[Federal Register Volume 85, Number 151 (Wednesday, August 5, 2020)]
[Notices]
[Pages 47431-47437]
[FR Doc No: 2020-16994]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89426; File No. SR-NYSEAMER-2020-59]

Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 904 To Increase Position Limits for Options on Certain Exchange-
Traded Funds

July 30, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on July 24, 2020, NYSE American LLC (``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice To solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange proposes to amend Rule 904 (Position Limits) to
increase the position limits for options on certain exchange-traded
funds (``ETFs''). The proposed rule change is available on the
Exchange's website at www.nyse.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 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to amend Commentary .07(f) to Rule
904 to increase the position limits for options on the following ETFs:
Standard and Poor's Depositary Receipts Trust (``SPY''), iShares MSCI
EAFE ETF (``EFA''), iShares China Large-Cap ETF (``FXI''), iShares
iBoxx High Yield Corporate Bond Fund (``HYG''), and Financial Select
Sector SPDR Fund (``XLF''). Although the proposed change does not amend
the text of Rule 905 (Exercise Limits), when the proposed rule is
effective and operative, the exercise limits for the options that are
subject to this proposed rule change would increase, because Rule 905
provides that the exercise limits for index options and ETF options,
respectively, are equivalent to their position limits. This is a
competitive filing that is based on a proposal recently submitted by
the Chicago Board Options Exchange Incorporated (``Cboe'') and approved
by the Commission.\4\
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    \4\ See Securities Exchange Act Release No. 88768 (April 29,
2020) 85 FR 26736 (May 5, 2020) (SR-CBOE-2020-015) (Notice of Filing
of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, to Increase
Position Limits for Options on Certain Exchange-Traded Funds and
Indexes) (the ``Cboe Approval Order''). Cboe also increased position
limits for options overlying the MSCI Emerging Markets Index
(``MXEF'') and the MSCI EAFE Index (``MXEA''), however, because the
Exchange does not list options on the MXEF or MXEA indexes this
proposal does not include them.
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    Position limits are designed to address potential manipulative
schemes and adverse market impacts surrounding the use of options, such
as disrupting the market in the security underlying the options. While
position limits should address and discourage the potential for
manipulative schemes and adverse market impact, if such limits are set
too low, participation in the options market may be discouraged. The
Exchange believes that position limits must therefore be balanced
between mitigating concerns of any potential manipulation and the cost
of inhibiting potential hedging activity that could be used for
legitimate economic purposes.
    According to Cboe, market participants have increased their demand
for options on SPY, EFA, FXI, HYG, and XLF (collectively, the
``Underlying ETFs'') for both trading and hedging purposes. Cboe noted
that although the demand for these options appears to have increased,
position limits for options on the Underlying ETFs, have remained the
same. The Exchange believes these unchanged position limits may have
impeded, and may continue to impede, trading activity and strategies of
investors, such as use of effective hedging vehicles or income
generating strategies (e.g., buy-write or put-write), and the ability
of a Market Maker \5\ to make liquid markets with tighter spreads in
these options resulting in the transfer of volume to over-the-counter
(``OTC'') markets. OTC transactions occur through bilateral agreements,
the terms of which are not publicly disclosed to the marketplace. As
such, OTC transactions do not contribute to the price discovery process
on a public exchange or other lit markets.
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    \5\ The term ``Market Maker'' refers to a Remote Market Maker, a
Floor Market Maker, a Specialist, or an e-Specialist, collectively.
See Rule 920NY. A Market Maker has the rights and responsibilities
set forth in Rules 925NY through Rule 926NY.
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    Based on the foregoing, the Exchange believes that the proposed
increases in position limits (and exercise limits) for options on the
Underlying ETFs may enable liquidity providers to provide additional
liquidity to the Exchange and enable other market participants to
transfer their liquidity demands from OTC markets to the Exchange (or
other options exchanges on which they participate). As described in
further detail below, the Exchange believes that the continuously
increasing market capitalization of the Underlying ETFs and ETF
component securities, as well as the highly liquid markets for those
securities, reduces the concerns for potential market manipulation and/
or disruption in the underlying markets upon increasing position
limits, while the rising demand for trading options on the Underlying
ETFs for legitimate economic purposes compels an increase in position
limits (and corresponding exercise limits).
Proposed Position and Exercise Limits for Options on the Underlying
ETFs
    Position limits for options on ETFs are determined pursuant to Rule
904, and vary according to the number of outstanding shares and the
trading volumes of the underlying stocks or ETFs over the past six
months. Pursuant to Rule 904, the largest in capitalization and the
most frequently traded stocks and ETFs have an option position limit of
250,000 contracts (with adjustments for splits, re-capitalizations,
etc.) on the same side of the market; and smaller capitalization stocks
and ETFs have

position limits of 200,000, 75,000, 50,000, or 25,000 contracts (with
adjustments for splits, recapitalizations, etc.) on the same side of
the market. Options on HYG and XLF are currently subject to the
standard position limit of 250,000 contracts as set forth in Rule 904.
Commentary .07(f) to Rule 904 sets forth separate position limits for
options on specific ETFs, including SPY, FXI and EFA. In addition, Rule
905 (which is not being amended by this filing), establishes exercise
limits for the aforementioned ETFs.
    The Exchange proposes to amend Rule 904 Commentary .07(f) to double
the position limits and, as a result, exercise limits, for options on
the Underlying ETFs, i.e., for each of HYG, XLF, FXI, EFA and SPY. By
virtue of Rule 905, the exercise limits for EFA, FXI, HYG, XLF, and SPY
would similarly increase.
    The table below represents the current and proposed position limits
for options on the Underlying ETFs, including the addition to the table
of HYG and XLF, with new text signified by italics and to-be-deleted
text signified in brackets.\6\
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    \6\ See proposed Rule 904, Commentary .07(f).

