81 FR 48864 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Affiliated Entities

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 143 (July 26, 2016)

Page Range		48864-48869
FR Document		2016-17586
Federal Register, Volume 81 Issue 143 (Tuesday, July 26, 2016)
[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48864-48869]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17586]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78375; File No. SR-BX-2016-034]


Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to 
Affiliated Entities

July 20, 2016.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on July 8, 2016, NASDAQ BX, Inc. (``BX'' 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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[[Page 48865]]

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

    The Exchange proposes to amend the Exchange's transaction fees at 
chapter XV to permit certain affiliated market participants to 
aggregate eligible volume to all pricing in chapter XV, section 2(1) 
for which a volume threshold or volume percentage is required to obtain 
the pricing.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqbx.cchwallstreet.com/, at the principal office 
of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to permit certain 
affiliated market participants to aggregate volume in chapter XV, 
section 2(1) for which a volume threshold or volume percentage is 
required to obtain the pricing and qualify for various pricing 
incentives. The Exchange's proposal is intended to incentivize 
Participants to submit for execution a greater amount of order flow on 
BX to obtain more advantageous pricing.
Affiliated Entity
    The Exchange proposes to add three definitions to chapter XV of BX 
Options Rules. The Exchange proposes to define the terms ``Appointed 
MM,'' ``Appointed OFP'' and ``Affiliated Entity.'' The Exchange 
proposes to define the term ``Appointed MM'' as a BX Options Market 
Maker \3\ who has been appointed by an Order Flow Provider (``OFP'') 
for purposes of qualifying as an Affiliated Entity. An OFP means is a 
Participant that submits orders, as agent or principal, to the 
Exchange.\4\ The Exchange proposes to define the term ``Appointed OFP'' 
as an OFP who has been appointed by a BX Options Market Maker for 
purposes of qualifying as an Affiliated Entity. The Exchange proposes 
to define the term ``Affiliated Entity'' as a relationship between an 
Appointed MM and an Appointed OFP for purposes of aggregating eligible 
volume for pricing in chapter XV, section 2(1) for which a volume 
threshold or volume percentage is required to qualify for higher 
rebates or lower fees. In order to become an Affiliated Entity, BX 
Options Market Makers and OFPs will be required to send an email to the 
Exchange to appoint their counterpart, at least 3 business days prior 
to the last day of the month to qualify for the next month.\5\ For 
example, with this proposal, market participants may submit emails to 
the Exchange to become Affiliated Entities eligible to qualify for 
discounted pricing starting August 1, 2016, provided the emails are 
sent at least 3 business days prior to the first business day of August 
2016. The Exchange will acknowledge receipt of the emails and specify 
the date the Affiliated Entity is eligible for applicable pricing in 
chapter XV, section 2(1). Each Affiliated Entity relationship will 
commence on the 1st of a month and may not be terminated prior to the 
end of any month. An Affiliated Entity relationship will terminate 
after a one (1) year period, unless either party terminates earlier in 
writing by sending an email to the Exchange at least 3 business days 
prior to the last day of the month to terminate for the next month. 
Affiliated Entity relationships must be renewed annually. For example, 
if the start date of the Affiliated Entity relationship is August 1, 
2016, the counterparties may determine to commence a new relationship 
as of August 1, 2017 by sending two new emails by July 27, 2017 (3 
business days prior to the end of the month). Participants under Common 
Ownership \6\ may not qualify as a counterparty comprising an 
Affiliated Entity. Each Participant may qualify for only one (1) 
Affiliated Entity relationship at any given time.
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    \3\ The term ``BX Options Market Maker'' or (``M'') is a 
Participant that has registered as a Market Maker on BX Options 
pursuant to chapter VII, Section 2, and must also remain in good 
standing pursuant to chapter VII, section 4. In order to receive 
Market Maker pricing in all securities, the Participant must be 
registered as a BX Options Market Maker in at least one security.
    \4\ Market Makers submitting quotes to the Exchange shall not be 
considered Appointed OFPs for the purpose of becoming an Affiliated 
Entity.
    \5\ The Exchange shall issue an Options Trader Alert specifying 
the email address and details required to apply to become an 
Affiliated Entity. Once the Exchange receives both emails, from the 
Affiliated [sic] MM and the Affiliated [sic] OFP, the Exchange will 
send a confirming email with the date of approval of the one (1) 
year term.
    \6\ The term ``Common Ownership'' means Participants under 75% 
common ownership or control. See chapter XV. Participants that are 
under 75% common ownership or control shall be considered under 
Common Ownership for purposes of pricing.
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    As proposed, an Affiliated Entity shall be eligible to aggregate 
their volume for purposes of qualifying for certain pricing in chapter 
XV, section 2(1) for which a volume threshold or volume percentage is 
required to obtain a higher rebate or lower fee. With this proposal, 
Affiliated Entities will be eligible to tier pricing in section 2(1) in 
both Penny and Non-Penny Pilot Options.\7\
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    \7\ See BX Rules at Section 2(1) of chapter XV.
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Chapter XV, Section 2(1)--Penny Pilot and Non-Penny Pilot Options 
Pricing
    Currently, the Exchange offers Customers,\8\ when trading with Non-
Customers,\9\ BX Options Market Makers or Firms \10\ the ability to 
obtain higher Penny Pilot Options Rebates to Add Liquidity in Penny 
Pilot Options Tiers Schedule which exclude Select Symbols (``non-Select 
Symbols'') with a tiered pricing model.\11\ Also, the Exchange offers 
Customers, when trading with Customers, Non-Customers, BX Options 
Market Makers or Firms the ability to obtain higher Penny Pilot Options 
Rebates to Remove Liquidity in non-Select Symbols with a tiered pricing 
model.\12\ Finally, the Exchange offers BX Options Market Makers, when 
trading with Customers the ability to obtain lower Penny Pilot Options 
Fees to Remove Liquidity in non-Select Symbols with a tiered pricing 
model. \13\ This pricing is reflected at chapter XV, section 2(1) and 
would be subject to aggregation by Affiliated Entities.
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    \8\ The term ``Customer'' or (``C'') applies to any transaction 
that is identified by a Participant for clearing in the Customer 
range at The Options Clearing Corporation which is not for the 
account of broker or dealer or for the account of a ``Professional'' 
(as that term is defined in chapter I, section 1(a)(48)).
    \9\ A Non-Customer includes a Professional, Broker-Dealer and 
Non-BX Options Market Maker.
    \10\ The term ``Firm'' or (``F'') applies to any transaction 
that is identified by a Participant for clearing in the Firm range 
at The Options Clearing Corporation.
    \11\ The Penny Pilot Options Rebates to Add Liquidity in non-
Select Symbols ranges from $0.00 to $0.20 per contract.
    \12\ The Penny Pilot Options Rebates to Remove Liquidity in non-
Select Symbols ranges from $0.00 to $0.35 per contract.
    \13\ Penny Pilot Options Fees to Remove Liquidity in non-Select 
Symbols ranges from $0.30 to $0.39 per contract.
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    The Exchange offers Customers, when trading with Non-Customers, BX

[[Page 48866]]

Options Market Makers or Firms, the ability to obtain higher Penny 
Pilot Options Rebates to Add Liquidity in Select Symbols \14\ with a 
tiered pricing model.\15\ The Exchange offers BX Options Market Makers, 
when trading with Customers, the ability to obtain a lower Penny Pilot 
Options Fees to Add Liquidity in Select Symbols with a tiered pricing 
model.\16\ The Exchange offers Customers, when trading with Non-
Customers, BX Options Market Makers, Customers or Firms, the ability to 
obtain higher Penny Pilot Options Rebates to Remove Liquidity in Select 
Symbols with a tiered pricing model.\17\ The Exchange offers BX Options 
Market Makers, when trading with Customers, the ability to obtain a 
lower Penny Pilot Options Fees to Remove Liquidity in Select Symbols 
with a tiered pricing model.\18\ Finally, the Exchange offers BX 
Options Market Makers, when trading with Non-Customers, BX Options 
Market Makers or Firms, the ability to obtain lower Fees to Add 
Liquidity in Select Symbols with a tiered pricing model.\19\ This 
pricing is reflected at chapter XV, section 2(1) and would be subject 
to aggregation by Affiliated Entities.
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    \14\ The Select Symbols are: ASHR, DIA, DXJ, EEM, EFA, EWJ, EWT, 
EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR, 
KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, TLT, 
TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, 
XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT. See BX chapter XV, 
section 2(1) pricing.
    \15\ Penny Pilot Options Rebates to Add Liquidity in Select 
Symbols ranges from $0.00 to $0.25 per contract.
    \16\ Penny Pilot Options Fees to Add Liquidity in Select Symbols 
ranges from $0.29 to $0.44 per contract.
    \17\ Penny Pilot Options Rebates to Remove Liquidity in Select 
Symbols ranges from $0.00 to $0.37 per contract.
    \18\ Penny Pilot Options Fees to Remove Liquidity in Select 
Symbols ranges from $0.25 to $0.42 per contract.
    \19\ Penny Pilot Options Fees to Add Liquidity in Select Symbols 
ranges from $0.00 to $0.14 per contract.
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    Currently, the Exchange offers Customers, when trading with Non-
Customers, BX Options Market Makers or Firms, the ability to obtain 
higher Non-Penny Pilot Options Rebates to Add Liquidity with a tiered 
pricing model.\20\ Also, the Exchange offers BX Options Market Makers, 
when trading with Customers, the ability to obtain lower Non-Penny 
Pilot Options Fees to Remove Liquidity with a tiered pricing model.\21\ 
This pricing is reflected at chapter XV, section 2(1) and would be 
subject to aggregation by Affiliated Entities.
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    \20\ Non-Penny Pilot Options Rebates to Add Liquidity ranges 
from $0.00 to $0.20 per contract.
    \21\ Non-Penny Pilot Options Fees to Remove Liquidity ranges 
from $0.60 to $0.89 per contract.
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    The pricing noted herein demonstrates instances where the tiered 
pricing would provide a higher rebate or lower fee. In those cases 
where the pricing is the same for all tiers, the aggregation would not 
yield a higher rebate or lower fee.
    Currently, the Exchange also offers Customers, when trading with 
Non-Customers, BX Options Market Makers, Customers or Firms, the 
ability to obtain higher Rebates to Remove Liquidity in SPY Options in 
a tiered pricing model.\22\ This pricing is reflected at chapter XV, 
section 2(1) and would be subject to aggregation by Affiliated 
Entities.
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    \22\ The SPY rebate ranges from $0.10 to $0.51 per contract.
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    The Exchange's proposal would incentivize certain Participants, who 
are not by definition under Common Ownership, to enter into an 
Affiliated Entity relationship for the purpose of aggregating Customer 
volume to qualify for reduced Penny Pilot Options and non-Penny Pilot 
Options fees and higher Penny Pilot Options and non-Penny Pilot Options 
rebates. With respect to the pricing and the Affiliated Entity 
relationship, Appointed MMs would receive lower fees and Appointed OFPs 
would receive higher rebates, as applicable with this aggregated 
pricing.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing 
Schedule is consistent with section 6(b) of the Act,\23\ in general, 
and furthers the objectives of section 6(b)(4) and (b)(5) of the 
Act,\24\ in particular, in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among members and 
issuers and other persons using any facility or system which the 
Exchange operates or controls, and is not designed to permit unfair 
discrimination between customers, issuers, brokers, or dealers.
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    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(4), (5).
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    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, while adopting a series of steps to improve the current market 
model, the Commission highlighted the importance of market forces in 
determining prices and SRO revenues and, also, recognized that current 
regulation of the market system ``has been remarkably successful in 
promoting market competition in its broader forms that are most 
important to investors and listed companies.'' \25\
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    \25\ Securities Exchange Act Release No. 51808 (June 29, 2005), 
70 FR 37496 at 37499 (File No. S7-10-04) (``Regulation NMS Adopting 
Release'').
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    Likewise, in NetCoalition v. Securities and Exchange Commission 
\26\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of 
a market-based approach in evaluating the fairness of market data fees 
against a challenge claiming that Congress mandated a cost-based 
approach.\27\ As the court emphasized, the Commission ``intended in 
Regulation NMS that `market forces, rather than regulatory 
requirements' play a role in determining the market data . . . to be 
made available to investors and at what cost.'' \28\
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    \26\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \27\ See id. at 534-535.
    \28\ See id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is 
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market 
system, buyers and sellers of securities, and the broker-dealers that 
act as their order-routing agents, have a wide range of choices of 
where to route orders for execution'; [and] `no exchange can afford to 
take its market share percentages for granted' because `no exchange 
possesses a monopoly, regulatory or otherwise, in the execution of 
order flow from broker dealers'. . . .'' \29\ Although the court and 
the SEC were discussing the cash equities markets, the Exchange 
believes that these views apply with equal force to the options 
markets.
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    \29\ See id. at 539 (quoting Securities Exchange Act Commission 
at Release No. 59039 (December 2, 2008), 73 FR 74770 at 74782-74783 
(December 9, 2008) (SR-NYSEArca-2006-21)).
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    The Exchange's proposal to amend chapter XV, section 2 to add the 
definitions of ``Appointed MM,'' ``Appointed OFP'' and ``Affiliated 
Entity'' is reasonable because the Exchange is proposing to identify 
the applicable market participants that may qualify to aggregate volume 
as an Affiliated Entity. Further the Exchange seeks to make clear the 
manner in which Participants may participate on the Exchange as 
Affiliated Entities by setting timeframes for communicating agreements 
among market participants and terms of early termination. The Exchange 
also clearly states that no Participant under Common Ownership may 
become a counterparty to an Affiliated Entity. Any Participant who 
meets the definition of Common Ownership shall not be eligible to 
become an Affiliated Entity. The Exchange believes that these terms are 
reasonable because they would allow

[[Page 48867]]

Participants to elect to become a counterparty to an Affiliated Entity, 
provided they are not under Common Ownership.
    The Exchange's proposal to amend chapter XV, section 2 to add the 
definitions of ``Appointed MM,'' ``Appointed OFP'' and ``Affiliated 
Entity'' is equitable and not unreasonably discriminatory because all 
Participants that are not under Common Ownership by definition may 
choose to enter into an Affiliated Entity relationship.
Chapter XV, Section 2(1)--Penny Pilot and Non-Penny Pilot Options 
Pricing
    The Exchange's proposal to permit Affiliated Entities to aggregate 
volume for purposes of qualifying Appointed OFPs for higher Penny Pilot 
and Non-Penny Pilot Options, including SPY, rebates \30\ and qualifying 
Appointed MMs for lower fees \31\ is reasonable because it will attract 
additional Customer and non-Customer order flow to the Exchange. 
Customer liquidity benefits all market participants by providing more 
trading opportunities, which attracts BX Options Market Makers. An 
increase in the activity of these market participants in turn 
facilitates tighter spreads, which may cause an additional 
corresponding increase in order flow from other market participants. 
Also, the Exchange is incentivizing Participants to send non-Customer 
order flow to BX, which order flow will benefit all Participants 
because they may interact with the liquidity. Market participants 
directing order flow as OFPs may be eligible to qualify for higher 
rebates with this proposal as a result of aggregating volume with an 
Appointed MM and thereby qualifying for higher rebates. Permitting 
Participants to affiliate for purposes of qualifying Appointed OFPs for 
higher rebates and qualifying Appointed MMs for lower fees may also 
encourage Affiliated Entities to incentivize each other to attract and 
seek to execute more volume on BX. In turn, market participants would 
benefit from the increased liquidity with which to interact and 
potentially tighter spreads on orders. Overall, incentivizing market 
participants with increased opportunities to earn higher rebates or 
lower fees may increase the quality of the liquidity available on BX.
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    \30\ The Exchange would permit Affiliated Entities to aggregate 
volume to obtain higher Penny Pilot Options Rebates to Add Liquidity 
in non-Select Symbols, Penny Pilot Options Rebates to Remove 
Liquidity in non-Select Symbols, Penny Pilot Options Rebates to Add 
Liquidity in Select Symbols, Penny Pilot Options Rebates to Remove 
Liquidity in Select Symbols and Non-Penny Pilot Options Rebates to 
Add Liquidity.
    \31\ The Exchange would permit Affiliated Entities to aggregate 
volume to obtain lower Penny Pilot Options Fees to Remove Liquidity 
in non-Select Symbols, Penny Pilot Options Fees to Add Liquidity in 
Select Symbols, Penny Pilot Options Fees to Remove Liquidity in 
Select Symbols, Penny Pilot Options Fees to Remove Liquidity in 
Select Symbols and Non-Penny Pilot Options Fees to Remove Liquidity.
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    The Exchange's proposal to permit Affiliated Entities to aggregate 
volume for purposes of qualifying Appointed OFPs for higher Penny Pilot 
and Non-Penny Pilot Options, including SPY, rebates and qualifying 
Appointed MMs for lower fees is equitable and not unfairly 
discriminatory because all BX Participants, other than those that meet 
the definition of Common Ownership, may elect to become an Affiliated 
Entity as either an Appointed MM or an Appointed OFP.\32\ Also, each BX 
Participant may participate in only one Affiliated Entity relationship 
at a given time, which imposes a measure of exclusivity among market 
participants, allowing each party to rely on the other's executed 
volume on BX to receive a corresponding benefit in terms of a higher 
rebate or lower fee. Any market participant that by definition is not 
under Common Ownership may elect to become a counterparty of an 
Affiliated Entity. Also, BX Options Market Makers are valuable market 
participants that provide liquidity in the marketplace and incur costs 
that other market participants do not incur. BX Options Market Makers 
are subject to burdensome quoting obligations \33\ to the market that 
do not apply to other market participants. Incentivizing these market 
participants to execute volume on BX may result in tighter spreads.
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    \32\ Both Participants must elect each other to qualify as an 
Affiliated Entity for one year. Participation is effected by an 
agreement of both parties. One party may elect to terminate the 
agreement at any time.
    \33\ Pursuant to BX Rules at chapter VII, section 5, entitled 
``Obligations of Market Makers,'' in registering as a market maker, 
an Options Participant commits himself to various obligations. 
Transactions of a BX Options Market Maker must constitute a course 
of dealings reasonably calculated to contribute to the maintenance 
of a fair and orderly market, and BX Options Market Makers should 
not make bids or offers or enter into transactions that are 
inconsistent with such course of dealings. Further, all BX Options 
Market Makers are designated as specialists on BX for all purposes 
under the Act or rules thereunder. See chapter VII, section 2.
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    The Exchange's proposal to exclude Participants that are under 
Common Ownership from qualifying as an Affiliated Entity is reasonable 
because Participants under Common Ownership may aggregate volume today 
for purposes of chapter XV, section 2(1) pricing.\34\ The Exchange's 
proposal to exclude Participants that by definition are under Common 
Ownership from qualifying as an Affiliated Entity is equitable and not 
unfairly discriminatory because the Exchange will apply all 
qualifications in a uniform manner when approving Affiliated Entities. 
Excluding Participants under Common Ownership from also qualifying as 
an Affiliated Entity is equitable and not unfairly discriminatory 
because they are able to aggregate volume today and qualify for higher 
rebates or lower fees.
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    \34\ See BX Rules at chapter XV for Common Ownership.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. Specifically, the Exchange does 
not believe that permitting Affiliated Entities to aggregate volume to 
qualify for certain rebates and reduced fees will impose any undue 
burden on competition, as discussed below.
    The Exchange operates in a highly competitive market in which many 
sophisticated and knowledgeable market participants can readily and do 
send order flow to competing exchanges if they deem fee levels or 
rebate incentives at a particular exchange to be excessive or 
inadequate. Additionally, new competitors have entered the market and 
still others are reportedly entering the market shortly. These market 
forces ensure that the Exchange's fees and rebates remain competitive 
with the fee structures at other trading platforms.
    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. In terms of inter-market 
competition, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with other exchanges and with 
alternative trading systems that have been exempted from compliance 
with the statutory standards applicable to exchanges. Because 
competitors are free to modify their own fees in response, and because 
market participants may readily adjust their order routing practices, 
the Exchange believes that the degree to which fee changes in this 
market may impose any

[[Page 48868]]

