[Federal Register Volume 79, Number 26 (Friday, February 7, 2014)]
[Notices]
[Pages 7485-7486]
[FR Doc No: 2014-02619]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71467; File No. SR-FINRA-2013-053]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving a Proposed Rule Change To Update the
Rules Governing the Alternative Display Facility

February 3, 2014.

I. Introduction

    On December 9, 2013, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to update the rules governing the Alternative
Display Facility (``ADF''). The proposed rule change was published for
comment in the Federal Register on December 26, 2013.\3\ The Commission
received no comment letters regarding the proposed rule change. This
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 71147 (December 19,
2013), 78 FR 78451 (``Notice'').
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II. Description

    The ADF is a quotation collection and trade reporting facility that
provides ADF Market Participants the ability to post quotations,
display orders and report transactions in NMS stocks for submission to
the Securities Information Processors for consolidation and
dissemination to vendors and other market participants.\4\ In addition,
the ADF delivers real-time data to FINRA for regulatory purposes,
including enforcement of requirements imposed by Regulation NMS.\5\
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    \4\ See Notice, supra note 3.
    \5\ See 17 CFR 242.600 et seq.
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    FINRA proposes to update the rules governing the ADF to: (i)
Reflect regulatory requirements that have been put into place since the
last comprehensive revision of the ADF rules and to enhance operational
efficiency; (ii) address changes to the ADF's functionality resulting
from FINRA's proposed migration of the ADF to the Multi-Product
Platform (``MPP''); (iii) conform the ADF trade reporting rules, to the
extent practicable, to current FINRA rules relating to trade reporting
to the FINRA Trade Reporting Facilities (``TRFs''); and (iv) make other
non-substantive changes.\6\ FINRA's changes to the ADF rules are
described below.
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    \6\ See Notice, supra note 3.
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    FINRA proposes to revise FINRA Rule 6272, governing quotations
posted on the ADF, to modify the quotation pricing obligations for
Registered Reporting ADF Market Makers in response to the National
Market System Plan to Address Extraordinary Market Volatility (``Limit
Up-Limit Down Plan'').\7\ As amended, FINRA Rule 6272(a)(2) would
specify that the suspension of pricing obligations for ADF Market
Makers would apply during a trading halt except as permitted under the
Limit Up-Limit Down Plan.\8\
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    \7\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012).
    \8\ For example, as FINRA notes, the Limit up-Limit Down Plan
provides that ``[n]o trades in an NMS Stock shall occur during a
Trading Pause, but all bids and offers may be displayed.'' Id. at 77
FR 33514.
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    FINRA also proposes to amend Rule 6272(b) to update the minimum
quotation increment for ADF-eligible securities to account for
quotations under $1.\9\ As revised, Rule 6272(b) would provide that the
minimum quotation increment for quotations below $1.00 in all ADF-
eligible securities shall be $0.0001. FINRA states that this provision
will enable ADF Participants to submit quotations for issues under $1
in an increment that is consistent with Rule 612 of Regulation NMS.\10\
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    \9\ FINRA Rule 6220 defines an ``ADF-eligible security'' as an
NMS stock as defined in Rule 600(b)(47) of SEC Regulation NMS.
    \10\ Rule 612 of Regulation NMS permits, among other things,
quotations in NMS stocks that are less than $1.00 per share to be
priced in increments of $0.0001. See 17 CFR 242.612(b).
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    FINRA proposes to provide additional detail as to how a Registered
Reporting ADF ECN may voluntarily terminate its registration. As
proposed, the rule will state that a Registered Reporting ADF ECN may
voluntarily withdraw from participation on the ADF upon providing,
through electronic delivery, written notice to FINRA Market Operations
of its intention to withdraw as a Registered Reporting ADF ECN, with
such withdrawal to be effective upon the first trading day following
the issuance of the written notice announcing the Registered Reporting
ADF ECN's intent to withdraw, or such other date as specified in the
written notice.
    FINRA states that it requires ADF Trading Centers to report order
information to it so that FINRA can have detailed information regarding
the origination of orders underlying an ADF Trading Center's quotation
and use that information to enhance its ability to monitor quotation
activity on the ADF. FINRA proposes various modifications to the order
reporting requirements set forth in FINRA Rule 6250, governing quote
and access requirements, to enhance FINRA's ability to efficiently
monitor quoting activity on the ADF on an automated basis and conduct
surveillance.\11\ In particular, FINRA believes that certain of these
changes would better reflect the order information necessary for its
surveillance programs related to the Firm Quote Rule,\12\ and to reduce
the reporting of excess information that may over-burden its systems
and lead to false alerts.\13\ Further, FINRA proposes to update the
reporting requirements for Order Time and Order Response Time in FINRA
Rule 6250(b) so that ADF Trading Centers would report this information
in hours, minutes, seconds and milliseconds if the ADF Trading Center's
system captures such information in milliseconds.\14\
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    \11\ See Notice, supra note 3, at 78452.
    \12\ See 17 CFR 242.602(b)(2); see also FINRA Rule 5220.
    \13\ See Notice, supra note 3, at 78452-78453.
    \14\ See Proposed FINRA Rules 6250(b)(1)(I) and 6250(b)(2)(C).
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    FINRA proposes to amend FINRA Rules 6281 and 6282 and the Rule 7100
Series relating to trade reporting to the ADF to conform those rules,
to the extent practicable, to current FINRA rules relating to trade
reporting to the TRFs.\15\ FINRA believes that by conforming the trade
reporting requirements for the ADF and TRFs, to the extent practicable,
the proposed rule change will promote more consistent trade reporting
by members and a more complete and accurate audit trail. FINRA notes
that most of the proposed conforming changes to FINRA Rules 6281 and
6282 and the Rule 7100 Series are technical and non-substantive in
nature, and FINRA does not believe that any of the proposed changes
would require members to make systems changes in order to comply.
Furthermore, FINRA members that currently report to one of the TRFs
would already be familiar with the rule amendments that are proposed
herein. FINRA proposes to amend FINRA Rule 7510(a) to assess a $0.25
fee to each party that cancels or corrects a trade.\16\ FINRA states
that the purpose of adding this new change is to defray the
administrative costs incurred by FINRA in processing corrective
transaction charges, including cancel and correct requests.\17\
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    \15\ See FINRA Rule 6300 and 7200 Series governing TRFs.
    \16\ See Notice, supra note 3, at 78455.
    \17\ See id.