------------------------------------------------------------------------
                  Options                          Position limits
------------------------------------------------------------------------
PowerShares QQQ TrustSM, Series 1 (QQQ)...  1,800,000 contracts
SPDR[supreg] S&P 500[supreg] ETF (SPY)....  [1,800,000] 3,600,000
                                             contracts
iShares[supreg] Russell 2000[supreg] ETF    1,000,000 contracts
 (IWM).
SPDR[supreg]Dow Jones Industrial AverageSM  300,000 contracts
 ETF Trust (DIA).
iShares MSCI Emerging Markets ETF (EEM)...  1,000,000 contracts
iShares China Large-Cap ETF (FXI).........  [500,000] 1,000,000
                                             contracts
iShares MSCI EAFE ETF (EFA)...............  [500,000] 1,000,000
                                             contracts
iShares MSCI Brazil Capped ETF (EWZ)......  500,000 contracts
iShares 20+ Year Treasury Bond Fund ETF     500,000 contracts
 (TLT).
iShares MSCI Japan ETF (EWJ)..............  500,000 contracts
iShares iBoxx High Yield Corporate Bond     500,000 contracts
 Fund (``HYG'').
Financial Select Sector SPDR Fund           500,000 contracts
 (``XLF'').
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    The Exchange notes that the proposed position limits for options on
EFA and FXI are consistent with existing position limits for options on
the iShares[supreg] Russell 2000 ETF (``IWM'') and the iShares[supreg]
MSCI Emerging Markets ETF (``EEM''), while the proposed limits for
options on XLF and HYG are consistent with current position limits for
options on the iShares[supreg] MSCI Brazil Capped ETF (``EWZ''),
iShares[supreg] 20+ Year Treasury Bond Fund ETF (``TLT''), and
iShares[supreg] MSCI Japan ETF (``EWJ''). The Exchange represents that
the Underlying ETFs qualify for either:
    (1) The initial listing criteria set forth in Rule 915, Commentary
.06 for ETFs holding non-U.S. component securities, or
    (2) the generic listing standards for series of portfolio
depository receipts and index fund shares based on international or
global indexes under which a comprehensive surveillance agreement
(``CSA'') is not required, as well as the continued listing criteria in
Rule 916.\7\
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    \7\ The Exchange notes that the initial listing criteria for
options on ETFs that hold non-U.S. component securities are more
stringent than the maintenance listing criteria for those same ETF
options. See Rule 915, Commentary .06(a)(ii) and Rule 916,
Commentary .07.
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    In compliance with its listing rules, the Exchange also represents
that non U.S. component securities that are not subject to a CSA do
not, in the aggregate, represent more than 50% of the weight of any of
the Underlying ETFs.\8\
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    \8\ See Rule 915, Commentary .06(a)(ii).
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Cboe's Composition and Growth Analysis for Underlying ETFs
    As stated above, position limits are intended to prevent the
establishment of options positions that can be used or might create
incentives to manipulate the underlying market so as to benefit options
positions. The Securities and Exchange Commission (the ``Commission'')
has recognized that these limits are designed to minimize the potential
for mini-manipulations and for corners or squeezes of the underlying
market, as well as serve to reduce the possibility for disruption of
the options market itself, especially in illiquid classes.\9\ The
Underlying ETFs as well as the ETF components are highly liquid, and
are based on a broad set of highly liquid securities and other
reference assets, as demonstrated by the trading statistics collected
by Cboe.\10\ Indeed, the Commission recognized the liquidity of the
securities comprising the underlying interest of SPY and permitted no
position limits on SPY options from 2012 through 2018.\11\
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    \9\ See Securities Exchange Act Release No. 67672 (August 15,
2012), 77 FR 50750 (August 22, 2012) (SR-NYSEAmex-2012-29).
    \10\ See supra note 4.
    \11\ See supra note 9 (Order approving the Exchange's;
implementation of the pilot program that ran through 2017, during
which there were no position limits for options on SPY). See also
Securities Exchange Act Release No. 83417 (June 12, 2018) 83 FR
28279 (June 18, 2018) (SR-NYSEAMER-2018-26). The Exchange notes that
throughout the duration of the pilot program it was not aware of any
problems created or adverse consequences as a result of the pilot
program.
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    To support its proposed position limit increases, Cboe conducted an
analysis in support of its proposal. The Exchange agrees with Cboe's
trading statistics and analysis. In support of its proposal, Cboe
considered both liquidity of the Underlying ETFs and the component
securities of the Underlying ETFs, as well as the availability of
economically equivalent products to the overlying options and their
respective position limits. For instance, some of the Underlying ETFs
are based upon broad-based indices that underlie cash-settled options,
and therefore the options on the Underlying ETFs are economically
equivalent to the options on those indices, which have no position
limits. Other Underlying ETFs are based upon broad-based indices that
underlie cash-settled options with position limits reflecting notional
values that are larger than current position limits for options on the
ETFs based on the same indices. For indexes that are tracked by an
Underlying ETF but on which there are no options listed, the Exchange
believes, based on the liquidity, depth and breadth of the underlying
market of the components of the indexes, that each of the indexes
referenced by the applicable ETFs would be considered a broad-based
index under the Exchange's Rules. Additionally, if in some cases
certain position limits are appropriate for the options overlying
comparable indexes or basket of securities that the Underlying ETFs
track, then those economically equivalent position limits should be
appropriate for the options overlying the Underlying ETFs.
    The Exchange notes that the following trading statistics regarding
shares of and options on the Underlying ETFs, as well as the component
securities have been collected by Cboe: \12\
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    \12\ See Securities Exchange Act Release No. 34-88350 (March 10,
2020), 85 FR 15003 (March 16, 2020) (SR-CBOE-2020-015).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Shares outstanding                           Total market cap of
              Product                 ADV \13\ (ETF Shares)  ADV (option contracts)       (ETFS) \14\       Fund market cap (USD)   ETF components \15\
--------------------------------------------------------------------------------------------------------------------------------------------------------
SPY................................  70.3 million..........  2.8 million...........  968.7 million........  312.9 billion........  29.3 trillion
FXI................................  26.1 million..........  196,600...............  106.8 million........  4.8 billion..........  28.0 trillion
EFA................................  25.1 million..........  155,900...............  928.2 million........  64.9 billion.........  19.3 trillion
HYG................................  20.0 million..........  193,700...............  216.6 million........  19.1 billion.........  906.4 billion \16\
XLF................................  48.8 million..........  102,100...............  793.6 million........  24.6 billion.........  3.8 trillion
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    In addition, Cboe also collected the same trading statistics, where
applicable, as above regarding a sample of other ETFs, as well as the
current position limits for options on such ETFs, in order to draw
comparisons in support of their proposed position limit increases for
options on a number of Underlying ETFs (see further discussion below):

