[Federal Register Volume 81, Number 45 (Tuesday, March 8, 2016)]
[Rules and Regulations]
[Pages 12004-12006]
[FR Doc No: 2016-05104]

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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 160106014-6014-01]
RIN 0694-AG82

Additions to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This rule amends the Export Administration Regulations (EAR)
by adding four entities to the Entity List. The U.S. Government has
determined that the four entities are acting contrary to the national
security or foreign policy interests of the United States. The four
entities will be listed on the Entity List under the destinations of
People's Republic of China (China) and Iran.

DATES: This rule is effective March 8, 2016.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary, Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone:<PHONE_NUMBER>,
Fax:<PHONE_NUMBER>, Email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    The Entity List (Supplement No. 4 to Part 744) identifies entities
and other persons reasonably believed to be involved, or to pose a
significant risk of being or becoming involved, in activities contrary
to the national security or foreign policy interests of the United
States. The EAR imposes additional licensing requirements on, and
limits the availability of most license exceptions for, exports,
reexports, and transfers (in-country) to those listed. The ``license
review policy'' for each listed entity or other person is identified in
the License Review Policy column on the Entity List and the impact on
the availability of license exceptions is described in the Federal
Register notice adding entities or other persons to the Entity List.
BIS places entities and other persons on the Entity List pursuant to
sections of part 744 (Control Policy: End-User and End-Use Based) and
part 746 (Embargoes and Other Special Controls) of the EAR.
    The ERC, composed of representatives of the Departments of Commerce
(Chair), State, Defense, Energy, and, where appropriate, the Treasury,
determines all additions to, removals from, and other modifications to
the Entity List. The ERC makes decisions to add an entry to the Entity
List by majority vote and decisions to remove or modify an entry by
unanimous vote.

ERC Entity List Decisions

Additions to the Entity List

    This rule implements the decision of the ERC to add four entities--
three in China and one in Iran--to the Entity List under the authority
of Sec.  744.11 (License requirements that apply to entities acting
contrary to the national security or foreign policy interests of the
United States) of the EAR.
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity
List) in making the determination to list these four entities. Under
that paragraph, entities and other persons for which there is
reasonable cause to believe, based on specific and articulable facts,
have been involved, are involved, or pose a significant risk of being
or becoming involved in, activities that are contrary to the national
security or foreign policy interests of the United States, and those
acting on behalf of such persons, may be added to the Entity List.
Paragraphs (b)(1) through (5) of Sec.  744.11 set out an illustrative
list of activities that could be contrary to the national security or
foreign policy interests of the United States.
    Pursuant to Sec.  744.11 of the EAR, the ERC determined that
Zhongxing Telecommunications Equipment Corporation (``ZTE
Corporation''), located at ZTE Plaza, Keji Road South, Hi-Tech
Industrial Park, Nenshan District, Shenzhen, China, be added to the
Entity List under the destination of China for actions contrary to the
national security and foreign policy interests of the United States.
Specifically, the ZTE Corporation document ``Report Regarding
Comprehensive Reorganization and Standardization of the Company Export
Control Related Matters'' (available at http://www.bis.doc.gov)
indicates that ZTE Corporation has reexported controlled items to
sanctioned countries contrary to United States law. The ZTE Corporation
document ``Proposal for Import and Export Control Risk Avoidance''
(available at http://www.bis.doc.gov) describes how ZTE Corporation
also planned and organized a scheme to establish, control, and use a
series of ``detached'' (i.e., shell) companies to illicitly reexport
controlled items to Iran in violation of U.S. export control laws.
    Pursuant to Sec.  744.11 of the EAR, the ERC determined that three
entities located in China and one in Iran should be added to the Entity
List for actions contrary to the national security or foreign policy
interests of the United States. Specifically, the following three
entities (in addition to ZTE Corporation) were identified in the scheme
developed by ZTE Corporation to reexport controlled items to Iran
contrary to United States law, as detailed in the ZTE Corporation
document ``Proposal for Import and Export Control Risk Avoidance,''
referenced above and available on the BIS Web site:

    (a) ZTE Kangxun Telecommunications Ltd. is named in the ZTE
Corporation document ``Proposal for Import and Export Control Risk
Avoidance.'' This entity was designated by ZTE Corporation to
purchase controlled items and provide them to a Chinese intermediary
trading company for reexport to Iran.
    (b) Beijing 8-Star, identified as ``8S'' is described in the ZTE
Corporation document ``Proposal for Import and Export Control Risk
Avoidance.'' This entity was designated by ZTE Corporation to sign
contracts with Iranian clients, make purchases of controlled items,
and reexport the items from China to Iran.
    (c) ZTE Parsian is identified as ``ZTE YL'' in the ZTE
Corporation document ``Proposal for Import and Export Control Risk
Avoidance.'' This entity was designated by ZTE Corporation to
facilitate the illicit reexport scheme by providing contracted
engineering services to ZTE client(s) in Iran receiving the
controlled items.

