[Federal Register Volume 86, Number 65 (Wednesday, April 7, 2021)]
[Notices]
[Pages 18099-18105]
[FR Doc No: 2021-07116]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91455; File No. SR-CboeBZX-2021-022]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 19.6 (Series of Options Contracts Open for Trading) in Connection
With Limiting the Number of Strikes Listed for Short Term Option Series
Which Are Available for Quoting and Trading on the Exchange

April 1, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 19, 2021, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and
II, below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX Options'')
proposes to amend Rule 19.6 (Series of Options Contracts Open for
Trading) in connection with limiting the number of strikes listed for
Short Term Option Series which are available for quoting and trading on
the Exchange. The text of the proposed rule change is provided in
Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary,

and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 19.6 (Series of Options
Contracts Open for Trading). Specifically, this proposal seeks to widen
the intervals between strikes in order to limit the number of strikes
listed for multiply listed equity options classes (excluding options on
Exchange-Traded Funds (``ETFs'') and Exchange-Traded Notes (``ETNs''))
within the Short Term Option Series program that have an expiration
date more than 21 days from the listing date.
Background
    Current Rule 19.6 permits the Exchange, after a particular class of
options has been approved for listing and trading on the Exchange, to
open for trading series of options therein. The Exchange may list
series of options for trading on a weekly,\5\ monthly \6\ or quarterly
\7\ basis. Rule 19.6.01 sets forth the intervals between strike prices
of series of options on individual stocks generally,\8\ and Rule
19.6.05(e) specifically sets forth intervals between strike prices on
Short Term Option Series. Additionally, the Exchange may list series of
options pursuant to the $1 Strike Price Interval Program,\9\ the $0.50
Strike Program,\10\ the $2.50 Strike Price Program,\11\ and the $5
Strike Program.\12\
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    \5\ The weekly listing program is known as the Short Term Option
Series Program and is described within Rule 19.6.05.
    \6\ The Exchange will open at least one expiration month for
each class of options open for trading on the Exchange. See Rule
19.6(e). The monthly expirations are subject to certain listing
criteria for underlying securities described within Rule 19.3.
Monthly listings expire the third Friday of the month. The term
``expiration date'' when used in respect of a series of binary
options other than event options means the last day on which the
options may be automatically exercised. In the case of a series of
event options (other than credit default options or credit default
basket options) that are be automatically exercised prior to their
expiration date upon receipt by the Corporation of an event
confirmation, the expiration date is the date specified by the
listing Exchange; provided, however, that when an event confirmation
is deemed to have been received by the Corporation with respect to
such series of options, the expiration date will be accelerated to
the date on which such event confirmation is deemed to have been
received by the Corporation or such later date as the Corporation
may specify. In the case of a series of credit default options or
credit default basket options, the expiration date is the fourth
business day after the last trading day for such series as such
trading day is specified by the Exchange on which the series of
options is listed; provided, however, that when an event
confirmation is deemed to have been received by the Corporation with
respect to a series of credit default options or single payout
credit default basket options prior to the last trading day for such
series, the expiration date for options of that series will be
accelerated to the second business day following the day on which
such event confirmation is deemed to have been received by the
Corporation. ``Expiration date'' means, in respect of a series of
range options expiring prior to February 1, 2015, the Saturday
immediately following the third Friday of the expiration month of
such series, and, in respect of a series of range options expiring
on or after February 1, 2015 means the third Friday of the
expiration month of such series, or if such Friday is a day on which
the Exchange on which such series is listed is not open for
business, the preceding day on which such Exchange is open for
business. See The Options Clearing Corporation (``OCC'') By-Laws at
Section 1.
    \7\ The quarterly listing program is known as the Quarterly
Options Series Program and is described within Rule 19.6.04.
    \8\ The interval between strike prices of series of options on
individual stocks may be $2.50 or greater where the strike price is
$25 or less, provided however, that BZX Options may not list $2.50
intervals below $50 (e.g. $12.50, $17.50) for any class included
within the $1 Strike Price Program, as detailed below in
Interpretations and Policy .02, if the addition of $2.50 intervals
would cause the class to have strike price intervals that are $0.50
apart. For series of options on 283 Exchange-Traded Fund Shares that
satisfy the criteria set forth in Rule 19.3(i), the interval of
strike prices may be $1 or greater where the strike price is $200 or
less or $5 or greater where the strike price is over $200.
Exceptions to the strike price intervals above are set forth in
Interpretations and Policies .02 and .03. See Rule 19.6.01.
    \9\ The $1 Strike Interval Program is described within Rule
19.6.02.
    \10\ The $0.50 Strike Program is described within Rule 19.6.06.
    \11\ The $2.50 Strike Price Program is described within Rule
19.6.03.
    \12\ The $5 Strike Program is described within Rule 19.6(d)(5).
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    The Exchange's proposal seeks to amend the listing of weekly series
of options (i.e. Short Term Option Series) by adopting new Rule
19.6.05(f),\13\ which widens the permissible intervals between strikes,
thereby limiting the number of strikes listed, for multiply listed
equity options (excluding options on ETFs \14\ and ETNs \15\) that have
an

