[Federal Register Volume 81, Number 77 (Thursday, April 21, 2016)]
[Rules and Regulations]
[Pages 23425-23428]
[FR Doc No: 2016-09066]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2016-0132; FRL-9945-09-Region 6]

Approval and Promulgation of Implementation Plans; State of
Louisiana; Revisions to the State Implementation Plan; Fee Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is taking a direct
final action to approve revisions to the Louisiana State Implementation
Plan (SIP) related to the Fee Regulations section of the Louisiana SIP
that were submitted by the State of Louisiana on February 23, 2016. The
EPA has evaluated the SIP submittal from Louisiana and determined these
revisions are consistent with the requirements of the Clean Air Act
(Act or CAA). The EPA is approving this action under section 110 of the
Act.

DATES: This rule is effective on June 20, 2016 without further notice,
unless the EPA receives relevant adverse comment by May 23, 2016. If
the EPA receives such comment, the EPA will publish a timely withdrawal
in the Federal Register informing the public that this rule will not
take effect.

ADDRESSES: Submit your comments, identified by Docket No. EPA-R06-OAR-
2016-0132, at http://www.regulations.gov or via email to
<EMAIL_ADDRESS>Follow the online instructions for submitting
comments. Once submitted, comments cannot be edited or removed from
Regulations.gov. The EPA may publish any comment received to its public
docket. Do not submit electronically any information you consider to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Multimedia submissions (audio,
video, etc.) must be accompanied by a written comment. The written
comment is considered the official comment and should include
discussion of all points you wish to make. The EPA will generally not
consider comments or comment contents located outside of the primary
submission (i.e. on the web, cloud, or other file sharing system). For
additional submission methods, please contact Tracie Donaldson, 214-
665-6633<EMAIL_ADDRESS>For the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
    Docket: The index to the docket for this action is available
electronically at www.regulations.gov and in hard copy at EPA Region 6,
1445 Ross Avenue, Suite 700, Dallas, Texas. While all documents in the
docket are listed in the index, some information may be publicly
available only at the hard copy location (e.g., copyrighted material),
and some may not be publicly available at either location (e.g., CBI).

FOR FURTHER INFORMATION CONTACT: Tracie Donaldson,<PHONE_NUMBER>,
<EMAIL_ADDRESS>To inspect the hard copy materials, please
schedule an appointment with Tracie Donaldson or Bill Deese at 214-665-
7253.

SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' and
``our'' means the EPA.

I. Background

A. CAA and SIPs

    Section 110 of the CAA requires States to develop and submit to the
EPA a SIP to ensure that State air quality meets National Ambient Air
Quality Standards. These ambient standards currently address six
criteria pollutants: Carbon monoxide, nitrogen dioxide, ozone, lead,
particulate matter, and sulfur dioxide. Each federally-approved SIP
protects air quality primarily by addressing air pollution at its point
of origin through air pollution regulations and control strategies. The
EPA

approved SIP regulations and control strategies are federally
enforceable.

B. SIP Revision Submitted on February 23, 2016

    The EPA first approved the Louisiana fee regulations into the
Louisiana SIP on March 8, 1989. See 54 FR 09795. Since that date, the
Louisiana fee regulations have been revised numerous times, but the SIP
itself has not been updated. In order to address the gap between the
SIP-approved fee regulations and the existing State fee regulations,
the Louisiana Department of Environment Quality (LDEQ) submitted a
revision to the Louisiana SIP in a letter dated February 23, 2016 that
included regulations revised from 9/20/1988 through 4/20/2011; this
submittal replaces the current SIP-approved permit fee program
provisions found in Chapters 2 and 65 and replaces them with the
current provisions included in the submittal for Chapter 2 which relate
to the State's air program. In particular, the LDEQ submitted revisions
for the inclusion of Louisiana Administrative Code (LAC) 33:III
Sections 201-221 into the Louisiana SIP, with the exception of LAC
33:III.211(B)(15) which applies solely to fees for title V permitting.
The submitted sections provide the state's authority to assess, collect
and enforce the permitting fee program.

II. The EPA's Evaluation

    As detailed in the Technical Support Document (TSD) accompanying
this action, the LDEQ submitted a proposed SIP revision to the title I
fee regulations requesting a repeal of the current SIP-approved permit
fee program and replacement with the submitted proposed revisions for
revised fee regulations containing a new fee schedule and associated
provisions specific to the State's air program. Sections 201 through
221 of Chapter 2 establish the state's authority to assess, collect and
enforce a fee permitting program to adequately fund air pollution
permitting activities in Louisiana. The EPA has reviewed the submitted
revisions and determined that the submitted revised fee program is
consistent with the general requirements at CAA section 110(a)(2)(E)(i)
to provide necessary assurances that the State will have adequate
funding to carry out the provisions of the Louisiana SIP as it pertains
to major and minor source Title I permitting, and with CAA section
110(a)(2)(L) that requires states to charge necessary fees for the
development and implementation of major source Title I permits. The
proposed revisions included in the February 23, 2016, SIP submittal
more accurately represent the current fee structure than the previously
approved SIP, which was approved by the EPA on March 8, 1989. Based on
our evaluation of the fee assessment provisions submitted, we find the
submitted repeal of Chapters 2 and 65 and replacement with Chapter 2
sections 201 through 221 [with the exception of LAC 33:III.211(B)(15)]
establishing fee requirements for permits is consistent with sections
110(a)(2)(E)(i) and 110(a)(2)(L) of the CAA.
    Under section 110(l) of the CAA, the EPA can only approve a
revision to an implementation plan after it has been adopted by a State
after reasonable notice and public hearing. The proposed SIP revision
was published in the Louisiana Register on December 20, 2015. No
request was made for a public hearing and no adverse comments were
received by LDEQ. We find that the submitted revision satisfies the
public notice requirements under section 110(l). Further under section
110(l), the EPA cannot approve a revision of a plan if the revision
would interfere with any applicable requirement concerning attainment,
maintenance and reasonable further progress. The LDEQ has submitted a
repeal of the existing SIP-approved fee regulations that include a
specific fee schedule with detailed dollar amounts for specified
permitting activities. In place of the repealed regulations, the LDEQ
has submitted regulations that enable the state to assess and collect
fees sufficient to implement the title I permitting program. Title I
does not require SIPs to include a specific fee schedule or dollar
amount for permitting activities; the EPA also does not have a
presumptive minimum that we believe is sufficient for implementing a
title I program. Rather, our analysis of the approvability of a title I
fee program is based on determining whether the state has the adequate
legal authority to assess, collect and enforce the fees determined by
the state as necessary for implementation and whether the state has the
ability to revise these fees into the future in order to continue to
implement the title I program. Our analysis indicates the submitted fee
regulations provide the State of Louisiana with the necessary authority
to assess, collect and enforce permitting fees sufficient to implement
the title I permitting program. The proposed revisions are
administrative in nature and will not affect emissions and will also
not interfere with requirements of the CAA related to the proposed
revisions. We propose to find that the submitted fee regulations to
support this required program will further the state's air quality
goals and will not interfere with any applicable requirement concerning
attainment and reasonable further progress (as defined in section 7501
of this title), or any other applicable requirement of this chapter.