    Pursuant to Sec.  744.11(b)(5) of the EAR, the ERC determined that
the conduct of these four entities raises sufficient concern that the
prior review of exports, reexports, and transfers (in-country) of items
subject to the EAR involving these

entities, and the possible imposition of license conditions or license
denials on shipments to the entities, will enhance BIS's ability to
prevent violations of the EAR.
    For the four entities this rule adds to the Entity List on the
basis of Sec.  744.11, the ERC specified a license requirement for all
items subject to the EAR and a license review policy of presumption of
denial. The license requirements apply to any transaction in which
items subject to the EAR are proposed for export, reexport, or transfer
(in-country) to any of the four listed entities or any other
transaction in which such entities act as purchaser, intermediate
consignee, ultimate consignee, or end user of items subject to the EAR.
In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) of items subject to the EAR to the
entities being added to the Entity List in this rule.
    This final rule adds the following four entities to the Entity
List:
China
    (1) Beijing 8-Star International Co., Unit 601, 6th Floor, Tower 1,
Prosper Center, No. 5, Guanghua Road, Chaoyang District, Beijing,
China;
    (2) Zhongxing Telecommunications Equipment (ZTE) Corporation, ZTE
Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District,
Shenzen, China; and
    (3) ZTE Kangxun Telecommunications Ltd., 2/3 Floor, Suite A, Zte
Communication Mansion Keji (S) Road, Hi-New Shenzhen, 518057 China.
Iran
    (1) ZTE Parsian, No. 100, Africa Ave., Mirdamad Entersection,
Tehran, Iran.

Savings Clause

    Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were en route aboard a carrier to a port of
export or reexport, on March 8, 2016, pursuant to actual orders for
export or reexport to a foreign destination, may proceed to that
destination under the previous eligibility for a License Exception or
export or reexport without a license (NLR).

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of
August 7, 2015, 80 FR 48233 (August 11, 2015), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act. BIS continues to carry out the provisions of the
Export Administration Act, as appropriate and to the extent permitted
by law, pursuant to Executive Order 13222, as amended by Executive
Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been determined to be not significant for
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is
required to respond to nor be subject to a penalty for failure to
comply with a collection of information, subject to the requirements of
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license applications and carries a burden estimate of
43.8 minutes for a manual or electronic submission. Total burden hours
associated with the PRA and OMB control number 0694-0088 are not
expected to increase as a result of this rule. You may send comments
regarding the collection of information associated with this rule,
including suggestions for reducing the burden, to Jasmeet K. Seehra,
Office of Management and Budget (OMB), by email to
<EMAIL_ADDRESS>or by fax to<PHONE_NUMBER>.
    3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
    4. For the four entities added to the Entity List in this final
rule, the provisions of the Administrative Procedure Act (5 U.S.C. 553)
requiring notice of proposed rulemaking, the opportunity for public
comment, and a delay in effective date are inapplicable because this
regulation involves a military or foreign affairs function of the
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to
protect U.S. national security or foreign policy interests by
preventing items from being exported, reexported, or transferred (in-
country) to the entities being added to the Entity List. If this rule
were delayed to allow for notice and comment and a delay in effective
date, then entities being added to the Entity List by this action would
continue to be able to receive items without a license and to conduct
activities contrary to the national security or foreign policy
interests of the United States. In addition, because these parties may
receive notice of the U.S. Government's intention to place this entity
on the Entity List if a proposed rule is published, doing so would
create an incentive for these entities to either accelerate receiving
items subject to the EAR to conduct activities that are contrary to the
national security or foreign policy interests of the United States, or
to take steps to set up additional aliases, change addresses, and other
measures to try to limit the impact of the listing on the Entity List
once a final rule was published. Further, no other law requires that a
notice of proposed rulemaking and an opportunity for public comment be
given for this rule. Because a notice of proposed rulemaking and an
opportunity for public comment are not required to be given for this
rule by 5 U.S.C. 553, or by any other law, the analytical requirements
of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not
applicable. Accordingly, no regulatory flexibility analysis is required
and none has been prepared.

List of Subject in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:

PART 744--[AMENDED]

0
1. The authority citation for 15 CFR part 744 continues to read as
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66
FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of August 7, 2015, 80 FR
48233 (August 11, 2015); Notice of September 18, 2015, 80 FR 57281
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January
22, 2016).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By adding under China, in alphabetical order, three Chinese
entities; and
0
b. By adding under Iran, in alphabetical order, one Iranian entity.
    The additions read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

