[Federal Register Volume 87, Number 21 (Tuesday, February 1, 2022)]
[Notices]
[Page 5489]
[FR Doc No: 2022-01940]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2020-0016]

Meetings To Implement Pandemic Response Voluntary Agreement Under
Section 708 of the Defense Production Act

AGENCY: Federal Emergency Management Agency, Department of Homeland
Security.

ACTION: Announcement of meetings; correction.

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SUMMARY: The Federal Emergency Management Agency (FEMA) published a
document in the Federal Register of January 6, 2022, concerning four
meetings under the Plan of Action to Establish a National Strategy for
the Coordination of National Multimodal Healthcare Supply Chains to
Respond to COVID-19. The document contained an incorrect date.

FOR FURTHER INFORMATION CONTACT: Robert Glenn, Office of Business,
Industry, Infrastructure Integration, via email at [email protected] or
via phone at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Correction

    In the Federal Register of January 6, 2022, in FR Doc. 87-784, on
page 784, in the second column, correct the DATES caption to read:

Dates

     Wednesday, January 5, 2022, from 1 p.m. to 3 p.m. Eastern
Time (ET).
     Wednesday, January 12, 2022, from 1 p.m. to 3 p.m. ET.
     Wednesday, January 19, 2022, from 1 p.m. to 3 p.m. ET.
     Wednesday, February 2, 2022, from 1 p.m. to 3 p.m. ET.

    Dated: January 26, 2022.
Shabnaum Q. Amjad,
Deputy Associate Chief Counsel, Regulatory Affairs Division, Office of
Chief Counsel, Federal Emergency Management Agency.
[FR Doc. 2022-01940 Filed 1-31-22; 8:45 am]
BILLING CODE 9111-19-P


[Federal Register Volume 78, Number 68 (Tuesday, April 9, 2013)]
[Notices]
[Pages 21135-21136]
[FR Doc No: 2013-08178]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2013-0010; OMB No. 1660-0006]

Agency Information Collection Activities: Proposed Collection;
Comment Request.

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: The Federal Emergency Management Agency, as part of its
continuing effort to reduce paperwork and respondent burden, invites
the general public and other Federal agencies to take this opportunity
to comment on a revision of a currently approved collection. In
accordance with the Paperwork Reduction Act of 1995, this notice seeks
comments concerning information collected for NFIP policies to
accommodate the changing insurance needs of policyholders.

DATES: Comments must be submitted on or before June 10, 2013.

ADDRESSES: To avoid duplicate submissions to the docket, please use
only one of the following means to submit comments:
    (1) Online. Submit comments at www.regulations.gov under Docket ID
FEMA-2013-0010. Follow the instructions for submitting comments.
    (2) Mail. Submit written comments to Docket Manager, Office of
Chief Counsel, DHS/FEMA, 500 C Street SW., Washington, DC 20472-3100.
    (3) Facsimile. Submit comments to<PHONE_NUMBER>.
    (4) Email. Submit comments to<EMAIL_ADDRESS>Include Docket
ID FEMA-2013-0010 in the subject line.
    All submissions received must include the agency name and Docket
ID. Regardless of the method used for submitting comments or material,
all submissions will be posted, without change, to the Federal
eRulemaking Portal at http://www.regulations.gov, and will include any
personal information you provide. Therefore, submitting this
information makes it public. You may wish to read the Privacy Act
notice that is available via the link in the footer of
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mary Ann Chang, Insurance Examiner,
Mitigation Directorate,<PHONE_NUMBER>. You may contact the Records
Management Division for copies of the proposed collection of
information at facsimile number<PHONE_NUMBER> or email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The National Flood Insurance Program (NFIP)
is authorized by Public Law 90-448 (1968) and expanded by Public Law
93-234 (1973). The National Flood Insurance Act of 1968 requires that
the Federal Emergency Management Agency (FEMA) provided flood insurance
at full actuarial rates reflecting the complete flood risk to
structures built or substantially improved on or after the effective
date for the initial Flood Insurance Rate Map for the community, or
after December 31, 1974, whichever is later, so that the risks
associated with buildings in flood-prone areas are borne by those
located in such areas and not by the taxpayers at large. In accordance

with Public Law 93-234, the purchase of flood insurance is mandatory
when Federal or federally related financial assistance is being
provided for acquisition or construction of buildings located, or to be
located, within FEMA-identified special flood hazard areas of
communities that are participating in the NFIP.

Collection of Information

    Title: National Flood Insurance Program Policy Forms.
    Type of Information Collection: Revision of a currently approved
collection.
    FEMA Forms: FEMA Form 086-0-1, Flood Insurance Application; FEMA
Form 086-0-2, Flood Insurance Cancellation/Nullification Request Form;
FEMA Form 086-0-3, Flood Insurance General Change Endorsement; FEMA
Form 086-0-4, V-Zone Risk Factor Rating Form and Instructions; and FEMA
Form 086-0-5, Flood Insurance Preferred Risk Application.
    Abstract: In order to provide for the availability of policies for
flood insurance, policies are marketed through the facilities of
licensed insurance agents or brokers in the various States.
Applications from agents or brokers are forwarded to a servicing
company designated as fiscal agent by the Federal Insurance
Administration. Upon receipt and examination of the application and
required premium, the servicing company issues the appropriate Federal
flood insurance policy.
    Affected Public: Individuals or households; State, local or Tribal
Government; Business or other for profit; Not-for-profit institutions;
and Farms.
    Number of Respondents: 56,122.
    Number of Responses: 56,122.
    Estimated Total Annual Burden Hours: 8,268.
    Estimated Cost: The cost to respondents is $6,500 for engineer or
architect services.
    Comments: Comments may be submitted as indicated in the ADDRESSES
caption above. Comments are solicited to (a) Evaluate whether the
proposed data collection is necessary for the proper performance of the
agency, including whether the information shall have practical utility;
(b) evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) enhance the quality, utility, and
clarity of the information to be collected; and (d) minimize the burden
of the collection of information on those who are to respond, including
through the use of appropriate automated, electronic, mechanical, or
other technological collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses.

    Dated: March 28, 2013.
Charlene D. Myrthil
Director, Records Management Division, Mission Support Bureau, Federal
Emergency Management Agency, Department of Homeland Security.
[FR Doc. 2013-08178 Filed 4-8-13; 8:45 am]
BILLING CODE 9110-11-P


[Federal Register: October 10, 2008 (Volume 73, Number 198)]
[Notices]
[Page 60375-60377]
[DOCID:fr10oc08-144]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58733; File No. SR-Phlx-2008-67]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the NASDAQ OMX PHLX, Inc.
Relating to Clarification Regarding Capitalization-Weighting of Indexes