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                                                                                Current
             Product                 ADV (ETF shares)      ADV (option    Shares outstanding      Fund market cap    Total market cap of     position
                                                           contracts)           (ETFs)                 (USD)            ETF components        limits
--------------------------------------------------------------------------------------------------------------------------------------------------------
QQQ..............................  30.2 million........         670,200  410.3 million.......  88.7 billion........  10.1 trillion......       1,800,000
EWZ..............................  26.7 million........         186,500  233 million.........  11.3 billion........  234.6 billion......         500,000
TLT..............................  9.6 million.........          95,200  128.1 million.......  17.5 billion........  N/A................         500,000
EWJ..............................  7.2 million.........           5,700  236.6 million.......  14.2 billion........  3 trillion.........         500,000
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    The following analysis, which the Exchange agrees with, was
conducted by Cboe in support of its proposal. Cboe noted that, overall,
the liquidity in the shares of the Underlying ETFs and in the component
securities of the Underlying ETFs and in their overlying options, as
well as the large market capitalization and structure of each of the
Underlying ETFs support the proposal to increase the position limits
for each option class. Given the robust liquidity and capitalization in
the Underlying ETFs and in the component securities of the Underlying
ETFs the Exchange does not anticipate that the proposed increase in
position limits would create significant price movements. Also, the
Exchange believes the market capitalization of the underlying component
securities of the applicable index or reference asset are large enough
to adequately absorb potential price movements that may be caused by
large trades.
    Specifically, the Exchange notes that SPY tracks the performance of
the S&P 500[supreg] Index, which is an index of diversified large cap
U.S. companies.\17\ It is composed of 505 selected stocks spanning over
approximately 24 separate industry groups. The S&P 500[supreg] is one
of the most commonly followed equity indices, and is widely considered
to be the best indicator of stock market performance as a whole. SPY is
one of the most actively traded ETFs.
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    \17\ See SPDR S&P 500 ETF Trust, available at: https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-500-etf-trust-spy
(January 21, 2020).
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    In support of its proposal to increase position limits for SPY to
3,600,000 contracts, Cboe compared SPY's ADV from 2017 to the end of
2019, and found that SPY's ADV has increased from approximately 64.6
million shares to 70.3 million shares.\18\ Similarly, Cboe noted SPY's
ADV in options contracts has increased from 2.6 million to 2.8 million
through 2019.\19\ Cboe's data shows the demand for options trading on
SPY has continued to increase, however, the position limits have
remained the same, which the Exchange believes may have impacted growth
in SPY option volume from 2017 through 2019. In addition, Cboe notes
that SPY shares are more liquid than PowerShares QQQ TrustSM (``QQQ'')
shares, which is also currently subject to a position limit of
1,800,000 contracts. Specifically, according to Cboe's statistical
comparison, SPY currently experiences over twice the ADV in shares and
over four times the ADV in options than that of QQQ.\20\
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    \18\ See Securities Exchange Act Release 83065 (April 19, 2018)
83 FR 18093 (April 25, 2018) SR-NYSEAMER-2018-14) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify Rule
904, Commentary .07 To Expand Position Limits for Options on Certain
Exchange-Traded Funds).
    \19\ See Securities Exchange Act Release No. 83417 (June 12,
2018) 83 FR 28279 (June 18, 2018) (SR-NYSEAMER-2018-26) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Amend
Commentary .07 to Rule 904).
    \20\ The 2019 ADV for QQQ shares is 30.2 million and for options
on QQQ is 670,200.
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    EFA tracks the performance of MSCI EAFE Index (``MXEA''), which is
comprised of over 900 large and mid-cap securities across 21 developed
markets, including countries in Europe, Australia and the Far East,
excluding the U.S. and Canada.\21\ In support of its proposal to
increase the position limit for EFA, Cboe's proposal specifies, ADV has
grown significantly in shares of EFA and in options on EFA, from
approximately 19.4 million shares in 2017 to 25.1 million through 2019,
and from approximately 98,800 options contracts in 2017 to 155,900
through 2019. Further, Cboe compared the notional value of EFA's share
price of $69.44 and MXEA's index level of 2036.94, and calculated that
approximately 29 EFA option contracts equal one MXEA option contract.
Based on the above comparison of notional values, Cboe concluded that a
position limit for EFA options would be economically equivalent to that
of MXEA options which equates to 725,000 contracts (prior to Cboe's
recent change) and 1,450,000 for Cboe's current 50,000 contract
position limit for MXEA options.\22\
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    \21\ See iShares MSCI EAFE ETF, available at: https://www.ishares.com/us/products/239623/ishares-msci-eafe-etf (April 30,
2020).
    \22\ The Exchange notes that it does not list options on foreign
indexes.
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    Cboe also noted that MXEA index options have an ADV of 594 options
contracts, which equates to an ADV of 17,226 EFA option contracts (as
that is 29 times the size of 594). The Exchange believes the
significantly higher actual ADV (155,900 contracts), economically
equivalent ADV (17,226 contracts), notional value, and economically
equivalent position limits for EFA as compared to MXEA options,
supports an increase in position limits for EFA options from 500,000
contracts to 1,000,000 contracts.
    FXI tracks the performance of the FTSE China 50 Index, which is
composed of the 50 largest Chinese stocks.\23\ According to Cboe, FXI
shares and options have also experienced

increased liquidity since 2017, as ADV has grown from approximately
15.1 million shares in 2017 to 26.1 million through 2019, as well as
approximately 71,900 options contracts in 2017 to 196,600 through 2019.
Cboe notes that although there are currently no options on the FTSE
China 50 Index listed for trading, the components of the FTSE China 50
Index, which can be used to create a basket of stocks that equate to
the FXI ETF, currently have a market capitalization of approximately
$28 trillion and FXI has a market capitalization of $4.8 billion (as
indicated above), which the Exchange believes are both large enough to
absorb potential price movements caused by a large trade in FXI.
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    \23\ See iShares China Large-Cap ETF, available at: https://www.ishares.com/us/products/239536/ishares-china-largecap-etf (April
30, 2020).
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    XLF invests in a wide array of financial service firms with
diversified business lines ranging from investment management to
commercial and investment banking. It generally corresponds to the
price and yield performance of publicly traded equity securities of
companies in the SPDR Financial Select Sector Index.\24\ In support of
its proposal, Cboe compared XLF's ADV to the ADV in shares and options
for EWZ (26.7 million shares and 186,500 options contracts), TLT (9.6
million shares and 95,200 options contracts), and EWJ (7.2 million
shares and 5,700 options contracts). According to Cboe, XLF experiences
significantly greater ADV in shares and options than EWZ, TLT, and EWJ,
which already have a position limit of 500,000 contracts--the proposed
position limit for XLF options. According to Cboe, although there are
no options listed on the SPDR Financial Select Sector Index listed for
trading, the components of the index, which can be used to create a
basket of stocks that equate to the XLF ETF, currently have a market
capitalization of $3.8 trillion (indicated above). Additionally, XLF
has a market capitalization of $24.6 billion. The Exchange believes
that both of these are large enough to absorb potential price movements
caused by a large trade in XLF.
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    \24\ See Select Sector SPDR ETFs, XLF, available at: http://www.sectorspdr.com/sectorspdr/sector/xlf (April 30, 2020).
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    Finally, HYG attempts to track the investment results of Markit
iBoxx[supreg] USD Liquid High Yield Index, which is composed of U.S.
dollar-denominated, high-yield corporate bonds and is one of the most
widely used high-yield bond ETFs.\25\ To support its proposed position
limit increase on HYG, Cboe compared the HYG's ADV in share and options
to that of both TLT (9.6 million shares and 95,200 options contracts),
and EWJ (7.2 million shares and 5,700 options contracts). The Exchange
agrees with Cboe's comparison and following analysis. Cboe found that
HYG experiences significantly higher ADV in shares and options than
both TLT and EWJ, which are currently subject to a position limit of
500,000 options contracts--the proposed limit for options on HYG.
According to Cboe, while HYG does not have an index option analogue
listed for trading, Cboe believes that its market capitalization of
$19.1 billion, and of $906.4 billion in component securities, is
adequate to absorb a potential price movement that may be caused by
large trades in HYG.
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    \25\ See iShares iBoxx $ High Yield Corporate Bond ETF,
available at: https://www.ishares.com/us/products/239565/ishares-iboxx-high-yield-corporatebond-etf (April 30, 2020).
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Creation and Redemption for ETFs
    The Exchange believes that the creation and redemption process for
ETFs will lessen the potential for manipulative activity with options
on the Underlying ETFs. When an ETF provider wants to create more
shares, it looks to an Authorized Participant (generally a market maker
or other large financial institution) to acquire the securities the ETF
is to hold. For instance, when an ETF is designed to track the
performance of an index, the Authorized Participant can purchase all
the constituent securities in the exact same weight as the index, then
deliver those shares to the ETF provider. In exchange, the ETF provider
gives the Authorized Participant a block of equally valued ETF shares,
on a one-for-one fair value basis. The price is based on the net asset
value, not the market value at which the ETF is trading. The creation
of new ETF units can be conducted during an entire trading day, and is
not subject to position limits. This process works in reverse where the
ETF provider seeks to decrease the number of shares that are available
to trade. The creation and redemption process, therefore, creates a
direct link to the underlying components of the ETF, and serves to
mitigate potential price impact of the ETF shares that might otherwise
result from increased position limits for the ETF options.
    The Exchange understands that the ETF creation and redemption
process seeks to keep an ETF's share price trading in line with the
ETF's underlying net asset value. Because an ETF trades like a stock,
its share price will fluctuate during the trading day, due to simple
supply and demand. If demand to buy an ETF is high, for instance, the
ETF's share price might rise above the value of its underlying
securities. When this happens, the Authorized Participant believes the
ETF may now be overpriced, so it may buy shares of the component
securities and then sell ETF shares in the open market (i.e.
creations). This may drive the ETF's share price back toward the
underlying net asset value. Likewise, if the ETF share price starts
trading at a discount to the securities it holds, the Authorized
Participant can buy shares of the ETF and redeem them for the
underlying securities (i.e. redemptions). Buying undervalued ETF shares
may drive the share price of the ETF back toward fair value. This
arbitrage process helps to keep an ETF's share price in line with the
value of its underlying portfolio.
Surveillance and Reporting Requirements
    The Exchange believes that increasing the position limits for the
options on the Underlying ETFs would lead to a more liquid and
competitive market environment for these options, which will benefit
customers interested in trading these products. The reporting
requirement for the options on the Underlying ETFs would remain
unchanged. Thus, the Exchange would still require that each Member \26\
that maintains positions in the options on the same side of the market,
for its own account or for the account of a customer, report certain
information to the Exchange. This information would include, but would
not be limited to, the options' positions, whether such positions are
hedged and, if so, a description of the hedge(s).
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    \26\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with an ATP. ATP
Holders are deemed ``members'' under the Exchange Act. See Rule
900.2NY(5).
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    Market Makers would continue to be exempt from this reporting
requirement, however, the Exchange may access Market Maker position
information.\27\ Moreover, the Exchange's requirement that Members file
reports with the Exchange for any customer who held aggregate large
long or short positions on the same side of the market of 200 or more
options contracts of any single class for the previous day will remain
at this level for the options subject to this proposal and will
continue to serve as

