( e) Is a mid course review ( MCR) required? For each nonattainment area with an attainment date greater than 6 years after the area's designation for the 8 hour standard, a State must complete and submit to EPA a mid course review midway between the due date for its attainment demonstration SIP and the area's attainment date.

( f) What is the attainment demonstration requirement for areas subject only to subpart 1 in accordance with section PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 582 51.902( b) and requesting an attainment date no later than 3 years following designation for the 8 hour NAAQS?

( 1) A State with an area subject only to subpart 1 in accordance with section 51.902( b) of this part may request an attainment date of no later than 3 years following designation for the 8 hour NAAQS.

( 2) In support of a request under subparagraph ( f)( 1)

of this section, within 18 months after the area's designation for the 8 hour NAAQS, the State shall submit a SIP that demonstrates the area will attain the 8 hour NAAQS within 3 years following designation. The demonstration must include modeling results and analyses that the State is relying on to support its claim and must meet the provisions of section 51.112 of this part.

51.909 [ Reserved]

* * * * *

51.910 What requirements for reasonable further progress ( RFP) under sections 172( c)( 1) and 182 apply for areas designated nonattainment for the 8 hour ozone NAAQS?

( a) What are the general requirements for RFP for an area classified under subpart 2 pursuant to section 51.903? For an area classified under subpart 2 pursuant to section PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 583 51.903, the RFP requirements specified in section 182 of the Act for that area's classification shall apply.

( 1) What is the content and timing of the RFP plan required under section 182( b)( 1) of the Act for areas classified as moderate or higher pursuant to section 51.903 ( subpart 2 coverage)?

( i)( A) Except as provided in paragraph ( a)( 1)( ii)

of this section, for each area classified as moderate or higher, the State must submit a SIP revision consistent with section 182( b)( 1) of the Act no later than 3 years after the effective date of the nonattainment designation for the 8

hour NAAQS for the area. The 6 year period referenced in section 182( b)( 1) of the Act shall begin January 1 of the year following the year used for the baseline emissions inventory. For areas designated nonattainment for the 8 hour NAAQS with an effective date of June 15, 2004, the six year period shall run from January 1, 2003 to December 31, 2008.

( B) For each area classified as serious or higher, the State must submit a SIP revision consistent with section 182( c)( 2)( B) of the Act no later than 3 years after designation for the 8 hour NAAQS. For areas designated nonattainment for the 8 hour NAAQS with an effective date of June 15, 2004, the first 3 year period shall run from January 1, 2009 and end December 31, 2011. The final increment of PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 584 progress must be achieved no later than the attainment date for the area.

( ii) An area classified as moderate or higher that has the same boundaries as an area, or is entirely composed of several areas or portions of areas, for which EPA fully approved a 15 percent plan for the 1 hour NAAQS is considered to have met section 182( b)( 1) of the Act for the 8 hour NAAQS and must meet the requirements of paragraphs ( a)( 1)( ii)( A)

through ( C) of this section, as applicableinstead:

( A) If classified as moderate with an attainment date of 5 years or less after designation, the area is subject to RFP under section 172( c)( 2) of the Act and shall submit no later than 3 years after designation for the 8 hour NAAQS a SIP revision that meets the requirements of paragraph ( b)( 2)( i) of this section.

( B) If classified as moderate, consistent with anthe attainment date more than 5 years after designation, the area is subject to RFP under section 172( c)( 2) of the Act and shall submit no later than 3 years after designation for the 8 hour NAAQS a SIP that meets the requirements of paragraph ( b)( 2)( ii) of this section.

( Cestablished in the attainment demonstration SIP. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 585 ( B) If classified as serious or higher, the area is subject to RFP under section 182( c)( 2)( B) of the Act and shall submit no later than 3 years after designation for the 8 hour NAAQS an RFP SIP providing for an average of 3 percent per year of VOC and/ or NOx emissions reductions for   ( 1) the 6 year period beginning January 1 of the year following the year used for the baseline emissions inventory. For areas designated nonattainment for the 8 hour NAAQS with an effective date of June 15, 2004, the 6 year period shall run from January 1, 2003 to December 31,

2008; and ( 2) all remaining 3  year periods after December 31, 2008the first 6 year period out to the area's attainment date.

( iii) An area classified as moderate or higher that contains one or more areas, or portions of areas, for which EPA fully approved a 15 percent plan for the 1 hour NAAQS as well as areas for which EPA has not fully approved a 15 percent plan for the 1 hour NAAQS maymust meet oneeither of the following requirements:

( A) The State shall develop a new baseline and new 15 percent VOC RFP emission reduction target for the entire 8 hour nonattainment area and meet the requirements of PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 586 paragraph ( a)( 1)( i) of this section. for the entire 8 hour nonattainment area; or ( B) The State shall treat the area as two parts, each with a separate RFP target as follows:

( 1) For the portion of the area without an approved 15 percent VOC RFP plan for the 1 hour standard,

the State shall establish a separate 15 percent VOC only target under paragraph ( a)( 1)( i)( A) of this section.

Emissions reductions to meet this requirement may come from anywhere within the 8 hour nonattainment area.

( 2) For the portion of the area with an approved 15 percent VOC plan for the 1 hour NAAQS, the State shall submit a SIP as required under paragraph ( a)( 1)( ii)( A)

or ( B) of this section.

( 2) What restrictions apply on the creditability of emission control measures for the RFP plans required under this section? Except as specifically provided in section 182( b)( 1)( C) and ( D) and section 182( c)( 2)( B) of the Act, all emissions reductions that occur after the baseline emissions inventory year are creditable for purposes of the RFP requirements in this section, provided the reductions meet the requirements for creditability, including the need to be enforceable, permanent, quantifiable and surplus, as PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 587 described for purposes of State economic incentive programs in the requirements of section 51.493 of this part.

( b) What are the general requirements for RFP for an area subject only to subpart 1 pursuant to section 51.902( b) or to certain moderate areas subject to subpart 2 as covered in paragraphs ( a)( 1)( ii)( A) and ( B) of this section?

( 1) An area subject only toto the RFP requirement of subpart 1 pursuant to section 51.902( b) or a moderate area subject to subpart 2 as covered in paragraphs ( a)( 1)( ii)( A) and ( B) of this section shall meet the RFP requirements of section 172( c)( 2) of the Act as follows:

( 1) A subpart 1 area with an approved SIP pursuant to section 51.908( f) is considered to have met the RFP obligation under section 172( c)( 2) of the Act with the measures that will bring the area into attainment by the attainment date.

( 2) For each area subject to section 51.902( b) without an approved SIP pursuant to section 51.908( f), theprovided in paragraph ( 2) of this section.

( 2) The State shall submit no later than 3 years following designation for the 8 hour NAAQS a SIP providing for RFP consistent with the following, as applicable:

( i) For each area with a requestedan attainment demonstration requesting an attainment date of 5 years or PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 588 less after designation for the 8 hour NAAQS, the attainment demonstration SIP revision shall showrequire that all emissions reductions needed for attainment would be implemented by the beginning of the attainment year ozone season.

