[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 690-691]
[FR Doc No: 2013-31521]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71206; File No. SR-DTC-2013-12]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Revise the Fee Schedule of the Depository Trust Company With Respect to
Its Underwriting Service

December 30, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 23, 2013, the Depository Trust Company (``DTC'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared by DTC. DTC filed the proposed rule change pursuant to
Section 19(b)(3)(A)(ii) \3\ of the Act and Rule 19b-4(f)(2) \4\
thereunder; the proposed rule change was effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    The proposed rule change is to modify DTC's Rules and Procedures,
as described below.

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

    In its filing with the Commission, DTC 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. DTC 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

(i) Purpose
    Pursuant to the proposed rule change DTC will revise certain
Underwriting service fees as more fully described below. Under the
proposal, in order to align costs of processing to the associated
revenue, DTC will replace Underwriting service fees which are currently
applied with respect to eligibility processing for equity, corporate
bond and municipal bond transactions (in tiered amounts depending upon
the complexity of an issue) with new fees specific to the respective
asset classes. Pursuant to the proposal DTC will charge Participants a
fixed Underwriting fee for eligibility processing for municipal issues
with one CUSIP, and a separate greater fixed fee for issues with more
than one CUSIP. Underwriting fees for equities and corporate issues
will migrate to a fee per CUSIP structure with an initial fixed fee for
the first CUSIP and an incremental fee for each additional CUSIP. Also
in order to align processing costs with associated revenues, the
current fixed Underwriting fee for processing of eligibility requests
by Participants for certificates of deposit will be lowered. In
addition, DTC proposes to implement a separate fee to be charged to
Participants for processing of book-entry only (BEO) certificates
deposited at DTC. This will allow DTC to recover costs associated with
processing BEO certificates (as opposed to ``FAST'' issues where the
security remains on the books of the transfer agent and DTC does not
incur the cost of processing certificates issued in the name of DTC's
nominee, Cede & Co.).
Proposed Rule Changes
    The revised fees are set forth in the tables below:

                              Deleted Fees
------------------------------------------------------------------------
              Fee description                        Fee amount
------------------------------------------------------------------------
Basic (Single CUSIP) Eligibility Fee......  $350 per Issue.
Basic (Multi CUSIP) Eligibility Fee.......  $500 per Issue.
Complex Eligibility Fee...................  $750 per Issue.
------------------------------------------------------------------------

                                New Fees
------------------------------------------------------------------------
              Fee description                        Fee amount
------------------------------------------------------------------------
Equity Eligibility Fee....................  $750 per Issue w/1 CUSIP
                                             PLUS.
                                            $250 Each Additional CUSIP.
Corporate Debt Eligibility Fee............  $350 per Issue w/1 CUSIP
                                             PLUS.
                                            $250 Each Additional CUSIP.
Municipal Debt Eligibility Fee............  $350 per Issue w/1 CUSIP;
                                            $800 per Issue w/more than 1
                                             CUSIP.
BEO Certificate (Non-FAST) Processing Fee.  $50 per CUSIP; up to a
                                             maximum charge of $500 per
                                             Issue.
------------------------------------------------------------------------

                                                   Fee Change
----------------------------------------------------------------------------------------------------------------
             Fee description                    Current fee amount                 Proposed fee amount
----------------------------------------------------------------------------------------------------------------
Certificate of Deposit Eligibility Fee...  $275 per CUSIP..............  $175 per CUSIP.
----------------------------------------------------------------------------------------------------------------

    The fee changes set forth above will be incorporated into DTC's fee
schedule which is available at www.dtcc.com.
Implementation Timeframe
    The proposed fee changes will take effect on January 1, 2014.
(ii) Statutory Basis
    The proposed rule change will align DTC's Underwriting fees with
the costs of delivering applicable services, and the charges will apply
equally in accordance with Participants' use of DTC services.
Therefore, DTC believes the proposed rule change is consistent with the
requirements of the Securities Exchange Act of 1934, as amended
(``Act'') and the rules and regulations thereunder applicable to DTC,
in particular Section 17A(b)(3)(D) of the Act,\5\ which requires that
DTC's Rules provide for the equitable allocation of reasonable dues,
fees, and other charges among its Participants.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

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

    DTC does not believe that the proposed rule change will have any
impact, or impose any burden, on competition. As stated above, the
proposed changes will align DTC's fees with the costs of delivering
services to its Participants, and the revised fee schedule will apply
equally to all DTC Participants in accordance with their use of DTC's
Underwriting service.

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

    Written comments relating to the proposed rule change have not yet
been solicited or received. DTC will notify the Commission of any
written comments received by DTC.

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

    The foregoing rule change will become effective on January 1, 2014,
pursuant to Section 19(b)(3)(A) \6\ of the Act and paragraph (f)(2) of
Rule 19b-4 \7\ thereunder. At any time within 60 days of the filing of
the proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2)
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-DTC-2013-12 on the subject line.

Paper Comments

     Send in triplicate to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission, 100 F Street NE., Washington, DC
20549-1090.