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    FINRA also proposes to delete FINRA Rule 7530, which assesses a
minimum charge of $5,000 for installation costs associated with
connecting to the ADF.\18\ FINRA proposes to delete this provision
because it is no longer applicable, since the ADF is software-based and
there is no hardware to install, remove or relocate.\19\ Finally, FINRA
proposes a number of technical changes throughout the ADF rules.
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    \18\ See id.
    \19\ See id.
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III. Discussion

    After careful review of the proposal, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
the rules and regulations thereunder that are applicable to a national
securities association.\20\ In particular, the Commission finds that
the proposed rule change is consistent with Section 15A(b)(6) of the
Act,\21\ which requires, among other things, that the rules of a
national securities association 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 facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Commission also finds that the proposal is
consistent with Section 15A(b)(5) of the Act,\22\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees, and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls.
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    \20\ In approving the proposed rule change, the Commission has
considered the proposed rule change's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \21\ 15 U.S.C. 78o-3(b)(6).
    \22\ 15 U.S.C. 78o-3(b)(5).
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    The Commission notes that FINRA believes that the proposed changes
are either: (1) Non-substantive; (2) delete functionalities that will
not be available following the migration to the MPP; (3) reflect
regulatory changes; (4) conform the ADF rules to other FINRA rules; or
(5) otherwise increase the operational and regulatory efficiency of the
ADF. To the extent that a number of the changes are non-substantive or,
in the case of conforming the ADF trade reporting requirements to the
TRF trade reporting requirements, mirror requirements currently
applicable to FINRA members, FINRA does not believe that members will
be significantly or adversely affected by these changes. In addition,
FINRA also believes that certain of the proposed changes, such as the
provision to allow for the voluntary termination of registration by a
Registered Reporting ADF ECN, may increase operational and regulatory
efficiency for FINRA and ADF Market Participants alike.
    As noted above, the proposed rule change is intended to update the
rules governing the ADF to reflect changes to regulatory requirements
that have occurred since FINRA last updated the ADF rules, as well as
make a number of non-substantive changes to reflect changes in FINRA
departments or systems, or to correct other outdated references.\23\
The Commission notes that proposed changes reflecting the Limit Up-
Limit Down Plan and allowing a minimum quoting increment of less than
$0.01 for quotations below $1, modify the ADF rules to reflect
regulatory initiatives that were previously approved or promulgated by
the Commission.\24\ Further, the Commission believes that updating the
rules to correct outdated references and reflect current FINRA
departments and systems should provide greater clarity in FINRA's rules
and thereby, eliminate potential confusion by market participants.
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    \23\ Examples of such changes include FINRA's proposal to change
the reference from TRACS to ``ADF'' or ``the System'' and changing
the references from ``FINRA ADF Operations'' to ``FINRA Market
Operations'' or ``FINRA Product Management'' as applicable. See
Notice, supra note 3, at 78456.
    \24\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (Limit up-Limit Down adopting
release); and Rule 612 of Regulation NMS, 17 CFR 242.612(b)
(permitting quotations in NMS stocks that are less than $1.00 per
share to be priced in increments of $0.0001).
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    FINRA also proposes to delete rules regarding certain
functionalities that would no longer be available following the
migration of the ADF to MPP. In this regard, FINRA has represented that
these functionalities are not currently being utilized, and would not
be offered on the ADF upon its migration to the MPP.\25\ Accordingly,
the Commission believes that these changes should ensure that the rules
accurately reflect the operation of the ADF upon its migration to the
new platform.
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    \25\ See Notice, supra note 3, at 78456.
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    The Commission also believes that FINRA's modifications to its
order reporting and trade reporting rules, including making the ADF
rules more consistent with the rules governing TRFs, are also
consistent with the Act. The Commission believes that the proposed rule
change should enhance FINRA's ability to monitor quoting activity and
help to ensure that FINRA will continue to receive important
information necessary to conduct surveillance, while reducing the
receipt of excess order information that may contribute to false
surveillance alerts. Further, FINRA has represented that the proposed
rule change would promote more consistent trade reporting by members by
better aligning the ADF trade reporting requirements with the TRF trade
reporting requirements and would create a more complete and accurate
audit trail.\26\ Moreover, FINRA has represented that it does not
believe that this proposed rule change would require FINRA members to
make any systems changes to comply with the ADF rules.\27\ Accordingly,
the Commission believes that FINRA's proposed changes to the rules
governing the ADF should help to ensure that FINRA could more
efficiently monitor and prevent manipulative acts and practices on the
ADF and could help foster cooperation and coordination with persons
engaged in facilitating transactions in securities.
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    \26\ See id. at 78455.
    \27\ See id.
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    The Commission also finds that the proposed changes to the ADF fees
are consistent with the Act. FINRA represents that the $0.25 charge
would apply to ADF Market Participants that cancel or correct a trade
in order to defray the administrative costs incurred by FINRA in
processing corrective transactions, including cancel and correct
requests.\28\ The Commission also believes that it is reasonable for
FINRA to delete its fees associated with connecting to the ADF since
those fees are no longer applicable.
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    \28\ See id.
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    For these reasons, the Commission believes that the proposal is
consistent with the Act.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\29\ that the proposed rule change (SR-FINRA-2013-053) be, and
hereby is, approved.
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    \29\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02619 Filed 2-6-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 227 (Tuesday, November 30, 2021)]
[Notices]
[Pages 68009-68014]
[FR Doc No: 2021-25992]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93662; File No. SR-NASDAQ-2021-094]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Adopt a Post-Only Quote Configuration Risk Protection

