[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Notices]
[Page 23801]
[FR Doc No: 2016-09332]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. 2016-28]

Petition for Exemption; Summary of Petition Received;
Precisionhawk

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14 of the Code of Federal
Regulations. The purpose of this notice is to improve the public's
awareness of, and participation in, the FAA's exemption process.
Neither publication of this notice nor the inclusion or omission of
information in the summary is intended to affect the legal status of
the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before May 12, 2016.

ADDRESSES: Send comments identified by docket number FAA-2016-0363
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to http://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this action, contact Joshua Parker,<PHONE_NUMBER>), 800 Independence
Avenue SW., Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on April 15, 2016.
Dale A. Bouffiou,
Acting Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2016-0363.
    Petitioner: PrecisionHawk, Inc.
    Section(s) of 14 CFR Affected: 61.113, 91.119, 91.121 and 91.151
    Description of Relief Sought: PrecisionHawk, Inc. seeks relief from
the requirements of 14 CFR 61.113, 91.119, 91.121 and 91.151 to permit
it to conduct small UAS (sUAS) operations extended visual line of sight
as part of the FAA/PrecisionHawk UAS Focus Area Pathfinder program. The
purpose of the Pathfinder program \1\ is to allow low-altitude
operations in the National Airspace System (NAS) beyond what is
currently outlined in the sUAS Notice of Proposed Rulemaking (NPRM) in
rural areas.

    \1\ https://www.faa.gov/uas/legislative_programs/pathfinders/.
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[FR Doc. 2016-09332 Filed 4-21-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: April 30, 2010 (Volume 75, Number 83)]
[Notices]
[Page 22779-22783]
[DOCID:fr30ap10-70]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2010-0383; FRL-8823-8]

FIFRA Scientific Advisory Panel; Notice of Public Meeting

 AGENCY: Environmental Protection Agency (EPA).

 ACTION: Notice.

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 SUMMARY: There will be a 3-day meeting of the Federal Insecticide,
Fungicide, and Rodenticide Act Scientific Advisory Panel (FIFRA SAP) to
consider and review a set of scientific issues related to review of
SHEDs-Multimedia version 4, Peer consult on PBPK Modeling, and a SHEDS-
PBPK Permethrin study.

 DATES: The meeting will be held on July 20-22, 2010, from 9 a.m. to
approximately 5:30 p.m.
    Comments. The Agency encourages that written comments be submitted
by July 8, 2010 and requests for oral comments be submitted by July 15,
2010. However, written comments and requests to make oral comments may
be submitted until the date of the meeting, but anyone submitting
written comments after July 8, 2010 should contact the Designated
Federal Official (DFO) listed under FOR FURTHER INFORMATION CONTACT.
For additional instructions, see Unit I.C. of the SUPPLEMENTARY
INFORMATION.
    Nominations. Nominations of candidates to serve as ad hoc members
of FIFRA SAP for this meeting should be provided on or before May 14,
2010.
    Webcasting. This meeting may be webcast. Please refer to the FIFRA
SAP's website, http://www.epa.gov/scipoly/SAP/ for information on how
to access the webcast. Please note that the webcast is a supplementary
public process provided only for convenience. If difficulties arise
resulting in webcasting outages, the meeting will continue as planned.
    Special accommodations. For information on access or services for
individuals with disabilities, and to request accommodation of a
disability, please contact the DFO listed under FOR FURTHER INFORMATION
CONTACT at least 10 days prior to the meeting to give EPA as much time
as possible to process your request.

ADDRESSES: The meeting will be held at the Environmental Protection
Agency, Conference Center, Lobby Level, One Potomac Yard (South Bldg.),
2777 S. Crystal Dr., Arlington, VA 22202.
    Comments. Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2010-0383, by one of the following methods:
      Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
      Mail: Office of Pesticide Programs (OPP) Regulatory
Public Docket (7502P), Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington, DC 20460-0001.
     Delivery: OPP Regulatory Public Docket (7502P),
Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South
Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only
accepted during the Docket Facility's normal hours of operation (8:30
a.m. to 4 p.m., Monday through Friday, excluding legal holidays).
Special arrangements should be made for deliveries of boxed
information. The Docket Facility telephone number is<PHONE_NUMBER>.
    Instructions. Direct your comments to docket ID number EPA-HQ-OPP-
2010-0383. If your comments contain any information that you consider
to be CBI or otherwise protected, please contact the DFO listed under
FOR FURTHER INFORMATION CONTACT to obtain special instructions before
submitting your comments. EPA's policy is that all comments received
will be included in the docket without change and may be made available
on-line at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be Confidential Business Information (CBI) or other information
whose disclosure is restricted by statute. Do not submit information
that you consider to be CBI or otherwise protected through
regulations.gov or e-mail. The regulations.gov website is an
``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the docket and made available on the Internet. If you submit
an electronic comment, EPA recommends that you include your name and
other contact information in the body of your comment and with any disk
or CD-ROM you submit. If EPA cannot read your comment due to technical
difficulties and cannot contact you for clarification, EPA may not be
able to consider your comment. Electronic files should avoid the use of
special characters, any form of encryption, and be free of any defects
or viruses.
    Docket: All documents in the docket are listed in the docket index
available at http://www.regulations.gov. Although listed in the index,
some information is not publicly available, e.g., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, is not placed on the Internet
and will be publicly available only in hard copy form. Publicly
available docket materials are available either in the electronic
docket at http://www.regulations.gov, or, if only available in hard
copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac
Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The hours of
operation of this Docket Facility are from 8:30 a.m. to 4 p.m., Monday
through Friday, excluding legal holidays. The Docket Facility telephone
number is<PHONE_NUMBER>.
    Nominations, requests to present oral comments, and requests for
special accommodations. Submit nominations to serve as ad hoc members
of FIFRA SAP, requests for special seating accommodations, or requests
to present oral comments to the DFO listed under FOR FURTHER
INFORMATION CONTACT.

