[Federal Register Volume 78, Number 17 (Friday, January 25, 2013)]
[Notices]
[Pages 5516-5518]
[FR Doc No: 2013-01484]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68690; File No. SR-DTC-2012-810]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing Advance Notice To Reduce Liquidity Risk Relating to
Its Processing of Maturity and Income Presentments and Issuances of
Money Market Instruments

January 18, 2013.
    Pursuant to Section 806(e)(1) of the Payment, Clearing, and
Settlement Supervision Act of 2010 (``Clearing Supervision Act'') \1\
and Rule 19b-4(n)(1)(i) \2\ thereunder, notice is hereby given that on
December 28, 2012, The Depository Trust Company (``DTC'') filed with
the Securities and Exchange Commission (``Commission'') the advance
notice described in Items I, II and III below, which Items have been
prepared primarily by DTC. The Commission is publishing this notice to
solicit comments on the advance notice from interested persons.
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(i).
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    DTC is proposing to change the current Largest Provisional Net
Credit (``LPNC'') risk management control in order to increase
withholding from one to two largest provisional credits (on an acronym
\3\ basis). DTC is also proposing to modify its Rules as they relate to
the Issuing/Paying Agent's (``IPA's'') refusal to pay process. DTC is
proposing not to process a reversal of a transaction initiated by an
IPA when issuances of Money Market Instruments (``MMIs'') in an acronym
exceed, in dollar value, the maturity or income presentments
(``Maturity Obligations'') of MMIs in the

same acronym on the same day. As a result, at the point in time when
issuances of MMIs in an acronym exceed, in dollar value, the Maturity
Obligations of the MMIs in the same acronym on that day, DTC will
remove the LPNC control with respect to the affected acronym.
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    \3\ DTC employs a four-character acronym to designate an
issuer's Money Market Instrument program. An issuer can have
multiple acronyms. The Issuing/Paying Agent's bank uses the
acronym(s) when submitting an instruction for a given issuer's Money
Market Instrument securities.
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II. Clearing Agency's Statement of Purpose of, and Statutory Basis for,
the Advance Notice

    In its filing with the Commission, DTC included statements
concerning the purpose of and basis for the advance notice and
discussed any comments it received on the advance notice. The text of
these statements may be examined at the places specified in Item IV
below. DTC has prepared summaries, set forth in sections (A) and (B)
below, of the most significant aspects of such statements.\4\
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    \4\ The Commission has modified the text of the summaries
prepared by DTC.
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(A) Advance Notices Filed Pursuant to Section 806(e) of the Payment,
Clearing and Settlement Supervision Act

Description of Change
    MMI presentment processing is initiated automatically by DTC each
morning for MMIs maturing that day. The automatic process
electronically sweeps all maturing positions of MMI CUSIPs from DTC
Participant accounts and creates the Maturity Obligations. The matured
MMIs are, subject to DTC Rules, delivered to the applicable IPA, a DTC
Participant, and DTC debits the IPA's account for the amount of the
Maturity Obligations. In accordance with DTC Rules, payment will be due
from the IPA for net settlement to the extent, if any, that the IPA has
a net debit balance in its settlement account at end-of-day.
    Without regard to DTC net settlement, MMI issuers and IPAs commonly
view the primary source of funding of payments for Maturity Obligations
of MMIs as flowing from new issuances of MMIs in the same acronym by
that issuer on that day. In a situation where those new issuances
exceed the Maturity Obligations, the issuer would have no net funds
payment due to the IPA on that day. However, because Maturity
Obligations of MMIs are processed automatically at DTC, IPAs currently
operationally have the ability to pay for all of an issuer's
maturities. An IPA that refuses payment on an MMI must communicate its
intention to DTC using the DTC Participant Terminal/Browser Service
(``PTS/PBS'') MMRP function. This communication is referred to as an
Issuer Failure/Refusal to Pay (``RTP'') and it allows the Paying Agent
to enter a refusal to pay instruction for a particular issuer acronym
up to 3:00 p.m. Eastern Time (``ET'') on the date of the affected
maturity or income presentment. Such an instruction will cause DTC,
pursuant to its Rules, to reverse all transactions related to that
issuer's acronym, including Maturity Obligations and any new issuances,
posing a potential for systemic risk since the reversals may override
DTC's risk management controls (e.g., collateral monitor \5\ and net
debit cap \6\).
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    \5\ DTC tracks collateral in a Participant's account through the
Collateral Monitor (``CM''). At all times, the CM reflects the
amount by which the collateral value in the account exceeds the net
debit balance in the account. When processing a transaction, DTC
verifies that the CM of each of the deliverer and receiver will not
become negative when the transaction is processed. If the
transaction would cause either party to have a negative CM, the
transaction will recycle until the deficient account has sufficient
collateral to proceed or until the applicable cutoff occurs.
    \6\ The net debit cap control is designed so that DTC may
complete settlement, even if a Participant fails to settle. Before
completing a transaction in which a Participant is the receiver, DTC
calculates the effect the transaction would have on such
Participant's account, and determines whether any resulting net
debit balance would exceed the Participant's net debit cap. Any
transaction that would cause the net debit balance to exceed the net
debit cap is placed on a pending (recycling) queue until the net
debit cap will not be exceeded by processing the transaction.
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    To mitigate the risks associated with an RTP, DTC employs the LPNC
risk management control. On each processing day, DTC withholds intraday
credit from each MMI Participant for the largest credit with respect to
an issuer's acronym, for purposes of calculating the Participant's net
settlement balance and collateral monitor. As such, this single largest
credit is provisional and is not included in the calculation of the
Participant's collateral monitor or in the settlement balance measured
against its net debit cap. DTC believes that the LPNC control will help
protect DTC against either (i) the single largest issuer failure on a
business day, or (ii) multiple failures on a business day that, taken
together, do not exceed the largest provisional net credit.
    Maturity payment procedures were designed to limit credit,
liquidity, and operational risk for DTC and Participants in the MMI
program. In an effort to further mitigate these risks, DTC is proposing
the following changes to current processing associated with (1) the
LPNC control and (2) limiting intraday MMI reversals under specified
conditions:
(1) Increase Withholding From One to Two LPNCs
    DTC is proposing to change the current LPNC risk management control
in order to increase withholding from one to two largest provisional
credits (on an acronym basis). DTC believes this will provide increased
risk protection in the event of transaction reversals due to multiple
issuer defaults or a single issuer default with two or more MMI
programs.
    DTC has conducted a simulation analysis to measure the impact to
IPAs and custodians/dealers of an increase in LPNC controls from one to
two on settlement blockage \7\ intraday during peak processing periods.
DTC analyzed the blockage level for both the IPAs and custodians/
dealers as separate segments since each react to the additional
blockage in different ways. DTC believes the results of the simulation
analysis indicated that there will be no material change in settlement
blockage.
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    \7\ Settlement blockage refers to transactions that cannot be
completed due to a receiver's net debit cap or collateral monitor
controls.
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(2) Eliminate Intraday Reversals When MMI Issuances Exceed Maturity
Obligations

    DTC is also proposing to modify its Rules as they relate to the
refusal to pay process. As planned, DTC will not process a reversal of
a transaction initiated by an IPA when issuances of MMIs in an acronym
exceed, in dollar value, the Maturity Obligations of MMIs in the same
acronym on the same day. In such instances, DTC will not process a
reversal of the transaction because the IPA would have no reason to
exercise the refusal to pay for that acronym on that settlement day. As
a result, because the LPNC control is designed to protect against
transaction reversals, at the point in time when issuances of MMIs in
an acronym exceed, in dollar value, the Maturity Obligations of the
MMIs in the same acronym on that day, DTC proposes not to apply the
LPNC control with respect to the affected acronym.
Anticipated Effect on and Management of Risk
    DTC believes that the proposed changes will mitigate the systemic
risk associated with MMI transaction reversals due to an IPA refusal to
pay instruction by increasing withholding from one to two largest
provisional credits (on an acronym basis). DTC believes that this will
provide increased risk protection in the event of transaction reversals
due to multiple issuer defaults or a single issuer default with two or
more MMI programs. By

mitigating DTC's and the financial systems exposure to this systemic
risk, DTC believes that the proposed change will contribute to the goal
of financial stability in the event of a default, and is consistent
with the CPSS-IOSCO Recommendations for Securities Settlement Systems
\8\ applicable to DTC.
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    \8\ Principles for Financial Market Infrastructures of the
Committee on Payment and Settlement Systems and the Technical
Committee of the International Organization of Securities
Commissions (``CPSS-IOSCO'') (April 2012), available at http://www.bis.org/publ/cpss101a.pdf.
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    DTC has discussed this proposal with various industry groups,
including the Participants that transact in MMIs, none of whom
objected, according to DTC. According to DTC, the Participants
understand that the elimination of intraday reversals when issuances
exceed Maturity Obligations will result in no material change in
settlement blockage and will mitigate systemic risk as a whole. DTC
believes the proposed changes should promote settlement finality by
precluding reversals for those issuances.

(B) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants, or Others

    The subject proposal regarding MMIs was developed in consultation
with various industry organizations. Written comments relating to the
proposed changes contained in the advance notice have not yet been
solicited or received. DTC will notify the Commission of any written
comments received by DTC.

III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

    The clearing agency may implement the proposed change pursuant to
Section 806(e)(1)(G) of the Clearing Supervision Act \9\ if it has not
received an objection to the proposed change within 60 days of the
later of (i) the date that the Commission received the advance notice
or (ii) the date the Commission receives any further information it
requested for consideration of the notice. The clearing agency shall
not implement the proposed change if the Commission has any objection
to the proposed change.
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    \9\ 12 U.S.C. 5465(e)(1)(G).
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    The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing the clearing agency with prompt written notice
of the extension. A proposed change may be implemented in less than 60
days from the date of receipt of the advance notice, or the date the
Commission receives any further information it requested, if the
Commission notifies the clearing agency in writing that it does not
object to the proposed change and authorizes the clearing agency to
implement the proposed change on an earlier date, subject to any
conditions imposed by the Commission. The clearing agency shall post
notice on its Web site of proposed changes that are implemented.
    The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.\10\
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    \10\ DTC also filed the proposals contained in this advance
notice as a proposed rule change under Section 19(b)(1) of the Act
and Rule 19b-4 thereunder. 15 U.S.C. 78s(b)(1); 17 CFR 240.19b-4.
Pursuant to Section 19(b)(2) of the Act, within 45 days of the date
of publication of the proposed rule change in the Federal Register
or within such longer period up to 90 days if the Commission
designates or the self-regulatory organization consents the
Commission will either: (i) By order approve or disapprove the
proposed rule change or (ii) institute proceedings to determine
whether the proposed rule change should be disapproved. 15 U.S.C.
78s(b)(2)(A). See Release No. 34-68548 (December 28, 2012), 78 FR
795 (January 4, 2013).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml ); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-DTC-2012-810 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2012-810. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all written
statements with respect to the advance notice that are filed with the
Commission, and all written communications relating to the advance
notice between the Commission and any person, other than those that may
be withheld from the public in accordance with the provisions of 5
U.S.C. 552, will be available for Web site viewing and printing in the
Commission's Public Reference Room, 100 F Street NE., Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings also will be available for inspection
and copying at the principal office of DTC and on DTC's Web site at
http://dtcc.com/downloads/legal/rule_filings/2012/dtc/Advance_Notice_SR_2012_810.pdf. 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-DTC-2012-810 and should be submitted on or before February 15, 2013.

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01484 Filed 1-24-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 239 (Wednesday, December 12, 2012)]
[Notices]
[Pages 74037-74039]
[FR Doc No: 2012-29964]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68375; File No. SR-Phlx-2012-135]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Singly Listed Options

December 6, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that, on November 30, 2012 NASDAQ OMX PHLX LLC (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend certain Singly Listed Options \3\
Transaction Charges in Section III of the Pricing Schedule.\4\ The
Exchange is also proposing a technical amendment to its Pricing
Schedule. While changes to the Pricing Schedule pursuant to this
proposal are effective upon filing, the Exchange has designated the
proposed amendment to be operative on December 3, 2012.
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    \3\ For purposes of this filing, a Singly Listed Option means an
option that is only listed on the Exchange and is not listed by any
other national securities exchange.
    \4\ Currently, Singly Listed Options include options overlying
currencies, equities, ETFs, ETNs, indexes and HOLDRs not listed on
another exchange. The following symbols are also assessed the fees
in Section III for Singly Listed Options: SOX, HGX and OSX. The
Exchange receives an overnight file from The Options Clearing
Corporation, the Data Distribution Service feed, which provides the
Exchange a list of options which are Singly and Multiply Listed. The
Exchange provides its members with a symbol directory that indicates
whether a security is Singly or Multiply Listed. This information,
which is available on the exchange's Web site, is updated daily. In
the event that a Singly Listed Option becomes Multiply Listed, the
option would be assessed the fees in Section II of the Pricing
Schedule.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXfilings, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to amend Section III of
the Exchange's Pricing Schedule to increase various options transaction
charges in Singly Listed Options in order to recoup increased costs
associated with Singly Listed Options as compared to Multiply Listed
Options.\5\
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    \5\ Multiply Listed Options overlying equities, ETFs, ETNs,
indexes as well as BKX, RUT, MNX and NDX would continue to be
subject to the fees in Section II of the Pricing Schedule. For
purposes of this filing, a Multiply Listed Option means an option
that is listed on more than one exchange.
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    Today, the Exchange assesses Customers, Specialists \6\ and Market
Makers \7\ a $0.35 per contract options transaction charge for Singly
Listed Options. The Customer fee will remain unchanged. The Specialist
and Market Maker fees will be increased to $0.40 per contract in Singly
Listed Options. Today, the Exchange assesses Professionals,\8\ Firms
and Broker-

Dealers a $0.45 per contract options transaction charge in Singly
Listed Options. These fees will be increased to $0.60 per contract.
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    \6\ A ``Specialist'' is an Exchange member who is registered as
an options specialist pursuant to Rule 1020(a).
    \7\ A ``Market Maker'' includes Registered Options Traders
(``ROTs'') (Rule 1014(b)(i) and (ii)), which include Streaming Quote
Traders (``SQTs'') (See Rule 1014(b)(ii)(A)) and Remote Streaming
Quote Traders (``RSQTs'') (See Rule 1014(b)(ii)(B)).
    \8\ The term ``Professional'' means any 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). See Rule
1000(b)(14).
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    The Exchange is not proposing to amend other transaction fees in
Section III of the Pricing Schedule. Also, the Exchange proposes to
eliminate the term ``HOLDRs'' from its Pricing Schedule as this product
is no longer traded on the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \9\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \10\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members and other persons using its
facilities. The Exchange believes that increasing the Professional,
Specialist, Market Maker, Firm and Broker-Dealer options transaction
charges is reasonable because the Exchange is seeking to recoup the
operational costs for Singly Listed Options, which costs are higher
than those for Multiply Listed Options.\11\ Also, the Exchange believes
the fees are reasonable because the proposed fees are within the range
of similar fees assessed at other exchanges.\12\
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ By way of example, in analyzing an obvious error, the
Exchange would have additional data points available in establishing
a theoretical price for a Multiply Listed Option as compared to a
Singly Listed Option, which requires additional analysis and
administrative time to comply with Exchange rules to resolve an
obvious error.
    \12\ Chicago Board Options Exchange, Incorporated (``CBOE'')
assesses an $0.80 per contract fee to Customers, Broker-Dealers,
Non-Trading Permit Holder Market Makers and Professional and
Voluntary Professional market participants for SPX Range Options
(SRO) transactions, a proprietary index, in addition to a surcharge
fee. SPX refers to options on the Standard & Poor's 500 Index. See
CBOE's Fees Schedule. In addition, NASDAQ Options Market LLC
(``NOM'') assesses Non-Penny Pilot Fees for Removing Liquidity
ranging from $0.82 to $0.89 per contract depending on the market
participant. See Chapter XV, Section 2. of NOM's Rules. The Exchange
also assess a Broker-Dealer an electronic options transaction charge
(non-Penny Pilot) of $0.60 per contract for transactions in Multiply
Listed Options. See Section II of the Exchange's Pricing Schedule.
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    The Exchange believes that increasing the Professional, Specialist,
Market Maker, Firm and Broker-Dealer options transaction charges is
equitable and not unfairly discriminatory because the pricing will be
comparable among similar categories of market participants, as is the
case today. Professionals, Firms and Broker-Dealers, will all be
assessed the same rates ($0.60 per contract) and Customers, Specialists
and Market Makers will continue to be assessed lower rates as compared
to other market participants. Customer order flow is assessed the
lowest fee because incentivizing members to continue to offer Customer
trading opportunities in Singly Listed Options benefits all market
participants through increased liquidity. The Exchange notes that
Specialists and Market Makers are assessed lower options transaction
charges as compared to other market participants, except Customers,
because they have burdensome quoting obligations \13\ to the market
which do not apply to Customers, Professionals, Firms and Broker-
Dealers. The proposed differentiation as between Customers, Specialists
and Market Makers as compared to Professionals, Firms and Broker-
Dealers recognizes the differing contributions made to the liquidity
and trading environment on the Exchange by these market participants.
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    \13\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
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    The Exchange believes that removing the term ``HOLDRs'' from the
Pricing Schedule is reasonable, equitable and not unfairly
discriminatory because the product is no longer traded on the Exchange
and for clarity the term is being removed.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes its fees
for Singly Listed Options products remain competitive with other fees
at other options exchanges.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\14\ 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.
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    \14\ 15 U.S.C. 78s(b)(3)(A)(ii).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2012-135 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2012-135. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-

2012-135 and should be submitted on or before January 2, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29964 Filed 12-11-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)]
[Notices]
[Pages 66094-66097]
[FR Doc No: 2015-27350]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76230; File No. SR-EDGX-2015-49]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
20.6, Nullification and Adjustment of Options Transactions Including
Obvious Errors

October 22, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 20, 2015, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') 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. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.

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

    The Exchange filed a proposal for the Exchange's equity options
platform (``EDGX Options'') to extend the pilot program that suspends
certain obvious error provisions of Rule 20.6 during limit up-limit
down states in securities that underlie options traded on the Exchange.
    The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    Earlier this year, the Exchange received approval of rules
governing the trading of equity options on EDGX Options, including Rule
20.6 related to the adjustment and nullification of transactions that
occur on EDGX Options.\5\ Interpretation and Policy .01 to Rule 20.6 is
designed to address certain issues related to the Plan to Address
Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS
under the Act (the ``Limit Up-Limit Down Plan'' or the ``Plan'').\6\
Specifically, pursuant to a pilot program set forth in Interpretation
and Policy .01 to Rule 20.6, the Exchange excludes from certain
provisions of Rule 20.6 transactions executed during a ``Limit

State'' or ``Straddle State,'' as such terms are defined in the Plan.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 75650 (August 7,
2015), 80 FR 48600 (August 13, 2015) (SR-EDGX-2015-18).
    \6\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release'').
---------------------------------------------------------------------------

    The purpose of this filing is to extend the effectiveness of the
pilot program of Interpretation and Policy .01 of Rule 20.6 to coincide
with the pilot period for the Limit Up-Limit Down Plan, including any
extensions to the pilot period for the Plan. The Exchange also proposes
to amend a cross-reference contained within Interpretation and Policy
.01, as described below. The Exchange notes that trading on EDGX
Options has not yet commenced. However, the Exchange anticipates
launching EDGX Options in the near future and wishes to update its
rules in the interim in anticipation of such launch.
    The Exchange believes the benefits to market participants from
Interpretation and Policy .01 should continue on a pilot basis. The
Exchange continues to believe that adding certainty to the execution of
orders in Limit or Straddle States will encourage market participants
to continue to provide liquidity to the Exchange, and, thus, promote a
fair and orderly market during these periods. Barring this provision,
the obvious error provisions of Rule 20.6 would likely apply in many
instances during Limit States and Straddle States. The Exchange
believes that continuing the pilot will protect against any
unanticipated consequences in the options markets during a Limit State
or Straddle State. Thus, the Exchange believes that the protections of
the current rule should continue while the industry gains further
experience operating the Plan. Rather than extending the pilot program
to a specific date, the Exchange proposes to extend the pilot to
coincide with the operation of the Plan, which is also a pilot
program.\7\
---------------------------------------------------------------------------

    \7\ Currently, the pilot period for the Plan is proposed to be
extended to April 22, 2016. See Securities Exchange Act Release No.
75917 (September 14, 2015), 80 FR 56515 (September 18, 2015).
---------------------------------------------------------------------------

    The Exchange represents that it will conduct its own analysis
concerning the elimination of the Obvious Error and Catastrophic Error
provisions during Limit and Straddle States and agrees to provide the
Commission with relevant data to assess the impact of this proposed
rule change. As part of its analysis, the Exchange will evaluate (1)
the options market quality during Limit and Straddle States, (2) assess
the character of incoming order flow and transactions during Limit and
Straddle States, and (3) review any complaints from Members and their
customers concerning executions during Limit and Straddle States. The
Exchange also agrees to provide to the Commission data requested to
evaluate the impact of the inapplicability of the Obvious Error and
Catastrophic Error provisions, including data relevant to assessing the
various analyses noted above.
    In connection with this proposal, each month the Exchange will
provide to the Commission and the public a dataset containing the data
for each Straddle State and Limit State in NMS Stocks underlying
options traded on the Exchange, limited to those option classes that
have at least one (1) trade on the Exchange during a Straddle State or
Limit State. For each of those option classes affected, each data
record will contain the following information:
     Stock symbol, option symbol, time at the start of the
Straddle or Limit State, an indicator for whether it is a Straddle or
Limit State.
     For activity on the Exchange:
     Executed volume, time-weighted quoted bid-ask spread,
time-weighted average quoted depth at the bid, time-weighted average
quoted depth at the offer;
     high execution price, low execution price;
     number of trades for which a request for review for error
was received during Straddle and Limit States;
     an indicator variable for whether those options outlined
above have a price change exceeding 30% during the underlying stock's
Limit or Straddle State compared to the last available option price as
reported by OPRA before the start of the Limit or Straddle State (1 if
observe 30% and 0 otherwise). Another indicator variable for whether
the option price within five minutes of the underlying stock leaving
the Limit or Straddle state (or halt if applicable) is 30% away from
the price before the start of the Limit or Straddle State.
    In addition, the Exchange shall provide to the Commission and the
public assessments relating to the impact of the operation of the
Obvious Error rules during Limit and Straddle States as follows: (1)
Evaluate the statistical and economic impact of Limit and Straddle
States on liquidity and market quality in the options markets; and (2)
Assess whether the lack of Obvious Error rules in effect during the
Straddle and Limit States are problematic. The Exchange agrees to
provide the analysis and data to the Commission to help evaluate the
impact of the pilot program no later than five months prior to the
pilot expiration, including any extensions. If the Plan extension is
approved, the next data assessment will be due on December 18, 2015.
    As noted above, pursuant to the pilot program, the Exchange
excludes from certain provisions of Rule 20.6 transactions executed
during a Limit State or Straddle State, as such terms are defined in
the Plan. The Exchange, however, retains authority to review
transactions on an Official's own motion pursuant to sub-paragraph
(c)(3) of Rule 20.6 and to bust or adjust transactions pursuant to
provisions governing Significant Market Events, as defined in the Rule,
trading halts, erroneous prints and quotes in the underlying security,
and in connection with stop and stop limit orders that have been
triggered by an erroneous execution. The Exchange believes that these
safeguards will provide the Exchange with the flexibility to act when
necessary and appropriate to nullify or adjust a transaction, while
also providing market participants with certainty that, under normal
circumstances, the trades they affect with quotes and/or orders having
limit prices will stand irrespective of subsequent moves in the
underlying security. The Exchange proposes to extend the authority to
nullify transactions pursuant to paragraph (k) even in the event of a
Limit State or Straddle State for the underlying security, thereby
excluding such provision from the pilot program. The Exchange notes
that other options exchanges that have a provision governing erroneous
trades occurring from disruptions and/or malfunctions of Exchange
systems have also excluded such provision from the pilot program.\8\
---------------------------------------------------------------------------

    \8\ See, e.g., NYSE MKT Rule 975NY, Interpretation and Policy
.03, which excludes paragraph (l) of Rule 975NY from the pilot
program; see also, CBOE Rule 6.25, Interpretation and Policy .01,
which excludes Interpretation and Policy .05 from the pilot program.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\9\ In particular, the
proposal is consistent with Section 6(b)(5) of the Act \10\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system. Additionally, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \11\
requirement that

the rules of an exchange not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange further believes that it is necessary
and appropriate in the interest of promoting fair and orderly markets
to exclude transactions executed during a Limit or Straddle State from
certain aspects of Rule 20.6. The Exchange believes the application of
the current rule will be impracticable given the lack of a reliable
national best bid or offer in the options market during Limit States
and Straddle States, and that the resulting actions (i.e., nullified
trades or adjusted prices) may not be appropriate given market
conditions. Extension of this pilot to coincide with the pilot period
for the Limit Up-Limit Down Plan would ensure that limit orders that
are filled during a Limit or Straddle State would have certainty of
execution in a manner that promotes just and equitable principles of
trade, removes impediments to, and perfects the mechanism of a free and
open market and a national market system. Thus, the Exchange believes
that the protections of the pilot should continue while the industry
gains further experience operating the Plan. The Exchange also believes
it is necessary and appropriate in the interest of promoting fair and
orderly markets to retain authority to nullify erroneous trades
occurring from disruptions and/or malfunctions of Exchange systems
without regard to whether the underlying security was in a Limit State
or Straddle State. As noted above, this will ensure consistency with
the rules of other options exchanges.\12\
---------------------------------------------------------------------------

    \12\ See supra note 7.
---------------------------------------------------------------------------

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. Specifically, the Exchange
believes that, by extending the expiration of the pilot, the proposed
rule change will allow for further analysis of the pilot and a
determination of how the pilot shall be structured in the future. In
doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6)(iii) thereunder.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will allow the obvious error pilot program to continue
uninterrupted while the industry gains further experience operating
under the Plan, and avoid any investor confusion that could result from
a temporary interruption in the pilot program. For this reason, the
Commission designates the proposed rule change to be operative upon
filing.\15\
---------------------------------------------------------------------------

    \15\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-EDGX-2015-49 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-EDGX-2015-49. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing 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-EDGX-2015-49, and should be
submitted on or before November 18, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-27350 Filed 10-27-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63849-63851]
[FR Doc No: 2018-26892]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC18-137-000.
    Applicants: Vermont Transco LLC.
    Description: Response to October 9, 2018 Deficiency Letter of
Vermont Transco LLC.
    Filed Date: 10/24/18.
    Accession Number: 20181024-5167.
    Comments Due: 5 p.m. ET 12/13/18.

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG19-29-000.
    Applicants: Crocker Wind Farm, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Crocker Wind Farm, LLC.
    Filed Date: 12/3/18.
    Accession Number: 20181203-5142.
    Comments Due: 5 p.m. ET 12/24/18.

    Docket Numbers: EG19-30-000.
    Applicants: Wheelabrator Concord Company, L.P.
    Description: Self-Certification of Exempt Wholesale Generator
Status of Wheelabrator Concord Company, L.P.
    Filed Date: 12/3/18.
    Accession Number: 20181203-5236.
    Comments Due: 5 p.m. ET 12/24/18.

    Docket Numbers: EG19-31-000.
    Applicants: Vermillion Power, L.L.C.
    Description: Self-Certification of EG or FC of Vermillion Power,
L.L.C.
    Filed Date: 12/3/18.
    Accession Number: 20181203-5265.
    Comments Due: 5 p.m. ET 12/24/18.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER12-162-021; ER11-2044-026; ER13-1266-018; ER15-
2211-015.
    Applicants: Bishop Hill Energy II LLC, CalEnergy, LLC, MidAmerican
Energy Company, MidAmerican Energy Services, LLC.
    Description: Notice of Non-Material Change in Status of the
Berkshire Hathaway Central Parties.
    Filed Date: 12/3/18.
    Accession Number: 20181203-5088.
    Comments Due: 5 p.m. ET 12/24/18.

    Docket Numbers: ER19-117-001.
    Applicants: Innovative Solar 54, LLC.
    Description: Tariff Amendment: amendment to 1 to be effective 12/9/
2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5005.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-118-001.
    Applicants: Innovative Solar 67, LLC.
    Description: Tariff Amendment: amendment to 1 to be effective 12/6/
2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5007.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-396-001.
    Applicants: AES Shady Point, LLC.
    Description: Tariff Amendment: AES Shady Point Errata to MBR Tariff
to be effective 11/27/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5001.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-486-000.
    Applicants: California Independent System Operator Corporation.
    Description: Sec.  205(d) Rate Filing: 2018-12-04 Mesquite Solar 5
LGIA to be effective 12/3/2018.
    Filed Date: 12/4/18.
    Accession Number: 20181204-5141.
    Comments Due: 5 p.m. ET 12/26/18.

    Docket Numbers: ER19-487-000.
    Applicants: GridLiance West LLC.
    Description: Sec.  205(d) Rate Filing: GLW Certificate of
Concurrence update to be effective 11/10/2018.
    Filed Date: 12/4/18.
    Accession Number: 20181204-5143.
    Comments Due: 5 p.m. ET 12/26/18.

    Docket Numbers: ER19-488-000.
    Applicants: Idaho Power Company.
    Description: Sec.  205(d) Rate Filing: Housekeeping Clarifications
and Revisions to OATT to be effective 2/4/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5000.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-489-000.
    Applicants: South Carolina Electric & Gas Company.
    Description: Sec.  205(d) Rate Filing: McCormick CPW NITSA to be
effective 1/1/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5002.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-490-000.
    Applicants: PacifiCorp.
    Description: Sec.  205(d) Rate Filing: BPA Agmt to Replace BPA CB
1L1 at Malin to be effective 2/4/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5003.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-491-000.
    Applicants: Midcontinent Independent System Operator, Inc., Otter
Tail Power Company.
    Description: Sec.  205(d) Rate Filing: 2018-12-06_SA 3020 OTP-OTP
1st Revised E&P (J510) to be effective 11/27/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5032.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-492-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Tariff Cancellation: Notice of Cancellation of SA No.
4795; Queue No. AC2-139 to be effective 1/11/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5067.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-493-000.
    Applicants: Midcontinent Independent System Operator, Inc., Otter
Tail Power Company.
    Description: Sec.  205(d) Rate Filing: 2018-12-06_SA 3219 Flying
Cow Wind-OTP E&P (J493 J510) to be effective 12/1/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5120.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-494-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1628R14 Western Farmers
Electric Cooperative NITSA NOA to be effective 12/1/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5146.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-495-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Tariff Cancellation: Notice of Cancellation of SA No.
4732; Queue No. AC1-202 to be effective 1/11/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5153.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-496-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) Rate Filing: LGIA Rabbitbrush Solar
Project SA No. 214 to be effective 2/5/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5163.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-497-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Amendment to WMPA, Service
Agreement No. 4054, Queue No. Z2-030 to be effective 11/25/2014.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5175.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-498-000.
    Applicants: California Independent System Operator Corporation.
    Description: Tariff Cancellation: 2018-12-06 Notice of Cancellation
EIM Implementation Agreement with Puget Sound to be effective 2/5/2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5229.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-499-000.
    Applicants: PacifiCorp.
    Description: Sec.  205(d) Rate Filing: Invenergy Solar E&P
Agreement to be effective 11/19/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5230.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-500-000.
    Applicants: Baltimore Gas and Electric Company, PJM
Interconnection, L.L.C.
    Description: eTariff filing per 1450: BGE submits revisions to
OATT, Att. H-2A re: Tax Cuts and Jobs Act in EL18-64 to be effective
10/1/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5232.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-501-000.
    Applicants: California Independent System Operator Corporation.
    Description: Tariff Cancellation: 2018-12-06 Notice of Cancellation
EIM Implement. Agrmnt.--Arizona Public Service to be effective 2/5/
2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5233.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-502-000.
    Applicants: Alabama Power Company.
    Description: Sec.  205(d) Rate Filing: Sempra Solar Development
(Timberland Solar) LGIA Filing to be effective 11/28/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5234.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-503-000.
    Applicants: Pacific Gas and Electric Company.

    Description: Tariff Cancellation: Notice of Termination of Proxima
Solar E&P Agreement to be effective 12/3/2018.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5237.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-504-000.
    Applicants: Southern California Edison Company.
    Description: Tariff Cancellation: Notice of Cancellation
Distribution Service Agreement Decade Energy, LLC to be effective 11/
27/2017.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5251.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-506-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Amendment to ISA No. 3198;
Queue No. T157 to be effective 1/16/2012.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5269.
    Comments Due: 5 p.m. ET 12/27/18.

    Docket Numbers: ER19-507-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) Rate Filing: 2018-12-06_Revisions to
Attachment FF re Cure Period for Recertification to be effective 2/6/
2019.
    Filed Date: 12/6/18.
    Accession Number: 20181206-5280.
    Comments Due: 5 p.m. ET 12/27/18.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: December 6, 2018.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2018-26892 Filed 12-11-18; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: May 18, 2010 (Volume 75, Number 95)]
[Notices]
[Page 27770]
[DOCID:fr18my10-48]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 13710-000]

Lock+ Hydro Friends Fund VIII; Notice of Preliminary Permit
Application Accepted for Filing and Soliciting Comments, Motions To
Intervene, and Competing Applications

May 11, 2010.
    On April 13, 2010 Lock+ Hydro Friends Fund VIII filed an
application for a preliminary permit, pursuant to section 4(f) of the
Federal Power Act, proposing to study the feasibility of the Domage
Project, located on the Mississippi River, in Lincoln County, Missouri
and Calhoun County, Illinois. The sole purpose of a preliminary permit,
if issued, is to grant the permit holder priority to file a license
application during the permit term. A preliminary permit does not
authorize the permit holder to perform any land-disturbing activities
or otherwise enter upon lands or waters owned by others without the
owners' express permission.
    The proposed project would consist of: (1) One lock frame module of
ten hydropower turbines, which will be installed in a single row; (2) a
new gate; (3) a proposed 4.5-mile-long, 69-kilovolt transmission line;
(4) flow control door assemblies; and (5) appurtenant facilities. The
proposed Domage Project would have an average annual generation of
52.705 gigawatt-hours.
    Applicant Contact: Wayne F. Krouse, Chairman & CEO, Hydro Green
Energy, LLC, 5090 Richmond Ave., 390, Houston, Texas, 77056.
    FERC Contact: Bryan Roden-Reynolds at<PHONE_NUMBER>, or via e-mail
at<EMAIL_ADDRESS>    The deadline for filing comments, motions to intervene, competing
applications (without notices of intent), or notices of intent to file
competing applications is 60 days from the issuance of this notice.
Competing applications and notices of intent must meet the requirements
of 18 CFR 4.36. Comments, motions to intervene, notices of intent, and
competing applications may be filed electronically via the Internet.
See 18 CFR 385.2001(a)(1)(iii) and the instructions on the Commission's
Web site (http://www.ferc.gov/docs-filing/ferconline.asp), under the
``eFiling'' link. For a simpler method of submitting text only
comments, click on ``Quick Comment.'' For assistance, please contact
FERC Online Support at<EMAIL_ADDRESS>call toll-free at
(866) 208-3676; or, for TTY, contact<PHONE_NUMBER>. Although the
Commission strongly encourages electronic filing, documents may also be
paper-filed. To paper-file, mail an original and eight copies of the
correspondence to: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.
    More information about this project, including a copy of the
application, can be viewed or printed on the Commission's ``eLibrary''
link at http://www.ferc.gov/docs-filing/elibrary.asp. Enter the docket
number (P-13710) in the docket number field to access the document. For
assistance, contact FERC Online Support.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-11789 Filed 5-17-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 76 (Thursday, April 19, 2018)]
[Notices]
[Pages 17449-17450]
[FR Doc No: 2018-08222]

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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2012-0017]

Reports of Injuries to Employees Operating Mechanical Power
Presses; Extension of the Office of Management and Budget's (OMB)
Approval of an Information Collection (Paperwork) Requirements

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Request for public comments.

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

SUMMARY: OSHA solicits public comments concerning its proposal to
extend OMB approval of the information collection requirement contained
in the Standard on Reports of Injuries to Employees Operating
Mechanical Power Presses.

DATES: Comments must be submitted (postmarked, sent, or received) by
June 18, 2018.

ADDRESSES:
    Electronically: You may submit comments and attachments
electronically at http://www.regulations.gov, which is the Federal
eRulemaking Portal. Follow the instructions online for submitting
comments.
    Facsimile: If your comments, including attachments, are not longer
than 10 pages you may fax them to the OSHA Docket Office at (202) 693-
1648.
    Mail, hand delivery, express mail, messenger, or courier service:
When using this method, you must submit a copy of your comments and
attachments to the OSHA Docket Office, Docket No. OSHA-2012-0017,
Occupational Safety and Health Administration, U.S. Department of
Labor, Room N-3653, 200 Constitution Avenue NW, Washington, DC 20210.
Deliveries (hand, express mail, messenger, and courier service) are
accepted during the Docket Office's normal business hours, 10:00 a.m.
to 3:00 p.m., ET.
    Instructions: All submissions must include the Agency name and the
OSHA docket number (OSHA-2012-0017) for the Information Collection
Request (ICR). All comments, including any personal information you
provide, are placed in the public docket without change, and may be
made available online at http://www.regulations.gov. For further
information on submitting comments, see the ``Public Participation''
heading in the section of this notice titled SUPPLEMENTARY INFORMATION.
    Docket: To read or download comments or other material in the
docket, go to http://www.regulations.gov or the OSHA Docket Office at
the above address. All documents in the docket (including this Federal
Register notice) are listed in the http://www.regulations.gov index;
however, some information (e.g., copyrighted material) is not publicly
available to read or download from the website. All submissions,
including copyrighted material, are available for inspection and
copying at the OSHA Docket Office. You may also contact Theda Kenney at
the number below to obtain a copy of the ICR.

FOR FURTHER INFORMATION CONTACT: Theda Kenney or Charles McCormick,
Directorate of Standards and Guidance, OSHA, U.S. Department of Labor,
telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    The Department of Labor, as part of its continuing effort to reduce
paperwork and respondent (i.e., employer) burden, conducts a
preclearance consultation program to provide the public with an
opportunity to comment on proposed and continuing information
collection requirements in accordance with the Paperwork Reduction Act
of 1995 (PRA-95) (44 U.S.C. 3506(c)(2)(A)). This program ensures that
information is in the desired format, reporting burden (time and costs)
is minimal, collection instruments are clearly understood, and OSHA's
estimate of the information collection burden is accurate. The
Occupational Safety and Health Act of 1970 (the OSH Act) (29 U.S.C. 651
et seq.) authorizes information collection by employers as necessary or
appropriate for enforcement of the OSH Act or for developing
information regarding the causes and prevention of occupational
injuries, illnesses, and accidents (29 U.S.C. 657). The OSH Act also
requires that OSHA obtain such information with minimum burden upon
employers, especially those operating small businesses, and to reduce
to the maximum extent feasible unnecessary duplication of efforts in
obtaining information (29 U.S.C. 657).
    In the event that a worker is injured while operating a mechanical
power press, 29 CFR 1910.217(g) requires the employer to report, within
30 days of the occurrence, all point-of-operation injuries to the
operators or other employees to either the Director of the Directorate
of Standards and Guidance at OSHA, U.S. Department of Labor,
Washington, DC 20210 or electronically at http://www.osha.gov/pls/oshaweb/mechanical.html; or to the State Agency administering a plan
approved by the Assistant Secretary of Labor for Occupational Safety
and Health. This information includes the employer's and worker's
name(s), workplace address and location; injury sustained; task being
performed when the injury occurred; number of operators required for
the operation and the number of operators provided with controls and
safeguards; cause of the incident; type of clutch, safeguard(s), and
feeding method(s) used; and means used to actuate the press stroke.
These reports are a source of up-to-date information on power press
machines. Specifically, this information identifies the equipment used
and conditions associated with these injuries.
    OSHA's Mechanical Power Press injury reporting requirement at
1910.217(g) is a separate injury reporting requirement from OSHA's
severe injury reporting requirements which are part of 1904.39. Under
1904.39, employers must, within 24 hours, report to OSHA any work-
related injury requiring hospitalization as well as work-related
incidents resulting in an amputation or loss of an eye. The Mechanical
Power Press Standard requires employers to report all injuries
involving operation of a power press to OSHA or an appropriate state
agency within 30 days. Injuries that must be reported under 1910.217(g)
include those that are also reportable under 1904.39 as well as those
that are recordable under the recordkeeping standard (29 CFR 1904).

II. Special Issues for Comment

    OSHA has a particular interest in comments on the following issues:
     Whether the proposed information collection requirements
are necessary for the proper performance of the Agency's functions,
including whether the information is useful;
     The accuracy of OSHA's estimate of the burden (time and
costs) of the information collection requirements, including the
validity of the methodology and assumptions used;
     The quality, utility, and clarity of the information
collected; and
     Ways to minimize the burden on employers who must comply.
For example, by using automated or other technological information
collection and transmission techniques.

III. Proposed Actions

    OSHA is requesting that OMB extend its approval of the information
collection requirement contained in the Standard on Reports of Injuries
to Employees Operating Mechanical Power Presses (29 CFR 1910.217(g)).
There are no adjustments or program changes

associated with this ICR. The Agency requests that it retain its
previous estimate of 400 burden hours.
    Type of Review: Extension of a currently approved collection.
    Title: Reports of Injuries to Employees Operating Mechanical Power
Presses (29 CFR 1910.217(g)).
    OMB Control Number: 1218-0070.
    Affected Public: Business or other for-profits.
    Number of Respondents: 1,200.
    Frequency of Responses: On occasion.
    Average Time per Response: Various.
    Estimated Total Burden Hours: 400.
    Estimated Cost (Operation and Maintenance): $0.

IV. Public Participation--Submission of Comments on This Notice and
Internet Access to Comments and Submissions

    You may submit comments in response to this document as follows:
(1) electronically at http://www.regulations.gov, which is the Federal
eRulemaking Portal; (2) by facsimile (fax); or (3) by hard copy. All
comments, attachments, and other material must identify the Agency name
and the OSHA docket number for the ICR (Docket No. OSHA-2012-0017). You
may supplement electronic submissions by uploading document files
electronically. If you wish to mail additional materials in reference
to an electronic or facsimile submission, you must submit them to the
OSHA Docket Office (see the section of this notice titled ADDRESSES).
The additional materials must clearly identify your electronic comments
by your name, date, and the docket number so the Agency can attach them
to your comments.
    Because of security procedures, the use of regular mail may cause a
significant delay in the receipt of comments. For information about
security procedures concerning the delivery of materials by hand,
express delivery, messenger, or courier service, please contact the
OSHA Docket Office at<PHONE_NUMBER>, TTY<PHONE_NUMBER>.
    Comments and submissions are posted without change at http://www.regulations.gov. Therefore, OSHA cautions commenters about
submitting personal information such as their social security number
and date of birth. Although all submissions are listed in the http://www.regulations.gov index, some information (e.g., copyrighted
material) is not publicly available to read or download from this
website.
    All submissions, including copyrighted material, are available for
inspection and copying at the OSHA Docket Office. Information on using
the http://www.regulations.gov website to submit comments and access
the docket is available at the website's ``User Tips'' link. Contact
the OSHA Docket Office for information about materials not available
from the website, and for assistance in using the internet to locate
docket submissions.

V. Authority and Signature

    Loren Sweatt, Deputy Assistant Secretary of Labor for Occupational
Safety and Health, directed the preparation of this notice. The
authority for this notice is the Paperwork Reduction Act of 1995 (44
U.S.C. 3506 et seq.) and Secretary of Labor's Order No. 1-2012 (77 FR
3912).

    Signed at Washington, DC, on April 13, 2018.
Loren Sweatt,
Deputy Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. 2018-08222 Filed 4-18-18; 8:45 am]
 BILLING CODE 4510-26-P


[Federal Register Volume 81, Number 200 (Monday, October 17, 2016)]
[Notices]
[Pages 71513-71514]
[FR Doc No: 2016-25003]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2010-N-0598]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Current Good Manufacturing Practice Regulations for
Type A Medicated Articles

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing an
opportunity for public comment on the proposed collection of certain
information by the Agency. Under the Paperwork Reduction Act of 1995
(the PRA), Federal Agencies are required to publish notice in the
Federal Register concerning each proposed collection of information,
including each proposed extension of an existing collection of
information, and to allow 60 days for public comment in response to the
notice. This notice solicits comments on the recordkeeping requirements
for manufacturers of Type A medicated articles.

DATES: Submit either electronic or written comments on the collection
of information by December 16, 2016.

ADDRESSES: You may submit comments as follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to http://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on http://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand Delivery/Courier (for written/paper
submissions): Division of Dockets Management (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Division of
Dockets Management, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
[FDA-2010-N-0598] for ``[Agency Information Collection Activities;
Proposed Collection; Comment Request; Current Good Manufacturing
Practice Regulations for Type A Medicated Articles].'' Received
comments will be placed in the docket and, except for those submitted
as ``Confidential Submissions,'' publicly viewable at http://www.regulations.gov or at the Division of Dockets Management between 9
a.m. and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on http://www.regulations.gov.
Submit both copies to the Division of Dockets Management. If you do not
wish your name and contact information to be made publicly available,
you can provide this information on the cover sheet and not in the body
of your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: http://www.fda.gov/

regulatoryinformation/dockets/default.htm.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to http://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Division of Dockets Management, 5630 Fishers
Lane, Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, Three White Flint North, 10A63, 11601
Landsdown St., North Bethesda, MD 20852<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
Agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes Agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A))
requires Federal Agencies to provide a 60-day notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information,
before submitting the collection to OMB for approval. To comply with
this requirement, FDA is publishing notice of the proposed collection
of information set forth in this document.
    With respect to the following collection of information, FDA
invites comments on these topics: (1) Whether the proposed collection
of information is necessary for the proper performance of FDA's
functions, including whether the information will have practical
utility; (2) the accuracy of FDA's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques, when
appropriate, and other forms of information technology.

Current Good Manufacturing Practice Regulations for Type A Medicated
Articles--21 CFR Part 226 OMB Control Number 0910-0154--Extension

    Under section 501 of the Federal Food, Drug, and Cosmetic Act (the
FD&C Act), FDA has the statutory authority to issue current good
manufacturing practice (cGMP) regulations for drugs, including Type A
medicated articles. A Type A medicated article is a feed product
containing a concentrated drug diluted with a feed carrier substance. A
Type A medicated article is intended solely for use in the manufacture
of another Type A medicated article or a Type B or Type C medicated
feed. Medicated feeds are administered to animals for the prevention,
cure, mitigation, or treatment of disease or for growth promotion and
feed efficiency.
    Statutory requirements for cGMPs for Type A medicated articles have
been codified in part 226 (21 CFR part 226). Type A medicated articles
which are not manufactured in accordance with these regulations are
considered adulterated under section 501(a)(2)(B) of the FD&C Act (21
U.S.C. 351(a)(2)(B). Under part 226, a manufacturer is required to
establish, maintain, and retain records for Type A medicated articles,
including records to document procedures required under the
manufacturing process to assure that proper quality control is
maintained. Such records would, for example, contain information
concerning receipt and inventory of drug components, batch production,
laboratory assay results (i.e., batch and stability testing), and
product distribution.
    This information is needed so that FDA can monitor drug usage and
possible misformulation of Type A medicated articles. The information
could also prove useful to FDA in investigating product defects when a
drug is recalled. In addition, FDA will use the cGMP criteria in part
226 to determine whether or not the systems used by manufacturers of
Type A medicated articles are adequate to assure that their medicated
articles meet the requirements of the FD&C Act as to safety and also
meet the article's claimed identity, strength, quality, and purity, as
required by section 501(a)(2)(B) of the FD&C Act. The respondents for
Type A medicated articles are pharmaceutical firms that manufacture
both human and veterinary drugs, those firms that produce only
veterinary drugs, and commercial feed mills.
    FDA estimates the burden of this collection of information as
follows:

                               Table 1--Estimated Annual Recordkeeping Burden \1\
----------------------------------------------------------------------------------------------------------------
                                             Number of
     21 CFR  section         Number of      records per    Total annual     Average burden per      Total hours
                           recordkeepers   recordkeeper       records          recordkeeping
----------------------------------------------------------------------------------------------------------------
226.42..................              65             260          16,900  0.75 (45 minutes).....          12,675
226.58..................              65             260          16,900  1.75 (1 hour, 45                29,575
                                                                           minutes).
226.80..................              65             260          16,900  0.75 (45 minutes).....          12,675
226.102.................              65             260          16,900  1.75 (1 hour, 45                29,575
                                                                           minutes).
226.110.................              65             260          16,900  .025 (15 minutes).....           4,225
226.115.................              65              10             650  .5 (30 minutes).......             325
                                                                                ---------------
    Total...............  ..............  ..............  ..............  ......................          89,050
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

    The estimate of time required for record preparation and
maintenance is based on previous Agency communications with industry.
Other information needed to calculate the total burden hours (i.e.,
manufacturing sites, number of Type A medicated articles being
manufactured, etc.) are derived from Agency records and experience.

    Dated: October 11, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016-25003 Filed 10-14-16; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register: April 13, 2010 (Volume 75, Number 70)]
[Notices]
[Page 18934-18935]
[DOCID:fr13ap10-104]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61852; File No. SR-CBOE-2010-034]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Temporary Membership Status and Interim Trading
Permit Access Fees

April 6, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 29, 2010, the
Chicago Board Options Exchange, Incorporated (``CBOE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the CBOE. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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

    CBOE proposes to adjust (i) the monthly access fee for persons
granted temporary CBOE membership status (``Temporary Members'')
pursuant to Interpretation and Policy .02 under CBOE Rule 3.19 (``Rule
3.19.02'') and (ii) the monthly access fee for Interim Trading Permit
(``ITP'') holders under CBOE Rule 3.27. The text of the proposed rule
change is available on the Exchange's Web site (http://www.cboe.org/
Legal/), at the Exchange's Office of the Secretary, 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, CBOE 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 CBOE 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 current access fee for Temporary Members under Rule 3.19.02 \2\
and the current access fee for ITP holders under Rule 3.27 \3\ are both
$4,875 per month. Both access fees are currently set at the indicative
lease rate \4\ for March 2010. The Exchange proposes to adjust both
access fees effective at the beginning of April 2010. Specifically,
instead of setting these access fees at the indicative lease rate, the
Exchange proposes to revise both the Temporary Member access fee and
the ITP access fee to be $7,500 per month commencing on April 1, 2010.
---------------------------------------------------------------------------

    \2\ See Securities Exchange Act Release No. 56458 (September 18,
2007), 72 FR 54309 (September 24, 2007) (SR-CBOE-2007-107) for a
description of the Temporary Membership status under Rule 3.19.02.
    \3\ See Securities Exchange Act Release No. 58178 (July 17,
2008), 73 FR 42634 (July 22, 2008) (SR-CBOE-2008-40) for a
description of the Interim Trading Permits under Rule 3.27.
    \4\ The indicative lease rate is defined under Rule 3.27(b) as
the highest clearing firm floating monthly rate of the CBOE Clearing
Members that assist in facilitating at least 10% of the CBOE
transferable membership leases. Rule 3.27(b) defines the clearing
firm floating monthly rate as the floating monthly rate that a
Clearing Member designates, in connection with transferable
membership leases that the Clearing Member assisted in facilitating,
for leases that utilize that monthly rate. The concepts of an
indicative lease rate and of a clearing firm floating month rate
were previously utilized in the CBOE rule filings that set and
adjusted the Temporary Member access fee. Both concepts are also
codified in Rule 3.27(b) in relation to ITPs.
---------------------------------------------------------------------------

    Because Temporary Members and ITP holders possess a feature that
does not exist in the typical lease arrangement for a CBOE transferable
membership, the Exchange believes that it is equitable to assess
Temporary Members and ITP holders an access fee that is higher than the
indicative lease rate.\5\ Specifically, under CBOE Rules 3.19 and 3.27,
access to the Exchange by Temporary Members and ITP holders may only be
terminated at their own direction except in the following limited
circumstances: (i) As a result of regulatory action against the
Temporary Member or ITP holder, (ii) in the event of a demutualization,
or (iii) through a rule change approved by the Commission. On the other
hand, the typical lease arrangement for a transferable membership can
be terminated by the lessor without cause upon a month's notice to the
lessee. As a result, Temporary Members and ITP holders enjoy more
certainty than lessees with respect to their trading access to the
Exchange.
---------------------------------------------------------------------------

    \5\ See, e.g., Securities Exchange Act Release No. 58200 (July
21, 2008), 73 FR 43805 (July 28, 2008) (SR-CBOE-2008-77).
---------------------------------------------------------------------------

    CBOE also believes that the proposed access fees are reasonable
when compared to the average indicative lease rate over the last six
months and to indicative lease rate levels during the past year.
Specifically, the average indicative lease rate between October 2009
and March 2010 was $8,493, which is in excess of the proposed $7,500
rate. Additionally, the indicative lease rate was above $10,000 between
June 2009 and November 2009, peaking at $11,900 in October 2010. Also,
in as recently as January 2010, the indicative lease rate exceeded the
proposed $7,500 when the indicative lease rate was $7,928. Accordingly,
the Exchange considers $7,500 to be a reasonable rate for monthly
access to the Exchange.
    Each of the proposed access fees will remain in effect until such
time either that the Exchange submits a further rule filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \6\ to modify the applicable access
fee or the applicable status (i.e., the Temporary Membership status or
the ITP status) is terminated. Accordingly, the Exchange may further
adjust the proposed access fees in the future if the Exchange
determines that it would be appropriate to do so.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    The procedural provisions of the CBOE Fee Schedule related to the
assessment of each proposed access fee are not proposed to be changed
and will remain the same as the current procedural provisions relating
to the assessment of that access fee.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(4)

of the Act,\8\ in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
persons using its facilities. CBOE believes that the proposed access
fees are reasonable when compared to the average indicative lease rate
over the last six months and to indicative lease rate levels during the
past year for the reasons described above. In addition, CBOE believes
that the proposed access fees are equitable in that they apply
uniformly to all Temporary Members and ITP holders.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    CBOE 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 or received with respect to the
proposed rule change.

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

    Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(2)
of Rule 19b-4 \10\ thereunder. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2010-034 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2010-034. 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such 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 No. SR-CBOE-2010-034 and should be
submitted on or before May 4, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8364 Filed 4-12-10; 8:45 am]
BILLING CODE 8011-01-P