expiration date more than 21 days from the listing date. This proposal
does not amend the monthly or quarterly listing rules, nor does it
amend the $1 Strike Price Interval Program, the $0.50 Strike Program,
the $2.50 Strike Price Program, or the $5 Strike Program.
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    \13\ As a result, the proposed rule change subsequently updates
current Rule 19.6.05(f) and (g) to (g) and (h), respectively.
    \14\ The term ``ETF'' (Exchange-Traded Fund) (or ``Fund
Shares'') has the same meaning as the term ``exchange-traded fund''
as defined in Rule 6c-11 under the Investment Company Act of 1940.
See Rule 14.211(1)(3); see also Rule 19.3(i). Securities deemed
appropriate for options trading shall include shares or other
securities (``Fund Shares''), including but not limited to
Partnership Units as defined in this Rule, that are principally
traded on a national securities exchange and are defined as an ``NMS
stock'' under Rule 600 of Regulation NMS, and that (1) represent
interests in registered investment companies (or series thereof)
organized as open-end management investment companies, unit
investment trusts or similar entities, and that hold portfolios of
securities comprising or otherwise based on or representing
investments in indexes or portfolios of securities (or that hold
securities in one or more other registered investment companies that
themselves hold such portfolios of securities) (``Funds '') and/or
financial instruments including, but not limited to, stock index
futures contracts, options on futures, options on securities and
indexes, equity caps, collars and floors, swap agreements, forward
contracts, repurchase agreements and reverse repurchase agreements
(the ``Financial Instruments''), and money market instruments,
including, but not limited to, U.S. government securities and
repurchase agreements (the ``Money Market Instruments'')
constituting or otherwise based on or representing an investment in
an index or portfolio of securities and/or Financial Instruments and
Money Market Instruments, or (2) represent commodity pool interests
principally engaged, directly or indirectly, in holding and/or
managing portfolios or baskets of securities, commodity futures
contracts, options on commodity futures contracts, swaps, forward
contracts and/or options on physical commodities and/or non-U.S.
currency (``Commodity Pool ETFs'') or (3) represent interests in a
trust or similar entity that holds a specified non-U.S. currency or
currencies deposited with the trust or similar entity when
aggregated in some specified minimum number may be surrendered to
the trust by the beneficial owner to receive the specified non-U.S.
currency or currencies and pays the beneficial owner interest and
other distributions on the deposited non-U.S. currency or
currencies, if any, declared and paid by the trust (``Currency Trust
Shares''), or (4) represent interests in the SPDR Gold Trust or are
issued by the iShares COMEX Gold Trust or iShares Silver Trust.
    \15\ Securities deemed appropriate for options trading shall
include shares or other securities (``Equity Index-Linked
Securities,'' ``Commodity-Linked Securities,'' ``Currency-Linked
Securities,'' ``Fixed Income Index-Linked Securities,'' ``Futures-
Linked Securities,'' and ``Multifactor Index-Linked Securities,''
collectively known as ``Index-Linked Securities'') (or ``ETNs'')
that are principally traded on a national securities exchange and an
``NMS Stock'' (as defined in Rule 600 of Regulation NMS under the
Securities Exchange Act of 1934), and represent ownership of a
security that provides for the payment at maturity. Equity Index-
Linked Securities are securities that provide for the payment at
maturity of a cash amount based on the performance of an underlying
index or indexes of equity securities (``Equity Reference Asset'');
Commodity-Linked Securities are securities that provide for the
payment at maturity of a cash amount based on the performance of one
or more physical commodities or commodity futures, options on
commodities, or other commodity derivatives or Commodity-Based Trust
Shares or a basket or index of any of the foregoing (``Commodity
Reference Asset''); Currency-Linked Securities are securities that
provide for the payment at maturity of a cash amount based on the
performance of one or more currencies, or options on currencies or
currency futures or other currency derivatives or Currency Trust
Shares (as defined in this Rule), or a basket or index of any of the
foregoing (``Currency Reference Asset''); Fixed Income Index-Linked
Securities are securities that provide for the payment at maturity
of a cash amount based on the performance of one or more notes,
bonds, debentures or evidence of indebtedness that include, but are
not limited to, U.S. Department of Treasury securities (``Treasury
Securities''), government-sponsored entity securities (``GSE
Securities''), municipal securities, trust preferred securities,
supranational debt and debt of a foreign country or a subdivision
thereof or a basket or index of any of the foregoing (``Fixed Income
Reference Asset''); Futures-Linked Securities are securities that
provide for the payment at maturity of a cash amount based on the
performance of an index of (i) futures on Treasury Securities, GSE
Securities, supranational debt and debt of a foreign country or a
subdivision thereof, or options or other derivatives on any of the
foregoing; or (ii) interest rate futures or options or derivatives
on the foregoing in this subparagraph (ii) (``Futures Reference
Asset''); and Multifactor Index-Linked Securities are securities
that provide for the payment at maturity of a cash amount based on
the performance of any combination of two or more Equity Reference
Assets, Commodity Reference Assets, Currency Reference Assets, Fixed
Income Reference Assets, or Futures Reference Assets (``Multifactor
Reference Asset''). See 19.3(l).
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Short Term Option Series Program
    After an option class has been approved for listing and trading on
the Exchange,\16\ Rule 19.6.05 permits the Exchange to open for trading
on any Thursday or Friday that is a business day (``Short Term Option
Opening Date'') series of options on that class that expire at the
close of business on each of the next five Fridays that are business
days and are not Fridays on which monthly options series or Quarterly
Options Series expire (``Short Term Option Expiration Dates''). The
Exchange may select up to fifty currently listed option classes on
which Short Term Option Series may be opened on any Short Term Option
Opening Date. In addition to the fifty option class restriction, the
Exchange may also list Short Term Option Series on any option classes