 FOR FURTHER INFORMATION CONTACT: Sharlene R. Matten, DFO, Office of
Science Coordination and Policy (7201M), Environmental Protection
Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001;
telephone number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>; e-mail
address<EMAIL_ADDRESS>
 SUPPLEMENTARY INFORMATION:

 I. General Information

 A. Does this Action Apply to Me?

     This action is directed to the public in general. This action may,
however, be of interest to persons who are or may be required to
conduct testing of chemical substances under the Federal Food, Drug,
and Cosmetic Act (FFDCA), FIFRA, and the Food Quality Protection Act of
1996 (FQPA). Since other entities may also be interested, the Agency
has not attempted to describe all the specific entities that may be
affected by this action. If you have any questions regarding the
applicability of this action to a particular entity, consult the DFO
listed under FOR FURTHER INFORMATION CONTACT.

 B. What Should I Consider as I Prepare My Comments for EPA?

    When submitting comments, remember to:
    1. Identify the document by docket ID number and other identifying
information (subject heading, Federal Register date and page number).
     2. Follow directions. The Agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
    3. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
    4. Describe any assumptions and provide any technical information
and/or data that you used.
    5. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    6. Provide specific examples to illustrate your concerns and
suggest alternatives.
    7. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
    8. Make sure to submit your comments by the comment period deadline
identified.

 C. How May I Participate in this Meeting?

    You may participate in this meeting by following the instructions
in this unit. To ensure proper receipt by EPA, it is imperative that
you identify docket ID number EPA-HQ-OPP-2010-0383 in the subject line
on the first page of your request.
    1. Written comments. The Agency encourages that written comments be
submitted, using the instructions in ADDRESSES, no later than July 8,
2010, to provide FIFRA SAP the time necessary to consider and review
the written comments. Written comments are accepted until the date of
the meeting, but anyone submitting written comments after July 15, 2010
should contact the DFO listed under FOR FURTHER INFORMATION CONTACT.
Anyone submitting written comments at the meeting should bring 30
copies for distribution to FIFRA SAP.
    2. Oral comments. The Agency encourages that each individual or
group wishing to make brief oral comments to FIFRA SAP submit their
request to the DFO listed under FOR FURTHER INFORMATION CONTACT no
later than July 15, 2010, in order to be included on the meeting
agenda. Requests to present oral comments will be accepted until the
date of the meeting and, to the extent that time permits, the

Chair of FIFRA SAP may permit the presentation of oral comments at the
meeting by interested persons who have not previously requested time.
The request should identify the name of the individual making the
presentation, the organization (if any) the individual will represent,
and any requirements for audiovisual equipment (e.g., overhead
projector, 35 mm projector, chalkboard). Oral comments before FIFRA SAP
are limited to approximately 5 minutes unless prior arrangements have
been made. In addition, each speaker should bring 30 copies of his or
her comments and presentation slides for distribution to the FIFRA SAP
at the meeting.
    3. Seating at the meeting. Seating at the meeting will be open and
on a first-come basis.
    4. Request for nominations to serve as ad hoc members of FIFRA SAP
for this meeting. As part of a broader process for developing a pool of
candidates for each meeting, FIFRA SAP staff routinely solicits the
stakeholder community for nominations of prospective candidates for
service as ad hoc members of FIFRA SAP. Any interested person or
organization may nominate qualified individuals to be considered as
prospective candidates for a specific meeting. Individuals nominated
for this meeting should have expertise in one or more of the following
areas: pesticide exposure, general statistics, exposure modeling, dose
modeling, and risk assessment. Nominees should be scientists who have
sufficient professional qualifications, including training and
experience, to be capable of providing expert comments on the
scientific issues for this meeting. Nominees should be identified by
name, occupation, position, address, and telephone number. Nominations
should be provided to the DFO listed under FOR FURTHER INFORMATION
CONTACT on or before May 14, 2010. The Agency will consider all
nominations of prospective candidates for this meeting that are
received on or before this date. However, final selection of ad hoc
members for this meeting is a discretionary function of the Agency.
     The selection of scientists to serve on FIFRA SAP is based on the
function of the panel and the expertise needed to address the Agency's
charge to the panel. No interested scientists shall be ineligible to
serve by reason of their membership on any other advisory committee to
a Federal department or agency or their employment by a Federal
department or agency except the EPA. Other factors considered during
the selection process include availability of the potential panel
member to fully participate in the panel's reviews, absence of any
conflicts of interest or appearance of lack of impartiality,
independence with respect to the matters under review, and lack of
bias. Although financial conflicts of interest, the appearance of lack
of impartiality, lack of independence, and bias may result in
disqualification, the absence of such concerns does not assure that a
candidate will be selected to serve on FIFRA SAP. Numerous qualified
candidates are identified for each panel. Therefore, selection
decisions involve carefully weighing a number of factors including the
candidates' areas of expertise and professional qualifications and
achieving an overall balance of different scientific perspectives on
the panel. In order to have the collective breadth of experience needed
to address the Agency's charge for this meeting, the Agency anticipates
selecting approximately 12-15 ad hoc scientists.
    FIFRA SAP members are subject to the provisions of 5 CFR part 2634,
Executive Branch Financial Disclosure, as supplemented by the EPA in 5
CFR part 6401. In anticipation of this requirement, prospective
candidates for service on the FIFRA SAP will be asked to submit
confidential financial information which shall fully disclose, among
other financial interests, the candidate's employment, stocks and
bonds, and where applicable, sources of research support. The EPA will
evaluate the candidates financial disclosure form to assess whether
there are financial conflicts of interest, appearance of a lack of
impartiality or any prior involvement with the development of the
documents under consideration (including previous scientific peer
review) before the candidate is considered further for service on FIFRA
SAP. Those who are selected from the pool of prospective candidates
will be asked to attend the public meetings and to participate in the
discussion of key issues and assumptions at these meetings. In
addition, they will be asked to review and to help finalize the meeting
minutes. The list of FIFRA SAP members participating at this meeting
will be posted on the FIFRA SAP website at http://epa.gov/scipoly/sap
or may be obtained from the OPP Regulatory Public Docket at http://
www.regulations.gov.