All submissions should refer to File No. SR-DTC-2013-12. 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 filings will also be available
for inspection and copying at the principal office of DTC.
    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-DTC-2013-12 and
should be submitted on or before January 27, 2014.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-31521 Filed 1-3-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 52 (Monday, March 18, 2013)]
[Notices]
[Pages 16666-16667]
[FR Doc No: 2013-06094]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP13-675-000.
    Applicants: Dominion Transmission, Inc.,Dominion South Pipeline
Company, LP,Dominion Cove Point LNG, LP.
    Description: Dominion Transmission, Inc., et al. submits Request
for Temporary Waiver of Certain NAESB Standards and Commission
Regulations.
    Filed Date: 3/5/13.
    Accession Number: 20130305-5198.
    Comments Due: 5 p.m. ET 3/13/13.

    Docket Numbers: RP13-676-000.
    Applicants: East Tennessee Natural Gas, LLC.
    Description: Scheduling Flexibility to be effective 6/1/2013.
    Filed Date: 3/7/13.
    Accession Number: 20130307-5143.
    Comments Due: 5 p.m. ET 3/19/13.

    Docket Numbers: RP13-677-000.
    Applicants: Saltville Gas Storage Company L.L.C.
    Description: Scheduling Flexibility to be effective 6/1/2013.
    Filed Date: 3/7/13.
    Accession Number: 20130307-5144.
    Comments Due: 5 p.m. ET 3/19/13.

    Docket Numbers: RP13-678-000.
    Applicants: Trunkline Gas Company, LLC.
    Description: Trunkline Gas Company, LLC submits Precedent Agreement
with Sabine Pass Liquefaction, LLC.
    Filed Date: 3/7/13.
    Accession Number: 20130307-5194.
    Comments Due: 5 p.m. ET 3/19/13.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.

Filings in Existing Proceedings

    Docket Numbers: RP13-571-001.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Non-Conforming Remediation Errata to be effective 3/
18/2013.
    Filed Date: 3/7/13.
    Accession Number: 20130307-5182.
    Comments Due: 5 p.m. ET 3/19/13.

    Docket Numbers: RP12-1013-002.
    Applicants: Ruby Pipeline, L.L.C.
    Description: Ruby Pipeline, L.L.C. submits tariff filing per
154.203: Compliance in Docket No. RP12-1013. Proceeding (Fuel) to be
effective 4/7/2013.
    Filed Date: 3/8/13.
    Accession Number: 20130308-5195.
    Comments Due: 5 p.m. ET 3/20/13.
    Any person desiring to protest in any the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR 385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, and service can be found at:
http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other
information, call<PHONE_NUMBER> (toll free). For TTY, call (202) 502-
8659.

    Dated: March 11, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-06094 Filed 3-15-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 22 (Monday, February 3, 2014)]
[Notices]
[Pages 6253-6256]
[FR Doc No: 2014-02133]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71417; File No. SR-Phlx-2014-04]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Outbound
Routing

January 28, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 15, 2014, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to use Nasdaq Execution Services, LLC
(``NES'') as opposed to Nasdaq Options Services LLC (``NOS'') for
outbound order routing, as explained further below. The Exchange also
proposes to use NES as opposed to NOS to handle the stock component of
a Complex Order, including Complex Orders submitted into the Price
Improvement XL (``PIXL'') System. In addition, the Exchange proposes to
route equities and options orders through NES either directly or
through a third party routing broker-dealer, as explained further
below.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposal is to update the Exchange's rules to
reflect the ability to route orders to other exchanges using either the
Exchange's affiliated broker-dealer or a third party unaffiliated
broker-dealer, which the Exchange may choose to use for efficiency and
potential cost savings.
    Today, the relevant Exchange rules provide that the Exchange shall
route orders in options via Nasdaq Options Services LLC (``NOS'') and
in equities \3\ via Nasdaq Execution Services LLC (``NES''). Both NOS
and NES are affiliates and member organizations of Phlx. As a result,
certain conditions

have been imposed on the existing routing arrangements.\4\
---------------------------------------------------------------------------

    \3\ The Exchange operates an equities market known as PSX.
    \4\ See, e.g., Securities Exchange Act Release No. 59995 (May
28, 2009), 74 FR 26751 (June 3, 2009) (SR-Phlx-2009-32) at 26756.
---------------------------------------------------------------------------

