Page Range | 25715-25930 | |
FR Document |
Page and Subject | |
---|---|
82 FR 25929 - National Ocean Month, 2017 | |
82 FR 25927 - National Homeownership Month, 2017 | |
82 FR 25925 - National Caribbean-American Heritage Month, 2017 | |
82 FR 25923 - Great Outdoors Month, 2017 | |
82 FR 25921 - African-American Music Appreciation Month, 2017 | |
82 FR 25801 - Sunshine Act Meetings | |
82 FR 25740 - Updates to Comply With the FOIA Improvement Act of 2016 and Other Technical Amendments; Final Rule; Correction | |
82 FR 25801 - Proposed Agency Information Collection Activities; Comment Request | |
82 FR 25734 - Approval and Promulgation of State Plans for Designated Facilities and Pollutants: Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming; Negative Declarations | |
82 FR 25753 - Approval and Promulgation of State Plans for Designated Facilities and Pollutants: Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming; Negative Declarations | |
82 FR 25728 - Safety Zone; City of Valdez July 4th Fireworks, Port Valdez; Valdez, AK | |
82 FR 25790 - Chemical Data Reporting; Requirements for Inorganic Byproduct Chemical Substances; Notice of Establishment of Negotiated Rulemaking Committee; Notice of Public Meetings | |
82 FR 25779 - Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance of a Settlement Agreement and Order | |
82 FR 25902 - Nevada Disaster #NV-00046 | |
82 FR 25903 - 2016 Tax Information for use In the Revenue Shortfall Allocation Method | |
82 FR 25771 - Pure Magnesium From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2015-2016 | |
82 FR 25771 - Carbon and Alloy Steel Wire Rod From Italy and the Republic of Turkey: Postponement of Preliminary Determinations of Countervailing Duty Investigations | |
82 FR 25770 - Oil Country Tubular Goods From the People's Republic of China: Notice of Court Decision Not in Harmony With the Amended Final Determination of the Countervailing Duty Investigation | |
82 FR 25766 - Multilayered Wood Flooring From the People's Republic of China: Final Results of Antidumping Duty Administrative Review, Final Determination of No Shipments, and Final Partial Rescission of Antidumping Duty Administrative Review; 2014-2015 | |
82 FR 25773 - Multilayered Wood Flooring From the People's Republic of China: Final Results and Partial Rescission of Antidumping Duty New Shipper Reviews; 2014-2015 | |
82 FR 25779 - New England Fishery Management Council; Public Meeting | |
82 FR 25777 - New England Fishery Management Council; Public Meeting | |
82 FR 25895 - Order Making Fiscal Year 2017 Annual Adjustments to Transaction Fee Rates | |
82 FR 25755 - National Monitoring Plan for Native Bees: Stakeholder and Public Listening Session | |
82 FR 25727 - Drawbridge Operation Regulation; Gulf Intracoastal Waterway, Galveston, TX | |
82 FR 25816 - Agency Information Collection Activities; Proposed eCollection eComments Requested; Proposed Collection; Comments Requested: Form USM-164, Applicant Reference Check Questionnaire | |
82 FR 25779 - Agency Information Collection Activities: Comment Request | |
82 FR 25911 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Community Reinvestment Act Regulations | |
82 FR 25784 - Agency Information Collection Extension | |
82 FR 25913 - Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Capital Adequacy Standards | |
82 FR 25783 - Request for Information (RFI): Review of Draft Version of DOE Energy-Water Nexus State Policy Database | |
82 FR 25916 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Disclosure Requirements Associated With Supplementary Leverage Ratio | |
82 FR 25917 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Fair Housing Home Loan Data System Regulation | |
82 FR 25753 - Financial Responsibility for Motor Carriers, Freight Forwarders, and Brokers | |
82 FR 25904 - Environmental Impact Statement; Mobile and Baldwin Counties, Alabama | |
82 FR 25715 - Civil Monetary Penalty Inflation Adjustment | |
82 FR 25809 - Notice of Inventory Completion: U.S. Department of the Interior, Bureau of Reclamation, Mid-Pacific Regional Office, Sacramento, CA | |
82 FR 25786 - Notice of Commission Staff Attendance | |
82 FR 25786 - Records Governing Off-the-Record Communications; Public Notice | |
82 FR 25787 - Eagle Creek Hydro, LLC; Notice of Intent To File License Application, Filing of Pre-Application Document (PAD), Commencement of Pre-Filing Process, and Scoping; Request for Comments on the PAD and Scoping Document, and Identification of Issues and Associated Study Requests | |
82 FR 25798 - Information Collection Being Submitted for Review and Approval to the Office of Management and Budget | |
82 FR 25810 - United States and Mexico; United States Section; Notice of Availability of a Draft Supplemental Environmental Assessment: Flood Control Improvements to the Rio Grande Canalization Project From Vinton to Canutillo, El Paso County, Texas (Canutillo Phase II) | |
82 FR 25789 - Combined Notice of Filings #1 | |
82 FR 25785 - Tennessee Gas Pipeline Company, L.L.C.; Notice of Availability of the Environmental Assessment for the Proposed Lone Star Project | |
82 FR 25808 - Notice of Application for a Recordable Disclaimer of Interest for Lands Underlying the George River in Alaska | |
82 FR 25726 - National Performance Management Measures; Assessing Performance of the National Highway System, Freight Movement on the Interstate System, and Congestion Mitigation and Air Quality Improvement Program | |
82 FR 25905 - Transportation Asset Management Plan Development Processes Certification and Recertification Guidance; Transportation Asset Management Plan Consistency Determination Guidance | |
82 FR 25906 - Notice of Final Federal Agency Actions on Proposed Highway in California | |
82 FR 25802 - Notice of Proposals To Engage in or To Acquire Companies Engaged in Permissible Nonbanking Activities | |
82 FR 25909 - Cooper Tire & Rubber Company, Receipt of Petition for Decision of Inconsequential Noncompliance | |
82 FR 25908 - Arconic Wheel and Transportation Products, Receipt of Petition for Decision of Inconsequential Noncompliance | |
82 FR 25726 - Drawbridge Operation Regulation; Columbia River, Portland, OR and Vancouver, WA | |
82 FR 25727 - Drawbridge Operation Regulation; Lake Washington Ship Canal, Seattle, WA | |
82 FR 25799 - Information Collections Being Reviewed by the Federal Communications Commission | |
82 FR 25796 - Information Collections Being Submitted for Review and Approval to the Office of Management and Budget | |
82 FR 25794 - Information Collections Being Submitted for Review and Approval to the Office of Management and Budget | |
82 FR 25817 - Agency Information Collection Activities; Submission for OMB Review; Comment Request; Housing Occupancy Certificate-Migrant and Seasonal Agricultural Worker Protection Act | |
82 FR 25811 - Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; Friction Ridge Cards: Arrest and Institution FD-249; Applicant FD-258; Personal Identification FD-353; FBI Standard Palm Print FD-884; Supplemental Finger and Palm Print FD-884a | |
82 FR 25818 - Agency Information Collection Activities; Submission for OMB Review; Comment Request; Gear Certification Standard | |
82 FR 25907 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel GUSTO!; Invitation for Public Comments | |
82 FR 25907 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel COCONUT; Invitation for Public Comments | |
82 FR 25801 - Update to Notice of Financial Institutions for Which the Federal Deposit Insurance Corporation Has Been Appointed Either Receiver, Liquidator, or Manager | |
82 FR 25794 - Cross-Media Electronic Reporting: Authorized Program Revision Approval, State of Utah | |
82 FR 25807 - Current List of HHS-Certified Laboratories and Instrumented Initial Testing Facilities Which Meet Minimum Standards To Engage in Urine Drug Testing for Federal Agencies | |
82 FR 25775 - Open Meeting of the Information Security and Privacy Advisory Board | |
82 FR 25870 - Dreyfus ETF Trust | |
82 FR 25827 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing of Proposed Rule Change in Connection With a System Migration to Nasdaq INET Technology | |
82 FR 25872 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT | |
82 FR 25820 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT | |
82 FR 25863 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Proposed Rule Change To Eliminate Requirements That Will Be Duplicative of CAT | |
82 FR 25837 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BYX Exchange, Inc. | |
82 FR 25894 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees | |
82 FR 25856 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Rules 5220 and 9560 and Amend Rule 8313 | |
82 FR 25879 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adopting New NYSE Arca Rule 11.21 and NYSE Arca Equities Rule 5220, NYSE Arca Rule 10.18 and NYSE Arca Equities Rule 10.16, and Amending NYSE Arca Rule 10.17 and NYSE Arca Equities 10.15 | |
82 FR 25862 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 7730 To Make Available a New End-of-Day TRACE Transaction File | |
82 FR 25887 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adopting Rules 5220-Equities, 996NY Options and 9560 and Amending Rule 8313 | |
82 FR 25804 - National Institute of General Medical Sciences; Notice of Closed Meeting | |
82 FR 25805 - National Institute on Aging; Notice of Closed Meetings | |
82 FR 25806 - National Institute of Diabetes and Digestive and Kidney Diseases; Notice of Closed Meetings | |
82 FR 25803 - National Institute of Diabetes and Digestive and Kidney Diseases; Notice of Closed Meetings | |
82 FR 25803 - Notice of Diabetes Mellitus Interagency Coordinating Committee Meeting | |
82 FR 25806 - Government-Owned Inventions; Availability for Licensing | |
82 FR 25804 - Prospective Grant of Exclusive Patent License: Production of Attenuated West Nile Virus Vaccines | |
82 FR 25902 - National Small Business Development Centers Advisory Board | |
82 FR 25819 - Privacy Act of 1974; System of Records | |
82 FR 25761 - Notice of Updated Information Concerning the Mountain Valley Pipeline Project and Equitrans Expansion Project and the Associated Forest Service Land and Resource Management Plan Amendments | |
82 FR 25811 - Certain Network Devices, Related Software and Components Thereof (II) Notice of Correction Concerning; Final Determination of Violation of Section 337; Termination of Investigation; Issuance of Limited Exclusion Order and Cease and Desist Order | |
82 FR 25728 - Safety Zones; Annual Events Requiring Safety Zones in the Captain of the Port Lake Michigan Zone-Michigan City Summerfest Fireworks, Lake Michigan | |
82 FR 25739 - Suspension of Community Eligibility | |
82 FR 25756 - Notice of Updated Information Concerning the Atlantic Coast Pipeline Project and Supply Header Project and the Associated Forest Service Land and Resource Management Plan Amendments | |
82 FR 25759 - Payette and Boise National Forests; Valley County, Idaho; Stibnite Gold Project Environmental Impact Statement | |
82 FR 25764 - Grand Mesa, Uncompahgre and Gunnison National Forests; Delta, Garfield, Gunnison, Hinsdale, Mesa, Montrose, Ouray, Saguache and San Miguel Counties; Colorado; Assessment Report of Ecological, Social and Economic Conditions, Trends and Sustainability for the Grand Mesa, Uncompahgre and Gunnison National Forests | |
82 FR 25902 - Biodiversity Beyond National Jurisdiction Public Meeting | |
82 FR 25904 - Notice of Opportunity for Public Comment on a Land Use Change From Aeronautical to Non-Aeronautical Use for Revenue Generation of 5 Acres of Airport Land at Nantucket Memorial Airport, Nantucket, MA | |
82 FR 25776 - New England Fishery Management Council; Public Meeting | |
82 FR 25730 - Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Grant of Reconsideration and Partial Stay | |
82 FR 25812 - Privacy Act of 1974; System of Records | |
82 FR 25773 - Biodiesel From Argentina and Indonesia: Postponement of Preliminary Determinations of Countervailing Duty Investigations | |
82 FR 25723 - Airworthiness Directives; Rolls-Royce plc Turbofan Engines | |
82 FR 25744 - Airworthiness Directives; The Boeing Company Airplanes | |
82 FR 25746 - Airworthiness Directives; Bombardier, Inc., Airplanes | |
82 FR 25716 - Federal Home Loan Bank Membership for Non-Federally-Insured Credit Unions | |
82 FR 25742 - Airworthiness Directives; Northrop Grumman LITEF GmbH LCR-100 Attitude and Heading Reference System Units | |
82 FR 25748 - Airworthiness Directives; Sikorsky Aircraft Corporation Helicopters | |
82 FR 25751 - Privacy Act of 1974; Implementation |
Forest Service
International Trade Administration
National Institute of Standards and Technology
National Oceanic and Atmospheric Administration
Energy Information Administration
Federal Energy Regulatory Commission
National Institutes of Health
Substance Abuse and Mental Health Services Administration
Coast Guard
Federal Emergency Management Agency
Land Management Bureau
National Park Service
Federal Bureau of Investigation
United States Marshals Service
Federal Aviation Administration
Federal Highway Administration
Federal Motor Carrier Safety Administration
Maritime Administration
National Highway Traffic Safety Administration
Comptroller of the Currency
Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.
