82 FR 14589 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 7170 (Nullification and Adjustment of Options Transactions) To Add IM-7170-4
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 53 (March 21, 2017)
Federal Register Volume 82, Issue 53 (March 21, 2017)
| Page Range | 14589-14594 | |
| FR Document | 2017-05497 |
[Federal Register Volume 82, Number 53 (Tuesday, March 21, 2017)] [Notices] [Pages 14589-14594] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05497] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80247; File No. SR-BOX-2017-08] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 7170 (Nullification and Adjustment of Options Transactions) To Add IM-7170-4 March 15, 2017. 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 March 3, 2017, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend BOX Rule 7170 (Nullification and Adjustment of Options Transactions) to add IM-7170-4. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room and also on the Exchange's Internet Web site at http://boxexchange.com. 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 self-regulatory organization 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 self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend BOX Rule 7170 (Nullification and Adjustment of Options Transactions) to add IM-7170-4. This is filing is based on a proposal recently submitted by Chicago Board Options Exchange, Incorporated (``CBOE'') and approved by the Commission.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 80040 (February 14, 2017), 82 FR 11248 (February 21, 2017) (Order Approving SR-CBOE- 2016-088). --------------------------------------------------------------------------- Last year, the Exchange and other options exchanges adopted a new, harmonized rule related to the adjustment and nullification of erroneous options transactions, including a specific provision related to coordination in connection with large-scale events involving erroneous options transactions.\4\ The Exchange believes that the changes the options exchanges implemented with the new, harmonized rule have led to increased transparency and finality with respect to the adjustment and nullification of erroneous options transactions. However, as part of the initial initiative, the Exchange and other options exchanges deferred a few specific matters for further discussion. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 74911 (May 8, 2015), 80 FR 27717 (May 14, 2015) (SR-BOX-2015-18) (the ``Initial Filing''). --------------------------------------------------------------------------- Specifically, the options exchanges have been working together to identify ways to improve the process related to the adjustment and nullification of erroneous options transactions as it relates to complex orders \5\ and stock-option orders. The goal of the process that the options exchanges have undertaken is to further harmonize rules related to the adjustment and nullification of erroneous options transactions. As described below, the Exchange believes that the changes the options exchanges and BOX have agreed to propose will provide transparency and finality with respect to the adjustment and nullification of erroneous complex order and stock-option order transactions. Particularly, the proposed changes seek to achieve consistent results for participants across U.S. options exchanges while maintaining a fair and orderly market, protecting investors and protecting the public interest. --------------------------------------------------------------------------- \5\ See Rule 7240(a)(5) (defining complex orders). --------------------------------------------------------------------------- The Proposed Rule is the culmination of this coordinated effort and reflects discussions by the options exchanges whereby the exchanges that offer complex orders and/or stock-option orders will universally adopt new provisions that the options exchanges collectively believe will improve the handling of erroneous options transactions that result from the execution of complex orders and stock-option orders.\6\ --------------------------------------------------------------------------- \6\ The Exchange notes that it does not offer stock-option orders and will not adopt the CBOE provisions around stock-option orders. --------------------------------------------------------------------------- The Exchange believes that the Proposed Rule supports an approach consistent with long-standing principles in the options industry under which the general policy is to adjust rather than nullify transactions. The Exchange acknowledges that adjustment of transactions is contrary to the operation of analogous rules applicable to the equities markets, where erroneous transactions are typically nullified rather than adjusted and where there is no distinction between the types of market participants involved in a transaction. For the reasons set forth below, the Exchange believes that the distinctions in market structure between equities and options markets continue to support these distinctions between the rules for handling obvious errors in the equities and options markets. Various general structural differences between the options and equities markets point toward the need for a different balancing of risks for options market participants and are reflected in this proposal. Option pricing is formulaic and is tied to the price of the underlying stock, the volatility of the underlying security and other factors. Because options market participants can generally create new open interest in response to trading demand, as new open interest is created, correlated trades in the underlying or related series are generally also executed to hedge a market participant's risk. This pairing of open interest with hedging interest differentiates the options market specifically (and the derivatives markets broadly) from the cash equities markets. In turn, the Exchange believes that the hedging transactions engaged in by market participants necessitates protection of transactions through adjustments rather than nullifications when possible and otherwise appropriate. The options markets are also quote driven markets dependent on liquidity providers to an even greater extent than equities markets. In contrast to the approximately 7,000 different securities [[Page 14590]] traded in the U.S. equities markets each day, there are more than 500,000 unique, regularly quoted option series. Given this breadth in options series the options markets are more dependent on liquidity providers than equities markets; such liquidity is provided most commonly by registered market makers but also by other professional traders. With the number of instruments in which registered market makers must quote and the risk attendant with quoting so many products simultaneously, the Exchange believes that those liquidity providers should be afforded a greater level of