----------------------------------------------------------------------------------------------------------------
                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
CHINA, PEOPLE'S                                                  * * * * *
 REPUBLIC OF.            Beijing 8 Star International  For all items        Presumption of     81 FR [INSERT FR
                          Co., Unit 601, 6th Floor,     subject to the       denial.            PAGE NUMBER], 3/
                          Tower 1, Prosper Center,      EAR. (See Sec.                          8/16.
                          No. 5, Guanghua Road,         744.11 of the EAR)
                          Chaoyang District, Beijing,
                          China
                                                                 * * * * *
                         Zhongxing Telecommunications  For all items        Presumption of     81 FR [INSERT FR
                          Equipment (ZTE)               subject to the       denial.            PAGE NUMBER], 3/
                          Corporation, ZTE Plaza,       EAR. (See Sec.                          8/16.
                          Keji Road South, Hi-Tech      744.11 of the EAR)
                          Industrial Park, Nanshan
                          District, Shenzen, China
                         ZTE Kangxun                   For all items        Presumption of     81 FR [INSERT FR
                          Telecommunications Ltd., 2/   subject to the       denial.            PAGE NUMBER], 3/
                          3 Floor, Suite A, Zte         EAR. (See Sec.                          8/16.
                          Communication Mansion Keji    744.11 of the EAR)
                          (S) Road, Hi-New Shenzhen,
                          518057 China
                                                                 * * * * *

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
IRAN...................                                          * * * * *
                         ZTE Parsian, No. 100, Africa  For all items        Presumption of     81 FR [INSERT FR
                          Ave., Mirdamad                subject to the       denial.            PAGE NUMBER], 3/
                          Entersection, Tehran, Iran    EAR. (See Sec.                          8/16.
                                                        744.11 of the EAR)

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

    Dated: March 3, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-05104 Filed 3-7-16; 8:45 am]
 BILLING CODE 3510-33-P


[Federal Register Volume 87, Number 161 (Monday, August 22, 2022)]
[Rules and Regulations]
[Pages 51257-51259]
[FR Doc No: 2022-18032]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2022-0712]
RIN 1625-AA00

Safety Zone; Inner Harbor, Baltimore, MD

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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

SUMMARY: The Coast Guard is establishing a temporary safety zone for
certain waters of the Inner Harbor. The safety zone is needed to
protect personnel, vessels, and the marine environment on these
navigable waters in Baltimore, MD, September 9, 2022-September 11,
2022, from potential hazards during multi-agency helicopter safety
demonstrations in support of the Maryland Fleet Week and Flyover
Baltimore 2022. Entry of vessels or persons into this zone is
prohibited unless specifically authorized by the Captain of the Port,
Maryland-National Capital Region or a designated representative.

DATES: This rule is effective from 1 p.m. on September 9, 2022, through
4 p.m. on September 11, 2022.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://www.regulations.gov, type USCG-
2022-0712 in the ``SEARCH'' box and click ``SEARCH.'' Next, in the
Document Type column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mr. Ron Houck, Sector Maryland-National Capital Region
Waterways Management Division, U.S. Coast Guard; telephone 410-576-
2674, email [email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    The Coast Guard is issuing this temporary rule without prior notice
and opportunity to comment pursuant to authority under section 4(a) of
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that it is
impracticable and contrary to the public interest to publish an NPRM
because we must take immediate action to establish this safety zone by
September 9, 2022, to respond to potential safety hazards associated
with the event. Potential safety hazards include low-hanging ropes and
cables, and helicopter rotor downwash and noise. Event planners did not
notify the Coast Guard with details of the event until August 11, 2022.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying the effective date of
this rule would be impracticable and contrary to the public interest
because immediate action is needed to respond to the potential safety
hazards associated with the helicopter safety demonstrations.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 46 U.S.C.
70034 (previously 33 U.S.C. 1231). The Captain of the Port, Maryland-
National Capital Region (COTP) has determined that potential hazards
associated with the helicopter safety demonstrations on September 9,
2022, September 10, 2022, and September 11, 2022, will be a safety
concern for anyone near the demonstration site. This rule is needed to
protect personnel, vessels, and the marine environment in the navigable
waters within the safety zone before, during, and after the scheduled
events.

IV. Discussion of the Rule

    This rule establishes a safety zone from 1 p.m. on September 9,
2022, through 4 p.m. on September 11, 2022. This safety zone will be
enforced from 1 p.m. to 4 p.m. on September 9, 2022, from 1 p.m. to 4
p.m. on September 10, 2022, and from 1 p.m. to 4 p.m. on September 11,
2022. The safety zone will cover all navigable waters of the Inner
Harbor, encompassed by a line connecting the following points:
beginning at Inner Harbor Pier 6 at position latitude 39[deg]16'59'' N,
longitude 076[deg]36'12'' W, thence south to the Harborview Towers pier
at latitude 39[deg]16'41'' N, longitude 076[deg]36'12'' W, thence
northerly and easterly along the shoreline to and terminating at the
point of origin located in Baltimore, MD. The area of the safety zone
is approximately 2,000 yards in length and 500 yards in width. The
duration of the zone is intended to protect personnel, vessels, and the
marine environment in these navigable waters before, during, and after
the demonstrations. No vessel or person will be permitted to enter the
safety zone without obtaining permission from the COTP or a designated
representative.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders, and we
discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. This rule has not been designated a ``significant
regulatory action,'' under Executive Order 12866. Accordingly, this
rule has not been reviewed by the Office of Management and Budget
(OMB).
    This regulatory action determination is based on the location and
duration of the safety zone. This safety zone will impact the Inner
Harbor for 9 total enforcement hours. We anticipate that there will be
no vessels that are unable to conduct business. Commercial fishing
vessels and towing vessels are not impacted by this rulemaking.
Excursion vessels and water taxis do operate in this area, however, the
impact to these waterway users is minimized because of the extensive
outreach that has been conducted for the Maryland Fleet Week and
Flyover Baltimore 2022 and the involvement of the water taxis in the
event planning process. Moreover, the Coast Guard will issue a
Broadcast