November 23, 2021.
    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 November 19, 2021, 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, 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

    The Exchange proposes to amend The Nasdaq Options Market LLC
(``NOM'') Rules at Options 3, Section 15, Risk Protections, to adopt an
optional Post-Only Quoting Protection for NOM Market Makers.
    The Exchange also proposes to correct certain minor technical
amendments within Options 1, Section 1, ``Definitions,'' and Options 3,
Section 7, ``Types of Orders and Order and Quote Protocols.'' \3\
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    \3\ Options 3, Section 7 describes the order types available on
NOM as well as the protocols through which market participants may
submit either orders or quotes into NOM.
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    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The proposal amends NOM's Rules at Options 3, Section 15, Risk
Protections, to codify an optional Post-Only Quoting Protection for NOM
Market Makers.\4\ This optional risk protection allows NOM Market
Makers to prevent their quotes from removing liquidity from the
Exchange's order book upon entry. The Exchange also proposes to correct
certain minor technical amendments within Options 1, Section 1,
``Definitions,'' and Options 3, Section 7, ``Types of Orders and Order
and Quote Protocols.'' \5\
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    \4\ Today, NOM offers this functionality which is not currently
codified in its rules. Today, no Participant has configured their
ports to utilize this feature.
    \5\ Options 3, Section 7 describes the order types available on
NOM as well as the order and quote protocols available to submit
orders and quotes into NOM.
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    Specifically, this optional risk protection would be codified
within Options 3, Section 15(c)(3). With this risk protection, NOM
Market Makers may elect to configure their SQF \6\ or QUO \7\ protocols
to prevent their quotes from removing liquidity (``Post-Only Quote
Configuration''). This Post-Only Quote Configuration re-prices or
cancels a NOM Market Maker's quote that would otherwise lock or cross
any resting order \8\ or quote on the Exchange's order book upon entry.
The Exchange notes that this functionality does not apply during an
Opening Process \9\ because the order book is established once options
series are open for trading.
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    \6\ ``Specialized Quote Feed'' or ``SQF'' is an interface that
allows Market Makers to connect, send, and receive messages related
to quotes and Immediate-or-Cancel Orders into and from the Exchange.
Features include the following: (1) Options symbol directory
messages (e.g., underlying instruments); (2) system event messages
(e.g., start of trading hours messages and start of opening); (3)
trading action messages (e.g., halts and resumes); (4) execution
messages; (5) quote messages; (6) Immediate-or-Cancel Order
messages; (7) risk protection triggers and purge notifications; and
(8) opening imbalance messages. The SQF Purge Interface only
receives and notifies of purge requests from the Market Maker.
Market Makers may only enter interest into SQF in their assigned
options series. See Options 3, Section 7(e)(1)(B).
    \7\ ``Quote Using Orders'' or ``QUO'' is an interface that
allows Market Makers to connect, send, and receive messages related
to single-sided orders to and from the Exchange. Order Features
include the following: (1) Options symbol directory messages (e.g.,
underlying); (2) system event messages (e.g., start of trading hours
messages and start of opening); (3) trading action messages (e.g.,
halts and resumes); (4) execution messages; (5) order messages; and
(6) risk protection triggers and cancel notifications. Orders
submitted by Market Makers over this interface are treated as
quotes. Market Makers may only enter interest into QUO in their
assigned options series. See Options 3, Section 7(e)(1)(D) as
proposed to be amended herein.
    \8\ This would include any re-priced orders as described in
Options 3, Section 5(d), any re-priced quotes as described in
Options 3, Section 4(b)(6), Post-Only Orders, as described in
Options 3, Section 7(a)(9), and Price Improving Orders, as described
in Options 3, Section 7(a)(5) and Options 3, Section 5(c). Post-Only
Orders and Price Improving Orders may re-price.
    \9\ The Exchange's Opening Process is described at Options 3,
Section 8.
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    Participants may elect whether to re-price or cancel their quotes
with this functionality. When configured for re-price, quotes are re-
priced to $.01 below the current low offer (for bids) or above the
current best bid (for offers) and displayed by the System at one
minimum price increment below the current low offer (for bids) or above
the current best bid (for offers). Notwithstanding the aforementioned,
and as is the case today, if a quote with a Post-Only Quote
Configuration would not lock or cross an order on the System but would
lock or cross the NBBO, the quote will be handled pursuant to Options
3, Section 4(b)(6). When configured for cancel, Participants will have
their quotes returned whenever the quote would lock or cross the NBBO
or be placed on the book at a price other than its limit price.
    This optional risk protection enables NOM Market Makers to better
manage their risk when quoting on NOM. Today, BOX Exchange LLC
(``BOX''),\10\ NYSE Arca, Inc. (``NYSE Arca''),\11\ and MIAX Emerald,
LLC (``MIAX Emerald'') \12\ have similar functionality. BOX does not
permit Market Maker's quotes to take liquidity and will reject the
quote. Other options markets, unlike BOX, continue to permit their
market makers to add or remove liquidity from the order book.\13\ NYSE
Arca and MIAX Emerald will re-price quotes one minimum price variation
(``MPV'') to avoid the quote from trading as a liquidity taker against
the resting order. The Exchange's proposal permits a NOM Market Maker a
choice as to whether to cancel or re-price its quote when using the
Post-Only Quote Configuration. Unlike NYSE Arca and MIAX Emerald, the
Exchange would re-price $.01 below the current low offer (for bids) or
above the current best bid (for offers) and display the quote at one
minimum price increment below the current low offer (for bids) or above
the current best bid (for offers).
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    \10\ BOX Rules provide, ``Notwithstanding Rule 100(a)(56), all
quotes and quote updates on BOX after the opening are liquidity
adding only. Specifically, after the Opening Match pursuant to Rule
7070, a Market Maker's quote will not execute against a resting
order or quote on the BOX Book. If an incoming quote is marketable
against the BOX Book and will execute against a resting order or
quote, it will be rejected.'' See BOX IM-8050-3. See also Securities
Exchange Act Release No. 79311 (November 15, 2016), 81 FR 83322
(November 21, 2016) (SR-BOX-2016-45) (Order Approving a Proposed
Rule Change To Amend the Treatment of Quotes To Provide That All
Quotes on BOX Are Liquidity Adding Only).
    \11\ NYSE Arca permits a market maker to optionally designate a
quote as ``Add Liquidity Only.'' See NYSE Arca Rule 6.37A-
O(a)(3)(B).
    \12\ See MIAX Emerald Rule 517(a)(1)(i).
    \13\ Miami International Securities Exchange LLC (``MIAX'')
permits its market makers to add and remove liquidity from the order
book. See MIAX's Fee Schedule which delineates Maker and Taker
pricing. Nasdaq ISE, LLC (``ISE'') also permits market makers to add
and remove liquidity from the order book. See ISE's Pricing Schedule
at Options 7.
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    Of note, today, all NOM participants may utilize the Post-Only
Order type.\14\
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    \14\ ``Post-Only Order'' is an order that will not remove
liquidity from the System. Post-Only Orders are to be ranked and
executed on the Exchange or cancelled, as appropriate, without
routing away to another market. Post-Only Orders are evaluated at
the time of entry with respect to locking or crossing other orders
as follows: (i) If a Post-Only Order would lock or cross an order on
the System, the order will be re-priced to $.01 below the current
low offer (for bids) or above the current best bid (for offers) and
displayed by the System at one minimum price increment below the
current low offer (for bids) or above the current best bid (for
offers); and (ii) if a Post-Only Order would not lock or cross an
order on the System but would lock or cross the NBBO as reflected in
the protected quotation of another market center, the order will be
handled pursuant to Options 3, Section 5(b)-(d). Participants may
choose to have their Post-Only Orders returned whenever the order
would lock or cross the NBBO or be placed on the book at a price
other than its limit price. Post-Only Orders received prior to the
opening will be eligible for execution during the opening cross and
will be processed as per Options 3, Section 8. Post-Only Orders
received after market close will be rejected. Post-Only Orders may
not have a time-in-force designation of Good Til Cancelled or
Immediate or Cancel. (e) Entry and Display of Orders and Quotes.
Participants may enter orders and quotes into the System as
specified below. See Options 3, Section 7(a)(9).

