[Federal Register Volume 78, Number 54 (Wednesday, March 20, 2013)]
[Notices]
[Pages 17272-17276]
[FR Doc No: 2013-06319]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69133; File No. SR-NASDAQ-2013-042]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend Rules 7014 and 7018

March 14, 2013.
    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 March 1, 2013, 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 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

    NASDAQ is proposing changes to its schedule of fees and rebates for
execution of orders for securities priced at $1 or more under Rule
7018, as well as a minor change to its Routable Order Program under
Rule 7014. The changes pursuant to this proposal are effective upon
filing, and the Exchange will implement the proposed rule changes on
March 1, 2013.
    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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
Designated Retail Orders
    NASDAQ proposes to introduce new liquidity provider credit tiers
for orders designated by a member as Designated Retail Orders. The
proposed change is part of an ongoing effort by NASDAQ to use financial
incentives to encourage greater participation in NASDAQ by members that
represent retail customers.\3\ For purposes of the proposed new tiers
and credits, a Designated Retail Order would be defined as an agency or
riskless principal \4\ order that originates from a natural person and
is submitted to NASDAQ by a member that designates it pursuant to Rule
7018, provided that no change is made to the terms of the order with
respect to price or side of market and the order does not originate
from a trading algorithm or any other computerized methodology. If a
member enters Designated Retail Orders through an MPID through which
(i) at least 90% of the shares of liquidity provided during the month
are provided through Designated Retail Orders, and (ii) the member
accesses, provides, or routes shares of liquidity that represent at
least 0.10% of Consolidated Volume \5\ during the month, the member
will receive a credit of $0.0034 per share executed for Designated
Retail Orders that provide liquidity if they are displayed orders. For
all other Designated Retail Orders that are displayed orders and that
provide liquidity, the credit will be $0.0033 per share executed. With
respect to Designated Retail Orders that are not displayed, NASDAQ's
existing credits for midpoint pegged and midpoint peg post-only orders
(``midpoint orders'') and other forms of non-displayed orders would
apply.\6\
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    \3\ Thus, the change complements NASDAQ's existing Investor
Support Program (``ISP'') and Routable Order Program (``ROP'') under
Rule 7014, both of which provide enhanced rebates for orders with
characteristics associated with retail investors. The Commission has
expressed concern that a significant percentage of the orders of
individual investors are executed in over-the-counter markets, that
is, at off-exchange markets. Securities Exchange Act Release No.
61358 (January 14, 2010), 75 FR 3594 (January 21, 2010) (Concept
Release on Equity Market Structure, ``Concept Release''). In the
Concept Release, the Commission recognized the strong policy
preference under the Act in favor of price transparency and
displayed markets. See also Mary L. Schapiro, Strengthening Our
Equity Market Structure (Speech at the Economic Club of New York,
Sept. 7, 2010) (``Schapiro Speech,'' available on the Commission Web
site) (comments of Commission Chairman on what she viewed as a
troubling trend of reduced participation in the equity markets by
individual investors, and that a significant percentage of volume in
U.S.-listed equities is executed in venues that do not display their
liquidity or make it generally available to the public).
    \4\ To qualify as a Designated Retail Order, a riskless
principal order must satisfy the criteria set forth in FINRA Rule
5320.03. These criteria include that the member maintain supervisory
systems to reconstruct, in a time-sequenced manner, all orders that
are entered on a riskless principal basis; and the member submits a
report, contemporaneously with the execution of the facilitated
order, that identifies the trade as riskless principal.
    \5\ ``Consolidated Volume'' is defined as the total consolidated
volume reported to all consolidated transaction plans by all
exchanges and trade reporting facilities.
    \6\ Specifically, NASDAQ provides a credit of $0.0017 per share
executed for midpoint orders if the member provides an average daily
volume of more than 3 million shares through midpoint orders during
the month, $0.0015 per share executed for midpoint orders if the
member provides an average daily volume of 3 million or fewer shares
through midpoint orders during the month, and $0.0010 per share
executed for other orders that are not displayed.
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    A member wishing to qualify for either of these tiers may do so by
designating orders as Designated Retail Orders, either on an order-by-
order basis, or by designating all orders on a particular order entry
port as Designated Retail Orders.\7\ The member would be required to
attest, in a form prescribed by NASDAQ, that it has implemented
policies and procedures that are reasonably designed to ensure that
every order designated by the member as a ``Designated Retail Order''
complies with NASDAQ's definition of a Designated Retail Order, as
described above.
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    \7\ A Designated Retail Order flag will be made available for
the purpose of designating orders.
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    The member's written policies and procedures must be reasonably
designed to assure that it will only designate orders as Designated
Retail Orders if all requirements of a Designated Retail Order are met.
Such written policies and procedures must require the member to (i)
exercise due diligence before entering a Designated Retail Order to
assure that entry as a Designated Retail Order is in compliance with
the requirements specified by NASDAQ, and (ii) monitor whether orders
entered as Designated Retail Orders meet the applicable requirements.
If the member represents Designated Retail Orders from another broker-
dealer customer, the member's supervisory procedures must be reasonably
designed to assure that the orders it receives from such broker-dealer
customer that it designates as Designated Retail Orders meet the
definition of a Designated Retail Order. The member must (i) obtain an
annual written representation, in a form acceptable to NASDAQ, from
each broker-dealer customer that sends it orders to be designated as
Designated Retail Orders that entry of such orders as Designated Retail
Orders will be in compliance with the requirements specified by NASDAQ,
and (ii) monitor whether its broker-dealer customer's Designated Retail
Order flow continues to meet the applicable requirements.\8\
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    \8\ FINRA will, on behalf of NASDAQ, review a member's
compliance with these requirements through an exam-based review of
the member's internal controls.
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    NASDAQ may disqualify a member from qualifying for Designated
Retail Order rebates if NASDAQ determines, in its sole discretion, that
a member has failed to abide by the requirements proposed herein,
including, for example, if a member designates orders submitted to
NASDAQ as Designated Retail Orders but those orders fail to meet any of
the requirements of Designated Retail Orders.
New Tier for Members Active in the NASDAQ Market Center and the NASDAQ
Options Market
    NASDAQ is proposing to introduce a new liquidity provider credit
tier for members that are active in both the Nasdaq Market Center and
the NASDAQ Options Market (``NOM''). At present, NASDAQ provides a
credit of $0.0027 per share executed for displayed orders that provide
liquidity if a member has (i) shares of liquidity provided in all
securities during the month representing more than 0.10% of
Consolidated Volume, through one or more of its Nasdaq Market Center
MPIDs, and (ii) an average daily volume during the month of more than
100,000 contracts of liquidity accessed or provided through one or more
of its NOM MPIDs. NASDAQ provides a credit of $0.0029 per share
executed for displayed orders that provide liquidity if a member has
(i) shares of liquidity provided in all securities during the month
representing more than 0.15% of Consolidated Volume, through one or
more of its Nasdaq Market Center MPIDs, and (ii) an average daily
volume