( ii) For each area with a requestedan attainment demonstration requesting an attainment date more than 5 years after the designation for the 8 hour NAAQS, the RFP plan   ( A) Shall demonstrate increments of progress from the baseline emissions inventory year out to the attainment date. demonstration SIP   ( BA) Shall provide for a 15 percent emission reduction from the baseline year within 6 years after the baseline year.

( CB) May use either NOx or VOC emissions reductions ( or both) to achieve the 15 percent emission reduction requirement. Use of NOx emissions reductions must meet the criteria in section 182( c)( 2)( C) of the Act.

( DC) For each subsequent 3 year period out to the attainment date, shall provide for an additional increment of progress no less than the amount of emissions reductions that would be roughly proportional to the time between the end of the first increment and the attainment date. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 589 ( c) What method should a State use to calculate RFP targets?

In calculating RFP targets for the initial 6 year period and the subsequent 3 year periods pursuant to this section, the State shall use the methods consistent with the requirements of sections 182( b)( 1)( C) and ( D) and 182( c)( 2)( B) to properly account for the non creditable reductions when calculating RFP targets for the initial 6 year period and the subsequent 3 year periods.

( d) What is the baseline emissions inventory for RFP plans?

( 1) A baseline emissions inventory is required for the RFP plan required under this section.

( 2) The baseline emissions inventory shall be determined at the time of designation for the 8 hour NAAQS and shall be the emissions inventory for the most recent calendar year for which a complete inventory is required to be submitted to EPA under the provisions of subpart A of this part.

( 3) For areas designated nonattainment for the 8 hour NAAQS with an effective date of June 15, 2004, the baseline emissions inventory shall be for calendar year 2002.

51.911 [ Reserved]

51 * * * * * PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 590 51.912 What requirements apply for reasonably available control technology ( RACT) and reasonably available control measures ( RACM) under the 8 hour NAAQS?

( a) What is the RACT requirement for areas subject to subpart 2 in accordance with section 51.903?

( 1) For each area subject to subpart 2 in accordance with section 51.903 of this part and classified moderate or higher, the State shall submit a SIP revision that meets the NOx and VOC RACT requirements in sections 182( b)( 2) and 182( f) of the Act.

( 2) The State shall submit the RACT SIP for each area no later than 2 years7 months after designation for the 8 hour ozone NAAQS.

( 3) The State shall provide for implementation of RACT as expeditiously as practicable but no later than the first ozone season or portion thereof which occurs 30 months after the RACT SIP is due.

( b) How do the RACT provisions apply to areas required to submit a RACT SIP?

( 1) VOCVolatile organic compounds and NOxNOx are to be considered separately for purposes of determining whether a source is a major stationary source as defined in section 302 of the Act. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 591 ( 2) States may use current EPA guidance to assist in making RACT determinations and certifications that previously required RACT controls represent RACT for 8 hour implementation purposes. As new or updated EPA RACT guidance becomes available, States shall consider the new information in their RACT determinations or certifications.

( c) What is the RACT requirement for areas subject only to subpart 1 pursuant to section 51.902( b)? Areas subject only to subpart 1 pursuant to section 51.902( b) are subject to the RACT requirement specified in section 172( c)( 1) of the Act.

( 1) For an area that submits an attainment demonstration that requests an attainment date 5 years or less after designation for the 8 hour NAAQS, the State shall meet the RACT requirement by submitting an attainment demonstration SIP demonstrating that the area has adopted all control measures necessary to demonstrate attainment as expeditiously as practicable.

( 2) For an area that submits an attainment demonstration that requests an attainment date more than 5 years after designation for the 8 hour NAAQS, the State shall submit a SIP consistent with the requirements of section 51.912( a) and ( b) except the State shall submit the RACT SIP for each area with its attainment date extension request. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 592 ( d) What is the Reasonably Available Control Measures ( RACM)

requirement for areas designated nonattainment for the 8 hour NAAQS? For each nonattainment area required to submit an attainment demonstration under section 51.908, the State shall submit with the attainment demonstration a SIP revision demonstrating that it has adopted all RACM necessary to demonstrate attainment as expeditiously as practicable and to meet any RFP requirements.

Sec. 51.913 How do the section 182( f) NOx exemption provisions apply for the 8 hour NAAQS?

( a) A person may petition the Administrator for an exemption from NOx NSR and/ or RACT requirement for any area designated nonattainment for the 8 hour ozone NAAQS and for any area in a section 184 ozone transport region.

( b) The petition must contain adequate documentation that the criteria in section 182( f) are met.

( c) A section 182( f) NOx exemption granted underfor the 1

hour ozone standard does not relieve the area from any requirements underfor the 8 hour ozone standard.

51.914 What new source review requirements apply for 8 hour ozone nonattainment area. s?

The requirements for a SIP's new source review provisions for the 8 hour ozone standard are located in section 51.165 of this part. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 593 Sec. 51.915 What emissions inventory requirements apply under the 8 hour NAAQS?

For each nonattainment area subject to subpart 2 in accordance with section 51.903, the emissions inventory requirements in sections 182( a)( 1) and 182( a)( 3) of the Act shall apply, and fsuch SIP shall be due no later 2 years after designation. For each nonattainment area subject only to subpart 1 in accordance with section 51.902( b), the emissions inventory requirement in section 172( c)( 3) of the Act shall apply, and an emission inventory SIP shall be due no later 3 years after designation. For purposes of meeting the emissions inventory requirements of the Act for these areas, the ozone relevant data requirements under 40 CFR 51 Ssubpart A apply. The State may submit the emission inventory developed under subpart A of this part as part of its SIP. However, the State may also submit an updated version of the EI for purposes of CAA sections 182( a)( 1),

182( a)( 3), and 172( c)( 3).

51.916 What are the requirements for an Ozone Transport Region under the 8 hour NAAQS?

( a) In General. Sections 176A and 184 of the Act apply for purposes of the 8 hour NAAQS.

( b) RACT Requirements for Certain Portions of an Ozone Transport Region. The State must submit a SIP revision that PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 594 meets the RACT requirements of section 184 of the Act for each area designated as attainment or unclassifiable, or that may be classified as marginal, or that is covered under section 51.904 of this subpart, but which is located in an ozone transport region. A major stationary source for purposes of this paragraph is defined as a source which directly emits, or has the potential to emit, 100 tons per year or more of NOx or 50 tons per year or more of VOC. The State shall submit the RACT revision no later than 2 years7 months after the effective date of the nonattainment designation of any area in the OTR for the 8 hour NAAQS and shall provide for implementation of RACT as expeditiously as practicable but no later than the first ozone season or portion thereof that occurs 30 months after the RACT SIP is due.