Replacing NOS With NES
    The Exchange proposes to amend its rules to provide that it shall
use NES for routing orders in options rather than NOS. The Exchange has
determined to use NES for outbound routing in options, in addition to
equities. The Exchange originally set up its affiliated broker-dealers
as two separate entities. Now, the Exchange believes that this is
unnecessary and costly. Accordingly, pursuant to Rule 1080(m)(iii), NES
will now be the outbound routing broker for Phlx options. As the new
Routing Facility for options, NES will operate the same way as NOS
currently does, in terms of routing options orders to destination
options exchanges pursuant to Rule 1080(m). This is substantially
similar to NYSEArca's use of its affiliate Archipelago Securities LLC
for order routing in both equities and options.
    In addition to outbound order routing, NOS also, with Commission
approval,\5\ currently executes and reports the underlying security
component of a Complex Order, pursuant to Rule 1080.08(h). A Complex
Order is an order involving the simultaneous purchase and/or sale of
two or more different options series in the same underlying security,
priced as a net debit or credit based on the relative prices of the
individual components, for the same account, for the purpose of
executing a particular investment strategy.\6\ A Complex Order can also
be a stock-option order, which is an order to buy or sell a stated
number of units of an underlying security (stock or Exchange Traded
Fund Share (``ETF'')) coupled with the purchase or sale of options
contract(s).\7\ Members of FINRA or the NASDAQ Stock Market
(``NASDAQ'') are required to have a Uniform Service Bureau/Executing
Broker Agreement (``AGU'') with NOS in order to trade Complex Orders
containing a stock/ETF component; firms that are not members of FINRA
or NASDAQ are required to have a Qualified Special Representative
(``QSR'') arrangement with NOS in order to trade Complex Orders
containing a stock/ETF component. Under this proposal, members will now
be required to have an AGU or QSR with NES. In terms of NOS' role in
the execution of such Complex Orders, the Exchange electronically
communicates the underlying security component of a Complex Order to
NOS, its designated broker-dealer, for immediate execution. The
execution cannot occur on PHLX along with the option component, because
the PHLX options market does not trade equities like stocks or ETFs.
Such execution and reporting occurs otherwise than on the Exchange and
is handled by NOS pursuant to applicable rules regarding equity
trading. NES will now perform this function and this paragraph will be
amended accordingly.
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    \5\ Securities Exchange Act Release No. 63777 (January 26,
2011), 76 FR 5630 (February 1, 2011) (SR-Phlx-2010-157).
    \6\ See Rule 1080.08(a)(i).
    \7\ Id.
---------------------------------------------------------------------------

    Rule 1080(n)(ii)(J) will be amended in a similar fashion. This
subparagraph covers Complex Orders with a stock/ETF component entered
into PIXL, which is a process whereby members electronically submit
orders they represent as agent against principal interest or other
interest that they represent as agent. The submitted orders are stopped
at a price and are subsequently entered into an auction seeking price
improvement. In 2013, the Exchange began accepting Complex Orders into
PIXL, including those with a stock/ETF component.\8\ NOS' role is the
same as for Complex Orders not entered into PIXL, in that NOS executes
the stock/ETF component. NES will now perform this function and this
paragraph will be amended accordingly. Additionally, the Exchange
represents that its prior representations in connection with the
performance of executing the stock/ETF component of both PIXL and non-
PIXL Complex Orders by NOS will apply to NES, including the
representations relating to compliance with Regulation SHO.\9\
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    \8\ Securities Exchange Act Release No. 69845 (June 25, 2013),
78 FR 39429 (July 1, 2013) (SR-Phlx-2013-46).
    \9\ Id. See also Securities Exchange Act Release Nos. 63777
(January 26, 2011), 76 FR 5630 (February 1, 2011) (SR-Phlx-2010-
157); and 63967 (February 25, 2011), 76 FR 12206 (March 4, 2011)
(SR-Phlx-2011-27).
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Third-Party Routing Broker
    The Exchange also proposes to codify in its rules the ability to
use a third-party routing broker to route to away exchanges, rather
than routing directly through NES, for both equities and options. To
date, the Exchange has used a third-party routing broker in equities
and is amending Rule 3315 to clarify this and incorporate the use of a
third-party routing broker expressly into that rule. Specifically,
today, the Exchange routes equities orders to away markets through NES,
which, in turn, sometimes routes directly to away markets; in addition,
sometimes when the Exchange routes equities orders through NES today,
NES routes those orders through a third-party routing broker.
    In options, the Exchange currently routes options orders to NOS,
which routes directly to away markets. The Exchange proposes to use
NES, rather than NOS, as explained above, and to have NES route either
directly to other options exchanges or to a third-party routing broker
(which will, in turn, route to other options exchanges). The Exchange
proposes to amend Rule 1080(m) accordingly.
    Regardless of whether a third-party routing broker is used in
either equities or options, all routing will go through NES, but the
Exchange could determine to direct NES to route orders to certain
exchanges through a routing broker rather than routing an order
directly.
    The Exchange previously stated that from time to time, it may use
non-affiliate third-party broker-dealers to provide outbound routing
services (i.e., third-party Routing Brokers).\10\ In those cases,
orders are submitted to the third-party Routing Broker through the
affiliated routing broker, and the third-party Routing Broker routes
the orders to the routing destination in its name.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release Nos. 68393 (December
10, 2012), 77 FR 74520 (December 14, 2012) (SR-Phlx-2012-134) at
note 4; and 67654 (August 14, 2012), 77 FR 50187 (August 20, 2012)
(SR-Phlx-2012-81) at note 6.
---------------------------------------------------------------------------