Notice to Mariners via VHF-FM marine channel 16 about the zone.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
will not have a significant economic impact on a substantial number of
small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
call or email the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Directive 023-01, Rev. 1, associated implementing instructions, and
Environmental Planning COMDTINST 5090.1 (series), which guide the Coast
Guard in complying with the National Environmental Policy Act of 1969
(42 U.S.C. 4321-4370f), and have determined that this action is one of
a category of actions that do not individually or cumulatively have a
significant effect on the human environment. This rule involves a
safety zone lasting only 9 total enforcement hours that will prohibit
entry within the Inner Harbor. It is categorically excluded from
further review under paragraph L60(a) of Appendix A, Table 1 of DHS
Instruction Manual 023-01-001-01, Rev. 1. A Record of Environmental
Consideration supporting this determination is available in the docket.
For instructions on locating the docket, see the ADDRESSES section of
this preamble.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to call or email the person listed in the FOR
FURTHER INFORMATION CONTACT section to coordinate protest activities so
that your message can be received without jeopardizing the safety or
security of people, places or vessels.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No.
00170.1, Revision No. 01.2.

0
2. Add Sec.  165.T05-0712 to read as follows:

Sec.  165.T05-0712  Safety Zone; Inner Harbor, Baltimore, MD.

    (a) Location. The following area is a safety zone: All navigable
waters of the Inner Harbor, encompassed by a line connecting the
following points: beginning at Inner Harbor Pier 6 at position latitude
39[deg]16'59'' N, longitude 076[deg]36'12'' W, thence south to the
Harborview Towers pier at latitude 39[deg]16'41'' N, longitude
076[deg]36'12'' W, thence northerly and easterly along the shoreline to
and terminating at the point of origin, located in Baltimore, MD. These
coordinates are based on datum NAD 1983.
    (b) Definitions. As used in this section--
    Captain of the Port (COTP) means the Commander, U.S. Coast Guard
Sector Maryland-National Capital Region.
    Designated representative means any Coast Guard commissioned,
warrant, or petty officer who has been authorized by the Captain of the
Port Maryland-National Capital Region to assist in enforcing the safety
zone described in paragraph (a) of this section.
    (c) Regulations. (1) Under the general safety zone regulations in
subpart C of this part, you may not enter the safety zone described in
paragraph (a) of this section unless authorized by the COTP or the
COTP's designated representative.
    (2) To seek permission to enter, contact the COTP or the COTP's
representative by telephone at<PHONE_NUMBER> or on Marine Band Radio
VHF-FM channel 16 (156.8 MHz). The Coast Guard vessels enforcing this
section can be contacted on Marine Band Radio VHF-FM channel 16 (156.8
MHz).

    (3) Vessels already at berth or moored at the time the safety zone
is implemented do not have to depart the zone or request permission to
remain moored.
    (4) Those in the safety zone must comply with all lawful orders or
directions given to them by the COTP or the COTP's designated
representative.
    (d) Enforcement officials. The U.S. Coast Guard may be assisted in
the patrol and enforcement of the safety zone by Federal, State, and
local agencies.
    (e) Enforcement period. This section will be enforced from 1 p.m.
to 4 p.m. on September 9, 2022, from 1 p.m. to 4 p.m. on September 10,
2022, and from 1 p.m. to 4 p.m. on September 11, 2022.

    Dated: August 17, 2022.
David E. O'Connell,
Captain, U.S. Coast Guard, Captain of the Port Maryland-National
Capital Region.
[FR Doc. 2022-18032 Filed 8-19-22; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 84, Number 74 (Wednesday, April 17, 2019)]
[Notices]
[Pages 16073-16077]
[FR Doc No: 2019-07628]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85608; File No. SR-PEARL-2019-13]

Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
PEARL Fee Schedule

April 11, 2019.
    Pursuant to the provisions of 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 March 29, 2019, MIAX PEARL, LLC (``MIAX PEARL''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a 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 is filing a proposal to amend the MIAX PEARL Fee
Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX
PEARL's principal office, 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 the Add/Remove Tiered Rebates/Fees
set forth in Section (1)(a) of the Fee Schedule to (i) establish that
Members \3\ may qualify for an alternative lower Taker fee for Penny
classes for their Firm Origin orders when trading contra to Origins
other than Priority Customer \4\ if certain thresholds are satisfied by
the Member; and (ii) change the volume criteria for Members to qualify
for alternative Maker rebates for certain options transactions in all
classes for Non-Priority Customers, Firms, Broker-Dealers and Non-MIAX
PEARL Market Makers (collectively herein ``Professional Members'').
---------------------------------------------------------------------------