III. Final Action

    For the reasons stated above and in the TSD, the EPA is taking
direct final action to approve revisions to the Louisiana SIP
pertaining to title I fees. Specifically, the EPA is removing the
current SIP-approved fee program in Chapters 2 and 65 and approving in
its place the revised Louisiana fee program at Chapter 2 sections 201
through 221, and submitted as a revision to the Louisiana SIP on
February 23, 2016.
    The EPA is publishing this rule without prior proposal because we
view this as a non-controversial amendment and anticipate no adverse
comments. However, in the proposed rules section of this Federal
Register publication, we are publishing a separate document that will
serve as the proposal to approve this SIP revision if relevant adverse
comments are received. This rule will be effective on June 20, 2016
without further notice unless we receive relevant adverse comment by
May 23, 2016. If we receive relevant adverse comments, we will publish
a timely withdrawal in the Federal Register informing the public that
the rule will not take effect. We will address all public comments in a
subsequent final rule based on the proposed rule. We will not institute
a second comment period on this action. Any parties interested in
commenting must do so now. Please note that if we receive relevant
adverse comment on an amendment, paragraph, or section of this rule and
if that provision may be severed from the remainder of the rule, we may
adopt as final those provisions of the rule that are not the subject of
an adverse comment.

IV. Incorporation by Reference

    In this rule, we are finalizing regulatory text that includes
incorporation by reference. In accordance with the requirements of 1
CFR 51.5, we are finalizing the incorporation by reference of the
revisions to the Louisiana regulations as described in the Final Action
section above. We have made, and will continue to make, these documents
generally available electronically through www.regulations.gov and/or
in hard copy at the EPA Region 6 office.

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).

In addition, the SIP is not approved to apply on any Indian reservation
land or in any other area where EPA or an Indian tribe has demonstrated
that a tribe has jurisdiction. In those areas of Indian country, the
rule does not have tribal implications and will not impose substantial
direct costs on tribal governments or preempt tribal law as specified
by Executive Order 13175 (65 FR 67249, November 9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. The EPA will submit a report containing this rule and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by June 20, 2016. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
This action may not be challenged later in proceedings to enforce its
requirements. (See section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: April 6, 2016.
Ron Curry,
Regional Administrator, Region 6.
    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart T--Louisiana

0
2. In Sec.  52.970, the table in paragraph (c) is amended by:
0
a. Adding entries for ``Sections 201, 203, 205, 207, 209, 211, 213,
215, 217, 219, and 221''.
0
b. Removing the entry for ``Section 223'', the center heading ``Chapter
65--Rules and Regulations for the Fee System of the Air Quality Control
Programs'' and the entries for ``Sections 6501, 6503, 6505, 6507, 6509,
6511, 6513, 6515, 6517, 6519, 6521, and 6523''.
    The additions read as follows:

Sec.  52.970  Identification of plan.

* * * * *
    (c) * * *

                                  EPA Approved Regulations in the Louisiana SIP
----------------------------------------------------------------------------------------------------------------
                                                       State approval
         State citation              Title/subject          date         EPA approval date         Comments
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr--------------------------------------------------------------------------------
             Chapter 2--Rules and Regulations for the Fee System of the Air Quality Control Programs
----------------------------------------------------------------------------------------------------------------
Section 201....................  Scope and Purpose...      10/20/1993  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 203....................  Authority...........       9/20/1988  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 205....................  Definitions.........       9/20/1988  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 207....................  Application Fees....       2/20/2000  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].

Section 209....................  Annual Fees.........       2/20/2000  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 211....................  Methodology.........       4/20/2011  4/21/2016 [Insert     SIP does NOT
                                                                        Federal Register      include LAC
                                                                        citation].            33:III.211.B.15.
Section 213....................  Determination of Fee       9/20/1988  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 215....................  Method of Payment...      10/20/2009  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 217....................  Late Payment........       3/20/1999  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 219....................  Failure to Pay......       3/20/1999  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].
Section 221....................  Effective Date......       9/20/1988  4/21/2016 [Insert     ...................
                                                                        Federal Register
                                                                        citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2016-09066 Filed 4-20-16; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 79, Number 233 (Thursday, December 4, 2014)]
[Notices]
[Pages 72044-72049]
[FR Doc No: 2014-28475]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73704; File No. SR-CBOE-2014-062]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of Amendment Nos. 1 and 2 and Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified by
Amendment Nos. 1 and 2, To Adopt Extended Trading Hours for SPX and VIX

November 28, 2014.