    Under this proposal, the relevant rules would now expressly provide
that the Exchange could use one or more third-party unaffiliated
routing broker-dealers (``routing brokers''). Specifically, the
Exchange proposes to amend Rule 1080(m)(iii)(A), which applies to
options, to refer to such routing brokers. The Exchange proposes to
similarly amend Rule 3315(b)(1) respecting equities. The Exchange
proposes to further amend its rules with respect to certain policies
and procedures. Specifically, Rules 1080(m)(iii)(C) and 3315(b)(8)
currently provide that the Exchange shall establish and maintain
procedures and internal controls reasonably designed to adequately
restrict the flow of confidential and proprietary information between
the Exchange and the Routing Facility, and any other entity, including
any affiliate of the Routing Facility. The Exchange proposes to amend
those rules to provide that, where there is a routing broker, the
Exchange shall establish and maintain procedures and internal controls
reasonably designed to adequately restrict the flow of confidential and
proprietary information between the Exchange, the Routing Facility and
any routing broker, and any other entity, including any affiliate of
the routing broker (and if the

routing broker or any of its affiliates engages in any other business
activities other than providing routing services to the Exchange,
between the segment of the routing broker or affiliate that provides
the other business activities and the segment of the routing broker
that provides the routing services).\11\ This way, this provision
extends to the routing broker, if one is used.
---------------------------------------------------------------------------

    \11\ This is substantially similar to NYSEArca Rule 6.96(a)(8).
---------------------------------------------------------------------------

    In both the proposed equities and options rules, the Exchange
proposes to provide that the Exchange may not use a routing broker for
which the Exchange or any affiliate of the Exchange is the designated
examining authority. This is similar to the existing provisions that do
not permit the Exchange to be the designated examining authority for
its affiliated routing brokers.\12\
---------------------------------------------------------------------------

    \12\ See Phlx Rule 1080(m)(iii)(A) (which currently provides
that NOS is a broker-dealer that is a member of an unaffiliated
self-regulatory organization which is the designated examining
authority for the broker-dealer) and Rule 3315(b)(4) (which
currently provides that the designated examining authority for NES
shall be a self-regulatory organization unaffiliated with the
exchange or any of its affiliates). This is also substantially
similar to NYSEArca Rule 6.96(a)(7).
---------------------------------------------------------------------------

    The Exchange also proposes to expressly state in Rule
1080(m)(iii)(G) and Rule 3315(b)(1) that the Exchange will determine
the logic that provides when, how, and where orders are routed away to
other exchanges. In addition, the routing broker(s) cannot change the
terms of an order or the routing instructions, nor does the routing
broker have any discretion about where to route an order. This is
consistent with, but more specific than, the current language that
states that routing is performed under the direction of the
Exchange.\13\
---------------------------------------------------------------------------

    \13\ This is based on NYSEArca Rule 6.96(a)(1)(A).
---------------------------------------------------------------------------

    The Exchange may determine to use a different routing broker by
product or by destination exchange, depending upon the costs and
technological efficiencies involved. The proposal is intended to allow
the Exchange to structure its routing arrangements accordingly. At a
minimum, the Exchange anticipates using a routing broker to access
certain markets where the Exchange finds that the costs of maintaining
a membership (for NES) and/or the costs of connectivity and execution
do not make sense in light of the number or types of orders the
Exchange typically routes to that particular market. These costs
necessarily determine the ultimate costs to the Exchange of routing to
a market, and, in turn, affect how the Exchange chooses to recoup those
costs through its own transaction fees.\14\ Sometimes, it will not make
economic sense for NES to access an exchange directly. Accordingly, the
Exchange intends to use a routing broker where the Exchange determines
that it is appropriate. In addition to costs, the Exchange will also
consider ease of connectivity and execution as well as general
reliability in selecting a routing broker.
---------------------------------------------------------------------------

    \14\ For these reasons, today, transaction fees for orders vary
depending on the market where an order is ultimately executed. See
e.g., Section V of the NASDAQ OMX PHLX Pricing Schedule.
---------------------------------------------------------------------------

    For several weeks, the Exchange has been working with the Financial
Regulatory Authority (``FINRA'') and The Options Clearing Corporation
(``OCC'') to secure the necessary approvals for NES to perform these
functions. The Exchange has now secured those approvals. The Exchange
seeks to complete this process and implement this proposal in January
or February.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \15\ in general, and furthers the objectives of Section
6(b)(5) of the Act \16\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by providing an alternative routing arrangement. The proposal
should remove impediments to and perfect the mechanism of a free and
open market and a national market system by providing customer order
protection and by facilitating trading at away exchanges so customer
orders trade at the best market price. The proposal should also protect
investors and the public interest by fostering compliance with the
Options Order Protection and Locked/Crossed Market Plan. The Exchange
also believes that the proposal to use NES rather than NOS for options
routing is designed to promote just and equitable principles of trade
and to protect investors and the public interest, by eliminating the
costs and inefficiencies associated with operating a separate broker-
dealer for options routing. In addition, the Exchange believes that the
proposal is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers, because there are specific
protections pertaining to the routing broker in light of the potential
conflict of interest where the member routing broker could have access
to information regarding other members' orders or the routing of those
orders. These protections include the Exchange's control over all
routing logic as well as the confidentiality of routing
information.\17\ The proposal to use NES rather than NOS for Complex
Order-related functions is consistent with promoting just and equitable
principles of trade and protecting investors and the public interest,
because it merely substitutes one affiliated broker-dealer for another.
For the same reason, compliance with Regulation SHO will not be
affected.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ See proposed Rules 1080(m)(iii)(G) and 3315(b)(1).
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposal is pro-competitive
because it enables broker-dealers other than NOS and NES to provide
routing services to the Exchange, which has the potential to reduce the
Exchange's costs of routing orders and, potentially, the fees the
Exchange charges for routed orders. The proposal does not raise issues
of intra-market competition, because the Exchange's decision to route
through a particular routing broker would impact all participants
equally.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \18\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\19\
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \19\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.