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Merit Systems Protection Board.
Final rule.
This final rule adjusts the level of civil monetary penalties (CMPs) in regulations maintained and enforced by the Merit Systems Protection Board (MSPB) with both an initial “catch-up” and annual adjustment under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act) and Office of Management and Budget (OMB) guidance.
Jennifer Everling, Acting Clerk of the Board, Merit Systems Protection Board, 1615 M Street NW., Washington, DC 20419; Phone: (202) 653-7200; Fax: (202) 653-7130; or email:
The Federal Civil Penalties Inflation Adjustment Act of 1990 (the 1990 Act), Public Law 101-410, provided for the regular evaluation of CMPs by Federal agencies. Periodic inflationary adjustments of CMPs ensure that the consequences of statutory violations adequately reflect the gravity of such offenses and that CMPs are properly accounted for and collected by the Federal government. In April 1996, the 1990 Act was amended by the Debt Collection Improvement Act of 1996 (the 1996 Act), Public Law 104-134, which required Federal agencies to adjust their CMPs at least once every four years. However, because inflationary adjustments to CMPs were statutorily capped at ten percent of the maximum penalty amount, but only required to be calculated every four years, CMPs in many cases did not correspond with the true measure of inflation over the preceding four-year period, leading to a decline in the real value of the penalty. To remedy this decline, the 2015 Act (section 701 of Pub. L. 114-74) requires agencies to adjust CMP amounts with an initial “catch-up” adjustment and make subsequent annual inflationary adjustments through a rulemaking using a methodology mandated by the legislation. The purpose of these adjustments is to maintain the deterrent effect of civil penalties.
A civil monetary penalty is “any penalty, fine, or other sanction” that: (1) “is for a specific amount” or “has a maximum amount” under Federal law; and (2) that a Federal agency assesses or enforces “pursuant to an administrative proceeding or a civil action in the Federal courts.”
The MSPB is authorized to assess CMPs pursuant to 5 U.S.C. 1215(a)(3) and 5 U.S.C. 7326 in disciplinary actions brought by the Special Counsel. The corresponding MSPB regulation for both CMPs is 5 CFR 1201.126(a). As required by the 2015 Act, and pursuant to guidance issued by the OMB, the MSPB is now making a one-time catch-up adjustment to the CMPs within its jurisdiction, as well as an annual adjustment for 2017, according to the prescribed formulas.
Shortly after enactment of the 2015 Act, OMB issued guidance on calculating the catch-up adjustment.
Nevertheless, the 2015 Act specifies that the catch-up adjustment amount will in no case exceed 150% of the penalty amount which was in force at the enactment date of the 2015 Act. Therefore, the total catch-up penalty amount will not exceed 250% of the total maximum penalty amount on November 2, 2015.
The CMP listed in 5 U.S.C. 1215(a)(3) was established in 1978 with the enactment of the Civil Service Reform Act of 1978 (CSRA), Public Law 95-454, section 202(a), 92 Stat. 1121-30 (Oct. 13, 1978), and originally codified at 5 U.S.C. 1207(b). That CMP was last amended by section 106 of the Whistleblower Protection Enhancement Act of 2012, Public Law 112-199, 12 Stat. 1468 (Nov. 27, 2012), now codified at 5 U.S.C. 1215(a)(3), which provided for a CMP “not to exceed $1,000”. Thus, the 2012 amendment of the CSRA serves as the base figure for the inflation calculation. Between October 2012 and October 2015, the CPI-U has increased by 102.819 percent. The post-catch-up adjustment penalty amount is obtained by multiplying the pre-adjustment penalty amount by the percent change in the CPI-U over the relevant time period, and rounding to the nearest dollar. Therefore, the maximum post-catch-up adjustment penalty under the CSRA is $1,000 × 1.02819 = $1,028.19, which rounds to $1,028. The post-catch-up adjustment penalty is less than 250 percent of the pre-adjustment penalty, so the limitation on the amount of the adjustment under section 4(b) of the 2015 Act is not implicated.
The CMP authorized in 5 U.S.C. 7326 was established in 2012 by section 4 of the Hatch Act Modernization Act of 2012 (Hatch Act), Public Law 112-230, 126 Stat. 1617 (Dec. 28, 2012), which provided for a CMP “not to exceed $1,000.” Thus, the maximum post-catch-up adjustment penalty under the Hatch Act is $1,028.
OMB also issued guidance on calculating the annual inflationary adjustment for 2017.
The revised CMP amounts will go into effect on June 5, 2017. All violations for which CMPs are assessed after the effective date of this rule will be assessed at the adjusted penalty level regardless of whether the violation occurred before the effective date.
Pursuant to 5 U.S.C. 553(b), the MSPB has determined that good cause exists for waiving the general notice of proposed rulemaking and public comment procedures as to these technical amendments. The notice and comment procedures are being waived because Congress has specifically exempted agencies from these requirements when implementing the 2015 Act. The 2015 Act requires agencies to adjust CMPs with an initial catch-up adjustment through an interim final rule, which does not require the agency to complete a notice and comment process prior to promulgating the interim final rule. The 2015 Act also explicitly requires the agency to make subsequent annual adjustments notwithstanding 5 U.S.C. 553, the section of the Administrative Procedure Act that normally requires agencies to engage in notice and comment. It is also in the public interest that the adjusted rates for CMPs under the CSRA and the Hatch Act become effective as soon as possible to maintain their effective deterrent effect.
The MSPB has determined that this is not a significant regulatory action under Executive Order 12866. Therefore, no regulatory impact analysis is required.
The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule.
Thus, the RFA does not apply to this final rule.
This rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)). This rule:
(a) Does not have an annual effect on the economy of $100 million or more;
(b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; and
(c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises.
This rule does not involve a Federal mandate that may result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more and that such rulemaking will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532).
This rule does not have takings implications.
This rule does not have federalism implications. The rule does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.
The MSPB has reviewed this rule in light of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden.
In accordance with Executive Order 13175, the MSPB has evaluated this rule and determined that it has no tribal implications.
This document does not contain information collection requirements subject to the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. Chapter 35).
Administrative practice and procedure, Civil rights, Government employees.
For the reasons set forth above, 5 CFR part 1201 is amended as follows:
5 U.S.C. 1204, 1305, and 7701, and 38 U.S.C. 4331, unless otherwise noted.
Federal Housing Finance Agency.
Final rule.
The Federal Housing Finance Agency (FHFA or Agency) is adopting a final rule revising its regulation governing Federal Home Loan Bank (Bank) membership to implement section 82001 of the Fixing America's Surface Transportation Act (FAST Act), which amended the Federal Home Loan Bank Act (Bank Act) to authorize certain credit unions without Federal share insurance to become Bank members.
Eric M. Raudenbush, Associate General Counsel, Office of General Counsel,
Under the Bank Act, federally insured depository institutions, including state- and federally chartered credit unions whose member accounts are insured by the National Credit Union Share Insurance Fund (NCUSIF), have been eligible for Bank membership since 1989. Until recently, however, state-chartered credit unions without Federal share insurance were ineligible for Bank membership, except to the limited extent that a credit union certified as a “community development financial institution” (CDFI) by the CDFI Fund of the United States Department of the Treasury could meet the eligibility requirements applicable to CDFIs.