during the month of more than 100,000 contracts of liquidity accessed
or provided through one or more of its NOM MPIDs. Finally, NASDAQ
currently provides a credit of $0.00295 per share executed for
displayed orders that provide liquidity if a member has (i) shares of
liquidity provided in all securities during the month representing more
than 1.0% of Consolidated Volume, through one or more of its Nasdaq
Market Center MPIDs, and (ii) an average daily volume during the month
of more than 200,000 contracts of liquidity accessed or provided
through one or more of its NOM MPIDs. Under the proposed additional
tier, NASDAQ will provide a credit of $0.0030 per share executed for
displayed orders that provide liquidity if a member (i) has shares of
liquidity provided in all securities during the month representing at
least 0.45% of Consolidated Volume during the month, through one or
more of its Nasdaq Market Center MPIDs, and (ii) qualifies for the
Penny Pilot Tier 7 Customer and Professional Rebate to Add Liquidity
under Chapter XV, Section 2 of the NOM rules during the month through
one or more of its NOM MPIDs. The Tier 7 Customer and Professional
Rebate is being proposed for NOM through a contemporaneous proposed
rule change.\9\ A NOM Participant may qualify for the Tier 7 Customer
and Professional Rebate if it (i) has Total Volume \10\ of 325,000 or
more contracts per day in a month, (2) adds Customer and Professional
liquidity of 1.00% or more of national customer volume in multiply-
listed equity and ETF options classes in a month, or (iii) adds
Customer and Professional liquidity of 60,000 or more contracts per day
in a month and NOM Market Maker liquidity of 30,000 or more per day per
month. Thus, as with existing tiers that require participation in both
the Nasdaq Market Center and NOM, the criteria for the new tier
establish volume thresholds that must be met on both markets in order
to receive the higher rebate. In doing so, the pricing incentive
recognizes the prevalence of trading in which members simultaneously
trade different asset classes within the same strategy. Because cash
equities and options markets are linked, with liquidity and trading
patterns on one market affecting those on the other, NASDAQ believes
that pricing incentives that encourage market participant activity in
NOM also support price discovery and liquidity provision in the Nasdaq
Market Center.
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    \9\ SR-NASDAQ-2013-041 (March 1, 2013).
    \10\ ``Total Volume'' is defined as Customer, Professional,
Firm, Broker-Dealer, Non-NOM Market Maker and NOM Market Maker
volume in Penny Pilot Options and Non-Penny Pilot Options that
either adds or removes liquidity on NOM. The term ``Customer''
applies to any transaction that is identified by a Participant for
clearing in the Customer range at The Options Clearing Corporation
(``OCC'') which is not for the account of a broker or dealer or for
the account of a Professional. The term ``Professional'' means any
person or entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed options per day on
average during a calendar month for its own beneficial account(s)
pursuant to Chapter I, Section 1(a)(48) of the NOM Rules. The term
``Non-NOM Market Maker'' means a registered market maker on another
options exchange that is not a NOM Market Maker. The term ``NOM
Market Maker'' means a Participant that has registered as a Market
Maker on NOM pursuant to Chapter VII, Section 2 of the NOM Rules,
and must also remain in good standing pursuant to Chapter VII,
Section 4 of the NOM Rules. The term ``Firm'' applies to any
transaction that is identified by a Participant for clearing in the
Firm range at OCC. The term ``Broker-Dealer'' applies to any
transaction that is not subject to any of the other transaction fees
applicable within a particular category.
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Designated Securities Pricing
    In December 2012,\11\ NASDAQ introduced a discounted execution fee
of $0.0028 per share executed for certain securities designated in the
rule (``Designated Securities'').\12\ The discounted fee applied to all
orders in Designated Securities entered through an MPID through which a
member accessed, provided, or routed shares of liquidity that represent
more than 0.25% of Consolidated Volume during the month, including a
daily average volume of at least 2 million shares of liquidity
provided. NASDAQ is proposing to eliminate the discount for Designated
Securities, effective March 1, 2013. The program has not been
successful at achieving its goal of materially altering NASDAQ's market
share of executions of trades in Designated Securities, and accordingly
NASDAQ believes that it may appropriately be discontinued.
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    \11\ Securities Exchange Act Release No. 68421 (December 13,
2012), 77 FR 75232 (December 19, 2012) (SR-NASDAQ-2012-135).
    \12\ In February 2013, NASDAQ amended the list of Designated
Securities. Securities Exchange Act Release No. 68905 (February 12,
2013), 78 FR 11716 (February 19, 2013) (SR-NASDAQ-2013-023).
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Routable Order Program
    In February 2013, NASDAQ introduced a new Routable Order Program
aimed at encouraging greater participation in NASDAQ by members that
represent retail customers.\13\ NASDAQ is now proposing a minor
enhancement to the program to broaden its availability. Under the
program, a member must have an MPID through which it provides an
average daily volume of at least 35 million shares of displayed
liquidity using orders that employ the SCAN or LIST routing
strategies,\14\ including an average daily volume of at least 2 million
shares that are provided prior to the NASDAQ Opening Cross and/or after
the NASDAQ Closing Cross. Under the proposed change, a qualifying
member must have an MPID through which it (i) provides an average daily
volume of at least 35 million shares of displayed liquidity using
orders that employ the SCAN or LIST routing strategies, and (ii)
provides displayed liquidity and/or routes an average daily volume of
at least 2 million shares prior to the NASDAQ Opening Cross and/or
after the NASDAQ Closing Cross using orders that employ the SCAN or
LIST strategies. Thus, the satisfaction of the volume requirements for
participation in the program would not be affected by the extent to
which, during pre- and post-market hours, routable orders execute at
NASDAQ or at another venue to which they are routed prior to posting to
the NASDAQ book. The change reflects the fact that wider spreads during
pre- and post-market hours make it more likely that orders will be
marketable against quotes posted at other markets and therefore will
route rather than posting to the NASDAQ book. The pricing associated
with SCAN and LIST orders entered by ROP participants through a
qualifying MPID is not being altered.\15\
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    \13\ Securities Exchange Act Release No. 68905 (February 12,
2013), 78 FR 11716 (February 19, 2013) (SR-NASDAQ-2013-023).
    \14\ SCAN is a basic routing strategy that is widely used by
firms that represent retail customers. SCAN orders check the Nasdaq
Market Center System for available shares, while remaining shares
are simultaneously routed to destinations on the applicable routing
table. If shares remain un-executed after routing, they are posted
on the book. Once on the book, if the order is subsequently locked
or crossed by another market center, the System will not route the
order to the locking or crossing market center. LIST is a routing
strategy that is used by firms that wish for their orders to
participate in the opening and closing processes of each security's
primary listing exchange, to access liquidity on all exchanges if
marketable, and otherwise to post to the NASDAQ book. Members,
including those that represent retail customers, use the LIST
strategy to offload on the Exchange and its routing broker the
technical complexity associated with routing orders to participate
in the market open and/or close.
    \15\ For orders in securities priced at $1 per share or more,
NASDAQ charges a fee of $0.0029 per share executed with respect to
such orders when they access liquidity in the Nasdaq Market Center,
and provides a credit of $0.0037 per share executed with respect to
such orders when they provide liquidity on NASDAQ. For orders in
securities priced less than $1 per share, NASDAQ charges a fee of
0.30% of the total transaction cost with respect to such orders when
they access liquidity in the Nasdaq Market Center, and provides a
credit of $0.00003 per share executed if they are designated for
display and provide liquidity after posting to the book.