    \3\ ``Member'' means an individual or organization that is
registered with the Exchange pursuant to Chapter II of the Exchange
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See the Definitions Section of
the Fee Schedule and Exchange Rule 100.
    \4\ ``Priority Customer'' means a person or entity that (i) is
not a broker or dealer in securities, and (ii) does not place more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Exchange Rule
100, including Interpretations and Policies .01.
---------------------------------------------------------------------------

    The Exchange currently assesses transaction rebates and fees to all
market participants which are based upon the total monthly volume
executed by the Member on MIAX PEARL in the relevant, respective origin
type (not including Excluded Contracts) \5\ expressed as a percentage
of TCV.\6\ In addition, the per contract transaction rebates and fees
are applied retroactively to all eligible volume for that origin type
once the respective threshold tier (``Tier'') has been reached by the
Member. The Exchange aggregates the volume of Members and their
Affiliates.\7\ Members that place resting liquidity, i.e., orders
resting on the book of the MIAX PEARL System,\8\ are paid the specified
``maker'' rebate (each a ``Maker''), and Members that execute against
resting liquidity are assessed the specified ``taker'' fee (each a
``Taker''). For opening transactions and ABBO uncrossing transactions,
per contract transaction rebates and fees are waived for all market
participants. Finally, Members are assessed lower transaction fees and
receive lower rebates for order executions in standard option classes
in the Penny Pilot Program \9\ (``Penny classes'') than for order
executions in standard option classes which are not in the Penny Pilot
Program (``Non-Penny classes''), where Members are assessed higher
transaction fees and receive higher rebates. Currently, transaction
rebates and fees in Section (1)(a) of the Fee Schedule for Professional
Members are assessed according to the following table:
---------------------------------------------------------------------------

    \5\ ``Excluded Contracts'' means any contracts routed to an away
market for execution. See the Definitions Section of the Fee
Schedule.
    \6\ ``TCV'' means total consolidated volume calculated as the
total national volume in those classes listed on MIAX PEARL for the
month for which the fees apply, excluding consolidated volume
executed during the period time in which the Exchange experiences an
``Exchange System Disruption'' (solely in the option classes of the
affected Matching Engine (as defined below)). The term Exchange
System Disruption, which is defined in the Definitions section of
the Fee Schedule, means an outage of a Matching Engine or collective
Matching Engines for a period of two consecutive hours or more,
during trading hours. The term Matching Engine, which is also
defined in the Definitions section of the Fee Schedule, is a part of
the MIAX PEARL electronic system that processes options orders and
trades on a symbol-by-symbol basis. Some Matching Engines will
process option classes with multiple root symbols, and other
Matching Engines may be dedicated to one single option root symbol
(for example, options on SPY may be processed by one single Matching
Engine that is dedicated only to SPY). A particular root symbol may
only be assigned to a single designated Matching Engine. A
particular root symbol may not be assigned to multiple Matching
Engines. The Exchange believes that it is reasonable and appropriate
to select two consecutive hours as the amount of time necessary to
constitute an Exchange System Disruption, as two hours equates to
approximately 1.4% of available trading time per month. The Exchange
notes that the term ``Exchange System Disruption'' and its meaning
have no applicability outside of the Fee Schedule, as it is used
solely for purposes of calculating volume for the threshold tiers in
the Fee Schedule. See the Definitions Section of the Fee Schedule.
    \7\ ``Affiliate'' means (i) an affiliate of a Member of at least
75% common ownership between the firms as reflected on each firm's
Form BD, Schedule A, or (ii) the Appointed Market Maker of an
Appointed EEM (or, conversely, the Appointed EEM of an Appointed
Market Maker). An ``Appointed Market Maker'' is a MIAX PEARL Market
Maker (who does not otherwise have a corporate affiliation based
upon common ownership with an EEM) that has been appointed by an EEM
and an ``Appointed EEM'' is an EEM (who does not otherwise have a
corporate affiliation based upon common ownership with a MIAX PEARL
Market Maker) that has been appointed by a MIAX PEARL Market Maker,
pursuant to the process described in the Fee Schedule. See the
Definitions Section of the Fee Schedule.
    \8\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
    \9\ See Securities Exchange Act Release No. 79778 (January 12,
2017), 82 FR 6662 (January 19, 2017) (SR-PEARL-2016-01).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Per contract rebates/fees for penny classes       Per contract rebates/
                                                                           ----------------------------------------------------    fees for non-penny
                                                                               Maker        Maker                                        classes
                                                                              [caret]      [caret]       Taker        Taker    -------------------------
                Origin                    Tier         Volume criteria        (contra      (contra      (contra      (contra
                                                                             origins ex    priority    origins ex    priority      Maker
                                                                              priority     customer     priority     customer    **[caret]     Taker **
                                                                             customer)     origin)     customer)     origin)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-Priority Customer, Firm, BD, and           1  0.00%-0.15%.............      ($0.25)      ($0.23)        $0.50        $0.50      ($0.30)        $1.10
 Non-MIAX PEARL Market Makers.                 2  Above 0.15%-0.40%.......      ($0.40)      ($0.38)         0.50         0.50      ($0.30)         1.10
                                               3  Above 0.40%-0.65%.......      ($0.40)      ($0.38)         0.49         0.50      ($0.60)         1.10
                                               4  Above 0.65%-1.00%.......      ($0.47)      ($0.45)         0.49         0.50      ($0.65)         1.09
                                               5  Above 1.00%-1.40%.......      ($0.48)      ($0.46)         0.48         0.50      ($0.70)         1.08
                                               6  Above 1.40%.............      ($0.48)      ($0.46)         0.48         0.50      ($0.85)         1.07
--------------------------------------------------------------------------------------------------------------------------------------------------------
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the Member
  executes more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option
  classes. For purposes of qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the following
  Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers.
[caret] Members may qualify for Maker Rebates equal to the greater of: (A) ($0.40) for Penny Classes and ($0.65) for Non-Penny Classes, or (B) the
  amount set forth in the applicable Tier reached by the Member in the relevant Origin, if the Member and their Affiliates execute at least 1.50% volume
  in the relevant month, in Priority Customer Origin type, in all options classes, not including Excluded Contracts, as compared to the TCV in all MIAX
  PEARL listed option classes.