burden on competition is extremely limited.
    In sum, if the changes proposed herein are unattractive to market 
participants, it is likely that the Exchange will lose market share as 
a result. Accordingly, the Exchange does not believe that the proposed 
changes will impair the ability of members or competing order execution 
venues to maintain their competitive standing in the financial markets. 
In terms of inter-market competition, the Exchange notes that other 
options markets have similar incentives in place to attract volume to 
their markets.\35\
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    \35\ See NYSE MKT LLC's (``NYSE Amex'') pricing at NYSE Amex 
Options Fee Schedule). NYSE Amex permits aggregation of volume to 
qualify for the Amex Customer Engagement or ACE Program. See Bats 
BZX Exchange, Inc.'s (``BZX'') fee schedule. BZX permits aggregation 
of volume to qualify for tiered pricing. See the Chicago Board 
Options Exchange Incorporated (``CBOE'') Fees Schedule. CBOE permits 
aggregation of volume to qualify for credits available under an 
Affiliated Volume Plan or ``AVP.''
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    The Exchange's proposal to amend chapter XV, section 2 to add the 
definitions of ``Appointed MM,'' ``Appointed OFP'' and ``Affiliated 
Entity'' does not impose an undue burden on competition because these 
definitions apply to all Participants uniformly.
Chapter XV, Section 2(1)--Penny Pilot and Non-Penny Pilot Options 
Pricing
    In terms of intra-market competition, the Exchange does not believe 
that its proposal to permit counterparties of an Affiliated Entity to 
aggregate volume for purposes of qualifying Appointed OFPs for higher 
rebates, including SPY, and qualifying Appointed MMs for lower fees 
within chapter XV, section 2(1) imposes an undue burden on intra-market 
competition because all BX Participants, other than those under Common 
Ownership, may become an Affiliated Entity as either an Appointed MM or 
an Appointed OFP. Also, each BX Participant may participate in only one 
Affiliated Entity relationship at a given time, which imposes a measure 
of exclusivity among market participants, allowing each party to rely 
on the other's executed BX volume on BX to receive a corresponding 
benefit in terms of a higher rebate or lower fee. The Exchange will 
apply all qualifications in a uniform manner to all market participants 
that elect to become counterparties of an Affiliated Entity. Any market 
participant that by definition is a Participant under Common Ownership 
may not become a counterparty of an Affiliated Entity. Also, BX Options 
Market Makers are valuable market participants that provide liquidity 
in the marketplace and incur costs that other market participants do 
not incur. BX Options Market Makers are subject to burdensome quoting 
obligations \36\ to the market that do not apply to other market 
participants. Incentivizing these market participants to execute volume 
on BX may result in tighter spreads. An increase in the activity of 
these market participants in turn facilitates tighter spreads, which 
may cause an additional corresponding increase in order flow from other 
market participants. Appointed OFPs directing order flow to the 
Exchange may be eligible to qualify for a higher rebate and Appointed 
MMs may be eligible to qualify for lower fees, with this proposal, as a 
result of aggregating volume. Permitting Participants to affiliate for 
purposes of qualifying for chapter XV, section 2(1) higher rebates or 
lower fees may also encourage the counterparties that comprise the 
Affiliated Entities to incentivize each other to attract and seek to 
execute more volume on BX.
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    \36\ See note 33 above.
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    The Exchange's proposal to exclude Participants that are under 
Common Ownership from becoming an Affiliated Entity does not impose and 
[sic] undue burden on intra-market competition because Participants 
under Common Ownership may aggregate volume today for purposes of 
qualifying for higher rebates or lower fees.

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.\37\
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    \37\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BX-2016-034 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-BX-2016-034. 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-BX-2016-034 and 
should be submitted on or before August 16, 2016.


[[Page 48869]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\38\
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    \38\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17586 Filed 7-25-16; 8:45 am]
 BILLING CODE 8011-01-P
48864 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices

requirement would not be inconsistent Commission may designate, if with respect to the proposed rule
with the Exchange’s obligations under consistent with the protection of change that are filed with the
the Exchange Act to prevent fraudulent investors and the public interest, the Commission, and all written
or manipulative acts and practices proposed rule change has become communications relating to the
because Exchange member effective pursuant to Section 19(b)(3)(A) proposed rule change between the
organizations are subject to the same of the Act and Rule 19b–4(f)(6)(iii) Commission and any person, other than
supervisory requirements as FINRA thereunder. those that may be withheld from the
member firms, including an annual A proposed rule change filed under public in accordance with the
certification requirement regarding Rule 19b–4(f)(6) 29 normally does not provisions of 5 U.S.C. 552, will be
compliance and supervisory processes become operative prior to 30 days after available for Web site viewing and
set forth in Rule 3130. To the extent the the date of the filing. However, pursuant printing in the Commission’s Public
Exchange has proposed changes that to Rule 19b4(f)(6)(iii),30 the Commission Reference Room, 100 F Street NE.,
differ from the FINRA version of the may designate a shorter time if such Washington, DC 20549 on official
Exchange rules, such changes are action is consistent with the protection business days between the hours of
generally technical in nature and do not of investors and the public interest. 10:00 a.m. and 3:00 p.m. Copies of the
change the substance of the proposed At any time within 60 days of the filing also will be available for
rules. The Exchange also believes that filing of such proposed rule change, the inspection and copying at the principal
the proposed conforming changes will Commission summarily may office of the Exchange. All comments
update and add specificity to the temporarily suspend such rule change if received will be posted without change;
Exchange’s rules, which will promote it appears to the Commission that such the Commission does not edit personal
just and equitable principles of trade action is necessary or appropriate in the identifying information from
and help to protect investors. public interest, for the protection of submissions. You should submit only
investors, or otherwise in furtherance of information that you wish to make
B. Self-Regulatory Organization’s the purposes of the Act. If the
Statement on Burden on Competition available publicly. All submissions
Commission takes such action, the should refer to File Number SR–NYSE–
In accordance with Section 6(b)(8) of Commission shall institute proceedings 2016–50 and should be submitted on or
the Act,26 the Exchange does not believe under Section 19(b)(2)(B) 31 of the Act to before August 16, 2016.
that the proposed rule changes will determine whether the proposed rule
impose any burden on competition that change should be approved or For the Commission, by the Division of
is not necessary or appropriate in disapproved. Trading and Markets, pursuant to delegated
furtherance of the purposes of the Act. authority.32
The proposed rule changes are not IV. Solicitation of Comments Robert W. Errett,
intended to address competitive issues Interested persons are invited to Deputy Secretary.
but rather to achieve greater submit written data, views, and [FR Doc. 2016–17584 Filed 7–25–16; 8:45 am]
transparency and consistency between arguments concerning the foregoing,
BILLING CODE 8011–01–P
the Exchange’s rules and FINRA’s including whether the proposed rule
requirements concerning payments to change is consistent with the Act.
unregistered persons, the effect of Comments may be submitted by any of SECURITIES AND EXCHANGE
suspensions, revocations, cancellations, the following methods: COMMISSION
bars or other disqualifications, and Electronic Comments
research analyst annual attestation
requirements. • Use the Commission’s Internet [Release No. 34–78375; File No. SR–BX–
comment form (http://www.sec.gov/ 2016–034]
C. Self-Regulatory Organization’s rules/sro.shtml); or
Statement on Comments on the • Send an email to rule-comments@ Self-Regulatory Organizations;
Proposed Rule Change Received From sec.gov. Please include File Number SR– NASDAQ BX, Inc.; Notice of Filing and
Members, Participants, or Others NYSE–2016–50 on the subject line. Immediate Effectiveness of Proposed
No written comments were solicited Rule Change Relating to Affiliated
Paper Comments Entities
or received with respect to the proposed
rule change. • Send paper comments in triplicate
July 20, 2016.
to Brent J. Fields, Secretary, Securities
III. Date of Effectiveness of the and Exchange Commission, 100 F Street Pursuant to section 19(b)(1) of the
Proposed Rule Change and Timing for NE., Washington, DC 20549–1090. Securities Exchange Act of 1934
Commission Action All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
The Exchange has filed the proposed Number SR–NYSE–2016–50. This file notice is hereby given that on July 8,
rule change pursuant to Section number should be included on the 2016, NASDAQ BX, Inc. (‘‘BX’’ or
19(b)(3)(A)(iii) of the Act 27 and Rule subject line if email is used. To help the ‘‘Exchange’’) filed with the Securities
19b–4(f)(6) thereunder.28 Because the Commission process and review your and Exchange Commission (‘‘SEC’’ or
proposed rule change does not: (i) comments more efficiently, please use ‘‘Commission’’) the proposed rule
Significantly affect the protection of only one method. The Commission will change as described in Items I, II, and
investors or the public interest; (ii) post all comments on the Commission’s III, below, which Items have been
srobinson on DSK5SPTVN1PROD with NOTICES

impose any significant burden on Internet Web site (http://www.sec.gov/ prepared by the Exchange. The
competition; and (iii) become operative rules/sro.shtml). Copies of the Commission is publishing this notice to
prior to 30 days from the date on which submission, all subsequent solicit comments on the proposed rule
it was filed, or such shorter time as the amendments, all written statements change from interested persons.

26 15 U.S.C. 78f(b)(8). 29 17 CFR 240.19b–4(f)(6). 32 17 CFR 200.30–3(a)(12).
27 15 U.S.C. 78s(b)(3)(A)(iii). 30 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1).
28 17 CFR 240.19b–4(f)(6). 31 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.

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Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 48865

I. Self-Regulatory Organization’s been appointed by an Order Flow Common Ownership 6 may not qualify
Statement of the Terms of Substance of Provider (‘‘OFP’’) for purposes of as a counterparty comprising an
the Proposed Rule Change qualifying as an Affiliated Entity. An Affiliated Entity. Each Participant may
The Exchange proposes to amend the OFP means is a Participant that submits qualify for only one (1) Affiliated Entity
Exchange’s transaction fees at chapter orders, as agent or principal, to the relationship at any given time.
Exchange.4 The Exchange proposes to As proposed, an Affiliated Entity shall
XV to permit certain affiliated market
define the term ‘‘Appointed OFP’’ as an be eligible to aggregate their volume for
participants to aggregate eligible volume
OFP who has been appointed by a BX purposes of qualifying for certain
to all pricing in chapter XV, section 2(1)
Options Market Maker for purposes of pricing in chapter XV, section 2(1) for
for which a volume threshold or volume
qualifying as an Affiliated Entity. The which a volume threshold or volume
percentage is required to obtain the
Exchange proposes to define the term percentage is required to obtain a higher
pricing.
‘‘Affiliated Entity’’ as a relationship rebate or lower fee. With this proposal,
The text of the proposed rule change
between an Appointed MM and an Affiliated Entities will be eligible to tier
is available on the Exchange’s Web site
pricing in section 2(1) in both Penny
at http://nasdaqbx.cchwallstreet.com/, Appointed OFP for purposes of
and Non-Penny Pilot Options.7
at the principal office of the Exchange, aggregating eligible volume for pricing
and at the Commission’s Public in chapter XV, section 2(1) for which a Chapter XV, Section 2(1)—Penny Pilot
Reference Room. volume threshold or volume percentage and Non-Penny Pilot Options Pricing
II. Self-Regulatory Organization’s is required to qualify for higher rebates Currently, the Exchange offers
Statement of the Purpose of, and or lower fees. In order to become an Customers,8 when trading with Non-
Statutory Basis for, the Proposed Rule Affiliated Entity, BX Options Market Customers,9 BX Options Market Makers
Change Makers and OFPs will be required to or Firms 10 the ability to obtain higher
send an email to the Exchange to Penny Pilot Options Rebates to Add
In its filing with the Commission, the appoint their counterpart, at least 3 Liquidity in Penny Pilot Options Tiers
Exchange included statements business days prior to the last day of the Schedule which exclude Select Symbols
concerning the purpose of and basis for month to qualify for the next month.5 (‘‘non-Select Symbols’’) with a tiered
the proposed rule change and discussed For example, with this proposal, market pricing model.11 Also, the Exchange
any comments it received on the participants may submit emails to the offers Customers, when trading with
proposed rule change. The text of these Exchange to become Affiliated Entities Customers, Non-Customers, BX Options
statements may be examined at the eligible to qualify for discounted pricing Market Makers or Firms the ability to
places specified in Item IV below. The obtain higher Penny Pilot Options
starting August 1, 2016, provided the
Exchange has prepared summaries, set Rebates to Remove Liquidity in non-
emails are sent at least 3 business days
forth in sections A, B, and C below, of Select Symbols with a tiered pricing
prior to the first business day of August
the most significant aspects of such model.12 Finally, the Exchange offers
2016. The Exchange will acknowledge
statements. BX Options Market Makers, when
receipt of the emails and specify the
A. Self-Regulatory Organization’s date the Affiliated Entity is eligible for trading with Customers the ability to
Statement of the Purpose of, and applicable pricing in chapter XV, obtain lower Penny Pilot Options Fees
Statutory Basis for, the Proposed Rule section 2(1). Each Affiliated Entity to Remove Liquidity in non-Select
Change relationship will commence on the 1st Symbols with a tiered pricing model. 13
of a month and may not be terminated This pricing is reflected at chapter XV,
1. Purpose section 2(1) and would be subject to
prior to the end of any month. An
The purpose of the proposed rule Affiliated Entity relationship will aggregation by Affiliated Entities.
change is to permit certain affiliated The Exchange offers Customers, when
terminate after a one (1) year period, trading with Non-Customers, BX
market participants to aggregate volume unless either party terminates earlier in
in chapter XV, section 2(1) for which a writing by sending an email to the 6 The term ‘‘Common Ownership’’ means
volume threshold or volume percentage Exchange at least 3 business days prior Participants under 75% common ownership or
is required to obtain the pricing and to the last day of the month to terminate control. See chapter XV. Participants that are under
qualify for various pricing incentives. 75% common ownership or control shall be
for the next month. Affiliated Entity
The Exchange’s proposal is intended to considered under Common Ownership for purposes
relationships must be renewed of pricing.
incentivize Participants to submit for
annually. For example, if the start date 7 See BX Rules at Section 2(1) of chapter XV.
execution a greater amount of order flow
of the Affiliated Entity relationship is 8 The term ‘‘Customer’’ or (‘‘C’’) applies to any
on BX to obtain more advantageous transaction that is identified by a Participant for
August 1, 2016, the counterparties may
pricing. clearing in the Customer range at The Options
determine to commence a new Clearing Corporation which is not for the account
Affiliated Entity relationship as of August 1, 2017 by of broker or dealer or for the account of a
sending two new emails by July 27, ‘‘Professional’’ (as that term is defined in chapter I,
The Exchange proposes to add three section 1(a)(48)).
definitions to chapter XV of BX Options 2017 (3 business days prior to the end 9 A Non-Customer includes a Professional,
Rules. The Exchange proposes to define of the month). Participants under Broker-Dealer and Non-BX Options Market Maker.
the terms ‘‘Appointed MM,’’ 10 The term ‘‘Firm’’ or (‘‘F’’) applies to any

‘‘Appointed OFP’’ and ‘‘Affiliated Participant must be registered as a BX Options transaction that is identified by a Participant for
Market Maker in at least one security. clearing in the Firm range at The Options Clearing
Entity.’’ The Exchange proposes to 4 Market Makers submitting quotes to the Corporation.
srobinson on DSK5SPTVN1PROD with NOTICES

define the term ‘‘Appointed MM’’ as a Exchange shall not be considered Appointed OFPs 11 The Penny Pilot Options Rebates to Add
BX Options Market Maker 3 who has for the purpose of becoming an Affiliated Entity. Liquidity in non-Select Symbols ranges from $0.00
5 The Exchange shall issue an Options Trader to $0.20 per contract.
3 The term ‘‘BX Options Market Maker’’ or (‘‘M’’) 12 The Penny Pilot Options Rebates to Remove
Alert specifying the email address and details
is a Participant that has registered as a Market required to apply to become an Affiliated Entity. Liquidity in non-Select Symbols ranges from $0.00
Maker on BX Options pursuant to chapter VII, Once the Exchange receives both emails, from the to $0.35 per contract.
Section 2, and must also remain in good standing Affiliated [sic] MM and the Affiliated [sic] OFP, the 13 Penny Pilot Options Fees to Remove Liquidity

pursuant to chapter VII, section 4. In order to Exchange will send a confirming email with the in non-Select Symbols ranges from $0.30 to $0.39
receive Market Maker pricing in all securities, the date of approval of the one (1) year term. per contract.

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Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 48867

Participants to elect to become a turn, market participants would benefit exclude Participants that by definition
counterparty to an Affiliated Entity, from the increased liquidity with which are under Common Ownership from
provided they are not under Common to interact and potentially tighter qualifying as an Affiliated Entity is
Ownership. spreads on orders. Overall, incentivizing equitable and not unfairly
The Exchange’s proposal to amend market participants with increased discriminatory because the Exchange
chapter XV, section 2 to add the opportunities to earn higher rebates or will apply all qualifications in a
definitions of ‘‘Appointed MM,’’ lower fees may increase the quality of uniform manner when approving
‘‘Appointed OFP’’ and ‘‘Affiliated the liquidity available on BX. Affiliated Entities. Excluding
Entity’’ is equitable and not The Exchange’s proposal to permit Participants under Common Ownership
unreasonably discriminatory because all Affiliated Entities to aggregate volume from also qualifying as an Affiliated
Participants that are not under Common for purposes of qualifying Appointed Entity is equitable and not unfairly
Ownership by definition may choose to OFPs for higher Penny Pilot and Non- discriminatory because they are able to
enter into an Affiliated Entity Penny Pilot Options, including SPY, aggregate volume today and qualify for
relationship. rebates and qualifying Appointed MMs higher rebates or lower fees.
for lower fees is equitable and not
Chapter XV, Section 2(1)—Penny Pilot B. Self-Regulatory Organization’s
unfairly discriminatory because all BX
and Non-Penny Pilot Options Pricing Statement on Burden on Competition
Participants, other than those that meet
The Exchange’s proposal to permit the definition of Common Ownership, The Exchange does not believe that
Affiliated Entities to aggregate volume may elect to become an Affiliated Entity the proposed rule change will impose
for purposes of qualifying Appointed as either an Appointed MM or an any burden on competition not
OFPs for higher Penny Pilot and Non- Appointed OFP.32 Also, each BX necessary or appropriate in furtherance
Penny Pilot Options, including SPY, Participant may participate in only one of the purposes of the Act. Specifically,
rebates 30 and qualifying Appointed Affiliated Entity relationship at a given the Exchange does not believe that
MMs for lower fees 31 is reasonable time, which imposes a measure of permitting Affiliated Entities to
because it will attract additional exclusivity among market participants, aggregate volume to qualify for certain
Customer and non-Customer order flow allowing each party to rely on the rebates and reduced fees will impose
to the Exchange. Customer liquidity other’s executed volume on BX to any undue burden on competition, as
benefits all market participants by receive a corresponding benefit in terms discussed below.
providing more trading opportunities, of a higher rebate or lower fee. Any The Exchange operates in a highly
which attracts BX Options Market market participant that by definition is competitive market in which many
Makers. An increase in the activity of not under Common Ownership may sophisticated and knowledgeable
these market participants in turn elect to become a counterparty of an market participants can readily and do
facilitates tighter spreads, which may Affiliated Entity. Also, BX Options send order flow to competing exchanges
cause an additional corresponding Market Makers are valuable market if they deem fee levels or rebate
increase in order flow from other market participants that provide liquidity in the incentives at a particular exchange to be
participants. Also, the Exchange is marketplace and incur costs that other excessive or inadequate. Additionally,
incentivizing Participants to send non- market participants do not incur. BX new competitors have entered the
Customer order flow to BX, which order Options Market Makers are subject to market and still others are reportedly
flow will benefit all Participants burdensome quoting obligations 33 to entering the market shortly. These
because they may interact with the the market that do not apply to other market forces ensure that the Exchange’s
liquidity. Market participants directing market participants. Incentivizing these fees and rebates remain competitive
order flow as OFPs may be eligible to market participants to execute volume with the fee structures at other trading
qualify for higher rebates with this on BX may result in tighter spreads. platforms.
proposal as a result of aggregating The Exchange’s proposal to exclude The Exchange does not believe that
volume with an Appointed MM and Participants that are under Common the proposed rule change will impose
thereby qualifying for higher rebates. Ownership from qualifying as an any burden on competition not
Permitting Participants to affiliate for Affiliated Entity is reasonable because necessary or appropriate in furtherance
purposes of qualifying Appointed OFPs Participants under Common Ownership of the purposes of the Act. In terms of
for higher rebates and qualifying may aggregate volume today for inter-market competition, the Exchange
Appointed MMs for lower fees may also purposes of chapter XV, section 2(1) notes that it operates in a highly
encourage Affiliated Entities to pricing.34 The Exchange’s proposal to competitive market in which market
incentivize each other to attract and participants can readily favor competing
seek to execute more volume on BX. In 32 Both Participants must elect each other to venues if they deem fee levels at a
qualify as an Affiliated Entity for one year. particular venue to be excessive, or
Participation is effected by an agreement of both rebate opportunities available at other
30 The Exchange would permit Affiliated Entities
parties. One party may elect to terminate the
to aggregate volume to obtain higher Penny Pilot agreement at any time. venues to be more favorable. In such an
Options Rebates to Add Liquidity in non-Select 33 Pursuant to BX Rules at chapter VII, section 5, environment, the Exchange must
Symbols, Penny Pilot Options Rebates to Remove entitled ‘‘Obligations of Market Makers,’’ in continually adjust its fees to remain
Liquidity in non-Select Symbols, Penny Pilot registering as a market maker, an Options
Options Rebates to Add Liquidity in Select Participant commits himself to various obligations.
competitive with other exchanges and
Symbols, Penny Pilot Options Rebates to Remove Transactions of a BX Options Market Maker must with alternative trading systems that
Liquidity in Select Symbols and Non-Penny Pilot constitute a course of dealings reasonably have been exempted from compliance
Options Rebates to Add Liquidity. calculated to contribute to the maintenance of a fair with the statutory standards applicable
srobinson on DSK5SPTVN1PROD with NOTICES

31 The Exchange would permit Affiliated Entities and orderly market, and BX Options Market Makers
to aggregate volume to obtain lower Penny Pilot should not make bids or offers or enter into
to exchanges. Because competitors are
Options Fees to Remove Liquidity in non-Select transactions that are inconsistent with such course free to modify their own fees in
Symbols, Penny Pilot Options Fees to Add of dealings. Further, all BX Options Market Makers response, and because market
Liquidity in Select Symbols, Penny Pilot Options are designated as specialists on BX for all purposes participants may readily adjust their
Fees to Remove Liquidity in Select Symbols, Penny under the Act or rules thereunder. See chapter VII,
Pilot Options Fees to Remove Liquidity in Select section 2. order routing practices, the Exchange
Symbols and Non-Penny Pilot Options Fees to 34 See BX Rules at chapter XV for Common believes that the degree to which fee
Remove Liquidity. Ownership. changes in this market may impose any

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Document Created: 2018-02-08 08:00:35
Document Modified: 2018-02-08 08:00:35
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 48864