51.917 What is the effective date of designation for the Las Vegas, NV, 8 hour ozone nonattainment area?

The Las Vegas, NV, 8 hour ozone nonattainment area ( designated on September 17, 2004 ( 69 FR 55956) shall be treated as having an effective date of designation of June 15, 2004, for purposes of calculating SIP submission deadlines and attainment dates under this subpart.

PART 52  [ Amended] PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 595 1. The authority citation for part 52 continues to read as follows:

Authority: 42 U. S. C. 7401, et seq.

Subpart A  [ Amended]

2. Section 52.21 is amended by:

a. Revising paragraph ( b)( 1)( ii).

b. Revising paragraph ( b)( 2)( ii).

c. Revising paragraph ( b)( 23)( i).

d. Revising paragraph ( b)( 50).

e. By revising the second sentence of footnote 1 to paragraph ( i)( 5)( i)( e) to state: However, any net emissions increase of 100 tons per year or more of volatile organic compounds or nitrogen oxides subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data.

The revisions read as follows:

( b) * * *

( 1) * * *

( ii) A major source that is major for volatile organic compounds or NOxNOx shall be considered major for ozone.

* * * * *

( 2) * * *

( ii) Any significant emissions increase ( as defined at paragraph ( b)( 40) of this section) from any emissions units PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 596 or net emissions increase ( as defined in paragraph ( b)( 3) of this section) at a major stationary source that is significant for volatile organic compounds or NOxNOx shall be considered significant for ozone.

( 23)

( i) * * *

Pollutant and Emissions Rate * * *

Ozone: 40 tpy of volatile organic compounds or NOxNOx * * * * *

( 50) * * *

( i) Any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified by the Administrator ( e. g., volatile organic compounds and NOxNOx are precursors for ozone);

3. Section 52.24 is revised to read as follows:

§ 52 § 52.24 Statutory restriction on new sources.

( a) Any area designated nonattainment pursuant to section 107( d) of the Act to which, immediately prior to the enactment of the Amendments to the Act of 1990 ( November 15,

1990), a prohibition of construction or modification of major stationary sources was applied, shall retain that prohibition PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 597 if such prohibition was applied by virtue of a finding of the Administrator that the State containing such an area:

( 1) Failed to submit an implementation plan meeting the requirements of an approvable new source review permitting program; or ( 2) Failed to submit an implementation plan that provided for timely attainment of the national ambient air quality standard for sulfur dioxide by December 31, 1982.

This prohibition shall apply until the Administrator approves a plan for such area as meeting the applicable requirements of part D of title I of the Act as amended ( NSR permitting requirements) or subpart 5 of part D of title I of the Act as amended ( relating to attainment of the national ambient air quality standards for sulfur dioxide), as applicable.

( b) Permits to construct and operate as required by permit programs under section 172( c)( 5) of the Act may not be issued for new or modified major stationary sources proposing to locate in nonattainment areas or areas in a transport region where the Administrator has determined that the applicable implementation plan is not being adequately implemented for the nonattainment area or transport region in which the proposed source is to be constructed or modified in accordance with the requirements of part D of title I of the Act. PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 598 ( c) Whenever, on the basis of any information, the Administrator finds that a State is not in compliance with any requirement or prohibition of the Act relating to the construction of new sources or the modification of existing sources, the Administrator may issue an order under section 113( a)( 5) of the Act prohibiting the construction or modification of any major stationary source in any area to which such requirement applies.

( d) The restrictions in paragraphs ( a) and ( b) of this section apply only to major stationary sources of emissions that cause or contribute to concentrations of the pollutant ( or precursors, as applicable) for which the transport region or nonattainment area was designated such, and for which the applicable implementation plan is not being carried out in accordance with, or does not meet, the requirements of part D of title I of the Act.

( e) For any transport region or any area designated as nonattainment for any national ambient air quality standard,

the restrictions in paragraphs ( a) and ( b) of this section shall apply to any major stationary source or major modification that would be major for the pollutant ( or precursors, where applicable) for which the area is designated nonattainment or a transport region, if the stationary source or major modification would be constructed PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 599 anywhere in the designated nonattainment area or transport region.

( f) The provisions in § 51.165 of this chapter shall apply in interpreting the terms under this section.

( g) At such time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation which was established after August 7,

1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then:

( 1) If the construction moratorium imposed pursuant to this section is still in effect for the nonattainment area or transport region in which the source or modification is located, then the permit may not be so revised; or ( 2) If the construction moratorium is no longer in effect in that area, then the requirements of § 51.165 of this chapter shall apply to the source or modification as though construction had not yet commenced on the source or modification.

( h) This section does not apply to major stationary sources or major modifications locating in a clearly defined part of a nonattainment area or transport region ( such as a political subdivision of a State), where the EPA finds that a PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 600 plan which meets the requirements of part D of title I of the Act is in effect and is being implemented in that part.

( i) [ Reserved]

( j) [ Reserved]

( k) For an area designated as nonattainment after July 1, 1979, the Emission Offset Interpretative Ruling, 40 CFR part 51, Aappendix S shall govern permits to construct and operate applied for during the period between the date of designation as nonattainment and the date the part D plan is approved.

NSR permit program meeting the requirements of part D is approved. The Emission Offset Interpretative Ruling, 40 CFR part 51, Appendix S, shall also govern permits to construct and operate applied for in any area designated under section 107( d) of the CAA as attainment or unclassifiable for ozone that is located in an ozone transport region prior to the date the NSR permitting program meeting the requirements of part D is approved.

PART 80  [ Amended]

1. The authority citation for part 80 continues to read as follows:

Authority: 42 U. S. C. 7414, 7545, and 7601( a).

Subpart D  [ Amended]

2. Section 80.70( m) is amended by: PREDECISIONAL DRAFT   DO NOT QUOTE, CITE OR DISTRIBUTE 7/ 8/ 05 a. In the second sentence, striking " included in" and replacing it with " identified pursuant to".

b. In the third sentence, striking " listed in" and replacing it with " identified pursuant to".

c. Striking all text after the third sentence, and replacing it with the following:

( 1) An area identified as a covered area pursuant to this paragraph ( m), whose classification as a severe nonattainment area under the 1 hour ozone NAAQS is removed as a result of removal of the 1 hour ozone NAAQS, remains a covered area as follows:

( I) prior to redesignation as attainment for the 8 hour ozone NAAQS the area remains a covered area;

( ii) after redesignation as attainment for the 8 hour ozone NAAQS  [ RESERVED].