 October 3, 2008.
    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 September 29, 2008, the NASDAQ OMX PHLX, Inc. (``Phlx'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. Phlx filed
the proposal pursuant to Section 19(b)(3)(A) of the Act\3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders the proposal effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange, pursuant to Section 19(b)(1) of the Act\5\ and Rule
19b-4

thereunder,\6\ proposes to clarify the methodology used in calculating
capitalization-weighted and modified capitalization-weighted indexes
underlying options listed pursuant to Exchange Rule 1009A(b).
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    \5\ 15 U.S.C. 78s(b)(1).
    \6\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://www.phlx.com/regulatory/reg_rulefilings.aspx, 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 currently lists a number of narrow-based stock index
options pursuant to the listing standards established in section (b) of
Phlx Rule 1009A, Designation of the Index (the ``Generic Listing
Rule''). The Generic Listing Rule includes capitalization-weighting
(including modified capitalization-weighting) as a permissible
component weighting methodology for indexes underlying options listed
pursuant to the Generic Listing Rule. The Exchange would like to
clarify that component last sale prices used to calculate index values
under capitalization-weighting methodology can be either primary
exchange regular-way last sale prices or the regular-way last sale
prices reported on the consolidated tape. A primary exchange last sale
price is generally the last sale price on a trade executed through the
facilities of the exchange where the component maintains its listing. A
consolidated tape last sale price is the last sale price reported under
the appropriate national market system reporting plan, regardless of
where the trade was executed.\7\
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    \7\ Language that was included in the ``Purpose'' section of the
filing to add modified capitalization-weighting as a permissible
weighting methodology for indexes underlying options listed pursuant
to the Generic Listing Rule could be interpreted to permit only
primary exchange last sale prices to be used. See Securities
Exchange Act Release No. 46211 (July 16, 2002), 67 FR 47874 (July
22, 2002) (SR-Phlx-2002-42). This, of course, is not always the best
approach in calculating indexes, since in some cases the
consolidated tape may be a better source for current prices.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act\9\ in particular, in that it is designed to promote
just and equitable principles of trade, 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
by clarifying that investors may have access to options listed pursuant
to the Generic Listing Rule that underlie indexes other than those
based exclusively on primary exchange last sale prices.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited nor received.

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

    Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)
thereunder.\11\ In addition, Rule 19b-4(f)(6)(iii) \12\ requires a
self-regulatory organization to provide the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least five-
business days prior to the date of filing of the proposed rule change.
The Exchange has satisfied the five-business-day pre-filing
requirement.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2008-67 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-Phlx-2008-67. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that

you wish to make available publicly. All submissions should refer to
File Number SR-Phlx-2008-67 and should be submitted on or before
October 31, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-24119 Filed 10-9-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: October 7, 2010 (Volume 75, Number 194)]
[Notices]
[Page 62160-62167]
[DOCID:fr07oc10-90]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63027; File No. SR-Phlx-2010-108]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order
Granting Approval to a Proposed Rule Change Relating to a Proposed
Price Improvement System, Price Improvement XL

October 1, 2010.

I. Introduction

    On July 30, 2010, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (the ``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
establish Price Improvement XL (``PIXL''). The proposed rule change was
published for

comment in the Federal Register on August 16, 2010.\3\ The Commission
received no comment letters on the proposal. This order approves the
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 62678 (August 10,
2010), 75 FR 50021 (``Notice'').
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II. Description of the Proposal

    In its filing, Phlx proposes to establish a price-improvement
mechanism in which a member (an ``Initiating Member'') may
electronically submit for execution an order it represents as agent on
behalf of a public customer, broker-dealer, or any other entity (this
initial order is referred to as the ``PIXL Order'') against principal
interest or against any other order it represents as agent (this
matching order is referred to as the ``Initiating Order'') provided it
submits the PIXL Order for electronic execution into the PIXL Auction
(``Auction'') pursuant to the proposed Rule.\4\ In addition, Phlx
proposes to provide for the automatic execution, under certain
conditions, of a crossing transaction where there is a public customer
order in the same options series on each side.
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    \4\ For a more detailed discussion of the purpose of the
proposal and examples, see Notice.
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III. Discussion and Commission Findings

    After careful review of the proposal, the Commission finds that the
proposed rule change to establish rules for the implementation of the
PIXL auction is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange \5\ and, in particular, the requirements of Section 6 of the
Act.\6\ Specifically, as discussed further below, the Commission finds
that the proposal is consistent with Section 6(b)(5) of the Act,\7\
which requires, in part, that the rules of an exchange be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
and processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Section
6(b)(5) of the Act also requires that the rules of an exchange not be
designed to permit unfair discrimination among customers, issuers,
brokers, or dealers. The Commission believes that approving the
Exchange's proposal to establish PIXL should increase competition among
those options exchanges that offer similar functionality. For the
reasons discussed below, the Commission finds that the Exchange's
proposal is consistent with the Act.
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    \5\ In approving this proposal, the Commission has considered
the proposed rule change's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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A. Auction Eligibility

    Proposed Rule 1080(n)(i) describes the circumstances under which an
Initiating Member may initiate a PIXL Auction. Notably, the proposal
draws a distinction between orders for less than 50 contracts and those
for 50 contracts or more, and affords slightly different treatment
based on that distinction. The specific treatment of public customer
and non-public customer orders for above and below 50 contracts is
described directly below.\8\
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    \8\ In addition, the Notice contains an example that illustrates
the application of these specific provisions. See Notice, supra note
3, at 75 FR 50022.
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    For public customer orders, if the PIXL Order is for 50 contracts
or more, the Initiating Member must stop the entire PIXL Order at a
price that is equal to or better than the National Best Bid/Offer
(``NBBO'') on the opposite side of the market from the PIXL Order,
provided that such price must be at least one minimum price improvement
increment (as determined by the Exchange but not smaller than one cent)
better than any limit order on the limit order book on the same side of
the market as the PIXL Order. If the PIXL Order is for a size of less
than 50 contracts, the Initiating Member must stop the entire PIXL
Order at a price that is the better of: (i) The PBBO price on the
opposite side of the market from the PIXL Order improved by at least
one minimum price improvement increment, or (ii) the PIXL Order's limit
price (if the order is a limit order), provided in either case that
such price is better than the NBBO, and at least one minimum price
improvement increment better than any limit order on the book on the
same side of the market as the PIXL Order.
    For non-public customer orders (i.e., where the order is for the
account of a broker-dealer or any other person or entity that is not a
public customer), if the order is for 50 contracts or more, the
Initiating Member must stop the entire PIXL Order at a price that is
the better of: (i) The PBBO price improved by at least one minimum
price improvement increment on the same side of the market as the PIXL
Order, or (ii) the PIXL Order's limit price (if the order is a limit
order), provided in either case that such price is at or better than
the NBBO. If the PIXL Order is for less than 50 contracts, the
Initiating Member must stop the entire PIXL Order at a price that is
the better of: (i) The PBBO price improved by at least one minimum
price improvement increment on the same side of the market as the PIXL
Order, or (ii) the PIXL Order's limit price (if the order is a limit
order), provided in either case that such price is at or better than
the NBBO and at least one minimum improvement increment better than the
PBBO on the opposite side of the market from the PIXL Order.
    The Commission finds that the Exchange's proposed rule with respect
to auction eligibility requirements for PIXL is consistent with the
Act. The Commission notes that the PIXL Order will be guaranteed an
execution price of at least the NBBO in all cases and will be given an
opportunity for execution at a price better than the NBBO.\9\ Further,
for public customer orders of less than 50 contracts, the Commission
notes that minimum stop price must be one minimum increment better than
the NBBO. In addition, the proposal seeks to protect the priority of
resting limit orders on the Exchange book. The Commission notes that
proposed Rule 1080(n)(i)(A)(2) and (n)(i)(B)(2), concerning orders that
are submitted with a size of less than 50 contracts, will be effective
on a pilot basis expiring August 31, 2011. The Exchange has agreed to
provide the Commission with detailed information each month during the
pilot period to assist the Commission, as well as the Exchange, in