that are selected by other securities exchanges that employ a similar
program under their respective rules. For each option class eligible
for participation in the Short Term Option Series Program, the Exchange
may open up to 30 Short Term Option Series for each expiration date in
that class. The Exchange may also open Short Term Option Series that
are opened by other securities exchanges in option classes selected by
such exchanges under their respective short term option rules.\17\
Pursuant to Rule 19.6.05(c), the Exchange may open up to 30 initial
series for each option class that participates in the Short Term Option
Series Program and, pursuant to Rule 19.6.05(d), if the Exchange opens
less than 30 Short Term Option Series for a Short Term Option
Expiration Date, additional series may be opened for trading on the
Exchange when the Exchange deems it necessary to maintain an orderly
market, to meet customer demand, or when the market price of the
underlying security moves substantially from the exercise price or
prices of the series already opened. Rule 19.6(e) provides that, if the
class does not trade in $1 strike price intervals, the strike price
interval for Short Term Option Series may be: (i) $0.50 or greater
where the strike price is less than $75; (ii) $1.00 or greater where
the strike price is between $75 and $150; or (iii) $2.50 or greater for
strike prices greater than $150.\18\
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    \16\ The Exchange may have no more than a total of five Short
Term Option Expiration Dates, not including any Monday or Wednesday
SPY Expirations as provided in paragraph (g). If BZX Options is not
open for business on the respective Thursday or Friday, the Short
Term Option Opening Date will be the first business day immediately
prior to that respective Thursday or Friday. Similarly, if BZX
Options is not open for business on the Friday that the options are
set to expire, the Short Term Option Expiration Date will be the
first business day immediately prior to that Friday. See Rule
19.6.05. The Exchange may open for trading on any Friday or Monday
that is a business day series of options on the SPDR S&P 500 ETF
Trust (``SPY'') to expire on any Monday of the month that is a
business day and is not a Monday on which Quarterly Options Series
expire (``Monday SPY Expirations''), provided that any Friday on
which the Exchange opens for trading a Monday SPY Expiration is one
business week and one business day prior to expiration. The Exchange
may also open for trading on any Tuesday or Wednesday that is a
business day series of SPY options to expire on any Wednesday of the
month that is a business day and is not a Wednesday on which
Quarterly Options Series expire (``Wednesday SPY Expirations''). The
Exchange may list up to five consecutive Monday SPY Expirations and
up to five consecutive Wednesday SPY Expirations at one time; the
Exchange may have no more than a total of five Monday SPY
Expirations and no more than a total of five Wednesday SPY
Expirations. Monday and Wednesday SPY Expirations will be subject to
the provisions of this Rule. See Rule 19.6.05(g). With the exception
of Monday and Wednesday SPY Expirations, no Short Term Option Series
may expire in the same week in which monthly option series on the
same class expire or, in the case of Quarterly Options Series, on an
expiration that coincides with an expiration of Quarterly Options
Series on the same class. See Rule 19.6.05(b).
    \17\ See Rule 19.6.05(a).
    \18\ Additionally, Rule 19.6.05(e) provides that the interval
between strike prices on Short Term Option Series shall be the same
as the strike prices for series in that same option class that
expire in accordance with the normal monthly expiration cycle.
During the expiration week of an option class that is selected for
the Short Term Option Series Program pursuant to this rule (``Short
Term Option''), the strike price intervals for the related non-Short
Term Option (``Related non-Short Term Option'') shall be the same as
the strike price intervals for the Short Term Option.
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    The Exchange notes that listings in the weekly program comprise a
significant part of the standard listing in options markets and that
the industry has observed a notable increase over approximately the
last five years in compound annual growth rate (``CAGR'') of weekly
strikes as compared to CAGR for standard third-Friday expirations.\19\
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    \19\ See Securities Exchange Act Release No. 91125 (February 12,
2021), 86 FR 10375 (February 19, 2021) (SR-BX-2020-032) (``BX Strike
Interval Approval Order''); and SR-2020-BX-032 as amended by
Amendment No. 1 (February 10, 2021) available at: https://www.sec.gov/comments/sr-bx-2020-032/srbx2020032-8359799-229182.pdf
(``BX proposal''); see also BX Options Strike Proliferation Proposal
(February 25, 2021) available at: https://www.nasdaq.com/solutions/bx-options-strike-proliferation-proposal).
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Proposal
    The Exchange proposes to widen the intervals between strikes in
order to limit the number of strikes listed for equity options
(excluding options on ETFs and ETNs) listed as part of the Short Term
Option Series Program that have an expiration date more than 21 days
from the listing date, by adopting proposed Rule 19.6.05(f). The
Exchange notes that this proposal is substantively identical to the
strike interval proposal recently submitted by Nasdaq BX, Inc. (``BX'')
and approved by the Securities and Exchange Commission
(``Commission'').\20\
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    \20\ See BX Strike Interval Approval Order, id.
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    The proposal widens intervals between strikes for expiration dates
of equity option series (excluding options on ETFs and ETNs) beyond 21
days utilizing the three-tiered table in proposed Rule 19.6.05(f)
(presented below) which considers both the Share Price and Average
Daily Volume for the option series. The table indicates the applicable
strike intervals and supersedes Rule 19.6.05(d), which currently
permits 10 additional series to be opened for trading on the Exchange
when the Exchange deems it necessary to maintain an orderly market, to
meet customer demand or when the market price of the underlying
security moves substantially from the exercise price or prices of the
series already opened. As a result of the proposal, 19.6.05(d) would
not permit an additional series of an equity option to have an
expiration date more than 21 days from the listing date to be opened
for trading on the Exchange despite the noted circumstances in
paragraph (d) when such additional series may otherwise be added.