 II. Background

 A. Purpose of FIFRA SAP

    FIFRA SAP serves as the primary scientific peer review mechanism of
EPA's Office of Chemical Safety and Pollution Prevention (OCSPP) and is
structured to provide scientific advice, information and
recommendations to the EPA Administrator on pesticides and pesticide-
related issues as to the impact of regulatory actions on health and the
environment. FIFRA SAP is a Federal advisory committee established in
1975 under FIFRA that operates in accordance with requirements of the
Federal Advisory Committee Act. FIFRA SAP is composed of a permanent
panel consisting of seven members who are appointed by the EPA
Administrator from nominees provided by the National Institutes of
Health and the National Science Foundation. FIFRA, as amended by FQPA,
established a Science Review Board consisting of at least 60 scientists
who are available to the SAP on an ad hoc basis to assist in reviews
conducted by the SAP. As a peer review mechanism, FIFRA SAP provides
comments, evaluations and recommendations to improve the effectiveness
and quality of analyses made by Agency scientists. Members of FIFRA SAP
are scientists who have sufficient professional qualifications,
including training and experience, to provide expert advice and
recommendation to the Agency.

 B. Public Meeting

    The Food Quality Protection Act (FQPA) amended laws under which EPA
evaluates the safety of pesticide residues in food. Section
408(b)(2)(D)(v) and (vi) of the Federal Food, Drug, and Cosmetic Act
(FFDCA) as amended by FQPA, specifies that, when determining the safety
of a pesticide chemical, EPA shall consider aggregate exposure
(i.e.,total dietary (food and water), residential, and other non-
occupational) and available information concerning the cumulative
effects to human health that may result from exposure to other
substances that have a common mechanism of toxicity. Aggregate
assessments account for multiple sources and routes of exposure for a
single chemical. FQPA-mandated cumulative assessments combine exposures
and doses to two or more chemicals that share a common mechanism of
toxicity.
    EPA's Office of Pesticide Programs (OPP) and Office of Research and
Development (ORD) have been conducting collaborative science to inform
the Agency's anticipated pyrethroid cumulative risk assessment (CRA).
This FIFRA SAP review is part of the Agency's ongoing process to
enhance probabilistic exposure, dose, and risk assessments, and OPP's
ongoing efforts to consider available probabilistic exposure and dose
models to address FQPA. Through a coordinated multi-disciplinary
effort,

ORD and OPP scientists have developed new approaches for Commulative
Risk Assessment (CRA) which are incorporated into ORD's SHEDS-
Multimedia (Stochastic Human Exposure and Dose Simulation) computer
model and software. SHEDS-Multimedia (http://www.epa.gov/heasd/
products/ sheds_multimedia/sheds_mm.html) is a physically-based,
probabilistic model that predicts for user-specified population cohorts
exposures incurred via eating contaminated foods or drinking water,
inhaling contaminated air, touching contaminated surface residues, and
ingesting residues from hand-to-mouth or object-to-mouth activities. It
can simulate aggregate or cumulative exposures over time via multiple
routes of exposure (dietary & non-dietary residential) for multiple
types of chemicals & scenarios. To do this, it combines information on
chemical usage, human activity data (e.g., from Consolidated Human
Activity Database (CHAD; www.epa.gov/chadnet1) time/activity diary
surveys and videography studies), environmental residues and
concentrations, and exposure factors to generate time series of
exposure for simulated individuals. One-stage or two-stage Monte Carlo
simulation is used to produce distributions of exposure for various
population cohorts (e.g., age/gender groups) that reflect the
variability and/or uncertainty in the input parameters.
    While the core of SHEDS-Multimedia is the concentration-to-exposure
module, there are various options (e.g., built-in simple source-to-
concentration module, user-entered time series from other models or
field study measurements) for obtaining concentration inputs. SHEDS-
Multimedia also includes a simple built-in pharmacokinetic (PK) model.
In addition, SHEDS-Multimedia exposure outputs can be used as inputs to
more sophisticated physiologically-based pharmacokinetic (PBPK) models
which can, in turn, be used to model and estimate tissue burden and
urinary concentrations of chemicals through class-oriented approaches.
The combined exposure- and dose- modeled outputs will be compared
against real-world biomonitoring data, and will be integrated with
corresponding effects research.
    An earlier version of the SHEDS-Multimedia model (version 3) was
originally presented to the SAP for review in August 2007 (http://
www.epa.gov/scipoly/SAP/meetings/2007/081407_mtg.htm). In that
version, only the aggregate residential module of SHEDS-Multimedia was
operational, and then only for post-application exposures (i.e.,
pesticide applicators were not considered). In that 2007 meeting, the
SAP reviewed the aggregate residential (post-application only) version
of SHEDS-Multimedia (version 3), as well as conceptual plans for the
SHEDS dietary module and for the PBPK modeling.
    This July 2010 SAP will focus on work conducted by ORD and OPP
scientists since 2007 on these models, and will consist of:
    (i) A formal review of SHEDS-Multimedia version 4 which now
includes dietary as well as both applicator and post-application
residential exposures, and allows for cumulative as well as aggregate
assessments;
    (ii) A peer consult on refinements to the PBPK models and how SHEDS
outputs are introduced into and used by PBPK models; and
    (iii) Demonstration of the application of linked SHEDS-PBPK models
with a permethrin case study.
The methods and models reviewed by this SAP will provide new science
and data that will inform the CRA for pyrethroids and support future
cumulative risk assessments. The overall goal of this SAP is to review
these individual and linked state-of-the-science exposure and dose
assessment tools with a permethrin case study to support the Agency's
pyrethroid CRA.
    The purpose of this review is to request input from the SAP on this
updated version of the models and related software. Specifically, the
FIFRA SAP Panel at this meeting will be asked to review:
    (i) The dietary module of SHEDS-Multimedia version 4, including
algorithms, inputs, and results illustrated with a permethrin case
study;
    (ii) The residential module of SHEDS-Multimedia version 4,
including algorithms, inputs, and results illustrated with a permethrin
case study;
    (iii) The SHEDS-Multimedia version 4 aggregate (dietary and
residential modules combined) permethrin case study, including
algorithms, inputs, and results;
    (iv) Update on PBPK modeling since the 2007 SAP, and approaches for
and results of linking SHEDS-Multimedia with PBPK models, illustrated
with a permethrin case study; and
    (v) Plans for a mini-cumulative (2-3 chemicals) cumulative
pyrethroids assessment, including proposed methodologies using linked
SHEDS-Multimedia and PBPK models.
Review of the SHEDS-Multimedia model (both dietary and residential
modules) will include review of: The approaches, methodology, and
algorithms used in SHEDS; annotated SHEDS SAS code; the SHEDS Graphical
User Interface (GUI) and its ease of use; and technical and user
manuals. The Panel will be asked to focus on non- chemical-specific
default inputs at this SAP meeting. While a permethrin case study is
being presented for model illustration and evaluation purposes, the
Panel will not be asked to assess permethrin outputs.
    Overall, the science and products being reviewed in this SAP
provide exposure and risk assessors within and outside the Agency with
an externally peer-reviewed physically-based, probabilistic human
exposure model for multimedia, multi-route/pathway chemicals. In
addition, the issues associated with refinements to PBPK models and how
SHEDS outputs are linked to and used by PBPK models will be discussed
both in general and by a demonstration of the application of linked
SHEDS-PBPK models to a permethrin case study. It is anticipated that
the review of this material by the SAP will assist ORD and OPP in both
producing a plan for applying these tools to inform any future
pyrethroids CRA and a generalizable approach that can be applied to
other chemicals in the future.