In December 2015, Congress amended the Bank Act to authorize the Banks to approve applications for membership from state-chartered credit unions without Federal share insurance (irrespective of their CDFI status) where specified requirements have been met.
On September 28, 2016, FHFA published in the
The 60-day comment period for the proposed rule ended on November 28, 2016. FHFA received eight comment letters from seven separate commenters, which included one Bank, one provider of private credit union share insurance, and five credit union trade associations.
Three commenters raised an issue regarding the treatment of NFICU members by the Banks that was not addressed in the proposed rule, which focused exclusively on membership requirements for NFICUs. Those commenters expressed concerns that Banks currently may be imposing on NFICUs advances collateral requirements that are more stringent than those for federally insured depository institution members—for example, by requiring that NFICU members deliver collateral to the Bank or by imposing higher discounts on collateral after an existing member terminates its federal insurance—and asked that the final rule prohibit such practices.
FHFA declines to amend its regulations to address those practices, in part because the request goes beyond the scope of the proposed rule and thus cannot be addressed in the final rule. Moreover, while FHFA's collateral regulations implement statutory requirements and establish minimum standards necessary to ensure the safety and soundness of the Banks, those regulations otherwise permit each Bank to make its own decisions regarding the terms on which it will lend to its members, including the amounts and types of collateral it will accept from particular members, the discounts on such collateral, and whether a member must deliver collateral to the Bank. This long-standing regulatory approach recognizes that the Banks are in the best position to assess the credit risks posed by particular members or by particular types of members within their
Notwithstanding that section 4(a)(5) of the Bank Act provides that the Banks' security interests in NFICU collateral are to have some of the same protections and priorities that apply to interests in collateral pledged by federally insured depository institutions, a Bank might reasonably conclude that there remain additional risks inherent in lending to NFICUs, arising principally from the fact that the Banks have had no experience with the liquidation of a non-federally insured credit union. While the laws governing liquidation of federally insured credit unions are well known to the Banks and are uniform across the country, the Banks are less familiar with the laws governing the insolvency and liquidation of NFICUs, which will vary from state to state. Although the Banks have significant numbers of state-chartered credit union members, any that have failed to date would have been federally insured and, therefore, would have been liquidated by the National Credit Union Association (NCUA). If a Bank concludes that the characteristics of NFICUs give rise to incrementally greater risk that it should address through more stringent collateral requirements, then FHFA would not prevent it from imposing those requirements.
An analysis of the primary revisions made by the final rule to FHFA's membership regulation appears below, followed by a discussion of the conforming revisions. Except as discussed below with respect to the timing of communications between an NFICU and its state credit union regulator during the membership application process, this final rule adopts without substantive change all of the regulatory additions and revisions set forth in the proposed rule. As described in more detail below, the final rule also makes a number of conforming revisions to other sections of the membership regulation, each of which appeared in identical form in the proposed rule.
The principal regulatory provisions regarding NFICUs include a new § 1263.19, setting forth the prerequisites that must be met in order for an NFICU to be treated as an insured depository institution for Bank membership purposes, as well as two substantive definitions located in § 1263.1.
The final rule adds to § 1263.1 a definition of “non-federally-insured credit union,” defining the term to mean a “State-chartered credit union that does not have Federal share insurance and that has not been certified as a CDFI by the CDFI Fund.” In conjunction with this, the rule also revises the definition of “insured depository institution” to include, in addition to federally insured depository institutions, NFICUs meeting the prerequisites of § 1263.19. As an “insured depository institution” under the revised regulation, a qualifying NFICU applying for Bank membership is subject to all of the eligibility requirements and other provisions of the membership regulation that apply to insured depository institutions generally, except where otherwise provided. Thus, a qualifying NFICU applicant is eligible for membership only if: It is duly organized under Federal or state law; it is subject to inspection and regulation under Federal or state banking laws, or similar laws; it makes long-term home mortgage loans; its financial condition is such that advances may be safely made to it (hereinafter the “financial condition” requirement); its management and its home financing policy are both consistent with sound and economical home financing; and it has at least 10 percent of its assets in “residential mortgage loans.”
As proposed, the final rule adds to the membership regulation a new § 1263.19 (a reserved section under the existing regulation), which sets forth the prerequisites that an NFICU must meet in order to be treated as an insured depository institution for purposes of determining its eligibility for Bank membership. Paragraph (a) of new § 1263.19 addresses the treatment of NFICUs that apply for Bank membership, while paragraph (b) addresses the status of any credit union that is already a Bank member at the time it opts to become an NFICU by canceling its Federal share insurance.
In parallel with the inclusion of qualifying NFICUs within the regulatory definition of “insured depository institution,” new § 1263.19(a) provides that an NFICU applicant shall be treated as an insured depository institution for purposes of determining its eligibility for membership, provided that it complies with all of the requirements of § 1263.19(a)(1) through (3).
As proposed, these provisions would have required that a Bank first obtain from an NFICU applicant all of the information that the Bank generally requires to process membership applications from federally insured depository institutions, including all of the information needed to demonstrate compliance with the general eligibility requirements for Bank membership. Once in receipt of all of those materials, the Bank would have been required to notify the NFICU that its application is “provisionally complete” and that, before the Bank may act on the application, the NFICU must: (1) Request from its state regulator a determination that the institution met all eligibility requirements for Federal share insurance, as of the date of the request; and (2) subsequently, provide
FHFA received comments on both the required timing of an NFICU's request for a determination from its state regulator and the type of documentation of that determination a Bank must receive to deem an NFICU's application complete under proposed § 1263.19(a). On the timing issue, several commenters requested that the final rule permit an NFICU applicant to request the determination from its state regulator at any time after initiating the membership application process, instead of waiting until the Bank has deemed the application provisionally complete, as would have been required under the proposed rule. Those commenters expressed a belief that most NFICUs would be inclined to request the determination early in the application process to enable the Bank to make a decision on the membership application at the earliest possible time.
With regard to timing requirements for the NFICU application process, the Bank Act uses the undefined term “date of the application” in establishing both the point in time as of which the state regulator must determine the NFICU's eligibility for Federal share insurance and the starting point of the six-month period during which the Bank and NFICU must await action by the state regulator. Specifically, section 4(a)(5) requires a Bank to treat an NFICU applicant as a federally insured depository institution if the NFICU's state credit union regulator either: (1) Has determined that the NFICU met all the eligibility requirements for Federal share insurance “as of the date of the application for membership”; or (2) has failed to make a determination “by the end of the 6-month period beginning on the date of the application.” In its April 2016 guidance letters to the Banks, FHFA construed the statutory term “date of the application” to be the date as of which the NFICU had submitted a “provisionally complete” application—that is, an application including all information and supporting materials required for the Bank to act on it, except for the documentation regarding the state regulator's determination. Although the proposed rule did not use the term “date of the application,” the proposed requirement that an NFICU wait until after the Bank has deemed its application provisionally complete to submit the request to its state regulator is based on the construction of that term adopted in the guidance letters.
The proposed rule would have required the state regulator's eligibility determination to have been made as of the date of the NFICU's request and would have measured the six-month waiting period from the date of the request. Section 4(a)(5) of the Bank Act does not expressly require that either a Bank or an NFICU applicant request a determination from the NFICU's state regulator. But, in that the statute allows a state regulator six months within which to make a determination if it wishes to do so, it is most reasonably read as presuming that the regulator has in the first instance been asked to make a determination. The proposed rule's use of the date of the NFICU's request for a determination, instead of the date the Bank notified the NFICU that its application is provisionally complete, to set both the date as of which the regulator's determination should be made and the starting date of the six-month waiting period reflected this reading of the statute.
Given the ambiguity of the statute on the issue, FHFA may reasonably construe the “date of the application” to be a point in the application process that is earlier than the date on which the Bank deems an NFICU's application to be provisionally complete, as requested by some commenters. FHFA had two principal reasons for proposing to require that an NFICU submit a provisionally complete application prior to officially requesting a determination from its state regulator. The first was to provide some reasonable assurance that an NFICU applicant actually was committed to completing the application process prior to requiring it to submit a request to its state regulator. The second was that the concept of a “complete” membership application and the requirement that a Bank notify an applicant after deeming its application complete are already well established under the existing membership regulation.
FHFA is persuaded, however, that allowing an NFICU to request a determination at an earlier stage in the membership application process would result in a more efficient process than would the approach of the proposed rule. Accordingly, FHFA has revised the final rule to permit an NFICU applicant to submit its official request for a determination to its state regulator at any time after it has submitted its application to the Bank to initiate the membership application process. As under the proposed rule, the six-month waiting period will start on, and the state regulator must make the Federal share insurance eligibility determination as of, the date that the applicant submits the request to its state regulator. Specifically, § 1263.19(a)(1) of the final rule requires that, after an NFICU initiates the membership application process, the Bank promptly notify the applicant in writing that its application will not be deemed complete or be acted upon by the Bank until the applicant has, in addition to satisfying all other application requirements, requested a determination from its state regulator as required under paragraph (a)(2) and subsequently provided one of the types of acceptable documentation listed in paragraph (a)(3). Section 1263.19(a)(2) and (3) of the final rule are substantively unchanged from the proposed provisions.
As does the final provision, proposed § 1263.19(a)(3) would have required a Bank to deem an NFICU's application complete after having received any one of three types of documentation regarding the response or lack of response of the applicant's state regulator to its request for a Federal share insurance eligibility determination. As noted above, one of those types of documentation is a written statement from the regulator to the NFICU applicant that the regulator is unable or unwilling to make such a determination. One commenter requested that the final rule also include a fourth option under which a Bank could deem an application fully complete if the applicant's state regulator had previously provided direct written notification to the Bank that it
For three principal reasons, FHFA has decided not to provide for the recommended option in the final rule. First, doing so would further complicate what is already somewhat complicated regulatory text.
In addition, FHFA does not believe that adopting this recommendation would reduce the burden on the state regulators to any meaningful degree. The only burden that the proposed rule would have imposed on the state regulator in this respect is to provide individual responses to requests received from its credit unions, which could be easily accomplished by means of a form letter.