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                                                                    Share price
                  Average daily  -------------------------------------------------------------------------------
     Tier            volume                         $25 to less     $75 to less    $150 to less       $500 or
                                   Less than $25     than $75        than $150       than $500        greater
----------------------------------------------------------------------------------------------------------------
1.............  Greater than               $0.50           $1.00           $1.00           $5.00           $5.00
                 5,000.
2.............  Greater than                1.00            1.00            1.00            5.00           10.00
                 1,000 to 5,000
                 \21\.
3.............  0 to 1,000......            2.50            5.00            5.00            5.00           10.00
----------------------------------------------------------------------------------------------------------------

    Proposed Rule 19.6.05(f)(1) provides that the Share Price is the
closing price on the primary market on the last day of the calendar
quarter. This value is used to derive the column from which to apply
strike intervals throughout the next calendar quarter. Also, proposed
Rule 19.6.05(f)(1) provides that in the event of a corporate action,
the Share Price of the surviving company is utilized.\22\ Proposed
Rule19.6.05(f)(2) provides that the Average Daily Volume is the total
number of option contracts traded in a given security for the
applicable calendar quarter divided by the number of trading days in
the applicable calendar quarter. Beginning on the second trading day in
the first month of each calendar quarter, the Average Daily Volume is
calculated by utilizing data from the prior calendar quarter based on
Customer-cleared volume at OCC. For options listed on the first trading
day of a given calendar quarter, the Average Daily Volume is calculated
using the calendar quarter prior to the last trading calendar
quarter.\23\ Pursuant to current Rule 19.6.05, if the Exchange is not
open for business on the respective Thursday or Friday, the Short Term
Option Opening Date will be the first business day immediately prior to
that respective Thursday or Friday.
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    \21\ The Exchange notes that while the term ``greater than'' is
not present in this cell in the corresponding BX rule, the Exchange
has inserted it for clarity, otherwise an Average Daily Volume of
1,000 contracts could be read to fall into two categories.
    \22\ The Exchange notes that corporate actions resulting in
change ownership would result in a surviving company, such as a
merger of two publicly listed companies, and the Share Price of the
surviving company would be used to determine strike intervals
pursuant to the proposed table. Corporate actions that do not result
in a change of ownership, such as stock-splits or distribution of
special cash dividends, would not result in a ``surviving company'',
therefore would not impact which Share Price to apply pursuant to
the proposed Rule.
    \23\ For example, options listed as of April 1, 2021 would be
calculated on April 2, 2021 using the Average Daily Volume from
October 1, 2020 to December 31, 2020.
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    By way of example, if the Share Price for a symbol was $142 at the
end of a calendar quarter, with an Average Daily Volume greater than
5,000, thereby, requiring strike intervals to be listed $1.00 apart,
that strike interval would apply for the calendar quarter, regardless
of whether the Share Price changed to $150 or greater during that
calendar quarter.\24\ The proposed table within Rule 19.6.05(f) takes
into account the notional value of a security, as well as Average Daily
Volume in the underlying stock, in order to widen the intervals between
strikes and thereby limit the number of strikes listed for equity
options (excluding options on ETFs and ETNs) in the Short Term Option
Series listing program. The Exchange will utilize OCC Customer-cleared
volume, as customer volume is an appropriate proxy for demand. The OCC
Customer-cleared volume represents the majority of options volume
executed on the Exchange, which, in turn, reflects the demand in the
marketplace. The options series listed on the Exchange are intended to
meet customer demand by offering an appropriate number of strikes. Non-
Customer cleared OCC volume generally represents the supply side.
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    \24\ The Exchange notes that any strike intervals imposed by the
Exchange's Rules will continue to apply. In this example, the
strikes would be in $1 intervals up to (but not including) $150,
which is the upper limit imposed by Rule 19.6.05(e).
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    The proposal is intended to remove repetitive and unnecessary
strike listings across the weekly expiries. Specifically, the proposal
seeks to reduce the number of strikes listed in the furthest weeklies,
which generally have wider markets and therefore lower market
quality.\25\ The proposed strike intervals are intended to widen
permissible strike intervals in multiply listed equity options
(excluding options on ETFs and ETNs) where there is less volume as
measured by the Average Daily Volume tiers. Therefore, the lower the
Average Daily Volume, the greater the proposed spread between strike
intervals. Options classes with higher volume contain the most liquid
symbols and strikes, which the Exchange believes makes the finer
proposed spread between strike intervals for those symbols appropriate.
Additionally, lower-priced shares have finer strike intervals than
higher-priced shares when comparing the proposed spread between strike
intervals. Today, weeklies are available on 16% of underlying products.
The proposal limits the density of strikes listed in series of options,
without reducing the classes of options available for trading on the
Exchange. Short Term Option Series with an expiration date greater than
21 days from the listing date currently equate to 7.5% of the total
number of strikes in the options market, which equals 81,000
strikes.\26\ The Exchange expects this proposal to result in the
limitation of approximately 20,000 strikes within the Short Term Option
Series, which is approximately 2% of the total strikes in the options
markets.\27\ The Exchange understands there has been an inconsistency
of demand for series of options beyond 21 calendar days.\28\ The
proposal takes into account customer demand for certain options
classes, by considering both the Share Price and the Average Daily
Volume, in order to remove certain strike intervals where there exist
clusters of strikes whose characteristics closely resemble one another
and, therefore, do not serve different trading needs,\29\ rendering
these strikes less useful. The Exchange also notes that the proposal
focuses on strikes in multiply listed equity options, and excludes ETFs
and ETNs, as the majority of strikes reside within equity options.
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    \25\ See BX proposal, supra note 19, which presents tables that
focus on data for 10 of the most and least actively traded symbols
and demonstrate average spreads in weekly options during the month
of August 2020.
    \26\ The Exchange notes that this proposal is an initial attempt
at reducing strikes and anticipates filing additional proposals to
continue reducing strikes. The percentage of underlying products and
percentage of and total number of strikes, are approximations and
may vary slightly at the time of this filing. The Exchange intends
to decrease the overall number of strikes listed on the Cboe Cboe-
affiliated options exchanges in a methodical fashion, so that it may
monitor progress and feedback from its Members. The Exchange also
notes that its affiliated options exchanges, Cboe Exchange, Inc.
(``Cboe Options''), Cboe C2 Exchange, Inc. (``C2'') [sic], and Cboe
EDGX Exchange, Inc. (``EDGX Options'') plan to submit identical
proposals.
    \27\ From information drawn from time period between January
2020 and May 2020. See BX proposal, supra note 19.
    \28\ See BX proposal, supra note 19.
    \29\ For example, two strikes that are densely clustered may
have the same risk properties and may also be the same percentage
out-of-the money.
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    Additionally, proposed Rule 19.6.05(f)(3) provides that options
that are newly eligible for listing pursuant to