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    Below are some examples of the Post-Only Quote Configuration
functionality as well as an example of re-pricing of a Price Improving
Order.\15\
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    \15\ ``Price Improving Order'' is an order to buy or sell an
option at a specified price at an increment smaller than the minimum
price variation in the security. Price Improving Orders may be
entered in increments as small as one cent. Price Improving Orders
that are available for display shall be displayed at the minimum
price variation in that security and shall be rounded up for sell
orders and rounded down for buy orders. See Options 3, Section
7(a)(5).
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Re-Priced Price Improving Order--Penny Interval Program Display and
Execution Example--Non-Penny Interval Program (Options 3, Section
7(a)(5))
 Non-Penny Interval Program MPV in open trading state
 Market Maker A quote $0.90 (10) x $1.00 (10)
 ABBO $0.85 x $1.05
 Firm A sends Price Improving Order to buy 5 contracts @$0.93
    [cir] Price Improving Order displays $0.90 bid, which now shows (15
quantity)
 Order arrives to sell 10 contracts @$0.90
    [cir] 5 contracts execute with Firm A @$0.93
    [cir] 5 contracts execute with Market A @$0.90

    In this example, the inbound order received price improvement as a
result of the available non-displayed interest on the order book.
Re-Priced Post-Only Order--Penny Interval Program Display and Execution
Example--Non-Penny Interval Program (Options 3 Section 7(a)(9))
 Non-Penny Interval Program MPV in open trading state
 Market Maker A quote $0.95 (10) x $1.00 (10)
 ABBO $0.85 x $1.05
 Firm A sends Post-Only Order to buy 5 contracts @$1.00
    [cir] Post-Only Order re-prices on order book to $0.99
    [cir] Displays on order book @$0.95 (bid), which now shows (15
quantity)
 Order to sell 10 contracts arrives @$0.95
    [cir] 5 contracts execute with Firm A @$0.99
    [cir] 5 contracts execute with Market A @$0.95

    In this example, the inbound order received price improvement as a
result of the available non-displayed interest on the order book.
Re-Priced Post-Only Quote--Penny Interval Program Display and Execution
Example--Non-Penny Interval Program (Options 3 Section 7(a)(9))
 Non-Penny Program MPV in open trading state
 Market Maker A quote $0.95 (10) x $1.00 (10)
 ABBO $0.85 x $1.05
 Market Maker B (configured at the badge level for Post-Only
and selection of re-price upon quote) quote arrives 1.00 (5) x $1.05
(5)
    [cir] Bid side quote re-prices on order book to $0.99
    [cir] Displays on order book @$0.95 (bid), which now shows (15
quantity)
    [cir] Offer side quote books and displays at $1.05
 Order to sell 10 contracts arrives @$0.95
    [cir] 5 contracts execute with Market Maker B @$0.99
    [cir] 5 contracts execute with Market A @$0.95