Mirroring the proposed rule, final § 1263.19(b) makes clear that an existing credit union Bank member that cancels its Federal share insurance may remain a member of its Bank as an NFICU without requesting a Federal share insurance eligibility determination from its state regulator, provided the Bank determines that the member has canceled its Federal share insurance voluntarily. A Bank could make this determination by obtaining a copy of the NCUA's approval of the credit union's request to terminate its Federal insurance.
Two commenters took issue with the use of the word “cancel” in proposed § 1263.19(b), as well as with the use of the word “terminate” in the proposed rule preamble, in describing the process a federally insured credit union would undertake in becoming an NFICU. Those commenters requested that the final rule instead describe the process as “converting” from Federal share insurance to private share insurance.
As the commenters noted, under the regulations of the NCUA, the word “convert” refers to “the act of canceling federal insurance and simultaneously obtaining insurance from another insurance carrier,” while the word “terminate” refers to “the act of canceling federal insurance and mean[s] that the credit union will become uninsured.”
As a legal matter, however, section 4(a)(5) of the Bank Act does not require a credit union to have private share insurance to become a Bank member through the NFICU process. The statutory provision refers to “credit union[s] which lack[ ] Federal deposit insurance” and does not require coverage by private, or other non-federal, share insurance as a prerequisite to qualifying for treatment as a federally insured depository institution for Bank membership purposes.
If FHFA were to accept the commenters' suggestion and revise the rule to refer to members that have “converted,” the rule would then appear to impose upon existing members a private share insurance requirement that is not imposed by the statute. As indicated in the definitions quoted above, the NCUA's regulations use the undefined word “cancel” to refer generically to the relinquishing of federal share insurance coverage without connoting either the existence or lack of an alternative form of share insurance. Accordingly, the final rule continues to describe members that become NFICUs as those that voluntarily “cancel” their federal share insurance.
In addition to the primary revisions, the final rule makes a number of conforming revisions to part 1263.
In addition to the substantive amendments to § 1263.1 that are discussed above, the final rule makes several amendments to that section that are intended merely to provide greater clarity, without effecting any substantive change. The final rule adds a definition for the term “Federal share insurance” that is identical to the definition appearing in the proposed rule and adopts verbatim the proposed revisions to the definitions of “CDFI credit union,” “community development financial institution or CDFI,” and “regulatory financial report.”
The final rule adopts without change the two revisions to § 1263.2 of the existing regulation that appeared in the proposed rule. The final rule revises § 1263.2(b), which requires a Bank to prepare a written membership application digest for each applicant, to expressly require a Bank to include in the application digest for each NFICU applicant a summary of the manner in which the applicant has complied with the requirements of § 1263.19(a). The final rule also revises § 1263.2(c), which requires a Bank to maintain a membership file for each applicant, to make clear that a Bank should include in the file for an NFICU applicant any documents required under § 1263.19.
Existing § 1263.11 governs the manner in which Banks are to determine whether depository institution applicants, including insured depository institutions and CDFI credit unions, are in compliance with the statutory “financial condition” eligibility requirement. As proposed, the final rule revises § 1263.11 to require a Bank to assess an NFICU applicant's compliance with the “financial condition” membership eligibility requirement in the same manner as is required for CDFI credit unions.
The existing provision allows a Bank to deem a depository institution applicant in compliance with the financial condition requirement if: (1) The applicant has received a composite examination rating within the past two years; (2) it meets its regulatory capital requirements; and (3) its most recent composite examination rating was “1,” or the most recent rating was “2” or “3” and the applicant satisfies certain “performance trend criteria” pertaining to its earnings, nonperforming assets, and allowance for loan and lease losses.
As the final rule does, the proposed rule would have revised § 1263.11 to treat NFICUs in the same way as CDFI credit unions by requiring all NFICU applicants, including those that had received a composite examination rating of “1” from their state regulators, also to satisfy the performance trend criteria. The rationale behind this approach is that both CDFI credit unions and NFICUs are state-chartered credit unions without federal share insurance, which warrants treating them in the same way for purposes of assessing their financial condition. Six commenters requested that the final rule treat NFICU applicants in the same manner as federally insured credit unions by exempting NFICUs with an examination rating of “1” from complying with the performance trend criteria. FHFA has declined to make that change.
When FHFA amended the membership regulation to accommodate CDFIs as members, it described its decision to require even “1” rated CDFI credit unions to satisfy the performance trend criteria as a prudential measure.
Given the Banks' scant experience with state-chartered credit unions that do not have federal share insurance, it remains prudent to require all such applicants—that is, both CDFI credit unions and NFICUs—to meet the performance trend criteria as part of satisfying the “financial condition” eligibility requirement. Moreover, assessing compliance with the performance trend criteria is a relatively straightforward exercise, requiring only that a Bank confirm that an applicant has positive net income and that its nonperforming assets and its allowance for loan and lease losses meet certain specified ratios. As the Banks gain more experience with admitting these types of members, FHFA could reconsider this requirement.
Existing § 1263.31 sets forth a number of stipulations to which each Bank member is deemed to have agreed as a condition precedent to becoming a Bank member. The final rule adopts without change the revisions to paragraphs (b) and (e) of that section that appeared in the proposed rule. Existing § 1263.31(b) deems each Bank member to have agreed that the appropriate local, state, or Federal agencies or institutions may furnish the member's reports of examination to the Bank or to FHFA upon request. The final rule revises that provision to stipulate that each member that is an NFICU or a CDFI credit union is also deemed to have agreed that a private entity providing the member with share insurance may furnish such reports. Existing § 1263.31(e) deems each Bank member to have agreed to provide the Bank, within 20 days of filing, with copies of reports of condition and operations filed with its appropriate Federal banking agency. The final rule revises that provision to stipulate that each member is also deemed to have agreed to furnish copies of any reports of condition and operations it may be required to file with its appropriate state regulator and that each NFICU or CDFI credit union member is deemed to have agreed to provide copies of any such reports required to be filed with a private entity providing it with share insurance.
Section 1313(f) of the Safety and Soundness Act requires the Director of FHFA, when promulgating regulations
The Paperwork Reduction Act of 1995 (PRA) requires that FHFA consider the impact of paperwork and other information collection burdens imposed on the public.
The Regulatory Flexibility Act
Federal home loan banks, Reporting and recordkeeping requirements.
For the reasons stated in the
12 U.S.C. 1422, 1423, 1424, 1426, 1430, 1442, 4511, 4513.
The revisions and additions read as follows:
(1) An insured depository institution as defined in section 2(9) of the Bank Act, as amended (12 U.S.C. 1422(9)); and
(2) To the extent provided under § 1263.19, a non-federally-insured credit union.
(a)
(1)
(2)
(3)
(i) A written statement from the applicant's appropriate State regulator that the applicant met all of the eligibility requirements for Federal share insurance as of the date of the request sent pursuant to paragraph (a)(2) of this section;
(ii) A written statement from the applicant's appropriate State regulator that it cannot or will not make a determination regarding the applicant's eligibility for Federal share insurance; or
(iii) A written statement from the applicant, prepared no earlier than the end of the six-month period beginning on the date of the request sent pursuant to paragraph (a)(2) of this section, certifying that the applicant did not receive from its appropriate State regulator within that six-month period either a response as described in paragraph (a)(3)(i) or (ii) of this section or a response stating that the applicant did not meet all of the eligibility requirements for Federal share insurance as of the date of the request sent pursuant to paragraph (a)(2) of this section.
(b)
(b) Agrees that reports of examination by local, State, or Federal agencies or institutions, or by any private entity providing share insurance to a member that is a non-federally-insured credit union or a CDFI credit union, may be furnished by such authorities or entities to the Bank or FHFA upon request;
(e) To the extent applicable, agrees to provide to the Bank, within 20 days of filing, copies of reports of condition and operations required to be filed with:
(1) The member's appropriate Federal banking agency;
(2) The member's appropriate State regulator; or
(3) Any private entity providing share insurance to a member that is a non-federally-insured credit union or a CDFI credit union.
Federal Aviation Administration (FAA), DOT.
Final rule.
We are superseding airworthiness directive (AD) 2015-17-19 for all Rolls-Royce plc (RR) RB211 Trent 768-60, 772-60, and 772B-60 turbofan engines. AD 2015-17-19 required inspection of the fan case low-pressure (LP) fuel tubes and associated clips and the fuel oil heat exchanger (FOHE) mounts and associated hardware. This AD requires an engine modification, which terminates the repetitive inspections. This AD was prompted by fractures on the LP fuel return tube at mid-span locations that were found with resulting fuel leaks. We are issuing this AD to correct the unsafe condition on these products.
This AD is effective July 10, 2017.
The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of July 10, 2017.
For service information identified in this final rule, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, England, DE248BJ; phone: 011-44-1332-242424; fax: 011-44-1332-249936; email:
You may examine the AD docket on the Internet at
Wego Wang, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone:
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to supersede AD 2015-17-19, Amendment 39-18252 (80 FR 55232, September 15, 2015), (“AD 2015-17-19”). AD 2015-17-19 applied to the specified products. The NPRM published in the
We gave the public the opportunity to participate in developing this AD. We considered the comment received.
American Airlines (AA) requested a delay of the issuance of this AD until the issues related to RR Alert Service Bulletin (ASB) RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016, are resolved. AA is concerned that the difficulty of incorporating RR ASB RB.211-73-AJ366 might put an airliner at risk of hydraulic fluid loss and that the production output of RR might not meet the demand of required replacements in response to an anticipated aircraft-level AD that would mandate the replacement of single-welded dampers with double-welded dampers.
We disagree. We have determined that there are currently no issues with ASB RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016. We have also determined that complying with ASB RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016, will not increase the risk of hydraulic fluid loss. Additionally, RR has determined that it has the capacity to meet the demand for replacement parts. We did not change this AD.
We reviewed the available data, including the comment received, and determined that air safety and the public interest require adopting this AD as proposed.
RR has issued Alert Non-Modification Service Bulletin (NMSB) RB.211-73-AH522, Revision 4, dated January 18, 2016; Alert NMSB RB.211-73-AH837, Revision 1, dated November 6, 2015; and ASB RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016. Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016 describes procedures for inspecting and, if necessary, replacing worn rubber sections of the P-clip. Alert NMSB RB.211-73-AH837, Revision 1, dated November 6, 2015 describes procedures for inspecting and, if necessary, replacing the P-clip attaching bracket, supporting hardware, and LP fuel tube. ASB RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016 describes procedures for modification of the routing of fuel, oil, and hydraulic tube assemblies. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
RR has issued Service Bulletin RB.211-73-F343, Revision 4, dated May 26, 2011. This service information describes procedures for replacing the fuel tube assemblies and supporting hardware.
We estimate that this AD affects 108 engines installed on airplanes of U.S. registry. We also estimate that it would take about 6 hours per engine to perform the inspections in this AD. The average labor rate is $85 per hour. We also estimate that 54 of the engines will fail the inspections required by this AD. Replacement parts cost about $4,031 per engine.
We also estimate that it would take about 50 hours per engine to modify each engine. The modification would cost about $150,000 per engine. Based on these figures, we estimate the cost of this AD on U.S. operators to be $16,931,754.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify that this AD:
(1) Is not a “significant regulatory action” under Executive Order 12866,
(2) Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),
(3) Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction, and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA amends part 39 of the Federal Aviation Regulations (14 CFR part 39) as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD is effective July 10, 2017.
This AD supersedes AD 2015-17-19, Amendment 39-18252 (80 FR 55232, September 15, 2015), (“AD 2015-17-19”).
This AD applies to all Rolls-Royce plc (RR) RB211 Trent 768-60, 772-60, and 772B-60
This AD was prompted by fractures found on the low-pressure (LP) fuel return tube at mid span locations with resulting fuel leaks. We are issuing this AD to prevent failure of the fan case LP fuel tube, which could lead to an in-flight engine shutdown, loss of thrust control, and damage to the airplane.
Comply with this AD within the compliance times specified, unless already done.
(1) Within 800 flight hours (FH) after October 20, 2015 (the effective date of AD 2015-17-19), or prior to further flight, whichever occurs later, and thereafter at intervals not to exceed 800 FH, inspect the clip at the uppermost fan case LP fuel tube clip position, CP4881, and support bracket, P/N FW26692. Use Accomplishment Instructions, paragraph 3.A, of RR Alert Non-Modification Service Bulletin (NMSB) RB.211-73-AH837, Revision 1, dated November 6, 2015, or paragraph 3.A. or 3.B. of RR Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016, to do the inspection.
(i) If the clip at the uppermost clip position, CP4881, fails inspection, before further flight, replace the clip with a part eligible for installation and inspect the fan case LP fuel tube, P/N FW53576, for fretting, and clips for cracks or failure, according to Accomplishment Instructions, paragraph 3.A. of RR Alert NMSB RB.211-73-AH837, Revision 1, dated November 6, 2015, or paragraph 3.A. or 3.B. of RR Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016.
(ii) If the support bracket, P/N FW26692, fails inspection, before further flight, replace the bracket with a part eligible for installation and inspect the fan case LP fuel tube, P/N FW53576, and clips for cracks or failure, according to Accomplishment Instructions, paragraph 3.A. of RR Alert NMSB RB.211-73-AH837, Revision 1, dated November 6, 2015, or paragraph 3.A. or 3.B. of RR Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016.
(2) Within 4,000 FH since new or 800 FH after October 20, 2015 (the effective date of AD 2015-17-19), or prior to further flight, whichever occurs later, and thereafter at intervals not to exceed 4,000 FH, inspect the fan case LP fuel tube, P/N FW53576, and clips, and the fuel oil heat exchanger (FOHE) mounts and hardware, for damage, wear, or fretting. Use paragraph 3.A. or 3.B., Accomplishment Instructions, of RR Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016, to do the inspection.
(i) If the fan case LP fuel tube, P/N FW53576, fails inspection, before further flight, replace the fuel tube and clips with parts eligible for installation.
(ii) If any FOHE mount or hardware shows signs of damage, wear, or fretting, before further flight, replace the damaged part with a part eligible for installation.
(3) At each shop visit after the effective date of this AD, inspect the fan case LP fuel tubes, P/Ns FW26589, FW36335, FW26587, FW53577, and FW53576, and clips, and the FOHE mounts and hardware, for damage, wear, or fretting. Use paragraphs 3.B.(1) and 3.B.(2) of RR Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016, to do the inspection.
(i) If any fan case LP fuel tube fails inspection, before further flight, replace the fuel tube and clips with parts eligible for installation.
(ii) If any FOHE mount or hardware shows signs of damage, wear, or fretting, before further flight, replace the damaged part with a part eligible for installation.
(4) If you replace any fan case LP fuel tube, clip, FOHE mount, or hardware as a result of the inspections in paragraphs (e)(1), (2), or (3) of this AD, you must still continue to perform the repetitive inspections specified in paragraphs (e)(1), (2), and (3) of this AD, until you comply with paragraph (e)(6) of this AD.
(5) No reports requested in any of the Alert NMSBs that are referenced in paragraphs (e)(1), (2), and (3) of this AD are required by this AD.
(6) During the next shop visit after the effective date of this AD, modify the engine in accordance with the Accomplishment Instructions, paragraphs (B) and (C), Section 3, of RR Alert Service Bulletin (ASB) RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016.
(7) After the effective date of this AD, do not install an M07 module, unless it is modified in accordance with the Accomplishment Instructions, paragraphs (B) and (C), Section 3, of RR ASB RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016.
If, before the effective date of this AD, you performed the inspections and corrective actions required by paragraph (e) of this AD using RR NMSB RB.211-73-G848, Revision 3, dated June 12, 2014; or RR Alert NMSB RB.211-73-AH837, Revision 1, dated November 6, 2015; or paragraph 3.A. or 3.B. of RR Alert NMSB RB.211-73-AH522, Revision 4, dated January 18, 2016; or any earlier version of those NMSBs, you met the inspection requirements in paragraph (e) of this AD.
Modification of an engine, as required by paragraph (e)(6) of this AD, constitutes terminating action for the repetitive inspections required by paragraphs (e)(1), (2), (3), and (4) of this AD.
For the purposes of this AD:
(1) An “engine shop visit” is the induction of an engine into the shop for maintenance involving the separation of pairs of major mating engine flanges, except that the separation of engine flanges solely for the purposes of transportation without subsequent engine maintenance is not an engine shop visit.
(2) The fan case LP fuel tubes and clips, and the FOHE mounts and hardware, are eligible for installation if they have passed the inspection requirements of paragraphs (e)(1), (2), and (3) of this AD.
The Manager, Engine Certification Office, FAA, may approve AMOCs to this AD. Use the procedures found in 14 CFR 39.19 to make your request. You may email your request to:
(1) For more information about this AD, contact Wego Wang, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone: 781-238-7134; fax: 781-238-7199; email:
(2) Refer to MCAI European Aviation Safety Agency (EASA) AD 2016-0120, dated June 17, 2016, which supersedes EASA AD 2014-0243, Revision 1, dated December 10, 2014 and Correction dated March 23, 2015, for more information. You may examine the MCAI in the AD docket on the Internet at
(3) RR SB RB.211-73-F343, Revision 4, dated May 26, 2011, which is not incorporated by reference in this AD, can be obtained from Rolls-Royce plc, using the contact information in paragraph (k)(3) of this AD.
(5) You may view this service information at the FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.
(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
(2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise.
(i) Rolls-Royce plc (RR) Alert Non-Modification Service Bulletin (NMSB) RB.211-73-AH522, Revision 4, dated January 18, 2016.
(ii) RR Alert NMSB RB.211-73-AH837, Revision 1, dated November 6, 2015.
(iii) RR Alert Service Bulletin RB.211-73-AJ366, Initial Issue and Supplement, dated May 3, 2016.
(3) For RR service information identified in this AD, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, England, DE248BJ; phone: 011-44-1332-242424; fax: 011-44-1332-249936; email:
(4) You may view this service information at FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.
(5) You may view this service information at the National Archives and Records
Federal Highway Administration (FHWA), Department of Transportation (DOT).
Final regulation; delay of effective date; correction.
The FHWA is correcting a document that appeared in the
Effective June 5, 2017.
Christopher Richardson, Assistant Chief Counsel for Legislation, Regulations, and General Law, Office of Chief Counsel, Federal Highway Administration, 1200 New Jersey Avenue SE., Washington, DC 20590. Telephone: (202) 366-0761. Office hours are from 8:00 a.m. to 4:30 p.m. e.t., Monday through Friday, except Federal holidays.
A copy of the Notice of Proposed Rulemaking (NPRM), all comments received, the Final Rule, and all background material may be viewed online at
On May 19, 2017, at 82 FR 22879, FHWA published a document announcing the indefinite delay of specific portions of the National Performance Management Measures; Assessing Performance of the National Highway System, Freight Movement on the Interstate System, and Congestion Mitigation and Air Quality Improvement Program Final Rule (PM#3) (RIN 2125-AF54) and announced the initiation of additional regulatory proceedings for those portions. The portions subject to additional proceedings were misidentified as Title 49 provisions instead of Title 23 of the Code of Federal Regulations in the
In FR Doc. 2017-10092 appearing on page 22879 in the
On page 22879, in the first column, the
Coast Guard, DHS.
Notice of deviation from drawbridge regulation.
The Coast Guard has issued a temporary deviation from the operating schedule that governs the Interstate 5 (I-5) Bridges across the Columbia River, mile 106.5, between Portland, Oregon, and Vancouver, Washington. The deviation is necessary to facilitate the movement of heavier than normal roadway traffic associated with the Independence Day fireworks show near the I-5 Bridges. This deviation allows the bridges to remain in the closed-to-navigation position during the event.
This deviation is effective from 9 p.m. to 11:59 p.m. on July 4, 2017.
The docket for this deviation, USCG-2017-0453 is available at
If you have questions on this temporary deviation, call or email Mr. Steven Fischer, Bridge Administrator, Thirteenth Coast Guard District; telephone 206-220-7282, email
Oregon Department of Transportation (bridge owner) requested a temporary deviation from the operating schedule for the I-5 Bridges, mile 106.5, across the Columbia River between Vancouver, WA, and Portland, OR, to facilitate safe passage of participants in the Independence Day fireworks show event. The I-5 Bridges provides three designated navigation channels with vertical clearances ranging from 39 to 72 feet above
Vessels able to pass under the bridges in the closed-to-navigation positions may do so at any time. The bridge will be able to open for emergencies, and there is no immediate alternate route for vessels to pass. The Coast Guard will also inform the users of the waterways through our Local and Broadcast Notices to Mariners of the change in operating schedule for the bridge so that vessels can arrange their transits to minimize any impact caused by the temporary deviation.
In accordance with 33 CFR 117.35(e), the drawbridges must return to their regular operating schedule immediately at the end of the effective period of this temporary deviation. This deviation from the operating regulations is authorized under 33 CFR 117.35.
Coast Guard, DHS.
Notice of temporary deviation from drawbridge regulation.
The Coast Guard has issued a temporary deviation from the operating schedule that governs the Fremont Bridge, across the Lake Washington Ship Canal, mile 2.6, at Seattle, WA. The deviation is necessary to accommodate heavy pedestrian and cycling traffic across the bridge during the Northwest Tandem Rally event. This deviation allows the bridge to remain in the closed-to-navigation position and need not open to maritime traffic.
This deviation is effective from 8:15 a.m. to 8:45 a.m. on July 2, 2017.
The docket for this deviation, USCG-2017-0439 is available at
If you have questions on this temporary deviation, call or email Mr. Steven Fischer, Bridge Administrator, Thirteenth Coast Guard District; telephone 206-220-7282, email
Seattle Department of Transportation (SDOT) owns the Fremont Bridge, and has requested a temporary deviation from the operating schedule. The subject bridge crosses the Lake Washington Ship Canal at Seattle, WA, at mile 2.6. The deviation is necessary to accommodate heavy pedestrian and cycling traffic across the bridge during the Northwest Tandem Rally cycling event. To facilitate this event, the double bascule draw of the bridge need not open for vessel traffic from 8:15 a.m. to 8:45 a.m. on July 2, 2017. The Fremont Bridge provides a vertical clearance of 14 feet (31 feet of vertical clearance for the center 36 horizontal feet) in the close-to-navigation position. The clearance is referenced to the mean water elevation of Lake Washington. The normal operating schedule for the Fremont Bridge is at 33 CFR 117.1051. Waterway usage on the Lake Washington Ship Canal ranges from commercial tug and barge to small pleasure craft.
Vessels able to pass through the bridge in the closed-to-navigation position may do so at any time. The bridge will be able to open for emergencies, and there is no immediate alternate route for vessels to pass. The Coast Guard will also inform the users of the waterways through our Local and Broadcast Notices to Mariners of the change in operating schedule for the bridge so that vessels can arrange their transits to minimize any impact caused by the temporary deviation.
In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35.
Coast Guard, DHS.
Notice of deviation from drawbridge regulation.
The Coast Guard has issued a temporary deviation from the operating schedule that governs the Galveston Causeway Railroad Vertical Lift Bridge across the Gulf Intracoastal Waterway (GIWW), mile 357.2 West of Harvey Locks (WHL), at Galveston, Galveston County, Texas. The deviation is necessary to replace decking on the bridge. This deviation allows the bridge to remain in the closed-to-navigation position during the deviation period.
This deviation is effective from 7:30 a.m. on June 5, 2017 through 4:30 p.m. on June 8, 2017.
The docket for this deviation, [USCG-2017-0411] is available at
If you have questions on this temporary deviation, call or email Donna Gagliano, Bridge Administration Branch, Coast Guard; telephone 504-671-2128, email
The Burlington Northern Santa Fe Railway Company requested a temporary deviation from the operating schedule of the Galveston Causeway Railroad Vertical Lift Bridge across the GIWW, mile 357.2 WHL, at Galveston, Galveston County, Texas. The bridge has a vertical clearance of 8.0 feet above mean high water, elevation 3 feet of the North American Vertical Datum of 1988 (NAVD88) in the closed-to-navigation position, and 73 feet above mean high water in the open-to-navigation position. This bridge is governed by 33 CFR 117.5.
This deviation was requested to allow the bridge owner to replace decking
Navigation at the site of the bridge consists mainly of tows with barges and some recreational pleasure craft. The bridge can open in case of emergency. No alternate routes are available. The Coast Guard will inform the users of the waterway through our Local and Broadcast Notices to Mariners of the change in operating schedule for the bridge so that vessel operators can arrange transits to minimize any impact caused by the temporary deviation.
In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular operating schedule immediately at the end of the effective period of this temporary deviation. This deviation from the operating regulations is authorized under 33 CFR 117.35.
Coast Guard, DHS.
Notice of enforcement of regulation.
The Coast Guard will enforce the Michigan City Summerfest Fireworks Safety Zone on a portion of Lake Michigan on July 4, 2017. This action is necessary and intended to ensure safety of life and property on navigable waters prior to, during, and immediately after the fireworks display. During the enforcement period listed below, the Coast Guard will enforce restrictions upon, and control movement of, vessels that transit this regulated area with the approval from the Captain of the Port Lake Michigan Zone.
The regulation in 33 CFR 165.929 will enforce item listed as (e)(35) in Table 165.929 on July 4, 2017 from 8:45 p.m. until 9:45 p.m.
If you have questions about this notice of enforcement, call or email LT Lindsay Cook, Waterways Management Division, Marine Safety Unit Chicago, at 630-986-2155, email address
The Coast Guard will enforce the Michigan City Summerfest listed as item (e)(35) in Table 165.929 of 33 CFR 165.929 from 8:45 p.m. until 9:45 p.m. on July 4, 2017. This action is being taken to provide for the safety of life on a navigable waterway during the fireworks display. Section 165.929 lists many annual events requiring safety zones in the Captain of the Port Lake Michigan Zone. This safety zone encompasses all waters of Michigan City Harbor and Lake Michigan within the arc of a circle with a 1,000 foot radius from the launch site located in position 41°43.700′ N., 086°54.617′ W. During the enforcement period, no vessel may transit this regulated area without approval from the Captain of the Port Lake Michigan or a Captain of the Port Lake Michigan designated representative. Vessels and persons granted permission to enter the safety zone shall obey all lawful orders or directions of the Captain of the Port Lake Michigan, or his or her on-scene representative.
This notice of enforcement is issued under authority of 33 CFR 165.929, Safety Zones; Annual events requiring safety zones in the Captain of the Port Lake Michigan zone and 5 U.S.C. 552(a). In addition to this notice in the
Coast Guard, DHS.
Final rule.
The Coast Guard is establishing a permanent safety zone on the navigable waters of Port Valdez, Valdez, Alaska, in the vicinity of the Valdez Spit. The safety zone is necessary to protect persons and vessels from the hazards associated with the annual City of Valdez July 4th Fireworks Display event. This rule is intended to restrict vessels from a portion of the navigable waters of Port Valdez, in the immediate vicinity of the fireworks launch platforms, before, during, and immediately after the fireworks event.
This rule is effective July 3, 2017.
To view documents mentioned in this preamble as being available in the docket, go to
If you have questions on this rule, call or email Lieutenant Commander Walner W. Alvarez, Chief of Waterways Management Division, U.S. Coast Guard Marine Safety Unit Valdez; telephone (907) 835-7223, email
The Coast Guard began issuing temporary final rules establishing safety zones during the Valdez July 4th Fireworks Display. These temporary safety zones were established for each year's event beginning in 2014. The Coast Guard received no comments or
The purpose of this rule is to enhance the safety for spectators and mariners attending a community event that involves a relatively large fireworks display. The Coast Guard anticipates that a large number of spectators will congregate around the launch position during the display. The COTP, Prince William Sound has determined that the fireworks launched near a gathering of watercrafts may pose a significant risk to public safety and property. Such hazards include premature and accidental detonations, falling and burning debris, and vessels operating in close proximity to each other. The safety zone is necessary to provide for the safety of persons and vessels attending the event in the navigable waters in the vicinity of the fireworks launch site.
As noted above, we received nine comments on our NPRM published February 28, 2017. All of the commenters agreed that the fireworks display justified a safety zone, with several commenters highlighting the safety dangers that fireworks presented. Based on these comments, the Coast Guard is not making changes in the regulatory text of this rule. This rule establishes a permanent safety zone on the navigable waters of Port Valdez, within a 200 yard radius of the location where the fireworks will be launched on the Valdez Spit for the City of Valdez July 4th Fireworks Display. The safety zone is necessary to ensure the safety of spectators and vessels from hazards associated with fireworks displays. The fireworks displays are expected to occur between 10:00 p.m. and 11:00 p.m. In order to coordinate the safe movement of vessels within the area and to ensure that the area is clear of unauthorized persons and vessels before, during, and immediately after the fireworks launch, this zone will be enforced from 9:30 p.m. to 11:30 p.m. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the COTP, Prince William Sound or the designated representative. Vessels will be able to transit the surrounding area and may be authorized to transit through the safety zone with the permission of the COTP or the designated representative. Before activating the zone COTP, Prince William Sound will notify mariners by appropriate means including but not limited to Local Notice to Mariners and Broadcast Notice to Mariners.
This rule is being established for the safety of life on the navigable waters during the fireworks display event.
We developed this rule after considering numerous statutes and Executive Orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders and we discuss First Amendment rights of protestors.
Executive Orders 12866 (“Regulatory Planning and Review”) and 13563 (“Improving Regulation and Regulatory Review”) direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distributive impacts, and equity. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. Executive Order 13771 (“Reducing Regulation and Controlling Regulatory Costs”), directs agencies to reduce regulation and control regulatory costs and provides that “for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.”
The Office of Management and Budget (OMB) has not designated this rule a significant regulatory action under section 3(f) of Executive Order 12866. Accordingly, OMB has not reviewed it.
This regulatory action determination is based on the size, location, duration, and time-of-day of the safety zone. The Coast Guard's enforcement of the safety zone will be of short duration, approximately two hours. Furthermore, vessels may be authorized to transit through the safety zones with the permission of the COTP, Prince William Sound, Alaska. Moreover, the Coast Guard would issue a Broadcast Notice to Mariners via VHF-FM marine channel 16 about the zone, and the rule would allow vessels to seek permission to enter the zone.
The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard received no comments from the Small Business Administration on this rulemaking. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule would not have a significant economic impact on a substantial number of small entities.
While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V. B above, this rule would not have a significant economic impact on any vessel owner or operator.
Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the
Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.
This rule would not call for a new collection of information under the
A rule has implications for Federalism under Executive Order 13132 if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.
Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. If you believe this rule has implications for Federalism or Indian tribes, please contact the person listed in the
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.
We have analyzed this rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves the establishment of a permanent safety zone on the navigable waters of Port Valdez, in the vicinity of the Valdez Spit. It is categorically excluded from further review in accordance with paragraph 34(g) of Figure 2-1 of Commandant Instruction M16475.lD. A Record of Environmental Consideration (REC) supporting this determination is available in the docket where indicated in the
The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the
Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.
For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:
33 U.S.C 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 0170.1.
(a)
(b)
(c)
(1) The term “designated representative” means any Coast Guard commissioned, warrant or petty officer of the U. S. Coast Guard who has been designated by the COTP, Prince William Sound, to act on his or her behalf.
(2) The term “official patrol vessel” may consist of any Coast Guard, Coast Guard Auxiliary, state, or local law enforcement vessels assigned or approved by the COTP, Prince William Sound.
(d)
(2) The safety zone is closed to all vessel traffic, except as may be permitted by the COTP or the designated representative during periods of enforcement.
(3) All persons and vessels shall comply with the instructions of the COTP or the designated representative. Upon being hailed by a U.S. Coast Guard vessel or other official patrol vessel by siren, radio, flashing light or other means, the operator of the vessel shall proceed as directed.
(4) Vessel operators desiring to enter or operate within the regulated area may request permission from the COTP via VHF Channel 16 or (907) 835-7205 (Prince William Sound Vessel Traffic Center) to request permission to do so.
(5) The Coast Guard will issue a Broadcast Notice to Mariners to advise mariners of the safety zone before and during the event.
(6) The COTP may be aided by other Federal, state, borough and local law enforcement officials in the enforcement of this regulation.
Environmental Protection Agency (EPA).
Notice of reconsideration and partial stay.
By a letter dated April 18, 2017, the Administrator announced the convening of a proceeding for reconsideration of the fugitive emission requirements at well sites and compressor station sites in the final rule, “Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources,” published in the
This final rule is effective June 2, 2017. The action granting reconsideration is effective June 2, 2017. The stay of §§ 60.5393a(b) through (c), 60.5397a, 60.5410a(e)(2) through (5) and (j), 60.5411a(d), 60.5415a(h), 60.5420a(b)(7), (8), and (12), and (c)(15) through (17) is effective from June 2, 2017, until August 31, 2017.
Mr. Peter Tsirigotis, Sector Policies and Programs Division (D205-01), Office of Air Quality Planning and Standards, Environmental Protection Agency, Research Triangle Park, North Carolina 27711; telephone number: (888) 627-7764; email address:
Electronic copies of this document are available on EPA's Web site at
On June 3, 2016, the EPA published a final rule titled “Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Final Rule,” 81 FR 35824 (June 3, 2016) (“2016 Rule”). The 2016 Rule establishes new source performance standards (NSPS) for greenhouse gas emissions and volatile organic compound (VOC) emissions from the oil and natural gas sector. This rule addresses, among other things, fugitive emissions at well sites and compressor station sites (“fugitive emissions requirements”), and emissions from pneumatic pumps. In addition, for a number of affected facilities (
On August 2, 2016, a number of interested parties submitted administrative petitions to the EPA seeking reconsideration of various aspects of the 2016 Rule pursuant to section 307(d)(7)(B) of the Clean Air Act (CAA) (42 U.S.C. 7607(d)(7)(B)).
In a letter dated April 18, 2017, based on the criteria in CAA section 307(d)(7)(B), the Administrator convened a proceeding for reconsideration of the following objections relative to the fugitive emissions requirements: (1) The applicability of the fugitive emissions requirements to low production well sites, and (2) the process and criteria for requesting and receiving approval for the use of an alternative means of emission limitations (AMEL) for purposes of compliance with the fugitive emissions requirements in the 2016 Rule.
The EPA had proposed to exempt low production well sites from the fugitive emissions requirements, believing the lower production associated with these wells would generally result in lower fugitive emissions. 80 FR 56639. However, the final rule differs significantly from what was proposed in that it requires these well sites to comply with the fugitive emissions requirements based on information and rationale not presented for public comment during the proposal stage. See 81 FR 35856 (“. . . well site fugitive emissions are not correlated with levels of production, but rather based on the number of pieces of equipment and components”). It was therefore impracticable to object to this new rationale during the public comment period.
The AMEL process and criteria were included in the 2016 Rule without having been proposed for notice and comment. The EPA added the AMEL provisions in the final rule with the intent of, among other goals, reducing compliance burdens for those sources that may already be reducing fugitive emissions in accordance with a state requirement or other program that is achieving reductions equivalent to those required by the 2016 Rule. These AMEL provisions were also added to encourage the development and use of innovative technology, in particular for fugitive emissions monitoring. 81 FR 35861. However, issues and questions raised in the administrative petitions for reconsideration (
Both issues described above, which relate directly to whether certain sources must implement the fugitive emissions requirements, are of central relevance to the outcome of the 2016 Rule for the reasons stated below. Fugitive emissions are a significant source of emissions for many industries, and the EPA has promulgated numerous NSPS specifically for reducing fugitive emissions, including 40 CFR part 60, subpart KKK (addressing VOC leaks from on-shore natural gas processing plants), as standalone rules. The fact that the EPA chose here to promulgate the well site and compressor station fugitive emissions requirements along with other standards in the 2016 Rule does not make these requirements any less important than the other fugitive emissions standards; rather, because of their importance, they are a significant component of the 2016 Rule. The issues described above are important as they determine the universe of affected facilities that must implement the fugitive emission requirements; as such, they are of central relevance to the outcome of the 2016 Rule. As stated in the April 18, 2017, letter, the EPA has convened an administrative proceeding for the reconsideration of the fugitive emissions requirements in response to these two objections.
Since issuing the April 18, 2017, letter, the EPA has identified objections to two other aspects of the 2016 Rule that meet the criteria for reconsideration under section 307(d)(7)(B) of the CAA. These objections relate to (1) the requirements for certification of closed vent system by professional engineer, and (2) the well site pneumatic pump standards.
For closed vent systems used to comply with the emission standards for
Section 111 of the CAA requires that the EPA consider, among other factors, the cost associated with establishing a new source performance standard. See 111(a)(1) of the CAA. The statute is thus clear that cost is an important consideration in determining whether to impose a requirement. In finalizing the 2016 Rule, the EPA made clear that it viewed the PE certification requirement to be an important aspect of a number of performance standards in the that rule. The EPA acknowledges that it had not analyzed the costs associated with the PE certification requirement; therefore, it was impracticable for petitioners to provide meaningful comments during the comment period on whether the improved environmental performance this requirement may achieve justifies the associated costs and other compliance burden. This issue is of central relevance to the outcome of the 2016 Rule because the rule requires this PE certification for demonstrating compliance for a number of different standards, including the standards for centrifugal compressors, reciprocating compressors, pneumatic pumps, and storage vessels. For the reasons stated above, the EPA is granting reconsideration of the PE certification requirement.
In the 2016 Rule, the EPA exempts a pneumatic pump at a well site from the emission reduction requirement if it is technically infeasible to route the pneumatic pump to a control device or a process. 81 FR 35850. However, the rule requires that such technical infeasibility be determined and certified by a “qualified professional engineer” as that term is defined in the final rule. During the proposal stage, the EPA did not propose or otherwise suggest exempting well site pneumatic pumps from emission control based on such certification. In fact, the technical infeasibility exemption itself was added during the final rule stage. Further, this certification requirement differs significantly from how the EPA has previously addressed another “technical infeasibility” issue encountered by this industry. Specifically, the oil and gas NSPS subpart OOOO, which was promulgated in 2012, exempts hydraulically fractured gas well completions from performing a reduced emission completion (REC) if it is not technically feasible to do so, and requires documentation and recordkeeping of the technical infeasibility. See 40 CFR 60.5375. The 2016 Rule extends the REC requirement and associated technical infeasibility exemption to hydraulically fractured oil well completions and requires more detailed documentation of technical infeasibility. Neither subpart OOOO nor the 2016 Rule require that REC technical infeasibility be certified by a qualified professional engineer, nor was such requirement proposed or otherwise raised during the public comment period for these rules. In light of the fact that the EPA had not proposed such certification requirement for pneumatic pumps, and how this requirement differs from the EPA's previous treatment of a similar issue as described above, one could not have anticipated that the 2016 Rule would finalize such certification requirement for pneumatic pumps in the 2016 Rule. Further, believing that “circumstances that could otherwise make control of a pneumatic pump technically infeasible at an existing location can be addressed in the site's design and construction,” the EPA does not allow such exemption for new developments in the 2016 Rule. 40 CFR 60.5393a(b)(5); see also, 81 FR 35849. The 2016 Rule refers to such new developments as “greenfield,” which is defined as an “entirely new construction.” 40 CFR 60.5430a.