C. FIFRA SAP Documents and Meeting Minutes

    EPA's background paper, related supporting materials, charge/
questions to FIFRA SAP, FIFRA SAP composition (i.e., members and ad hoc
members for this meeting), and the meeting agenda will be available by
late June. In addition, the Agency may provide additional background
documents as the materials become available. You may obtain electronic
copies of these documents, and certain other related documents that
might be available electronically, at http://www.regulations.gov and
the FIFRA SAP homepage at http://www.epa.gov/scipoly/sap.
    FIFRA SAP will prepare meeting minutes summarizing its
recommendations to the Agency approximately 90-days after the meeting.
The meeting minutes will be posted on the FIFRA SAP website or may be
obtained from the OPP Regulatory Public Docket at http://
www.regulations.gov.

List of Subjects

    Environmental protection, Pesticides and pests.

    Dated: April 27, 2010.
 Frank Sanders,
Director, Office of Science Coordination and Policy.

[FR Doc. 2010-10231 Filed 4-29-10; 8:45 am]
BILLING CODE 6560-50-S


[Federal Register Volume 76, Number 159 (Wednesday, August 17, 2011)]
[Notices]
[Pages 51114-51116]
[FR Doc No: 2011-20900]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65099; File No. SR-NASDAQ-2011-109]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Options on ETFS Gold Trust

August 11, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on August 2, 2011, the NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by NASDAQ. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The NASDAQ Stock Market LLC proposes to list and trade options on
the ETFS Gold Trust.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaq.cchwallstreet.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change. 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 purpose of the proposed rule change is to amend certain rules
to enable the listing and trading on the Exchange of options on the
ETFS Gold Trust (``SGOL'').\3\ Specifically, the Exchange proposes to
amend Chapter IV, entitled ``Securities Traded on NOM,'' at Sec. 3
entitled ``Criteria for Underlying Securities'' to add SGOL to the list
of products deemed appropriate for options trading.
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    \3\ The ETFS is physically-backed by gold bullion which are held
in Switzerland.
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    Exchange Rules at Chapter IV, Section 3 list the securities deemed
appropriate for options trading, which shall include shares or other
securities (``Exchange-Traded Fund Shares'' or ``ETFS''), including but
not limited to Partnership Units, as defined in Section 3, that are
principally traded on a national securities exchange and are defined as
an ``NMS stock'' under Rule 600 of Regulation NMS, and that (i)
Represent interests in registered investment companies (or series
thereof) organized as open-end management investment companies, unit
investment trusts or similar entities, and that hold portfolios of
securities comprising or otherwise based on or representing investments
in indexes or portfolios of securities (or that hold securities in one
or more other registered investment companies that themselves hold such
portfolios of securities) (``Funds'') and/or financial instruments
including, but not limited to, stock index futures contracts, options
on futures, options on securities and indexes, equity caps, collars and
floors, swap agreements, forward contracts, repurchase agreements and
reverse repurchase agreements (the ``Financial Instruments''), and
money market instruments, including, but not limited to, U.S.
government securities and repurchase agreements (the ``Money Market
Instruments'') constituting or otherwise based on or representing an
investment in an index or portfolio of securities and/or Financial
Instruments and Money Market Instruments, or (ii) represent commodity
pool interests principally engaged, directly or indirectly, in holding
and/or managing portfolios or baskets of securities, commodity futures
contracts, options on commodity futures contracts, swaps, forward
contracts and/or options on physical commodities and/or non-U.S.
currency (``Commodity Pool ETFs'') or (iii) represent interests in a
trust or similar entity that holds a specified non-U.S. currency or
currencies deposited with the trust or similar entity when aggregated
in some specified minimum number may be surrendered to the trust by the
beneficial owner to receive the specified non-U.S. currency or
currencies and pays the beneficial owner interest and other
distributions on the deposited non-U.S. currency or currencies, if any,
declared and paid by the trust (``Currency Trust Shares''), or (iv)
represent interests in the SPDR Gold Trust or are issued by the iShares
COMEX Gold Trust or iShares Silver Trust. This rule change proposes to
expand the types of ETFs that may be approved for options trading to
include SGOL.
    Apart from allowing SGOL to be an underlying for options traded in
the Exchange as described above, the listing standards for ETFs will
remain unchanged from those that apply under current Exchange Rules.
ETFs on which options may be listed and traded must still be listed and
traded on a national

securities exchange and must satisfy other listing standards.\4\
---------------------------------------------------------------------------