ascertaining the level of price improvement attained for smaller-sized
orders during the pilot period.
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    \9\ The Boston Options Exchange (``BOX''), a trading facility of
NASDAQ OMX BX, Inc., operates an auction known as the PIP, see
Securities Exchange Act Release No. 49068 (January 13, 2004), 69 FR
2775 (January 20, 2004) (Order approving SR-BSE-2002-15 to establish
trading rules for the BOX facility (``PIP Order'')), the
International Securities Exchange, LLC. (``ISE'') operates an
auction known as the PIM, see Securities Exchange Act Release No.
50819 (December 8, 2004), 69 FR 75093 (December 15, 2004) (Order
approving SR-ISE-2003-06 to adopt rules for the PIM (``PIM
Order'')), and the Chicago Board Stock Exchange, Incorporated
(``CBOE'') operates an auction known as the AIM, see Securities
Exchange Act Release No. 53222 (February 3, 2006), 71 FR 7089
(February 10, 2006) (Order approving SR-CBOE 2005-60 to adopt rules
for the AIM (``AIM Order'')). The PIP and PIM also require a member
to enter an order into the auction at a price that is at least equal
to the NBBO. See BOX Rules, Chapter V, Section 18(e) and ISE Rule
723(b)(1). The CBOE requires an agency order that is for 50
contracts or more to be entered into the AIM at a price that is the
better of the NBBO or the agency order's limit price, and an agency
order that is less than 50 contracts at a price that is the better
of the NBBO price improved by one minimum price improvement
increment or the agency order's limit price. See CBOE Rule 6.74A(a).
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B. Initiating the Auction

    An Initiating Member may initiate a PIXL Auction by submitting a
PIXL Order in one of three ways: (1) Single stop price, (2) auto-match
price, or (3) not-worse-than price.
    Under the first option, the Initiating Member could submit a PIXL
Order specifying a single ``stop'' price at which it seeks to execute
the PIXL Order. Under the second option, an Initiating Member could
submit a PIXL Order specifying that it is willing to automatically
match (``auto-match'') as principal or as agent on behalf of an
Initiating Order the price and size of all trading interest \10\ and
responses to the PIXL Auction Notification (``PAN,'' as described
below), in which case the PIXL Order would be stopped at the NBBO on
the Initiating Order side of the market (if 50 contracts or greater)
or, if less than 50 contracts, the better of: (i) The PBBO price on the
opposite side of the market from the PIXL Order improved by at least
one minimum price improvement increment, or (ii) the PIXL Order's limit
price (if the order is a limit order), provided in either case that
such price is at or better than the NBBO and at least one increment
better than the limit of an order on the book on the same side as the
PIXL Order.
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    \10\ ``Trading interest'' refers to unrelated orders received
during the Auction, booked orders, and quotes that are considered
for execution and allocation against the PIXL Order following the
Auction.
---------------------------------------------------------------------------

    Under the third and final option, an Initiating Member could submit
a PIXL Order specifying that it is willing to either: (i) Stop the
entire order at a single stop price and auto-match PAN responses, as
described below, together with trading interest, at a price or prices
that improve the stop price to a specified price above or below which
the Initiating Member will not trade (a ``Not Worse Than'' or ``NWT''
price); (ii) stop the entire order at a single stop price and auto-
match all PAN responses and trading interest at or better than the stop
price; or (iii) stop the entire order at the NBBO on the Initiating
Order side (if 50 contracts or greater) or the better of: (A) The PBBO
price on the opposite side of the market from the PIXL Order improved
by one minimum price improvement increment, or (B) the PIXL Order's
limit price (if the order is a limit order) on the Initiating Order
side (if for less than 50 contracts), and auto-match PAN responses and
trading interest at a price or prices that improve the stop price up to
the NWT price. In all cases, if the PBBO on the same side of the market
as the PIXL Order represents a limit order on the book, the stop price
must be at least one minimum price improvement increment better than
the booked limit order's limit price.
    Once the Initiating Member has submitted a PIXL Order for
processing, the PIXL Order may not be cancelled. The Initiating Member
may improve the stop price or NWT price of its Initiating Order,
however such price may be improved only to the benefit of the PIXL
Order during the Auction, and the order may not be cancelled.
    The Commission notes that the proposed PIXL procedures regarding
the submission of a PIXL Order using the auto-match and NWT prices are
similar to the rules of the CBOE, BOX, and ISE.\11\ One notable
difference is that the BOX and ISE Rules prohibit a member from
cancelling or modifying the auto-match price during the price
improvement auction \12\ whereas the Phlx proposal would allow a member
to modify the stop or NWT price, but such price may only be improved to
the benefit of the PIXL Order during the Auction and the order may not
be cancelled after it is entered. The Commission notes that when the
Initiating Member selects the auto-match or NTW price prior to the
start of the auction, competitive final pricing would be out of the
Initiating Member's control. The Commission believes that permitting
the Initiating Member to improve the NWT price during the PIXL Auction
could allow members to quickly react to an improving market and thereby
provide additional opportunity for the member to offer price
improvement to the PIXL Order.
---------------------------------------------------------------------------

    \11\ See BOX Rules, Ch. V, Section 18(e), CBOE Rule
6.74A(b)(1)(A), and ISE Rule 716(d)(iii).
    \12\ See BOX Rules, Ch. V, Section 18(e) and ISE Rule
716(d)(iii).
---------------------------------------------------------------------------

    In addition, the Exchange has undertaken to provide the Commission
with the following data on a monthly basis, which the Commission and
the Exchange can use to evaluate the proposed auto-match functionality:
the percentage of all Phlx trades effected through the PIXL Auction in
which the Initiating Member has chosen the auto-match feature, and the
average amount of price improvement provided to the PIXL Order when the
Initiating Member has chosen the auto-match feature versus the average
amount of price improvement provided to the PIXL Order when the
Initiating Member has chosen a stop price submission.

C. PIXL Auction Notification (``PAN'')

    When the Exchange receives a PIXL Order for Auction processing, a
PAN detailing the side, size, and the stop price of the PIXL Order will
be sent over the Exchange's TOPO Plus Orders data feed.\13\ An updated
PAN message will be sent over the Exchange's TOPO Plus Orders data feed
when the Initiating Member improves the stop price of the PIXL Order.
The updated PAN will include the side, size, and improved stop price of
the PIXL Order. Messages concerning updates to the stop price by the
Initiating Member would be used by PAN respondents to improve a
previously-submitted price when they are alerted that a stop price has
been improved. Any person or entity may submit PAN responses, provided
such response is properly marked specifying price, size, and side of
the market. The Commission believes that access to the PIXL auction for
those who may wish to compete for a PIXL Order should be sufficient to
provide opportunities for a meaningful, competitive auction.\14\
---------------------------------------------------------------------------