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2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\16\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\17\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which NASDAQ operates or controls, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \16\ 15 U.S.C. 78f.
    \17\ 15 U.S.C. 78f(b)(4) and (5).
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    The proposed changes with respect to the ROP and the tiers for
Designated Retail Orders are reflective of NASDAQ's ongoing efforts to
use pricing incentive programs to attract orders of retail customers to
NASDAQ and improve market quality. As NASDAQ noted in its filing to
introduce the ROP, the goal of that program is to provide meaningful
incentives for members that represent significant numbers of retail
customers to increase their participation in NASDAQ. The proposed
change to the program is reasonable because it will broaden the
availability of the significant fee reductions available through the
program, thereby reducing the costs of members that represent retail
customers and that take advantage of the program, and potentially also
reducing costs to the customers themselves. The change is consistent
with an equitable allocation of fees because it will make it easier for
more members to qualify for the program. NASDAQ further believes that
the proposed change is not unreasonably discriminatory because it will
ensure that eligibility to participate in the program is not affected
by the extent to which orders that are entered during pre- and post-
market hours route to quotes of other trading venues against which they
are marketable rather than posting to the NASDAQ book.
    The proposed pricing tiers for Designated Retail Orders are
reasonable because they reflect the availability of a significant fee
reduction for members that represent retail customers. NASDAQ believes
that it is reasonable to use fee reductions as a means to encourage
greater retail participation in NASDAQ. Because retail orders are
likely to reflect long-term investment intentions, they promote price
discovery and dampen volatility. Accordingly, their presence in the
NASDAQ market has the potential to benefit all market participants. For
this reason, NASDAQ believes that it is equitable to provide
significant financial incentives to encourage greater retail
participation in the market. NASDAQ further believes that the proposal
is equitable and not unreasonably discriminatory because it will
significantly broaden the retail pricing incentives already provided
through the ROP and the ISP by offering a meaningful pricing incentive
($0.0033 per share executed) that is available to all members that are
able to attest that orders designated by them for participation in the
program meet the definition of a Designated Retail Order. Moreover, the
higher rebate of $0.0034 per share executed for members that trade
higher volumes (at least 0.1% of Consolidated Volume) and that are able
to focus the Designated Retail Orders they introduce through a
particular MPID is consistent with existing NASDAQ pricing policies
that offer higher rebates and/or lower fees for members based on volume
but that require concentration of activity through particular MPIDs as
a means of encouraging members to manage their trading activity in a
unified manner rather than merely serving as an aggregator of orders
from sponsored participants. NASDAQ believes that these requirements
are consistent with an equitable allocation of fees and not
unreasonably discriminatory because they provide the most favorable
pricing to the market participants that are most active on NASDAQ and
that thereby promote price discovery and market stability. These
requirements also avoid providing excessive encouragement to members
aggregating the activity of several firms (some of whom may not
themselves by members of the Exchange) for the sole purpose of earning
a higher rebate.\18\
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    \18\ See Securities Exchange Act Release No. 64003 (March 2,
2011), 76 FR 12784 (March 8, 2011) (SR-NASDAQ-2011-028) (discussing
introduction of fees designed to discourage aggregation for purposes
of earning a rebate).
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    The change with respect to Designated Securities is reasonable:
Although it eliminates a pricing incentive that was in effect for a
short period of time, the change causes NASDAQ's fees to access
liquidity in Designated Securities to revert to the same levels as in
effect for other securities. These fees are, in turn, consistent with
the requirements imposed by SEC Rule 610 with respect to access
fees.\19\ The change is also consistent with an equitable allocation of
fees and not unreasonably discriminatory because all members will pay
the same access fees with respect to Designated Securities as they
currently pay with respect to all other securities.
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    \19\ 17 CFR 242.610.
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    The new tier for members active in both the NASDAQ Market Center
and NOM is reasonable because it reflects the availability of a
significant price reduction for members that support liquidity on both
markets. The change is consistent with an equitable allocation of fees
because the pricing tier requires significant levels of liquidity
provision, which benefits all market participants, and because activity
in NOM also supports price discovery and liquidity provision in the
NASDAQ Market Center due to the increasing propensity of market
participants to be active in both markets and the influence of each
market on the pricing of securities in the other. The new tier is not
unreasonably discriminatory because market participants may qualify for
a comparable or a higher rebate through alternative means that do not
require participation in NOM, including through the new program for
Designated Retail Orders introduced through this proposed rule change,
through the ROP, and through a combination of qualification for volume-
based tiers and participation in the ISP.
    Finally, NASDAQ notes that it operates in a highly competitive
market in which market participants can readily favor competing venues
if they deem fee levels at a particular venue to be excessive, or
rebate opportunities available at other venues to be more favorable. In
such an environment, NASDAQ must continually adjust its fees to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. NASDAQ believes that all aspects of the
proposed rule change reflect this competitive environment because the
changes reflect significant price reductions, offset only to a small
extent by the elimination of the program for Designated Securities.

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

    NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Specifically,
NASDAQ believes that these changes reflect significant price
reductions, offset only to a small extent by the elimination of the
program for Designated Securities. Such reductions reflect the high
degree of competition in the cash equities markets and will further
enhance that competition by lowering fees and possibly encouraging
NASDAQ's competitors to make

competitive responses. The market for order execution is extremely
competitive and members may readily opt to disfavor NASDAQ's execution
services if they believe that alternatives offer them better value.
Accordingly, NASDAQ believes that the degree to which fee changes in
this market may impose any burden on competition is extremely limited.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, NASDAQ does not believe that the proposed changes will
impair the ability of members or competing order execution venues to
maintain their competitive standing in the financial markets.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \20\ and paragraph (f) of Rule 19b-4
thereunder.\21\ 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.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f).
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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-NASDAQ-2013-042 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-2013-042. 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 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
10:00 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; 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-2013-042 and should
be submitted on or before April 10, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-06319 Filed 3-19-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 85 (Tuesday, May 3, 2016)]
[Rules and Regulations]
[Pages 26465-26466]
[FR Doc No: 2016-10009]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 95

[Docket No. 31075; Amdt. No. 526]

IFR Altitudes; Miscellaneous Amendments

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This amendment adopts miscellaneous amendments to the required
IFR (instrument flight rules) altitudes and changeover points for
certain Federal airways, jet routes, or direct routes for which a
minimum or maximum en route authorized IFR altitude is prescribed. This
regulatory action is needed because of changes occurring in the
National Airspace System. These changes are designed to provide for the
safe and efficient use of the navigable airspace under instrument
conditions in the affected areas.

DATES: Effective Date: 0901 UTC, May 26, 2016.