an important part of the Exchange's surveillance efforts.\28\
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    \27\ The Options Clearing Corporation (``OCC'') through the
Large Option Position Reporting (``LOPR'') system acts as a
centralized service provider for Member compliance with position
reporting requirements by collecting data from each Member,
consolidating the information, and ultimately providing detailed
listings of each Member's report to the Exchange, as well as
Financial Industry Regulatory Authority, Inc. (``FINRA''), acting as
its agent pursuant to a regulatory services agreement (``RSA'').
    \28\ See Rule 906.
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    The Exchange believes that the existing surveillance procedures and
reporting requirements at the Exchange and other SROs are capable of
properly identifying disruptive and/or manipulative trading activity.
The Exchange also represents that it has adequate surveillances in
place to detect potential manipulation, as well as reviews in place to
identify potential changes in composition of the Underlying ETFs and
continued compliance with the Exchange's listing standards. These
procedures utilize daily monitoring of market activity via automated
surveillance techniques to identify unusual activity in both options
and the underlyings, as applicable.\29\
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    \29\ The Exchange believes these procedures have been effective
for the surveillance of trading the options subject to this
proposal, and will continue to employ them.
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    The Exchange also notes that large stock holdings must be disclosed
to the Commission by way of Schedules 13D or 13G,\30\ which are used to
report ownership of stock which exceeds 5% of a company's total stock
issue and may assist in providing information in monitoring for any
potential manipulative schemes.
---------------------------------------------------------------------------

    \30\ 17 CFR 240.13d 1
---------------------------------------------------------------------------

    The Exchange believes that the current financial requirements
imposed by the Exchange and by the Commission adequately address
concerns regarding potentially large, unhedged positions in the options
on the Underlying ETFs. Current margin and risk-based haircut
methodologies serve to limit the size of positions maintained by any
one account by increasing the margin and/or capital that a Member must
maintain for a large position held by itself or by its customer.\31\ In
addition, Rule 15c3-1 imposes a capital charge on Members to the extent
of any margin deficiency resulting from the higher margin
requirement.\32\
---------------------------------------------------------------------------

    \31\ See Exchange Rules, Section 9
    \32\ 17 CFR 240.15c3-1.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\33\ in general, and Section
6(b)(5) of the Act,\34\ in particular, in that it is 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 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) \35\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78f(b).
    \34\ 15 U.S.C. 78f(b)(5).
    \35\ Id.
---------------------------------------------------------------------------

    The Exchange believes that the proposed increase in position limits
for options on the Underlying ETFs will remove impediments to and
perfect the mechanism of a free and open market and national market
system, and, in general, protect investors and the public interest,
because it will provide market participants with the ability to more
effectively execute their trading and hedging activities. The proposed
increases will allow market participants to more fully implement
hedging strategies in related derivative products and to further use
options to achieve investment strategies (e.g., there are Exchange-
Traded Products (``ETPs'') that use options on the Underlying ETFs as
part of their investment strategy, and the applicable position limits
as they stand today may inhibit these ETPs in achieving their
investment objectives, to the detriment of investors). Also, increasing
the applicable position limits may allow Market Makers to provide the
markets for these options with more liquidity in amounts commensurate
with increased consumer demand in such markets. The proposed position
limit increases may also encourage other liquidity providers to shift
liquidity, as well as encourage consumers to shift demand, from OTC
markets onto the Exchange, which will enhance the process of price
discovery conducted on the Exchange through increased order flow.
    In addition, the Exchange believes that the structure of the
Underlying ETFs, the considerable market capitalization of the funds,
underlying component securities, and the liquidity of the markets for
the applicable options and underlying component securities will
mitigate concerns regarding potential manipulation of the products and/
or disruption of the underlying markets upon increasing the relevant
position limits. As a general principle, increases in market
capitalizations, active trading volume, and deep liquidity of
securities tend to deter manipulation and/or disruption. This general
principle applies to the recently observed increased levels of market
capitalization, trading volume, and liquidity in shares of the
Underlying ETFs, and the components of the Underlying ETFs (as
described above), the Exchange does not believe that the options
markets or underlying markets would become susceptible to manipulation
and/or disruption as a result of the proposed position limit increases.
Indeed, the Commission has previously expressed the belief that
removing position and exercise limits may bring additional depth and
liquidity to the options markets without increasing concerns regarding
intermarket manipulation or disruption of the options or the underlying
securities.\36\ More specifically, the Commission recently approved
Cboe's proposal to increase the position limits for the Underlying ETFs
in this filing.\37\
---------------------------------------------------------------------------

    \36\ See Securities Exchange Act Release No. 62147 (October 28,
2005) (SR-CBOE-2005-41), at 62149.
    \37\ See supra note 4.
---------------------------------------------------------------------------

    Further, the Exchange notes that the proposed rule change to
increase position limits for select actively traded options, is not
novel and has been previously approved by the Commission. For example,
the Commission has previously approved, on a pilot basis, eliminating
position limits for options on SPY.\38\ Additionally, the Commission
has approved similar proposed rule changes by the Exchange to increase
position limits for options on highly liquid, actively traded ETFs.\39\
In approving increases in position (and exercise limits) for such
options in the past, the Commission relied heavily upon the exchanges'
surveillance capabilities, expressing trust in the enhanced
surveillances and reporting safeguards that exchanges took in order to
detect and deter possible manipulative behavior which might arise from
eliminating position and exercise limits.
---------------------------------------------------------------------------

    \38\ See supra notes 9 and 11.
    \39\ See supra note 19.
---------------------------------------------------------------------------

    Furthermore, as described more fully above, the proposed position
limits for options on EFA and FXI are consistent with existing position
limits for options on IWM and EEM, and the proposed limits for options
on XLF and HYG are consistent with current position limits for options
on EWZ, TLT, and EWJ.
    The Exchange believes that its surveillance and reporting
safeguards continue to be designed to deter and detect possible
manipulative behavior that might arise from increasing or eliminating
position and exercise limits in certain classes. Lastly, the Exchange
believes that the current financial requirements imposed by the
Exchange and by the Commission adequately address concerns regarding
potentially

large, unhedged position in the options on the Underlying ETFs, further
promoting just and equitable principles of trading, the maintenance of
a fair and orderly market, and the protection of investors.