Rule 19.3 and designated to participate in the Short Term Option Series
program pursuant to Rule 19.6.05(f) will not be subject to subparagraph
(f) (as proposed) until after the end of the first full calendar
quarter following the date the option class was first listed for
trading on any options market.\30\ As proposed, the Exchange is
permitted to list options on newly eligible listings, without having to
apply the wider strike intervals, until the end of the first full
calendar quarter after such options were listed. The proposal thereby
permits the Exchange to add strikes to meet customer demand in a newly
listed options class. A newly eligible option class may fluctuate in
price after its initial listing; such volatility reflects a natural
uncertainty about the security. By deferring the application of the
proposed wider strike intervals until after the end of the first full
calendar quarter, additional information on the underlying security
will be available to market participants and public investors, as the
price of the underlying has an opportunity to settle based on the price
discovery that has occurred in the primary market during this deferment
period. Also, the Exchange has the ability to list as many strikes as
are permissible for the Short Term Option Series once the expiry is no
more than 21 days. Short Term Option Series that have an expiration
date no more than 21 days from the listing date are not subject to the
proposed strike intervals, which allows the Exchange to list
additional, and potentially narrower, strikes in the event of market
volatility or other market events. These metrics are intended to align
expectations for determining which strike intervals will be utilized.
Finally, proposed Rule 19.6.05(f)(4) provides that, notwithstanding the
strike intervals imposed in proposed subparagraph (f), the proposal
does not amend the range of strikes that may be listed pursuant to
subparagraph (e).
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    \30\ For example, if an options class became newly eligible for
listing pursuant to Rule 19.3 on March 1, 2021 (and was actually
listed for trading that day), the first full quarterly lookback
would be available on July 1, 2021. This option would become subject
to the proposed strike intervals on July 2, 2021.
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    While the current listing rules permit the Exchange to list a
number of weekly strikes on its market, in an effort to encourage
Market Makers to deploy capital more efficiently, as well as improve
displayed market quality, the proposal aims to reduce the density of
strikes listed in later weeks by widening the intervals between strikes
listed for equity options (excluding options on ETFs and ETNs) which
have an expiration date more than 21 days from the listing date. The
Exchange requires Market Makers to quote during a certain amount of
time in the trading day and in a certain percentage of series in their
assigned options classes to maintain liquidity in the market.\31\ With
an increasing number of strikes being listed across options exchanges,
Market Makers must expend their capital to ensure that they have the
appropriate infrastructure to meet their quoting obligations on all
options markets in which they are assigned in option classes. The
Exchange believes that by widening the intervals between strikes listed
for equity options (excluding options on ETFs and ETNs), thus reducing
the number of strikes listed on the Exchange, the proposal will
likewise reduce the number of weekly strikes in which Market Makers are
required to quote and, as a result, allow Market Makers to expend their
capital in the options market in a more efficient manner. Due to this
increased efficiency, the Exchange believes that the proposal may
improve overall market quality on the Exchange by widening the
intervals between strikes in multiply listed equity options (excluding
options on ETFs and ETNs) that have an expiration date more than 21
days from the listing date. The proposal is intended to balance the
goal of limiting the number of listed strikes with the needs of market
participants. The Exchange believes that the various permissible strike
intervals will continue to offer market participants the ability to
select the appropriate strikes to meet their investment objectives.
---------------------------------------------------------------------------

    \31\ See Rule 22.6(d).
---------------------------------------------------------------------------

Implementation
    The Exchange, along with BX and other options exchanges that intend
to submit the same strike interval proposal, intends to begin
implementation of the proposed rule change prior to June 30, 2021. The
Exchange will issue a notice of the planned implementation date to it
Members in advance. Once implemented, the Exchange will provide notice
\32\ to its Members of the Short Term Option Series eligible in a new
quarter to be listed pursuant to Rule 19.6.05(f).
---------------------------------------------------------------------------

    \32\ In its notices disseminated to Members regarding the Short
Term Option Series eligible in a new quarter to be listed pursuant
to Rule 19.6.05(f), the Exchange will include for each eligible
option class: The closing price of the underlying; the Average Daily
Volume of the option class; and the eligible strike category (per
the proposed table) in which the eligible option class falls under
as a result of the closing price and Average Daily Volume.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\33\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \34\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \35\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

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

    The proposal seeks to widen the permissible intervals between
strikes listed for equity options (excluding options on ETFs and ETNs)
in order to limit the number of strikes listed in the Short Term Option
Series program that have an expiration date more than 21 days. The
proposal removes impediments to and perfects the mechanism of a free
and open market and a national market system by encouraging Market
Makers to deploy capital more efficiently, which may improve market
quality overall on the Exchange, by widening the intervals between
strikes when applying the strike interval table to multiply listed
equity options (excluding options on ETFs and ETPs) that have an
expiration date more than 21 days from the listing date. As described
above, the Exchange requires Market Makers to quote during a certain
amount of time in the trading day and in a certain percentage of series
in their assigned options classes to maintain liquidity in the
market.\36\ With an increasing number of strikes due, in part, to
tighter intervals being listed across options exchanges, Market Makers
must currently expend their capital to ensure that they have the
appropriate infrastructure to meet their quoting obligations on all
options markets in which they are assigned in

options classes. The Exchange believes that this proposal will widen
the intervals between strikes listed on the Exchange, thereby reducing
the number of weekly options listed on its market in later weeks in
which Market Makers are required to quote and, in turn, allowing Market
Makers to expend their capital in the options market in a more
efficient manner.
---------------------------------------------------------------------------

    \36\ See supra note 31.
---------------------------------------------------------------------------