FOR FURTHER INFORMATION CONTACT: Richard A. Dunham, Flight Procedure
Standards Branch (AMCAFS-420), Flight Technologies and Programs
Division, Flight Standards Service, Federal Aviation Administration,
Mike Monroney Aeronautical Center, 6500 South MacArthur Blvd., Oklahoma
City, OK 73169 (Mail Address: P.O. Box 25082, Oklahoma City, OK 73125)
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: This amendment to part 95 of the Federal
Aviation Regulations (14 CFR part 95) amends, suspends, or revokes IFR
altitudes governing the operation of all aircraft in flight over a
specified route or any portion of that route, as well as the changeover
points (COPs) for Federal airways, jet routes, or direct routes as
prescribed in part 95.

The Rule

    The specified IFR altitudes, when used in conjunction with the
prescribed changeover points for those routes, ensure navigation aid
coverage that is adequate for safe flight operations and free of
frequency interference. The reasons and circumstances that create the
need for this amendment involve matters of flight safety and
operational efficiency in the National Airspace System, are related to
published aeronautical charts that are essential to the user, and
provide for the safe and efficient use of the navigable airspace. In
addition, those various reasons or circumstances require making this
amendment effective before the next scheduled charting and publication
date of the flight information to assure its timely availability to the
user. The effective date of this amendment reflects those
considerations. In view of the close and immediate relationship between
these regulatory changes and safety in air commerce, I find that notice
and public procedure before adopting this amendment are impracticable
and contrary to the public interest and that good cause exists for
making the amendment effective in less than 30 days.

Conclusion

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. For the same reason, the FAA
certifies that this amendment will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 95

    Airspace, Navigation (air).

    Issued in Washington, DC, on April 22, 2016.
John Duncan,
Director, Flight Standards Service.

Adoption of the Amendment

    Accordingly, pursuant to the authority delegated to me by the
Administrator, part 95 of the Federal Aviation Regulations (14 CFR part
95) is amended as follows effective at 0901 UTC, May 26, 2016.

0
1. The authority citation for part 95 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40103, 40106, 40113, 40114, 40120,
44502, 44514, 44719, 44721.

0
2. Part 95 is amended to read as follows:

              Revisions to IFR Altitudes & Changeover Point
               [Amendment 526 effective date May 26, 2016]
------------------------------------------------------------------------
               From                           To                 MEA
------------------------------------------------------------------------
                    Sec.   95.6001 Victor Routes-U.S.
    Sec.   95.6196 VOR Federal Airway V196 is Amended to Read in Part
------------------------------------------------------------------------
Utica, NY VORTAC.................  * Saranac Lake, NY VOR/         5,400
                                    DME.
    * 6500--MCA
Saranac Lake, NY VOR/DME, E BND
Saranac Lake, NY VOR/DME.........  RIGID, NY FIX...........

                                   E BND...................        9,000
                                   W BND...................        5,000
------------------------------------------------------------------------
    Sec.   95.6394 VOR Federal Airway V394 is Amended to Read in Part
------------------------------------------------------------------------
Daggett, CA VORTAC...............  * Oasys, NV FIX.........    ** 12,000
    *10,400--MCA
Oasys, NV FIX, SW BND
    ** 9,500--MOCA
    ** 10,000--GNSS MEA
Oasys, NV FIX....................  Las Vegas, NV VORTAC....        9,000
------------------------------------------------------------------------

[FR Doc. 2016-10009 Filed 5-2-16; 8:45 am]
BILLING CODE 4910-13-P


2015 Ozone Transport FIP Meeting Title:	EGU Workgroup Meeting  -  August 2022	 Date/Time: August 25, 2022 (2-3pm EST) Agenda/Meeting Summary:	 The EGU Work Group Meeting is a monthly meeting that covers updates and announcements from EPA and MJOs. This meeting included time for CAMD staff to answer questions received on the GNP proposal, including what EPA considers compliance to be, the 0.14 backstop, and AEO growth rates. For a non-EGU question, a follow up email was distributed. Participants/Affiliations: Name Affiliation Russo, Andrew IL Kayin, Serpil EPA WELCH, JOHN IDEM Thomas Richardson OK DEQ Jin Lin (Guest) VA DEQ Todd Shrewsbury (Guest) WV Doris McLeod, VA DEQ (Guest) VA DEQ Laura Jennings (Guest) WV Smith-Hayes, Tamara GA DNR Adel Alsharafi (Guest) MO DNR Leon Ashford OK DEQ Cohen, Michael EPA Susan McCusker MARAMA Lewis, Adam [DEP] DEP Bordner, Randy PA Poff, Leslie M (EEC) EEC Alex Garsteck MARAMA Barry Exum TCEQ Corcoran, Katherine EPA Kim, Byeong GA DNR Beekman, Christopher Ohio EPA Jiang, Xiangyu GA DNR Loftus, Jonathan P - DNR DNR Wang, Jing GA DNR Zalewsky, Eric E (DEC) DEC Mark, Jeremy EPA Fisher, Brian EPA Farkas, Caroline EPA Bowker, George EPA Eyth, Alison EPA Caluseriu, Alexandra PA Jay Baker WESTAR Timin, Brian EPA Murray, Beth EPA


[Federal Register Volume 82, Number 93 (Tuesday, May 16, 2017)]
[Notices]
[Pages 22576-22580]
[FR Doc No: 2017-09812]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80637; File No. SR-ISE-2017-35]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Schedule of Fees To Amend Pricing Related to Options
Overlying NDX and MNX

May 10, 2017.
    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 April 25, 2017, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I and II, below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend the Exchange's Schedule of Fees to
amend pricing related to options overlying NDX \3\ and MNX,\4\ as
described further below. While changes to the Schedule of Fees pursuant
to this proposal are effective upon filing, the Exchange has designated
these changes to be operative on May 1, 2017.
---------------------------------------------------------------------------

    \3\ NDX represents options on the Nasdaq 100 Index traded under
the symbol NDX (``NDX'').
    \4\ MNX represents options on one-tenth the value of the Nasdaq
100 Index traded under the symbol MNX (``MNX'').
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
Web site at www.ise.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to amend the Exchange's
Schedule of Fees to make changes to pricing related to NDX and MNX. The
proposed changes are discussed in the following sections.
Fees and Rebates for Regular Orders in NDX
    The Exchange proposes to amend its Schedule of Fees to make pricing
changes related to NDX. The Exchange notes that NDX is transitioning to
be exclusively listed on the Exchange and its affiliated markets in
2017.\5\ In light of this transition, the Exchange seeks to amend its
NDX pricing structure.
---------------------------------------------------------------------------

    \5\ The Exchange and its affiliates will exclusively list NDX in
the near future upon expiration of open expiries in this product on
other markets.
---------------------------------------------------------------------------