    \13\ For a description of TOPO Plus Orders, see Securities
Exchange Act Release No. 60877 (October 26, 2009), 74 FR 56255
(October 30, 2009) (SR-Phlx-2009-92). See also Securities Exchange
Act Release No. 62194 (May 28, 2010), 75 FR 31830 (June 4, 2010)
(SR-Phlx-2010-48) (Order approving market data fees for TOPO Plus
Orders) (``TOPO Plus Approval Order''). Members who are
``Professional Subscribers'' to the TOPO Plus Orders data feed are
subject to lower fees than the ``External Distributors'' from whom
they receive TOPO Plus Orders.
    \14\ See TOPO Plus Approval Order, supra note 13 (approving
market data fees for TOPO Plus Orders as consistent with Sections
6(b)(4) and 6(b)(5) of the Act).
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D. PIXL Auction

    A PIXL Auction would last for one second,\15\ unless it is
concluded early as the result of any of the circumstances described
below. PAN responses will not be visible to Auction participants, and
will not be disseminated to the Options Price Reporting Authority
(``OPRA'').\16\ A PAN response must be equal to or better than the NBBO
at the time of receipt of the PAN response. A PAN response with a price
that is outside the NBBO would be rejected. PAN responses may be
modified or cancelled during the Auction.\17\ PAN responses on the same
side of the market as the PIXL Order are considered

invalid and will be rejected.\18\ Multiple PAN responses from the same
member may be submitted during the Auction. Multiple orders at a
particular price level submitted by a member in response to a PAN may
not exceed, in the aggregate, the size of the PIXL Order.\19\
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    \15\ The PIP, AIM, and PIM also are one-second auctions. See BOX
Rules, Chapter V, Section 18(e)(i), CBOE Rule 6.74A(b)(1)(C), and
ISE Rule 723(c)(1).
    \16\ CBOE's AIM also provides that responses to the auction will
not be visible to other participants and will not be disseminated to
OPRA. See CBOE Rule 6.74A(b)(1)(F).
    \17\ See also CBOE Rule 6.74A(b)(1)(I).
    \18\ The Exchange stated in its proposal that any PAN response
on the same side of the market as the PIXL Order would be the result
of an error, and therefore Phlx would reject such response.
    \19\ A pattern or practice of submitting multiple orders in
response to a PAN at a particular price point that exceed, in the
aggregate, the size of the PIXL Order, will be deemed conduct
inconsistent with just and equitable principles of trade and a
violation of Phlx Rule 707. See Phlx Rule 1080(n)(iv).
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E. Conclusion of the PIXL Auction

    An Auction could conclude early any time: (i) The PBBO crosses the
PIXL Order stop price on the same side of the market as the PIXL Order
(since further price improvement will be unlikely and any responses
offering improvement are likely to be cancelled), or (ii) there is a
trading halt on the Exchange in the affected series. The proposed rules
concerning the early conclusion of an Auction will be effective for a
pilot period scheduled to expire August 31, 2011. The Exchange has
undertaken to provide the Commission with detailed information each
month during the pilot period to assist the Commission, as well as the
Exchange, in ascertaining the effect of early Auction conclusions
during the pilot period.
    If the Auction concludes before the expiration of one second as the
result of the PBBO crossing the stop price, the entire PIXL Order will
be executed at the best response price(s) or, if the stop price is the
best price in the Auction, at the stop price, unless the best response
price is equal to the price of a limit order resting on the Phlx book
on the same side of the market as the PIXL Order, in which case the
PIXL Order will be executed against that response, but at a price that
is at least one minimum price improvement increment better than the
price of such limit order at the time of the conclusion of the Auction.
The Commission notes that Phlx Rule 1080(n)(v) states that a pattern or
practice of submitting unrelated orders or quotes that cross the stop
price, causing a PIXL Auction to conclude before the end of the PIXL
Auction period will be deemed conduct inconsistent with just and
equitable principles of trade and a violation of Phlx Rule 707.
    If the Auction concludes early as the result of a trading halt on
the Exchange in the affected series, the entire PIXL Order would
execute against the Initiating Order at the stop price, since the
Initiating Member had guaranteed that an execution would occur at the
stop price (or better) prior to the initiation of the trading halt.
    An unrelated market or marketable limit order on the opposite side
of the market from the PIXL Order received during the Auction will not
cause the Auction to end early. Such order would execute against
interest outside of the Auction. If contracts remain from such
unrelated order at the time the Auction ends, however, they would
participate in the PIXL order allocation process. This provision would
be effective for a pilot period scheduled to expire on August 31, 2011.
The Commission believes that allowing the PIXL auction to continue for
the full auction period despite receipt of unrelated orders outside the
Auction would allow the auction to run its full course and, in so
doing, will provide a full opportunity for price improvement to the
PIXL Order. Further, the unrelated order would be available to
participate in the PIXL order allocation.
    The Commission believes that approval of these provisions on a
pilot basis is appropriate and will afford both the Exchange and the
Commission an opportunity to analyze the impact of early terminations
and unrelated orders on the PIXL process, as well as the Exchange's
surveillance procedures with respect to PIXL.\20\ In particular, the
Exchange has agreed to provide the Commission with data on a monthly
basis to assist the Commission, and the Exchange, in evaluating the
operation of the PIXL Auction and the provisions for early termination
of an Auction. In addition, the Exchange has agreed to provide
information on (1) the number of times an unrelated market or
marketable limit order (against the PBBO) on the opposite side of the
PIXL Order is received during the Auction Period and (2) the price(s)
at which an unrelated market or marketable limit order (against the
PBBO) on the opposite side of the PIXL Order that is received during
the Auction Period is executed, compared to the execution price of the
PIXL Order. The Commission expects to be able to use this information
to consider the impact of the proposed rule on the PIXL Order as well
as the unrelated order.
---------------------------------------------------------------------------

    \20\ The Exchange's surveillance plan and procedures are subject
to inspection by the Commission, to ensure that the Exchange
adequately monitors its market and its members, and enforces its
rules and the federal securities laws, including the anti-fraud
provisions.
---------------------------------------------------------------------------

F. Order Allocation

    At the conclusion of the Auction, the PIXL Order would be allocated
at the best price(s), which may include non-Auction quotes and orders
that may be present at each price level. Public customer orders would
have priority at each price level, after which contracts would be
allocated among all Exchange quotes, orders, and PAN responses.\21\ Any
unexecuted PAN responses would be cancelled.
---------------------------------------------------------------------------

    \21\ Proposed Rules 1080(n)(ii)(F) through (H) address the
handling of the PIXL Order and other orders, quotes and PAN
responses when certain conditions are present. Specifically, if
there are PAN responses that cross the then-existing NBBO (provided
such NBBO is not crossed) at the time of the conclusion of the
Auction, such PAN responses will be executed, if possible, at their
limit price(s). If the final PIXL Auction price is the same as an
order on the limit order book on the same side of the market as the
PIXL Order, the PIXL Order may only be executed at a price that is
at least one minimum price improvement increment better than the
resting order's limit price or, if such resting order's limit price
crosses the stop price, then the entire PIXL Order will trade at the
stop price with all better priced interest being considered for
execution at the stop price.
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1. Single Price Submission Option
    Under the single stop price option, allocations would be made first
at prices that improve the stop price, and then at the stop price with
up to 40% of the remaining contracts after public customer interest is
satisfied being allocated to the Initiating Member at the stop
price.\22\ Remaining contracts would be allocated among remaining
quotes, orders, and PAN responses at the stop price, and then to the
Initiating Member.\23\
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    \22\ However, if only one specialist, SQT or RSQT matches the
stop price, then the Initiating Member may be allocated up to 50% of
the contracts executed at such price. This allocation is consistent
with CBOE Rule 6.74A(b)(3)(F).
    \23\ Under the proposed Rule, the specialist would not be
entitled to receive orders for 5 contracts or fewer.
---------------------------------------------------------------------------