    In this example, the inbound order received price improvement as a
result of the available non-displayed interest on the order book.
Options 3, Sections 1 and 7
    The Exchange proposes to correct certain minor technical amendments
within Options 1, Section 1, ``Definitions,'' and Options 3, Section 7,
``Types of Orders and Order and Quote Protocols.''
    First, the Exchange proposes to update a citation within Options 3,
Section 7(a)(9) which describes the Post-Only Order. The citation to
Options 3, Section 22(b)(3)(C) is incorrect. The Exchange proposes to
replace this citation with Options 3, Section 5(b)-(d) \16\ which
describes re-pricing for locked and crossed quotes.
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    \16\ Options 3, Section 5(b)-(d) provides,
    ``(b) NBBO Price Protection. Orders, other than Intermarket
Sweep Orders (as defined in Rule Options 5, Section 1(8) will not be
automatically executed by the System at prices inferior to the NBBO
(as defined in Options 5, Section 1(10)). There is no NBBO price
protection with respect to any other market whose quotations are
Non-Firm (as defined in Options 5, Section 1(11)).
    (c) The System automatically executes eligible orders using the
Exchange's displayed best bid and offer (``BBO'') or the Exchange's
non-displayed order book (``internal BBO'') if the best bid and/or
offer on the Exchange has been repriced pursuant to subsection (d)
below. The contract size associated with Displayed Price Improving
Orders to buy (sell) are displayed at the MPV below (above) the
price of the Price Improving Order. Price Improving Orders will not
be permitted to create a locked or crossed market or to cause a
trade through violation.
    (d) Trade-Through Compliance and Locked or Crossed Markets. An
order will not be executed at a price that trades through another
market or displayed at a price that would lock or cross another
market. An order that is designated by the member as routable will
be routed in compliance with applicable Trade-Through and Locked and
Crossed Markets restrictions. An order that is designated by a
member as non-routable will be re-priced in order to comply with
applicable Trade-Through and Locked and Crossed Markets
restrictions. If, at the time of entry, an order that the entering
party has elected not to make eligible for routing would cause a
locked or cross market violation or would cause a trade-through
violation, it will be re-priced to current national best offer (for
bids) or the current national best bid (for offers) and displayed at
one minimum price variance above (for offers) or below (for bids)
the national best price.''
---------------------------------------------------------------------------

    Second, the Exchange proposes to amend the term ``Nasdaq Options
Market Maker'' or ``Options Market Maker'' within Options 1, Section 1,
``Definitions.'' Specifically, this term within Options 1, Section
1(a)(27) describes an Options Participant registered with the Exchange
for the purpose of making markets in options contracts traded on the
Exchange and that is vested with the rights and responsibilities
specified in Options 2 of these Rules. The Exchange proposes to add
``Market Maker'' as an alternative term for a Nasdaq Options Market
Maker.
    Third, the Exchange proposes to amend the term ``NOM Market
Makers'' within Options 3, Section 7(e)(1)(D) which describes the
``Quote Using Orders'' or ``QUO'' quote protocol. The Exchange proposes
to replace the term ``NOM Market Makers'' with ``Market Makers'' as
proposed to be defined within Options 1, Section 1(a)(27).\17\ The
Exchange believes utilizing ``Market Makers'' in addition to ``Nasdaq
Options Market Maker'' and ``Options Market Maker'' will conform the
use of that term throughout the Rulebook.
---------------------------------------------------------------------------

    \17\ The term ``Nasdaq Options Market Maker'' or ``Options
Market Maker'' mean an Options Participant registered with the
Exchange for the purpose of making markets in options contracts
traded on the Exchange and that is vested with the rights and
responsibilities specified in Options 2 of these Rules. See Options
3, Section 1(a)(27).
---------------------------------------------------------------------------

Implementation
    The Exchange proposes to implement this functionality prior to June
30, 2022.

The Exchange will issue an Options Trader Alert to Participants
specifying the date of implementation.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\18\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\19\ in particular, in that it is designed to
promote just and equitable principles of trade and to protect investors
and the public interest by enhancing the risk protections available to
NOM Market Makers. The proposal also promotes the policy goals of the
Commission which has encouraged execution venues, exchanges, and non-
exchanges alike, to enhance risk protection tools and other mechanisms
to decrease risk and increase stability. This proposal is similar to
functionality currently on BOX, NYSE Arca, and MIAX Emerald.\20\
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ See notes 10-12 above.
---------------------------------------------------------------------------

    The Exchange's proposal to amend Options 3, Section 15, Risk
Protections, to codify new paragraph (c)(3) to permit NOM Market Makers
to prevent their quotes from removing liquidity from the Exchange's
order book is consistent with the Act for several reasons. While NOM
Market Makers may manage their risk by utilizing the Post-Only Quote
Configuration to avoid removing liquidity from the Exchange's order
book if their quote would otherwise lock or cross any resting order or
quote on the NOM order book upon entry, there are also downstream
benefits to market participants. Re-priced interest on the order book
provides price improvement for market participants that interact with
that non-displayed interest that is priced better than the NBBO. For
example, a Post-Only Order may re-price to $.01 below the current low
offer (for bids) or above the current best bid (for offers) and is
displayed by the System at one minimum price increment below the
current low offer (for bids) or above the current best bid (for offers)
the result is that there is better-priced non-displayed interest
available on the order book. Market participants are entitled to the
better-priced interest when they interact with the re-priced Post-Only
Order on the order book. Additionally, the benefits of enhanced risk
protections flow downstream to counterparties both within and away from
the Exchange, thereby increasing systemic protections as well.
    The proposed risk protection allows NOM Market Makers the ability
to avoid removing liquidity from the Exchange's order book if their
quote would otherwise lock or cross any resting order or quote on NOM's
order book upon entry, thereby protecting investors and the general
public as NOM Market Makers transact a large number of orders on the
Exchange and bring liquidity to the marketplace. NOM Market Makers
would utilize the proposed risk protection to avoid unexpectedly taking
liquidity with non-displayed, non-transparent interest \21\ on the
order book. As a result of taking liquidity, NOM Market Makers would
incur a taker fee that may impact the NOM Market Maker's ability to
provide liquidity and meet quoting obligations. NOM Market Makers are
required to add liquidity on NOM and, in turn, are rewarded with lower
pricing \22\ and enhanced allocations.\23\ Specifically, the risk
protection would permit NOM Market Makers to add liquidity only and
avoid removing non-displayed interest on the order book thereby
maximizing the benefit of their quoting to bring liquidity to NOM by
allowing NOM Market Makers to provide as much liquidity as possible,
thereby removing impediments to and perfecting the mechanism of a free
and open market and a national market system and protecting investors
and the public interest. There is no impact to other market
participants by introducing this Post-Only Quote Configuration as other
non-Market Makers may continue to utilize the Post-Only Order
functionality and this functionality will continue to benefit
downstream counterparties, both within and away from the Exchange, who
may interact with NOM's non-displayed order book and thereby interact
with order flow that is priced better than the NBBO. Also, other market
participants may interact with the liquidity provided by NOM Market
Makers.
---------------------------------------------------------------------------