    The Exchange believes that limiting the permissible strikes for
multiply listed equity options (excluding options on ETFs and ETNs)
that have an expiration date more than 21 days from the listing date
will not significantly disrupt the market, as the majority of the
volume traded in weekly options exists in options series which have an
expiration date of 21 days or less. The proposal will limit the number
of strikes listed in series of options without reducing the number of
classes of options available for trading on the Exchange. The proposal
allows the Exchange to determine the weekly strike intervals for
multiply listed equity Short Term Option Series listed in the later
weeks by taking into account customer demand for certain options
classes by considering both the Share Price and the Average Daily
Volume in the underlying security. The Exchange utilizes OCC Customer-
cleared volume, as customer volume is an appropriate proxy for demand.
Whereas non-Customer cleared OCC volume generally represents the supply
side, the Exchange believes OCC Customer-cleared volume represents the
majority of options volume executed on the Exchange, which, in turn,
reflects the demands in the marketplace and is therefore intended to
assist the Exchange in meeting customer demand by offering an
appropriate number of strikes.
    The proposal is intended to remove certain strikes where there
exist clusters of strikes whose characteristics closely resemble one
another and, therefore, do not serve different trading needs, which
currently results in less useful strikes. As such, the proposal
protects investors and the general public by removing unnecessary
choices for an options series, which the Exchange believes may improve
market quality. The proposal seeks to reduce the number of strikes in
the furthest weeklies, which generally have wider markets, and,
therefore, lower market quality. The implementation of the Strike
Interval table is intended to allow for greater spreads between strike
intervals in multiply listed equity options where there is less volume
as measured by the Average Daily Volume tiers. Therefore, the lower the
Average Daily Volume, the wider the proposed spread between strike
intervals, and the higher the Average Daily Volume (i.e., the options
classes that contain the most liquid symbols and strikes), the narrower
the proposed spread between strike intervals. Additionally, the
proposed strike intervals are finer for lower-priced shares than
higher-priced shares.\37\ As a result, the Exchange believes that, by
limiting the permissible strikes for multiply listed equity options
(excluding options on ETFs and ETNs) that have an expiration date more
than 21 days from the listing date pursuant to the proposed Strike
Interval table, the proposal may improve overall market quality on the
Exchange, which serves to protect investors and the general public.
---------------------------------------------------------------------------

    \37\ The Exchange notes that is has discussed the proposed
strike intervals with various Members.
---------------------------------------------------------------------------

    Further, utilizing the second trading day of a calendar quarter
allows the Exchange to accumulate data regarding OCC Customer-cleared
volume from the entire prior calendar quarter and allows the
calculation of Average Daily Volume to account for trades executed on
the last day of the previous calendar quarter, which will have settled
by the second trading day.\38\ The Exchange believes that applying the
previous calendar quarter for the calculation is appropriate to reduce
the impact of unusual trading activity as a result of unique market
events, such as a corporate action (i.e., it may result in a more
reliable measure of Average Daily Volume than a shorter period).
---------------------------------------------------------------------------

    \38\ Options contracts settle one business day after trade date.
Strike listing determinations are made the day prior to the start of
trading in each series.
---------------------------------------------------------------------------

    As stated, the proposal is substantively identical to the strike
interval proposal recently submitted by BX and approved by the
Commission.\39\ The Exchange believes that varied strike intervals will
continue to offer market participants the ability to select the
appropriate strike interval to meet that market participants'
investment objectives.
---------------------------------------------------------------------------

    \39\ See BX Strike Interval Approval Order, supra note 19.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act as the proposed rule change
limits the number of Short Term Option Series strikes available for
quoting and trading on the Exchange for all market participants.
Therefore, all market participants will equally be able to transact in
options series in the strikes listed for trading on the Exchange. The
proposal is intended to reduce the number of strikes for weekly options
listed in later weeks without reducing the number of classes of options
available for trading on the Exchange while also continuing to offer an
appropriate number of strikes the Exchange believes will meet market
participants' investment objectives.
    The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act as it only
impacts the permissible strike intervals for certain options series
listed on the Exchange. Additionally, another options exchange has
recently implemented a substantively identical rule for listing Short
Term Option Series strike intervals on its exchange, approved by the
Commission.\40\ The proposal is a competitive response that will permit
the Exchange to list the same series in multiply listed options as
another options exchange.
---------------------------------------------------------------------------

    \40\ See BX Strike Interval Approval Order, supra note 19.
---------------------------------------------------------------------------

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

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

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \41\ and Rule 19b-
4(f)(6) thereunder.\42\
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78s(b)(3)(A).
    \42\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may

temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule change should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2021-022 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-CboeBZX-2021-022. 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
20549-1090 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-CboeBZX-2021-022 and
should be submitted on or before April 28, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\43\
---------------------------------------------------------------------------

    \43\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-07116 Filed 4-6-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
[Notices]
[Pages 24716-24717]
[FR Doc No: 2017-10982]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2017-N-1095]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Electronic Submission Process for Voluntary
Allegations to the Center for Devices and Radiological Health

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
an opportunity for public comment on the proposed collection of certain
information by the Agency. Under the Paperwork Reduction Act of 1995
(PRA), Federal Agencies are required to publish notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information, and
to allow 60 days for public comment in response to the notice. This
notice solicits comments on information voluntarily submitted to the
Center for Devices and Radiological Health (CDRH) on actual or
potential health risk concerns about a medical device or radiological
product or its use.

DATES: Submit either electronic or written comments on the collection
of information by July 31, 2017.

ADDRESSES: You may submit comments as follows. Please note that late,
untimely filed comments will not be considered. Electronic comments
must be submitted on or before July 31, 2017. The https://www.regulations.gov electronic filing system will accept comments until
midnight Eastern Time at the end of July 31, 2017. Comments received by
mail/hand delivery/courier (for written/paper submissions) will be
considered timely if they are postmarked or the delivery service
acceptance receipt is on or before that date.