2. Auto-Match Option
    Under the auto-match option, the Initiating Member would be
allocated an equal number of contracts as the aggregate size of all
other quotes, orders, and PAN responses at each price point until a
price point is reached where the balance of the order can be fully
executed, except that the Initiating Member would receive up to 40% of
the contracts remaining at the final price point (including situations
where the final price point is the stop price).
3. Stop and NWT Option
    Under the NWT option, after public customer interest is satisfied,
contracts would be allocated first to quotes, orders, and PAN responses
at prices

better than the NWT price (if any), beginning with the best price.
Next, contracts would be allocated among quotes, orders, and PAN
responses at prices equal to the Initiating Member's NWT price and
better than the Initiating Member's stop price, beginning with the NWT
price. The Initiating Member would receive an equal number of contracts
as the aggregate size of all other quotes, orders, and PAN responses at
each price point, except that the Initiating Member would be entitled
to receive up to 40% of the contracts remaining at the final price
point (including situations where the final price point is the stop
price).
    The Commission believes that the proposed PIXL rules should promote
price competition within a PIXL auction by providing Phlx members with
a reasonable opportunity to compete for a significant percentage of the
PIXL order and, therefore, should protect investors and the public
interest. The Commission continues to believe that a 40% allocation is
consistent with the statutory standards for competition and free and
open markets.\24\
---------------------------------------------------------------------------

    \24\ See PIP Order, supra note 9, at 2789-2790 and PIM Order,
supra note 9, at 75097-75098.
---------------------------------------------------------------------------

G. Professionals

    Phlx Rule 1000(b)(14) defines the term ``professional'' and
provides that professional orders will be treated in the same manner as
orders for an off-floor broker-dealer for the purposes of certain
rules.\25\ The definition provides an exception for professional all-
or-none orders, which are treated like customer orders. Phlx proposes
to amend this definition to provide that professional orders will be
treated in the same manner as orders for an off-floor broker-dealers
for the purposes of PIXL and to also provide that PIXL orders for the
beneficial accounts of professionals with an all-or-none designation
\26\ will be treated in the same manner as off-floor broker-dealer
orders (i.e., not treated like customer orders). The Commission notes
that this is consistent with the ISE's PIM, where ISE Priority Customer
interest is executed in full before Professional Orders and market
maker quotes.\27\
---------------------------------------------------------------------------

    \25\ See Securities Exchange Act Release No. 61802 (March 30,
2010), 75 FR 17193 (April 5, 2010)(SR-Phlx-2010-05) (adopting the
term ``professional'' as a person or entity that (i) is not a broker
or dealer in securities, and (ii) places more than 390 orders in
listed options per day on average during a calendar month for its
own beneficial account(s)).
    \26\ According to the Exchange, PIXL Orders are inherently all-
or-none orders because the Initiating Member guarantees that the
PIXL Order will be filled in its entirety.
    \27\ See ISE Rule 723(d)(1).
---------------------------------------------------------------------------

H. Crossing Public Customer Orders on PIXL

    Proposed Rule 1080(n)(v) addresses the situation where an
Initiating Member holds public customer orders on both sides of the
market in the same option series. Instead of initiating a PIXL Auction,
an Initiating Member would be able to enter a PIXL Order for the
account of a public customer paired with an order for the account of
another public customer and such paired orders would be automatically
executed without the need to commence a PIXL Auction. The execution
price would be required to be expressed in the minimum quoting
increment applicable to the series (e.g., a penny where the series
trades in penny increments). An execution may not trade through the
NBBO or at the same price as any resting customer order. The Commission
believes that these specifications are designed to protect resting
limit orders on the book, and would ensure that this mechanism could
not be used to trade in increments that would not otherwise be
available for trading outside the PIXL context.
    Phlx Rule 1080(c)(ii)(C) prevents an Order Entry Firm from
executing agency orders to increase its economic gain from trading
against the order without first giving other trading interests on the
Exchange an opportunity to either trade with the agency order or to
trade at the execution price when the member was already bidding or
offering on the book. However, the Exchange recognizes that it may be
possible for a firm to establish a relationship with a customer or
other person to deny agency orders the opportunity to interact on the
Exchange and to realize similar economic benefits as it would achieve
by executing agency orders as principal. The proposed rule would
provide that it would be a violation of Rule 1080(c)(ii)(C) for a firm
to circumvent Rule 1080(c)(ii)(C) by providing an opportunity for (i) a
customer affiliated with the firm, or (ii) a customer with whom the
firm has an arrangement that allows the firm to realize similar
economic benefits from the transaction as the firm would achieve by
executing agency orders as principal, to regularly execute against
agency orders handled by the firm immediately upon their entry as PIXL
customer-to-customer immediate crosses. These provisions are
substantially similar to those of CBOE.\28\
---------------------------------------------------------------------------

    \28\ See CBOE Rule 6.74A.09.
---------------------------------------------------------------------------

I. No Minimum Size Requirement for PIXL

    Like the BOX's PIP auction, the ISE's PIM auction, and the CBOE's
AIM auction, the PIXL auction would be available for orders of fewer
than 50 contracts. Under the Exchange's proposal, there would be no
minimum size requirement for orders entered into the PIXL for a pilot
period expiring on August 31, 2011.
    The Commission believes that the Exchange's proposal should provide
small customer orders with the opportunity for price improvement in a
manner that is consistent with the Act. The Commission will evaluate
the PIXL auction during the Pilot Period to determine whether it would
be beneficial to customers and to the options market as a whole to
approve any proposal requesting permanent approval to permit orders of
fewer than 50 contracts to be submitted to the PIXL auction. In
addition, the Commission will examine the data submitted by the
Exchange with respect to situations in which the PIXL auction is
terminated prematurely by an unrelated order. To aid the Commission in
its evaluation, the Exchange represents that it will provide the
following information each month:
    Regarding the early conclusion of an Auction due to the PBBO
crossing the PIXL Order stop price on the same side of the market as
the PIXL order, or due to a trading halt, the Exchange has undertaken
to provide the following information on a monthly basis during the
pilot period:
    (1) The number of times that the PBBO crossed the PIXL Order stop
price on the same side of the market as the PIXL Order and prematurely
ended the PIXL Auction, and at what time the PIXL Auction ended;
    (2) The number of times that a trading halt prematurely ended the
PIXL auction and at what time the trading halt ended the PIXL Auction;
    (3) Of the Auctions terminated early due to the PBBO crossing the
PIXL order stop price, the number that resulted in price improvement
over the PIXL Order stop price, and the average amount of price
improvement provided to the PIXL Order;
    (4) In the Auctions terminated early due to the PBBO crossing the
PIXL order stop price, the percentage of contracts that received price
improvement over the PIXL order stop price;
    (5) Of the Auctions terminated early due to a trading halt, the
number that resulted in price improvement over the PIXL Order stop
price, and the average amount of price improvement provided to the PIXL
Order;