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. The Exchange does not
believe the proposed rule change will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the increased position limits (and exercise
limits) will be available to all market participants and apply to each
in the same manner. The Exchange believes that the proposed rule change
will provide additional opportunities for market participants to more
efficiently achieve their investment and trading objectives.
    The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the Act. On the contrary, the Exchange
believes the proposal promotes competition because it may attract
additional order flow from the OTC market to exchanges, which would in
turn compete amongst each other for those orders. The Exchange believes
market participants would benefit from being able to trade options with
increased position limits in an exchange environment in several ways,
including but not limited to the following: (1) Enhanced efficiency in
initiating and closing out positions; (2) increased market
transparency; and (3) heightened contra-party creditworthiness due to
the role of OCC as issuer and guarantor. Further, the Exchange notes
that the rule change is being proposed as a competitive response to a
filing submitted by Cboe that was recently approved by the
Commission.\40\ As such, the Exchange does not believe that the
proposed rule change will impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \40\ See supra note 4.
---------------------------------------------------------------------------

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

    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) of the Act \41\ and Rule 19b-
4(f)(6) thereunder.\42\
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78s(b)(3)(A).
    \42\ 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.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \43\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \44\ permits the
Commission to 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 proposed rule change may become operative upon filing. The Exchange
states that waiver of the operative delay would be consistent with the
protection of investors and the public interest because it will ensure
fair competition among the exchanges by allowing the Exchange to
immediately increase the position limits for the products subject to
this proposal, which the Exchange believes will provide consistency for
Exchange participants that are also members at Cboe where these
increased position limits are currently in place. For this reason, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the operative delay and
designates the proposal as operative upon filing.\45\
---------------------------------------------------------------------------

    \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 also 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 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-NYSEAMER-2020-59 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-NYSEAMER-2020-59. 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 such filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. 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-NYSEAMER-2020-59, and should
be submitted on or before August 26, 2020.

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

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

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-16994 Filed 8-4-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 33 (Tuesday, February 21, 2017)]
[Notices]
[Pages 11215-11216]
[FR Doc No: 2017-03350]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP17-376-000.
    Applicants: Equitrans, L.P.
    Description: Tariff Cancellation: Terminate Negotiated Rate Service
Agreement--Range Resources Appalachia LLC to be effective 2/1/2017.
    Filed Date: 1/31/17.
    Accession Number: 20170131-5484.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-350-001.
    Applicants: Eastern Shore Natural Gas Company.
    Description: Compliance filing Errata to Filing to Comply with
Order in Docket Nos. CP15-18-000, 001 to be effective 3/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5137.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-383-000.
    Applicants: Northern Natural Gas Company.
    Description: Sec.  4(d) Rate Filing: 20170201 Miscellaneous Filing
to be effective 3/4/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5104.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-384-000.
    Applicants: Natural Gas Pipeline Company of America.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Filing--Nicor
to be effective 2/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5128.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-385-000.
    Applicants: Northern Natural Gas Company.
    Description: Sec.  4(d) Rate Filing: 20170201 Annual PRA Fuel Rates
to be effective 4/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5148.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-386-000.
    Applicants: Enable Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Filing--
February 2017 Spire 1005896 to be effective 2/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5201.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-387-000.
    Applicants: Dauphin Island Gathering Partners.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Filing 2-1-
2017 to be effective 2/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5221.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-388-000.
    Applicants: Northern Border Pipeline Company.
    Description: Sec.  4(d) Rate Filing: James Valley Ethanol Neg Rate
Agmt Revision to be effective 2/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5235.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-389-000.
    Applicants: Cimarron River Pipeline, LLC.
    Description: Sec.  4(d) Rate Filing: Fuel Tracker 2017--Summer
Season Rates to be effective 4/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5254.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-390-000.
    Applicants: Questar Overthrust Pipeline, LLC.
    Description: Sec.  4(d) Rate Filing: Statement of Negotiated Rates
Version 7.0.0, Simplot Phosphates to be effective 3/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5259.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-391-000.
    Applicants: Cimarron River Pipeline, LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates 2017-02-01 to
be effective 2/1/2017.
    Filed Date: 2/1/17.
    Accession Number: 20170201-5264.
    Comments Due: 5 p.m. ET 2/13/17.

    Docket Numbers: RP17-395-000.
    Applicants: Equitrans, L.P.
    Description: Sec.  4(d) Rate Filing: Negotiated Capacity Release
Agreements 2/8/17 to be effective 2/8/2017.
    Filed Date: 2/8/17.
    Accession Number: 20170208-5027.
    Comments Due: 5 p.m. ET 2/21/17.

    Docket Numbers: RP17-396-000.
    Applicants: Equitrans, L.P.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Service
Agreement--EQT Energy LPS to be effective 4/1/2017.
    Filed Date: 2/10/17.
    Accession Number: 20170210-5003.
    Comments Due: 5 p.m. ET 2/22/17.

    Docket Numbers: RP17-397-000.
    Applicants: Dominion Transmission, Inc.
    Description: Sec.  4(d) Rate Filing: DTI--February 10, 2017
Nonconforming Service Agreement to be effective 4/1/2017.
    Filed Date: 2/10/17.
    Accession Number: 20170210-5039.
    Comments Due: 5 p.m. ET 2/22/17.

    Docket Numbers: RP17-398-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Sec.  4(d) Rate Filing: 02/10/17 Negotiated Rates--
Consolidated Edison Energy Inc. (HUB) 2275-89 to be effective 2/9/2017.
    Filed Date: 2/10/17.
    Accession Number: 20170210-5139.
    Comments Due: 5 p.m. ET 2/22/17.

    Docket Numbers: RP17-313-001.
    Applicants: Texas Eastern Transmission, LP.
    Description: Compliance filing EQT 910900-RP17.-313 Compliance
Filing to be effective 1/1/2017.
    Filed Date: 2/13/17.
    Accession Number: 20170213-5191.
    Comments Due: 5 p.m. ET 2/27/17.

    Docket Numbers: RP17-399-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Sec.  4(d) Rate Filing: 02/13/17 Negotiated Rates--
Mercuria Energy America, Inc. (HUB) 7540-89 to be effective 2/12/2017.
    Filed Date: 2/13/17.
    Accession Number: 20170213-5198.
    Comments Due: 5 p.m. ET 2/27/17.

    Docket Numbers: RP17-400-000.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agmts--Core to
be effective 2/1/2017.
    Filed Date: 2/13/17.
    Accession Number: 20170213-5258.
    Comments Due: 5 p.m. ET 2/27/17.

    Docket Numbers: RP17-401-000.
    Applicants: Rockies Express Pipeline LLC.
    Description: Sec.  4(d) Rate Filing: FL&U Electric Power Periodic
Rate Adjustment 2017 to be effective 4/1/2017.
    Filed Date: 2/13/17.
    Accession Number: 20170213-5261.
    Comments Due: 5 p.m. ET 2/27/17.