    Today, as set forth in Section I of the Schedule of Fees, the
Exchange charges the following transaction fees for regular orders in
Non-Select Symbols \6\ (``Existing Transaction Fees''): (i) $0.25 per
contract for Market Maker \7\ orders not sent by an Electronic Access
Member (``EAM''); \8\ (ii) $0.20 per contract for Market Maker orders
sent by an EAM; (iii) $0.72 per contract for Non-Nasdaq ISE Market
Maker \9\ orders; (iv) $0.72 per contract for Firm Proprietary \10\/
Broker-Dealer \11\ orders; and (v) $0.72 per contract for Professional
Customer \12\ orders. Priority Customers \13\ are not assessed a
transaction fee for regular orders in Non-Select Symbols (including
NDX). In addition, as set forth in Section IV.B of the Schedule of
Fees, the Exchange charges a $0.25 per contract license surcharge for
all Non-Priority Customer \14\ orders in NDX (``NDX Surcharge'').
---------------------------------------------------------------------------

    \6\ ``Non-Select Symbols'' are options overlying all symbols
that are not in the Penny Pilot Program. NDX is a Non-Select Symbol.
    \7\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Rule
100(a)(25).
    \8\ In addition, these Market Maker fees are subject to tier
discounts. Specifically, Market Makers that execute a monthly volume
of 250,000 contracts or more are entitled to a discounted rate of
$0.20 per contract. See Schedule of Fees, Section IV.C.
    \9\ A ``Non-Nasdaq ISE Market Maker'' is a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934,
as amended, registered in the same options class on another options
exchange.
    \10\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account.
    \11\ A ``Broker-Dealer'' order is an order submitted by a member
for a broker-dealer account that is not its own proprietary account.
    \12\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer.
    \13\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in ISE Rule 100(a)(37A).
    \14\ Non-Priority Customer includes Market Maker, Non-Nasdaq ISE
Market Maker, Firm Proprietary/Broker-Dealer, and Professional
Customer.
---------------------------------------------------------------------------

    The Exchange also currently assesses different fees for regular
Non-Select Symbol orders executed in the Exchange's crossing
mechanisms, as set forth in Section I of the Schedule of Fees (such
orders, ``Auction Orders''). In particular, the Exchange charges fees
for Crossing Orders,\15\ including separate fees for PIM orders of 100
or fewer contracts, which fees apply to all regular Non-Priority
Customer orders in Non-Select Symbols (including NDX) on both the
originating and contra side of a Crossing Order.\16\ For regular Market
Maker orders not sent by an EAM, the fee for Crossing Orders is
currently $0.25 per contract, subject to applicable tier discounts.\17\
For all other regular Non-Priority Customer orders (i.e. Market Maker
orders sent by an EAM, Non-Nasdaq ISE Market Maker orders, Firm
Proprietary/Broker-Dealer orders, and Professional Customers orders),
the fee for Crossing Orders is currently $0.20 per contract.\18\ For
regular Priority Customer orders in Non-Select Symbols,

the Exchange does not assess a fee for Crossing Orders.
---------------------------------------------------------------------------

    \15\ A ``Crossing Order'' is an order executed in the Exchange's
Facilitation Mechanism, Solicited Order Mechanism, Price Improvement
Mechanism (``PIM'') or submitted as a Qualified Contingent Cross
order. For purposes of this Fee Schedule, orders executed in the
Block Order Mechanism are also considered Crossing Orders.
    \16\ Firm Proprietary and Non-Nasdaq ISE Market Maker Crossing
Orders (including PIM orders of 100 or fewer contracts) are also
subject to the Crossing Fee Cap provided in Section IV.H of the
Schedule of Fees.
    \17\ See Schedule of Fees, Section IV.C.
    \18\ This fee is reduced to $0.10 per contract for Professional
Customer orders either submitted as a Qualified Contingent Cross
order or executed in the Exchange's Solicited Order Mechanism.
---------------------------------------------------------------------------

    In addition, the Exchange charges a separate fee for regular Non-
Priority Customer PIM orders of 100 or fewer contracts in Non-Select
Symbols. This fee is currently $0.05 per contract for all regular Non-
Priority Customer orders for 100 or fewer contracts executed in the
PIM. For exchange members that execute an average daily volume
(``ADV'') in regular Priority Customer PIM orders of 20,000 or more
contracts in a given month, the fee for Non-Priority Customer orders is
further reduced to $0.03 per contract, which will be applied
retroactively to all eligible PIM volume in that month once the
threshold has been reached.\19\ PIM orders of greater than 100
contracts, as well as orders executed in the Exchange's other crossing
mechanisms, pay the fee for Crossing Orders as described above. The
Exchange does not charge a fee for regular Priority Customer PIM orders
of 100 or fewer in Non-Select Symbols. Lastly, the Exchange charges a
fee for Responses to Crossing Orders \20\ in Non-Select Symbols that is
$0.50 per contract for all regular market participant (including
Priority Customer) orders.
---------------------------------------------------------------------------

    \19\ Market Maker PIM orders of 100 or fewer contracts in Non-
Select Symbols (for orders not sent by an EAM) are not eligible for
the current tier discounts provided under Section IV.C of the
Schedule of Fees.
    \20\ ``Responses to Crossing Order'' is any contra-side interest
submitted after the commencement of an auction in the Exchange's
Facilitation Mechanism, Solicited Order Mechanism, Block Order
Mechanism or PIM.
---------------------------------------------------------------------------

    The Exchange also provides a break-up rebate for certain PIM orders
in Non-Select Symbols that do not trade with their contra order.
Specifically, the Exchange assesses a break-up rebate of $0.15 per
contract for regular Non-Nasdaq ISE Market Maker, Firm Proprietary/
Broker-Dealer, Professional Customer, and Priority Customer orders in
Non-Select Symbols.\21\ Market Makers are not permitted to enter orders
into the PIM and are therefore not eligible for this rebate.
---------------------------------------------------------------------------

    \21\ The applicable fee is applied to any contracts for which a
rebate is provided.
---------------------------------------------------------------------------

    In light of NDX's transition to becoming exclusively listed, the
Exchange seeks to amend its NDX pricing structure. Specifically, the
Exchange seeks to eliminate the current fee structure for NDX by
excluding this index option from all the fees currently applicable to
regular Non-Select Symbol orders, and instead adopt standard
transaction fees as set forth in a new table in Section I of the
Schedule of Fees.\22\ The Exchange also seeks to eliminate the PIM
break-up rebates it currently provides for Non-Nasdaq ISE Market Maker,
Firm Proprietary/Broker-Dealer, Professional Customer, and Priority
Customer orders in NDX. As such, all regular Non-Priority Customer
orders in NDX (including Non-Priority Customer Auction Orders) will be
assessed a uniform transaction fee of $0.75.\23\ Additionally, Firm
Proprietary and Non-Nasdaq ISE Market Maker orders in NDX, for both
Crossing Orders and PIM orders of 100 or fewer contracts, will no
longer be subject to the Crossing Fee Cap provided in Section IV.H of
the Schedule of Fees. The Exchange will therefore provide in Section
IV.H that those orders will not be included in the calculation of the
monthly fee cap. All regular Priority Customer orders in NDX (including
Priority Customer Auction Orders) will not be assessed any fees. The
Exchange will continue to charge the $0.25 NDX Surcharge for all Non-
Priority Customer orders in NDX. There will be no proposed changes to
the complex order fees and rebates in Section II of the Schedule of
Fees.
---------------------------------------------------------------------------