I. Introduction

    On August 26, 2014, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') a proposed rule change pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (the
``Act''),\1\ and Rule 19b-4 thereunder,\2\ to establish a separate
early morning trading session specifically for options on the S&P 500
Index (``SPX'') and CBOE Volatility Index (``VIX''). The proposed rule
change was published for comment in the Federal Register on September
12, 2014.\3\ On October 24, 2014, CBOE filed Amendment No. 1 to the
proposed rule change and also granted the Commission an extension of
time to consider its proposal to November 3, 2014.\4\ On October 31,
2014, CBOE granted the Commission an additional extension of time until
November 24, 2014. On November 21, 2014, CBOE filed Amendment No. 2 to
the proposed rule change and also granted the Commission a further
extension of time to consider its proposal to December 3, 2014.\5\ The
Commission received no substantive comments on the proposal.\6\ The
Commission is publishing this notice to solicit comments on Amendment
Nos. 1 and 2 from interested persons and is approving the proposed rule
change, as modified by Amendment Nos. 1 and 2, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 73017 (September 8,
2014), 79 FR 54758 (September 12, 2014) (``Notice'').
    \4\ CBOE filed Amendment No. 1 to the proposed rule change to
(i) amend the requirements for foreign Trading Permit Holders to
ensure, in part, that foreign Trading Permit Holders will be able to
provide the Exchange with information, including their books and
records; (ii) clarify why VIX index values will not be calculated
and disseminated during Extended Trading Hours; (iii) clarify that
CBOE will make available the number of Trading Permits during
Extended Trading Hours to comply with Section 6(c)(4) of the Act;
(iv) represent that the Exchange will establish procedures to ensure
that Trading Permit Holders only utilize clearing brokers that are
authorized by OCC for clearing during Extended Trading Hours; (v)
represent that CBOE's systems are designed to prohibit unauthorized
access; and (vi) correct an internal cross-reference in proposed
CBOE Rule 6.1A(e)(iii)(B). See Amendment No. 1 to File No. SR-CBOE-
2014-062, dated October 24, 2014 (``Amendment No. 1''). To promote
transparency of its proposed amendment, when CBOE filed Amendment
No. 1 with the Commission, it also submitted Amendment No. 1 as a
comment letter to the file, which the Commission posted on its Web
site and placed in the public comment file for SR-CBOE-2014-062. The
Exchange also posted a copy of its Amendment No. 1 on its Web site
at http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2014-062.a1.pdf when it filed the amendment with the Commission.
    \5\ CBOE filed Amendment No. 2 to the proposed rule change to
delete proposed rule text in Exhibit 5 and delete related parts in
the purpose and statutory basis sections of its Form 19b-4
submission, as well as Exhibit 1 and Item 8 in the Form 19b-4 (each
as amended by Amendment No. 1), all of which related to the removal
of proposed requirements that would have applied to foreign Trading
Permit Holders. See Amendment No. 2 to File No. SR-CBOE-2014-062,
dated November 21, 2014 (``Amendment No. 2''). To promote
transparency of its proposed amendment, when CBOE filed Amendment
No. 2 with the Commission, it also submitted Amendment No. 2 as a
comment letter to the file, which the Commission posted on its Web
site and placed in the public comment file for SR-CBOE-2014-062. The
Exchange also posted a copy of its Amendment No. 2 on its Web site
at http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2014-062.a2.pdf when it filed the amendment with the Commission.
    \6\ See infra notes 4 and 5 (noting that when CBOE submitted
each Amendment to its proposal, it also submitted them as a comment
letter to the file to promote the broad dissemination of its
Amendments).
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change, as Modified by Amendment
Nos. 1 and 2 \7\
---------------------------------------------------------------------------

    \7\ A full description of the proposed rule change can be found
in the Notice. See Notice, supra note 3.
---------------------------------------------------------------------------

    Currently, transactions in index options may be effected on the
Exchange generally between 8:30 a.m. and 3:15 p.m.,\8\ Monday through
Friday (``Regular Trading Hours''). CBOE has proposed to adopt rules
that will allow it to conduct a separate, fully-electronic trading
session from 2:00 a.m. to 8:15 a.m. Monday through Friday (``Extended
Trading Hours'') for SPX and VIX, two index options that are
exclusively-listed on CBOE. According to the Exchange, it is proposing
Extended Trading Hours to meet demand from investors who want to trade
these two products outside of Regular Trading Hours.\9\
---------------------------------------------------------------------------

    \8\ See CBOE Rule 24.6. All times in this order refer to Chicago
time.
    \9\ See Notice, supra note 3 at 54758.
---------------------------------------------------------------------------

    Under the proposal, Extended Trading Hours will be a separate
trading session from Regular Trading Hours and there will be no
carryover from one trading session to the other and no interaction
between Extended Trading Hours and Regular Trading Hours.\10\ Extended
Trading Hours will operate using separate Exchange servers \11\ and
hardware from those used during Regular Trading Hours.\12\ Accordingly,
the electronic order book used during Regular Trading Hours will not be
connected to the electronic order book used during Extended Trading
Hours, and orders and quotes will not interact between the two
sessions.\13\ Rather, all orders will be cancelled at the end of each
Extended Trading Hours session.\14\
---------------------------------------------------------------------------

    \10\ See id.
    \11\ Bandwidth packets will be sold separately for Regular
Trading Hours and Extended Trading Hours. See id. at 54766. Also,
while the same telecommunications lines may be used for both Regular
and Extended Trading Hours, those lines will be connected to a
separate application server at the Exchange to trade during Extended
Trading Hours. See id. at note 45.
    \12\ See id. at 54758.
    \13\ See id. at 54759.
    \14\ See id. at 54763.
---------------------------------------------------------------------------

    During Extended Trading Hours, all Exchange rules will apply,
except as set forth in proposed CBOE Rule 6.1A (Extended Trading
Hours), and except for CBOE rules that by their terms are inapplicable
during Extended Trading Hours.\15\ For example, since all trading
during Extended Trading Hours will be electronic on the Hybrid Trading
System,\16\ all CBOE rules relating to open outcry trading and the
Hybrid 3.0 System will be inapplicable to Extended Trading Hours.\17\
However, CBOE rules relating to business conduct, doing business with
the public, due diligence, and best execution will apply during
Extended Trading Hours.\18\
---------------------------------------------------------------------------

    \15\ See proposed CBOE Rule 6.1A(a).
    \16\ According to the Exchange, SPX currently trades on the
Hybrid 3.0 trading platform during Regular Trading Hours (except
that the weekly SPX series trade on the Hybrid trading platform
during Regular Trading Hours). Pursuant to proposed Rule 6.1A(b),
SPX will trade on the Hybrid trading platform (and not the Hybrid
3.0 trading platform) during Extended Trading Hours and thus will
trade pursuant to rules applicable to the Hybrid trading platform
(rather than the Hybrid 3.0 trading platform) during Extended
Trading Hours. See Notice, supra note 3 at note 18.
    \17\ See id. at 54759.
    \18\ See id. at note 13.
---------------------------------------------------------------------------

    Access. As is true during Regular Trading Hours, only authorized
Trading Permit Holders, their nominees, and their associated persons
will be able to access CBOE's electronic trading system.\19\ However,
trading privileges will be separate and distinct for