    \21\ See note 8 above.
    \22\ See Options 7, Section 2.
    \23\ See Options 3, Section 10.
---------------------------------------------------------------------------

    Of note, NOM does not offer auction functionality. An auction
mechanism may interact adversely with Post-Only Orders or quotes with a
Post-Only Quote Configuration that are re-priced in $0.01 increments
and displayed at minimum price variation increments. In this example,
the inbound auction would reject against the non-displayed Post-Only
Order or quote with a Post-Only Quote Configuration if NOM were to have
an auction mechanism. NOM has no such auctions and, as shown in the
examples described herein, market participants may access any non-
displayed liquidity, resulting in price improvement for the market
participant.
    Unlike other market participants, NOM Market Makers have certain
obligations on the market. NOM Market Makers are required to provide
continuous two-sided quotes on a daily basis \24\ and are subject to
various obligations associated with providing liquidity on the
market.\25\ NOM Market Makers are the sole liquidity providers on the
Exchange and, therefore, are offered certain quote risk protections
noted within Options 3, Section 15 to allow them to manage their risk
more effectively.\26\ The proposed Post-Only Quote Configuration is
another risk protection afforded to NOM Market Makers to assist them in
managing their risk while continuing to comply with their obligations.
The Exchange notes that enhancing the ability of NOM Market Makers to
add liquidity and avoid taking liquidity from the order book promotes
just and equitable principles of trade on NOM and protects investors
and the public interest, thereby enhancing market structure by allowing
NOM Market Makers to add liquidity only. Greater liquidity benefits all
market participants by providing more trading opportunities and
attracting greater participation by NOM Market Makers. Also, an
increase in the activity of NOM Market Makers in turn facilitates
tighter spreads.
---------------------------------------------------------------------------

    \24\ See NOM Options 2, Section 5(d).
    \25\ See NOM Options 2, Section 4.
    \26\ Options 3, Section 15(c) describes the Anti-Internalization
and Quotation Adjustments Protections that are available today to
NOM Market Makers.
---------------------------------------------------------------------------

    Finally, today, all Participants may submit Post-Only Orders.\27\
Offering NOM Market Makers the ability to configure their quotes as
Post-Only will allow all market participants on NOM to enter interest
with a Post-Only designation.
---------------------------------------------------------------------------

    \27\ See Options 3, Section 7(a)(9).
---------------------------------------------------------------------------

Options 3, Sections 1 and 7
    The Exchange proposal to correct certain minor technical amendments
within Options 1, Section 1, ``Definitions,'' and Options 3, Section 7,
``Types of Orders and Order and Quote Protocols'' is consistent with
the Act as updating the citation within Options 3, Section 7(a)(9)
which describes the Post-Only Order, amending the term ``Nasdaq Options
Market Maker'' or ``Options Market Maker'' within Options 1, Section 1,
``Definitions,'' and replacing the term ``NOM Market Makers'' within
Options 3, Section 7(e)(1)(D) which describes the ``Quote Using
Orders'' or ``QUO'' quote protocol with ``Market Makers'' as proposed
to be defined within Options 3, Section 1(a)(27) will bring greater
clarity to these rules. The

Exchange believes utilizing ``Market Makers'' in addition to ``Nasdaq
Options Market Maker'' and ``Options Market Maker'' will conform the
use of that term throughout the Rulebook.

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, rather, this proposal provides
NOM Market Makers with the opportunity to continue to avail themselves
of functionality that currently on BOX, NYSE Arca, and MIAX
Emerald.\28\
---------------------------------------------------------------------------

    \28\ See notes 10-12 above.
---------------------------------------------------------------------------

    The proposal does not impose a burden on inter-market competition,
because Participants may choose to become market makers on a number of
other options exchanges, which may have similar but not identical
features. The Post-Only Quote Configuration functionality will continue
to benefit downstream counterparties, both within and away from the
Exchange, who may interact with NOM's non-displayed order book and
thereby interact with order flow that is priced better than the NBBO.
    The proposal does not impose a burden on intra-market competition.
Today, all Participants may submit Post-Only Orders and receive similar
treatment for their orders. Offering NOM Market Makers the ability to
configure their quotes as Post-Only will allow all market participants
on NOM to enter interest with a Post-Only designation.
    The proposed risk protection allows NOM Market Makers the ability
to avoid removing liquidity from the Exchange's order book if their
quote would otherwise lock or cross any resting order or quote on NOM's
order book upon entry, thereby protecting investors and the general
public as NOM Market Makers transact a large number of orders on the
Exchange and bring liquidity to the marketplace. NOM Market Makers are
required to add liquidity on NOM and, in turn, are rewarded with lower
pricing \29\ and enhanced allocations.\30\ Specifically, the risk
protection would permit NOM Market Makers to add liquidity only and
avoid removing non-displayed interest on the order book thereby
maximizing the benefit of their quoting to bring liquidity to NOM by
allowing NOM Market Makers to provide as much liquidity as possible.
Unlike other market participants, NOM Market Makers have certain
obligations on the market. NOM Market Makers are required to provide
continuous two-sided quotes on a daily basis \31\ and are subject to
various obligations associated with providing liquidity on the
market.\32\ NOM Market Makers are the sole liquidity providers on the
Exchange and, therefore, are offered certain quote risk protections
noted within Options 3, Section 15 to allow them to manage their risk
more effectively.\33\ The proposed Post-Only Quote Configuration is
another risk protection afforded to NOM Market Makers to assist them in
managing their risk while continuing to comply with their obligations.
---------------------------------------------------------------------------