( 2) An area identified as a covered area pursuant to this paragraph ( m), whose classification as a severe nonattainment area under the 1 hour ozone NAAQS is removed as a result of redesignation to attainment for the 1 hour ozone NAAQS, remains a covered area as follows: [ RESERVED]


[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Notices]
[Pages 72063-72065]
[FR Doc No: 2019-28172]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87844; File No. SR-GEMX-2019-18]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Adopt a Mass
Cancellation Rule and Amend Other Sections of the Rulebook

December 23, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 9, 2019, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend definitions within General 1,
Section 1, adopt a new definition for ``Away Best Bid or Offer'' within
Options 1, Section 1, and update rule citations in various other rules.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaqgemx.cchwallstreet.com/, at the principal
office of the Exchange, 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 adopt a new rule at Options 3, Section 19
titled ``Mass Cancellation of Trading Interest.'' The Exchange also
proposes to amend definitions within General 1, Section 1, adopt a new
definition for ``Away Best Bid or Offer within Options 1, Section 1,
and update rule citations in various other rules.
Mass Cancellation of Trading Interest
    The Exchange proposes to adopt a new rule at Options 3, Section 19
titled ``Mass Cancellation of Trading Interest.'' The Nasdaq Options
Market LLC (``NOM'') and Nasdaq BX, Inc. (``BX'') rules at Chapter VII,
Section 11 permit Participants on those markets to contact market
operations and manually request cancellation of interest. The Exchange
proposes to adopt a rule which also permits Members to contact market
operations and request the Exchange to manually cancel interest. The
proposed new rule would state, ``A Member may cancel any bids, offers,
and orders in any series of options by requesting GEMX Market
Operations \3\ staff to effect such cancellation as per the
instructions of the Member.'' This new rule reflects the Exchange's
current practice of allowing Members to contact GEMX Market Operations
and request the Exchange to cancel any bid, offer or order in any
series of options. The Exchange would cancel such bid, offer or order
pursuant to the Member's instruction. The Exchange desires to
memorialize the availability of this service.
---------------------------------------------------------------------------

    \3\ The request to Market Operations is a manual request which
is made telephonically.
---------------------------------------------------------------------------

Definitions
    The Exchange proposes to make a technical amendment to General 1,
Section 1(a)(6) to note the acronym for an Electronic Access Member, an
``EAM'' within the definition. The acronym is utilized throughout the
Rulebook. Defining the acronym within the definition will add
transparency to the Rulebook.
    The Exchange proposes to add the definition of an ``Away Best Bid
or Offer'' or ``ABBO'' within Options 1, Section 1(a)(4). This term is
utilized throughout the Rulebook. Defining this term will bring greater
transparency to the Rulebook. The Exchange also proposes to update the
numbering in the remainder of the rule and also update

cross-references throughout the Rulebook \4\ as a result of the
renumbering.
---------------------------------------------------------------------------

    \4\ See Options 3, Section 10 and Options 7, Section 1.
---------------------------------------------------------------------------

Other Changes
    The Exchange proposes to reserve certain rules \5\ in connection
with a Rulebook harmonization project which organizes the rules of the
Nasdaq affiliated markets.
---------------------------------------------------------------------------

    \5\ Options 2, Section 3 and Options 3, Section 28 are being
reserved.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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Mass Cancellation of Trading Interest
    The Exchange's proposal to memorialize the Mass Cancellation of
Trading Interest rule within Options 3, Section 19 is consistent with
the Act because permitting Members to contact Market Operations as a
manual alternative to automated functionality which similarly allows
Members to cancel interest provides Members experiencing their own
system issues with a means to manage risk. Today, Members are able to
cancel interest, in an automated fashion through protocols \8\ and the
Kill Switch.\9\ This is a voluntary services offered to all Members.
---------------------------------------------------------------------------

    \8\ See Options 3 at Supplementary Material .03 to Section 7.
    \9\ See Options 3, Section 17.
---------------------------------------------------------------------------

    The Exchange notes that offering this service, which permits
Members to cancel interest, will not diminish a Market Maker's
obligation with respect to providing two-sided quotations and this rule
is not inconsistent with other firm quote obligations of the Market
Maker. Upon the request of a Member, GEMX Market Operations will
manually input a mass cancellation message into the System consistent
with the Member's instruction to cancel trading interest. Once the mass
cancellation message is entered into the System by GEMX Market
Operations, the message will be accepted by the System in the order of
receipt in the queue such that the interest that was already accepted
into the System will be processed prior to the mass cancellation
message. In addition, mass cancellation messages entered into the
System by GEMX Market Operations are handled by the System through the
same queuing mechanism that a quote or order message is handled by the
System. The Exchange notes its processing of a mass cancellation
message inputted by GEMX Market Operations and handled by the System is
consistent with firm quote and order handling rules.
    As noted above, NOM and BX Rules at Chapter VII, Section 11 allow
NOM and BX Participants to also contact market operations and request
cancellations of interest. This new rule reflects the Exchange's
current practice.
Definitions
    The Exchange's proposal to add the acronym for an Electronic Access
Member, an ``EAM'' within General 1, Section 1 and add the definition
of an ``Away Best Bid or Offer'' or ``ABBO'' within Options 1, Section
1(a)(4) are consistent with the Act because these amendments will add
transparency to the Rulebook.
Other Changes
    The remainder of the changes to correct numbering and citations are
non-substantive.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
Mass Cancellation of Trading Interest
    The Exchange's proposal to memorialize the Mass Cancellation of
Trading Interest rule within Options 3, Section 19 does not impose an
undue burden on competition because all Members may utilize this
service. This new rule reflects the Exchange's current practice.
Definitions
    The Exchange's proposal to add the acronym for an Electronic Access
Member, an ``EAM'' within General 1, Section 1 and add the definition
of an ``Away Best Bid or Offer'' or ``ABBO'' within Options 1, Section
1(a)(4) do not impose an undue burden on competition because these
amendments will add transparency to the Rulebook.
Other Changes
    The remainder of the changes to correct numbering and citations are
non-substantive.

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

    No written comments were either solicited or received.

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 \10\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. The Exchange
notes that NOM and BX currently have rules that permit NOM and BX
Participants to cancel interest,\14\ and that the Exchange proposes the
additional changes to provide greater clarity in its rules. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission waives the 30-day operative delay and
designates the proposed rule change operative upon filing.\15\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See NOM and BX Rules at Chapter VII, Section 11.
    \15\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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.

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-GEMX-2019-18 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-GEMX-2019-18. 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-GEMX-2019-18 and should be submitted on
or before January 21, 2020.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-28172 Filed 12-27-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 5 (Monday, January 8, 2018)]
[Notices]
[Pages 801-802]
[FR Doc No: 2018-00090]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP18-33-000]