protection. In particular, the Exchange believes that liquidity providers should be allowed protection of their trades given the fact that they typically engage in hedging activity to protect them from significant financial risk to encourage continued liquidity provision and maintenance of the quote-driven options markets. In addition to the factors described above, there are other fundamental differences between options and equities markets which lend themselves to different treatment of different classes of participants that are reflected in this proposal. For example, there is no trade reporting facility in the options markets. Thus, all transactions must occur on an options exchange. This leads to significantly greater retail customer participation directly on exchanges than in the equities markets, where a significant amount of retail customer participation never reaches the Exchange but is instead executed in off-exchange venues such as alternative trading systems, broker-dealer market making desks and internalizers. In turn, because of such direct retail customer participation, the exchanges have taken steps to afford those retail customers--generally Priority Customers--more favorable treatment in some circumstances. Complex Orders As more fully described below, the Proposed Rule applies much of the Current Rule to Complex Orders.\7\ The Proposed Rule deviates from the Current Rule only to account for the unique qualities of Complex Orders. The Proposed Rule reflects the fact that Complex Orders can execute against other Complex Orders or can execute against individual simple orders in the leg markets. When a Complex Order executes against the leg markets there may be different counterparties on each leg of the Complex Order, and not every leg will necessarily be executed at an erroneous price. --------------------------------------------------------------------------- \7\ In order for a Complex Order to qualify as an obvious or catastrophic error at least one of the legs must itself qualify as an obvious or catastrophic error under the Current Rule. See Proposed IM-7170-4 (a)-(b). --------------------------------------------------------------------------- First, proposed IM-7170-4(a) governs the review of Complex Orders that are executed against individual legs (as opposed to a Complex Order that executes against another Complex Order).\8\ Proposed IM- 7170-4(a) provides: --------------------------------------------------------------------------- \8\ The leg market consists of quotes and/or orders in single options series. A Complex Order may be received by the Exchange electronically, and the legs of the Complex Order may have different counterparties. For example, Market-Maker 1 may be quoting in ABC calls and Market-Maker 2 may be quoting in ABC puts. A Complex Order to buy the ABC calls and puts may execute against the quotes of Market-Maker 1 and Market-Maker 2. If a Complex Order executes against individual legs and at least one of the legs qualifies as an Obvious or Catastrophic Error under this Rule 7170, then the leg(s) that is an Obvious or Catastrophic Error will be adjusted in accordance with paragraphs (c)(4)(A) or (d)(3), respectively, regardless of whether one of the parties is a Customer. However, any Customer order subject to this paragraph (a) will be nullified if the adjustment would result in an execution price higher (for buy transactions) or lower (for sell transactions) than the Customer's limit price on the Complex Order or individual leg(s). If any leg of a Complex Order is nullified, the entire --------------------------------------------------------------------------- transaction is nullified. As previously noted, at least one of the legs of the Complex Order must qualify as an obvious or catastrophic error under the Current Rule in order for the Complex Order to receive obvious or catastrophic error relief. Thus, when the Exchange is notified (within the timeframes set forth in paragraph (c)(2) or (d)(2)) of a Complex Order that is a possible obvious error or catastrophic error, the Exchange will first review the individual legs of the Complex Order to determine if one or more legs qualify as an obvious or catastrophic error.\9\ If no leg qualifies as an obvious or catastrophic error, the transaction stands-- no adjustment and no nullification. --------------------------------------------------------------------------- \9\ Because a Complex Order can execute against the leg market, the Exchange may also be notified of a possible obvious or catastrophic error by a counterparty that received an execution in an individual options series. If upon review of a potential obvious error the Exchange determines an individual options series was executed against the leg of a Complex Order, proposed IM-7170-4 will govern. --------------------------------------------------------------------------- Reviewing the legs to determine whether one or more legs qualify as an obvious or catastrophic error requires the Exchange to follow the Current Rule. In accordance with paragraphs (c)(1) and (d)(1) of the Current Rule, the Exchange compares the execution price of each individual leg to the Theoretical Price of each leg (as determined by paragraph (b) of the Current Rule). If the execution price of an individual leg is higher or lower than the Theoretical Price for the series by an amount equal to at least the amount shown in the obvious error table in paragraph (c)(1) of the Current rule or the catastrophic error table in paragraph (d)(1) of the Current Rule, the individual leg qualifies as an obvious or catastrophic error, and the Exchange will take steps to adjust or nullify the transaction.\10\ --------------------------------------------------------------------------- \10\ Only the execution price on the leg (or legs) that qualifies as an obvious or catastrophic error pursuant to any portion of Proposed IM-7170-4 will be adjusted. The execution price of a leg (or legs) that does not qualify as an obvious or catastrophic error will not be adjusted. --------------------------------------------------------------------------- To illustrate, consider a Customer submits a Complex Order to the Exchange consisting of leg 1 and leg 2--Leg 1 is to buy 100 ABC calls and leg 2 is to sell 100 ABC puts. Also, consider that Market-Maker 1 is quoting the ABC calls $1.00-1.20 and Market-Maker 2 is quoting the ABC puts $2.00-2.20. If the Complex Order executes against the quotes of Market-Makers 1 and 2, the Customer buys the ABC calls for $1.20 and sells the ABC puts for $2.00. As with the obvious/catastrophic error reviews for simple orders, the execution price of leg 1 is compared to the Theoretical Price \11\ of Leg 1 in order to determine if Leg 1 is an obvious error under paragraph (c)(1) of the Current Rule or a catastrophic error under paragraph (d)(1) of the Current Rule. The same goes for Leg 2. The execution price of Leg 2 is compared to the Theoretical Price of Leg 2. If it is determined that one or both of the legs are an obvious or catastrophic error, then the leg (or legs) that is an obvious or catastrophic error will be adjusted in accordance with paragraphs (c)(4)(A) or (d)(3) of the Current Rule, regardless of whether one of the parties is a Customer.