    \22\ The Exchange will therefore add note 7 in Section I of the
Schedule of Fees to provide that the fees set forth in the new
pricing table for index options will apply only to NDX. Furthermore,
note 7 will state that these fees are assessed to all executions in
NDX to clarify that the proposed pricing also applies to regular
Auction Orders in NDX.
    \23\ Therefore, the current tier discounts set forth in Section
IV.C of the Schedule of Fees will no longer apply to Market Maker
orders in NDX (for orders not sent by an EAM) as specified above.
Such orders in NDX, however, will still count toward the volume
requirement to qualify for a tier discount. For example, a Market
Maker that executes a monthly volume of more than 250,000 contracts
would normally be charged a fee of $0.20 per contract for regular
orders in Non-Select Symbols instead of the normal $0.25 per
contract fee. With the proposed changes, that Market Maker would not
be entitled to any discount for trades in NDX, and would instead pay
a fee of $0.75 per contract. That Market Maker's executions in NDX,
however, would still be counted towards the monthly volume
calculation (i.e., to reach the 250,000 contract threshold).
---------------------------------------------------------------------------

Non-Priority Customer License Surcharge for MNX
    As set forth in Section IV.B of the Schedule of Fees, the Exchange
currently charges a $0.25 per contract license surcharge for all Non-
Priority Customer orders in MNX (``MNX Surcharge''). The Exchange now
seeks to eliminate the MNX Surcharge, and proposes to remove any
references to MNX currently in Section IV.B of the Schedule of Fees.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\24\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\25\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \26\
---------------------------------------------------------------------------

    \26\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------

    Likewise, in NetCoalition v. Securities and Exchange Commission
\27\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of
a market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\28\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \29\
---------------------------------------------------------------------------

    \27\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \28\ See NetCoalition, at 534-535.
    \29\ Id. at 537.
---------------------------------------------------------------------------

    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \30\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes

that these views apply with equal force to the options markets.
---------------------------------------------------------------------------

    \30\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
---------------------------------------------------------------------------

Fees and Rebates for Regular Orders in NDX
    The Exchange believes that the proposed pricing changes for NDX are
reasonable, equitable and not unfairly discriminatory as NDX
transitions to an exclusively-listed product. Similar to other
proprietary products, the Exchange seeks to recoup the operational
costs for listing proprietary products.\31\ Also, pricing by symbol is
a common practice on many U.S. options exchanges as a means to
incentivize order flow to be sent to an exchange for execution in
particular products. Other options exchanges price by symbol.\32\
Further, the Exchange notes that with its products, market participants
are offered an opportunity to either transact options overlying NDX or
separately execute options overlying PowerShares QQQ Trust
(``QQQ'').\33\ Offering products such as QQQ provides market
participants with a variety of choices in selecting the product they
desire to utilize to transact NDX.\34\ When exchanges are able to
recoup costs associated with offering proprietary products, it
incentivizes growth and competition for the innovation of additional
products.
---------------------------------------------------------------------------

    \31\ By way of example, in analyzing an obvious error, the
Exchange would have additional data points available in establishing
a theoretical price for a multiply listed option as compared to a
proprietary product, which requires additional analysis and
administrative time to comply with Exchange rules to resolve an
obvious error.
    \32\ See pricing for Russell 2000 Index (``RUT'') on Chicago
Board Options Exchange, Incorporated's (``CBOE'') Fees Schedule.
    \33\ QQQ is an exchange-traded fund based on the Nasdaq-100
Index[supreg].
    \34\ By comparison, a market participant may trade options
overlying RUT or separately the market participant has the choice of
trading iShares Russell 2000 Index Fund (``IWM'') Exchange-Traded
Fund Shares options, which are also multiply listed.
---------------------------------------------------------------------------

    As proposed, the Exchange seeks to eliminate the existing fee
structure for regular NDX orders, and instead adopt standard
transaction fees for all such orders. Specifically, the proposed
pricing changes for NDX will result in a flat fee of $0.75 per contract
for all regular Non-Priority Customer orders, and no fees for all
regular Priority Customer orders. While the proposed fee amounts for
Non-Priority Customer orders in NDX are higher than the existing fees
assessed for such orders, the Exchange believes, as noted above, that
the proposed fee amounts are reasonable as NDX transitions to an
exclusively-listed product. Similar to other proprietary products, the
Exchange seeks to recoup the operational costs for listing proprietary
products. The Exchange also believes that the proposed elimination of
the Crossing Fee Cap for Firm Proprietary and Non-Nasdaq ISE Market
Maker orders in NDX is reasonable for the same reason.
    Furthermore, as it relates to the Existing Transaction Fees, the
Exchange believes that the increased fees for Non-Priority Customer
orders in NDX are reasonable because the proposed fee amounts are in
line with NASDAQ PHLX LLC's $0.75 per contract options transaction
charge in NDX assessed to all electronic market participant orders
other than customer orders.\35\ While the Exchange is proposing a
greater fee increase for Market Maker NDX orders than all other Non-
Priority Customer NDX orders,\36\ the Exchange also recently waived the
$0.70 marketing fee for NDX orders.\37\ The Exchange therefore believes
that the increased fees for Market Maker orders in NDX are reasonable
because the total fees assessed to Market Makers NDX orders are lower
overall than the fees historically assessed to such orders. For
example, a Market Maker transacting a regular order in NDX would
previously be assessed a $0.25 or $0.20 (for orders sent by an EAM) per
contract transaction fee for orders in Non-Select Symbols, a $0.22 per
contract license surcharge for Non-Priority Customer orders in NDX, and
a $0.70 per contract marketing fee for a total charge of $1.17 or $1.12
(for orders sent by an EAM). With this proposal, a Market Maker
transacting a regular order in NDX will be assessed a $0.75 per
contract transaction fee, a $0.25 per contract license surcharge, and
no marketing fee for a total charge of $1.00. Finally, the Exchange
will not charge a transaction fee for any regular Priority Customer
orders in NDX, which also is in line with Phlx, where customers are not
charged an options transaction charge in NDX.\38\
---------------------------------------------------------------------------

    \35\ See Phlx's Pricing Schedule, Section II.
    \36\ The fees are increasing from $0.25 to $0.75 per contract
for Market Maker orders not sent by an EAM, and from $0.20 to $0.75
per contract for Market Maker orders sent by an EAM. The fees for
all other Non-Priority Customer NDX orders are increasing from $0.72
to $0.75.
    \37\ See Securities Exchange Act Release No. 80249 (March 15,
2017), 82 FR 14586 (March 21, 2017) (SR-ISE-2017-23). The Exchange
also increased the license surcharge for Non-Priority Customer
orders in NDX from $0.22 to $0.25 as part of this rule filing.
    \38\ See Phlx's Pricing Schedule, Section II.
---------------------------------------------------------------------------