    \29\ See Options 7, Section 2.
    \30\ See Options 3, Section 10.
    \31\ See NOM Options 2, Section 5(d).
    \32\ See NOM Options 2, Section 4.
    \33\ Options 3, Section 15(c) describes the Anti-Internalization
and Quotation Adjustments Protections that are available today to
NOM Market Makers.
---------------------------------------------------------------------------

Options 3, Sections 1 and 7
    The Exchange proposal to correct certain minor technical amendments
within Options 1, Section 1, ``Definitions,'' and Options 3, Section 7,
``Types of Orders and Order and Quote Protocols'' does not impose an
undue burden on competition as updating the citation within Options 3,
Section 7(a)(9) which describes the Post-Only Order, amending the term
``Nasdaq Options Market Maker'' or ``Options Market Maker'' within
Options 1, Section 1, ``Definitions,'' and replacing the term ``NOM
Market Makers'' within Options 3, Section 7(e)(1)(D) which describes
the ``Quote Using Orders'' or ``QUO'' quote protocol with ``Market
Makers'' as proposed to be defined within Options 3, Section 1(a)(27)
will bring greater clarity to these rules. The Exchange believes
utilizing ``Market Makers'' in addition to ``Nasdaq Options Market
Maker'' and ``Options Market Maker'' will conform the use of that term
throughout the Rulebook.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \34\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\35\
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \35\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    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 protected]. Please include
File Number SR-NASDAQ-2021-094 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-NASDAQ-2021-094. 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-NASDAQ-2021-094 and should
be submitted on or December 21, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25992 Filed 11-29-21; 8:45 am]
BILLING CODE 8011-01-P


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

NATIONAL VEHICLE AND FUEL EMISSIONS LABORATORY

2000 TRAVERWOOD DRIVE

ANN ARBOR, MI  48105-2498

									     OFFICE OF

									AIR AND RADIATION

3/24/16

MEMORANDUM

SUBJECT: Test Procedure Review with Cummins, Volvo, Navistar, Paccar,
Daimler Eaton and Allison

FROM: James Sanchez

TO:  Greenhouse Gas Emissions Standards and Fuel Efficiency Standards
for Medium- and

Heavy-Duty Engines and Vehicles - Phase 2 - Docket EPA-HQ-OAR-2014-0827

This memo documents communication on March 24, 2016 between
representatives of Cummins, Volvo, Navistar, Paccar, Eaton, Allison,
Daimler, Caterpillar, Hino, EMA and EPA to discuss heavy-duty test
procedures proposed in the Phase 2 greenhouse gas and fuel efficiency
standards for heavy-duty vehicles notice of proposed rulemaking.

Participants:

Allison – Mike Howenstein

Caterpillar –

Cummins – Manik Narula

Daimler – Gerald Freitag, David Kayes, Inderpal Singh

Eaton –

EMA – Tim Blubaugh

EPA – Houshun Zhang, James Sanchez

Hino – Mark Siddall

Navistar – Dave Gardner, Cortney Guzlas, Matt Hunkler

PACCAR – Mark Malowicki, Erin Luke, Dan Kieffer

Volvo – Marc Miller, Tim Connors, Steve Berry

Discussion and follow-up items (with owner's name in bold):

Road grade evaluation - James

James presented analysis looking at the effect of vehicle overspeed on
engine operation

James proposed a modified Profile D and showed the effect of
modification on engine operation

Evaluate modified Profile D and provide feedback to EPA as soon as
possible – All

Slides and profile have been shared with the group in a separate email

Topics for future calls:

(TBD) SwRI results (N13 365, gasoline engine) – Houshun

(4/7) Road grade evaluation – TBD


[Federal Register Volume 87, Number 88 (Friday, May 6, 2022)]
[Proposed Rules]
[Pages 27041-27043]
[FR Doc No: 2022-09698]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket Number USCG-2022-0340]
RIN 1625-AA08

Special Local Regulation; Ohio River, Louisville, KY

AGENCY: Coast Guard, Homeland Security (DHS).

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Coast Guard is proposing to establish a special local
regulation for certain waters of the Ohio River. This action is
necessary to provide for the safety of life on these navigable waters
near Louisville, KY, during a triathalon on July 24, 2022. This
proposed rulemaking would prohibit persons and vessels from being in
the special local regulation unless authorized by the Captain of the
Port (COTP) Ohio Valley or a designated representative. We invite your
comments on this proposed rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before June 6, 2022.

ADDRESSES: You may submit comments identified by docket number USCG-
2022-0340 using the Federal Decision Making Portal at https://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email MST3 Bryan Crane, U.S. Coast Guard;
telephone<PHONE_NUMBER>, email [email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    On April 21, 2022, Team Magic Inc. notified the Coast Guard that it
will be conducting a triathlon from 6 a.m. though 10 a.m. on July 24,
2022. The swim will be held between Mile Markers 602 and 603 on the
Ohio River

near Louisville, KY. The swim will consist of roughly 700 participants.
    The purpose of this rulemaking would be to ensure the safety of
vessels and the navigable waters during, the scheduled event. The Coast
Guard is proposing this rulemaking under authority in 46 U.S.C. 70034
(previously 33 U.S.C. 1231).

III. Discussion of Proposed Rule

    The COTP is proposing to establish a special local regulation from
6 a.m. to 10 a.m. on July 24, 2022. The special local regulation would
cover all navigable waters of the Ohio River from mile markers 602 to
603. The duration of the special local regulation is intended to ensure
the safety of vessels and these navigable waters before, during, and
after the scheduled triathalon. No vessel or person would be permitted
to enter the special local regulation without obtaining permission from
the COTP or a designated representative. The regulatory text we are
proposing appears at the end of this document.