\12\ Although a single-legged execution that is deemed to be an obvious error under the Current Rule is nullified whenever a Customer is involved in the transaction, the Exchange believes adjusting execution prices is generally better for the marketplace than nullifying executions because liquidity providers often execute hedging transactions to offset options positions. When an options transaction is nullified the hedging position can adversely affect the liquidity provider. With regards to Complex Orders that execute against individual legs, the additional rationale [[Page 14591]] for adjusting erroneous execution prices when possible is the fact that the counterparty on a leg that is not executed at an obvious or catastrophic error price cannot look at the execution price to determine whether the execution may later be nullified (as opposed to the counterparty on single-legged order that is executed at an obvious error or catastrophic error price). --------------------------------------------------------------------------- \11\ See Rule 7170(b) (defining the manner in which Theoretical Price is determined). \12\ See Rule 7170(a)(1) (defining Customer for purposes of Rule 7170 as not including a broker-dealer, Professional Customer, or Voluntary Professional Customer). --------------------------------------------------------------------------- Paragraph (c)(4)(A) of the Current Rule mandates that if it is determined that an obvious error has occurred, the execution price of the transaction will be adjusted pursuant to the table set forth in (c)(4)(A). Although for simple orders paragraph (c)(4)(A) is only applicable when no party to the transaction is a Customer, for the purposes of Complex Orders paragraph (a) of IM-7170-4 will supersede that limitation; therefore, if it is determined that a leg (or legs) of a Complex Order is an obvious error, the leg (or legs) will be adjusted pursuant to (c)(4)(A), regardless of whether a party to the transaction is a Customer. The Size Adjustment Modifier defined in subparagraph (a)(4) will similarly apply (regardless of whether a Customer is on the transaction) by virtue of the application of paragraph (c)(4)(A).\13\ The Exchange notes that adjusting all market participants is not unique or novel. When the Exchange determines that a simple order execution is a Catastrophic Error pursuant to the Current Rule, paragraph (d)(3) already provides for adjusting the execution price for all market participants, including Customers. --------------------------------------------------------------------------- \13\ See Rule 7170(c)(4)(A) (stating that any non-Customer Obvious Error exceeding 50 contracts will be subject to the Size Adjustment Modifier defined in sub-paragraph (a)(4)). --------------------------------------------------------------------------- Furthermore, as with the Current Rule, Proposed IM-7170-4(a) provides protection for Customer orders, stating that where at least one party to a Complex Order transaction is a Customer, the transaction will be nullified if adjustment would result in an execution price higher (for buy transactions) or lower (for sell transactions) than the Customer's limit price on the Complex Order or individual leg(s). For example, assume Customer enters a Complex Order to buy leg 1 and leg 2.Assume the NBBO for leg 1 is $0.20-1.00 and the NBBO for leg 2 is $0.50-1.00 and that these have been the NBBOs since the market opened. A split-second prior to the execution of the Complex Order a Customer enters a simple order to sell the leg 1 options series at $1.30, and the simple order enters the Exchange's book so that the BBO is $.20-$1.30. The limit price on the simple order is $1.30. The Complex Order executes leg 1 against the Exchange's best offer of $1.30 and leg 2 at $1.00 for a net execution price of $2.30. However, leg 1 executed on a wide quote (the NBBO for leg 1 was $0.20-1.00 at the time of execution, which is wider than $0.75).\14\ Leg 2 was not executed on a wide quote (the market for leg 2 was $0.50-1.00); thus, leg 2 execution price stands. --------------------------------------------------------------------------- \14\ See Rule 7170(b)(3). --------------------------------------------------------------------------- The Exchange determines that the Theoretical Price for leg 1 is $1.00, which was the best offer prior to the execution. Leg 1 qualifies as an obvious error because the difference between the Theoretical Price ($1.00) and the execution price ($1.30) is larger than $0.25.\15\ --------------------------------------------------------------------------- \15\ See Rule (c)(1). --------------------------------------------------------------------------- According to Proposed IM-7170-4(a) Customers will also be adjusted in accordance with Rule 7170(c)(4)(A), which for a buy transaction under $3.00 calls for the Theoretical Price to by adjusted by adding $0.15 \16\ to the Theoretical Price of $1.00. Thus, adjust execution price for leg 1 would be $1.15. --------------------------------------------------------------------------- \16\ See Rule 7170(c)(4)(A). --------------------------------------------------------------------------- However, adjusting the execution price of leg 1 to $1.15 violates the limit price of the Customer's sell order on the simple order book for leg 1, which was $1.30. Thus, the entire Complex Order transaction will be nullified \17\ because the limit price of a Customer's sell order would be violated by the adjustment.\18\ --------------------------------------------------------------------------- \17\ If any leg of a Complex Order is nullified, the entire transaction is nullified. See Proposed IM-7170-4(a). \18\ The simple order in this example is not an erroneous sell transaction because the execution price was not erroneously low. See Rule 7170(a)(2). --------------------------------------------------------------------------- As the above example demonstrates, incoming Complex Orders may execute against resting simple orders in the leg market. If a Complex Order leg is deemed to be an obvious error, adjusting the execution price of the leg may violate the limit price of the resting order, which will result in nullification if the resting order is for a Customer. In contrast, IM-7170-2 provides that if an adjustment would result in an execution price that is higher than an erroneous buy transaction or lower than an erroneous sell transaction the execution will not be adjusted or nullified.