    As it relates to Auction Orders in NDX, the Exchange believes that
the increased fees for Market Maker orders in NDX are reasonable
because the total fees are generally lower overall under the Exchange's
proposal than the total fees historically assessed to such orders. As
noted above, the Exchange recently waived the $0.70 marketing fee for
NDX orders. As such, a Market Maker transacting a regular Crossing
Order in NDX would previously be assessed a $0.25 or $0.20 (for orders
sent by an EAM) per contract fee for orders in Non-Select Symbols, a
$0.22 per contract NDX Surcharge, and a $0.70 per contract marketing
fee for a total charge of $1.17 or $1.12 (for orders sent by an EAM).
For Responses to Crossing Orders in NDX, a Market Maker would
previously be assessed a $0.50 per contract fee for Responses to
Crossing Orders in Non-Select Symbols, a $0.22 per contract NDX
Surcharge, and a $0.70 per contract marketing fee for a total charge of
$1.42. That Market Maker would be charged a considerably lower total
amount of $1.00 for both types of Auction Orders under the Exchange's
proposal. While the total fees assessed for Market Makers transacting
regular PIM orders of 100 or fewer NDX contracts are slightly higher
under this proposal than the total fees historically assessed to such
orders,\39\ the Exchange believes that the slight increase is
reasonable because it is offset by the significant decrease for the
other two Auction Orders as previously discussed.
---------------------------------------------------------------------------

    \39\ The total fees previously assessed to a Market Maker for
such PIM orders in NDX would be $0.97 per contract because of the
$0.05 PIM order fee, the $0.22 NDX Surcharge, and the $0.70
marketing fee.
---------------------------------------------------------------------------

    The Exchange also believes that the increased fees for the other
Non-Priority Customer Auction Orders in NDX are reasonable because the
total fee of $1.00 per contract under the Exchange's proposal is
comparable to the total amounts charged for similar proprietary
products on other exchanges. For example, C2 Options Exchange, Inc.
(``C2'') charges all market participants other than public customers
and C2 market makers a $0.55 transaction fee and a $0.45 index license
surcharge fee in RUT, which is another broad-based index option and
similar proprietary product, for a total of $1.00.\40\
---------------------------------------------------------------------------

    \40\ See C2's Fees Schedule, Section 1C. As it relates to the
market participants noted above, C2 applies the $0.55 transaction
fee to all executions in RUT other than trades on the open.
---------------------------------------------------------------------------

    Furthermore, the Exchange believes that its proposal to eliminate
the break-up rebate for regular Non-Nasdaq ISE Market Maker, Firm
Proprietary/Broker-Dealer, Professional Customer, and Priority Customer
orders in NDX is reasonable because it is similar to other exchanges,
which do not provide rebates for certain proprietary products. On Phlx,
no rebates are paid on NDX contracts.\41\ Additionally, C2 does not

provide any rebates for RUT.\42\ In addition, the Exchange believes
that it is reasonable to eliminate the break-up rebate for regular
Priority Customer orders in NDX because even after the elimination of
the rebate, such Priority Customer orders (including Priority Customer
Auction Orders) will not be assessed any fees under the proposed
pricing structure.
---------------------------------------------------------------------------

    \41\ See Phlx's Pricing Schedule, Section B.
    \42\ See pricing for RUT on C2's Fees Schedule.
---------------------------------------------------------------------------

    The Exchange's proposed fee amounts for all regular Non-Priority
Customer orders in NDX (including Non-Priority Customer Auction Orders)
is also equitable and not unfairly discriminatory because the Exchange
will uniformly assess a $0.75 per contract fee for all such market
participant orders. The Exchange believes it is equitable and not
unfairly discriminatory to assess this increased fee on all
participants except Priority Customers because the Exchange seeks to
encourage Priority Customer order flow and the liquidity such order
flow brings to the marketplace, which in turn benefits all market
participants.
    Additionally, the Exchange believes that the proposed elimination
of the Crossing Fee Cap for Firm Proprietary and Non-Nasdaq ISE Market
Maker orders in NDX is equitable and not unfairly discriminatory
because the Exchange will eliminate the Crossing Fee Cap for all
similarly-situated members.
    Finally, the Exchange's proposal to eliminate the break-up rebate
for regular Non-Nasdaq ISE Market Maker, Firm Proprietary/Broker-
Dealer, Professional Customer, and Priority Customer orders in NDX is
an equitable allocation and is not unfairly discriminatory because the
Exchange will eliminate the rebate for all similarly-situated members.
As noted above, the Exchange believes it is equitable and not unfairly
discriminatory to eliminate the rebate for Priority Customer NDX orders
as well because these orders (including Priority Customer Auction
Orders) will no longer be assessed any fees under the proposed pricing
structure.
Non-Priority Customer License Surcharge for MNX
    The Exchange believes its proposal to remove any references to MNX
in Section IV.B of the Schedule of Fees is reasonable because the
Exchange is seeking to eliminate the $0.25 MNX Surcharge. The
Exchange's proposal to remove references to the MNX Surcharge is also
equitable and not unfairly discriminatory because the Exchange will
eliminate the surcharge for all similarly-situated members.

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 inter-market or intra-market competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, the Exchange believes that the degree to which fee changes
in this market may impose any burden on competition is extremely
limited.
    In terms of intra-market competition, the proposed changes to adopt
separate pricing for all regular orders in NDX will result in total
fees for orders in NDX becoming more uniform across all classes of
market participants, while still permitting Priority Customers to
transact in NDX free of any transaction charge. Removing the break-up
rebate will also enhance the Exchange's ability to offer other rebates
or reduced fees that could incentivize behavior that would enhance
market quality on the Exchange, which would benefit all members.
Finally, the Exchange's proposal to remove any references to MNX from
Section IV.B of the Schedule of Fees will not have an impact on
competition as it is simply designed to eliminate the MNX Surcharge for
all Non-Priority Customers. Lastly, it is also important to note that
despite the proposed fee increases with respect to NDX, members may
continue to separately execute options overlying PowerShares QQQ Trust
(``QQQ'').

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\43\ and Rule 19b-4(f)(2) \44\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is: (i) Necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) 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.
---------------------------------------------------------------------------

    \43\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \44\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-ISE-2017-35 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-ISE-2017-35. 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 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
10:00 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; 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-ISE-2017-35 and should be
submitted on or before June 6, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
---------------------------------------------------------------------------

    \45\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09812 Filed 5-15-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 91 (Monday, May 11, 2020)]
[Notices]
[Page 27736]
[FR Doc No: 2020-09997]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD20-16-000]

Shortening Comment Period for Federal Power Act Section 204
Filings; Notice Shortening Comment Period

    On March 13, 2020, the President issued a proclamation declaring a
National Emergency due to the COVID-19 pandemic. Entities regulated by
the Commission have had to take unprecedented actions in response to
the emergency conditions, including directing staff to work remotely
for an extended period, which may disrupt, complicate, or otherwise
change their normal course of business operations.
    To expedite the Commission's review of filings that may be
necessary to ensure regulated entities' liquidity in the face of the
COVID-19 pandemic, the period for filing interventions and protests to
filings submitted pursuant to the Federal Power Act, section 204, 16
U.S.C. 824c (2018), is hereby shortened from 21 days to 5 business
days.\1\ This shortened comment period will be in effect up to and
including September 1, 2020.
---------------------------------------------------------------------------

    \1\ The Office of the Secretary will indicate such shortened
comment periods in the notices it issues to process those filings.