    The Exchange proposes to establish an alternative lower Taker fee
that Members may qualify for in Penny classes for their Firm Origin
orders when trading against Origins other than Priority Customer if
certain thresholds are satisfied by the Member. Specifically, Members
may qualify for Taker fees of $0.48 for Penny classes for their Firm
Origin when trading against Origins other than Priority Customer if the
Member and their Affiliates: (1) Execute at least 2.00% of TCV in the
relevant month in the Priority Customer Origin type, in all options
classes, not including Excluded Contracts, as compared to TCV in all
MIAX PEARL listed option classes; and (2) reach at least Tier 3 in the
relevant month in the Professional Members Origin types. The proposed
alternative lower Taker fee is specific to the Firm Origin and volume
aggregation would still be based on Professional Members for tier
purposes. Other Origins within Professional Members would still get the
tier rate assigned in the Professional Members table as set forth in
Section (1)(a) of the Fee Schedule. The proposed change would not apply
to Taker fees for Firm Origin orders in Penny classes that do not reach
at least Tier 3 (Tier 1 and Tier 2) in the relevant month in the
Professional Members Origin types. The proposed change would apply to
Taker fees for Firm Origin orders in Penny classes that reach Tier 3 or
Tier 4 in the relevant month in the Professional Members Origin types,
in which Professional Members, including Firm, in those tiers are
currently assessed a Taker fee of $0.49 when trading against Origins
other than Priority Customer. The proposed change would have no effect
to Taker fees for Firm Origin orders in Penny classes in Tiers 5 and 6
in the relevant month in the Professional Members Origin types as the
Taker fee in those tiers is already set at $0.48 when trading against
Origins other than Priority Customer.
    The Exchange believes that by encouraging Members to execute at
least 2.00% of TCV in the relevant month in the Priority Customer
Origin type, in all options classes, not including Excluded Contracts,
as compared to TCV in all MIAX PEARL listed option classes, and to
reach at least Tier 3 in the relevant month in the Professional Members
Origins types in order to qualify for a lower Taker fee of $0.48 per
contract for Firm orders trading against Origins other than Priority
Customer, instead of the fee otherwise applicable to such orders in
Tier 3 and Tier 4 for Professional Members in Penny classes, may
increase volume of Firm and Priority Customer order flow. The Exchange
believes that the increased order flow will result in increased
liquidity, which benefits all Exchange participants by providing more
trading opportunities and tighter spreads.
    The Exchange also proposes to amend footnote ``[caret]'' below the
tables in the Add/Remove Tiered Rebates/Fees set forth in Section
(1)(a) of the Fee Schedule to increase the Priority Customer threshold
in which Members may qualify for alternative Maker rebates for options
transactions in all classes for Professional Members, provided that the
Member meets certain volume criteria. Currently, Members may qualify
for Maker rebates equal to the greater of: (A) ($0.40) for Penny
Classes and ($0.65) for Non-Penny Classes, or (B) the amount set forth
in the applicable Tier reached by the Member in the relevant Origin, if
the Member and their Affiliates execute at least 1.50% volume in the
relevant month, in Priority Customer Origin type, in all options
classes, not including Excluded Contracts, as compared to the TCV in
all MIAX PEARL listed option classes.
    The Exchange proposes to increase the Priority Customer threshold
percentage amount in footnote ``[caret]'' from at least 1.50% to at
least 2.00% of volume in the relevant month, in Priority Customer
Origin type, in all options classes, not including Excluded Contracts,
as compared to the TCV in all MIAX PEARL listed option classes, in
order to qualify for the alternative Maker rebates. For example, if a
Member met the monthly volume criteria and reached Tier 1 for
Professional Members' options transactions but reached the proposed
increased Priority Customer monthly threshold of over 2.00% of TCV, the
Member would receive a rebate of ($0.40) per contract trading against
any contra in Penny classes (instead of ($0.25) or ($0.23) per
contract) and ($0.65) per contract in Non-Penny classes (instead of
($0.30) per contract). The member would receive the Taker rates
associated with the Tier, $0.50 for Penny, trading against any contra,
and $1.10 for Non-Penny. For purposes of qualifying for such rates, the
Exchange will continue to aggregate the Priority Customer volume
transacted by Members and their Affiliates. As the amount and type of
volume that is executed on the Exchange has shifted since it first
established the alternative Maker rebates for options transactions in
all classes for Professional Members, provided that the Member meets
certain volume criteria,\10\ the Exchange has determined to level-set
this threshold amount so that it is more reflective of the current
operating conditions and the current type and amount of volume executed
on the Exchange.
    With all proposed changes, the transaction rebates and fees in
Section (1)(a) of the Fee Schedule for Professional Members shall be
the following:
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 83419 (June 12,
2018), 83 FR 28285 (June 18, 2018) (SR-PEARL-2018-13).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Per contract rebates/fees for penny classes       Per contract rebates/
                                                                           ----------------------------------------------------    fees for non-penny
                                                                               Maker        Maker                                        classes
                                                                              [caret]      [caret]    Taker [loz]     Taker    -------------------------
                Origin                    Tier         Volume criteria        (contra      (contra      (contra      (contra
                                                                             origins ex    priority    origins ex    priority      Maker
                                                                              priority     customer     priority     customer    **[caret]     Taker **
                                                                             customer)     origin)     customer)     origin)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-Priority Customer, Firm, BD, and           1  0.00%-0.15%.............      ($0.25)      ($0.23)        $0.50        $0.50      ($0.30)        $1.10
 Non-MIAX PEARL Market Makers.                 2  Above 0.15%-0.40%.......      ($0.40)      ($0.38)         0.50         0.50      ($0.30)         1.10
                                               3  Above 0.40%-0.65%.......      ($0.40)      ($0.38)         0.49         0.50      ($0.60)         1.10
                                               4  Above 0.65%-1.00%.......      ($0.47)      ($0.45)         0.49         0.50      ($0.65)         1.09
                                               5  Above 1.00%-1.40%.......      ($0.48)      ($0.46)         0.48         0.50      ($0.70)         1.08
                                               6  Above 1.40%.............      ($0.48)      ($0.46)         0.48         0.50      ($0.85)         1.07
--------------------------------------------------------------------------------------------------------------------------------------------------------
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the Member
  executes more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option
  classes. For purposes of qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the following
  Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers.