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov/.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov/
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on https://www.regulations.gov/.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Division of Dockets Management (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Division of
Dockets Management, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2017-N-1095 for ``Agency Information Collection Activities;
Proposed Collection; Comment Request; Electronic Submission Process for
Voluntary Allegations to the Center for Devices and Radiological
Health.'' Received comments, those filed in a timely manner (see
ADDRESSES), will be placed in the docket and, except for those
submitted as ``Confidential Submissions,'' publicly viewable at https://www.regulations.gov/ or at the Division of Dockets Management between
9 a.m. and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov/. Submit both copies to the Division of Dockets
Management. If you do not wish your name and contact information to be
made publicly available, you can provide this information on the cover
sheet and not in the body of your comments and you must identify this
information as ``confidential.'' Any information marked as
``confidential'' will not be disclosed except in accordance with 21 CFR
10.20 and other applicable disclosure law. For more information about
FDA's posting of comments to public dockets, see 80 FR 56469, September
18, 2015, or access the information at: https://www.fda.gov/regulatoryinformation/dockets/default.htm.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov/ and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Division of Dockets Management, 5630 Fishers
Lane, Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: JonnaLynn Capezzuto, Office of
Operations, Food and Drug Administration, Three White Flint North,
10A63, 11601 Landsdown St., North Bethesda, MD 20852,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
Agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes Agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A))
requires Federal Agencies to provide a 60-day notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information,
before submitting the collection to OMB for approval. To comply with
this requirement, FDA is publishing notice of the proposed collection
of information set forth in this document.
    With respect to the following collection of information, FDA
invites comments on these topics: (1) Whether the proposed collection
of information is necessary for the proper performance

of FDA's functions, including whether the information will have
practical utility; (2) the accuracy of FDA's estimate of the burden of
the proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques, when
appropriate, and other forms of information technology.

Electronic Submission Process for Voluntary Allegations to the Center
for Devices and Radiological Health

OMB Control Number 0910-0769--Extension

    This information collection request collects information
voluntarily submitted to CDRH on actual or potential health risk
concerns about a medical device or radiological product or its use.
Because, prior to the establishment of the electronic submission
process for voluntary allegations to CDRH, there had been no
established guidelines or instructions on how to submit an allegation
to CDRH, allegations often contained minimal information and were
received via phone calls, emails, or conversationally. CDRH has
established a consistent format and process for the submission of
device allegations that enhances our timeliness in receiving,
assessing, and evaluating voluntary allegations. The information
provided in the allegations received by CDRH may be used to clarify the
recurrence or emergence of significant device-related risks to the
general public and the need to initiate educational outreach or
regulatory action to minimize or mitigate identified risks.
    FDA estimates the burden of this collection of information as
follows:

                                 Table 1--Estimated Annual Reporting Burden \1\
----------------------------------------------------------------------------------------------------------------
                                                   Number of
           Activity                Number of     responses per   Total annual    Average burden     Total hours
                                  respondents     respondent       responses      per response
----------------------------------------------------------------------------------------------------------------
Electronic submission of                   700               1             700  .25 (15 minutes)             175
 voluntary allegations to CDRH.
----------------------------------------------------------------------------------------------------------------
\1\There are no capital costs or operating and maintenance costs associated with this collection of information.

    Dated: May 23, 2017.
Anna K. Abram,
Deputy Commissioner for Policy, Planning, Legislation, and Analysis.
[FR Doc. 2017-10982 Filed 5-26-17; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 84, Number 230 (Friday, November 29, 2019)]
[Rules and Regulations]
[Pages 65670-65671]
[FR Doc No: 2019-25539]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2019-0535; Airspace Docket No. 19-AWP-20]
RIN 2120-AA66

Amendment of Class D; Los Angeles, CA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This action corrects a clerical error in the Class D legal
description for Los Angeles International Airport, Los Angeles, CA by
removing the language establishing the airspace as part time. This
action is necessary for the safety and management of instrument flight
rules (IFR) operations at the airport.

DATES: Effective 0901 UTC, January 30, 2020. The Director of the
Federal Register approves this incorporation by reference action under
Title 1, Code of Federal Regulations part 51, subject to the annual
revision of FAA Order 7400.11 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.11D, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed on line at https://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11D at NARA, email<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Richard Roberts, Federal Aviation
Administration, Operations Support Group, Western Service Center, 2200
S 216th Street, Des Moines, WA 98198-6547; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, 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 I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends the Class D legal description for Los Angeles
International Airport, Los Angeles, CA, in support of IFR operations at
the airport.

History

    The FAA published a notice of proposed rulemaking in the Federal
Register (84 FR 36502; July 29, 2019) for Docket No. FAA-2019-0535 to
amend the legal description of the LAX Class D. Interested parties were
invited to participate in this rulemaking effort by submitting written
comments on the proposal to the FAA. The FAA received a single comment.
The commenter stated in full ``I recommend keeping the language as part
time and reducing light air traffic for public health and sound scape
enhancements.'' The FAA does not find this to be a substantive comment
about the proposal. The specified airspace does not control where
aircraft fly but defines the area within which all aircraft operators
are subject to operating rules and equipment requirements.
    Class D airspace designations are published in paragraph 5000 of
FAA Order 7400.11D, dated August 8, 2019, and effective September 15,
2019, which is incorporated by reference in 14 CFR 71.1. The Class D
airspace designation listed in this document will be published
subsequently in the Order. FAA Order 7400.11, Airspace Designations and
Reporting Points, is published yearly and effective on September 15.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.11D dated August 8, 2019, and
effective September 15, 2019, which is incorporated by reference in 14
CFR part 71.1. FAA Order 7400.11D is publicly available as listed in
the ADDRESSES section of this document. FAA Order 7400.11D lists Class
A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Rule