\19\ If the adjustment of a Complex Order would violate the Complex Order Customer's limit price, the transaction will be nullified. --------------------------------------------------------------------------- \19\ See IM-7170-2. --------------------------------------------------------------------------- As previously noted, paragraph (d)(3) of the Current Rule already mandates that if it is determined that a catastrophic error has occurred, the execution price of the transaction will be adjusted pursuant to the table set forth in (d)(3). For purposes of Complex Orders under Proposed IM-7170-4(a), if one of the legs of a Complex Order is determined to be a Catastrophic Error under paragraph (d)(3), all market participants will be adjusted in accordance with the table set forth in (d)(3). Again, however, where at least one party to a Complex Order transaction is a Customer, the transaction will be nullified if adjustment would result in an execution price higher (for buy transactions) or lower (for sell transactions) than the Customer's limit price on the Complex Order or individual leg(s). Again, if any leg of a Complex Order is nullified, the entire transaction is nullified. Other than honoring the limit prices established for Customer orders, the Exchange has proposed to treat Customers and non-Customers the same in the context of the Complex Orders that trade against the leg market. When Complex Orders trade against the leg market, it is possible that at least some of the legs will execute at prices that would not be deemed obvious or catastrophic errors, which gives the counterparty in such situations no indication that the execution will later by adjusted or nullified. The Exchange believes that treating Customers and non-Customers the same in this context will provide additional certainty to non-Customers (especially Market-Makers) with respect to their potential exposure and hedging activities, including comfort that even if a transaction is later adjusted, such transaction will not be fully nullified. However, as noted above, under the Proposed Rule where at least one party to the transaction is a Customer, the trade will be nullified if the adjustment would result in an execution price higher (for buy transactions) or lower (for sell transactions) than the Customer's limit price on the Complex Order or individual leg(s). The Exchange has retained the protection of a Customer's limit price in order to avoid a situation where the adjustment could be to a price that a Customer would not have expected, and market professionals such as non-Customers would be better prepared to recover in such situations. Therefore, adjustment for non-Customers is more appropriate. Second, proposed IM-7170-4(b) governs the review of Complex Orders [[Page 14592]] that are executed against other Complex Orders. Proposed IM-7170-4(b) provides: If a Complex Order executes against another Complex Order and at least one of the legs qualifies as an Obvious Error under paragraph (c)(1) or a Catastrophic Error under paragraph (d)(1), then the leg(s) that is an Obvious or Catastrophic Error will be adjusted or busted in accordance with paragraph (c)(4) or (d)(3), respectively, so long as either: (i) The width of the National Spread Market for the Complex Order strategy just prior to the erroneous transaction was equal to or greater than the amount set forth in the wide quote table of paragraph (b)(3) or (ii) the net execution price of the Complex Order is higher (lower) than the offer (bid) of the National Spread Market for the Complex Order strategy just prior to the erroneous transaction by an amount equal to at least the amount shown in the table in paragraph (c)(1). If any leg of a Complex Order is nullified, the entire transaction is nullified. For purposes of Rule 7170, the National Spread Market for a Complex Order strategy is determined by the National Best Bid/Offer of the individual legs of the strategy. As described above in relation to Proposed IM-7170-4(a), the first step is for the Exchange to review (upon receipt of a timely notification in accordance with paragraphs (c)(2) or (d)(2) of the Current Rule) the individual legs to determine whether a leg or legs qualifies as an obvious or catastrophic error. If no leg qualifies as an obvious or catastrophic error, the transaction stands--no adjustment and no nullification. Unlike Proposed IM-7170-4(a), the Exchange is also proposing to compare the net execution price of the entire Complex Order package to the National Spread Market (``NSM'') for the Complex Order strategy.\20\ Complex Orders are exempt from the order protection rules of the options exchanges.\21\ Thus, depending on the manner in which the systems of an options exchange are calibrated, a Complex Order can execute without regard to the prices offered in the Complex Order books or the leg markets of other options exchanges. In certain situations, reviewing the execution prices of the legs in a vacuum would make the leg appear to be an obvious or catastrophic error, even though the net execution price on the Complex Order is not an erroneous price. For example, assume the Exchange receives a Complex Order to buy ABC calls and sell ABC puts. --------------------------------------------------------------------------- \20\ NSM is the derived net market for a Complex Order package. For example, if the NBBO of Leg 1 is $1.00-2.00 and the NBBO of Leg 2 is $5.00-7.00, then the NSM for a Complex Order to buy Leg 1 and buy Leg 2 is $6.00-9.00. \21\ See Rule 15010(b)(7). All options exchanges have the same order protection rule. --------------------------------------------------------------------------- If the BBO for the ABC calls is $5.50-7.50 and the BBO for ABC puts is $3.00-4.50, then the Exchange's spread market is $1.00- 4.50.\22\ --------------------------------------------------------------------------- \22\ The Complex Order is to buy ABC calls and sell ABC puts. The Exchange's best offer for ABC puts is $7.50 and Exchange's best bid for is $3.00. If the Customer were to buy the Complex Order strategy, the Customer would receive a debit of $4.50 (buy ABC calls for $7.50 minus selling ABC puts for $3.00). If the Customer were to sell the Complex Order strategy the Customer would receive a credit of $1.00 (selling the ABC calls for $5.50 minus buying the ABC puts for $4.50). Thus, the Exchange's spread market is $1.00-4.50. --------------------------------------------------------------------------- If the NBBO for the ABC calls is $6.00-6.50 and the NBBO for the ABC puts is $3.50-4.00, then the NSM is $2.00-3.00. If the Customer buys the calls at $7.50 and sells the puts at $4.00, the Complex Order Customer receives a net execution price of $3.00 (debit), which is the expected net execution price as indicated by the NSM offer of $3.00. If the exchange were to solely focus on the $7.50 execution price of the ABC calls or the $4.00 execution price of the ABC puts, the execution would qualify as an obvious or catastrophic error because the execution price on the legs was outside the NBBO, even though the net execution price is accurate. Thus, the additional review of the NSM to determine if the Complex Order was executed at a truly erroneous price is necessary. The same concern is not present when a Complex Order executes against the leg market under IM-7170-4(a) because the Exchange is modifying its system in order to ensure the leg will execute at or within the NBBO of the leg markets.