Notice of Application; Florida Gas Transmission Company, LLC

    Take notice that on December 18, 2017, Florida Gas Transmission
Company, LLC (Florida Gas), 1300 Main Street, Houston, Texas 77002,
filed in Docket No. CP18-33-000 an application

pursuant to section 7(b) of the Natural Gas Act (NGA) and Part 157 of
the Commission's Regulations, requesting authorization to abandon
approximately 1.3 miles of its 18-inch-diameter mainline pipeline
facilities and associated appurtenances located in Miami-Dade County,
Florida, all as more fully set forth in the application which is on
file with the Commission and open to public inspection.
    The filing may also be viewed on the web at 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. For
assistance, please contact FERC Online Support at
[email protected] or toll free at<PHONE_NUMBER>, or TTY,
contact<PHONE_NUMBER>.
    Any questions concerning this application may be directed to Marg
Camardello, Regulatory Analyst, Lead,<PHONE_NUMBER>, P.O. Box 1396,
Houston, Texas 77251; and Ben Carranza, Manager, Rates & Regulatory,
(713) 420-5535, 1001 Louisiana Street, Suite 1000, Houston Texas 77002.
    Specifically, Florida Gas states that the mainline segment proposed
for abandonment spans from Mile Post (MP) 923.6 to the mainline
terminus at MP 924.9 and is in direct conflict with Miami-Dade County
road construction project including a bridge replacement. Florida Gas
also states that there are no firm contracts associated with the
facilities to be abandoned and that there were no deliveries of gas
through this segment of its mainline in more than three years. The
project cost is estimated at $450,000.
    Pursuant to section 157.9 of the Commission's rules, 18 CFR 157.9,
within 90 days of this Notice the Commission staff will either:
complete its environmental assessment (EA) and place it into the
Commission's public record (eLibrary) for this proceeding; or issue a
Notice of Schedule for Environmental Review. If a Notice of Schedule
for Environmental Review is issued, it will indicate, among other
milestones, the anticipated date for the Commission staff's issuance of
the EA for this proposal. The filing of the EA in the Commission's
public record for this proceeding or the issuance of a Notice of
Schedule for Environmental Review will serve to notify federal and
state agencies of the timing for the completion of all necessary
reviews, and the subsequent need to complete all federal authorizations
within 90 days of the date of issuance of the Commission staff's EA.
    There are two ways to become involved in the Commission's review of
this project. First, any person wishing to obtain legal status by
becoming a party to the proceedings for this project should, on or
before the comment date stated below, file with the Federal Energy
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, a
motion to intervene in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 385.214 or
385.211) and the Regulations under the NGA (18 CFR 157.10). A person
obtaining party status will be placed on the service list maintained by
the Secretary of the Commission and will receive copies of all
documents filed by the applicant and by all other parties. A party must
submit five copies of filings made with the Commission and must mail a
copy to the applicant and to every other party in the proceeding. Only
parties to the proceeding can ask for court review of Commission orders
in the proceeding.
    However, a person does not have to intervene in order to have
comments considered. The second way to participate is by filing with
the Secretary of the Commission, as soon as possible, an original and
two copies of comments in support of or in opposition to this project.
The Commission will consider these comments in determining the
appropriate action to be taken, but the filing of a comment alone will
not serve to make the filer a party to the proceeding. The Commission's
rules require that persons filing comments in opposition to the project
provide copies of their protests only to the party or parties directly
involved in the protest.
    Persons who wish to comment only on the environmental review of
this project should submit an original and two copies of their comments
to the Secretary of the Commission. Environmental commenters will be
placed on the Commission's environmental mailing list, will receive
copies of the environmental documents, and will be notified of meetings
associated with the Commission's environmental review process.
Environmental commenters will not be required to serve copies of filed
documents on all other parties. However, the non-party commenters will
not receive copies of all documents filed by other parties or issued by
the Commission (except for the mailing of environmental documents
issued by the Commission) and will not have the right to seek court
review of the Commission's final order.
    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 should
submit original and five copies of the protest or intervention to the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426.
    Comment Date: 5:00 p.m. Eastern Time on January 23, 2018.

    Dated: January 2, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-00090 Filed 1-5-18; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 45 (Thursday, March 7, 2013)]
[Notices]
[Pages 14876-14877]
[FR Doc No: 2013-05323]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2009-0078]

Petition for Waiver of Compliance

    In accordance with Part 211 of Title 49 Code of Federal Regulations
(CFR), this document provides the public notice that by a document
dated February 5, 2013, the American Short Line and Regional Railroad
Association (ASLRRA), on behalf of the Garden City Western Railway
Company, the Georgia Southern Railway Company, the Great Smoky
Mountains Railroad, the Mississippi Central Railroad Company, the Port
Bienville Railroad, and Railserve, has petitioned the Federal Railroad
Administration (FRA) for an amended waiver of compliance from certain
provisions of the Federal hours of service laws contained at 49 U.S.C.
21103(a)(4), which require a train employee to receive 48 hours off
duty after initiating an on-duty period for 6 consecutive days. FRA
assigned the petition Docket Number FRA-2009-0078.
    In its petition, ASLRRA seeks to amend Exhibit A of its previously
filed petition for extension of the waiver to add the six railroads
referenced above, which did not participate in ASLRRA's original
petition for a waiver extension. FRA had granted ASLRRA's petition for
a waiver extension in a letter dated February 27, 2012. The waiver
allows a train employee to initiate an on-duty period each day for 6
consecutive days followed by 24 hours, rather than 48 hours, off duty.
    Each railroad that seeks to be added to the waiver has executed a
compliance letter, which attests that the railroad has complied with
all of the employee consent requirements that FRA had originally set
forth in its initial decision letter dated March 5, 2010. Additionally,
each railroad will maintain in its files for FRA inspection the
underlying employee consent or employee representative consent
documents.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov and in person at the U.S. Department of
Transportation's Docket Operations Facility, 1200 New Jersey Ave. SE.,
W12-140, Washington, DC 20590. The Docket Operations Facility is open
from 9 a.m. to 5 p.m., Monday through Friday, except Federal holidays.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested party
desires an opportunity for oral comment, they should notify FRA, in
writing, before the end of the comment period and specify the basis for
their request.

    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Web site: http://www.regulations.gov/. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
    Communications received by April 22, 2013 will be considered by FRA
before final action is taken. Comments received after that date will be
considered as far as practicable.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the comment (or signing the document,
if submitted on behalf of an association, business, labor union, etc.).
See http://www.regulations.gov/#!privacyNotice for the privacy notice
of regulations.gov or interested parties may review DOT's complete
Privacy Act Statement in the Federal Register published on April 11,
2000 (65 FR 19477).