IV. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and Executive orders related to rulemaking. Below we summarize our
analyses based on a number of these statutes and Executive orders, and
we discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. This NPRM has not been designated a ``significant
regulatory action,'' under Executive Order 12866. Accordingly, the NPRM
has not been reviewed by the Office of Management and Budget (OMB).
    This regulatory action determination is based on the size,
location, and duration of the special local regulation. This special
local regulation would restrict transit on a one-mile stretch of the
Ohio River for 4 hours on one day. Moreover, the Coast Guard would
issue Broadcast Notice to Mariners (BNMs), Local Notices to Mariners
(LNMs), and Marine Safety Information Bulletins (MSIBs) about this
special local regulation so that waterway users may plan according for
this restriction on transit, and the rule would allow vessels to
request permission to enter the zone.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. 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 5 U.S.C. 605(b) that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
    While some owners or operators of vessels intending to transit the
special local regulation may be small entities, for the reasons stated
in section IV.A above, this proposed rule would not have a significant
economic impact on any vessel owner or operator.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this proposed 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.
    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. If the proposed rule
would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please call or email the person listed in the
FOR FURTHER INFORMATION CONTACT section. 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.

C. Collection of Information

    This proposed rule would not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132
(Federalism), if it has a substantial direct effect on the States, on
the relationship between the National Government and the States, or on
the distribution of power and responsibilities among the various levels
of government. We have analyzed this proposed rule under that order and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this proposed 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. If
you believe this proposed rule has implications for federalism or
Indian tribes, please call or email the person listed in the FOR
FURTHER INFORMATION CONTACT section.

E. 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 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such an expenditure, we do discuss the potential effects of
this proposed rule elsewhere in this preamble.

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Directive 023-01, Rev. 1, associated implementing
instructions, and Environmental Planning COMDTINST 5090.1 (series),
which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. This proposed rule involves a special
local regulation lasting 4 hours that would prohibit entry between mile
marker 602 to 603 on the Ohio River. Normally such actions are
categorically excluded from further review under paragraph L61 of
Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. A
preliminary Memorandum for the Record supporting this determination is
available in the docket. For instructions on locating the docket, see
the ADDRESSES section of this preamble. We seek any comments or
information that may lead to the discovery of a significant
environmental impact from this proposed rule.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.

Protesters are asked to call or email the person listed in the FOR
FURTHER INFORMATION CONTACT section to coordinate protest activities so
that your message can be received without jeopardizing the safety or
security of people, places, or vessels.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    Submitting comments. We encourage you to submit comments through
the Federal Decision Making Portal at https://www.regulations.gov. To
do so, go to https://www.regulations.gov, type USCG-2022-0340 in the
search box and click ``Search.'' Next, look for this document in the
Search Results column, and click on it. Then click on the Comment
option. If you cannot submit your material by using https://www.regulations.gov, call or email the person in the FOR FURTHER
INFORMATION CONTACT section of this proposed rule for alternate
instructions.
    Viewing material in docket. To view documents mentioned in this
proposed rule as being available in the docket, find the docket as
described in the previous paragraph, and then select ``Supporting &
Related Material'' in the Document Type column. Public comments will
also be placed in our online docket and can be viewed by following
instructions on the https://www.regulations.gov. Frequently Asked
Questions web page. We review all comments received, but we will only
post comments that address the topic of the proposed rule. We may
choose not to post off-topic, inappropriate, or duplicate comments that
we receive.
    Personal information. We accept anonymous comments. Comments we
post to https://www.regulations.gov will include any personal
information you have provided. For more about privacy and submissions
to the docket in response to this document, see DHS's eRulemaking
System of Records notice (85 FR 14226, March 11, 2020).

List of Subjects in 33 CFR Part 100

    Marine safety, Navigation (water), Reporting and recordkeeping
requirements, Waterways.

    For the reasons discussed in the preamble, the Coast Guard is
proposing to amend 33 CFR part 100 as follows:

PART 100--SAFETY OF LIFE ON NAVIGABLE WATERS

0
1. The authority citation for part 100 continues to read as follows:

    Authority:  46 U.S.C. 70041; 33 CFR 1.05-1.

0
2. Add Sec.  100.T08-0340 to read as follows:

Sec.  100.T08-0340   Tri Louisville, Ohio River, Louisville, KY.

    (a) Regulated area. The regulations in this section apply to the
following area: All waters of Ohio River, from mile marker 602 to 603
extending the entire width of the river.
    (b) Definitions. As used in this section--
    Designated representative means a Coast Guard Patrol Commander,
including a Coast Guard coxswain, petty officer, or other officer
operating a Coast Guard vessel and a Federal, State, and local officer
designated by or assisting the Captain of the Port Sector Ohio Valley
(COTP) in the enforcement of the regulations in this section.
    Participant means all persons and vessels registered with the event
sponsor as a participants in the race.
    (c) Regulations. (1) All non-participants are prohibited from
entering, transiting through, anchoring in, or remaining within the
regulated area described in paragraph (a) of this section unless
authorized by the Captain of the Port Ohio Valley or their designated
representative.
    (2) To seek permission to enter, contact the COTP or the COTP's
representative by Sector Ohio Valley command center at<PHONE_NUMBER>.
Those in the regulated area must comply with all lawful orders or
directions given to them by the COTP or the designated representative.
    (3) The COTP will provide notice of the regulated area through
advanced notice via broadcast notice to mariners and by on-scene
designated representatives.
    (d) Enforcement period. This section will be enforced from 6 a.m.
through 10 a.m. on July 24, 2022.

    Dated: April 29, 2022.
A.M. Beach,
Captain, U.S. Coast Guard, Captain of the Port Ohio Valley.
[FR Doc. 2022-09698 Filed 5-5-22; 8:45 am]
BILLING CODE 9110-04-P