Extended Trading Hours. In other words, a broker-dealer that is not
currently a CBOE member, as well as a current CBOE Trading Permit
Holder (for Regular Trading Hours) will both need to obtain a separate
Extended Trading Hours Trading Permit if they want to trade during
CBOE's new Extended Trading Hours session.\20\ The separate nature of
access for the two trading sessions means that Trading Permit Holders
will need to use separate log-ins for Extended versus Regular Trading
Hours.\21\ In this respect, CBOE's systems will be designed to prevent
unauthorized access by persons not eligible to trade on CBOE during the
Extended Trading Hours session.\22\
---------------------------------------------------------------------------

    \19\ See id. at 54760. This requirement will apply to any non-
U.S. based person seeking access to the Extended Trading Hours
session. Persons that are not Trading Permit Holders, such as
employees of affiliates of Trading Permit Holders located outside of
the United States, will not have direct access to the Exchange, and
thus their orders and quotes must be submitted to the Exchange
through a Trading Permit Holder, subject to applicable laws, rules,
and regulations. See id. at note 59.
    \20\ See proposed CBOE Rule 6.1A(d). The Exchange represents
that it will make available a sufficient number of Trading Permits
during Extended Trading Hours to comply with Section 6(c)(4) of the
Act. See Amendment No. 1, supra note 4. The Exchange intends to set
the initial limit of Extended Trading Hours Trading Permits at 900
Market Maker Trading Permits and 150 Electronic Access Trading
Permits (the same total number as available during Regular Trading
Hours). See id.
    \21\ See Notice, supra note 3 at 54765.
    \22\ See Amendment No. 1, supra note 4.
---------------------------------------------------------------------------

    Market Makers. CBOE's proposal contemplates participation from
Market Makers in the Extended Trading Hours session. To be eligible,
Market Makers will need to obtain a separate Extended Trading Hours
Trading Permit and also will need to request a separate appointment
during Extended Trading Hours.\23\ During Extended Trading Hours,
Market Makers will be required to maintain continuous electronic quotes
in 60% of the non-adjusted options series of the Market Maker's
appointed classes that expire in less than nine months for 90% of the
time when the Market Maker is quoting in a class.\24\ In addition, the
Exchange's proposal gives it the authority to determine to have no bid/
ask differential requirement in the Extended Trading Hours session.\25\
Further, Market Makers generally will be able to use the same Exchange
functionality during Extended Trading Hours that is available to them
during Regular Trading Hours. For example, Market Makers may elect to
use a quote risk monitor (``QRM'') mechanism during Extended Trading
Hours. Although, a Market Maker that elects to use QRM for both Regular
Trading Hours and Extended Trading Hours will need to establish
parameters separately for each trading session (even though a Market
Maker may elect to use the same parameters for both trading sessions or
use QRM for one trading session and not the other).\26\
---------------------------------------------------------------------------

    \23\ See proposed CBOE Rule 6.1A(e). For Extended Trading Hours,
the appointment cost for VIX will be 0.5 and for SPX it also will be
0.5. Each Extended Trading Hours Trading Permit will have an
appointment credit of 1.0 (the same as a Regular Trading Hours
Trading Permit), so at the launch of Extended Trading Hours, a
Market Maker will only need to hold one Extended Trading Hours
Trading Permit if it wants to quote in both SPX and VIX during
Extended Trading Hours. See Notice, supra note 3 at 54760. See also
proposed CBOE Rule 6.1A(e)(i).
    \24\ See proposed CBOE Rule 6.1A(e)(ii).
    \25\ See id.
    \26\ See proposed CBOE Rule 8.18.
---------------------------------------------------------------------------

    LMMs. The Exchange also may approve one or more Market Makers to
act as Lead Market Makers (``LMMs'') in each class during Extended
Trading Hours.\27\ Unlike Regular Trading Hours, however, LMMs will
only be required to comply with the continuous quoting obligations and
other obligations applicable to regular Market Makers in their assigned
classes.\28\ Consequently, LMMs will not be entitled to receive a
participation entitlement in the Extended Hours Session.\29\ However,
if an LMM meets specific performance criteria during a month, it will
be eligible to receive a specified monetary incentive from CBOE.
Specifically, if an LMM: (1) Provides continuous electronic quotes in
at least the lesser of 99% of the non-adjusted series or 100% of the
non-adjusted series minus one call-put pair in an Extended Trading
Hours allocated class (excluding intra-day add-on series on the day
during which such series are added for trading) during Extended Trading
Hours in a given month and (2) ensures an opening of the same
percentage of series by 2:05 a.m. for at least 90% of the trading days
during Extended Trading Hours in a given month, the LMM will be
eligible to receive a rebate for that month in an amount set forth in
the Exchange Fees Schedule.\30\ For purposes of this heightened
continuous quoting standard, an LMM will be deemed to have provided
continuous electronic quotes during Extended Trading Hours if the LMM
provides electronic two-sided quotes for 90% of the time in Extended
Trading Hours in a given month.\31\
---------------------------------------------------------------------------

    \27\ See proposed CBOE Rule 6.1A(e)(iii)(A).
    \28\ See proposed CBOE Rule 6.1A(e)(iii)(B).
    \29\ See, e.g., CBOE Rules 6.45B and 8.15B (concerning
participation entitlements).
    \30\ CBOE's adoption of any such rebate will be subject to the
rule filing process of Section 19 of the Act. CBOE is not proposing
any rebate in this current proposal.
    \31\ See proposed CBOE Rule 6.1A(e)(iii)(C). Because the
heightened quoting standard for LMMs in the Extended Hours Trading
session is applicable only to a fee rebate and not a participation
entitlement, the monthly measuring period is separate and distinct
from the heightened quoting standard in the Regular Trading Hours
session, which is measured on a daily basis. See Notice, supra note
3 at 54762.
---------------------------------------------------------------------------