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

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

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-Phlx-2014-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2014-04. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2014-04 and should be
submitted on or before February 24, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02133 Filed 1-31-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 123 (Tuesday, June 26, 2018)]
[Rules and Regulations]
[Pages 29698-29702]
[FR Doc No: 2018-13598]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R08-OAR-2018-0148; FRL-9979-69--Region 8]

Approval and Promulgation of Air Quality Implementation Plans;
South Dakota; Revisions to the Permitting Rules

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is taking final
action to approve State Implementation Plan (SIP) revisions submitted
by the State of South Dakota on October 4, 2017 related to South
Dakota's Air Pollution Control Program. The October 4, 2017 submittal
revises certain definitions and dates of incorporation by reference and
contains new, amended and renumbered rules. In this rulemaking, we are
taking final action on all portions of the October 4, 2017 submittal,
except for those portions of the submittal which do not belong in the
SIP. This action is being taken under section 110 of the Clean Air Act
(CAA).

DATES: This final rule is effective on July 26, 2018.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-R08-OAR-2018-0148. All documents in the docket are
listed on the http://www.regulations.gov website. Although listed in
the index, some information is not publicly available, e.g.,
confidential business information (CBI) or other information whose
disclosure is restricted by statute. Certain other material, such as
copyrighted material, is not placed on the internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available through http://www.regulations.gov, or please
contact the person identified in the FOR FURTHER INFORMATION CONTACT
section for additional available information.

FOR FURTHER INFORMATION CONTACT: Kevin Leone, Air Program, U.S.
Environmental Protection Agency, Region 8, Mailcode 8P-AR, 1595 Wynkoop
Street, Denver, Colorado 80202-1129,<PHONE_NUMBER>,
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The EPA is taking final action to approve all revisions as
submitted by the State of South Dakota on October 4, 2017, with the
exception of the revisions that we are not acting on, as outlined in
section II.A. of our proposed rulemaking published on April 27, 2018
(83 FR 18496).
    We provided a detailed explanation of the bases for our proposed
approval in our April 27, 2018 rulemaking, which will not be restated
here. See 83 FR 18496. We invited comment on all aspects of our
proposal and provided a 30-day comment period. The comment period ended
on May 29, 2018.
    In this action, we are responding to the comments we received and
taking final rulemaking action on the rules from the State's October 4,
2017, submittal.

II. Brief Discussion of Statutory and Regulatory Requirements

    The changes we are taking final action to approve are consistent
with the CAA and EPA regulations. Specifically:
    1. CAA section 110(a)(2)(C), requires each state plan to include
``a program to provide for . . . the regulation of the modification and
construction of any stationary source within the areas covered by the
plan as necessary to assure that the [NAAQS] are achieved, including a
permit program as required in parts C and D of this subchapter.''
    2. CAA section 110(a)(2)(A), requires that SIPs contain enforceable
emissions limitations and other control measures. Under section CAA
section 110(a)(2), the enforceability requirement in section
110(a)(2)(A) applies to all plans submitted by a state. Chapter 6,
Section 13 creates enforceable obligations for sources by removing
phrases such as ``the plan shall provide'' and ``the plan may
provide.''
    In addition, the CAA (section 110(a)(2)(C)) and 40 CFR 51.160
requires states to have legally enforceable procedures to prevent
construction or modification of a source if it would violate any SIP
control strategies or interfere with attainment or maintenance of the
National Ambient Air Quality Standards (NAAQS). Such minor NSR programs
are for pollutants from stationary sources that do not require
Prevention of Significant Deterioration (PSD) or nonattainment new
source review (NNSR) permits. States may customize the requirements of
the minor NSR program as long as their program meets minimum
requirements.
    Section 110(l) of the CAA states: ``[e]ach revision to an
implementation plan submitted by a State under this Act shall be
adopted by such State after reasonable notice and public hearing. The
Administrator shall not approve a revision to a plan if the revision
would interfere with any applicable requirement concerning attainment
and reasonable further progress (as defined in section 171), or any
other applicable requirement of this chapter.'' South Dakota's new
revisions to ARSD 74:36 will not interfere with attainment, reasonable
further progress (RFP), or

any other applicable requirement of the CAA.

III. Response to Comments

    We received three comments during the public comment period. The
comments were not related to the EPA's proposed rulemaking for South
Dakota's permitting program changes which was published on April 27,
2018. As such, we are not providing a response to the comments.