\23\ --------------------------------------------------------------------------- \23\ The proposed rule change to modify Exchange systems to ensure the legs of a Complex Order will execute against legs in the simple order market within the NBBO of the simple order market will be in a separate filing. --------------------------------------------------------------------------- In order to incorporate NSM, IM-7170-4(b) provides that if the Exchange determines that a leg or legs does qualify as on obvious or catastrophic error, the leg or legs will be adjusted or busted in accordance with paragraph (c)(4) or (d)(3) of the Current Rule, so long as either: (i) The width of the NSM for the Complex Order strategy just prior to the erroneous transaction was equal to or greater than the amount set forth in the wide quote table of paragraph (b)(3) of the Current Rule or (ii) the net execution price of the Complex Order is higher (lower) than the offer (bid) of the NSM for the Complex Order strategy just prior to the erroneous transaction by an amount equal to at least the amount shown in the table in paragraph (c)(1) of the Current Rule. For example, assume an individual leg or legs qualifies as an obvious or catastrophic error and the width of the NSM of the Complex Order strategy just prior to the erroneous transaction is $6.00-9.00. The Complex Order will qualify to be adjusted or busted in accordance with paragraph (c)(4) of the Current Rule because the wide quote table of paragraph (b)(3) of the Current Rule indicates that the minimum amount is $1.50 for a bid price between $5.00 to $10.00. If the NSM were instead $6.00-7.00 the Complex Order strategy would not qualify to be adjusted or busted pursuant to .07(b)(i) because the width of the NSM is $1.00, which is less than the required $1.50. However, the execution may still qualify to be adjusted or busted in accordance with paragraph (c)(4) or (d)(3) of the Current Rule pursuant to IM-7170- 4(b)(ii). Focusing on the NSM in this manner will ensure that the obvious/catastrophic error review process focuses on the net execution price instead of the execution prices of the individual legs, which may have execution prices outside of the NBBO of the leg markets. Again, assume an individual leg or legs qualifies as an obvious or catastrophic error as described above. If the NSM is $6.00-7.00 (not a wide quote pursuant to the wide quote table in paragraph (b)(3) of the Current Rule) but the execution price of the entire Complex Order package (i.e., the net execution price) is higher (lower) than the offer (bid) of the NSM for the Complex Order strategy just prior to the erroneous transaction by an amount equal to at least the amount in the table in paragraph (c)(1) of the Current Rule, then the Complex Order qualifies to be adjusted or busted in accordance with paragraph (c)(4) or (d)(3) of the Current Rule. For example, if the NSM for the Complex Order strategy just prior to the erroneous transaction is $6.00-7.00 and the net execution price of the Complex Order transaction is $7.75, the Complex Order qualifies to be adjusted or busted in accordance with paragraph (c)(4) of the Current Rule because the execution price of $7.75 is more than $0.50 (i.e., the minimum amount according to the table in paragraph (c)(1) when the price is above $5.00 but less than $10.01) from the NSM offer of $7.00. Focusing on the NSM in this manner will ensure that the obvious/catastrophic error review process focuses on the net execution price instead of the execution prices of the individual legs, which may have execution prices outside of the NBBO of the leg markets. Although the Exchange believes adjusting execution prices is generally [[Page 14593]] better for the marketplace than nullifying executions because liquidity providers often execute hedging transactions to offset options positions, the Exchange recognizes that Complex Orders executing against other Complex Orders is similar to simple orders executing against other simple orders because both parties are able to review the execution price to determine whether the transaction may have been executed at an erroneous price. Thus, for purposes of Complex Orders that meet the requirements of IM-7170-4(b), the Exchange proposes to apply the Current Rule and adjust or bust obvious errors in accordance with paragraph (c)(4) (as opposed to applying paragraph (c)(4)(A) as is the case under IM-7170-4(a)) and catastrophic errors in accordance with (d)(3). Therefore, for purposes of Complex Orders under Proposed IM-7170- 4(b), if one of the legs is determined to be an obvious error under paragraph (c)(1), all Customer transactions will be nullified, unless a Participant submits 200 or more Customer transactions for review in accordance with (c)(4)(C).\24\ For purposes of Complex Orders under Proposed IM-7170-4(b), if one of the legs is determined to be a catastrophic error under paragraph (d)(3) and all of the other requirements of IM-7170-4(b) are met, all market participants will be adjusted in accordance with the table set forth in (d)(3). Again, however, pursuant to paragraph (d)(3) where at least one party to a Complex Order transaction is a Customer, the transaction will be nullified if adjustment would result in an execution price higher (for buy transactions) or lower (for sell transactions) than the Customer's limit price on the Complex Order or individual leg(s). Also, if any leg of a Complex Order is nullified, the entire transaction is nullified. --------------------------------------------------------------------------- \24\ Rule 7170(c)(4)(C) also requires the orders resulting in 200 or more Customer transactions to have been submitted during the course of 2 minutes or less. --------------------------------------------------------------------------- Implementation Date In order to ensure that the other options exchanges are able to adopt rules consistent with this proposal and to coordinate effectiveness of such harmonized rules, the Exchange proposed to delay the effectiveness of this proposal to April 17, 2017. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\25\ in general, and Section 6(b)(5) of the Act,\26\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78f(b). \26\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- As described above, the Exchange and other options exchanges are seeking to adopt harmonized rules related to the adjustment and nullification of erroneous options transactions. The Exchange believes that the Proposed Rule will provide greater transparency and clarity with respect to the adjustment and nullification of erroneous options transactions. Particularly, the proposed changes seek to achieve consistent results for participants across U.S. options exchanges while maintaining a fair and orderly market, protecting investors and protecting the public interest. Based on the foregoing, the Exchange believes that the proposal is consistent with Section 6(b)(5) of the Act \27\ in that the Proposed Rule will foster cooperation and coordination with persons engaged in regulating and facilitating transactions. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the various provisions allowing or dictating adjustment rather than nullification of a trade are necessary given the benefits of adjusting a trade price rather than nullifying the trade completely. Because options trades are used to hedge, or are hedged by, transactions in other markets, including securities and futures, many Participants, and their customers, would rather adjust prices of executions rather than nullify the transactions and, thus, lose a hedge altogether. As such, the Exchange believes it is in the best interest of investors to allow for price adjustments as well as nullifications. The Exchange does not believe that the proposal is unfairly discriminatory, even though it differentiates in many places between Customers and non-Customers. As with the Current Rule, Customers are treated differently, often affording them preferential treatment. This treatment is appropriate in light of the fact that Customers are not necessarily immersed in the day-to-day trading of the markets, are less likely to be watching trading activity in a particular option throughout the day, and may have limited funds in their trading accounts. At the same time, the Exchange reiterates that in the U.S. options markets generally there is significant retail customer participation that occurs directly on (and only on) options exchanges such as the Exchange. Accordingly, differentiating among market participants with respect to the adjustment and nullification of erroneous options transactions is not unfairly discriminatory because it is reasonable and fair to provide Customers with additional protections as compared to non-Customers. The Exchange believes that its proposal to adopt the ability to adjust a Customer's execution price when a Complex Order is deemed to be an Obvious or Catastrophic Error is consistent with the Act. A Complex Order that executes against individual leg markets may receive an execution price on an individual leg that is not an Obvious or Catastrophic error but another leg of the transaction is an Obvious or Catastrophic Error. In such situations where the Complex Order is executing against at least one individual or firm that is not aware of the fact that they have executed against a Complex Order or that the Complex Order has been executed at an erroneous price, the Exchange believes it is more appropriate to adjust execution prices if possible because the derivative transactions are often hedged with other securities. Allowing adjustments instead of nullifying transactions in these limited situations will help to ensure that market participants are not left with a hedge that has no position to hedge against. 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. In this regard and as indicated above, the Exchange notes that the proposed rule change is substantially similar to a filing submitted by CBOE that was recently approved by the Commission.\28\ --------------------------------------------------------------------------- \28\ See supra, note 3. --------------------------------------------------------------------------- The Exchange believes the proposal will not impose a burden on intermarket competition but will rather alleviate any burden on competition because it is the result of a collaborative effort by all options exchanges to harmonize and improve the process related to the adjustment and nullification of erroneous options transactions. The Exchange does not believe that the rules applicable to such process is an area where options exchanges should [[Page 14594]] compete, but rather, that all options exchanges should have consistent rules to the extent possible. Particularly where a market participant trades on several different exchanges and an erroneous trade may occur on multiple markets nearly simultaneously, the Exchange believes that a participant should have a consistent experience with respect to the nullification or adjustment of transactions. The Exchange understands that all other options exchanges that trade complex orders and/or stock-option orders intend to file proposals that are substantially similar to this proposal. The Exchange does not believe that the proposed rule change imposes a burden on intramarket competition because the provisions apply to all market participants equally within each participant category (i.e., Customers and non-Customers). With respect to competition between Customer and non-Customer market participants, the Exchange believes that the Proposed Rule acknowledges competing concerns and tries to strike the appropriate balance between such concerns. For instance, the Exchange believes that protection of Customers is important due to their direct participation in the options markets as well as the fact that they are not, by definition, market professionals. At the same time, the Exchange believes due to the quote-driven nature of the options markets, the importance of liquidity provision in such markets and the risk that liquidity providers bear when quoting a large breadth of products that are derivative of underlying securities, that the protection of liquidity providers and the practice of adjusting transactions rather than nullifying them is of critical importance. As described above, the Exchange will apply specific and objective criteria to determine whether an erroneous transaction has occurred and, if so, how to adjust or nullify a transaction. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. 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 \29\ and Rule 19b-4(f)(6) thereunder.\30\ --------------------------------------------------------------------------- \29\ 15 U.S.C. 78s(b)(3)(A). \30\ 17 CFR 240.19b-4(f)(6). 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. --------------------------------------------------------------------------- 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 protected]. Please include File Number SR-BOX-2017-08 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BOX-2017-08. 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-BOX-2017-08, and should be submitted on or before April 11, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\31\ --------------------------------------------------------------------------- \31\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-05497 Filed 3-20-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Notices 14589