    Issued in Washington, DC, on March 4, 2013.
Robert C. Lauby,
Deputy Associate Administrator for Regulatory and Legislative
Operations.
[FR Doc. 2013-05323 Filed 3-6-13; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 76, Number 43 (Friday, March 4, 2011)]
[Notices]
[Pages 12165-12169]
[FR Doc No: 2011-4895]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63977; File No. SR-NYSE-2011-05]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending its Rule 440B (Short Sales) in Order To Implement the
Provisions of Rule 201 of Regulation SHO Under the Securities Exchange
Act of 1934

February 25, 2011.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on February 24, 2011, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the

proposed rule change as described in Items I and II below, which Items
have been substantially prepared by the self-regulatory organization.
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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its Rule 440B (Short Sales) in order
to implement the provisions of Rule 201 of Regulation SHO (``Rule
201'') \4\ under the Act which, if triggered, imposes a restriction on
the prices at which securities may be sold short (``Short Sale Price
Test''). Among other things, Rule 201 requires trading centers to
establish, maintain, and enforce written policies and procedures
reasonably designed to prevent the execution or display of a short sale
order of a covered security at a price that is less than or equal to
the current national best bid if the price of a covered security
decreases by 10% or more from the covered security's closing price as
determined by the listing market for the covered security as of the end
of regular trading hours on the prior day. The proposed rule amendment
would establish procedures for the Exchange, as a listing market, to
determine that a Short Sale Price Test has been triggered for a covered
security. The proposed rule amendment would also establish the
protocols for the handling of short sale orders by the Exchange, as a
trading center, in the event the Short Sale Price Test is triggered,
including establishing what types of short sale orders will be re-
priced to achieve a permitted price, in accordance with Rule 201,
during the period in which a Short Sale Price Test is in effect
(``Short Sale Period'').\5\ Amended Rule 440B would also establish the
Exchange's procedures regarding the execution and display of
permissible orders during the Short Sale Period, and the execution of
orders marked ``short exempt.'' Further, the proposed rule amendment
would establish the Exchange's procedures regarding the permissible
execution price of short sale orders in single-priced opening, re-
opening and closing transactions. The proposed rule amendment would
also make minor technical changes to the Supplementary Material to Rule
440B.\6\ Finally, the proposed rule amendment would also establish
Exchange procedures for addressing situations where the Exchange
determines that the Short Sale Price Test for a covered security was
triggered by a ``clearly erroneous'' execution as that term is defined
in NYSE Rule 128.\7\
---------------------------------------------------------------------------

    \4\ 17 CFR 242.201.
    \5\ See notes 24-26 infra and accompanying text.
    \6\ Supplementary Material to Rule 440B is proposed to be
amended to (a) delete an incorrect reference to Rule 440B(c) (in
.11) and (b) to permit orders to be marked ``short exempt'' in
accordance with Rules 200(g)(2) and 201 of Regulation SHO (in .12).
The remaining provisions in Supplementary Material are not proposed
to be modified and will remain in effect.
    \7\ See infra note 23 and accompanying text regarding ``clearly
erroneous'' trades and proposed Rule 440B(d)(1). The proposed rule
amendment would establish the duration of the Short Sale Price Test.
See infra note 22 and accompanying text. In addition, the proposed
rule amendment would provide for an Exchange determination that a
Short Sale Price Test has been triggered for covered securities for
which the Exchange is the listing market. See infra notes 21-22 and
accompanying text.
---------------------------------------------------------------------------

    The Exchange also proposes to amend its Rule 900 (Off-Hours
Trading: Applicability and Definitions) to apply Rule 440B (including
the short sale price test restrictions of Rule 201) to transactions in
the Off-Hours Trading Facility (by deleting the current exclusion for
Rule 440B). The text of the proposed rule change is available at the
Exchange, the Commission's Public Reference Room, and http://www.nyse.com.

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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    On February 26, 2010, the Commission adopted amendments to Rule
201.\8\ Among other things, the amendments establish a short sale-
related circuit breaker that, if triggered with respect to a covered
security,\9\ imposes a Short Sale Price Test.\10\ Amended Rule 201
became effective on May 10, 2010 and the compliance date for the Rule
is February 28, 2011.\11\
---------------------------------------------------------------------------

    \8\ Amendments to Regulation SHO, Securities Exchange Act
Release No. 61595 (Feb. 26, 2010), 75 FR 11232 (Mar. 10, 2010)
(``Rule 201 Adopting Release''). In the Rule 201 Adopting Release,
the Commission also adopted amendments to Rule 200(g) of Regulation
SHO to include a ``short exempt'' marking requirement. 17 CFR
242.200(g).
    \9\ The term ``covered security'' shall have the same meaning as
in Rule 201 of Regulation SHO. Rule 201(a)(1) defines the term
``covered security'' to mean any ``NMS stock'' as defined under Rule
600(b)(47) of Regulation NMS. Rule 600(b)(47) of Regulation NMS
defines an ``NMS stock'' as ``any NMS security other than an
option.'' Rule 600(b)(46) of Regulation NMS defines an ``NMS
security'' as ``any security or class of securities for which
transaction reports are collected, processed, and made available
pursuant to an effective transaction reporting plan, or an effective
national market system plan for reporting transactions in listed
options.'' 17 CFR 242.201(a)(1); 17 CFR 242.600(b)(47); and 17 CFR
242.600(b)(46).
    \10\ 17 CFR 242.201(b).
    \11\ Rule 201 Adopting Release, 75 FR 11232. The Rule 201
compliance date, originally set for November 10, 2010, was extended
to February 28, 2011 in Securities Exchange Act Release No. 63247
(Nov. 4, 2010), 75 FR 68702 (Nov. 9, 2010). The May 10th effective
date and February 28th compliance date also apply to amended Rule
200(g).
---------------------------------------------------------------------------

    Rule 201(b) requires that trading centers,\12\ including the NYSE,
establish, maintain, and enforce written policies and procedures
reasonably designed to prevent the execution or display of a short sale
order of a covered security at a price that is less than or equal to
the current national best bid \13\ if the price of that covered
security decreases by 10% or more from the covered security's closing
price as determined by the listing market \14\ for the covered security
as of the end of regular trading hours on the prior day (``Trigger
Price'').\15\ In addition, Rule 201(b) requires that trading centers
establish, maintain, and enforce written policies and procedures
reasonably designed to impose the Short Sale Price Test for the
remainder of the day and the following day when a national best bid for
the covered security is calculated and disseminated on a current and
continuing basis by a plan processor pursuant to an effective national
market system plan.\16\
---------------------------------------------------------------------------

    \12\ Rule 201(a)(9) states that the term ``trading center''
shall have the same meaning as in Rule 600(b)(78) of Regulation NMS.
Rule 600(b)(78) defines a ``trading center'' as ``a national
securities exchange or national securities association that operates
an SRO trading facility, an alternative trading system, an exchange
market maker, an OTC market maker, or any other broker or dealer
that executes orders internally by trading as principal or crossing
orders as agent.'' 17 CFR 242.600(b)(78).
    \13\ The term ``national best bid'' shall have the same meaning
as in Rule 201 of Regulation SHO. Rule 201(a)(4) states that such
term shall have the same meaning as in Rule 600(b)(42) of Regulation
NMS. 17 CFR 242.201(a)(4); 17 CFR 242.600(b)(42).
    \14\ The term ``listing market'' shall have the same meaning as
in Rule 201 of Regulation SHO. Rule 201(a)(3) defines the term
``listing market'' to have the same meaning as the term ``listing
market'' as defined in the effective transaction reporting plan for
the covered security. 17 CFR 242.201(a)(3). See also 17 CFR
242.201(a)(2).
    \15\ 17 CFR 242.201(b)(1)(i).
    \16\ 17 CFR 242.201(b)(1)(ii). In addition, if the price of a
covered security declines intra-day by at least 10% on a day on
which the security is already subject to the short sale price test
restriction of Rule 201, the restriction will be re-triggered and,
therefore, will continue in effect for the remainder of that day and
the following day. See Rule 201 Adopting Release, 75 FR 11232,
11253, n. 290. Rule 201 does not place any limit on the frequency or
number of times the circuit breaker can be re-triggered with respect
to a particular stock. Division of Trading and Markets: Responses to
Frequently Asked Questions Concerning Rule 201 of Regulation SHO, at
Q&A 2.2 (``T&M FAQs'').