    \4\ The ETFS must meet the criteria and guidelines for
underlying securities as set forth in Chapter IV, Section 3(a), (b)
and (i) of the NASDAQ Options Rules.
---------------------------------------------------------------------------

    The Exchange notes that the current continued listing standards for
options on Exchange-Traded Fund Shares would also apply to options on
SGOL. Specifically, under Chapter IV, Section 4(h) of the NASDAQ
Options Rules, Fund Shares approved for options trading pursuant to
Section 3 of Chapter IV will not be deemed to meet the requirements for
continued approval, and Nasdaq shall not open for trading any
additional series of option contracts of the class covering such Fund
Shares if the security is delisted from trading as provided in
subparagraph (b)(v) of Section [sic]. In addition, Nasdaq Regulation
shall consider the suspension of opening transactions in any series of
options of the class covering Fund Shares in any of the following
circumstances:
    (i) In the case of options covering Fund Shares approved pursuant
to Section 3(i)(iv)(1), in accordance with the terms of subparagraphs
(b)(i), (ii) and (iii) of Section 4;
    (ii) In the case of options covering Fund Shares approved pursuant
to Section 3(i)(iv)(2) of Chapter IV, following the initial twelve-
month period beginning upon the commencement of trading in the Fund
Shares on a national securities exchange and are defined as NMS stock
under Rule 600 of Regulation NMS, there were fewer than 50 record and/
or beneficial holders of such Fund Shares for 30 consecutive days;
    (iii) The value of the index, non-U.S. currency, portfolio of
commodities including commodity futures contracts, options on commodity
futures contracts, swaps, forward contracts and/or options on physical
commodities and/or Financial Instruments or Money Market Instruments,
or portfolio of securities on which the Fund Shares are based is no
longer calculated or available; or
    (iv) Such other event occurs or condition exists that in the
opinion of Nasdaq Regulation makes further dealing in such options on
NOM inadvisable.\5\
---------------------------------------------------------------------------

    \5\ See Chapter IV, Section 4.
---------------------------------------------------------------------------

    The addition of SGOL to Exchange Rules at Chapter IV, Section 3
will not have any effect on the rules pertaining to position and
exercise limits or margin.\6\ Further, the Exchange represents that its
surveillance procedures applicable to trading in options on SGOL will
be similar to those applicable to all other options on other ETFs
currently traded on the Exchange. The Exchange may obtain trading
information via the Intermarket Surveillance Group (``ISG'') from other
exchanges who are members or affiliates of the ISG. The Exchange may
also obtain trading information from various commodity futures
exchanges worldwide that have entered into comprehensive surveillance
sharing agreements with the Exchange. In connection with SGOL, the
Exchange represents that it may obtain information from the New York
Mercantile Exchange, Inc. (``NYMEX''), pursuant to a comprehensive
surveillance sharing agreement, related to any financial instrument
that is based, in whole or in part, upon an interest in or performance
of gold. Prior to listing and trading options on SGOL, the Exchange
represents that it will either have the ability to obtain specific
trading information via ISG or through a comprehensive surveillance
sharing agreement with the marketplace or marketplaces with last sale
reporting that represent(s) the highest volume in derivatives (options
or futures) on the underlying gold.
---------------------------------------------------------------------------

    \6\ See NASDAQ Options Rules, Chapter III, Sections 7 (Position
Limits), and 9 (Exercise Limits) and Chapter XIII, Section 3 (Margin
Requirements).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest,
by amending its rules to accommodate the listing and trading of options
on SGOL, which will benefit investors by providing them with valuable
risk management tools.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change: (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms does not become operative for 30 days after the
date of the filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with 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 fulfilled this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requests that the Commission waive
the 30-day operative delay so that the Exchange can list and trade
options on ETFS Gold Trust immediately. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest.\11\ The Commission notes the
proposal is substantively identical to proposals previously approved by
the Commission, and does not raise any new regulatory issues.\12\ For
these reasons, the Commission designates the proposed rule change as
operative upon filing.
---------------------------------------------------------------------------

    \11\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \12\ See Securities Exchange Act Release Nos. 61483 (February 3,
2010), 75 FR 6753 (February 10, 2010) (SR-CBOE-2010-007, SR-ISE-
2009-106, SR-NYSEAmex-2009-86, and SR-NYSEArca-2009-110), 62464
(July 7, 2010), 75 FR 40007 (July 13, 2010) (SR-BX-2010-045) (rule
filings to enable the listing and trading of options on ETFS Gold
Trust on CBOE, ISE, NYSE Amex, NYSE Arca and BOX).
---------------------------------------------------------------------------

    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 proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2011-109 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-NASDAQ-2011-109. 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 the filing also will be
available for inspection and copying at the principal office of the
Exchange.\13\ 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-
NASDAQ-2011-109 and should be submitted on or before September 7, 2011.
---------------------------------------------------------------------------

    \13\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-20900 Filed 8-16-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: September 25, 2006 (Volume 71, Number 185)]
[Notices]
[Page 55782-55783]
[DOCID:fr25se06-23]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of FERC Staff Attendance at Southwest Power Pool Annual
Members Meeting and Meetings of Southwest Power Pool Board of
Directors/Members Committee, Southwest Power Pool Market & Operations
Policy Committee, and Southwest Power Pool Regional State Committee