    Docket Numbers: RP17-402-000.
    Applicants: Northern Natural Gas Company.
    Description: Northern Natural Gas submits report of the penalty and
daily delivery variance charge (DDVC) revenues that have been credited
to shippers under RP17-402.
    Filed Date: 2/13/17.
    Accession Number: 20170213-5333.
    Comments Due: 5 p.m. ET 2/27/17.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

     Dated: February 14, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-03350 Filed 2-17-17; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 21 (Tuesday, February 1, 2011)]
[Notices]
[Pages 5646-5647]
[FR Doc No: 2011-2122]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63773; File No. SR-NYSEAmex-2010-109]

Self-Regulatory Organizations; NYSE Amex LLC; Order Granting
Approval of Proposed Rule Change Regarding the Listing of Options
Series With $1 Strike Prices

January 25, 2011.

I. Introduction

    On November 24, 2010, NYSE Amex LLC (``NYSE Amex'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
allow the Exchange to modify the operation of the $1 Strike Price
Program. The proposed rule change was published for comment in the
Federal Register on December 14, 2010.\3\ The Commission received no
comment letters on the proposal. This order approves the proposed rule
change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 63463 (December 8,
2010), 75 FR 77923 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal

    NYSE Amex has proposed to amend Rule 903 Commentary .06 to modify
the operation of the $1 Strike Price Program.
    Currently, the $1 Strike Price Program allows the listing of new
series with strikes at $1 intervals only if such series have strike
prices within $5 of the previous day's closing price in the primary
listing market.\4\ The proposal would allow the Exchange also to: (a)
List new series with $1 interval strike prices within $5 of the
official opening price in the primary listing market, and (b) add $1
interval strike prices between the closing price and the opening price,
regardless of whether such strikes are within $5 of the previous day's
closing price or the day's opening price.
---------------------------------------------------------------------------

    \4\ Rule 903 Commentary .06(b).
---------------------------------------------------------------------------

    In support of allowing the listing of $1 interval strike between
the closing and opening prices, the Exchange stated that, on occasion,
the price movement in an underlying security has been so great that
listing series with strikes within $5 of the previous day's closing
price and the day's opening price would leave a gap in the continuity
of strike prices. Thus, if an issue closes at $14 one day, and the next
day opens above $27, the $21 and $22 strikes would be more than $5 from
either benchmark. The Exchange proposed that any such discontinuity be
avoided by allowing the listing of options on all $1 interval strike
prices that fall between the previous day's closing price and the
opening price.
    The Exchange also has proposed to prohibit the listing of $2.50
interval strikes below $50 in all classes chosen for the $1 Strike
Price Program, and in all long-term option series. According to the
Exchange, this change is designed to eliminate discontinuities in
strike prices and a lack of parallel strikes in different expiration
months of the same issue. Currently, Exchange rules provide that the
Exchange may not list series within $1 strike price intervals within
$0.50 of an existing strike price in the same class, unless the class
in question has been selected to participate in the $0.50 Strike
Program.\5\ In addition, Exchange rules currently stipulate that the
Exchange may not list series with $1 strike price intervals for any
long-term options (i.e., options having greater than nine months to
expiration) under the $1 Strike Price Program.\6\
---------------------------------------------------------------------------

    \5\ See id.
    \6\ See id. The standard strike interval for Long-Term Equity
Option Series (LEAPs) is $2.50 where the strike price is $25 or
less. See Rule 903 Commentary .05. However, under a separate
provision of the rules, the Exchange may list series with $1 strike
prices up to $5 in LEAPS in up to 200 option classes on individual
stocks, provided the $1 intervals are not within $0.50 of an
existing series with a $2.50 strike price. See Rule 903 Commentary
.06(e). This provision would not change under the current proposal.
---------------------------------------------------------------------------

    However, as the Exchange noted in its proposal, due to the
prohibition on $1 strike price intervals within $0.50 of an existing
strike price, the existence of series with $2.50 interval strikes for
classes selected for the $1 Strike Price Program could lead to
discontinuities in strike prices and a lack of parallel strikes in
different expiration months of the same issue. For example, if a $12.50
strike series was open in a class selected for the $1 Strike Price
Program, the Exchange would not be able to list series with a $12 or
$13 strike, potentially resulting in sequence of strike prices at
irregular intervals (i.e., $10, $11, $12.50, $14, and $15).
    To replace these now-forbidden $2.50 interval strikes, the Exchange
proposes to allow the listing of one additional series within each
natural $5 interval, as follows. The Exchange proposed to permit the
listing of a series with a strike $2 above the $5-interval strike for
each such $5-interval strike above the price of the underlying security
at the time of listing. Conversely, the Exchange's proposal would
permit the listing of a series with a strike $2 below the $5-interval
strike for each such $5-interval strike below the price of the
underlying security at the time of listing. For example, if the
underlying security was trading at $19, the Exchange could list a $27
strike between the $25 and the $30 strikes, and a $32 strike between
the $30 and $35 strikes; as well as a $13 strike between the $10 and
$15 strikes, and an $8 strike between the $10 and $15 strikes. The
Exchange also notes that each such additional series may be listed only
if such listing is consistent with the Options Listing Procedures Plan
(``OLPP'') Provisions in Rule 903A.\7\ The foregoing provisions would
apply to all classes selected for the $1 Strike Price Program, both
with respect to standard and long-term options. In addition, since
series with $1-interval strikes are not permitted for most long-term
options, the proposal would allow the Exchange to list the long-term
strike that is $2 above the $5-interval just below the underlying price
at the time of listing. For example, if the underlying security is
trading at $21.25, this provision would allow the Exchange to add a $22
strike ($2 above the $20 strike) for the long-term option series.
---------------------------------------------------------------------------

    \7\ Rule 903A codifies the limitation on strike price ranges
outlined in the OLPP, which, except in limited circumstances,
prohibits options series with an exercise price more than 100% above
or below the price of the underlying security if that price is $20
or less. If the price of the underlying security is greater than
$20, an exchange may not list new options series with an exercise
price more than 50% above or below the price of the underlying
security.
---------------------------------------------------------------------------

    In support of its proposal, the Exchange stated that the proposed
rule change seeks to reduce investor confusion resulting from
discontinuous strike prices that has arisen in the operation of the $1
Strike Price Program, by providing a consistent application of strike
price intervals for issues in the $1 Strike Price Program.
    The Exchange further represented that it has the necessary systems
capacity to support the potential increase in new options series that
will result from the proposed changes to the $1 Strike Price Program.

III. Discussion

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\8\
Specifically, the Commission finds that the proposal is consistent with
Section 6(b)(5) of the Act,\9\ which requires, among other things, that
the rules of a national securities exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and practices, 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.
---------------------------------------------------------------------------

    \8\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As the Exchange notes, the proposal is intended to reduce investor
confusion resulting from the operation of the $1 Strike Price Program
by reducing the occurrences of discontinuities in strike prices and
non-parallel strikes in different expiration months of the same issue.
The Commission believes that the proposal strikes a reasonable balance
between the Exchange's desire to accommodate market participants and
the need to avoid unnecessary proliferation of options series and the
corresponding increase in quotes and market fragmentation. The
Commission expects the Exchange to monitor the trading and quotation
volume associated with the additional options series listed as a result
of this proposal and the effect of these additional series on market
fragmentation and on the capacity of the Exchange's, OPRA's, and
vendors' automated systems.
    In approving this proposal, the Commission notes that Exchange has
represented that it has the necessary systems capacity to support the
potential increase in new options series that will result from the
proposed changes to the $1 Strike Price Program.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-NYSEAmex-2010-109) be, and
it hereby is, approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-2122 Filed 1-31-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 198 (Thursday, October 13, 2011)]
[Notices]
[Pages 63695-63696]
[FR Doc No: 2011-26385]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65496; File No. SR-BYX-2011-027]

Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Revenue Sharing Program With
Correlix and a Free Trial Period for New Users of the Correlix Service

October 6, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'' or the ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on September 30, 2011, BATS Y-Exchange,
Inc. (the ``Exchange'' or ``BYX'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II and III below, which Items have been prepared
by the 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 is proposing to establish a revenue sharing program
with Correlix, Inc. (``Correlix'') and a free trial period for new
subscribers to the Correlix service.
    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.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 parts of such
statements.