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

    In the Rule 201 Adopting Release, the Commission stated that it was
appropriate to adopt a short sale-related circuit breaker because, when
triggered, it will prevent short selling, including potentially
manipulative or abusive short selling, from driving down further the
price of a security that has already experienced a significant intra-
day price decline, and will facilitate the ability of long sellers to
sell first upon such a decline.\17\ The Commission further stated that
this approach establishes a narrowly-tailored Rule that strikes an
appropriate balance between its goal of preventing potential short sale
abuses and the need to limit impediments to the normal operations of
the market,\18\ and as such, the Rule will help address the erosion of
investor confidence in markets generally.\19\ For these reasons, the
Exchange seeks to amend its short sale rule to comply with the
Commission's amendment of Rule 201.
---------------------------------------------------------------------------

    \17\ Rule 201 Adopting Release, 75 FR 11232.
    \18\ Rule 201 Adopting Release, 75 FR 11232, 11252.
    \19\ Id.
---------------------------------------------------------------------------

    Paragraph (b) of the proposed rule makes clear that, in compliance
with Rule 201, in the event a covered security experiences a decrease
in price of 10% or more, as determined by the listing market for the
security, from the security's closing price on the listing market as of
the end of regular trading hours on the prior day, except for certain
permissible and short exempt orders,\20\ Exchange systems will not
execute or display a short sale order with respect to that security at
a price that is less than or equal to the current national best bid.
---------------------------------------------------------------------------

    \20\ See paragraphs (f) and (g) of proposed Rule 440B regarding
the treatment of permissible and short exempt orders.
---------------------------------------------------------------------------

    Where the Exchange is the listing market for a covered security,
Exchange systems will determine whether the short sale price test
restrictions of Rule 201 have been triggered (i.e., whether a
transaction in a covered security has occurred at a Trigger Price) and
will notify the single plan processor responsible for consolidation of
information for the covered security pursuant to Rule 603(b) of
Regulation NMS.\21\ The Trigger Price of a covered security will not be
calculated until the Exchange opens trading for that security. In
circumstances where a covered security did not trade on the Exchange on
the prior trading day (for example, due to a trading halt, trading
suspension, or otherwise), the Exchange will base its determination of
the Trigger Price on the last sale on the Exchange for that security on
the most recent day on which the security did trade.
---------------------------------------------------------------------------

    \21\ 17 CFR 242.201(b)(3). See also Rule 201(a)(6) of Regulation
SHO, which defines the term ``plan processor'' to have the same
meaning as in Rule 600(b)(55) of Regulation NMS. 17 CFR
242.600(b)(55). The single plan processors are ``exclusive
processors'' as defined under Section 3(a)(22) of the Act. See 15
U.S.C. 78c(a)(22).
---------------------------------------------------------------------------

    Once a Short Sale Price Test is triggered by the listing market,
the Short Sale Price Test will remain in effect until the close of
trading on the next trading day.\22\ If, however, the Exchange
determines that the Short Sale Price Test for a covered security was
triggered because of a clearly erroneous execution,\23\ the Exchange
may lift the Short Sale Price Test before the Short Sale Period ends
for securities for which the Exchange is the listing market or, for
securities listed on another market, notify the other market of the
Exchange's determination that the triggering transaction was a clearly
erroneous execution. Similarly, if the Exchange determines that the
prior day's closing price for a covered security for which the Exchange
is the listing market is incorrect in Exchange systems and resulted in
an incorrect determination that the short sale price restriction had
been triggered, the Exchange may correct the prior day's closing price
and lift the Short Sale Price Test before the Short Sale Period ends.
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    \22\ The Short Sale Price Test will remain in effect at all
times when quotation information and the national best bid is
collected, processed and disseminated. This may extend beyond
regular trading hours. T&M FAQs, supra note 16, at Q&A 2.1.
    \23\ Determination of a ``clearly erroneous'' transaction will
be made in accordance with Exchange Rule 128.
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    During the Short Sale Period, short sale orders that are limited to
the national best bid or lower and short sale market orders will be re-
priced by Exchange systems one minimum price increment above the
current national best bid (``Permitted Price'') to permit their
execution at a price that is compliant with the Short Sale Price Test.
Consistent with Rule 201,\24\ the Permitted Price for securities for
which the national best bid is $1 or more is $.01 above the national
best bid; the Permitted Price for securities for which the national
best bid is below $1 is $.0001 above the national best bid.\25\
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    \24\ Rule 201 Adopting Release, 75 FR 11232, 11247.
    \25\ 17 CFR 242.612.
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    To reflect declines in the national best bid, the Exchange will
continue to re-price a short sale order at the lowest Permitted Price
down to the order's original limit price, or if a market order, until
the order is filled. Non-displayed orders will also be re-priced upward
to a Permitted Price to correspond with a rise in the national best
bid.\26\ Also, during the Short Sale Period, immediate or cancel
(``IOC'') orders will be executed to the extent possible at a Permitted
Price and higher and then cancelled, and will not be re-priced. Inter-
market sweep orders not marked ``short exempt'' will be handled in the
same manner as IOC orders.\27\ In addition, during the Short Sale
Period, Exchange systems will mark certain designated market maker
(``DMM'') sale interest as ``long'' or ``short'' on behalf of the DMM
unit based on position information provided by the DMM unit.\28\ For
such DMM interest, after a security has opened for trading, Exchange
systems (i) will not execute or display such DMM short sale interest
\29\ that is priced at or below the current national best bid and will
cancel any such DMM interest, and (ii) will cancel any such DMM
interest if the execution