September 18, 2006.
    The Federal Energy Regulatory Commission hereby gives notice that
members of its staff may attend the meetings of the Southwest Power
Pool (SPP) Board of Directors/Members Committee, SPP Markets &
Operations Policy Committee, and SPP Regional State Committee noted
below. Their

attendance is part of the Commission's ongoing outreach efforts.
    Board of Directors/Members Committee: September 29, 2006 (10 a.m.-3
p.m. CDT), Sheraton Grand Hotel DFW, 4440 West John Carpenter Freeway,
Irving, TX 75063;<PHONE_NUMBER>.
    Markets & Operations Policy Committee: October 10-11, 2006 (1 p.m.-
5 p.m. and 8 a.m.-3 p.m. CDT), Marriott Tulsa Southern Hills, 1902 East
71st St., Tulsa, OK 74136;<PHONE_NUMBER>.
    SPP Regional State Committee: October 23, 2006 (1 p.m.-5 p.m. CDT),
DoubleTree Hotel at Warren Place, 6110 South Yale Ave., Tulsa, OK
74136;<PHONE_NUMBER>.
    Board of Directors/Members Committee and Annual Members Meeting:
October 24, 2006 (8:30 a.m.-3 p.m. CDT), DoubleTree Hotel at Warren
Place, 6110 South Yale Ave., Tulsa, OK 74136;<PHONE_NUMBER>.
    The discussions may address matters at issue in the following
proceedings:
    Docket No. ER05-799, Southwest Power Pool, Inc.
    Docket No. ER05-526, Southwest Power Pool, Inc.
    Docket No. ER05-106, Entergy Services, Inc.
    Docket No. ER05-1416, Southwest Power Pool, Inc.
    Docket No. ER06-15, Southwest Power Pool, Inc.
    Docket No. ER06-432, Southwest Power Pool, Inc.
    Docket No. ER06-448, Southwest Power Pool, Inc.
    Docket No. ER06-451, Southwest Power Pool, Inc.
    Docket No. ER06-641, Southwest Power Pool, Inc.
    Docket No. ER06-729, Southwest Power Pool, Inc.
    Docket No. ER06-767, Southwest Power Pool, Inc.
    Docket No. ER06-1467, Southwest Power Pool, Inc.
    Docket No. EC06-46, Southwest Power Pool, Inc.
    Docket Nos. EL06-61 and EL06-71, Associated Electric Cooperative,
Inc. v. Southwest Power Pool.
    These meetings are open to the public.
    For more information, contact Tony Ingram, Office of Energy Markets
and Reliability, Federal Energy Regulatory Commission at<PHONE_NUMBER>
or<EMAIL_ADDRESS>
Magalie R. Salas,
Secretary.
[FR Doc. E6-15667 Filed 9-22-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 122 (Tuesday, June 25, 2019)]
[Notices]
[Pages 29889-29892]
[FR Doc No: 2019-13411]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86145; File No. SR-BOX-2019-21]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rules
Regarding the Give-Up and Clearance of Exchange Transactions

June 19, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 5, 2019, BOX Exchange LLC (the ``Exchange'') 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 self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule from
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend BOX Rule 7190 (Clearing Participant
Give-Up), and BOX Rule 7200 (Submission for Clearance), in order to
codify that for each transaction in which an Options Participant \3\
participates, the Options Participant may indicate, at the time of the
trade or through post trade allocation, any OCC number of a Clearing
Participant \4\ through which the transaction will be cleared (``Give
Up''), and to establish a new ``Opt In'' process by which a Clearing
Participant can restrict one or more of its OCC numbers and thereafter
designate certain Options Participants as authorized to Give Up a
restricted clearing number. The text of the proposed rule change is
available from the principal office of the Exchange, at the
Commission's Public Reference Room and also on the Exchange's internet
website at http://boxoptions.com.
---------------------------------------------------------------------------

    \3\ The term ``Options Participant'' means a firm, or
organization that is registered with the Exchange pursuant to the
Rule 2000 Series for purposes of participating in trading on a
facility of the Exchange. See Exchange Rule 100(41).
    \4\ The term ``Clearing Participant'' means an Options
Participant that is self-clearing or an Options Participant that
clears BOX Transactions for other Options Participants of BOX. See
Exchange Rule 100(13).
---------------------------------------------------------------------------

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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its requirements in BOX Rule 7190
and Rule 7200, related to the give up of a Clearing Participant by an
Options Participant on Exchange transactions. This proposed rule change
is submitted in order to follow an industry-wide initiative and align
the Exchange with other exchanges in the industry. The proposed rule
change is based on several recently-approved rule changes submitted by
other options exchanges.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 34-85883 (May 17,
2019) (Order Approving SR-ISE-2019-14); See also Securities Exchange
Act Release No. 34-84981 (February 14, 2019) (Order Approving SR-
Phlx-2018-72), Securities Exchange Act Release No. 34-85871 (May 16,
2019) (Order Approving SR-NYSEArca-2019-32), Securities Exchange Act
Release No. 34-85392 (March 21, 2019) (Order Approving SR-MIAX-2019-
05), Securities Exchange Act Release No. 34-85397 (March 22, 2019)
(Order Approving SR-PEARL-2019-04), Securities Exchange Act Release
No. 34-85875 (May 16, 2019) (Order Approving SR-NYSEAMER-2019-17).
---------------------------------------------------------------------------

    By way of background, to enter transactions on the Exchange, an
Options Participant must either be a Clearing Participant or must have
a Clearing Participant agree to accept financial responsibility for all
of its transactions. Additionally, Rule 7190 currently provides that
when an Options Participant executes a transaction on the Exchange, it
must give up the name of a Clearing Participant (the ``Give Up'')
through which the transaction will be cleared (i.e. ``give up'').
    Recently, certain Clearing Participants, in conjunction with the
Securities Industry and Financial Markets Association (``SIFMA''),
expressed concerns related to the process by which executing brokers on
U.S. options exchanges (``Exchanges'') are allowed to designate or
`give up' a clearing firm for the purposes of clearing particular
transactions. The SIFMA-affiliated Clearing Participants have recently
identified the current give up process as a significant source of risk
for clearing firms, and subsequently requested that the Exchanges
alleviate this risk by amending exchange rules governing the give up
process.\6\
---------------------------------------------------------------------------

    \6\ See id.
---------------------------------------------------------------------------