IV. Final Action

    As outlined in our proposed rulemaking, the EPA finds that the
addition of new, revised and removed rules to ARSD 74:36 will not
interfere with attainment or maintenance of any of the NAAQS in the
State of South Dakota and would not interfere with any other applicable
requirement of the Act or the EPA regulations; and thus, are approvable
under CAA section 110(l). Therefore, we are taking final action to
approve South Dakota's revisions as submitted on October 4, 2017.
    Specifically, we are taking final action to approve the following
revisions: 74:36:01:01 (Definitions)-- 74:36:01:01(8), 74:36:01:01(29),
74:36:01:01(67), 74:36:01:05(1) and 74:36:01:20(5), (7), and (8);
74:36:02 (Ambient Air Quality)--74:36:02:02, 74:36:02:03, 74:36:02:04
and 74:36:02:05; 74:36:03 (Air Quality Episodes)--74:36:03:01 and
74:36:03:02; 74:36:04 (Operating Permits for Minor Sources)--
74:36:04:04; 74:36:06 (Regulated Air Pollutant Emissions)--74:36:06:07;
74:36:09 (Prevention of Significant Deterioration)-- 74:36:09:02 and
74:36:09:03; 74:36:10 (New Source Review)-- 74:36:10:02,
74:36:10:03.01, 74:36:10:05, 74:36:10:07 and 74:36:10:08; 74:36:11
(Performance Testing)--74:36:11:01; 74:36:12 (Control of Visible
Emissions)--74:36:12:01 and 74:36:12:03; 74:36:18 (Regulations for
State Facilities in the Rapid City Area)--74:36:18:10; 74:36:20
(Construction Permits for New Sources or Modifications)--74:36:20:05;
74:36:21 (Regional Haze Program)--74:36:21:02(8), 74:36:21:04,
74:36:21:05 and 74:36:21:09.

V. Incorporation by Reference

    In this rule, the EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, the EPA is finalizing the incorporation by reference of the State
of South Dakota's revisions to its state implementation plan as
described in section IV. of this preamble. The EPA has made, and will
continue to make, these materials generally available through
www.regulations.gov and at the EPA Region 8 Office (please contact the
person identified in the FOR FURTHER INFORMATION CONTACT section of
this preamble for more information). Therefore, these materials have
been approved by the EPA for inclusion in the State Implementation
Plan, have been incorporated by reference by the EPA into that plan,
are fully federally enforceable under sections 110 and 113 of the CAA
as of the effective date of the final rulemaking of the EPA's approval,
and will be incorporated by reference in the next update to the SIP
compilation.\1\
---------------------------------------------------------------------------

    \1\ 62 FR 27968 (May 22, 1997).
---------------------------------------------------------------------------

VI. 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 actions,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves some state law provisions as meeting federal
requirements; this action 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);
     Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866;
     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 Clean Air Act; and
     Does not provide the 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 does not apply on any Indian reservation land
or in any other area where the 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 action 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 August 27, 2018. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action 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 CAA section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by

reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Volatile
organic compounds.

    Dated: June 20, 2018.
Douglas Benevento,
Regional Administrator, Region 8.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart QQ--South Dakota

0
2. Section 52.2170(c) is amended by revising the table entries for:
74:36:01:01; 74:36:01:05; 74:36:01:20; 74:36:02:02; 74:36:02:03;
74:36:02:04; 74:36:02:05; 74:36:03:01; 74:36:03:02; 74:36:04:04;
74:36:06:07; 74:36:09:02; 74:36:09:03; 74:36:10:02; 74:36:10:03.01;
74:36:10:05; 74:36:10:07; 74:36:10:08; 74:36:11:01; 74:36:12:01;
74:36:12:03; 74:36:18:10; 74:36:20:05; 74:36:21:02; 74:36:21:04;
74:36:21:05; and 74:36:21:09 to read as follows:

Sec.  52.2170  Identification of plan.

* * * * *
    (c) * * *

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              State         EPA
             Rule No.                     Rule title        effective    effective   Final rule citation,                     Comments
                                                               date         date             date
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  74:36:01 Definitions
--------------------------------------------------------------------------------------------------------------------------------------------------------
74:36:01:01.......................  Definitions..........    9/13/2017    7/26/2018  [Insert Federal       Except for 74:36:01:01.(73).
                                                                                Register citation],
                                                                                6/26/2018.

                                                                      * * * * * * *
74:36:01:05.......................  Applicable               9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     requirements of the                              Register citation],
                                     Clean Air Act                                    6/26/2018.
                                     defined.

                                                                      * * * * * * *
74:36:01:20.......................  Physical change in or    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     change in the method                             Register citation],
                                     of operation defined.                            6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              74:36:02 Ambient Air Quality
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:02:02.......................  Ambient air quality      9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     standards.                                       Register citation],
                                                                                6/26/2018.
74:36:02:03.......................  Methods of sampling      9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     and analysis.                                    Register citation],
                                                                                6/26/2018.
74:36:02:04.......................  Ambient air              9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     monitoring network.                              Register citation],
                                                                                6/26/2018.
74:36:02:05.......................  Air quality              9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     monitoring                                       Register citation],
                                     requirements.                                    6/26/2018.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              74:36:03 Air Quality Episodes
--------------------------------------------------------------------------------------------------------------------------------------------------------
74:36:03:01.......................  Air pollution            9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     emergency episode.                               Register citation],
                                                                                6/26/2018.
74:36:03:02.......................  Episode emergency        9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     contingency plan.                                Register citation],
                                                                                6/26/2018.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      74:36:04 Operating Permits for Minor Sources
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:04:04.......................  Standard for issuance    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     of a minor source                                Register citation],
                                     operating permit.                                6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       74:36:06 Regulated Air Pollutant Emissions
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:06:07.......................  Open burning             9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     practices prohibited.                            Register citation],
                                                                                6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    74:36:09 Prevention of Significant Deterioration
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:09:02.......................  Prevention of            9/13/2017    7/26/2018  [Insert Federal       Except for 74:36:09:02.(10).
                                     significant                                      Register citation],
                                     deterioration.                                   6/26/2018.
74:36:09:03.......................  Public participation.    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                                                                Register citation],
                                                                                6/26/2018.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               74:36:10 New Source Review
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:10:02.......................  Definitions..........    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                                                                Register citation],
                                                                                6/26/2018.
74:36:10:03.01....................  New source review        9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     preconstruction                                  Register citation],
                                     permit required.                                 6/26/2018.
74:36:10:05.......................  New source review        9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     preconstruction                                  Register citation],
                                     permit required.                                 6/26/2018.