[caret] Members may qualify for Maker Rebates equal to the greater of: (A) ($0.40) for Penny Classes and ($0.65) for Non-Penny Classes, or (B) the
  amount set forth in the applicable Tier reached by the Member in the relevant Origin, if the Member and their Affiliates execute at least 2.00% volume
  in the relevant month, in Priority Customer Origin type, in all options classes, not including Excluded Contracts, as compared to the TCV in all MIAX
  PEARL listed option classes.
[loz] Members may qualify for Taker Fees of $0.48 for Penny classes for their Firm Origin when trading against Origins not Priority Customer if the
  Member and their Affiliates: (1) Execute at least 2.00% of TCV in the relevant month in the Priority Customer Origin type, in all options classes, not
  including Excluded Contracts, as compared to TCV in all MIAX PEARL listed option classes, and (2) reach at least Tier 3 in the relevant month in the
  specified Origin types (Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers).

    The proposed rule change is to become operative April 1, 2019.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \11\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\12\ in that it
is an equitable allocation of reasonable dues, fees and other charges
among Exchange members and issuers and other persons using its
facilities, and 6(b)(5) of the Act,\13\ in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------

    The Exchange's proposal to establish an alternative Taker fee for
Firm Origin when trading against Origins other than Priority Customer
that will apply instead of the Taker fee otherwise applicable to such
orders, if a certain threshold in the Priority Customer Origin and a
certain tier level by Professional Members are satisfied by the member,
is consistent with Section 6(b)(4) of the Act \14\ because it applies
equally to all Members for their Firm Origin with similar order flow.
The Exchange believes that the proposed alternative threshold by which
any Member may qualify for the lower Taker fee of $0.48 for Penny
classes for their Firm Origin when trading against Origins other than
Priority Customer instead of the Taker fee otherwise applicable to such
orders is fair, equitable, and not unreasonably discriminatory because
it will encourage Members to submit both Firm and Priority Customer
orders, which will increase liquidity, which benefit all market
participants by providing more trading opportunities and tighter
spreads. The alternative Taker fee is reasonable because it will
incentivize providers of Priority Customer order flow to send that
Priority Customer order flow to the Exchange in order to obtain the
highest volume threshold and receive a Taker fee in a manner that
enables the Exchange to improve its overall competitiveness and
strengthen its market quality for all market participants.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The proposal to increase the Priority Customer threshold for
alternative Maker rebates for options transactions in all classes for
Professional Members, provided that the Member meets certain volume
criteria (the Member and their Affiliates execute at least 2.00%
(instead of 1.50%) of volume in the relevant month, in Priority
Customer Origin type, in all options classes, not including Excluded
Contracts, as compared to the TCV in all MIAX PEARL listed option
classes), is reasonable, equitable and not unfairly discriminatory
because all similarly situated market participants are subject to the
same tiered rebates and fees and access to the Exchange is offered on
terms that are not unfairly discriminatory. The Exchange believes that
providing alternative Maker rebates for options transactions in all
classes for Professional Members (if the Member meets certain volume
criteria relating to Priority Customer volume), and adjusting the
threshold requirements so that they are reflective of current operating
conditions and the current type and amount of volume executed on the
Exchange, will encourage Members to execute additional Priority
Customer and Professional Member volume on the Exchange. The Exchange
believes that additional Priority Customer and Professional Member
volume executed on the Exchange will attract further liquidity to the
Exchange, which in turn will benefit all market participants.

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

    MIAX PEARL 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 Exchange believes that the