Proposed Rule Change
    Based on the above, the Exchange now seeks to amend its rules
regarding the current give up process in order to allow a Clearing
Participant to opt in, at the Options Clearing Corporation (``OCC'')
clearing number level, to a feature that, if enabled by the Clearing
Participant, will allow the Clearing Participant to specify which
Options Participants are authorized to give up that OCC clearing
number. As proposed, Rule 7190 will be amended to provide that for each
transaction in which an Options Participant participates, the Options
Participant may indicate, at the time of the trade or through post
trade allocation, any OCC number of a Clearing Participant through
which the transaction will be cleared (``Give Up''), provided the
Clearing Participant has not elected to ``Opt In'', as defined in
paragraph (b) of the proposed Rule, and restrict one or more of its OCC
number(s) (``Restricted OCC Number''). An Options Participant may Give
Up a Restricted OCC Number provided the Options Participant has written
authorization as described in proposed paragraph (b)(2) (``Authorized
Participant''). The Exchange believes that this proposal would result
in the fair and reasonable use of resources by both the Exchange and
the Options Participant. In addition, the proposed change would align
the Exchange with competing options exchanges that have proposed rules
consistent with this proposal.\7\
---------------------------------------------------------------------------

    \7\ See supra, note 5.
---------------------------------------------------------------------------

    Proposed Rule 7190 provides that Clearing Participants may request
the Exchange restrict one or more of their OCC clearing numbers (``Opt
In'') as described in subparagraph (b)(1) of proposed Rule 7190. If a
Clearing Participant Opts In, the Exchange will require written
authorization from the Clearing Participant permitting an

Options Participant to Give Up a Clearing Participant's Restricted OCC
Number. An Opt In would remain in effect until the Clearing Participant
terminates the Opt In as described in subparagraph (3). If a Clearing
Participant does not Opt In, that Clearing Participant's OCC number may
be subject to Give Up by any Options Participant.
    Proposed Rule 7190(b)(1) will set forth the process by which a
Clearing Participant may Opt In. Specifically, a Clearing Participant
may Opt In by sending a completed ``Clearing Participant Restriction
Form'' listing all Restricted OCC Numbers and Authorized
Participants.\8\ A copy of the proposed form is attached in Exhibit 3.
A Clearing Participant may elect to restrict one of more OCC clearing
numbers that are registered in its name at OCC. The Clearing
Participant would be required to submit the Clearing Participant
Restriction Form to the Exchange's Membership Department as described
on the form. Once submitted, the Exchange requires ninety days before a
Restricted OCC Number is effective within the Trading Host. This time
period is to provide adequate time for the Options Participant users of
that Restricted OCC Number who are not initially specified by the
Clearing Participant as Authorized Participants to obtain the required
authorization from the Clearing Participant for that Restricted OCC
Number. Such Options Participant users would still be able to Give Up
that Restricted OCC Number during the ninety day period (i.e., until
the number becomes restricted within the Trading Host).
---------------------------------------------------------------------------

    \8\ This form will be available on the Exchange's website. The
Exchange will also maintain, on its website, a list of the
Restricted OCC Numbers, which will be updated on a regular basis,
and the Clearing Participant's contact information to assist Options
Participants (to the extent they are not already Authorized
Participants) with requesting authorization for a Restricted OCC
Number. The Exchange may utilize additional means to inform its
Options Participants of such updates on a periodic basis.
---------------------------------------------------------------------------

    Proposed Rule 7190(b)(2) will set forth the process for Options
Participants to Give Up a Clearing Participant's Restricted OCC Number.
Specifically, an Options Participant desiring to Give Up a Restricted
OCC Number must become an Authorized Participant.\9\ The Clearing
Participant will be required to authorize an Options Participant as
described in subparagraph (1) or (3) of Rule 7190(b) (i.e., through a
Clearing Participant Restriction Form), unless the Restricted OCC
Number is already subject to a Letter of Guarantee that the Options
Participant is a party to, as set forth in Rule 7190(d).
---------------------------------------------------------------------------

    \9\ The Exchange will develop procedures for notifying Options
Participants that they are authorized or unauthorized by Clearing
Participants.
---------------------------------------------------------------------------

    Pursuant to proposed Rule 7190(b)(3), a Clearing Participant may
amend the list of its Authorized Participants or Restricted OCC Numbers
by submitting a new Clearing Participant Restriction Form to the
Exchange's Membership Department indicating the amendment as described
on the form. Once a Restricted OCC Number is effective within the
Trading Host pursuant to Rule 7190(b)(1), the Exchange may permit the
Clearing Participant to authorize, or remove from authorization for, an
Options Participant to Give Up the Restricted OCC Number intra-day only
in unusual circumstances, and on the next business day in all regular
circumstances. The Exchange will promptly notify the Options
Participant if they are no longer authorized to Give Up a Clearing
Participant's Restricted OCC Number. If a Clearing Participant removes
a Restricted OCC Number, any Options Participant may Give Up that OCC
clearing number once the removal has become effective on or before the
next business day.
    Proposed Rule 7190(c) will provide that the Trading Host will not
allow an unauthorized Options Participant to Give Up a Restricted OCC
Number. Specifically, if an unauthorized Give Up with a Restricted OCC
Number is submitted to the System, the System will process that
transaction using the Options Participant's default OCC clearing
number.
    Furthermore, the Exchange proposes to adopt paragraph (d) to Rule
7190 to provide, as is the case today, that a clearing arrangement
subject to a Letter of Guarantee would immediately permit the Give Up
of a Restricted OCC Number by the Options Participant that is party to
the arrangement. Since there is an OCC clearing arrangement already
established in this case, no further action is needed on the part of
the Clearing Participant or the Options Participant.
    The Exchange also proposes to adopt paragraph (e) to Rule 7190 to
provide that an intentional misuse of this Rule is impermissible, and
may be treated as a violation of Rule 3000, titled ``Just and Equitable
Principles of Trade.'' This language will make clear that the Exchange
will regulate an intentional misuse of this Rule (e.g., sending orders
to a Clearing Participant's OCC account without the Clearing
Participant's consent), and such behavior would be a violation of
Exchange rules.
    Furthermore, the Exchange proposes to adopt paragraph (f) to Rule
7190 to codify that notwithstanding anything to the contrary in the
proposed rule, if a Clearing Participant that an Options Participant
has indicated as the Give Up rejects a trade, the Clearing Participant
that has issued a Letter of Guarantee pursuant to Rule 7200(b), for
such executing Options Participant, shall be responsible for the
clearance of the subject trade.
    Finally, the Exchange proposes to amend Rule 7200(b), which
addresses the financial responsibility of Exchange options transactions
clearing through Clearing Participants, to clarify that this Rule will
apply to all Clearing Participants, regardless of whether or not they
elect to Opt In, pursuant to proposed Rule 7190. Specifically, the
Exchange proposes to add that Rule 7200(b) will apply to all Clearing
Participants who either (i) have Restricted OCC Numbers with Authorized
Participants pursuant to Rule 7190, or (ii) have non-Restricted OCC
Numbers.
Implementation
    The Exchange proposes to implement the proposed rule change no
later than by the end of Q3 2019. The Exchange will announce the
implementation date to BOX Participants in a Regulatory Circular.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Securities Exchange Act of 1934
(the ``Act''),\10\ in general, and Section 6(b)(5) of the Act,\11\ 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. In particular, as discussed above, several clearing
firms affiliated with SIFMA have recently expressed concerns relating
to the current give up process, which permits Options Participants to
identify any Clearing Participants as a designated give up for purposes
of clearing particular transactions, and have identified the current
give up process (i.e., a process that lacks authorization)

as a significant source of risk for clearing firms.
---------------------------------------------------------------------------

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

    The Exchange believes that the proposed changes to Rule 7190 help
alleviate this risk by enabling Clearing Participants to `Opt In' to
restrict one or more of its OCC clearing numbers (i.e., Restricted OCC
Numbers), and to specify which Authorized Participant may Give Up those
Restricted OCC Numbers. As described above, all other Options
Participants would be required to receive written authorization from
the Clearing Participant before they can Give Up that Clearing
Participant's Restricted OCC Number. The Exchange believes that this
authorization provides proper safeguards and protections for Clearing
Participants as it provides controls for Clearing Participants to
restrict access to their OCC clearing numbers, allowing access only to
those Authorized Participants upon their request. The Exchange also
believes that its proposed Clearing Participant Restriction Form allows
the Exchange to receive in a uniform fashion, written and transparent
authorization from Clearing Participants, which ensures seamless
administration of the Rule.
    The Exchange believes that the proposed Opt In process strikes the
right balance between the various views and interests across the
industry. For example, although the proposed rule would require Options
Participants (other than Authorized Participants) to seek authorization
from Clearing Participants in order to have the ability to give them
up, each Options Participant will still have the ability to Give Up a
Restricted OCC Number that is subject to a Letter of Guarantee without
obtaining any further authorization if that Options Participant is
party to that arrangement. The Exchange also notes that to the extent
that the executing Options Participant has a clearing arrangement with
a Clearing Participant (i.e., through a Letter of Guarantee), a trade
can be assigned to the executing Options Participant guarantor.\12\
Accordingly, the Exchange believes that the proposed rule change is
reasonable and continues to provide certainty that a Clearing
Participant would be responsible for a trade, which protects investors
and the public interest. Additionally, the Exchange believes that
adopting paragraph (e) of Rule 7190 will make clear that an intentional
misuse of this Rule (e.g., sending orders to a Clearing Participant's
OCC account without the Clearing Participant's consent) will be a
violation of the Exchange's rules, and that such behavior would subject
an Options Participant to disciplinary action. For these reasons, the
Exchange believes that its proposed changes to Rule 7190 and Rule 7200,
is consistent with Section 6(b) of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act 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 mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest, by codifying that for each
transaction in which an Options Participant participates, the Options
Participant may indicate any OCC number of a Clearing Participant
through which the transaction will be cleared, provided the Clearing
Participant has not elected to Opt In.
---------------------------------------------------------------------------

    \12\ See Rule 7200 (providing that each Options Participant
shall submit a letter of guarantee or other authorization given by a
Clearing Participant, to the Exchange). See also proposed Rule
7190(f).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. In this regard and as indicated
above, the Exchange notes that the rule change is being proposed to
align the Exchange with other options exchanges.\13\ The Exchange does
not believe that the proposed rule change will impose an unnecessary
burden on intra-market competition because it will apply equally to all
similarly situated Options Participants. The Exchange also notes that,
should the proposed changes make BOX more attractive for trading,
market participants trading on other exchanges can always elect to
become Options Participants on BOX to take advantage of the trading
opportunities.
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    \13\ See supra, note 5.
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    Furthermore, the proposed rule change does not address any
competitive issues and ultimately, the target of the Exchange's
proposal is to reduce risk for Clearing Participants under the current
give up model. Clearing firms make financial decisions based on risk
and reward, and while it is generally in their beneficial interest to
clear transactions for market participants in order to generate profit,
it is the Exchange's understanding from SIFMA and clearing firms that
the current process can create significant risk when the clearing firm
can be given up on any market participant's transaction, even where
there is no prior customer relationship or authorization for that
designated transaction.
    In the absence of a mechanism that governs a market participant's
use of a Clearing Participant's services, the Exchange's proposal may
indirectly facilitate the ability of a Clearing Participant to manage
their existing relationships while continuing to allow market
participant choice in broker execution services. While Clearing
Participants may compete with executing brokers for order flow, the
Exchange does not believe this proposal imposes an undue burden on
competition. Rather, the Exchange believes that the proposed rule
change balances the need for Clearing Participants to manage risks and
allows them to address outlier behavior from executing brokers while
still allowing freedom of choice to select an executing broker.

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 comments on the
proposed rule change.

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

    Pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) \15\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-BOX-2019-21 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-BOX-2019-21. 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-BOX-2019-21 and should be submitted on
or before July 16, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13411 Filed 6-24-19; 8:45 am]
BILLING CODE 8011-01-P