of the full amount of all DMM sell interest at a price at or below the
national best bid would result in a change in the DMM position from
long to short.
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    \26\ The following example illustrates the operation of Exchange
systems in this situation. Assume the national best bid is 10.10 and
a sell short order priced at 10.10 arrives at the Exchange during
the Short Sale Period. The order will be re-priced to 10.11 and will
rest on the limit order book. The national best bid then rises to
10.11. If that short sale order was displayed on the offer side,
that order will remain priced at 10.11. See note 30 infra and
accompanying text. If the order was not displayed at the customer's
instruction, then the order will be re-priced to 10.12 because it
cannot be executed at the national best bid. See T&M FAQs, supra
note 16, at Q&A 4.1.
    \27\ See Exchange Rule 13 for the definition of inter-market
sweep order.
    \28\ Under Rule 200(g) of Regulation SHO, broker-dealers are
responsible for proper marking of orders. However, with respect to
certain trading by DMM units, Exchange systems will monitor DMM unit
positions on a real-time basis during the trading day and will be
responsible for order marking on behalf of DMM units for certain
trading entered through Exchange systems. This will be done by
receiving a position report prior to the opening of trading and
updating DMM unit positions based on position information provided
by the DMM unit and/or Exchange trade executions during the day. DMM
units will be responsible for properly marking any DMM interest
entered into Exchange systems for which the Exchange does not
monitor or update the DMM unit's position. Exchange systems will
treat such DMM interest that is marked short the same as how it
treats other interest, as provided for in proposed Rule 440B(e), and
will not cancel such DMM interest as provided for in proposed Rule
440B(e)(2).
    \29\ See Exchange Rules 104(b) and 1000 regarding DMM trading
algorithms and automatic execution.
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    During the Short Sale Period, Exchange systems will execute and
display a short sale order without regard to price if, at the time of
initial display of the short sale order, the order was at a price above
the then current national best bid.\30\ Un-displayed short sale orders
that are entered into the Exchange's systems prior to the Short Sale
Period will be re-priced as described above.
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    \30\ See also 17 CFR 242.201(b)(1)(iii)(A).
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    As permitted by Rule 201, during the Short Sale Period, Exchange
systems will execute and display orders marked ``short exempt'' without
regard to whether the order is at a Permitted Price.\31\ Exchange
systems will also accept orders marked ``short exempt'' at any time
when such systems are open for order entry, regardless of whether the
Short Sale Price Test has been triggered.\32\
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    \31\ See also 17 CFR 242.201(b)(1)(iii)(B).
    \32\ Exchange systems will also follow the guidance in the T&M
FAQs. See supra note 16.
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    In addition, the proposed amendments to Rule 440B will also provide
for calculation of the Permitted Price and re-pricing of short sale
orders with respect to any single-priced opening, re-opening or closing
transaction during the Short Sale Period. Paragraph (h) of Rule 440B,
as proposed, would provide that, with respect to the execution of short
sale orders in a covered security in any single-priced opening, re-
opening or closing transaction during the Short Sale Period, Exchange
systems will re-price short sale orders in a covered security as
follows: (1) Opening--one minimum price increment above the national
best bid at 9:30 a.m.; (2) Re-opening following a halt or pause in
trading--one minimum price increment above the last published Exchange
bid prior to such halt or pause; and (3) Closing--one minimum price
increment above the last published Exchange bid prior to the close.\33\
For purposes of paragraph (h) the term ``minimum price increment''
shall mean $.01 for securities for which the national best bid or the
published Exchange bid, as the case may be, is $1 or more, and $.0001
for securities for which the national best bid or the published
Exchange bid, as the case may be, is below $1.
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    \33\ See Letter from James Brigagliano, Deputy Director,
Division of Trading & Markets, SEC, to Janet McGinness, Senior Vice
President and Secretary, NYSE Euronext, February 7, 2011.
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    Paragraph (h) of Rule 440B, as proposed, also provides that, during
a Short Sale Period, Exchange systems will not execute a short sale
order for a covered security in a single-priced opening transaction at
or below the national best bid at 9:30 a.m.,\34\ and will not execute a
short sale order for a covered security in a single-priced re-opening
or closing transaction at or below the last published Exchange bid
prior to a halt or pause in trading (in the case of a single-priced re-
opening transaction), or at or below the last published Exchange bid
prior to the close (in the case of a single-priced closing
transaction).
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    \34\ Short sale orders designated for execution only at the
opening will be cancelled if not executed at the opening. Other
short sale orders will remain on the Display Book for execution
during the trading day if at a Permitted Price or higher and may be
repriced throughout the day, consistent with proposed Rule 440B(e).
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    The Exchange is also proposing changes to the Supplementary
Material to Rule 440B. First, in .11, the Exchange is proposing to
delete an outdated reference to Rule 440B(c). Second, the Exchange is
proposing to amend .12 to add language permitting orders to be marked
``short exempt'' in accordance with Rule 200(g)(2) and Rule 201 of
Regulation SHO. Under amended .12, an order may be marked ``short
exempt'' if the broker-dealer had a reasonable basis for believing that
the order meets one of the exceptions specified in Rule 201(d) of
Regulation SHO.\35\ An order may also be marked ``short exempt'' if it
is entered during a Short Sale Period and meets the conditions
specified in Rule 201(c) of Regulation SHO.\36\
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    \35\ 17 CFR 242.201(d); T&M FAQs, supra note 16, at Q&A 5.4.
    \36\ 17 CFR 242.201(c); see also T&M FAQs, supra note 16, at Q&A
4.2 and 5.5.
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    Finally, the Exchange also proposes to amend its Rule 900 regarding
its Off-Hours Trading Facility to apply Rule 440B (including the short
sale price test restrictions of Rule 201) to transactions in the Off-
Hours Trading Facility (by deleting the current exclusion for Rule
440B). An obsolete reference to the Intermarket Trading System
(``ITS'') in Rule 900(b) will also be deleted.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\37\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\38\ in particular, in that it is designed to, among
other things, prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, and, in general, to
protect investors and the public interest. The proposal is designed to
implement the provisions of Rule 201 of Regulation SHO by establishing,
maintaining and enforcing written policies and procedures reasonably
designed to prevent the execution or display of a short sale order of a
covered security in violation of the Short Sale Price Test established
in that rule. To that end, the proposed rule change will, among other
things, establish the Exchange's procedures regarding the execution and
display of permissible orders during the Short Sale Period, and the
execution of orders marked ``short exempt.''
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    \37\ 15 U.S.C. 78f(b).
    \38\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \39\ and Rule 19b-4(f)(6) thereunder.\40\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \41\ and Rule
19b-4(f)(6)(iii) thereunder.\42\
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    \39\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \40\ 17 CFR 240.19b-4(f)(6).
    \41\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \42\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \43\ normally
does not

become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\44\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission hereby
grants the request.\45\ Waiving the 30-day operative delay will allow
the Exchange to implement the proposed amendments by February 28, 2011,
which, as noted by the Exchange, is the compliance date for amendments
to Regulation SHO under the Act. By waiving the operative delay, the
Exchange will be able to comply with the amendments to Regulation SHO
by February 28, 2011. Therefore, the Commission believes it is
consistent with the protection of investors and the public interest to
waive the 30-day operative delay and designates the proposal as
operative upon filing.
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    \43\ 17 CFR 240.19b-4(f)(6).
    \44\ 17 CFR 240.19b-4(f)(6)(iii).
    \45\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of such 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.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2011-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2011-05. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549-1090. Copies of the filing will also be available
for inspection and copying at the NYSE's principal office and on its
Internet Web site at http://www.nyse.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2011-05 and should be submitted on
or before March 25, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\46\
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    \46\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4895 Filed 3-3-11; 8:45 am]
BILLING CODE 8011-01-P