    (6) In the auctions terminated early due to a trading halt, the
percentage of contracts that received price improvement over the PIXL
order stop price; and
    (7) The average amount of price improvement provided to the PIXL
Order when the PIXL Auction is not terminated early (i.e., runs the
full one second).
    (8) The number of times an unrelated market or marketable limit
order (against the PBBO) on the opposite side of the PIXL Order is
received during the Auction Period; and
    (9) The price(s) at which an unrelated market or marketable limit
order (against the PBBO) on the opposite side of the PIXL Order that is
received during the Auction Period is executed, compared to the
execution price of the PIXL Order.
    Regarding PIXL Orders of fewer than 50 contracts, the Exchange has
undertaken to provide the following information on a monthly basis
during the pilot period:
    (1) The number of orders of fewer than 50 contracts entered into
the PIXL Auction;
    (2) The percentage of all orders of fewer than 50 contracts sent to
Phlx that are entered into the PIXL Auction;
    (3) The percentage of all Phlx trades represented by orders of
fewer than 50 contracts;
    (4) The percentage of all Phlx trades effected through the PIXL
Auction represented by orders of fewer than 50 contracts;
    (5) The percentage of all contracts traded on Phlx represented by
orders of fewer than 50 contracts;
    (6) The percentage of all contracts effected through the PIXL
Auction represented by orders of fewer than 50 contracts;
    (7) The spread in the option, at the time an order of fewer than 50
contracts is submitted to the PIXL Auction;
    (8) The number of orders of 50 contracts or greater entered into
the PIXL Auction;
    (9) The percentage of all orders of 50 contracts or greater sent to
Phlx that are entered into the PIXL Auction;
    (10) The spread in the option, at the time an order of 50 contracts
or greater is submitted to the PIXL Auction;
    (11) Of PIXL trades where the PIXL Order is for the account of a
public customer, and is for a size of fewer than 50 contracts, the
percentage done at the NBBO plus $.01, plus $.02, plus $.03, etc.;
    (12) Of PIXL trades where the PIXL Order is for the account of a
public customer, and is for a size of 50 contracts or greater, the
percentage done at the NBBO plus $.01, plus $.02, plus $.03, etc.; and
    (13) Of PIXL trades where the PIXL Order is for the account of a
broker dealer or any other person or entity that is not a public
customer, and is for a size of fewer than 50 contracts, the percentage
done at the NBBO plus $.01, plus $.02, plus $.03, etc.
    (14) Of PIXL trades where the PIXL Order is for the account of a
broker dealer or any other person or entity that is not a public
customer, and is for a size of 50 contracts or greater, the percentage
done at the NBBO plus $.01, plus $.02, plus $.03, etc.; and
    (15) The number of orders submitted by Initiating Members when the
spread was $.05, $.10, $.15, etc. For each spread, specify the
percentage of contracts in orders of fewer than 50 contracts submitted
to the PIXL Auction that were traded by: (a) The Initiating Member that
submitted the order to the PIXL; (b) Phlx Market Makers assigned to the
class; (c) other Phlx members; (d) Public Customer Orders; and (e)
unrelated orders (orders in standard increments entered during the PIXL
Auction). For each spread, also specify the percentage of contracts in
orders of 50 contracts or greater submitted to the PIXL Auction that
were traded by: (a) the Initiating Member that submitted the order to
the PIXL Auction; (b) Phlx market makers assigned to the class; (c)
other Phlx members; (d) Public Customer Orders; and (e) unrelated
orders (orders in standard increments entered during the PIXL Auction).
    Regarding PIXL auto-match, the Exchange has undertaken to provide
the following information on a monthly basis during the pilot period:
    (1) The percentage of all Phlx trades effected through the PIXL
Auction in which the Initiating Member has chosen the auto-match
feature, and the average amount of price improvement provided to the
PIXL Order when the Initiating Member has chosen the auto-match feature
vs. the average amount of price improvement provided to the PIXL Order
when the Initiating Member has chosen a stop price submission.
    Regarding competition, the Exchange has undertaken to provide the
following information on a monthly basis during the pilot period:
    (1) For the first Wednesday of each month: (a) The total number of
PIXL auctions on that date; (b) the number of PIXL auctions where the
order submitted to the PIXL was fewer than 50 contracts; (c) the number
of PIXL auctions where the order submitted to the PIXL was 50 contracts
or greater; (d) the number of PIXL auctions (for orders of fewer than
50 contracts) with 0 participants (excluding the initiating
participant), 1 participant (excluding the initiating participant), 2
participants (excluding the initiating participant), 3 participants
(excluding the initiating participant), 4 participants (excluding the
initiating participant), etc., and (e) the number of PIXL auctions (for
orders of 50 contracts or greater) with 0 participants (excluding the
initiating participant), 1 participant (excluding the initiating
participant), 2 participants (excluding the initiating participant), 3
participants (excluding the initiating participant), 4 participants
(excluding the initiating participant), etc.; and
    (2) For the third Wednesday of each month: (a) The total number of
PIXL auctions on that date; (b) the number of PIXL auctions where the
order submitted to the PIXL was fewer than 50 contracts; (c) the number
of PIXL auctions where the order submitted to the PIXL was 50 contracts
or greater; (d) the number of PIXL auctions (for orders of fewer than
50 contracts) with 0 participants (excluding the initiating
participant), 1 participant (excluding the initiating participant), 2
participants (excluding the initiating participant), 3 participants
(excluding the initiating participant), 4 participants (excluding the
initiating participant), etc., and (e) the number of PIXL auctions (for
orders of 50 contracts or greater) with 0 participants (excluding the
initiating participant), 1 participant (excluding the initiating
participant), 2 participants (excluding the initiating participant), 3
participants (excluding the initiating participant), 4 participants
(excluding the initiating participant), etc.

J. Section 11(a) of the Act

    Section 11(a)(1) of the Act \29\ prohibits a member of a national
securities exchange from effecting transactions on that exchange for
its own account, the account of an associated person, or an account
over which it or its associated person exercises discretion
(collectively, ``covered accounts'') unless an exception applies. Rule
11a2-2(T) under the Act,\30\ known as the ``effect versus execute''
rule, provides exchange members with an exemption from the Section
11(a)(1) prohibition. Rule 11a2-2(T) permits an exchange member,
subject to certain conditions, to effect transactions for covered
accounts by arranging for an unaffiliated member to execute
transactions on the exchange. To comply with Rule 11a2-2(T)'s
conditions, a member: (i) Must transmit the order from off the exchange
floor; (ii) may not participate in the execution

of the transaction once it has been transmitted to the member
performing the execution; \31\ (iii) may not be affiliated with the
executing member; and (iv) with respect to an account over which the
member has investment discretion, neither the member nor its associated
person may retain any compensation in connection with effecting the
transaction except as provided in the Rule.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78k(a)(1).
    \30\ 17 CFR 240.11a2-2(T).
    \31\ The member may, however, participate in clearing and
settling the transaction.
---------------------------------------------------------------------------

    In a letter to the Commission, the Exchange requests that the
Commission concur with Phlx's conclusion that members who enter orders
into the Auction satisfy the requirements of Rule 11a2-2(T).\32\ For
the reasons set forth below, the Commission believes that Exchange
members entering orders into the Auction would satisfy the conditions
of the Rule.
---------------------------------------------------------------------------