    The FAA is amending Title 14, Code of Federal Regulations (14 CFR)
part 71 by removing the language establishing the airspace as part
time. NBAA informed the FAA that the LAX Class D legal description, the
related chart supplement entry, and notes included on the VFR Sectional
contained information that did not clearly identify when the airspace
was in effect. The FAA concurs. The legal description contains language
that implied the Class D airspace was part-time, inconsistent with the
original intent of the airspace. The Chart Supplement does not include
information indicating when the airspace is effective and directs users
to the VFR Terminal Area Chart. The VFR Terminal Area Chart directs
users to the Chart Supplement or NOTAMS for information and NOTAMS are
not appropriate for this use. The original intent was to establish the
Class D airspace as full time. In 2009, as a result of a mid-air
collision in New York and in response to NTSB Recommendation A-09- 86,
Congress requested the FAA evaluate low-level flight around heavy-use
airspace. The FAA committed to evaluations of flight operations in and
around Class Bravo Airspace in New York, Los Angeles, Chicago, and
Houston. The LAX VFR Airspace Taskforce was convened and made
recommendations to modify the airspace around LAX in a two-step
process. Step one was to establish full-time Class D airspace at LAX.
Step two was to incorporate the Class D airspace into the LAX Class B
at a later date.

Regulatory Notices and Analyses

    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, is non-controversial,
and unlikely to result in adverse or negative comments. 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. Since this is a routine matter that only affects
air traffic procedures and air navigation, it is certified that this
rule, when promulgated, does not have a significant economic impact on
a substantial number of small entities under the criteria of the
Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

Adoption of the Amendment

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

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

0
1. The authority citation for part 71 continues to read as follows:

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

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11D,
Airspace Designations and Reporting Points, dated August 8, 2019, and
effective September 15, 2019, is amended as follows:

Paragraph 5000 Class D Airspace.

* * * * *

AWP CA D Los Angeles, CA [Amended]

Los Angeles International Airport, CA
    (Lat. 33[deg]56'33'' N, long. 118[deg]24'26'' W)
Santa Monica Municipal Airport, CA
    (Lat. 34[deg]00'57'' N, long. 118[deg]27'05'' W)

    That airspace extending upward from the surface to and including
2,700 feet MSL bounded by a line beginning at lat. 33[deg]57'42'' N,
long. 118[deg]27'23'' W; to lat. 33[deg]58'18'' N, long.
118[deg]26'24'' W; then via the 2.7-mile radius of the Santa Monica
Municipal Airport counterclockwise to lat. 34[deg]00'00'' N, long.
118[deg]24'02'' W; to lat. 34[deg]00'00'' N, long. 118[deg]22'58''
W; to lat. 33[deg]57'42'' N, long. 118[deg]22'10'' W, thence to the
point of beginning. That airspace extending upward from the surface
to and including 2,500 feet MSL bounded by a line beginning at lat.
33[deg]55'50'' N, long. 118[deg]22'06'' W; to lat. 33[deg]54'16'' N,
long. 118[deg]24'17'' W; to lat. 33[deg]52'47'' N, long.
118[deg]26'22'' W; to lat. 33[deg]55'51'' N, long. 118[deg]26'05''
W, thence to the point of beginning.

    Issued in Seattle, Washington, on November 19, 2019.
Byron Chew,
Manager, Operations Support Group, Western Service Center.
[FR Doc. 2019-25539 Filed 11-27-19; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 170 (Tuesday, September 1, 2020)]
[Notices]
[Page 54373]
[FR Doc No: 2020-19252]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL20-67-000]

Vistra Corp., Dynegy Marketing and Trade, LLC, NextEra Energy
Resources, LLC, NRG Power Marketing LLC, LS Power Associates, L.P.,
FirstLight Power Inc., Cogentrix Energy Power Management, LLC v.
Constellation Mystic Power, LLC, Exelon Generation Company, LLC, Exelon
Corporation; Notice of Complaint

    Take notice that on August 25, 2020, pursuant to sections 206 and
306 of the Federal Power Act, 16 U.S.C. 824e and 825e (2018), and Rule
206 of the Federal Energy Regulatory Commission's (Commission) Rules of
Practice and Procedure, 18 CFR 385.206, Vistra Corp. (formerly known as
Vistra Energy Corp.), Dynegy Marketing and Trade, LLC, NextEra Energy
Resources, LLC, NRG Power Marketing LLC, LS Power Associates, L.P.,
FirstLight Power Inc., and Cogentrix Energy Power Management, LLC
(collectively, the New England Generators or Complainants) filed a
formal complaint (Complaint) against Constellation Mystic Power, LLC,
Exelon Generation Company, LLC and Exelon Corporation (collectively
Respondents), asserting that Respondents are circumventing Commission
precedent and therefore alleges that Respondents' actions are unjust
and unreasonable, all as more fully explained in the complaint.
    The New England Generators certify that copies of the complaint
were served on the contacts for Mystic, Exelon Generation and Exelon
Corp. as listed on the Commission's list of Corporate Officials.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. The Respondent's
answer and all interventions, or protests must be filed on or before
the comment date. The Respondent's answer, motions to intervene, and
protests must be served on the Complainants.
    The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the eFiling link at
http://www.ferc.gov. Persons unable to file electronically may mail
similar pleadings to the Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426. Hand delivered submissions in
docketed proceedings should be delivered to Health and Human Services,
12225 Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://ferc.gov) using the
eLibrary link. Enter the docket number excluding the last three digits
in the docket number field to access the document. At this time, the
Commission has suspended access to the Commission's Public Reference
Room, due to the proclamation declaring a National Emergency concerning
the Novel Coronavirus Disease (COVID-19), issued by the President on
March 13, 2020. For assistance, contact the Federal Energy Regulatory
Commission at<EMAIL_ADDRESS>or call toll-free, (886) 208-
3676 or TYY,<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on September 14, 2020.

    Dated: August 26, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-19252 Filed 8-31-20; 8:45 am]
BILLING CODE 6717-01-P