proposed changes to establish a lower Taker fee assessed to Firm Origin
when trading contra to Origins other than Priority Customer and the
change to the volume criteria for Members to qualify for alternative
Maker rebates should continue to encourage the provision of liquidity
that enhances the quality of the Exchange's markets and increases the
number of trading opportunities on MIAX PEARL for all participants who
will be able to compete for such opportunities. The proposed rule
change should enable the Exchange to continue to attract and compete
for order flow with other exchanges. However, this competition does not
create an undue burden on competition but rather offers all market
participants the opportunity to receive the benefit of competitive
pricing.
    The Exchange further believes that its proposal to establish a
lower Taker fee that Members may qualify for in Penny classes for their
Firm Origin when trading against Origins other than Priority Customer,
provided that the Member meets certain volume criteria, that will apply
instead of the Taker fee otherwise applicable to such orders, will not
have an impact on intra-market competition. Specifically, the Exchange
believes that the proposal to establish additional thresholds by which
any Member may qualify for a Taker fee of $0.48 per contract for their
Firm Orders when trading against Origins other than Priority Customer,
when Members and their Affiliates execute at least 2.00% of TCV in the
relevant month in the Priority Customer Origin type, in all options
classes, not including Excluded Contracts, as compared to TCV in all
MIAX PEARL listed option classes, and to reach at least Tier 3 in the
relevant month in the specified Origin types, instead of the fee
otherwise applicable to such orders in Tier 3 or Tier 4, will increase
volume of Firm and Priority Customer order flow. The Exchange believes
that the increased order flow will result in increased liquidity which
benefits all Exchange participants by providing more trading
opportunities and tighter spreads. Because the proposal offers
additional thresholds by which a Member can receive a lower Taker fee
for their Firm Origin instead of the Taker fee otherwise applicable to
such orders in Tier 3 or Tier 4, the Exchange believes that the
proposed rule change will not impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act.
    The Exchange further believes that its proposal to increase the
Priority Customer Threshold in which Members may qualify for
alternative Maker rebates for options transactions in all

classes for Professional Members, provided that the Member meets
certain volume criteria, will not have an impact on intra-market
competition. Specifically, the Exchange believes the proposal to
increase the Priority Customer threshold that Members may qualify for
Maker rebates equal to the greater of: (A) ($0.40) for Penny Classes
and ($0.65) for Non-Penny Classes, or (B) the amount set forth in the
applicable Tier reached by the Member in the relevant Origin, if the
Member and their Affiliates execute at least 2.00% volume in the
relevant month, in Priority Customer Origin type, in all options
classes, not including Excluded Contracts, as compared to the TCV in
all MIAX PEARL listed option classes, will not impose any burden on
competition because the proposed increase is a level-setting change to
keep up with the changes in the Exchange's market share and Members
volume on the Exchange.
    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. In such an
environment, the Exchange must continually adjust its rebates and fees
to remain competitive with other exchanges and to attract order flow.
The Exchange believes that the proposed rule changes reflect this
competitive environment because they modify the Exchange's fees and
rebates in a manner that encourages market participants to continue to
provide liquidity and to send order flow to the Exchange.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\15\ and Rule 19b-4(f)(2) \16\ 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. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 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 protected]. Please include
File Number SR-PEARL-2019-13 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-PEARL-2019-13. 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-PEARL-2019-13, and should be submitted
on or before May 8, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-07628 Filed 4-16-19; 8:45 am]
 BILLING CODE 8011-01-P