    \32\ See Letter from Richard S. Rudolph, Associate General
Counsel, Phlx, to Elizabeth M. Murphy, Secretary, Commission, dated
October 1, 2010 (``Phlx 11(a) Letter'').
---------------------------------------------------------------------------

    The Rule's first condition is that orders for covered accounts be
transmitted from off the exchange floor. In the context of automated
trading systems, the Commission has found that the off-floor
transmission requirement is met if a covered account order is
transmitted from a remote location directly to an exchange's floor by
electronic means.\33\ Phlx has represented that only specialists and
on-floor Streaming Quote Traders (``SQTs'') \34\ have the ability to
submit orders into the Auction from on the floor of the Exchange.\35\
These members, however, would be subject to the ``market maker''
exception to Section 11(a) of the Act and Rule 11a2-2(T)(a)(1)
thereunder.\36\ Remote Streaming Quote Traders (``RSQTs'') may only
submit orders into the Auction from off the floor of the Exchange.\37\
Phlx has also represented that, while Floor Brokers have the ability to
submit orders they represent as agent to the electronic limit order
book through the Exchange's Options Floor Broker Management System
(``FBMS''), there is no mechanism by which such Floor Brokers can
directly submit orders to the Auction or send orders to off-floor
broker-dealers through FBMS for indirect submission into the
Auction.\38\ Because no Exchange members, other than specialists and
SQTs, may submit orders into the Auction from on the floor of the
Exchange, the Commission believes that PIXL satisfies the off-floor
transmission requirement.
---------------------------------------------------------------------------

    \33\ See, e.g., Securities Exchange Act Release Nos. 61419
(January 26, 2010), 75 FR 5157 (February 1, 2010) (SR-BATS-2009-031)
(approving BATS options trading); 59154 (December 23, 2008), 73 FR
80468 (December 31, 2008) (SR-BSE-2008-48) (approving equity
securities listing and trading on BSE); 57478 (March 12, 2008), 73
FR 14521 (March 18, 2008) (SR-NASDAQ-2007-004 and SR-NASDAQ-2007-
080) (approving NOM options trading); 53128 (January 13, 2006), 71
FR 3550 (January 23, 2006) (File No. 10-131) (approving The Nasdaq
Stock Market LLC); 44983 (October 25, 2001), 66 FR 55225 (November
1, 2001) (SR-PCX-00-25) (approving Archipelago Exchange); 29237 (May
24, 1991), 56 FR 24853 (May 31, 1991) (SR-NYSE-90-52 and SR-NYSE-90-
53) (approving NYSE's Off-Hours Trading Facility); and 15533
(January 29, 1979), 44 FR 6084 (January 31, 1979) (``1979
Release'').
    \34\ An SQT is an Exchange Registered Options Trader (``ROT'')
who has received permission from the Exchange to generate and submit
option quotations electronically through AUTOM in eligible options
to which such SQT is assigned. An SQT may only submit such
quotations while such SQT is physically present on the floor of the
Exchange. See Exchange Rule 1014(b)(ii)(A).
    \35\ See Phlx 11(a) Letter, supra note 32, at note 21 and
accompanying text. Also, the Exchange represented that SQTs and
RSQTs are market makers on the Exchange. See Phlx 11(a) Letter,
supra note 32.
    \36\ See 15 U.S.C. Section 78k(a)(1)(A); 17 CFR 240.11a2-
2(T)(a)(1). According to the Exchange, there are no other on-floor
members, other than Exchange specialists and SQTs, who have the
ability to submit orders into the Auction.
    \37\ See Phlx 11(a) Letter, supra note 32, at note 18 and
accompanying text. An RSQT is an ROT that is a member or member
organization with no physical trading floor presence and who has
received permission from the Exchange to generate and submit option
quotations electronically through AUTOM in eligible options to which
such RSQT has been assigned. An RSQT may only submit such quotations
electronically from off the floor of the Exchange. See Exchange Rule
1014(b)(ii)(B).
    The Commission notes that, while RSQTs may only submit orders
into the Auction from off the Exchange floor, RSQTs also would be
subject to the ``market maker'' exception to Section 11(a) of the
Act and Rule 11a2-2(T)(a)(1) thereunder.
    \38\ The Exchange represented that because FBMS does not have
the coding required to enter orders into the Auction, and, as a
result, it is impossible for such Floor Brokers to submit orders
into the Auction. See Phlx 11(a) Letter, supra note 32, at note 20
and accompanying text.
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    Second, the Rule requires that the member not participate in the
execution of its order. Phlx has represented that at no time following
the submission of an order is a member organization able to acquire
control or influence over the result or timing of an order's
execution.\39\ According to the Exchange, the execution of a member's
order is determined by what other orders are present in the Auction and
the priority of those orders.\40\ Accordingly, the Commission believes
that a member does not participate in the execution of an order
submitted to the Auction.
---------------------------------------------------------------------------

    \39\ See Phlx 11(a) Letter, supra note 32.
    \40\ See id. A member may cancel or modify the order, or modify
the instruction for executing the order, but only from off the
floor. The Commission has stated that the non-participation
requirement is satisfied under such circumstances, so long as such
modifications or cancellations are also transmitted from off the
floor. See Securities Exchange Act Release No. 14713 (April 27,
1978), 43 FR 18557 (May 1, 1978) (``1978 Release'') (stating that
the ``non-participation requirement does not prevent initiating
members from canceling or modifying orders (or the instructions
pursuant to which the initiating member wishes orders to be
executed) after the orders have been transmitted to the executing
member, provided that any such instructions are also transmitted
from off the floor'').
---------------------------------------------------------------------------

    Third, Rule 11a2-2(T) requires that the order be executed by an
exchange member who is unaffiliated with the member initiating the
order. The Commission has stated that this requirement is satisfied
when automated systems, such as PIXL, are used, as long as the design
of these systems ensures that members do not possess any special or
unique trading advantages in handling their orders after transmitting
them to the exchange.\41\ Phlx has represented that the design of the
Auction ensures that no member organization has any special or unique
trading advantage in the handling of its orders after transmitting its
orders to the Auction.\42\ Based on the Exchange's representation, the
Commission believes that PIXL satisfies this requirement.
---------------------------------------------------------------------------

    \41\ In considering the operation of automated execution systems
operated by an exchange, the Commission noted that, while there is
not an independent executing exchange member, the execution of an
order is automatic once it has been transmitted into the system.
Because the design of these systems ensures that members do not
possess any special or unique trading advantages in handling their
orders after transmitting them to the exchange, the Commission has
stated that executions obtained through these systems satisfy the
independent execution requirement of Rule 11a2-2(T). See 1979
Release, supra note 33.
    \42\ See Phlx 11(a) Letter, supra note 32.
---------------------------------------------------------------------------

    Fourth, in the case of a transaction effected for an account with
respect to which the initiating member or an associated person thereof
exercises investment discretion, neither the initiating member nor any
associated person thereof may retain any compensation in connection
with effecting the transaction, unless the person authorized to
transact business for the account has expressly provided otherwise by
written contract referring to Section 11(a) of the Act and Rule 11a2-
2(T) thereunder.\43\ Phlx represents that member organizations relying
on Rule 11a2-2(T) for transactions effected

through PIXL must comply with this condition of the Rule.\44\
---------------------------------------------------------------------------