                                                                      * * * * * * *
74:36:10:07.......................  Determining credit       9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     for emissions                                    Register citation],
                                     Offsets.                                         6/26/2018.
74:36:10:08.......................  Projected actual         9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     emissions.                                       Register citation],
                                                                                6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              74:36:11 Performance Testing
--------------------------------------------------------------------------------------------------------------------------------------------------------
74:36:11:01.......................  Stack performance        9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     testing or other                                 Register citation],
                                     testing methods.                                 6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          74:36:12 Control of Visible Emissions
--------------------------------------------------------------------------------------------------------------------------------------------------------
74:36:12:01.......................  Restrictions on          9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     visible emissions.                               Register citation],
                                                                                6/26/2018.

                                                                      * * * * * * *
74:36:12:03.......................  Exceptions granted to    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     alfalfa pelletizers                              Register citation],
                                     or dehydrators.                                  6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                            74:36:18 Regulations for State Facilities in the Rapid City Area
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:18:10.......................  Visible emission         9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     limit for                                        Register citation],
                                     construction and                                 6/26/2018.
                                     continuous operation
                                     activities.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             74:36:20 Construction Permits for New Sources Or Modifications
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:20:05.......................  Standard for issuance    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     of construction                                  Register citation],
                                     permit.                                          6/26/2018.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             74:36:21 Regional Haze Program
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
74:36:21:02.......................  Definitions..........    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                                                                Register citation],
                                                                                6/26/2018.

                                                                      * * * * * * *
74:36:21:04.......................  Visibility impact        9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     analysis.                                        Register citation],
                                                                                6/26/2018.
74:36:21:05.......................  BART determination...    9/13/2017    7/26/2018  [Insert Federal       .............................................
                                                                                Register citation],
                                                                                6/26/2018.

                                                                      * * * * * * *
74:36:21:09.......................  Monitoring,              9/13/2017    7/26/2018  [Insert Federal       .............................................
                                     recordkeeping, and                               Register citation],
                                     reporting.                                       6/26/2018.

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

* * * * *
[FR Doc. 2018-13598 Filed 6-25-18; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register: June 22, 2006 (Volume 71, Number 120)]
[Notices]
[Page 35964-35966]
[DOCID:fr22jn06-126]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54010; File No. SR-NASD-2006-076]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing of Proposed Rule Change by the National
Association of Securities Dealers, Inc. To Exempt All Securities
Included in the NASDAQ 100 Index From the Price Test Set Forth in NASD
Rule 3350(a)

June 16, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 15, 2006, the National Association of Securities Dealers, Inc.
(``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared substantially by Nasdaq.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    Nasdaq has submitted a proposed rule change to exempt all
securities included in the NASDAQ 100 Index from the price test set
forth in NASD Rule 3350(a). The text of the proposed rule change is
below. Proposed new language is underlined; proposed deletions are in
brackets.

3350 Short Sales
    (a)-(b) No Change.
    (c)(1)-(9) No Change.
    (10) Sales of securities included in the Nasdaq 100 Index.
    (d)-(k) No Change.
* * * * *