For the Commission, by the Division of Sections A, B, and C below, of the most The Proposed Rule is the culmination
Trading and Markets, pursuant to delegated significant aspects of such statements. of this coordinated effort and reflects
authority.25 discussions by the options exchanges
Eduardo A. Aleman, A. Self-Regulatory Organization’s
whereby the exchanges that offer
Statement of the Purpose of, and
Assistant Secretary. complex orders and/or stock-option
Statutory Basis for, the Proposed Rule
[FR Doc. 2017–05499 Filed 3–20–17; 8:45 am] orders will universally adopt new
Change provisions that the options exchanges
BILLING CODE 8011–01–P
1. Purpose collectively believe will improve the
handling of erroneous options
SECURITIES AND EXCHANGE The Exchange proposes to amend transactions that result from the
COMMISSION BOX Rule 7170 (Nullification and execution of complex orders and stock-
Adjustment of Options Transactions) to option orders.6
[Release No. 34–80247; File No. SR–BOX– add IM–7170–4. This is filing is based The Exchange believes that the
2017–08] on a proposal recently submitted by Proposed Rule supports an approach
Self-Regulatory Organizations; BOX Chicago Board Options Exchange, consistent with long-standing principles
Options Exchange LLC; Notice of Incorporated (‘‘CBOE’’) and approved by in the options industry under which the
Filing and Immediate Effectiveness of the Commission.3 general policy is to adjust rather than
a Proposed Rule Change To Amend Last year, the Exchange and other nullify transactions. The Exchange
BOX Rule 7170 (Nullification and options exchanges adopted a new, acknowledges that adjustment of
Adjustment of Options Transactions) harmonized rule related to the transactions is contrary to the operation
To Add IM–7170–4 adjustment and nullification of of analogous rules applicable to the
erroneous options transactions, equities markets, where erroneous
March 15, 2017. including a specific provision related to transactions are typically nullified
Pursuant to Section 19(b)(1) of the coordination in connection with large- rather than adjusted and where there is
Securities Exchange Act of 1934 (the scale events involving erroneous no distinction between the types of
‘‘Act’’),1 and Rule 19b–4 thereunder,2 options transactions.4 The Exchange market participants involved in a
notice is hereby given that on March 3, believes that the changes the options transaction. For the reasons set forth
2017, BOX Options Exchange LLC (the exchanges implemented with the new, below, the Exchange believes that the
‘‘Exchange’’) filed with the Securities harmonized rule have led to increased distinctions in market structure between
and Exchange Commission transparency and finality with respect to equities and options markets continue
(‘‘Commission’’) the proposed rule the adjustment and nullification of to support these distinctions between
change as described in Items I and II erroneous options transactions. the rules for handling obvious errors in
below, which Items have been prepared However, as part of the initial initiative, the equities and options markets.
by the self-regulatory organization. The the Exchange and other options Various general structural differences
Commission is publishing this notice to exchanges deferred a few specific between the options and equities
solicit comments on the proposed rule matters for further discussion. markets point toward the need for a
change from interested persons. Specifically, the options exchanges different balancing of risks for options
have been working together to identify market participants and are reflected in
I. Self-Regulatory Organization’s
ways to improve the process related to this proposal. Option pricing is
Statement of the Terms of Substance of
the adjustment and nullification of formulaic and is tied to the price of the
the Proposed Rule Change
erroneous options transactions as it underlying stock, the volatility of the
The Exchange proposes to amend underlying security and other factors.
BOX Rule 7170 (Nullification and relates to complex orders 5 and stock-
option orders. The goal of the process Because options market participants can
Adjustment of Options Transactions) to generally create new open interest in
add IM–7170–4. The text of the that the options exchanges have
undertaken is to further harmonize rules response to trading demand, as new
proposed rule change is available from open interest is created, correlated
the principal office of the Exchange, at related to the adjustment and
nullification of erroneous options trades in the underlying or related series
the Commission’s Public Reference are generally also executed to hedge a
Room and also on the Exchange’s transactions. As described below, the
Exchange believes that the changes the market participant’s risk. This pairing of
Internet Web site at http:// open interest with hedging interest
boxexchange.com. options exchanges and BOX have agreed
to propose will provide transparency differentiates the options market
II. Self-Regulatory Organization’s and finality with respect to the specifically (and the derivatives markets
Statement of the Purpose of, and adjustment and nullification of broadly) from the cash equities markets.
Statutory Basis for, the Proposed Rule erroneous complex order and stock- In turn, the Exchange believes that the
Change option order transactions. Particularly, hedging transactions engaged in by
the proposed changes seek to achieve market participants necessitates
In its filing with the Commission, the protection of transactions through
self-regulatory organization included consistent results for participants across
U.S. options exchanges while adjustments rather than nullifications
statements concerning the purpose of, when possible and otherwise
and basis for, the proposed rule change maintaining a fair and orderly market,
protecting investors and protecting the appropriate.
and discussed any comments it received The options markets are also quote
public interest.
mstockstill on DSK3G9T082PROD with NOTICES
on the proposed rule change. The text driven markets dependent on liquidity
of these statements may be examined at providers to an even greater extent than
3 See Securities Exchange Act Release No. 80040
the places specified in Item IV below. equities markets. In contrast to the
(February 14, 2017), 82 FR 11248 (February 21,
The self-regulatory organization has 2017) (Order Approving SR–CBOE–2016–088). approximately 7,000 different securities
prepared summaries, set forth in 4 See Securities Exchange Act Release No. 74911
(May 8, 2015), 80 FR 27717 (May 14, 2015) (SR– 6 The Exchange notes that it does not offer stock-
1 15 U.S.C. 78s(b)(1). BOX–2015–18) (the ‘‘Initial Filing’’). option orders and will not adopt the CBOE
2 17 CFR 240.19b–4. 5 See Rule 7240(a)(5) (defining complex orders). provisions around stock-option orders.