    Trading. During Extended Trading Hours, the Exchange proposes to
limit the available order types that may be entered into the system.
Specifically, in recognition of the expected reduced liquidity, higher
volatility, and wider spreads during Extended Trading Hours, the
Exchange will not allow market orders, market-on-close orders, stop
orders, and good-til-cancelled orders.\32\ Otherwise, order processing
during Extended Trading Hours will operate in the same manner as it
does for Regular Trading Hours and there will be no change to ranking,
display, or allocation algorithms rules.\33\ Moreover, there will be no
change between Regular and Extended Trading Hours in regards to the
processes for clearing, settlement, exercise, and expiration.\34\ In
addition, the Exchange will report the best bid and offer and executed
trades to the Options Price Reporting Authority (``OPRA'') during
Extended Trading Hours in the same manner that it reports that
information to OPRA during Regular Trading Hours.\35\
---------------------------------------------------------------------------

    \32\ See Notice, supra note 3 at 54763. See also proposed CBOE
Rule 6.1A(f).
    \33\ See Notice, supra note 3 at 54765. The Exchange also
intends to activate the complex order auction and the automated
improvement mechanism (``AIM'') auction during Extended Trading
Hours. These auctions will operate in the same manner as they do
during Regular Trading Hours, except with respect to AIM, the
requirement that three Market Makers must be quoting to initiate an
AIM auction will not apply during Extended Trading Hours. See id. at
note 43.
    \34\ See Notice, supra note 3 at 54765. According to the
Exchange, the Options Clearing Corporation has stated that it will
be able to clear and settle all transactions and handle exercises of
options during Extended Trading Hours. See id. at note 48. In
addition, the Exchange has represented that it will work with OCC to
establish procedures in connection with on-boarding Trading Permit
Holders to ensure that Extended Trading Hours Trading Permit Holders
only utilize clearing brokers that are properly authorized by OCC
for operating during Extended Trading Hours. See Amendment No. 1,
supra note 4.
    \35\ See Notice, supra note 3 at 54765. The operator of OPRA has
informed CBOE that it intends to add a modifier to the disseminated
information during Extended Trading Hours. See id. at note 57. The
Exchange also will disseminate Extended Trading Hours data through
its proprietary data feed in the same format and manner that it
distributes data during Regular Trading Hours. See id. at 54765. Any
fees to be charged by CBOE for the Extended Trading Hours
proprietary data feed will be subject to a separate fee change
filing. See id. at note 49.
---------------------------------------------------------------------------

    The Exchange also may halt trading during Extended Trading Hours in
the interests of a fair and orderly market largely in the same manner
that it can during Regular Trading Hours.\36\ For

example, if there was a marketwide trading halt at the end of the prior
trading day, CBOE could consider that as an ``unusual condition'' in
determining whether to halt trading during the following day's Extended
Trading Hours session.\37\ Separately, CBOE proposed to amend its trade
halt rule to provide that it also may consider whether trading in
related futures has been halted as a factor in determining whether to
halt trading in an option.\38\
---------------------------------------------------------------------------

    \36\ See proposed CBOE Rule 24.7(d). Further, clearly erroneous
trade breaks during Extended Trading Hours will be processed in the
same manner as Regular Trading Hours, except that during Extended
Trading Hours, only two Exchange Officials that are members of the
Exchange's staff will be necessary to make such a determination. See
Notice, supra note 3 at 54765.
    \37\ See Notice, supra note 3 at 54766; and proposed CBOE Rule
24.7(d). Also, under the proposed rule change, CBOE will not have to
consider during Extended Trading Hours existing factors that are not
applicable to the Extended session, such as (i) the extent to which
trading is not occurring in the stocks or options underlying the
index; (ii) the current calculation of the index derived from the
current market prices of the stocks is not available; (iii) the
``current index level'' for a volatility index is not available or
the cash (spot) value for a volatility index is not available; and
(iv) the extent to which the rotation has been completed or other
factors regarding the status of the rotation, in determining whether
to halt trading during Extended Trading Hours. See Notice, supra
note 3 at note 53; and proposed CBOE Rule 24.7(d).
    \38\ See proposed CBOE Rule 24.7, Interpretation and Policies
.01. Currently, CBOE's rule allows it to consider the activation of
price limits on futures exchanges when determining whether to halt
trading in an index options. The proposed change will allow CBOE to
consider any halt in futures trading, including halts called in
situations other than in response to the activation of a price
limit. See Notice, supra note 3 at 54765.
---------------------------------------------------------------------------

    Surveillance and Disclosures. The Exchange has represented that it
will perform all necessary surveillance coverage and will have
appropriately trained and qualified regulatory and operations staff in
place during Extended Trading Hours to satisfy its regulatory
obligations and administer the Extended Trading Hours session in real
time.\39\ In addition, because of the differences in the nature of the
market and trading between Regular and Extended Trading Hours, CBOE
will require Trading Permit Holders to disclose to customers that
trading during Extended Trading Hours may involve material risks,
including, in part, the possibility of lower liquidity, higher
volatility, and lack of an updated underlying index or portfolio
value,\40\ prior to accepting an order from a customer for execution
during Extended Trading Hours.\41\ The Exchange also will distribute a
Regulatory Circular detailing, among other things, some of the risks of
trading during Extended Trading Hours.\42\
---------------------------------------------------------------------------

    \39\ See Notice, supra note 3 at 54765 and 54767.
    \40\ CBOE is the index calculator for the VIX. According to
CBOE, the accuracy of the calculation for VIX indicative (or spot)
values depends upon the quality of bid and offer quotes for
constituent SPX option series. CBOE is unsure whether the SPX option
quotes displayed during Extended Trading Hours will be sufficient to
calculate accurate and meaningful VIX indicative quote values during
Extended Hours. Accordingly, CBOE has determined to not calculate
VIX spot values during Extended Trading Hours. See Amendment No. 1,
supra note 4. However, as the Exchange and market participants gain
experience with the Extended Trading Hours session and if activity
and market maker participation increases, the Commission expects
CBOE to reevaluate this decision and consider disseminating a VIX
index value if and when quoting activity becomes sufficient to allow
CBOE to calculate accurate and meaningful VIX index values during
the Extended Trading Hours session.
    \41\ See proposed CBOE Rule 6.1A(j).
    \42\ See Notice, supra note 3 at 54764.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful consideration, the Commission finds that the proposed
rule change, as modified by Amendment Nos. 1 and 2, is consistent with
the requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\43\ In particular, the
Commission finds that the proposed rule change, as amended, is
consistent with Section 6(b)(5) of the Act,\44\ which requires, among
other things, 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. While no other options
exchange is currently open for trading outside of Regular Trading
Hours, the Commission notes that it has previously approved extended
trading hours in the cash equities markets.\45\
---------------------------------------------------------------------------