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

1. Purpose
    The purpose of the proposed rule change is to establish a revenue
sharing program with Correlix. The Exchange has entered into an
agreement with Correlix to provide to Users \3\ of the Exchange real-
time analytical tools to measure the latency of orders to and from the
Exchange's system as well as the latency of market data updates
transmitted from the Exchange systems to the User. Under the agreement,
the Exchange will receive 30% of the total monthly subscription fees
received by Correlix from parties who have contracted directly with
Correlix to use their RaceTeam latency measurement service for the
Exchange. The Exchange will not bill or contract with any Correlix
RaceTeam customer directly.
---------------------------------------------------------------------------

    \3\ A ``User'' is defined in BYX Rule 1.5(cc) as any member or
sponsored participant of the Exchange who is authorized to obtain
access to the System.
---------------------------------------------------------------------------

    Pricing for the Correlix RaceTeam product for Users of the Exchange
will be based on the number of ports requested by the User for
monitoring by Correlix; each ``port'' is a FIX or binary order entry
(``BOE'') protocol connection to the Exchange. The fee for Users of the
Exchange will be an initial $1,500 monthly fee for the first 25 ports
requested by the User for latency monitoring, and an additional $1,000
per month for each additional 25 ports (or portion thereof).
    Under the program, the Correlix data collector \4\ will see an
individualized unique identifier that will allow Correlix RaceTeam to
determine round trip order time,\5\ from the time the order reaches the
Exchange, through the Exchange matching engine, and back out of the
Exchange. The RaceTeam product offering does not measure latency
outside of the Exchange. The unique identifier serves as a
technological information barrier so that the Correlix data collector
will only be able to view data for Correlix RaceTeam subscribers
related to latency. The Correlix data collector will not see
subscriber's individual order detail such as security, price or size.
Individual RaceTeam subscribers' logins will restrict access to only
their own latency data. The Correlix data collector will see

no specific information regarding the trading activity of non-
subscribers. The Exchange believes that the above arrangement will
provide Users of the Exchange with greater transparency into the
processing of their trading activity and allow them to make more
efficient trading decisions.
---------------------------------------------------------------------------

    \4\ The Correlix data collector is a Correlix process that
receives information from the Exchange that is subsequently taken
into Correlix's systems for latency monitoring purposes.
    \5\ The product measures latency of orders whether the orders
are rejected, executed, or partially executed.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to establish a flexible 60-day
free trial so parties will be eligible for one free 60-day trial period
of Correlix services whenever they initially elect to sign-up for the
service, now or in the future. The Exchange is proposing the flexible
trial to ensure that all Correlix subscribers have an equal opportunity
to take advantage of an initial free trial period.
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 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. The Exchange believes the
proposed rule will provide greater transparency into trade and
information processing and thus allow market participants to make
better-informed and more efficient trading decisions.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In addition, the Exchange believes that the proposed rule change is
consistent with the provisions of Section 6 of the Act,\8\ in general,
and with Section 6(b)(4) of the Act,\9\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system that the Exchange operates or controls. In
particular, the Exchange notes that it operates in a highly competitive
market in which market participants can readily direct orders to
competing venues and that use of the Correlix RaceTeam product is
completely voluntary. Further, the Exchange will make the RaceTeam
product uniformly available pursuant to a standard non-discriminatory
pricing schedule offered by Correlix and will offer the free trial
period on a uniform and non-discriminatory basis.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change imposes
any burden on competition.

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

    The Exchange has neither solicited nor received written 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) of the Act \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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-BYX-2011-027 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-BYX-2011-027. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BYX-2011-027 and should be
submitted on or before November 3, 2011.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26385 Filed 10-12-11; 8:45 am]
BILLING CODE 8011-01-P


21668 Federal Register / Vol. 67, No. 84 / Wednesday, May 1, 2002 / Notices Williston Basin Interstate Pipeline Company Wisconsin Electric Power Company and Wisconsin Gas Company Wisconsin Public Service Corporation and The Upper Peninsula Power Company [FR Doc. 02– 10746 Filed 4– 30– 02; 8: 45 am]

BILLING CODE 6717– 01– P ENVIRONMENTAL PROTECTION AGENCY [FRL– 7204– 4]

Agency Information Collection Activities: Proposed Collection; Comment Request. Criteria for Classification of Solid Waste Disposal Facilities and Practices, Recordkeeping and Reporting Requirements (Renewal)

AGENCY: Environmental Protection Agency (EPA). ACTION: Notice.

SUMMARY: In compliance with the Paperwork Reduction Act (44 U. S. C. 3501 et seq.), this document announces that EPA is planning to submit the following continuing Information Collection Request (ICR) to the Office of Management and Budget (OMB): Criteria for Classification of Solid Waste Disposal Facilities and Practices, Recordkeeping and Reporting Requirements, ICR #1745.03, OMB No. 2050– 0154, current expiration date is September 30, 1999. Before submitting the ICR to OMB for review and approval, EPA is soliciting comments on specific aspects of the proposed information collection described below. DATES: Comments must be submitted on or before July 1, 2002. ADDRESSES: Commentors must send an original and two copies of their comments referencing docket number F– 2002– DF2P– FFFFF to: (1) If using regular US Postal Service mail: RCRA Docket Information Center, Office of Solid Waste (5305G), U. S. Environmental Protection Agency Headquarters (EPA, HQ), Ariel Rios Building, 1200 Pennsylvania Avenue, NW, Washington, DC 20460– 0002, or if using special delivery, such as overnight express service: RCRA Docket Information Center (RIC), Crystal Gateway One, 1235 Jefferson Davis Highway, First Floor, Arlington, VA 22202. Commentors are encouraged to submit their comments electronically through the Internet to: rcradocket epa. gov. Comments in electronic format should also be identified by the docket number F– 2002– DF2P– FFFFF. All electronic comments must be submitted as an ASCII file avoiding the use of special characters and any form of encryption. Commentors should not submit electronically any confidential business information (CBI). An original and two copies of CBI must be submitted under separate cover to: RCRA CBI Document Control Officer, Office of Solid Waste (5305W), U. S. EPA, Ariel Rios Building, 1200 Pennsylvania Avenue, NW, Washington, DC 20460– 0002. Public comments and supporting materials are available for viewing in the RCRA Information Center (RIC), located at Crystal Gateway I, First Floor, 1235 Jefferson Davis Highway, Arlington, VA. The RIC is open from 9 a. m. to 4 p. m., Monday through Friday, excluding Federal holidays. To review docket materials, it is recommended that the public make an appointment by calling 703– 603– 9230. The public may copy a maximum of 100 pages from any regulatory docket at no charge. Additional copies cost $0.15 per page. The index and the supporting material is available electronically. The ICR is available on the Internet at http:// www. epa. gov/ epaoswer/ hazwaste/ sqg/ index. htm. The official record for this action will be kept in paper form. Accordingly, EPA will transfer all comments received electronically into paper form and place them in the official record, which will also include all comments submitted directly in writing. EPA responses to comments, whether the comments are written or electronic, will be in a notice in the Federal Register. EPA will not immediately reply to commentors electronically other than to seek clarification of electronic comments that may be garbled in transmission or during conversion to paper form, as discussed above. FOR FURTHER INFORMATION CONTACT: For general information, contact the RCRA Hotline at 800 424– 9346 or TDD 800 553– 7672 (hearing impaired). In the Washington, DC, metropolitan area, call 703 412– 9810 or TDD 703 412– 3323. For more detailed information on specific aspects of this rulemaking contact Paul Cassidy, EPA, Office of Solid Waste (5306W), Industrial & Extractive Waste Branch, Ariel Rios Building, 1200 Pennsylvania Avenue, NW, Washington, DC 20460, phone 703 308– 7281, e mail address: cassidy. paul@ epa. gov.

SUPPLEMENTARY INFORMATION: Affected entities: EPA assumes that industrial waste units that previously co disposed non hazardous wastes and conditionally exempt small quantity generator (CESQG) hazardous waste onsite have ceased that practice and that commercial off site industrial waste units are operating with stringent environmental controls in place. Therefore, entities that potentially will be affected by this action are limited to those that dispose of CESQG hazardous wastes in construction and demolition (C& D) waste landfills. Title: Criteria for Classification of Solid Waste Disposal Facilities and Practices, Recordkeeping and Reporting requirements— 40 CFR Part 257 Subpart B. OMB No.: 2050– 0154. EPA ICR No.: 1745.03. Current expiration date: September 30, 1999. Abstract: In order to effectively implement and enforce final changes to 40 CFR Part 257— Subpart B on a State level, owners/ operators of construction and demolition waste landfills that receive CESQG hazardous wastes will have to comply with the final reporting and recordkeeping requirements. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control number for EPA's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. This continuing ICR documents the recordkeeping and reporting burdens associated with the location and ground water monitoring provisions contained in 40 CFR Part 257— Subpart B. The EPA would like to solicit comments to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (ii) Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) Enhance the quality, utility, and the clarity of the information to be collected; and (iv) Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques of other forms of information technology, e. g., permitting electronic submission of responses. Burden Statement: The current annual burden to respondents for complying with the information collection requirements of Part 257— VerDate 11< MAY> 2000 23: 17 Apr 30, 2002 Jkt 197001 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 01MYN1. SGM pfrm01 PsN: 01MYN1 21669 Federal Register / Vol. 67, No. 84 / Wednesday, May 1, 2002 / Notices Subpart B Criteria is approximately 11,000 hours per year, with a current annual cost of $393,000. The current estimated number of respondents is 164 with a current average annual burden of approximately 67 hours per respondent. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information.

Dated: April 23, 2002. Matthew Hale, Acting Office Director, Office of Solid Waste. [FR Doc. 02– 10734 Filed 4– 30– 02; 8: 45 am]

BILLING CODE 6560– 50– P ENVIRONMENTAL PROTECTION AGENCY [OPP– 2002– 0023; FRL– 6834– 4]

Dimethoate Product Cancellation Order and Label Amendment; Technical Correction AGENCY: Environmental Protection Agency (EPA). ACTION: Notice; technical correction.

SUMMARY: EPA issued a cancellation order in the Federal Register of March 13, 2002 eliminating the residential uses for Dimethoate. This document is being issued to correct the existing stocks provisions of this cancellation order. DATES: The cancellations became effective March 13, 2002. FOR FURTHER INFORMATION CONTACT: By mail: Patrick Dobak, Special Review and Reregistration Division (7508C), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; telephone number: 703– 308– 8180; email address: dobak. pat@ epa. gov. SUPPLEMENTARY INFORMATION:

I. Does this Action Apply to Me? The Agency included in the cancellation order a list of those who may be potentially affected by this action. If you have questions regarding the applicability of this action to a particular entity, consult the person listed under FOR FURTHER INFORMATION CONTACT.

II. How Can I Get Additional Information, Including Copies of this Document and Other Related Documents?

1.Electronically. You may obtain electronic copies of this document, and certain other related documents that might be available electronically, from the EPA Internet Home Page at http:// www. epa. gov. To access this document, go to the Federal Register listings at http:// www. epa. gov/ fedrgstr. 2. In person. The Agency has established an official record for this action under docket control number OPP– 2002– 0023. The official record consists of the documents specifically referenced in this action, any public comments received during an applicable comment period, and other information related to this action, including any information claimed as Confidential Business Information (CBI). This official record includes the documents that are physically located in the docket, as well as the documents that are referenced in those documents. The public version of the official record does not include any information claimed as CBI. The public version of the official record, which includes printed, paper versions of any electronic comments submitted during an applicable comment period, is available for inspection in the Public Information and Records Integrity Branch (PIRIB), Rm. 119, Crystal Mall #2, 1921 Jefferson Davis Hwy., Arlington, VA, from 8: 30 a. m. to 4 p. m., Monday through Friday, excluding legal holidays. The PIRIB telephone number is (703) 305– 5805.

III. What Does this Technical Correction Do?

The cancellation order for uses of pesticide products containing Dimethoate on various commodities was published in the Federal Register on March 13, 2002 (67 FR 11330) (FRL– 6828– 1). The existing stocks language in Unit IV is not consistent with the proposed existing stocks provisions included in the January 10, 2002 proposed Cancellation Order. The following Unit IV replaces Unit IV of the Cancellation Order published on March 13, 2002. The replacement language is consistent with the language in the January 10, 2002 proposed cancellation order. No comments were received by the Agency. The revised existing stocks provisions are as follows: IV. Existing Stocks Provisions 1. Distribution or sale of products by the registrant bearing instructions for use on houseflies and non agricultural use sites. The distribution or sale of existing stocks by the registrant of any product listed in Table 1 or 2 that bears instructions for any use identified in List 1, will not be lawful under FIFRA 1 year after the effective date of the cancellation order, except for the purposes of shipping such stocks for export consistent with section 17 of FIFRA or for proper disposal. 2. Distribution, sale, or use of products by persons other than the registrant bearing instructions for use on houseflies and non agricultural use sites. Persons other than the registrant may continue to sell or distribute the existing stocks of any product listed in Table 1 or 2 that bears instructions for any of the uses identified in List 1 after the effective date of the cancellation order and may continue until such stocks are exhausted. The use of existing stocks by persons other than the registrant of any product listed in Table 1 or 2 that bears instructions for any uses identified in List 1 may continue until such stocks are exhausted.

List of Subjects Environmental protection, Pesticides, Use cancellation order.

Dated: April 23, 2002. Lois A. Rossi, Director, Special Review and Reregistration Division. [FR Doc. 02– 10735 Filed 4– 30– 02; 8: 45 am]

BILLING CODE 6560– 50– S ENVIRONMENTAL PROTECTION AGENCY [OPP– 2002– 0020; FRL– 6834– 3]

Pesticide Product; Registration Application; Extension of Comment Period AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

SUMMARY: This notice announces an extension of the comment period regarding receipt of an application to register a pesticide product containing a new active ingredient not included in any previously registered products pursuant to the provisions of section 3( c)( 4) of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), as amended.

DATES: Written comments, identified by the docket control number OPP– VerDate 11< MAY> 2000 23: 17 Apr 30, 2002 Jkt 197001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 E:\ FR\ FM\ 01MYN1. SGM pfrm01 PsN: 01MYN1