VerDate Sep<11>2014 16:47 Mar 20, 2017 Jkt 241001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\21MRN1.SGM 21MRN1](https://thefederalregister.org/doc/82_FR_14642/page/1.svg)
![14594 Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Notices
compete, but rather, that all options which it was filed, or such shorter time communications relating to the
exchanges should have consistent rules as the Commission may designate if proposed rule change between the
to the extent possible. Particularly consistent with the protection of Commission and any person, other than
where a market participant trades on investors and the public interest, the those that may be withheld from the
several different exchanges and an proposed rule change has become public in accordance with the
erroneous trade may occur on multiple effective pursuant to Section 19(b)(3)(A) provisions of 5 U.S.C. 552, will be
markets nearly simultaneously, the of the Act 29 and Rule 19b–4(f)(6) available for Web site viewing and
Exchange believes that a participant thereunder.30 printing in the Commission’s Public
should have a consistent experience At any time within 60 days of the Reference Room, 100 F Street NE.,
with respect to the nullification or filing of the proposed rule change, the Washington, DC 20549 on official
adjustment of transactions. The Commission summarily may business days between the hours of
Exchange understands that all other temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of such
options exchanges that trade complex it appears to the Commission that such filing also will be available for
orders and/or stock-option orders intend action is necessary or appropriate in the inspection and copying at the principal
to file proposals that are substantially public interest, for the protection of office of the Exchange. All comments
similar to this proposal. investors, or otherwise in furtherance of received will be posted without change;
The Exchange does not believe that the purposes of the Act. If the the Commission does not edit personal
the proposed rule change imposes a Commission takes such action, the identifying information from
burden on intramarket competition Commission shall institute proceedings submissions. You should submit only
because the provisions apply to all to determine whether the proposed rule information that you wish to make
market participants equally within each should be approved or disapproved. available publicly. All submissions
participant category (i.e., Customers and should refer to File Number SR–BOX–
non-Customers). With respect to IV. Solicitation of Comments
2017–08, and should be submitted on or
competition between Customer and Interested persons are invited to before April 11, 2017.
non-Customer market participants, the submit written data, views, and
Exchange believes that the Proposed For the Commission, by the Division of
arguments concerning the foregoing, Trading and Markets, pursuant to delegated
Rule acknowledges competing concerns including whether the proposed rule authority.31
and tries to strike the appropriate change is consistent with the Act. Eduardo A. Aleman,
balance between such concerns. For Comments may be submitted by any of
instance, the Exchange believes that Assistant Secretary.
the following methods:
protection of Customers is important [FR Doc. 2017–05497 Filed 3–20–17; 8:45 am]
due to their direct participation in the Electronic Comments BILLING CODE 8011–01–P
options markets as well as the fact that • Use the Commission’s Internet
they are not, by definition, market comment form (http://www.sec.gov/
professionals. At the same time, the rules/sro.shtml); or SURFACE TRANSPORTATION BOARD
Exchange believes due to the quote- • Send an email to rule-
driven nature of the options markets, comments@sec.gov. Please include File [Docket No. EP 290 (Sub-No. 5) (2017–2)]
the importance of liquidity provision in Number SR–BOX–2017–08 on the
such markets and the risk that liquidity Quarterly Rail Cost Adjustment Factor
subject line.
providers bear when quoting a large AGENCY: Surface Transportation Board.
breadth of products that are derivative Paper Comments
ACTION: Approval of rail cost adjustment
of underlying securities, that the • Send paper comments in triplicate factor.
protection of liquidity providers and the to Brent J. Fields, Secretary, Securities
practice of adjusting transactions rather and Exchange Commission, 100 F Street SUMMARY: The Board approves the
than nullifying them is of critical NE., Washington, DC 20549–1090. second quarter 2017 Rail Cost
importance. As described above, the All submissions should refer to File Adjustment Factor (RCAF) and cost
Exchange will apply specific and Number SR–BOX–2017–08. This file index filed by the Association of
objective criteria to determine whether number should be included on the American Railroads. The second quarter
an erroneous transaction has occurred subject line if email is used. To help the 2017 RCAF (Unadjusted) is 0.904. The
and, if so, how to adjust or nullify a Commission process and review your second quarter 2017 RCAF (Adjusted) is
transaction. comments more efficiently, please use 0.377. The second quarter 2017 RCAF–
C. Self-Regulatory Organization’s only one method. The Commission will 5 is 0.358.
Statement on Comments on the post all comments on the Commission’s DATES: Effective Date: April 1, 2017.
Proposed Rule Change Received From Internet Web site (http://www.sec.gov/ FOR FURTHER INFORMATION CONTACT:
Members, Participants, or Others rules/sro.shtml). Copies of the Pedro Ramirez, (202) 245–0333. Federal
submission, all subsequent Information Relay Service (FIRS) for the
The Exchange has neither solicited amendments, all written statements
nor received comments on the proposed hearing impaired (800) 877–8339.
with respect to the proposed rule
rule change. SUPPLEMENTARY INFORMATION:
change that are filed with the
Additional information is contained in
III. Date of Effectiveness of the Commission, and all written
the Board’s decision, which is available
Proposed Rule Change and Timing for on our Web site, http://www.stb.gov.
mstockstill on DSK3G9T082PROD with NOTICES
29 15 U.S.C. 78s(b)(3)(A).
Commission Action Copies of the decision may be
30 17 CFR 240.19b–4(f)(6). As required under Rule
Because the proposed rule change 19b–4(f)(6)(iii), the Exchange provided the purchased by contacting the Office of
does not (i) significantly affect the Commission with written notice of its intent to file Public Assistance, Governmental
protection of investors or the public the proposed rule change, along with a brief Affairs, and Compliance at (202) 245–
description and the text of the proposed rule
interest; (ii) impose any significant change, at least five business days prior to the date 0238. Assistance for the hearing
burden on competition; and (iii) become of filing of the proposed rule change, or such
operative for 30 days from the date on shorter time as designated by the Commission. 31 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 16:47 Mar 20, 2017 Jkt 241001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\21MRN1.SGM 21MRN1](https://thefederalregister.org/doc/82_FR_14642/page/6.svg)
Document Created: 2017-03-21 01:09:35
Document Modified: 2017-03-21 01:09:35
| 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 | 82 FR 14589 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR