[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77328-77333]
[FR Doc No: 2020-26400]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90501; File No. SR-ISE-2020-39]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change to an Amendment to
Options 7, Section 4, Related to Complex Orders Fees and Rebates, and
Options 7, Section 9

November 24, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 13, 2020, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Options 7, Section 4, ``Complex
Order Fees and Rebates,'' and Options 7, Section 9, ``Legal &
Regulatory.''
    The Exchange originally filed the proposed pricing change on
November 2, 2020 (SR-ISE-2020-37). On November 12, 2020, the Exchange
withdrew that filing and is submitting this replacement filing on
November 13, 2020.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/ise/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Options 7, Section 4, ``Complex
Order Fees and Rebates,'' and Options 7, Section 9, ``Legal &
Regulatory.'' Each change will be described below.
Options 7, Section 4
Priority Customer Rebates for Complex Orders
    The Exchange's proposal to amend Options 7, Section 4, ``Complex
Order Fees and Rebates'' is intended to offer Members an ability to
earn higher Priority Customer Complex Order rebates. Specifically, the
Exchange proposes to amend Priority Customer Complex Order Tiers 8 and
9 and add a new Tier 10. Today, the Exchange pays rebates to Priority
Customers pursuant to the below tier schedule.

                                            Priority Customer Rebates
----------------------------------------------------------------------------------------------------------------
                                                   Total affiliated member or
                                                 affiliated entity complex order
                                                   volume (excluding crossing       Rebate for    Rebate for non-
 Priority customer complex tier (7) (13) (16)   orders and responses to crossing  select symbols  select symbols
                                                     orders) calculated as a            (1)           (1) (4)
                                                  percentage of customer total
                                                       consolidated volume
----------------------------------------------------------------------------------------------------------------
Tier 1........................................  0.000%-0.200%...................         ($0.25)         ($0.40)
Tier 2........................................  Above 0.200%-0.400%.............          (0.30)          (0.55)
Tier 3........................................  Above 0.400%-0.450%.............          (0.35)          (0.70)
Tier 4........................................  Above 0.450%-0.750%.............          (0.40)          (0.75)
Tier 5........................................  Above 0.750%-1.000%.............          (0.45)          (0.80)
Tier 6........................................  Above 1.000%-1.350%.............          (0.47)          (0.80)
Tier 7........................................  Above 1.350%-2.000%.............          (0.48)          (0.80)
Tier 8........................................  Above 2.000%-2.600%.............          (0.50)          (0.85)
Tier 9........................................  Above 2.600%....................          (0.52)          (0.85)
----------------------------------------------------------------------------------------------------------------

    First, the Exchange proposes to amend the criteria to qualify for
Tiers 8 and 9 and certain rebates as discussed below.
    Today, Tier 8 of the Complex Order Priority Customer Rebates
requires Members to submit above 2.000%-2.60% of Total Affiliated
Member or Affiliated Entity Complex Order Volume (Excluding Crossing
Orders and Responses to Crossing Orders) Calculated as a Percentage of
Customer Total Consolidated Volume in order to receive a $0.50 per
contract rebate for Select Symbols \3\ and an $0.85 per contract rebate
for Non-Select Symbols.\4\ The Exchange proposes to amend the
qualifications of Tier 8 to require Members to submit above 2.000%-
2.750% of Total Affiliated Member or Affiliated Entity Complex Order
Volume (Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume to
receive an increased $0.52 per contract rebate for Select Symbols and
continue to receive an $0.85 per contract rebate for Non-Select
Symbols. The Exchange is both amending the qualifications for Tier 8
and increasing the rebate for Select Symbols with this proposal. A
Member who qualified for Tier 8 in a prior month, with above 2.000% to
2.60% of Total Affiliated Member or Affiliated Entity Complex Order
Volume (Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume
(``Current Tier 8 Volume''), would continue to qualify for Tier 8
rebates with this proposal if that same amount of volume was submitted.
The Member would qualify for an increased Tier 8 Rebate for Select
Symbols of $0.52 per contract when submitting Current Tier 8 Volume and
the same $0.85 per contract Tier 8 Rebate for Non-Select Symbols.
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    \3\ ``Select Symbols'' are options overlying all symbols listed
on the Nasdaq ISE that are in the Penny Interval Program. See
Options 7, Section 1(b).
    \4\ ``Non-Select Symbols'' are options overlying all symbols
excluding Select Symbols. See Options 7, Section 1(b).
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    Today, Tier 9 of the Complex Order Priority Customer Rebates
requires Members to submit above 2.600% of Total Affiliated Member or
Affiliated Entity Complex Order Volume (Excluding Crossing Orders and
Responses to Crossing Orders) Calculated as a Percentage of Customer
Total Consolidated Volume in order to receive a $0.52 per contract
rebate for Select Symbols and an $0.85 per contract rebate for Non-
Select Symbols. The Exchange proposes to amend the qualifications of
Tier 9 to require Members to submit above 2.750%-4.500% of Total
Affiliated Member or Affiliated Entity Complex Order Volume (Excluding
Crossing Orders and Responses to Crossing Orders) Calculated as a
Percentage of Customer Total Consolidated Volume to continue to receive
a $0.52 per contract rebate for Select Symbols and an increased $0.86
per contract rebate for Non-Select Symbols. The Exchange is both
amending the qualifications for Tier 9 and increasing the rebate for
Non-Select Symbols with this proposal. A Member who qualified for Tier
9 in a prior month, with above 2.600% of Total Affiliated Member or
Affiliated Entity Complex Order Volume (Excluding Crossing Orders and
Responses to Crossing Orders) Calculated as a Percentage of Customer
Total Consolidated Volume (``Current Tier 9 Volume''), may continue to
qualify for Tier 9 rebates with this proposal if the Member submitted
greater than 2.750% volume Calculated as a Percentage of Customer Total
Consolidated Volume. A Member who submitted the same amount of volume
as in the prior month would receive either: (1) An increased Tier 8
Rebate for Select Symbols of $0.52 per contract and the same $0.85 per
contract Rebate for Non-Select Symbols; or (2) the same Tier 9 Rebate
for Select Symbols of $0.52 per contract and an increased $0.86 per
contract Rebate for Non-Select Symbols, depending on the Member's
volume Calculated as a Percentage of Customer Total Volume. Also, with
this proposal, a Member would have the opportunity to qualify for
increased Tier 10 rebates of $0.53 per contract for Select Symbols and
$0.88 per contract for Non-Select Symbols by submitting above 4.500% of
Total Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders) Calculated
as a Percentage of Customer Total Consolidated Volume.
    Second, the Exchange proposes to add a new Priority Customer
Complex Order Tier 10 which requires Members to submit above 4.500% of
Total Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders) Calculated
as a Percentage of Customer Total Consolidated Volume to receive a
$0.53 per contract rebate for Select Symbols and an $0.88 per contract
rebate for Non-Select Symbols. This new Tier 10 would offer Members an
opportunity to earn higher Priority Customer Complex Order rebates on
ISE.
    The Exchange believes that amending Priority Customer Complex Order
Rebate Tiers 8 and 9 and adding a new Tier 10 will attract a greater
amount of Priority Customer Complex Order volume to ISE.
Maker and Taker Fees for Complex Orders
    Today, the Exchange assesses certain Maker and Taker Fees for
Complex Orders transacted on ISE as follows:

                                                                  Maker and Taker Fees
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                                                                                Maker fee for
                                                                                Maker fee for    non-select
                                                                           Maker fee for  select symbols   symbols when                    Taker fee for
                   Market participant                      Maker fee for    non-select     when trading       trading      Taker fee for    non-select
                                                          select symbols      symbols         against         against     select symbols      symbols
                                                                                priority        priority
                                                                                customer        customer
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market Maker............................................           $0.10           $0.20       (3) $0.47           $0.86       (3) $0.50       (8) $0.86
Non-Nasdaq ISE Market Maker (FarMM).....................            0.20            0.20            0.48            0.88            0.50        (8) 0.88
Firm Proprietary/Broker-Dealer..........................            0.10            0.20            0.48            0.88            0.50        (8) 0.88
Professional Customer...................................            0.10            0.20            0.48            0.88            0.50        (8) 0.88
Priority Customer.......................................            0.00            0.00            0.00            0.00            0.00            0.00
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Current note 3 of Options 7, Section 4, which applies to orders for
Market Makers who qualify for the Complex Order Maker Fee for Select
Symbols when trading against Priority Customer Complex Orders and the
Complex Order Taker Fee for Select Symbols, states, ``This fee is $0.47
per contract for Market Makers that achieve Priority Customer Complex
Tier 8 and $0.44 per contract for Market Makers that achieve Priority
Customer Complex Tier 9.'' Current note 8 of Options 7, Section 4 which
applies to Complex Orders of Market Makers, Non-Nasdaq ISE Market
Makers (FarMM), Firm Proprietary/Broker-Dealers, and Professional
Customers who qualify for the Complex Order Taker Fee for Non-Select
Symbols, states, ``A $0.05 per contract surcharge will be assessed to
non-Priority Customer Complex Orders that take liquidity from the
Complex Order Book, excluding Complex Orders executed in the
Facilitation Mechanism, Solicited Order Mechanism, Price Improvement
Mechanism and ``exposure'' auctions pursuant to Options 3, Section
14(c)(3).''
    The Exchange proposes to increase the Complex Order Maker Fees for
Select Symbols when trading against Priority Customer for Market Makers
from $0.47 to $0.50 per contract. The Exchange also proposes to
increase the Complex Order Maker Fees for Select Symbols when trading
against Priority Customer for Non-Nasdaq ISE Market Makers (FarMM),
Firm Proprietary/Broker-Dealers, and Professional Customers from $0.48
to $0.50 per contract. Priority Customers would continue to pay no
Complex Order Maker Fees for Select Symbols when trading against
Priority Customer.
    In addition, the Exchange proposes to amend note 3 which is
applicable to the aforementioned Complex Order Maker and Taker Fees by
instead providing, ``This fee is $0.49 per contract for Market Makers
that achieve Priority Customer Complex Tier 8, $0.47 per contract for
Market Makers that achieve Priority Customer Complex Tier 9, and $0.44
per contract for Market Makers that achieve Priority Customer Complex
Tier 10.''
    While the Exchange is increasing the Complex Order Maker Fees for
Select Symbols when trading against Priority Customers, Market Makers,
Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker-Dealers,
and Professional Customers who qualify for Priority Customer Complex
Order Tiers 8 and 9 or new Tier 10, would continue to receive lower
Complex Order Maker Fees, which is intended to incentive these Members
to transact a greater amount of Priority Customer Complex Orders on
ISE.
Technical Amendments
    The Exchange proposes to remove reserved note 17 within Options 7,
Section 4 because this note is not necessary. The Exchange also
proposes to remove obsolete date references and an obsolete rate within
Options 7, Section 9.C. related to the Options Regulatory Fee. The
dates refer to past dates.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \7\
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    \7\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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    Likewise, in NetCoalition v. Securities and Exchange Commission \8\
(``NetCoalition'') the D.C. Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\9\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \10\
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    \8\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \9\ See NetCoalition, at 534-535.
    \10\ Id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \11\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes that these views apply with equal force to the options
markets.
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    \11\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
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Options 7, Section 4
Priority Customer Rebates for Complex Orders
    The Exchange's proposal to amend the qualifications of Tier 8, to
require Members to submit above 2.000%-2.750% of Total Affiliated
Member or Affiliated Entity Complex Order Volume (Excluding Crossing
Orders and Responses to Crossing Orders) Calculated as a Percentage of
Customer Total Consolidated Volume in order to receive an increase
$0.52 per contract rebate for Select Symbols and continue to receive an
$0.85 per contract rebate for Non-Select Symbols, and its proposal to
amend the qualifications of Tier 9, to require Members to submit above
2.750%-4.500% of Total Affiliated Member or Affiliated Entity Complex
Order Volume (Excluding Crossing Orders and Responses to Crossing
Orders) Calculated as a Percentage of Customer Total Consolidated
Volume to continue to receive a $0.52 per contract rebate for Select
Symbols and an increased $0.86 per contract rebate for Non-Select
Symbols, are reasonable. The Exchange believes amending Priority
Customer Complex Order Tiers 8 and 9 will attract a greater amount of
Priority Customer Complex Order volume to ISE. Specifically, Members
who desire to qualify for the increased $0.52 per contract rebate for
Select Symbols in Tier 8 or continue to qualify for an $0.85 per
contract rebate for Non-Select Symbols in Tier 8 or Members who desire
to continue to qualify for the $0.52 per contract rebate in Select
Symbols for Tier 9 or an increased $0.86 per contract rebate for Non-
Select Symbols in Tier 9 will be encouraged to submit the requisite
order flow to obtain the same or higher rebates. With respect to
Priority Customer Complex Order Tier 8, the Exchange notes that the

proposed amendment should not result in lower rebates for any Member
submitting the same Complex Order volume as the Member submitted in the
prior month. With respect to Priority Customer Complex Order Tier 9,
Members who qualified for Tier 8 in a prior month with Current Tier 8
Volume \12\ would continue to qualify for Tier 8 rebates with this
proposal if that same amount of volume was submitted and would receive
an increased Tier 8 Rebate for Select Symbols of $0.52 per contract and
the same $0.85 per contract Rebate for Non-Select Symbols. In addition,
the Member may earn increased Tier 9 \13\ or Tier 10 rebates if the
Member submitted additional qualifying volume. Therefore, the Member
would receive the same or higher Tier 8 rebates.
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    \12\ Today, Tier 8 of the Complex Order Priority Customer
Rebates pays rebates to Members who submit above 2.000%-2.60% of
Total Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume.
With this proposal, Members who submit above 2.000%-2.750% of Total
Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume are
entitled to rebates.
    \13\ The Exchange notes that the propose Tier 8 Rebate for
Select Symbols and the Tier 9 Rebate for Select Symbols, which
remains unchanged, are both $0.52 per contract.
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    Members who qualified for Tier 9 in a prior month with Current Tier
9 Volume may continue to qualify for Tier 9 rebates with this proposal
if the Member submitted greater than 2.750% volume and would receive
either: (1) An increased Tier 8 Rebate for Select Symbols of $0.52 per
contract and the same $0.85 per contract Rebate for Non-Select Symbols;
or (2) the same Tier 9 Rebate for Select Symbols of $0.52 per contract
and an increased $0.86 per contract Rebate for Non-Select Symbols,
depending on the Member's volume Calculated as a Percentage of Customer
Total Consolidated Volume. Despite the increase required in Complex
Order volume for Priority Customer Complex Order Tier 9, the Exchange's
proposal offers Members an opportunity to earn the same or higher Tier
9 rebates. Also, with this proposal, a Member would have the
opportunity to qualify for increased Tier 10 rebates of $0.53 per
contract for Select Symbols and $0.88 per contract for Non-Select
Symbols by submitting above 4.500% of Total Affiliated Member or
Affiliated Entity Complex Order Volume (Excluding Crossing Orders and
Responses to Crossing Orders) Calculated as a Percentage of Customer
Total Consolidated Volume. The Priority Customer Complex Order rebate
program is optional and available to all Members that choose to
transact Complex Order flow on ISE in order to earn a rebate on their
Priority Customer Complex Order volume. To the extent the program, as
modified, continues to attract Complex Order volume to the Exchange,
the Exchange believes that the proposed changes would improve the
Exchange's overall competitiveness and strengthen its market quality
for all market participants.
    The Exchange's proposal to add a new Priority Customer Complex
Order Tier 10, which requires Members to submit above 4.500% of Total
Affiliated Member or Affiliated Entity Complex Order Volume (Excluding
Crossing Orders and Responses to Crossing Orders) Calculated as a
Percentage of Customer Total Consolidated Volume in order to receive a
$0.53 per contract rebate for Select Symbols and an $0.88 per contract
rebate for Non-Select Symbols is reasonable. The Exchange believes
proposed new Tier 10 will attract a greater amount of Priority Customer
Complex Order volume to ISE as the Exchange proposes to pay $0.53 per
contract rebate for Select Symbols and $0.88 per contract rebate for
Non-Select Symbols, the highest Priority Customer Complex Order rebates
for that order flow.
    The Exchange's proposals to amend the tier qualifications for
Priority Customer Complex Order Tiers 8 and 9, increase the Select
Symbol rebate in Tier 8, increase the Non-Select Symbol rebate in Tier
9, and add a new Priority Customer Complex Order Tier 10 with rebates
of $0.53 per contract for Select Symbols and $0.88 per contract for
Non-Select Symbols are equitable and not unfairly discriminatory. Any
ISE Member may qualify for a Priority Customer Complex Order rebate
tier, provided the qualifications are met. By encouraging all Members
to transact significant amounts of Priority Customer Complex Order flow
(i.e., to qualify for the higher tiers) in order to earn a higher
rebate on their Priority Customer Complex Orders, the Exchange seeks to
provide more trading opportunities for all market participants, thereby
promoting price discovery, and improving the overall market quality of
the Exchange. ISE would uniformly pay rebates to Members that qualified
for Priority Customer Complex Order rebates. The Exchange anticipates
all Members that currently qualify for the Tier 8 or 9 Priority
Customer Complex Order rebates will receive the same or higher rebates
with this proposal. Also, any Member may qualify for the new Tier 10
Priority Customer Complex Order rebate to earn even higher rebates. To
the extent the proposed changes encourage additional Members to strive
for the modified tiers and thus attract more Priority Customer Complex
Order volume to the Exchange, this increased order flow would improve
the overall quality and attractiveness of the Exchange.
Maker and Taker Fees for Complex Orders
    The Exchange's proposal to increase the Complex Order Maker Fees
for Select Symbols when trading against Priority Customer for Market
Makers from $0.47 to $0.50 per contract and to increase the Complex
Order Maker Fees for Select Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/
Broker-Dealers, and Professional Customers from $0.48 to $0.50 per
contract is reasonable because while the Exchange is proposing to
increase these fees, the Exchange believes that market participants
will continue to be incentivized to send Priority Customer order flow
to ISE to obtain rebates offered by the Exchange. Additionally, Market
Makers would continue to be offered the opportunity to reduce their
Complex Order Maker Fees. If a Market Maker qualifies for Priority
Customer Complex Order Tiers 8 and 9, the Complex Order Maker Fee would
be reduced to $0.49 and $0.47 per contract, respectively. In addition,
a Market Maker that qualifies for Priority Customer Complex Order Tier
10 would reduce the Complex Order Maker Fees to $0.44 per contract.
Finally, Priority Customers will continue to pay no Maker Fees for
Select Symbols when trading against Priority Customer.
    The Exchange's proposal to increase the Complex Order Maker Fees
for Select Symbols when trading against Priority Customer for Market
Makers from $0.47 to $0.50 per contract and to increase the Complex
Order Maker Fees for Select Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/
Broker-Dealers, and Professional Customers from $0.48 to $0.50 per
contract is equitable and not unfairly discriminatory as all Non-
Priority Customers would be assessed the same Complex Order Maker Fees
for Select Symbols when trading against Priority Customer. Priority
Customer orders bring valuable liquidity to the market which liquidity
benefits other market participants. Priority Customers are not assessed
Complex Order Maker Fees for Select Symbols when trading against
Priority Customer.

    The Exchange's proposal to amend note 3 of Options 7, Section 4
with respect to Complex Order Maker Fees for Select Symbols when
trading against Priority Customer for Market Makers as well as Complex
Order Taker Fees for Select Symbols for Market Makers is reasonable
because while the Exchange is reducing the fee discount for Members who
qualify for Priority Customer Complex Order Tiers 8 and 9,\14\ Market
Makers will continue to have the opportunity to reduce their costs when
they qualify for Priority Customer Complex Order Tiers 8 and 9. The
Exchange will continue to offer Market Makers the opportunity to reduce
Complex Order Maker Fees for Select Symbols when trading against
Priority Customers, as well as Complex Order Taker Fees for Select
Symbols. The Exchange's proposal also offers Market Makers a fee
discount when trading against Priority Customer Complex Orders if the
qualifications for new Tier 10 are met.\15\
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    \14\ Today, the Exchange offers Market Makers the opportunity to
reduce the Complex Order Maker Fee for Select Symbols when trading
against Priority Customer and the Complex Order Taker Fee for Select
Symbols to $0.47 per contract for Tier 8 and $0.44 per contract for
Tier 9. With this proposal, the fee discount within note 3 would
decrease. The Exchange would offer Market Makers that qualify for
Priority Customer Complex Order Tier 8 a rate of $0.49 per contract,
and the Exchange would offer Market Makers that qualify for Priority
Customer Complex Order Tier 9 a rate of $0.47 per contract.
    \15\ The Exchange would offer Market Makers that qualify for
Priority Customer Complex Order Tier 10 a rate of $0.44 per
contract.
---------------------------------------------------------------------------

    The Exchange's proposal to amend note 3 of Options 7, Section 4
with respect to Complex Order Maker Fees for Select Symbols when
trading against Priority Customer for Market Makers as well as Complex
Order Taker Fees for Select Symbols for Market Makers is equitable and
not unfairly discriminatory. Market Makers would continue to be
permitted to lower their Maker Fees for Select Symbols when trading
against Priority Customers, as well as Taker Fees for Select Symbols,
provided the Market Maker qualified for Priority Customer Complex Order
Tiers 8, 9 or 10. Today, Market Makers are able to lower their Maker
Fees for Select Symbols when trading against Priority Customers, as
well as Taker Fees for Select Symbols, provided they qualify for
Priority Customer Complex Order Tiers 8 or 9. With this proposal Market
Makers would also be able to lower their Maker Fees for Select Symbols
when trading against Priority Customers, as well as Taker Fees for
Select Symbols, if they qualify for new Priority Customer Complex Order
Tier 10. Unlike other market participants, Market Makers have an
obligation to maintain quotes \16\ and provide liquidity in the regular
market. The Exchange is providing Market Makers the opportunity to
reduce their Maker Fees for Select Symbols when trading against
Priority Customers, as well as Taker Fees for Select Symbols, provided
the Market Maker qualified for Priority Customer Complex Order Tiers 8,
9 or 10, to incentivize these market participants to continue to
provide liquidity on ISE.
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    \16\ See ISE, Options 2, Section 5.
---------------------------------------------------------------------------

Technical Amendments
    The Exchange's proposal to remove reserved note 17 within Options
7, Section 4 is reasonable, equitable and not unfairly discriminatory
as this note is not necessary and the amendment is non-substantive. The
Exchange's proposal to remove obsolete date references and an obsolete
rate within Options 7, Section 9.C. related to the Options Regulatory
Fee is reasonable, equitable and not unfairly discriminatory as the
dates have passed and the rate is obsolete.

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.
Inter-Market Competition
    The proposal does not impose an undue burden on inter-market
competition. The Exchange believes its proposal remains competitive
with other options markets and will offer market participants with
another choice of where to transact options. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges that have been exempted from compliance with the statutory
standards applicable to exchanges. Because competitors are free to
modify their own fees in response, and because market participants may
readily adjust their order routing practices, the Exchange believes
that the degree to which fee changes in this market may impose any
burden on competition is extremely limited.
Intra-Market Competition
    The proposed amendments do not impose an undue burden on intra-
market competition.
Options 7, Section 4
Priority Customer Rebates for Complex Orders
    The Exchange's proposals to amend the tier qualifications for
Priority Customer Complex Order Tiers 8 and 9, increase the Select
Symbol rebate in Tier 8, increase the Non-Select Symbol rebate in Tier
9, and add a new Priority Customer Complex Order Tier 10 with rebates
of $0.53 per contract for Select Symbols and $0.88 per contract for
Non-Select Symbols does not impose an undue burden on competition. Any
ISE Member may qualify for a Priority Customer Complex Order rebate
tier, provided the qualifications are met. By encouraging all Members
to transact significant amounts of Priority Customer Complex Order flow
(i.e., to qualify for the higher tiers) in order to earn a higher
rebate on their Priority Customer Complex Orders, the Exchange seeks to
provide more trading opportunities for all market participants, thereby
promoting price discovery, and improving the overall market quality of
the Exchange. ISE would uniformly pay rebates to Members that qualified
for Priority Customer Complex Order rebates. The Exchange anticipates
all Members that currently qualify for the Tier 8 Priority Customer
Complex Order rebates will receive the same or higher Tier 8 rebates
with this proposal. Members that currently qualify for Tier 9 Priority
Customer Complex Order rebates may need to submit additional Priority
Customer Complex Order flow to continue to qualify for the same or
higher Tier 9 rebates. Also, any Member may qualify for the new Tier 10
Priority Customer Complex Order rebate to earn even higher rebates. To
the extent the proposed changes encourage additional Members to strive
for the modified tiers and thus attract more Priority Customer Complex
Order volume to the Exchange, this increased order flow would improve
the overall quality and attractiveness of the Exchange.
Maker and Taker Fees for Complex Orders
    The Exchange's proposal to increase the Complex Order Maker Fees
for Select Symbols when trading against Priority Customer for Market
Makers from $0.47 to $0.50 per contract and to increase the Complex
Order Maker Fees for Select Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market Makers (FarMM), Firm

Proprietary/Broker-Dealers, and Professional Customers from $0.48 to
$0.50 per contract does not impose an undue burden on competition as
all Non-Priority Customers would be assessed the same Complex Order
Maker Fees for Select Symbols when trading against Priority Customer.
Priority Customer orders bring valuable liquidity to the market which
liquidity benefits other market participants. Priority Customers are
not assessed Complex Order Maker Fees for Select Symbols when trading
against Priority Customer.
    The Exchange's proposal to amend note 3 of Options 7, Section 4
with respect to Complex Order Maker Fees for Select Symbols when
trading against Priority Customer for Market Makers as well as Complex
Order Taker Fees for Select Symbols for Market Makers does not impose
an undue burden on competition. Market Makers would continue to be
permitted to lower their Maker Fees for Select Symbols when trading
against Priority Customers, as well as Taker Fees for Select Symbols,
provided the Market Maker qualified for Priority Customer Complex Order
Tiers 8, 9 or 10. Today, Market Makers are able to lower their Maker
Fees for Select Symbols when trading against Priority Customers, as
well as Taker Fees for Select Symbols, provided they qualify for
Priority Customer Complex Order Tiers 8 or 9. With this proposal Market
Makers would also be able to lower their Maker Fees for Select Symbols
when trading against Priority Customers, as well as Taker Fees for
Select Symbols, if they qualify for new Priority Customer Complex Order
Tier 10. Unlike other market participants, Market Makers have an
obligation to maintain quotes \17\ and provide liquidity in the regular
market. The Exchange is providing Market Makers the opportunity to
reduce their Maker Fees for Select Symbols when trading against
Priority Customers, as well as Taker Fees for Select Symbols, provided
the Market Maker qualified for Priority Customer Complex Order Tiers 8,
9 or 10, to incentivize these market participants to continue to
provide liquidity on ISE.
---------------------------------------------------------------------------

    \17\ See ISE, Options 2, Section 5.
---------------------------------------------------------------------------

Technical Amendments
    The Exchange's proposal to remove reserved note 17 within Options
7, Section 4 does not impose an undue burden on competition as this
note is not necessary and the amendment is non-substantive. The
Exchange's proposal to remove obsolete date references and an obsolete
rate within Options 7, Section 9.C. related to the Options Regulatory
Fee does not impose an undue burden on competition.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \18\ and Rule 19b-4(f)(2) \19\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is: (i) Necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-ISE-2020-39 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE-2020-39. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-ISE-2020-39 and should be submitted on
or before December 22, 2020.

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

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

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-26400 Filed 11-30-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 198 (Wednesday, October 14, 2015)]
[Notices]
[Pages 61860-61863]
[FR Doc No: 2015-26028]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76099; File No. SR-NSCC-2015-004]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change to Require Real-
Time Trade Submission and to Prohibit Pre-Netting Practices through
NSCC's Correspondent Clearing Service

October 7, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given
that on September 30, 2015, National Securities Clearing Corporation
(``NSCC'') 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 NSCC. NSCC filed the
proposed rule change pursuant to Section 19(b)(2) \3\ of the Act. 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)(2).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change consists of amendments to NSCC's Rules &
Procedures (``Rules'') in order to require that trade data submitted to
NSCC through its Correspondent Clearing service, other than position
movements between NSCC Members that are Affiliates and Client Custody
Movements, as described further below, be submitted in real-time, and
to prohibit pre-netting and other practices that prevent real-time
trade submission.\4\
---------------------------------------------------------------------------

    \4\ Terms not defined herein are defined in the Rules, available
at http://dtcc.com/~/media/Files/Downloads/legal/rules/
nscc_rules.pdf.
---------------------------------------------------------------------------

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Purpose \5\
---------------------------------------------------------------------------

    \5\ Pursuant to a telephone call with NSCC's internal counsel on
October 1, 2015, staff in the Office of Clearance and Settlement
added the heading. NSCC inadvertently omitted the heading.
---------------------------------------------------------------------------

    Requiring trades to be submitted in real-time facilitates efficient
risk management for both NSCC and its Members, enables same-day
bookkeeping and reconciliation, and, therefore, significantly reduces
risk to the industry. Receipt of trade data on a real-time basis
permits NSCC's risk management processes to monitor trades closer to
trade execution on an intra-day basis, and to identify and risk manage
any issues relating to exposures earlier in the day. Contract
information is currently reported out to submitting firms by NSCC's
Universal Trade Capture (``UTC'') system upon trade comparison and
validation, and receipt of trade data in real-time enables NSCC

to report to Members trade data as it is received, thereby promoting
intra-day reconciliation of transactions at the Member level. The
majority of trades submitted to NSCC for clearing are currently being
submitted in real-time on a trade-by-trade basis, and NSCC is
operationally capable of managing trade volumes that are multiple times
larger than the historical peak volumes.
    NSCC is proposing to require that trade data submitted through its
Correspondent Clearing service, as described below, be submitted in
real-time and to prohibit pre-netting and other practices that prevent
real-time trade submission (``pre-netting practices''). NSCC would
exclude from this requirement position movements between NSCC Members
that are Affiliates and Client Custody Movements, as described below.
The term ``real-time,'' when used with respect to trade submission, is
defined in Procedure XIII (Definitions) of the Rules as the submission
of trade data on a trade-by-trade basis promptly after trade execution,
in any format and by any communication method acceptable to NSCC.
    NSCC's UTC system receives and validates transactions that are
submitted to it, reports trade details back out to the submitting firm,
and prepares those transactions for netting and settlement by routing
transactions to netting and settlement systems, such as Continuous Net
Settlement Accounting Operation, the Balance Order Accounting
Operation, or the Foreign Security Accounting Operation, as applicable.
Transactions are submitted to UTC either on a locked-in basis by self-
regulatory organizations (including national and regional exchanges and
marketplaces) (``SROs'') and Qualified Special Representatives
(``QSRs''),\6\ or are submitted to UTC as a part of NSCC's
Correspondent Clearing service, which allows for post-execution
position movements between two clearing firms. Currently all
transactions submitted to NSCC on a locked-in basis by SROs and QSRs,
which constitute approximately 95% of all transactions processed at
NSCC,\7\ are required to be submitted in real-time and may not be pre-
netted or batched prior to submission.\8\
---------------------------------------------------------------------------

    \6\ QSRs are defined in Section 3 of Rule 7 as NSCC Members that
have applied to NSCC to be a Special Representative, and either (i)
operate an automated execution system where they are always the
contra side of every trade, (ii) are the parent or affiliate of an
entity operating such an automated system, where they are the contra
side of every trade, or (iii) clear for a broker/dealer that
operates such a system and the subscribers to the system acknowledge
the clearing Member's role in the clearance and settlement of these
trades. Rules, supra note 4.
    \7\ Based on data from the second quarter of 2015, which show an
approximate daily average of 41 million transactions processed at
NSCC, with an approximate total daily value of an average of $455
billion; and an approximate average of 1.1 million submissions
through Correspondent Clearing, with an approximate total daily
value of an average of $57 billion. The average daily volume of
submissions through Correspondent Clearing is less than 5% of NSCC's
overall daily volume.
    \8\ Securities Exchange Act Release No. 69890 (June 28, 2013),
78 FR 40538 (July 5, 2013) (File No. SR-NSCC-2013-05). See also Rule
7 (Comparison and Trade Recording Operation), Procedure II (Trade
Comparison and Recording Service), and Procedure IV (Special
Representative Service), supra note 4.
---------------------------------------------------------------------------

    NSCC's Correspondent Clearing service is designed to provide an
automated method by which a Member, acting as a Special Representative,
may move a position that has been submitted to NSCC for clearing to the
account of another Member (the submitting Member's correspondent) on
whose behalf the original trade was executed.\9\ Members participating
in the Correspondent Clearing service for post-execution position
movements and those participating as a QSR for submission of original,
locked-in trades are required to apply for status as a Special
Representative or as a QSR, and to establish relationships with other
NSCC Members that will be designated as their correspondents.\10\ While
NSCC encourages Special Representatives to submit Correspondent
Clearing submissions to NSCC as soon as possible following execution,
currently these position movements may be sent to NSCC either in real-
time, intraday, or at the end of the day.
---------------------------------------------------------------------------

    \9\ The term ``original trade'' is used within the Rules
describing the Correspondent Clearing service solely to distinguish
between trades executed in the marketplace by the Special
Representative, and transactions booked for accounting purposes to
accommodate the movement of positions between Members as provided
for in Section C of Procedure IV. Original trades may not be
submitted through NSCC's Correspondent Clearing service. Rules,
supra note 4.
    \10\ Pursuant to a telephone call with NSCC's internal counsel
on October 5, 2015, staff in the Office of Clearance and Settlement
corrected an incorrect statement that Members utilizing the services
of a QSR are required to apply for status as a Special
Representative or as a QSR. NSCC intended to state that Members
participating as a QSR are required to apply for status as a Special
Representative or as a QSR.
---------------------------------------------------------------------------

    NSCC has continued to engage widely with its Members about the
benefits of expanding the requirements to submit transactions in real-
time and, as a result of these continuing discussions, is now proposing
to modify its Rules to require that trade data submitted through its
Correspondent Clearing service also be submitted in real-time. The
proposed rule change would also prohibit pre-netting practices that
prevent real-time trade submission through Correspondent Clearing.
    NSCC's Rules currently prohibit pre-netting practices that preclude
real-time submission with respect to submissions by QSRs and SROs. Pre-
netting practices that are currently prohibited include
``summarization'' (a technique in which the clearing broker nets all
trades in a single CUSIP by the same correspondent broker into fewer
submitted trades), ``compression'' (a technique to combine submissions
of data for multiple trades to the point where the identity of the
party actually responsible for the trades is masked), netting, or any
other practice that combines two or more trades prior to their
submission to NSCC.
    NSCC is proposing to extend the prohibition against pre-netting
practices to submissions through Correspondent Clearing because pre-
netting practices prevent the submission to NSCC of transactions on a
trade-by-trade basis, and cause Special Representatives to delay
submission of their trades, thereby undermining the risk mitigation
benefits of real-time trade submission. Pre-netting practices disrupt
NSCC's ability to accurately monitor market and credit risks as they
evolve during the trading day.
    NSCC would exclude from the requirements of this proposal any
position movements between Members that are Affiliates, as identified
within NSCC's membership management records. As defined in Rule 4A,
``Affiliate'' means a person that controls or is controlled by or is
under common control with another person.\11\ Position movements
between Affiliates do not introduce the risk management concerns that
are mitigated by real-time trade submission. As such, Members would not
be required to submit these position movements in real-time, but would
continue to be encouraged to do so. Positions movements between
Affiliates represent fewer than 5% of trade data submitted through
Correspondent Clearing to NSCC.\12\
---------------------------------------------------------------------------

    \11\ Control of a person means the direct or indirect ownership
or power to vote more than 50% of any class of the voting securities
or other voting interests of any person. Rule 4A, supra note 4.
    \12\ Based on data from the second quarter of 2015, which show
an approximate daily average of 1.1 million submissions through
Correspondent Clearing at NSCC, with an approximate total daily
value of an average of $57 billion; and an approximate average of
52,000 position movements through Correspondent Clearing between
Affiliates, with an approximate total daily value of an average of
$13 billion. The average daily volume of position movements through
Correspondent Clearing between Affiliates is less than 1% of NSCC's
overall daily volume.
---------------------------------------------------------------------------

    In order to submit trade data through Correspondent Clearing
outside of the

real-time trade submission requirements, Special Representatives would
need to identify a transaction as an Affiliate position movement. NSCC
would validate the Affiliates' relationship between the counterparties
by a check against the information within NSCC's membership management
records as of the time of the trade submission. Members continue to be
required to provide NSCC with current information regarding their
corporate ownership structure. If an Affiliate relationship is not
reflected on NSCC's records at the time of the trade submission, the
transaction will be rejected.
    NSCC would also exclude from the requirements of this proposal
position movements that occur between two unaffiliated clearing
brokers, typically at the end of the day, on behalf of a common
customer for custody purposes (``Client Custody Movements''). These
movements, which today represent approximately 1% of submissions
through Correspondent Clearing, would be exempt from the requirement
because they necessarily take place at the end of the day, after the
common client has reviewed its end of day positions and has instructed
the clearing brokers as to which positions it will move for custody
purposes.
    NSCC proposes to amend Rule 7 (Comparison and Trade Recording
Operation), Procedure II (Trade Comparison and Recording Service), and
Procedure IV (Special Representative Service) to require that trades
submitted by Special Representatives for trade recording through NSCC's
Correspondent Clearing service be submitted on a real-time basis and to
make clear that trade data submitted to NSCC through Correspondent
Clearing service must be submitted on a trade-by-trade basis, in the
original form executed, and that pre-netting practices are prohibited.
The proposed rule change would also make clear that these requirements
would not apply to position movements between NSCC Members that are
Affiliates or to Client Custody Movements.

Implementation Timeframe

    Pending Commission approval of this proposed rule change, Members
would be advised of the implementation date through issuance of an NSCC
Important Notice. The proposed rule change would not be implemented
earlier than ten business days from the date of Commission approval.
2. Statutory Basis
    NSCC believes that this proposal is consistent with Section
17A(b)(3)(F) of the Act, which requires that NSCC's Rules be designed
to promote the prompt and accurate clearance and settlement of
securities transactions and, in general, to protect investors and the
public interest.\13\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78q-1(b)(3)(F). Pursuant to a telephone call with
NSCC's internal counsel on October 1, 2015, staff in the Office of
Clearance and Settlement corrected an incorrect reference to 5
U.S.C. 78q-1(b)(3)(F). NSCC intended to refer to 15 U.S.C. 78q-
1(b)(3)(F).
---------------------------------------------------------------------------

    The proposal would enable NSCC to monitor trades closer to trade
execution on an intra-day basis and identify and risk manage any issues
relating to exposures earlier in the day. Further, receipt of trade
data in real-time would enable NSCC to report to Members trade data as
it is received, promoting intra-day reconciliation of transactions at
the Member level. Therefore, the proposed rule change would promote the
prompt and accurate clearance and settlement of securities transactions
by reducing operational, market, and credit risks faced by NSCC and its
Members, consistent with the requirements of the Act, in particular
Section 17A(b)(3)(F), as cited above.

(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change would have any
impact on competition because the proposed requirements would apply an
existing requirement equally to all Members that submit transactions to
NSCC through its Correspondent Clearing service.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received from Members, Participants, or Others

    NSCC has not received any written comments relating to this
proposal. NSCC will notify the Commission of any written comments
received by NSCC.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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-NSCC-2015-004 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 Number SR-NSCC-2015-004. 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 NSCC and on
DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2015-004 and should be
submitted on or before November 4, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26028 Filed 10-13-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: June 27, 2008 (Volume 73, Number 125)]
[Notices]
[Page 36533-36534]
[DOCID:fr27jn08-61]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-N-0172]

Agency Information Collection Activities; Submission for Office
of Management and Budget Review; Comment Request; New Animal Drugs for
Investigational Use

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice.

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

SUMMARY:  The Food and Drug Administration (FDA) is announcing that a
proposed collection of information has been submitted to the Office of
Management and Budget (OMB) for review and clearance under the
Paperwork Reduction Act of 1995.

DATES: Fax written comments on the collection of information by July
28, 2008.

ADDRESSES:  To ensure that comments on the information collection are
received, OMB recommends that written comments be faxed to the Office
of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer,
FAX:<PHONE_NUMBER>, or e-mailed to<EMAIL_ADDRESS>All comments
should be identified with the OMB control number 0910-0117. Also
include the FDA docket number found in brackets in the heading of this
document.

FOR FURTHER INFORMATION CONTACT:  Denver Presley, Jr., Office of the
Chief Information Officer (HFA-250), Food and Drug Administration, 5600
Fishers Lane, Rockville, MD 20857,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In compliance with 44 U.S.C. 3507, FDA has
submitted the following proposed collection of information to OMB for
review and clearance.

New Animal Drugs for Investigational Use (OMB Control Number 0910-
0117)--Extension

    FDA has authority under the Federal Food, Drug, and Cosmetic Act
(the act) to approve new animal drugs. Section 512(j) of the act (21
U.S.C.360b(j)), authorized FDA to issue regulations for the
investigational use of new animal drugs. The regulations which set
forth conditions for investigational use of new animal drugs are
codified under part 511 (21 CFR part 511). If a new animal drug is only
for tests in vitro, or testing in laboratory research animals, the
person distributing the new animal drug must maintain records showing:
(1) The name and post office address of the expert or expert
organization to whom the drug is shipped; and (2) the date, quantity,
batch or code mark for each shipment for a period of 2 years after such
shipment or delivery. Prior to shipping a new animal drug for clinical
investigations in animals, a sponsor must submit to FDA a Notice of
Claimed Investigational Exemption (NCIE). The NCIE must contain, among
other things, the following specific information: (1) The identity of
the new animal drug, (2) labeling, (3) a statement of compliance of any
non-clinical laboratory studies with good laboratory practices, (4) the
name and address of each clinical investigator, (5) the approximate
number of animals to be treated or amount of new animal drug(s) to be
shipped, and (6) information regarding the use of edible tissues from
investigational animals. Part 511 also requires that records be
established and maintained to document the distribution and use of the
investigational drug to assure that its use is safe and that the
distribution is controlled to prevent potential abuse. The agency uses
these required records under its Bio-Research Monitoring Program to
monitor the validity of the studies submitted to FDA to support new
animal drug approval and to assure that proper use of the drug is
maintained by the investigator.
    Investigational new animal drugs are used primarily by the
pharmaceutical industry, academic institutions, and the government.
Investigators may include individuals from these entities as well as
research firms and members of the medical professional. Respondents to
this collection of information are investigators who use new animal
drugs for investigational purposes.
    In the Federal Register of April 8, 2008 (73 FR 19073), FDA
published a 60-day notice requesting public comment on the information
collection provisions. No comments were received.

                                 Table 1.--Estimated Annual Reporting Burden\1\
----------------------------------------------------------------------------------------------------------------
                      No. of         Annual Frequency       Total Annual        Hours per
21 CFR Section     Respondents         per Response          Responses           Response         Total Hours
----------------------------------------------------------------------------------------------------------------
511.1(b)(4)                   134                  7.66               1027                  8              8,216
----------------------------------------------------------------------------------------------------------------
511.1(b)(5)                   134                   .19                 25                140              3,500
----------------------------------------------------------------------------------------------------------------
511.1(b)(6)                   134                   .01                  2                  1                  2
----------------------------------------------------------------------------------------------------------------
511.1(b)(8)                   134                   .11                 15                 20                300
 (ii)
----------------------------------------------------------------------------------------------------------------
511.1(b)(9)                   134                  6.7                  20                  8                160
----------------------------------------------------------------------------------------------------------------
Total                                                                                12,178
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

                               Table 2.--Estimated Annual Recordkeeping Burden\1\
----------------------------------------------------------------------------------------------------------------
                      No. of         Annual Frequency       Total Annual        Hours per
21 CFR Section    Recordkeepers      per Recordkeeping        Records          Recordkeeper       Total Hours
----------------------------------------------------------------------------------------------------------------
511.1(a)(3)                   134                  2.96                400                9                3,600
----------------------------------------------------------------------------------------------------------------
511.1(b)(3)                   134                  7.66              1,027                1                1,027
----------------------------------------------------------------------------------------------------------------

511.1(b)(7)(ii                134                  7.46              1,000                3.5              3,500
 )
----------------------------------------------------------------------------------------------------------------
511.1(b)(8)(i)                134                  7.46              1,000                3.5              3,500
----------------------------------------------------------------------------------------------------------------
Total                                                                                11,627
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

    The burden estimates for reporting requirements, record
preparation, and maintenance for this collection of information are
based on agency communication with industry. Based on the number of
sponsors subject to animal drug user fees, FDA estimates that there are
134 respondents. We use this estimate consistently throughout the table
and calculated the ``annual frequency per respondent'' by dividing the
total annual responses by number of respondents. Additional information
needed to make final calculations of the total burden hours i.e., the
number of respondents, the number of record keepers, the number of
NCIEs received, etc., was derived from agency records.

    Dated: June 23, 2008.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E8-14653 Filed 6-26-08; 8:45 am]

BILLING CODE 4160-01-S


[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Notices]
[Page 57432]
[FR Doc No: 2015-24055]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2015-0095]

Petition for Waiver of Compliance

    In accordance with part 211 of Title 49 Code of Federal Regulations
(CFR), this document provides the public notice that by a document
dated August 25, 2015, the Illinois Central Railroad Company; Wisconsin
Central Ltd.; Grand Trunk Western Railroad Company; Chicago, Central
and Pacific Railroad Company; Cedar River Railroad Company; Sault Ste.
Marie Bridge Company; Bessemer and Lake Erie Railroad Company; and
Pittsburgh and Conneaut Dock Company (collectively, ``CN'') have
petitioned the Federal Railroad Administration (FRA) for a waiver from
certain provisions of 49 CFR 240.111 regarding motor vehicle operation
safety conduct data required for the initial certification and
recertification of locomotive engineers. The request was assigned
Docket Number FRA-2015-0095.
    The waiver requested would permit CN to initially certify or
recertify locomotive engineers for a period of 60 days, and would
conform to current provisions under 49 CFR 242.111(c) and (d) for the
initial certification and recertification of conductors. CN believes
there is no railroad safety basis that exists for not extending this
same provision to locomotive engineer certification.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov and in person at the U.S. Department of
Transportation's (DOT) Docket Operations Facility, 1200 New Jersey
Avenue SE., W12-140, Washington, DC 20590. The Docket Operations
Facility is open from 9 a.m. to 5 p.m., Monday through Friday, except
Federal Holidays. Interested parties are invited to participate in
these proceedings by submitting written views, data, or comments. FRA
does not anticipate scheduling a public hearing in connection with
these proceedings since the facts do not appear to warrant a hearing.
If any interested party desires an opportunity for oral comment, they
should notify FRA, in writing, before the end of the comment period and
specify the basis for their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
    Communications received within November 9, 2015 of the date of this
notice will be considered by FRA before final action is taken. Comments
received after that date will be considered as far as practicable.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the comment (or signing the document,
if submitted on behalf of an association, business, labor union, etc.).
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its processes. DOT posts these comments,
without edit, including any personal information the commenter
provides, to www.regulations.gov, as described in the system of records
notice (DOT/ALL-14 FDMS), which can be reviewed at www.dot.gov/privacy.
See also http://www.regulations.gov/#!privacyNotice for the privacy
notice of regulations.gov.

    Issued in Washington, DC, on September 16, 2015.
Ron Hynes,
Director, Office of Technical Oversight.
[FR Doc. 2015-24055 Filed 9-22-15; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 76, Number 125 (Wednesday, June 29, 2011)]
[Notices]
[Pages 38194-38195]
[FR Doc No: 2011-16393]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-1968-DR; Docket ID FEMA-2011-0001]

California; Amendment No. 1 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of California (FEMA-1968-DR), dated April 18, 2011, and
related determinations.

DATES: Effective Date: June 20, 2011.

FOR FURTHER INFORMATION CONTACT: Peggy Miller, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street, SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of California is hereby amended to include the following
area among those areas determined to have been adversely affected by
the event declared a major disaster by the President in his declaration
of April 18, 2011.

    Monterey County for Public Assistance.
    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036,

Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.

    Dated: June 23, 2011.
W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2011-16393 Filed 6-28-11; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 87, Number 55 (Tuesday, March 22, 2022)]
[Notices]
[Pages 16176-16178]
[FR Doc No: 2022-06016]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP22-90-000]

National Fuel Gas Distribution Corporation; Notice of Application
and Establishing Intervention Deadline

    Take notice that on March 10, 2022, National Fuel Gas Distribution
Corporation (National Fuel Distribution), 6363 Main Street
Williamsville, NY 14221-5887 filed in the above referenced docket an
application pursuant to section 7(f) of the Natural Gas Act and Part
157 of the Commission's regulations requesting that the jurisdictional
natural gas distribution facilities within its distribution service
area locations may, without further Commission authorization, be
enlarged or expanded.
    National Fuel Distribution filed a request for the Commission's
authorization to have its service area determination under Section 7(f)
of the NGA amended and enlarged to allow it to operate a minimal amount
of

residential service piping across Erie County, Pennsylvania to
Chautauqua County, New York border in order to distribute and deliver
natural gas to a small number of Pennsylvania retail customers whose
residences lie in close proximity to the Pennsylvania/New York border.
National Fuel Distribution also requests a finding that qualifies for
treatment as an LDC for purposes of Section 311 of the Natural Gas
Policy Act and a waiver of various Commission requirements as
appropriate and consistent with the requested determination.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://ferc.gov) using the
``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at [email protected] or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.
    Any questions concerning this application should be directed to
Jeffrey B. Same, Esq. Senior Attorney, National Fuel Gas Distribution
Corporation, 6363 Main Street Williamsville, NY 14221-5887; by phone
(716) 857-7507; or by email: [email protected].
    Pursuant to Section 157.9 of the Commission's Rules of Practice and
Procedure,\1\ within 90 days of this Notice the Commission staff will
either: Complete its environmental review and place it into the
Commission's public record (eLibrary) for this proceeding; or issue a
Notice of Schedule for Environmental Review. If a Notice of Schedule
for Environmental Review is issued, it will indicate, among other
milestones, the anticipated date for the Commission staff's issuance of
the final environmental impact statement (FEIS) or environmental
assessment (EA) for this proposal. The filing of an EA in the
Commission's public record for this proceeding or the issuance of a
Notice of Schedule for Environmental Review will serve to notify
federal and state agencies of the timing for the completion of all
necessary reviews, and the subsequent need to complete all federal
authorizations within 90 days of the date of issuance of the Commission
staff's FEIS or EA.
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    \1\ 18 CFR (Code of Federal Regulations) 157.9.
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Public Participation

    There are three ways to become involved in the Commission's review
of this project: You can file a protest to the project, you can file a
motion to intervene in the proceeding, and you can file comments on the
project. There is no fee or cost for filing protests, motions to
intervene, or comments. The deadline for filing protests, motions to
intervene, and comments is 5:00 p.m. Eastern Time on April 5, 2022. How
to file protests, motions to intervene, and comments is explained
below.

Protests

    Pursuant to section 157.205 of the Commission's regulations under
the NGA,\2\ any person \3\ or the Commission's staff may file a protest
to the request. If no protest is filed within the time allowed or if a
protest is filed and then withdrawn within 30 days after the allowed
time for filing a protest, the proposed activity shall be deemed to be
authorized effective the day after the time allowed for protest. If a
protest is filed and not withdrawn within 30 days after the time
allowed for filing a protest, the instant request for authorization
will be considered by the Commission.
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    \2\ 18 CFR 157.205.
    \3\ Persons include individuals, organizations, businesses,
municipalities, and other entities. 18 CFR 385.102(d).
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    Protests must comply with the requirements specified in section
157.205(e) of the Commission's regulations,\4\ and must be submitted by
the protest deadline, which is April 5, 2022. A protest may also serve
as a motion to intervene so long as the protestor states it also seeks
to be an intervenor.
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    \4\ 18 CFR 157.205(e).
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Interventions

    Any person has the option to file a motion to intervene in this
proceeding. Only intervenors have the right to request rehearing of
Commission orders issued in this proceeding and to subsequently
challenge the Commission's orders in the U.S. Circuit Courts of Appeal.
    To intervene, you must submit a motion to intervene to the
Commission in accordance with Rule 214 of the Commission's Rules of
Practice and Procedure \5\ and the regulations under the NGA \6\ by the
intervention deadline for the project, which April 5, 2022. As
described further in Rule 214, your motion to intervene must state, to
the extent known, your position regarding the proceeding, as well as
your interest in the proceeding. For an individual, this could include
your status as a landowner, ratepayer, resident of an impacted
community, or recreationist. You do not need to have property directly
impacted by the project in order to intervene. For more information
about motions to intervene, refer to the FERC website at https://www.ferc.gov/resources/guides/how-to/intervene.asp.
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    \5\ 18 CFR 385.214.
    \6\ 18 CFR 157.10.
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    All timely, unopposed motions to intervene are automatically
granted by operation of Rule 214(c)(1). Motions to intervene that are
filed after the intervention deadline are untimely and may be denied.
Any late-filed motion to intervene must show good cause for being late
and must explain why the time limitation should be waived and provide
justification by reference to factors set forth in Rule 214(d) of the
Commission's Rules and Regulations. A person obtaining party status
will be placed on the service list maintained by the Secretary of the
Commission and will receive copies (paper or electronic) of all
documents filed by the applicant and by all other parties.

Comments

    Any person wishing to comment on the project may do so. The
Commission considers all comments received about the project in
determining the appropriate action to be taken. To ensure that your
comments are timely and properly recorded, please submit your comments
on or before April 5, 2022. The filing of a comment alone will not
serve to make the filer a party to the proceeding to become a party,
you must intervene in the proceeding.

How to File Protests, Interventions, and Comments

    There are two ways to submit protests, motions to intervene, and
comments. In both instances, please reference the Project docket number
CP22-90-000 in your submission.
    (1) You may file your protest, motion to intervene, and comments by
using the Commission's eFiling feature, which is located on the
Commission's website (www.ferc.gov) under the link to Documents and
Filings. New eFiling users must first create an account by clicking on
``eRegister.'' You will be asked to select the type of filing you are
making; first select General'' and then

select ``Protest'', ``Intervention'', or ``Comment on a Filing''; or
\7\
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    \7\ Additionally, you may file your comments electronically by
using the eComment feature, which is located on the Commission's
website at www.ferc.gov under the link to Documents and Filings.
Using eComment is an easy method for interested persons to submit
brief, text-only comments on a project.
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    (2) You can file a paper copy of your submission by mailing it to
the address below. Your submission must reference the Project docket
number CP22-90-000.
    To mail via USPS, use the following address:

Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426

    To mail via any other courier, use the following address:

Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission,
12225 Wilkins Avenue, Rockville, Maryland 20852

    The Commission encourages electronic filing of submissions (option
1 above) and has eFiling staff available to assist you at (202) 502-
8258 or [email protected]
    Protests and motions to intervene must be served on the applicant
either by mail or email (with a link to the document) at: Jeffrey B.
Same, Esq. Senior Attorney National Fuel Gas Distribution Corporation,
6363 Main Street Williamsville, NY 14221-5887; by phone<PHONE_NUMBER>;
or by email: [email protected].
    Any subsequent submissions by an intervenor must be served on the
applicant and all other parties to the proceeding. Contact information
for parties can be downloaded from the service list at the eService
link on FERC Online.

Tracking the Proceeding

    Throughout the proceeding, additional information about the project
will be available from the Commission's Office of External Affairs, at
(866) 208-FERC, or on the FERC website at https://www.ferc.gov using
the ``eLibrary'' link as described above. The eLibrary link also
provides access to the texts of all formal documents issued by the
Commission, such as orders, notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. For more information and to register, go to
www.ferc.gov/docs-filing/esubscription.asp.

    Dated: March 16, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-06016 Filed 3-21-22; 8:45 am]
BILLING CODE 6717-01-P