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

    In its filing with the Commission, Nasdaq 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. Nasdaq 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
    Nasdaq is proposing to amend Rule 3350(c) to create an exemption
from the short sale rule for securities included in the Nasdaq 100
Index.
    The NASDAQ 100 Index. First introduced in 1985, the NASDAQ-100
Index was created to track the performance of the largest non-financial
companies listed on The NASDAQ Stock Market. Nasdaq states that the
NASDAQ-100 Index Tracking Stock, also known as ``QQQ'', is the most
actively traded ETF and the most actively traded listed equity security
in the U.S. by average daily share trading volume. As of the end of the
fourth quarter of 2005, QQQ traded an average of 90.4 million shares
per day. Nasdaq notes that QQQ has grown significantly since its
inception: From $14.5 million in assets at the start to $20.3 billion
in assets as of December 31, 2005, and from 300,000 total shares
outstanding to 501.95 million at the end of the fourth quarter of 2005.
    In addition to the QQQ, Nasdaq states that nearly 150 licensees
have contracted with Nasdaq to use the NASDAQ-100 and other Nasdaq
indices as benchmarks for the issuing and trading of their global
financial products. These third-party underwritten products, such as
equity-linked notes, index warrants, certificates of deposits,
leveraged products and basket securities, were sold in 32 countries and
amounted to $157.05 billion in underlying notional value as of December
31, 2005.6 A total of 33 domestic and international mutual funds use
this barometer index as a benchmark as well.
    Nasdaq states that, as a result, the Nasdaq 100 stocks are highly
liquid. For the month of April 2006, the average daily volume for that
group of securities was over 880 million shares. The average daily
volume of an individual Nasdaq 100 security was over 8.8 million shares
and the mean daily trading value of those securities was over 3.4
million shares.
    The Regulation SHO Pilot. On June 23, 2004, Commission approved new
and amended short sale regulations in Regulation SHO under the
Securities Exchange Act of 1934 (the ``Act''). On July 28, 2004, the
Commission issued an order creating a one year Pilot (``Pilot'')
suspending the provisions of Rule 10a-1(a) under the Act and any short
sale price test of any exchange or national securities association for
short sales of certain securities. The Pilot was created pursuant to
Rule 202T of Regulation SHO, which established procedures to allow the
Commission to temporarily suspend short sale price tests so that the
Commission could study the effectiveness of short sale price tests. On
April 20, 2006, the Commission issued an order extending the
termination date of the Pilot to August 6, 2007, the date on which
temporary Rule 202T expires.
    The Pilot exempted a selected list of securities from short sale
price test restrictions of SEC Rule 10a-1 and the rules of self
regulatory organizations, including NASD Rule 3350. Nasdaq notes that,
of the roughly 1000 such securities, roughly 47 percent are listed

on Nasdaq and, of those, 24 currently are included in the Nasdaq 100
Index.
    Rationale for Proposed Exemption. Nasdaq states that, first, the
proposed exemption is consistent with the goals of short sale
regulation because the stocks included in the Nasdaq 100 Index are
highly liquid and not implicated by the objectives of the short sale
rule. Congressional and Commission objectives included allowing
relatively unrestricted short selling in an advancing market,
preventing short selling at successively lower prices; and preventing
short sellers from accelerating a declining market by exhausting all
remaining bids at one price level. Nasdaq states that, given the highly
liquid nature of securities listed in the Nasdaq 100 Index, the
proposed exemption poses no risk to investors.
    Nasdaq states that this conclusion is supported by the results of
the Reg SHO Pilot to date. Numerous academics have used the
implementation of Reg SHO as a natural experiment to study the affects
of price-test exemptions on various measures of market quality and
trading behavior. Nasdaq states that a recurring finding among these
studies is that there is no indication that the pilot increased short-
sale volume or volatility, decreased returns, or sacrificed market
efficiency. Nasdaq believes that the results also show that bid-test
rules had little-to-no affect on market quality or trading behavior for
Nasdaq pilot stocks. Nasdaq states that this finding is consistent with
the ability of short-sellers to circumvent Nasdaq's bid-test rule by
routing orders to markets without short-sale restrictions.
    Given the highly liquid nature of Nasdaq 100 securities and the
absence of a material impact from the removal of price-based short sale
restrictions on 24 of those securities, Nasdaq believes it would
benefit investors to exempt the remaining stocks in the Nasdaq 100
Index. As described above, the Nasdaq 100 Index serves as the basis for
billions of dollars of assets and trading in the basket of securities
that make up the index. Nasdaq believes that the disparity of
regulatory treatment between Nasdaq 100 securities that are included in
the Pilot and those that are not is inefficient and potentially harmful
to investors.
    Nasdaq believes that the proposed exemption will also remove the
disparity in short sale regulation that currently exists between
markets. As opposed to the NASD, which has voluntarily adopted a short
sale rule for Nasdaq securities, several exchanges that trade Nasdaq
securities do so with no short sale regulation, encouraging market
participants to route short sale orders to their markets to avoid any
regulatory restriction. As a result, the level of regulatory protection
an investor receives depends almost entirely on the market to which the
investor's order is routed. Nasdaq believes that this disparity harms
customers on all markets by forcing traders to choose between bypassing
limit orders posted on Nasdaq, delaying executing those orders, or
declining to execute. Nasdaq states that the proposed exemption is
designed to help to alleviate these issues.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\3\ in general, and with
Section 15A(b)(5) of the Act,\4\ in particular, in that it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, remove impediments to a free
and open market and a national market system, and, in general, to
protect investors and the public interest.
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    \3\ 15 U.S.C. 78o-3.
    \4\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.

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

    Written comments were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
    Nasdaq has requested that this proposal be approved on an
accelerated basis. Nasdaq asserts that, given the current disparity
between short sale regulation on Nasdaq and the lack of short sale
regulation on NYSE/Arca and the National Stock Exchange, there is no
basis to conclude that this proposal will generate legitimate
controversy. Nasdaq also states that these are highly active and liquid
securities that do not present any of the risks commonly understood as
the underpinning for short sale regulation.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-NASD-2006-076 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NASD-2006-076. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments,

all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549-1090. Copies of such filing also will be
available for inspection and copying at the principal office of the
NASD. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.

    All submissions should refer to File Number SR-NASD-2006-076 and
should be submitted on or before July 13, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-9852 Filed 6-21-06; 8:45 am]

BILLING CODE 8010-01-P