    \43\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \44\ 15 U.S.C. 78f(b)(5).
    \45\ See e.g., Securities Exchange Act Release Nos. 29237 (May
24, 1991), 56 FR 24853 (May 31, 1991) (SR-NYSE-90-52 and SR-NYSE-90-
53) (approving an off-hours trading facility on a pilot basis);
42004 (October 13, 1999), 64 FR 56548 (October 20, 1999) (SR-CHX-99-
16) (approving extended trading hours on a pilot basis); and 56985
(December 18, 2007), 72 FR 73388 (December 27, 2007) (SR-NASDAQ-
2007-098) (approving the trading of certain securities outside of
regular market hours).
---------------------------------------------------------------------------

    The proposed rule change, as modified by Amendment Nos. 1 and 2,
will allow investors additional trading opportunities to trade in two
CBOE exclusively-listed products outside of CBOE's current Regular
Trading Hours. The hours of CBOE's proposed Extended Trading Hours
roughly coincide with the regular trading hours in Europe, and
therefore CBOE's proposal may be of particular interest to traders
located in non-U.S. jurisdictions. At the same time, CBOE has proposed
certain limitations and protections on access and trading during
Extended Trading Hours that are designed to promote just and equitable
principles of trade and foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities. For example, as discussed above, only authorized Trading
Permit Holders, their nominees, and their associated persons will be
able to access the CBOE trading system during Extended Trading Hours,
and CBOE's system is designed to allow CBOE to restrict unauthorized
access to its systems in Extended Trading Hours.\46\ Specifically, CBOE
is requiring a new class of trading permits for Extended Trading Hours
with their own unique log-in ID, and only persons in possession of
those credentials will have access to CBOE's systems to trade during
Extended Trading Hours. Moreover, consistent with fostering cooperation
and coordination with persons engaged in clearing and settling
transactions in securities, CBOE has represented that it will work with
OCC to establish procedures in connection with on-boarding Extended
Trading Hours permit holders to ensure that Trading Permit Holders only
utilize clearing brokers that have been properly authorized by OCC for
operating during Extended Trading Hours.\47\ This process is designed
to help assure the orderly functioning of the clearing process in
Extended Trading Hours by avoiding any risk associated with a CBOE
permit holder trading through a clearing broker during Extended Trading
Hours if such clearing broker does not, in OCC's opinion, meet OCC's
standards for clearing outside of regular trading hours.
---------------------------------------------------------------------------

    \46\ The Commission notes that in order to be a Trading Permit
Holder, an individual or organization must be, in part, registered
as a broker or dealer pursuant to Section 15 of the Act or be
associated with a Trading Permit Holder organization that is
registered as a broker or dealer pursuant to Section 15 of the Act.
See CBOE Rules 3.2 and 3.3.
    \47\ See Amendment No. 1, supra note 4.
---------------------------------------------------------------------------

    In addition, as discussed above, all of CBOE's rules, with certain
exceptions, will continue to apply during Extended Trading Hours. These
rules, among other things, prohibit Trading Permit Holders from
engaging in acts or practices inconsistent with just and equitable
principles of trade, making any willful or material misrepresentation
or omission in any

application, report, or other communication to the Exchange or the OCC,
and from effecting or inducing the purchase, sale, or exercise of any
security for the purpose of manipulating the price or activity of the
security,\48\ as well as impose best execution requirements and
prohibit trading ahead of customer orders.\49\ In addition, the
Exchange has represented that it will revise its surveillance
procedures to incorporate transactions that occur and orders and
quotations that are submitted during Extended Trading Hours and perform
all necessary surveillance coverage during Extended Trading Hours.\50\
Importantly, CBOE has represented that it will have a sufficient number
of appropriately qualified staff on-site and otherwise available as
necessary during Extended Trading Hours to provide support and handle
any operations and regulatory issues that may arise.\51\ CBOE's
represented commitment to adequately staff its operations during
Extended Trading Hours is important to assure the integrity of CBOE's
operations during those early morning hours and necessary to assure
that CBOE is able to carry out and enforce its rules during this
session, including rules relating to trading halts and obvious error
trades, as well as thoroughly monitor trading and the operations of its
trading systems. Accordingly, the Commission believes that CBOE has
designed its Extended Trading Hours session to promote just and
equitable principles of trade and prevent fraudulent and manipulative
acts and practices to the same extent that its Regular Trading Hours
session has been so designed.
---------------------------------------------------------------------------

    \48\ See Chapter IV (Business Conduct) of CBOE's rules.
    \49\ See CBOE Rules 53.2 (Prohibition Against Trading Ahead of
Customer Orders) and 53.8 (Best Execution and Interpositioning). The
Commission notes that CBOE Rule 53.2, Interpretations and Policies
.07, specifically provides that Trading Permit Holders may limit the
life of a customer order to the period of normal market hours.
However, if the customer and Trading Permit Holder agree to the
processing of the customer's order outside normal market hours, the
protections of the rule will apply to that customer's order for the
entirety of the agreed upon executable time.
    \50\ See Notice, supra note 3 at 54765 and 54767.
    \51\ See id.
---------------------------------------------------------------------------

    The Commission also believes that CBOE's disclosure requirement
that obligates members to make certain written disclosures to customers
regarding material trading risks that may exist during Extended Trading
Hours is consistent with the protection of investors.\52\ Specifically,
Trading Permit Holders will be required to make certain disclosures to
customers regarding the risk of lower liquidity, higher volatility, and
wider spreads during Extended Trading Hours as compared to Regular
Trading Hours.\53\ The Commission believes that such disclosures should
help ensure that customers are reasonably informed about the specific
risks associated with trading in the non-core market before they decide
to submit their first order in the Extended Trading Hours session.
Further, these requirements are designed to mitigate, to the extent
possible, the likelihood of investor confusion regarding the
significant differences between the character of the market typical of
Regular and Extended Trading Hours sessions.
---------------------------------------------------------------------------

    \52\ See proposed CBOE Rule 6.1A(j).
    \53\ See id.
---------------------------------------------------------------------------

    The Commission further believes that CBOE's proposal to use a fully
electronic trading platform during Extended Trading Hours that shares
most of the functionality of its Hybrid System is reasonable. As
discussed above, CBOE will use separate servers and hardware for the
Extended Trading Hours session and the two sessions will not be linked
or otherwise interact with each other. Nevertheless, according to the
Exchange, orders will be processed in the same manner during Extended
Trading Hours as Regular Trading Hours and there will be no changes to
the ranking, display, or allocation algorithm rules.\54\ CBOE also
explained that there will be no changes to the processes for clearing,
settlement, exercise, and expiration.\55\ The Commission believes that
maintaining separate infrastructure for the two separate trading
systems is designed to protect the resiliency of the Regular Trading
Hours session. Further, utilizing the existing trading and clearing
process for the Extended Trading Hours session that CBOE uses for its
electronic trading during Regular Trading Hours should facilitate the
ability of CBOE members to trade in the new session on terms and with
functionality that is familiar to them.
---------------------------------------------------------------------------

    \54\ See Notice, supra note 3 at 54758.
    \55\ See id. at 54765.
---------------------------------------------------------------------------

    However, there will be some differences during Extended Trading
Hours, such as returning certain kicked-out orders to a Trading Permit
Holder in lieu of routing such order to PAR, and limiting the types of
orders available for electronic processing to avoid the use of market
orders or any order that could convert into a market order. The
Commission believes these differences reflect that the character of
trading during Extended Trading Hours will likely differ from typical
trading during Regular Trading Hours, including the likelihood of
reduced liquidity, higher volatility, and wider spreads during Extended
Trading Hours.
    Furthermore, CBOE has proposed to provide for Market Makers during
Extended Trading Hours. Any Market Maker that elects to have an
appointment during Extended Trading Hours will be subject to the same
general quoting obligations as are applicable during Regular Trading
Hours, though CBOE may determine not to impose bid/ask differential
requirements during Extended Trading Hours.\56\
---------------------------------------------------------------------------

    \56\ As noted above, Market Makers will not have to satisfy the
open outcry quoting obligations since all trading during Extended
Trading Hours will be electronic. See proposed CBOE Rule
6.1A(e)(ii).
---------------------------------------------------------------------------

    CBOE also has provided for Lead Market Makers, though the
Commission notes that LMMs will not be entitled to a participation
entitlement in Extended Trading Hours. However, LMMs that satisfy a
heightened quoting standard during a month will be eligible to receive
a rebate from CBOE for that month.\57\ The Commission believes that
CBOE's proposed LMM incentive program during Extended Trading Hours is
designed to encourage two-sided liquidity during Extended Trading Hours
and, to the extent it is successful, may contribute to the maintenance
of fair and orderly markets during Extended Trading Hours. To the
extent that CBOE is successful in encouraging active participation of
Market Makers and LMMs during Extended Trading Hours, then CBOE may be
able to help address some of the risks inherent in a non-core hours
trading session, including the risks of reduced liquidity, higher
volatility, and wider markets. Therefore, the proposal's provision for
Market Makers and LMMs during the Extended Trading Hours session is
consistent with the protection of investors and the public interest as
well as the promotion of fair and orderly markets.
---------------------------------------------------------------------------

    \57\ The Commission notes that the Exchange will need to submit
a proposed rule change pursuant to Section 19(b) of the Act if and
when it seeks to add such a rebate for LMMs to the Exchange's fee
schedule.
---------------------------------------------------------------------------

    The Commission also believes that CBOE's proposed changes to its
trading halt rule are consistent with the Act and designed to promote
fair and orderly markets. The Commission notes that the Exchange will
consider halting trading during Extended Trading Hours in the interests
of a fair and orderly market in the same manner that it could halt
trading during Regular Trading Hours. CBOE's proposed amendment to the
trading halt rule to allow it to consider a halt in trading in related
futures contracts is a reasonable additional

factor and consistent with the existing factors under the rule that
allows CBOE to consider the activation of price limits in the futures
markets.\58\
---------------------------------------------------------------------------

    \58\ See proposed CBOE Rule 24.7, Interpretations and Policies
.01.
---------------------------------------------------------------------------

    In addition, the Commission finds that the proposed rule change, as
amended, is consistent with Section 11A(a)(1)(C) of the Act.\59\
Congress found in those provisions that it is in the public interest
and appropriate for the protection of investors and the maintenance of
fair and orderly markets to assure the availability to brokers,
dealers, and investors of information with respect to quotations for
and transactions in securities, and to assure the practicability of
brokers executing investors' orders in the best market. The proposed
rule change is designed to accomplish these objectives by ensuring that
the Exchange will report its best bid and offer and executed trades to
OPRA during Extended Trading Hours in the same manner that they are
reported during Regular Trading Hours,\60\ thereby providing public
transparency of activity in the Extended Trading Hours market.
---------------------------------------------------------------------------

    \59\ 15 U.S.C. 78k-1(a)(1)(C).
    \60\ See Notice, supra note 3 at 54765. See also supra note 35
(noting that OPRA intends to add a modifier to Extended Trading
Hours quotes and trades).
---------------------------------------------------------------------------

IV. Solicitation of Comments on Amendment Nos. 1 and 2

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment Nos. 1
and 2 are 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 No. SR-CBOE-2014-062 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-CBOE-2014-062. 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 such filing will also 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 No. SR-CBOE-2014-062 and should be
submitted on or before December 26, 2014.

V. Accelerated Approval of Proposed Rule Change as Modified by
Amendment Nos. 1 and 2

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment Nos. 1 and 2, prior to the thirtieth
day after the date of publication of notice of Amendment Nos. 1 and 2
in the Federal Register. The Commission notes that, in addition to
filing Amendment Nos. 1 and 2 with the Commission, CBOE also submitted
Amendment No. 1 and 2 as comments to the file, which the Commission
promptly posted on its Web site on October 27, 2014 and November 21,
2014, respectively, in order to promote public availability and
accessibility of the Amendments. The Commission notes that it did not
receive any comments on CBOE's initial proposal or on either Amendment
Nos. 1 or 2 prior to the date of this order.
    In Amendment No. 1, the Exchange made several discrete changes to
its proposal to provide additional clarity and further legal support
for why its proposal is consistent with the Act. In particular, CBOE
represented that it will establish procedures with OCC to ensure that
Trading Permit Holders only utilize clearing brokers that have been
authorized by OCC to clear during Extended Trading Hours.\61\ Further,
CBOE clarified that it will be able to prohibit an unauthorized user
from accessing the trading system during Extended Trading Hours.\62\
CBOE also represented that it will comply with the provisions of
Section 6(c)(4) of the Act in making Trading Permits available during
Extended Trading Hours by authorizing a total of 1,050 total permits
for the Extended Trading Hours session.\63\ Finally, CBOE provided
additional support to justify its decision to not disseminate VIX
values during Extended Trading Hours.\64\ As the index calculator for
VIX, CBOE explained that it does not currently know whether SPX options
quotes (on which the VIX index is calculated) displayed in Extended
Trading Hours will be sufficient to calculate an accurate and
meaningful VIX indicative value in the same manner as what typically
occurs during Regular Trading Hours. CBOE further pledged to reconsider
the issue in the future and reassess whether trading in the Extended
Trading Hours session rises to a sufficient level that is capable of
supporting the calculation of accurate and meaningful VIX indicative
values. The Commission believes that these proposed changes in
Amendment No. 1 are reasonable and clarify the application and
operation of CBOE's original proposal in a manner that is materially
consistent with the scope of what CBOE originally proposed and what the
Commission noticed for public comment in the Federal Register.
---------------------------------------------------------------------------

    \61\ See Amendment No. 1, supra note 4.
    \62\ See id.
    \63\ See id.
    \64\ See id.
---------------------------------------------------------------------------

    In addition, in Amendment No. 1, CBOE revised its proposed rules
regarding foreign Trading Permit Holders and access from foreign
jurisdictions. However, in Amendment No. 2 CBOE withdrew those proposed
rule changes. The Commission believes that those proposed changes were
incidental to the Exchange's core proposal to adopt an Extended Trading
Hours session for SPX and VIX, and that their deletion from the
proposal does not raise any concerns with the remainder of the
proposal. If, in the future, CBOE decides to revisit its rules
applicable to foreign Trading Permit Holders, it would need to submit a
proposed rule change filing pursuant to Section 19(b) of the Act.\65\
---------------------------------------------------------------------------

    \65\ 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

    Accordingly, the Commission finds good cause, pursuant to Section
19(b)(2) of the Act, to approve the proposed rule change, as modified
by Amendment Nos. 1 and 2, on an accelerated basis.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\66\ that the

proposed rule change, as modified by Amendment Nos. 1 and 2, (SR-CBOE-
2014-062), be, and it hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \66\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\67\
---------------------------------------------------------------------------

    \67\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2014-28475 Filed 12-3-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: February 20, 2009 (Volume 74, Number 33)]
[Notices]
[Page 7885-7886]
[DOCID:fr20fe09-56]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

February 13, 2009.
    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:
    Docket Numbers: RP09-232-001.
    Applicants: Northern Natural Gas Company.
    Description: Northern Natural Gas Company submits Eighth Revised
Sheet 403A et al. to its FERC Gas Tariff, Fifth Revised Volume 1, to be
effective 2/21/09.
    Filed Date: 02/03/2009.
    Accession Number: 20090204-0049.
    Comment Date: 5 p.m. Eastern Time on Wednesday, February 18, 2009.

    Docket Numbers: RP09-338-001.
    Applicants: Portland Natural Gas Transmission System.
    Description: Portland Natural Gas Transmission System submits First
Revised Sheet 343 et al. to FERC Gas Tariff, Second Revised Volume 1
for

compliance with Commission Order 712.
    Filed Date: 02/12/2009.
    Accession Number: 20090213-0163.
    Comment Date: 5 p.m. Eastern Time on Friday, February 20, 2009.

    Docket Numbers: RP09-283-001.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Iroquois Gas Transmission System, LP submits Seventh
Revised Sheet 50B to FERC Gas Tariff, First Revised Volume 1.
    Filed Date: 02/11/2009.
    Accession Number: 20090212-0055.
    Comment Date: 5 p.m. Eastern Time on Monday, February 23, 2009.

    Docket Numbers: RP09-294-001.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Columbia Gas Transmission, LLC submits Eighth Revised
Sheet 351 to FERC Gas Tariff, Second Revised Volume 1.
    Filed Date: 02/11/2009.
    Accession Number: 20090212-0261.
    Comment Date: 5 p.m. Eastern Time on Monday, February 23, 2009.

    Docket Numbers: RP09-358-000.
    Applicants: Dominion South Pipeline Company, LP.
    Description: Dominion South Pipeline Company, LP submits for filing
1st Revised Sheet 1000 et al. for inclusion in FERC Gas Tariff,
Original Volume 1, with a proposed effective date of 3/12/09.
    Filed Date: 02/11/2009.
    Accession Number: 20090212-0271.
    Comment Date: 5 p.m. Eastern Time on Monday, February 23, 2009.

    Docket Numbers: RP09-359-000.
    Applicants: Dominion Cove Point LNG, LP.
    Description: Dominion Cove Point LNG, LP submits for filing 8th
Revised Sheet 200 et al. for inclusion in FERC Gas Tariff, Original
Volume 1, with a proposed effective date of 3/12/09.
    Filed Date: 02/11/2009.
    Accession Number: 20090212-0270.
    Comment Date: 5 p.m. Eastern Time on Monday, February 23, 2009.

    Docket Numbers: RP09-360-000.
    Applicants: Dominion Transmission, Inc.
    Description: Dominion Transmission, Inc submits for filing 17th
Revised Sheet 1000 et al. to FERC Gas Tariff, Third Revised Volume 1,
with a proposed effective date 3/12/09.
    Filed Date: 02/11/2009.
    Accession Number: 20090212-0269.
    Comment Date: 5 p.m. Eastern Time on Monday, February 23, 2009.

    Docket Numbers: RP09-361-000.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Columbia Gas Transmission submits First Revised Sheet
25C to Second Revised Volume 1 under RP09-361, with a proposed
effective date of 4/1/09.
    Filed Date: 02/11/2009.
    Accession Number: 20090212-0268.
    Comment Date: 5 p.m. Eastern Time on Monday, February 23, 2009.

    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. 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. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St., NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also 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 dockets(s). For assistance
with any FERC Online service, please e-mail<EMAIL_ADDRESS>
or call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary. CNFGAS02132009
[FR Doc. E9-3634 Filed 2-19-09; 8:45 am]

BILLING CODE 6717-01-P