     Dated: May 5, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-09997 Filed 5-8-20; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 75, Number 224 (Monday, November 22, 2010)]
[Proposed Rules]
[Pages 71046-71047]
[FR Doc No: 2010-29294]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

========================================================================

Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 /
Proposed Rules

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2010-0722 Airspace Docket No. 10-AAL-17]

Proposed Revision of Class E Airspace; Barrow, AK

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to revise Class E airspace at Wiley Post/
Will Rogers Memorial Airport in Barrow, AK, in order to accommodate the
amendment of five Standard Instrument Approach Procedures (SIAPs), and
one Obstacle Departure Procedure (ODP) and to enhance safety and
management of Instrument Flight Rules (IFR) operations.

DATES: Comments must be received on or before January 6, 2011.

ADDRESSES: Send comments on the proposal to the Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-
0001. You must identify the docket number FAA-2010-0722/Airspace Docket
No. 10-AAL-17 at the beginning of your comments. You may also submit
comments on the Internet at http://www.regulations.gov. You may review
the public docket containing the proposal, any comments received, and
any final disposition in person in the Dockets Office between 9 a.m.
and 5 p.m., Monday through Friday, except Federal holidays. The Docket
Office (telephone 1-800-647-5527) is on the plaza level of the
Department of Transportation NASSIF Building at the above address.
    An informal docket may also be examined during normal business
hours at the office of the Manager, Alaska Flight Service, Federal
Aviation Administration, 222 West 7th Avenue, Box 14, Anchorage, AK
99513-7587.

FOR FURTHER INFORMATION CONTACT: Martha Dunn, Federal Aviation
Administration, 222 West 7th Avenue, Box 14, Anchorage, AK 99513-7587;
telephone number<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>Internet address: http://www.faa.gov/about/office_org/headquarters_offices/ato/service_units/systemops/fs/alaskan/rulemaking/.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2010-0722/
Airspace Docket No. 10-AAL-17.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received on or before the specified closing date
for comments will be considered before taking action on the proposed
rule. The proposal contained in this notice may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the closing date
for comments. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition, in person in the Federal
Docket Management System Office (see ADDRESSES section for address and
phone number) between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. An informal docket may also be examined during normal
business hours at the Alaska Flight Services office. Persons interested
in being placed on a mailing list for future NPRMs should contact the
FAA's Office of Rulemaking,<PHONE_NUMBER>, to request a copy of
Advisory Circular No. 11-2A, Notice of Proposed Rulemaking Distribution
System, which describes the application procedure.

The Proposal

    This action proposes to amend Title 14 Code of Federal Regulations
(14 CFR) part 71 by revising Class E airspace at Wiley Post/Will Rogers
memorial Airport at Barrow, AK, to accommodate amended SIAPs and an
ODP. This Class E airspace would provide adequate controlled airspace
upward from the surface, and from 700 and 1,200 feet above the surface,
to increase the safety of IFR operations at Wiley Post/Will Rogers
Memorial Airport by ensuring that the Class E airspace is sufficient
for the management of air traffic.
    The Class E2 surface areas are published in paragraph 6002 in FAA
Order 7400.9U, Airspace Designations and Reporting Points, dated August
18, 2010, and effective September 15, 2010, which is incorporated by
reference in 14 CFR 71.1. The Class E airspace areas designated as 700/
1,200 foot transition areas are published in paragraph 6005 in FAA
Order 7400.9U, Airspace Designations and Reporting Points, dated August
18, 2010, and effective September 15, 2010, which is incorporated by
reference in 14 CFR 71.1. The Class E airspace designations listed in
this document would be subsequently published in the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) Is not a ``significant regulatory action'' under
Executive

Order 12866; (2) is not a ``significant rule'' under DOT Regulatory
Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does
not warrant preparation of a regulatory evaluation as the anticipated
impact is so minimal. Because this is a routine matter that will only
affect air traffic procedures and air navigation, it is certified that
this rule, when promulgated, will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle 1, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart 1, Section 40103, Sovereignty and use of
airspace. Under that section, the FAA is charged with prescribing
regulations to ensure the safe and efficient use of the navigable
airspace. This regulation is within the scope of that authority because
it proposes to revise airspace at Barrow, Alaska, and represents the
FAA's continuing effort to safely and efficiently use the navigable
airspace.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, CLASS B, CLASS C, CLASS D, AND
CLASS E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING
POINTS

    1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of Federal
Aviation Administration Order 7400.9U, Airspace Designations and
Reporting Points, dated August 18, 2010, and effective September 15,
2010, is to be amended as follows:
* * * * *

Paragraph 6002 Class E Airspace Designated as Surface Areas.

* * * * *

AAL AK E2 Barrow, AK [Revised]

Wiley Post/Will Rogers Memorial Airport, AK
    (Lat. 71[deg]17'06.8'' N., long. 156[deg]45'58.2'' W.)

    Within a 4.1 mile radius of the Wiley Post/Will Rogers Memorial
Airport, AK.
* * * * *

Paragraph 6005 Class E airspace extending upward from 700 feet or
more above the surface of the earth.

* * * * *

AAL AK E5 Barrow, AK [Revised]

Wiley Post/Will Rogers Memorial Airport, AK
    (Lat. 71[deg]17'06.8'' N., long. 156[deg]45'58.2'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.6-mile radius of the Wiley Post/Will Rogers Memorial
Airport, AK; and that airspace extending upward from 1,200 feet
above the surface within a 73-mile radius of the Wiley Post/Will
Rogers Memorial Airport, AK.

    Issued in Anchorage, AK, on November 10, 2010.
Michael A. Tarr,
Alaska Flight Services.
[FR Doc. 2010-29294 Filed 11-19-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Notices]
[Page 65796]
[DOCID:fr09no06-74]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP06-336-001]

Pine Needle LNG Company, LLC; Notice of Tariff Filing

November 3, 2006.
    Take notice that on October 31, 2006, Pine Needle LNG Company, LLC
(Pine Needle) tendered for filing as part of its FERC Gas Tariff,
Original Volume No. 1, Substitute Eleventh Revised Sheet No. 4, to
become effective November 1, 2006.
    Any person desiring to protest this filing must file in accordance
with Rule 211 of the Commission's Rules of Practice and Procedure (18
CFR 385.211). Protests to this filing will be considered by the
Commission in determining the appropriate action to be taken, but will
not serve to make protestants parties to the proceeding. Such protests
must be filed in accordance with the provisions of Section 154.210 of
the Commission's regulations (18 CFR 154.210). Anyone filing a protest
must serve a copy of that document on all the parties to the
proceeding.
    The Commission encourages electronic submission of protests in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons

unable to file electronically should submit an original and 14 copies
of the protest to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

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

TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-18996 Filed 11-8-06; 8:45 am]

BILLING CODE 6717-01-P