    \43\ See 17 CFR 240.11a2-2(T)(a)(2)(iv). In addition, Rule 11a2-
2(T)(d) requires a member or associated person authorized by written
contract to retain compensation, in connection with effecting
transactions for covered accounts over which such member or
associated persons thereof exercises investment discretion, to
furnish at least annually to the person authorized to transact
business for the account a statement setting forth the total amount
of compensation retained by the member in connection with effecting
transactions for the account during the period covered by the
statement. See 17 CFR 240.11a2-2(T)(d). See also 1978 Release, supra
note 40 (stating ``[t]he contractual and disclosure requirements are
designed to assure that accounts electing to permit transaction-
related compensation do so only after deciding that such
arrangements are suitable to their interests'').
    \44\ See Phlx 11(a) Letter, supra note 32.
---------------------------------------------------------------------------

IV. Conclusion

    For the foregoing reasons, the Commission finds that the proposed
rule change, as amended, is consistent with the Act and the rules and
regulations thereunder applicable to a national securities exchange,
and, in particular, with Section 6(b)(5) of the Act.\45\
---------------------------------------------------------------------------

    \45\ 15 U.S.C. 78f(b)(5). In connection with the issuance of
this approval order, neither the Commission nor its staff is
granting any exemptive or no-action relief from the requirements of
Rule 10b-0 under the Act. 17 CFR 240.10b-10. Accordingly, a broker-
dealer executing a customer order through the PIXL auction will need
to comply with all applicable requirements of that Rule.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\46\ that the proposed rule change (SR-Phlx-2010-108) is approved,
except that (1) paragraphs (n)(i)(A)(2), (n)(i)(B)(2), (n)(ii)(B)(4),
and (n)(ii)(D) of Phlx Rule 1080 are approved on a pilot basis until
August 31, 2011; and (2) there shall be no minimum size requirement for
orders entered into the PIXL for a pilot period expiring on August 31,
2011.
---------------------------------------------------------------------------

    \46\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\47\
---------------------------------------------------------------------------

    \47\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25252 Filed 10-6-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 185 (Thursday, September 24, 2015)]
[Rules and Regulations]
[Pages 57538-57540]
[FR Doc No: 2015-24088]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2013-0040; FRL-9934-41-Region 4]

Approval and Promulgation of Implementation Plans; Florida
Infrastructure Requirements for the 2008 Lead NAAQS

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is taking final
action to approve portions of the October 14, 2011, State
Implementation Plan (SIP) submission, provided by the State of Florida,
through the Department of Environmental Protection (FL DEP) for
inclusion into the Florida SIP. This final submission pertains to the
Clean Air Act (CAA or the Act) infrastructure requirements for the 2008
Lead national ambient air quality standards (NAAQS). The CAA requires
that each state adopt and submit a SIP for the implementation,
maintenance, and enforcement of each NAAQS promulgated by EPA, which is
commonly referred to as an ``infrastructure'' SIP. FL DEP certified
that the Florida SIP contains provisions that ensure the 2008 Lead
NAAQS is implemented, enforced, and maintained in Florida. With the
exception of provisions pertaining to prevention of significant
deterioration (PSD) permitting which EPA has already approved, EPA is
taking final action to approve Florida's infrastructure submission,
provided to EPA on October 14, 2011, as satisfying the required
infrastructure elements for the 2008 Lead NAAQS.

DATES: This rule will be effective October 26, 2015

ADDRESSES: EPA has established a docket for this action under Docket
Identification No. EPA-R04-OAR-2013-0040. All documents in the docket
are listed on the www.regulations.gov Web site. Although listed in the
index, some information is not publicly available, i.e., Confidential
Business Information or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available either electronically through www.regulations.gov or in hard
copy at the Air Regulatory Management Section, Air Planning and
Implementation Branch, Air, Pesticides and Toxics Management Division,
U.S.

Environmental Protection Agency, Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section to schedule your inspection. The Regional Office's official
hours of business are Monday through Friday, 8:30 a.m. to 4:30 p.m.,
excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Zuri Farngalo, Air Regulatory
Management Section, Air Planning and Implementation Branch, Air,
Pesticides and Toxics Management Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia
30303-8960. The telephone number is<PHONE_NUMBER>. Mr. Farngalo can be
reached via electronic mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    Upon promulgation of a new or revised NAAQS, sections 110(a)(1) and
(2) of the CAA require states to address basic SIP requirements,
including emissions inventories, monitoring, and modeling to assure
attainment and maintenance for that new NAAQS. Section 110(a) of the
CAA generally requires states to make a SIP submission to meet
applicable requirements in order to provide for the implementation,
maintenance, and enforcement of a new or revised NAAQS within three
years following the promulgation of such NAAQS, or within such shorter
period as EPA may prescribe. For additional information on the
infrastructure SIP requirements, see the proposed rulemaking published
on May 22, 2015 (80 FR 29592).
    On May 22, 2015, EPA proposed to approve portions of Florida's
October 14, 2011, 2008 Lead NAAQS infrastructure SIP submission with
the exception of provisions pertaining to PSD permitting in sections
110(a)(2)(C), prong 3 of D(i) and (J). EPA did not receive any
comments, adverse or otherwise, on the May 22, 2015, proposed rule. EPA
took final action to approve the PSD permitting requirements in
sections 110(a)(2)(C), prong 3 of D(i) and (J) on March 18, 2015 (80 FR
14019). EPA is taking final action to approve the remaining portions of
Florida's infrastructure submission as demonstrating that the State
meets the applicable requirements of sections 110(a)(1) and (2) of the
CAA for the 2008 Lead NAAQS.

II. Final Action

    With the exception of provisions pertaining to PSD permitting
requirements, EPA is taking final action to approve Florida's October
14, 2011, infrastructure submission because it addresses the required
infrastructure elements for the 2008 Lead NAAQS. FL DEP has addressed
the elements of the CAA 110(a)(1) and (2) SIP requirements pursuant to
section 110 of the CAA to ensure that the 2008 Lead NAAQS is
implemented, enforced, and maintained in Florida.

III. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the rule does not have tribal implications and will not impose
substantial direct costs on tribal governments or preempt tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by November 23, 2015. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to
enforce its requirements. See section 307(b)(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Lead, Reporting and
recordkeeping requirements, Volatile organic compounds.

    Dated: September 10, 2015.
Heather McTeer Toney,
Regional Administrator, Region 4.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart K--Florida

0
2. Section 52.520(e), is amended by adding entry ``110(a)(1) and (2)
Infrastructure Requirements for the 2008 Lead National Ambient Air
Quality Standards'' at the end of the table to read as follows:

Sec.  52.520  Identification of plan.

* * * * *
    (e) * * *

                                 EPA-Approved Florida Non-Regulatory Provisions
----------------------------------------------------------------------------------------------------------------
                                    State effective    EPA approval     Federal Register
             Provision                    date             date              notice              Explanation
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
110(a)(1) and (2) Infrastructure        10/14/2011        9/24/2015   [Insert citation of   With the exception
 Requirements for the 2008 Lead                                        publication].         of provisions
 National Ambient Air Quality                                                                pertaining to PSD
 Standards.                                                                                permitting
                                                                                requirements in
                                                                                sections
                                                                                110(a)(2)(C), prong
                                                                                3 of D(i) and (J).
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[FR Doc. 2015-24088 Filed 9-23-15; 8:45 am]
BILLING CODE 6560-50-P