[Federal Register Volume 86, Number 201 (Thursday, October 21, 2021)]
[Notices]
[Pages 58335-58341]
[FR Doc No: 2021-22927]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93348; File No. SR-CBOE-2021-058]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule With Respect to Its Lead Market-Maker Incentive
Programs

October 15, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 7, 2021, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its Fees Schedule with respect to its Lead Market-Maker
(``LMM'') Incentive Programs. The text of the proposed rule change is
provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its Fees Schedule to amend the
Global Trading Hours (``GTH'') Cboe Volatility Index (``VIX'') options
and VIX Weekly (VIXW) options LMM Incentive Program and the GTH S&P 500
Index (``SPX'') options and SPX Weekly (``SPXW'') options LMM Incentive
Program.\3\
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    \3\ The Exchange initially filed the proposed fee changes on
September 30, 2021 (SR-CBOE-2021-056). On October 7, 2021, the
Exchange withdrew that filing and submitted this filing.
---------------------------------------------------------------------------

    Both LMM Incentive Programs provide a rebate to Trading Permit
Holders (``TPHs'') with LMM appointments to the respective incentive
program that meet certain quoting standards in the applicable series in
a month. The Exchange notes that meeting or exceeding the quoting
standards (both current and as proposed; described in further detail
below) in each of the LMM Incentive Program products to receive the
applicable rebate (both currently offered and as proposed; described in
further detail below) is optional for an LMM appointed to a program.
Rather, an LMM appointed to an incentive program is eligible to receive
the corresponding rebate if it satisfies the applicable quoting
standards, which the Exchange believes encourages the LMM to provide
liquidity in the applicable class and trading session (i.e., GTH). The
Exchange may consider other exceptions to the programs' quoting
standards based on demonstrated legal or regulatory requirements or
other mitigating circumstances. In calculating whether an LMM appointed
to an incentive program meets the applicable program's quoting
standards each month, the Exchange excludes from the calculation in
that month the business day in which the LMM missed meeting or
exceeding the quoting standards in the highest number of the applicable
series.
GTH VIX/VIXW LMM Program
    The Exchange first proposes to amend its GTH VIX/VIXW LMM Incentive
Program. Currently, the program provides that if an LMM in VIX/VIXW
provides continuous electronic quotes during GTH that meet or exceed
the heightened quoting standards (below) in at least 99% of each of the
VIX and VIXW series, 90% of the time in a given month, the LMM will
receive a rebate for that month in the amount of $15,000 for VIX and
$5,000 for VIXW (or pro-rated amount if an appointment begins after the
first trading day of the month or ends prior to the last trading day of
the month) for that month. Additionally, if the appointed LMM provides
continuous electronic quotes during GTH that meet or exceed the above
VIX heightened quoting standards in at least 99% of the VIX series, 90%
of the time in a given month, the LMM will receive a rebate for that
month of $0.03 per VIX/VIXW contract executed in its Market-Maker
capacity during RTH.

------------------------------------------------------------------------
                                                              Maximum
                      Premium level                          allowable
                                                               width
------------------------------------------------------------------------
VIXW:
    $0.00-$100.00.......................................          $10.00
    $100.01-$200.00.....................................           16.00
    Greater than $200.000...............................           24.00
------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Expiring                  Near term                 Mid term                  Long term
                                                 -------------------------------------------------------------------------------------------------------
                  Premium level                        15 days or less         15 days to 60 days        61 days to 270 days       271 days or greater
                                                 -------------------------------------------------------------------------------------------------------
                                                     Width         Size        Width         Size        Width         Size        Width         Size
--------------------------------------------------------------------------------------------------------------------------------------------------------
VIX:
    $0.00-$1.00.................................        $0.75           25        $0.50           50        $0.50           50        $1.00           10
    $1.01-$3.00.................................         1.00           15         0.75           25         0.75           25         1.00           10
    $3.01-$5.00.................................         1.00           15         0.75           25         0.75           25         1.20            7
    $5.01-$10.00................................         1.50           10         1.00           10         1.00           10         2.00            5
    $10.01-$30.00...............................         2.50            5         1.50            5         2.50            5         4.00            3
    Greater than $30.00.........................         5.00            3         3.00            5         5.00            3         7.00            2
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Exchange proposes to restructure the GTH VIX/VIXW LMM Incentive
Program by adopting a two sets of quoting standards for VIX options; a
set of basic quoting standards and a set of heightened quoting
standards. The Exchange notes that the current quoting standards for
VIXW will remain the same but will be considered basic quoting
standards for VIXW. As proposed, the program provides that, if the
appointed LMM provides continuous electronic quotes during GTH that
meet or exceed the basic quoting standards in the same percentage of
series in the same percentage of time (i.e., 99% of each VIX/VIXW
series, 90% of the time per month), the LMM will receive the same
rebate ($15,000 for VIX and $5,000 for VIXW) for that month. The new
basic quoting standards proposed for VIX options are as follows in the
table below:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Expiring                  Near term                 Mid term                  Long term
                                                 -------------------------------------------------------------------------------------------------------
                  Premium level                       Less than 15 days        15 days to 60 days        61 days to 180 days       181 days or greater
                                                 -------------------------------------------------------------------------------------------------------
                                                     Width         Size        Width         Size        Width         Size        Width         Size
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              VIX Value at Prior Close <18
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$0.00-$1.00.....................................        $0.35           50        $0.25           75        $0.35           50        $0.80           10
$1.01-$3.00.....................................         0.50           30         0.35           50         0.50           30         0.90           10
$3.01-$5.00.....................................         0.60           25         0.35           25         0.60           20         1.00           10
$5.01-$10.00....................................         1.00           10         0.80           20         1.30           10         2.00            5
$10.01-$30.00...................................         2.00            5         1.50            5         2.00            5         3.00            3
Greater than $30.00.............................         5.00            3         3.00            3         5.00            3         5.00            3
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           VIX Value at Prior Close from 18-25
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$0.00-$1.00.....................................        $0.50           25        $0.35           50        $0.50           40        $1.00           10
$1.01-$3.00.....................................         0.50           20         0.50           30         0.70           20         1.00           10
$3.01-$5.00.....................................         0.80           20         0.50           20         0.80           10         1.30            5
$5.01-$10.00....................................         1.50           10         1.00           10         2.00            5         2.20            5
$10.01-$30.00...................................         3.00            1         2.50            1         3.00            1         5.00            1
Greater than $30.00.............................         5.00            1         5.00            1         5.00            1        10.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       VIX Value at Prior Close from 25
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$1.00.....................................         0.80           15         0.50           20         0.60           20         1.20           10
$1.01-$3.00.....................................         1.00           10         0.75           20         1.00           10         1.20           10
$3.01-$5.00.....................................         1.20           10         0.90           10         1.20            5         1.80            5
$5.01-$10.00....................................         2.00            5         1.50            5         2.50            5         3.00            3
$10.01-$30.00...................................         5.00            1         5.00            1         5.00            1         7.00            1
Greater than $30.00.............................        10.00            1        10.00            1        10.00            1        10.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Additionally, if the appointed LMM provides continuous electronic
quotes during GTH that meet or exceed the new VIX heighted quoting
standards (as proposed below) in the same percentage of VIX series
(99%) for the same percentage of time (90%) of the time in a given
month, the LMM will receive the same rebate currently offered ($0.03)
for that month per VIX/VIXW contract executed in its Market-Maker
capacity during Regular Trading Hours.

----------------------------------------------------------------------------------------------------------------
                                                             Expiring                        Near term
                                                 ---------------------------------------------------------------
                  Premium level                          Less than 15 days              15 days to 60 days
                                                 ---------------------------------------------------------------
                                                       Width           Size            Width           Size
----------------------------------------------------------------------------------------------------------------
                                          VIX Value at Prior Close <18
----------------------------------------------------------------------------------------------------------------
$0.00-$1.00.....................................           $0.20             100           $0.20             100
$1.01-$3.00.....................................  ..............  ..............            0.25              50
$3.01-$5.00.....................................  ..............  ..............            0.35              25
----------------------------------------------------------------------------------------------------------------
                                       VIX Value at Prior Close from 18-25
----------------------------------------------------------------------------------------------------------------
$0.00-$1.00.....................................            0.25              50            0.20              50
$1.01-$3.00.....................................  ..............  ..............            0.30              30
$3.01-$5.00.....................................  ..............  ..............            0.40              30
----------------------------------------------------------------------------------------------------------------
                                   VIX Value at Prior Close from 25
----------------------------------------------------------------------------------------------------------------
$0.00-$1.00.....................................            0.30              30            0.25              30
$1.01-$3.00.....................................  ..............  ..............            0.40              20
$3.01-$5.00.....................................  ..............  ..............            0.60              20
----------------------------------------------------------------------------------------------------------------

    The Exchange believes the proposed basic and heightened quoting
requirements for VIX options under the GTH VIX/VIXW LMM Incentive
Program are designed to continue to encourage LMMs appointed to the
program to provide significant liquidity in VIX options during GTH.
Particularly, by adopting different sets of quoting standards that are
applicable depending on the VIX Index value at the prior close (i.e.,
at the close of the preceding RTH session) the proposed rule change
will encourage LMMs appointed to the program to meet the quoting
standards by making it easier for them to satisfy such standards.
Spreads in VIX options generally widen when the VIX experiences higher
volatility (i.e., is higher in value). As a result, the Exchange
understands that, when the VIX Index experiences higher volatility,
LMMs appointed to the program find it increasingly challenging to meet
the program's current quoting standards. Therefore, to better enable
and encourage LMMs to meet the quoting standards, the proposed rule
change adopts generally wider widths and smaller quote sizes where the
VIX Index may be experiencing higher volatility (i.e., as the value of
the VIX in the proposed VIX value categories becomes relatively higher
based on the closing index value from the preceding trading session).
The proposed rule change also adopts generally tighter widths and
larger quote sizes in the expiration categories that are nearer in term
and gradually widens the widths and reduces the quote sizes as the
expiration categories become longer in term. The Exchange believes the
proposed rule change provides a balance between providing more
challenging opportunities, thus greater quoting incentive, in the
expiration categories that are nearer in term and easing the width and
size requirements as the expiration categories become longer in term,
wherein the Exchange understands that demand and participation becomes
less significant and thus more difficult for LMMs to quote within
tighter widths and larger sizes. Also, by providing a set of heightened
quoting standards that provide for tighter width and large size
standards than the set of basic quoting standards, the proposed rule
change offers LMMs appointed to the program a more challenging
opportunity, thus further incentive, to strive to meet the heightened
quoting standards in order to receive the additional rebate on their
VIX/VIXW orders in RTH.
    In addition to this, the Exchange proposes to update the time to
expiration in the mid-term expiration category for the VIX basic
quoting standards (as proposed) from a range of 61 to 270 days to a
range of 61 to 180 days, and in the long-term expiration category from
271 days or greater to 181 days or greater. The Exchange notes that it
has recently begun listing more VIX options that expire more than 180
days out and that the Exchange understands that it is more difficult
for LMMs to meet the narrower pricing standards current under the
current mid-term expiration category for VIX options that expire in 181
days or more. As such, the Exchange wishes to align the long-term
expiration category in a manner that makes it easier for LMMs to
achieve the quoting standards thereunder, particularly as the Exchange
has increased the number of VIX options listed that expire more than
180 days out.
GTH SPX/SPXW LMM Program
    The Exchange proposes to amend the GTH SPX/SPXW LMM Incentive
Program. Currently, under the GTH SPX/SPXW LMM Incentive Program, if an
LMM in SPX/SPXW provides continuous electronic quotes during GTH that
meet or exceed the heightened quoting standards (below) in at least 85%
of each of the SPX and SPXW series, 90% of the time in a given month,
the LMM will receive a rebate for that month in the amount of $20,000
for SPX and $30,000 for SPXW (or pro-rated amount if an appointment
begins after the first trading day of the month or ends prior to the
last trading day of the month) for that month.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Expiring                  Near term                 Mid term                  Long term
                                                 -------------------------------------------------------------------------------------------------------
                  Premium level                        7 days or less           8 days to 60 days        61 days to 270 days       271 days or greater
                                                 -------------------------------------------------------------------------------------------------------
                                                     Width         Size        Width         Size        Width         Size        Width         Size
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$5.00.....................................        $0.50           10        $0.40           25        $0.60           15        $1.00           10
$5.01-$15.00....................................         2.00            7         1.60           18         2.40           11         4.00            7
$15.01-$50.00...................................         5.00            5         4.00           13         6.00            8        10.00            5
$50.01-$100.00..................................        10.00            3         8.00            8        12.00            5        20.00            3
$100.01-$200.00.................................        20.00            2        16.00            5        24.00            3        40.00            2
Greater than $200.00............................        30.00            1        24.00            3        36.00            1        60.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Exchange proposes to adopt a new set of heightened quoting
standards (below) under the GTH SPX/SPXW LMM Incentive Program, similar
to the proposed new basic quoting standards under the GTH VIX/VIXW LMM
Incentive Program, as described above.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Expiring                  Near term                 Mid term                  Long term
                                                 -------------------------------------------------------------------------------------------------------
                  Premium level                        7 days or less           8 days to 60 days        61 days to 270 days      271 days to 500 days
                                                 -------------------------------------------------------------------------------------------------------
                                                     Width         Size        Width         Size        Width         Size        Width         Size
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              VIX Value at Prior Close <20
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$5.00.....................................        $0.35           25        $0.40           15        $0.60            5        $1.20            5
$5.01-$15.00....................................         0.60           20         0.60           20         1.50           10         2.00            5
$15.01-$50.00...................................         1.20           15         2.00           15         2.00           10         4.00            5
$50.01-$100.00..................................         6.00           10         4.00           10         3.00           10         5.00            5
$100.01-$200.00.................................        15.00            1         5.00            5         4.00            5         6.00            5
Greater than $200.00............................        20.00            1         8.00            1        12.00            1        50.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                           VIX Value at Prior Close from 20-30
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$5.00.....................................         0.60           15         0.80           10         0.75            5         2.00            5
$5.01-$15.00....................................         1.00           15         1.00           15         2.20            5         3.00            5
$15.01-$50.00...................................         2.50           10         3.50           10          3.0            5         5.00            5
$50.01-$100.00..................................        10.00           10         7.00           10         3.50            5         7.00            5
$100.01-$200.00.................................        18.00            1         8.00            5         6.00            5        10.00            5
Greater than $200.00............................        25.00            1        12.00            1   2.00 [sic]            1        60.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         VIX Value at Prior Close 30
--------------------------------------------------------------------------------------------------------------------------------------------------------
$0.00-$5.00.....................................         0.90           10         1.00           10         1.00            5         3.00            5
$5.01-$15.00....................................         2.50           10         2.50           10         3.00            5         4.00            5
$15.01-$50.00...................................         4.00           10         5.00           10         5.00            5         8.00            5
$50.01-$100.00..................................        12.00            5        10.00            5         4.50            3        10.00            1
$100.01-$200.00.................................        20.00            1        12.00            5        15.00            1        18.00            1
Greater than $200.00............................        30.00            1        25.00            1        30.00            1        70.00            1
--------------------------------------------------------------------------------------------------------------------------------------------------------

    For the same reasons described above regarding the new quoting
standards for the GTH VIX/VIXW the LMM Incentive Program, the Exchange
believes that, by adopting generally wider widths and smaller quote
sizes as the value of the VIX in the proposed VIX value categories
becomes relatively higher based on the closing VIX Index value from the
preceding trading session, the proposed rule change is designed to
better reflect market characteristics in SPX and SPXW options where the
VIX Index may be experiencing higher volatility (i.e., in the proposed
categories in which the value of the VIX is relatively higher based on
the closing VIX Index value from the preceding trading session), and
thus encourage LMMs appointed to the program to meet the quoting
standards by making it easier for them to satisfy such standards. The
Exchange also believes that by adopting generally tighter widths and
larger quote sizes in the expiration categories that are nearer in term
and gradually widening the widths and reducing the quote sizes as the
expiration categories become longer in term, the proposed rule change
provides more challenging opportunities, thus greater quoting
incentive, in the expiration categories that are nearer in term while
easing the width and size requirements as the expiration categories
become longer in term, wherein the Exchange understands that demand and
participation becomes less significant and thus more difficult for LMMs
to quote within tighter widths and larger sizes.
    In addition to this, the Exchange proposes to update the time to
expiration in the long-term expiration category from 271 days or
greater to a range of 271 days to 500 days. The Exchange notes that it
has recently begun listing more SPX/SPXW options with expirations
greater than 271 days. The Exchange understands that it is difficult
for LMMs to price options that generally expire more than 500 days out;
therefore, the Exchange wishes to narrow the long-term expiration
category in a manner that makes it easier for LMMs to achieve the
quoting standards thereunder, particularly as the Exchange has
increased the number of options listed within this expiry category.
    The Exchange also proposes to update the rebate amount received for
meeting the heightened quoting standards, as proposed, in a given month
in SPX, by slightly decreasing the rebate amount from $20,000 to
$15,000 and in SPXW, by slightly increasing the rebate amount from
$30,000 to $35,000. The Exchange has observed a recent increase in
demand in SPWX options and therefore wishes to further incentive LMM
appointed to the program to provide significant liquidity in SPXW
options by meeting the heightened quoting standards, while continuing
to allocate the same total rebate amount ($50,000) across SPX and SPXW.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\6\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Regarding both the GTH SPX/SPXW and VIX/VIXW LMM Incentive Programs
generally, the Exchange believes it is reasonable, equitable and not
unfairly discriminatory to continue to offer these financial
incentives, including as amended, to LMMs appointed to the programs,
because it benefits all market participants trading in the
corresponding products during GTH. These incentive programs encourage
the LMMs appointed to such programs to satisfy the heightened quoting
standards, which may increase liquidity and provide more trading
opportunities and tighter spreads. Indeed, the Exchange notes that
these LMMs serve a crucial role in providing quotes and the opportunity
for market participants to trade VIX/VIXW and SPX/SPXW options, as
applicable, which can lead to increased volume, providing for robust
markets. The

Exchange ultimately offers the LMM Incentive Programs, as amended, to
sufficiently incentivize LMMs appointed to each incentive program to
provide key liquidity and active markets in the corresponding program
products during the corresponding trading sessions, and believes that
these incentive programs, as amended, will continue to encourage
increased quoting to add liquidity in each of the corresponding program
products, thereby protecting investors and the public interest. The
Exchange also notes that an LMM appointed to an incentive program may
undertake added costs each month to satisfy that heightened quoting
standards (e.g., having to purchase additional logical connectivity).
    The Exchange believes that the proposed changes to the LMM
Incentive Programs are reasonable. Particularly, the Exchange believes
that it is reasonable to adopt new quoting requirements in the GTH VIX/
VIXW and SPX/SPXW LMM Incentive Programs, as these proposed new quoting
requirements are reasonably designed to continue to encourage LMMs
appointed to the respective incentive programs to provide significant
liquidity in VIX options and SPX/SPXW options during GTH. In
particular, the Exchange believes that it is reasonable to adopt new
widths and sizes in the quoting standards under the GTH VIX/VIXW and
SPX/SPXW LMM Incentive Programs, as applicable, as the proposed rule
change is generally designed to further align the quote widths and size
standards for VIX options and SPX/SPXW options with the market
characteristics in each applicable class. As such, the Exchange
believes the new quote widths and size are reasonably designed to
facilitate LMMs appointed to the GTH VIX/VIXW and SPX/SPXW LMM
Incentive Programs in meeting the heightened quoting standards (in
order to receive the rebate offered under the respective incentive
program) by increasing their quoting activity and posting tighter
spreads and more aggressive quotes in VIX options and SPX/SPXW options,
as applicable. An increase in quoting activity and tighter quotes tends
to signal additional corresponding increase in order flow from other
market participants, which benefits all investors by deepening the
Exchange's liquidity pool, potentially providing even greater execution
incentives and opportunities, offering additional flexibility for all
investors to enjoy cost savings, supporting the quality of price
discovery, promoting market transparency and improving investor
protection.
    The Exchange believes that by adopting different sets of quoting
standards that are applicable depending on the VIX Index value at the
prior close (i.e., at the close of the preceding RTH session) the
proposed rule change will encourage LMMs appointed to the program to
meet the quoting standards by making it easier for them to satisfy such
standards. In particular, the Exchange believes that the proposed rule
change to adopt generally wider widths and smaller quote sizes as the
value of the VIX in the proposed VIX value categories becomes
relatively higher based on the closing VIX Index value from the
preceding trading session is reasonably designed to better reflect
market characteristics in VIX options and SPX/SPXW options where the
VIX Index may be experiencing higher volatility (based on the closing
VIX Index value from the preceding trading session), and thus encourage
LMMs appointed to the programs to meet the quoting standards by making
it easier for them to satisfy such standards.
    Additionally, and as described above, the Exchange believes that
the proposed rule change to adopt generally tighter widths and larger
quote sizes for VIX options and SPX/SPXW options in the expiration
categories that are nearer in term and widen the widths and reduce the
quote sizes as the expiration categories become longer in term is
reasonably designed to provide more challenging opportunities, thus
greater quoting incentive, in the expiration categories that are nearer
in term while easing the width and size requirements as the expiration
categories become longer in term. In addition to this, the Exchange
believes that by providing a set of heightened quoting standards for
VIX options that provide for tighter width and large size standards
than the proposed set of basic quoting standards for VIX options, the
proposed rule change offers LMMs appointed to the GTH VIX/VIXW LMM
Incentive Program a more challenging opportunity, thus further
incentive, to strive to meet the heightened quoting standards in VIX
options in order to receive the current additional rebate on their VIX/
VIXW orders in RTH. The Exchange also notes that the proposed basic
quoting standards for VIX options and proposed heightened quoting
standards for VIX and for SPX/SPXW options do not represent a
significant departure from each of the program's current quote width
and size standards and remain generally aligned with the current range
of widths and sizes; they are merely being tailored to better reflect
market characteristics in VIX options and in SPX/SPX options as they
each relate to volatility in the VIX Index. The Exchange further notes
that quote widths and sizes typical in VIX options differ from that in
SPX/SPXW options, therefore, the proposed heightened quoting
requirements reflect quote widths and sizes that the Exchange believes
aligns with the market characteristics specific to each.
    In addition to this, the Exchange believes that it is reasonable to
amend the number of days to expiration that comprise certain expiry
categories in the GTH VIX/VIXW and SPX/SPXW LMM Incentive Programs as
these updates are reasonably designed to make it easier for the LMMs
appointed to the respective incentive programs to satisfy the
heightened quoting standards for options expiring a certain number of
days out, by better aligning the applicable category of heightened
quoting standards with the market characteristics and level of demand
for options that expire a certain number of days out.
    The Exchange believes that it is reasonable to amend the monthly
rebate amounts applicable to the GTH SPX/SPXW Incentive Program. The
Exchange believes that the proposed increased rebate amount (from
$30,000 to $35,000) for SPXW options is reasonably designed to continue
to incentivize an appointed LMM to meet the applicable quoting
standards for SPXW options, thereby providing liquid and active
markets, which facilitates tighter spreads, increased trading
opportunities, and overall enhanced market quality to the benefit of
all market participants. The Exchange also believes that it is
reasonable to shift the total rebate amount ($50,000) allocated across
SPX and SPXW options under the program by offsetting the slightly
increased rebate amount for SPXW ($35,000) options with a slightly
decreased rebated amount for SPX options ($15,000) because the Exchange
has observed a recent increase in demand in SPWX options and therefore
wishes to further incentive LMM appointed to the program to provide
significant liquidity in SPXW options by meeting the heightened quoting
standards, while continuing to allocate the same total rebate amount
across SPX and SPXW.
    The Exchange believes that the proposed changes to the LMM
Incentive Programs are equitable and not unfairly discriminatory. The
Exchange believes that it is equitable and not unfairly discriminatory
to adopt new quoting standards and to update the number of days to
expiration for certain expiry

categories in the GTH VIX/VIXW and SPX/SPXW LMM Incentive Programs
because such overall quoting standards and expiry categories will
equally apply to any and all TPHs with LMM appointments to the GTH VIX/
VIXW and SPX/SPXW LMM Incentive Programs, as applicable, that seek to
meet the programs' heightened quoting standards in order to receive the
rebate offered (both current and proposed, as applicable) under the
respective programs. The Exchange believes the proposed rebates
applicable to the GTH SPX/SPXW Incentive Program are equitable and not
unfairly discriminatory because they, too, will equally apply to any
TPH that is appointed as an LMM to the GTH SPX/SPXW LMM Incentive
Program. Additionally, if an LMM appointed to either the GTH SPX/SPXW
or the GTH VIX/VIXW LMM Incentive Programs does not satisfy the
corresponding heightened quoting standard for any given month, then it
simply will not receive the rebate offered by the respective program
for that month.

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 believes the proposed rule change does impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Particularly, the proposed
changes to existing LMM Incentive Programs will apply to all LMMs
appointed to the applicable program classes (i.e., VIX/VIXW and SPX/
SPXW) in a uniform manner. To the extent these LMMs appointed to an
incentive program receive a benefit that other market participants do
not, as stated, these LMMs in their role as Mark-Makers on the Exchange
have different obligations and are held to different standards. For
example, Market-Makers play a crucial role in providing active and
liquid markets in their appointed products, thereby providing a robust
market which benefits all market participants. Such Market-Makers also
have obligations and regulatory requirements that other participants do
not have. The Exchange also notes that an LMM appointed to an incentive
program may undertake added costs each month that it needs to satisfy
that heightened quoting standards (e.g., having to purchase additional
logical connectivity). The Exchange also notes that the incentive
programs are designed to attract additional order flow to the Exchange,
wherein greater liquidity benefits all market participants by providing
more trading opportunities, tighter spreads, and added market
transparency and price discovery, and signals to other market
participants to direct their order flow to those markets, thereby
contributing to robust levels of liquidity.
    The Exchange believes the proposed rule change does not impose any
burden on intermarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act as the LMM Incentive Programs
apply only to transactions in products exclusively listed on Cboe
Options. Additionally, as noted above, the incentive programs are
designed to attract additional order flow to the Exchange, wherein
greater liquidity benefits all market participants by providing more
trading opportunities, tighter spreads, and added market transparency
and price discovery, and signals to other market participants to direct
their order flow to those markets, thereby contributing to robust
levels of liquidity. The Exchange notes it operates in a highly
competitive market. In addition to Cboe Options, TPHs have numerous
alternative venues that they may participate on and director their
order flow, including 15 other options exchanges, as well as off-
exchange venues, where competitive products are available for trading.
Based on publicly available information, no single options exchange has
more than 16% of the market share of executed volume of options
trades.\7\ Therefore, no exchange possesses significant pricing power
in the execution of option order flow. Moreover, the Commission has
repeatedly expressed its preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. Specifically, in Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \8\ The fact that this market is competitive
has also long been recognized by the courts. In NetCoalition v.
Securities and Exchange Commission, the D.C. Circuit stated as follows:
``[n]o one disputes that competition for order flow is `fierce.' . . .
As the SEC explained, `[i]n the U.S. national market system, buyers and
sellers of securities, and the broker-dealers that act as their order-
routing agents, have a wide range of choices of where to route orders
for execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .''.\9\ Accordingly, the Exchange does not believe its
proposed changes to the incentive programs impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------

    \7\ See Cboe Global Markets, U.S. Options Market Volume Summary
by Month (September 22, 2021), available at http://markets.cboe.com/us/options/market_share/.
    \8\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \9\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
---------------------------------------------------------------------------

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

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

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and paragraph (f) of Rule 19b-4 \11\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please
include File Number SR-CBOE-2021-058 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2021-058. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2021-058 and should be submitted on
or before November 12, 2021.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-22927 Filed 10-20-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 201 (Monday, October 19, 2015)]
[Notices]
[Pages 63275-63276]
[FR Doc No: 2015-26400]

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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2013-0135; Notice 2]

General Motors, LLC, Denial of Petition for Decision of
Inconsequential Noncompliance

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).

ACTION: Denial of Petition.

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

SUMMARY: General Motors, LLC (GM) has determined that certain model
year (MY) 2013-2014 Chevrolet Express, GMC Savana, Chevrolet Silverado
HD and GMC Sierra HD compressed natural gas (CNG) multipurpose
passenger vehicles (MPVs) and trucks manufactured between May 20, 2012,
and September 25, 2013, do not comply with the lettering height
requirement in paragraph S5.3 of Federal Motor Vehicle Safety Standard
(FMVSS) FMVSS No. 303, Fuel System Integrity of Compressed Natural Gas
Vehicles. GM has filed an appropriate report dated November 25, 2013,
pursuant to 49 CFR part 573, Defect and Noncompliance Responsibility
and Reports.

ADDRESSES: For further information on this decision, contact Mr. Ed
Chan, Office of Vehicle Safety Compliance, at the National Highway
Traffic Safety Administration (NHTSA) by telephone at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    I. GM's Petition: Pursuant to 49 U.S.C. 30118(d) and 30120(h) (see
implementing rule at 49 CFR part 556), GM submitted a petition for an
exemption from the notification and remedy requirements of 49 U.S.C.
Chapter 301 on the basis that this noncompliance is inconsequential to
motor vehicle safety.
    The agency published a notice of receipt of the petition, with a
30-day public comment period, on March 11, 2014 in the Federal Register
(79 FR 13735). No comments were received. To view the petition, and all
supporting documents log onto the Federal Docket Management System
(FDMS) Web site at: http://www.regulations.gov/. Then follow the online
search instructions to locate docket number ``NHTSA-2013-0135.''
    II. Vehicles Involved: Affected are approximately 2,247 MY 2013-
2014 Chevrolet Express, GMC Savana, Chevrolet Silverado HD and GMC
Sierra HD compressed natural gas (CNG) MPVs and trucks manufactured
between May 20, 2012, and September 25, 2013.
    III. Noncompliance: GM explains that the noncompliance is an error
on the vehicle CNG labels. Specifically, the lettering height on the
labels is 2.5 mm, instead of the minimum 4.76 mm, as required by
paragraph S5.3 of FMVSS No. 303.
    IV. Rule Text: Paragraph S5.3 of FMVSS No. 303 requires:
    S5.3 Each CNG vehicle shall be permanently labeled, near the
vehicle refueling connection, with the information specified in S5.3.1
and S5.3.2 of this section. The information shall be visible to a
person standing next to the vehicle during refueling, in English, and
in letters and numbers that are not less than 4.76 mm (\3/16\ inch)
high.
    S5.3.1 The statement: ``Service pressure __kPa (__psig).''
    S5.3.2 The statement ``See instructions on fuel container for
inspection and service life.''
    V. Summary of GM's Analyses: GM stated its belief that the subject
noncompliance is inconsequential to motor vehicle safety for the
following reasons:
    A. The information on the subject CNG labels is correct and
entirely legible.
    Paragraph S5.4 of FMVSS No. 303 requires that the information
required for the label also be included in the owner's manual using ``.
. . not less than 10 point type.'' The 2.5 mm lettering height on the
subject labels is 10 point type, i.e., the same lettering size as what
is specified for the owner's manual content. The 10 point type that is
legible for purposes of the owner's manual is also legible on the
labels installed at the CNG filler port.
    B. The subject CNG label is an ``information'' label, not a
``warning'' label.
    The subject label is not a ``warning'' label and does not warn the
user of a safety related risk or consequence. Even if the user does not
read the label information due to the font size, the user will not miss
information about a safety risk.
    C. The label font size does not create a risk of misfueling.
    Even if the user fails to read the information label due to the
reduced font size, there would be no adverse safety consequence. The
service pressure of the subject CNG tanks is 3,600 psi. There is no
risk of over-pressuring these tanks since CNG filling stations are
required to shutoff at 3,600 psi, per ANSI/IAS NGV 4.2-1999 CSA 12.52-
M99(R09). Accordingly, there is no risk of a fuel leak.
    Even if the shutoff function on a filling station were to
malfunction, all CNG tanks on the affected vehicles are equipped with
pressure-relief devices designed to deploy at 5,400 psi, which is below
the burst pressure of the tank itself.
    With regard to under-pressure (under-fill) potential, all affected
vehicles are equipped with a CNG fuel gauge in the instrument cluster
to inform the driver of the fuel level. While some drivers may estimate
the driving range associated with a full fill, most drivers typically
rely on fuel gauges, not anticipated range, to determine when to
refuel. Some CNG filling stations, primarily in Canada, are designed to
shutoff at 3,000 psi, which is below the 3,600 psi service pressure of
the affected CNG tanks. However, regardless of whether the CNG tanks on
the affected vehicles start out full (3,600 psi) or 83% full (3,000
psi), the driver has ample opportunity to monitor the fuel gauge and
refuel prior to the CNG being depleted. Additionally, the owner manual
instructs that ``the fuel gauge has been calibrated to display full at
approximately 24,800 kPa (3,600 psi) . . .''
    Finally, there is no risk that a customer would attempt to fuel the
CNG tanks from a conventional gasoline pump. The fueling nozzle and
filling port for CNG are completely distinct from the corresponding
nozzle and port used for gasoline, and the distinctions are obvious. In
the extraordinary event that a user attempted to connect a conventional
gasoline nozzle to the CNG fueling valve, it would be immediately
apparent that the mismatched gasoline nozzle does not attach to or work
with the CNG valve. GM also asserts that owners and operators of CNG
vehicles (the large majority being fleet purchasers) are well aware
that their vehicles use a non-conventional fuel,

and are attuned to the unique characteristics associated with CNG use,
such as service pressure, and tank inspection and replacement
provisions. These aspects of the CNG fuel system are likely known to
owners when or even before they purchase the CNG vehicle, and in any
event are easily obtained for the subject vehicles from the labels at
the fueling port, from the vehicle owner's manuals, and/or from the
labels on the CNG tanks themselves. As mentioned above, the information
is provided in the owner's manual.
    In addition, GM stated its belief that NHTSA has previously granted
petitions for labeling related inconsequential noncompliances that GM
believes can be applied to a decision on its petition.
    GM informed NHTSA that it is not aware of any crashes, injuries or
customer complaints associated with this condition.
    GM also informed NHTSA that it has corrected the noncompliance for
all future production.
    In summation, GM believes that the described noncompliance of the
subject vehicles is inconsequential to motor vehicle safety, and that
its petition, to exempt from providing recall notification of
noncompliance as required by 49 U.S.C. 30118 and remedying the recall
noncompliance as required by 49 U.S.C. 30120 should be granted.

NHTSA Decision

    NHTSA Analysis: NHTSA added the subject vehicle label requirements
to FMVSS No. 303 to aid in assuring that CNG containers are not
overfilled.\1\ The overfilling of a CNG tank can affect the integrity
of the storage tank as well as other system components. Pressurized CNG
fuel dispensing and storage methods are significantly different from
those for more traditional diesel and gasoline fuels which are stored
as liquid at atmospheric pressure. Significant stored mechanical energy
exists within a pressurized CNG tank that is not present in traditional
liquid fuel (fuel with a boiling point above 0 [deg]C) storage tanks.
Should a CNG tank be weakened by repeated overfilling, the stored
mechanical energy could be explosively released.
---------------------------------------------------------------------------

    \1\ See 59 FR 65307 and 60 FR 57944.
---------------------------------------------------------------------------

    The lettering height required for the CNG vehicle label is greater
than that required for similar information in the owner's manual and
the alternative one page document (4.76 mm versus 2.5 mm).\2\ NHTSA
believes that the larger lettering size is important for the vehicle
label in order to make it easier to read for a wide range of
conditions, both environmental and operator related. The label is
required to be located near the vehicle refueling connection in
addition to the owner's manual for the following reasons:
---------------------------------------------------------------------------

    \2\ 49 CFR 571.303 S5.2
---------------------------------------------------------------------------

    1. Not all vehicle operators will have read or have ready access to
the vehicle's owner's manual, especially when vehicles have been
acquired on the secondary market.
    2. Immediately prior to or during vehicle refueling is the most
opportune time to provide a person refueling the vehicle with
information that may reduce accidental overfilling, and the vehicle
refueling connection label is more likely to be read than the owner's
manual during vehicle refueling.
    3. Vehicle refueling connection label readability and conspicuity
are important to help to ensure that the information is actually read
and understood by the person refueling the vehicle, the person
ultimately responsible for the safe refueling of the vehicle.
    NHTSA is currently investigating several incidents where over-
pressurization of CNG tanks mounted on vehicles other than the subject
vehicles may have contributed to explosions. A lack of understanding
related to the rated service pressure and actual working pressure of
the fuel containers are factors that NHTSA believes may have
contributed to these explosions. This further reinforces NHTSA's belief
that label information at the vehicle's filling location must be easy
to read.
    NHTSA has previously granted inconsequential noncompliance
petitions for labeling issues including discrepancies in lettering
height, missing information, incorrect information, and misplaced or
obscured information. We believe this label is different because of the
frequency of filling the fuel tank. Filling the fuel tank can occur on
a daily basis whereas labels for other purposes, e.g., a tire label,
are likely to be accessed by operators much less frequently. It is
important that the operator be able to read the label to verify an
overfill situation does not occur. We also believe the routine nature
of fuel filling makes it less likely the operator would check the
owner's manual, assuming the owner's manual is available, if the
fueling label cannot be read. The labeling provides important safety
information that is intended to prevent a potential explosion.
Therefore, NHTSA believes that the required size of the information on
the subject nonconforming CNG label is consequential to motor vehicle
safety.
    NHTSA Decision: In consideration of the foregoing, NHTSA has
decided that GM has not met its burden of persuasion that its FMVSS No.
303 noncompliance is inconsequential. Accordingly, GM's petition is
hereby denied and GM is obligated to provide notification of, and a
remedy for, that noncompliance under 49 U.S.C. 30118 and 30120.

    Authority:  (49 U.S.C. 30118, 30120: delegations of authority at
49 CFR 1.95 and 501.8)

Frank S. Borris,
Acting Associate Administrator for Enforcement.
[FR Doc. 2015-26400 Filed 10-16-15; 8:45 am]
 BILLING CODE 4910-59-P


----- Forwarded by Melanie King/RTP/USEPA/US on 08/09/2010 08:08 PM
-----
|------------>
| From:      |
|------------>
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
  |"Bromberg, Kevin L."<EMAIL_ADDRESS>
|
  >---------------------------------------------------------------------------
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|------------>
| To:        |
|------------>
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
  |RobertJ Wayland/RTP/USEPA/US@EPA, Melanie King/RTP/USEPA/US@EPA
|
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
|------------>
| Cc:        |
|------------>
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
  |"Cortney Higgins"<EMAIL_ADDRESS>"Kymn, Christine J."
<EMAIL_ADDRESS>"Johnson, Nancy"                     |
<EMAIL_ADDRESS>"Maresca, Charles A."
<EMAIL_ADDRESS>Peter Tsirigotis/RTP/USEPA/US@EPA
|
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
|------------>
| Date:      |
|------------>
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
  |08/09/2010 05:39 PM
|
  >---------------------------------------------------------------------------
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|------------>
| Subject:   |
|------------>
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|
  |RE: No Set AFR for catalysts mfgers
|
  >---------------------------------------------------------------------------
-----------------------------------------------------------------|

Joe has NO IDEA about the rule - and therefore, of course, you could achieve
"significant" NOx benefits if you set the catalyst to achieve both reductions
- but he doesn't know the set points at which this happens - and that is our
point.

If you were setting standards for both HCHO and NOx - then this certainly
could happen (although we still haven't much data on the overlap of the
setpoints).

I agree, over most settings, there would be "significant" NOx reductions
- we could reasonably estimate 1/2 of what EPA has estimated.  But this is not
based on much evidence.  1/2 of the 97% estimate is significant too.

Kevin

-----Original Message-----
From<EMAIL_ADDRESS>[
<EMAIL_ADDRESS>Sent: Monday, August 09, 2010 5:20 PM
To: Bromberg, Kevin L<EMAIL_ADDRESS>Cc: Cortney Higgins; Kymn, Christine J.; Johnson, Nancy; Maresca, Charles A.;
Peter Tsirigotis
Subject: Re: No Set AFR for catalysts mfgers

Kevin -

Joe likewise makes the Agency's point in the second to last paragraph - I.e.,
if a catalyst is installed, significant NOx reductions will be achieved.

Bob

Sent from Blackberry Wireless Device
*********************************************
Dr. Robert J. Wayland
U.S. EPA
Office of Air Quality Planning and Standards
109 T.W. Alexander Drive, MC D243-01
RTP, NC  27709

Phone:<PHONE_NUMBER>
Fax:<PHONE_NUMBER>
Cell:<PHONE_NUMBER>

----- Original Message -----
From: "Bromberg, Kevin L."<EMAIL_ADDRESS>Sent: 08/09/2010 04:42 PM AST
To: Melanie King; Robertj Wayland
Cc: "Higgins, Cortney"<EMAIL_ADDRESS>"Kymn, Christine J."
<EMAIL_ADDRESS>"Johnson, Nancy"
<EMAIL_ADDRESS>"Maresca, Charles A."
<EMAIL_ADDRESS>Subject: No Set AFR for catalysts mfgers

This confirms what we expected.   The owner is free to choose the AFR
that he needs.  This will substantially reduce the NOx benefits.  As you know
Joe is the technical expert with the engine manufacturers.

Kevin

-----Original Message-----
From: Joseph L. Suchecki<EMAIL_ADDRESS>Sent: Monday, August 09, 2010 3:30 PM
To: Bromberg, Kevin L.
Subject: RE: CI RICE NESHAP final rule

Kevin,

I quickly talked to one of our manufacturers on this topic.  There is
generally no set point required by the manufacturer and an owner and operator
is free to choose the set point depending on his needs.  I don't fully
understand all of the requirements, but essentially the owner/operator
determines set point within a narrow range that allows compliance to emission
standards and getting the best fuel economy.

Of course, if an existing engine adds a three-way catalyst to control
formaldehyde emissions, just the addition of the catalyst system will
substantially reduce NOx emissions compared to an uncontrolled engine.

Not sure if that answers your question.
Joe

-----Original Message-----
From: Bromberg, Kevin L<EMAIL_ADDRESS>Sent: Monday, August 09, 2010 1:19 PM
To: Suchecki, Joe
Cc: Bromberg, Kevin L.
Subject: FW: CI RICE NESHAP final rule

New number<PHONE_NUMBER>

Hi Joe:

For rich burn engine operators who buy NSCR catalysts for retrofit purposes -
to reduce HCHO emissions for RICE SI rule - what will be the specified
operating parameters for those catalysts - does the cat mfg have specified
operating parameters that limit AFR to .99 to .96, or can operator use lean
settings at 1.0 to 1.1, say, to meet the HCHO limit?

Feel free to call me at<PHONE_NUMBER> (but I'll be on the phone at
2:30-3:30)
I could use this by email during the call.

Thx,
Kevin


[Federal Register: August 7, 2008 (Volume 73, Number 153)]
[Proposed Rules]
[Page 45922-45924]
[DOCID:fr07au08-24]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2008-0456]
RIN 1625-AA09

Drawbridge Operation Regulations; Harlem River, New York, NY

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Coast Guard proposes to change the drawbridge operating
regulations governing the operation of the bridges across the Harlem
River at New York City, New York. This proposed rule would revise the
drawbridge operation regulations removing redundant language and
requirements that are no longer necessary.

DATES: Comments and related material must reach the Coast Guard on or
before October 6, 2008.

ADDRESSES: You may submit comments identified by Coast Guard docket
number USCG-2008-0456 to the Docket Management Facility at the U.S.
Department of Transportation. To avoid duplication, please use only one
of the following methods:
    (1) Online: http://www.regulations.gov.
    (2) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building ground floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590-0001.
    (3) Hand Delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except, Federal holidays. The telephone
number is<PHONE_NUMBER>.
    (4) Fax:<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Ms. Judy Leung-Yee, Project Officer,
First Coast Guard District,<PHONE_NUMBER>.
    If you have questions on viewing or submitting material to the
docket, call Renee V. Wright, Program Manager, Docket Operations,
telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related material. All comments received will be posted,
without change, to http://www.regulations.gov and will include any
personal information you have provided. We have an agreement with the
Department of Transportation to use the Docket Management Facility.

Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2008-0456), indicate the specific section of this
document to which each comment applies, and give the reason for each
comment. We recommend that you include your name and mailing address,
an e-mail address, or a phone number in the body of your document so
that we can contact you if we have questions regarding your submission.
You may submit your comments and materials by electronic means, mail,
fax, or delivery to the Docket Management Facility at the address under
ADDRESSES; but please submit your comments and materials by only one
means. If you submit them by mail or delivery, submit them in an
unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit them by mail and would
like to know that they reached the Facility, please enclose a stamped,
self-addressed postcard or envelope. We will consider all comments and
material received during the comment period. We may change this
proposed rule in view of them.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov at
any time. Enter the docket number for this rulemaking (USCG-2008-0456)
in the Search box, and click ``Go>>.'' You may also visit either the
Docket Management Facility in Room W12-140, on the ground floor of the
Department of Transportation West Building, 1200 New Jersey Avenue,
SE., Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays; or First Coast Guard District,
Bridge Branch, One South Street, New York, NY 10004, between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays.

Privacy Act

    Anyone can search the electronic form of all comments received into
any of our dockets by the name of the individual submitting the comment
(or signing the comment), if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act, system of
records notice regarding our public dockets in the January 17, 2008
issue of the Federal Register (73 FR 3316).

Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one to the Docket Management Facility at the address under
ADDRESSES explaining why one would be beneficial. If we determine that
one would aid this rulemaking, we will hold one at a time and place
announced by a later notice in the Federal Register.

Background and Purpose

    The existing drawbridge operation regulations for the Harlem River
lists the operating hours for eleven moveable bridges. The eleven
moveable bridges across the Harlem River provide the following vertical
clearances in the closed position:
    The 103rd Street Bridge has a vertical clearance of 55 feet at mean
high water, and 60 feet at mean low water in the closed position.
    The 125th Street Bridge has a vertical clearance of 54 feet at mean
high water and 59 feet at mean low water in the closed position.
    The Willis Avenue Bridge has a vertical clearance of 24 feet at
mean high water and 30 feet at mean low water in the closed position.
    The Third Avenue Bridge has a vertical clearance of 25 feet at mean
high water and 30 feet at mean low water in the closed position.
    The Metro North Park Avenue Bridge has a vertical clearance of 25
feet at mean high water and 30 feet at mean low water in the closed
position.
    The Madison Avenue Bridge has a vertical clearance of 25 feet at
mean high water and 29 feet at mean low water in the closed position.
    The 145th Street Bridge has a vertical clearance of 25 feet at mean
high water and 30 feet at mean low water in the closed position.
    The Macombs Dam Bridge has a vertical clearance of 27 feet at mean
high water and 32 feet at mean low water in the closed position.
    The 207th Street Bridge has a vertical clearance of 26 feet at mean
high water and 30 feet at mean low water in the closed position.
    The two Broadway Bridges have a vertical clearance of 24 feet at
mean high water and 29 feet at mean low water in the closed position.
    The Spuyten Duyvil Bridge has a vertical clearance of 5 feet at
mean high water and 9 feet at mean low water in the closed position.
    The existing drawbridge operating regulations, listed at 33 CFR
117.789, require all the moveable bridges across

the Harlem River, except the Spuyten Duyvil Bridge, to open on signal
from 10 a.m. to 5 p.m. after at least a four-hour notice is given to
the New York City Highway Radio (Hotline) Room, and from 5 p.m. to 10
a.m. all the bridges, except the Spuyten Duyvil Bridge, need not open
for vessel traffic.
    The moveable bridges across the Harlem River, listed above, all
provide at least 24 feet of vertical clearance in the closed position,
except for the Spuyten Duyvil Bridge.
    The Spuyten Duyvil Bridge is much lower in vertical clearance, and
as a result, is required under the existing regulations to open on
signal at all times for the passage of vessel traffic.

Discussion of Proposed Rule

    Under the existing drawbridge operation regulations ten of the
eleven moveable bridges listed do not open for vessel traffic between 5
p.m. and 10 a.m. each day.
    The Spuyten Duyvil Bridge, which is much lower in vertical
clearance than all the other bridges, is the only moveable bridge
listed in the existing regulations that provides bridge openings at all
times of the day.
    The Coast Guard proposes to change the existing regulations to
require the ten bridges in the existing regulations that do not
normally open for vessel traffic between 5 p.m. and 10 a.m. to now open
after at least a four-hour advance notice is given to the New York City
Radio (Hotline) Room.
    The Coast Guard believes that all bridges over navigable waterways
should open for vessel traffic at any time either on signal or after an
advance notice is given unless there is no existing navigation
presently utilizing the waterway.
    In addition, the language in existing regulations allowing public
vessels of the United States to be passed through each bridge in this
section as soon as possible will be removed because it is now required
under 33 CFR 117.31, as part of the General Requirements for bridges.

Regulatory Analysis

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analysis based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This proposed rule is not a ``significant regulatory action'' under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
and does not require an assessment of potential costs and benefits
under section 6(a)(3) of that Order. The Office of Management and
Budget has not reviewed it under that Order.
    This proposed rule is not a significant regulatory action. This
conclusion is based on the fact that vessel traffic will be able to
obtain bridge openings 24 hours each day instead of the existing seven-
hour window for bridge openings.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
    The Coast Guard certifies under section 5 U.S.C. 605(b) that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
    This conclusion is based on the fact that vessel traffic will be
able to obtain bridge openings 24 hours each day instead of the
existing seven-hour window.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
rule would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please contact, Commander (dpb), First Coast
Guard District, Bridge Branch, One South Street, New York, NY 10004.
The telephone number is<PHONE_NUMBER>. The Coast Guard will not
retaliate against small entities that question or complain about this
proposed rule or any policy or action of the Coast Guard.

Collection of Information

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this proposed rule
under that Order and have determined that it does not have implications
for federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. Though this proposed rule would not result in such an
expenditure, we do discuss the effects of this rule elsewhere in this
preamble.

Taking of Private Property

    This proposed rule would not affect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it would not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and

responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 5100.1, and Commandant Instruction
M16475.1D, which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is not likely to
have a significant effect on the human environment because it simply
promulgates the operating regulations or procedures for drawbridges. We
seek any comments or information that may lead to the discovery of a
significant environmental impact from this proposed rule.

List of Subjects in 33 CFR Part 117

    Bridges.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 117 as follows:

PART 117--DRAWBRIDGE OPERATION REGULATIONS

    1. The authority citation for part 117 continues to read as
follows:

    Authority: 33 U.S.C. 499; 33 CFR 1.05-1(g); Department of
Homeland Security Delegation No. 0170.1.
    2. Section 117.789 is revised to read as follows:

Sec.  117.789  Harlem River.

    (a) The draws of all railroad bridges across the Harlem River may
remain in the closed position from the time a train scheduled to cross
the bridge is within five minutes from the bridge, and until that train
has fully crossed the bridge.
    (b)(1) The draws of the bridges at 103 Street, mile 0.0, 125 Street
(Triborough), mile 1.3, Willis Avenue, mile 1.5, Third Avenue, mile
1.9, Madison Avenue, mile 2.3, 145 Street, mile 2.8, Macombs Dam, mile
3.2, 207 Street, mile 6.0, and the two Broadway Bridges, mile 6.8,
shall open on signal if at least a four-hour advance notice is given to
the New York City Highway Radio (Hotline) Room.
    (2) The draws of the Willis Avenue Bridge, mile 1.5, Third Avenue
Bridge, mile 1.9, and the Madison Avenue Bridge, mile 2.3, need not
open for the passage of vessel traffic at various times between 8 a.m.
and 5 p.m. on the first Sunday in May and November. The exact time and
date of each bridge closure will be published in the Local Notice to
Mariners several weeks prior to each closure.
    (c) The draw of the Metro North (Park Avenue) Bridge, mile 2.1,
shall open on signal, except as provided in paragraph (a) of this
section, if at least a 4-hour advance notice is given by calling the
number posted at the bridge.
    (d) The draw of the Spuyten Duyvil railroad bridge, mile 7.9, shall
open on signal at all times, except as provided in paragraph (a) of
this section.

    Dated: July 28, 2008.
Dale G. Gabel,
Rear Admiral, U.S. Coast Guard Commander, First Coast Guard District.
[FR Doc. E8-18175 Filed 8-6-08; 8:45 am]

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[Federal Register: August 3, 2006 (Volume 71, Number 149)]
[Notices]
[Page 44021-44022]
[DOCID:fr03au06-36]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP06-443-000]

Alliance Pipeline L.P.; Notice of Proposed Changes in FERC Gas
Tariff

July 27, 2006.
    Take notice that on July 24, 2006, Alliance Pipeline L.P.
(Alliance) tendered for filing as part of its FERC Gas Tariff, Original
Volume No. 1, the following tariff sheets, to become effective August
1, 2006:

Second Revised Sheet No. 2
Original Sheet No. 277E

    Alliance states that copies of its filing have been mailed to all
customers, state commissions, and other interested parties.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing an intervention or protest must serve a copy of that
document on the Applicant. Anyone filing an intervention or protest on
or before the intervention or protest date need not serve motions to
intervene or protests on persons other than the Applicant.

    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible online at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, D.C. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-12505 Filed 8-2-06; 8:45 am]

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