The provisions described above were included in the 2016 Rule without having been proposed for notice and comment, and numerous related objections and issues were raised in the reconsideration petitions. With respect to the requirement that technical infeasibility be certified by a professional engineer, petitioners raised the same issues as those for closed vent system certification discussed in section II.A. In addition, several petitions find the definition of greenfield unclear. For example, one petitioner questions whether the term “new” as used in this definition is synonymous to how that term is defined in section 111 of the CAA. Additional questions include whether a greenfield remains forever a greenfield, considering that site designs may change by the time that a new control or pump is installed (which may be years later). Petitioners also object to EPA's assumption that the technical infeasibility encountered at existing well sites can be addressed when “new” sites are developed. The issues described above dictate whether one must achieve the emission reduction required under the well site pneumatic pump standards, which were a major addition to the existing oil and gas NSPS regulations through promulgation of the 2016 Rule. Therefore, these issues are of central relevance to the outcome of the 2016 Rule.
As announced in the April 18, 2017, letter, and as further announced in this document, the Administrator has convened an administrative reconsideration proceeding. As part of the proceeding, the EPA will prepare a notice of proposed rulemaking that will provide the petitioners and the public an opportunity to comment on the rule requirements and associated issues identified above, as well as those for which reconsideration was granted in the April 18, 2017, letter. During the reconsideration proceeding, the EPA intends to look broadly at the entire 2016 Rule. For a copy of this letter and the administrative reconsideration petitions, please see Docket ID No. EPA-HQ-OAR-2010-0505.
By this document, in addition to the grant of reconsideration discussed in section II above, the EPA is staying the effectiveness of certain aspects of the 2016 Rule for three months pursuant to section 307(d)(7)(B) of the CAA pending reconsideration of the requirements and associated issues described above and in the April 18, 2017, letter. Specifically, the EPA is staying the effectiveness of the fugitive emissions requirements, the standards for pneumatic pumps at well sites, and the certification by a professional engineer requirements. As explained above, the low production well sites and AMEL issues under reconsideration determine the universe of sources that must implement the fugitive emissions requirements. The
This stay will remain in place until August 31, 2017.
Environmental protection, Administrative practice and procedure, Air pollution control, Reporting and recordkeeping.
42 U.S.C. 7401
The addition reads as follows:
(f) Pneumatic pumps at a well site are not subject to the requirements of paragraph (d) and (e) of this section from June 2, 2017, until August 31, 2017.
The addition reads as follows:
(e) * * *
(8) Pneumatic pump affected facilities at a well are not subject to the requirements of (e)(6) and (7) of this section from June 2, 2017, until August 31, 2017.
The revision and addition read as follows:
You must meet the applicable requirements of this section for each cover and closed vent system used to comply with the emission standards for your centrifugal compressor wet seal degassing systems, reciprocating compressors, pneumatic pumps and storage vessels except as provided in paragraph (e) of this section.
(e) Pneumatic pump affected facilities at a well site are not subject to the requirements of paragraph (a) of this section from June 2, 2017, until August 31, 2017.
The revision and addition read as follows:
(b) For each centrifugal compressor affected facility and each pneumatic pump affected facility, you must demonstrate continuous compliance according to paragraph (b)(3) of this section except as provided in paragraph (b)(4) of this section. For each centrifugal compressor affected facility, you also must demonstrate continuous compliance according to paragraphs (b)(1) and (2) of this section.
(4) Pneumatic pump affected facilities at a well site are not subject to the requirements of paragraphs (b)(3) of this section from June 2, 2017, until August 31, 2017.
For each closed vent system or cover at your storage vessel, centrifugal compressor, reciprocating compressor and pneumatic pump affected facilities, you must comply with the applicable requirements of paragraphs (a) through (c) of this section, except as provided in paragraph (d) of this section.
(d) Pneumatic pump affected facilities at a well site are not subject to the requirements of paragraphs (a) and (b) of this section from June 2, 2017, until August 31, 2017.
The revision and addition read as follows:
(b)
(13) The collection of fugitive emissions components at a well site (as defined in § 60.5430a), the collection of fugitive emissions components at a compressor station (as defined in § 60.5430a), and pneumatic pump affected facilities at a well site (as defined in § 60.5365a(h)(2)) are not subject to the requirements of paragraph (b)(1) of this section from June 2, 2017, until August 31, 2017.
Environmental Protection Agency (EPA).
Direct final rule.
With this direct final rule, the Environmental Protection Agency (EPA) is taking action to approve the negative declarations for several designated facility classes in various states of Region 8. First, the EPA is taking direct final action in approving the negative declarations for small municipal waste combustor (MWC) units submitted by the states of Colorado, Montana, North Dakota, South Dakota, and Wyoming. Second, the EPA is taking direct final action in approving the negative declarations for large MWC units submitted by the states of Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. Third, the EPA is taking direct final action in approving the negative declarations for commercial industrial solid waste incineration (CISWI) units submitted by the states of Montana, South Dakota, Utah, and Wyoming. Fourth, the EPA is taking direct final action in approving the negative declarations for other solid waste incineration (OSWI) units submitted by the states of Montana, North Dakota, South Dakota, Utah, and Wyoming. Each state included in this action has notified the EPA in a letter of negative declaration that there are no existing designated facilities, of the source category specified in each particular letter of negative declaration, subject to the requirements of sections 111(d) and 129 of the Clean Air Act (CAA or the “Act”) currently operating within the jurisdictional boundaries of their state. The EPA is accepting the negative declarations in accordance with sections 111(d) and 129(b) of the Act. This is a direct final action without prior notice and comment because the action is deemed noncontroversial.
This direct final rule is effective on August 4, 2017 without further notice, unless the EPA receives adverse written comments on or before July 5, 2017. If adverse comments are received, the EPA will publish a timely withdrawal of the direct final rule in the
Submit your comments, identified by Docket ID No. EPA-R08-OAR-2017-0171 at
Gregory Lohrke, Air Program, U.S. Environmental Protection Agency (EPA), Region 8, Mail Code 8P-AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129, (303) 312-6396,
The EPA is publishing this rule without prior proposal because the agency views this as a noncontroversial action and anticipates no adverse comments. However, in the Proposed Rules section of today's
If the EPA receives adverse comments, the EPA will publish a timely withdrawal in the
The EPA's statutory authority for regulating new and existing solid waste incineration units is outlined in CAA sections 111 and 129. Section 129 of the
Emission guidelines for small MWC units were originally promulgated alongside guidelines for large MWC units in December 1995 (40 CFR part 60, subpart Cb). These guidelines were vacated by the U.S. Court of Appeals for the District of Columbia Circuit in March 1997 when the court held that the EPA should separately regulate small MWC units to remain consistent with the provisions of section 129 of the CAA. On December 6, 2000, the EPA issued a final rule (65 FR 76378) to reestablish emission guidelines and compliance times for existing small MWC units constructed on or before August 30, 1999, that have capacities of 35 to 250 tons per day of municipal solid waste (40 CFR part 60, subpart BBBB). The federal plan was promulgated on January 31, 2003 (68 FR 5144), at 40 CFR part 62, subpart JJJ.
In December 1995, the EPA adopted NSPS (40 CFR part 60, subpart Eb) and emission guidelines (40 CFR part 60, subpart Cb) for large MWC units. The EPA conducted a five-year review of the NSPS and emission guidelines for large MWC units as required by section 129(a)(5) of the CAA and proposed amendments on December 19, 2005 (70 FR 75348). On May 10, 2006, after consideration of comments received on this proposal, revisions and amendments to the emission guidelines and compliance times for large MWC units were promulgated at 40 CFR part 60, subpart Cb (71 FR 27323).
On February 7, 2013, revision of the emission guidelines and compliance times for commercial and industrial solid waste incineration units was adopted and promulgated (78 FR 9112) at 40 CFR part 60, subpart DDDD. Reconsideration of certain aspects of the final rule due to public comment resulted in minor amendments to the CISWI rule being made on June 23, 2016. On October 3, 2003, the EPA promulgated the federal plan for CISWI units that commenced construction on or before November 30, 1999 (68 FR 57539) at 40 CFR part 62, subpart III.
On December 16, 2005, emission guidelines and compliance times were promulgated for existing other solid waste incineration units that commenced construction on or before December 9, 2004 (70 FR 74907) at 40 CFR part 60, subpart FFFF. Reconsideration of certain aspects of the final rule resulted in minor amendments to the OSWI rule being made on January 22, 2007.
The Colorado Department of Public Health and Environment, the Montana Department of Environmental Quality, the North Dakota Department of Health, the South Dakota Department of Environment and Natural Resources, and the Wyoming Department of Environmental Quality have submitted letters certifying that there are no existing small municipal waste combustion units under state jurisdiction in their respective states subject to 40 CFR part 60, subpart BBBB. These negative declarations meet the requirements of 40 CFR 62.06, and the EPA outlines no formal review process for negative declaration letters under subpart BBBB—Emission Guidelines and Compliance Times for Small Municipal Waste Combustion Units Constructed on or Before August 30, 1999. The dates of submission for these letters are outlined in the table below.
The Colorado Department of Public Health and Environment, the Montana Department of Environmental Quality, the North Dakota Department of Health, the South Dakota Department of Environment and Natural Resources, the Utah Department of Environmental Quality, and the Wyoming Department of Environmental Quality have submitted letters continuing their certification that there are no existing large municipal solid waste combustion units under state jurisdiction in their respective states subject to 40 CFR part 60, subpart Cb. These negative declarations meet the requirements of 40 CFR 62.06, and the EPA outlines no formal review process for negative declaration letters under 40 CFR part 60, subpart Cb—Emissions Guidelines and Compliance Times for Large Municipal Waste Combustors That Are Constructed on or Before September 20, 1994. The dates of submission for these letters are outlined in the table below.
The Montana Department of Environmental Quality, the South Dakota Department of Environment and Natural Resources, the Utah Department of Environmental Quality, and the Wyoming Department of Environmental Quality have submitted letters continuing their certification that there are no existing commercial industrial solid waste incineration units under state jurisdiction in their respective states subject to 40 CFR part 60, subpart DDDD. These negative declarations meet the requirements of 40 CFR 62.06, and the EPA outlines no formal review process for negative declaration letters under 40 CFR part 60, subpart DDDD—Emissions Guidelines and Compliance Times for Commercial and Industrial Solid Waste Incineration Units. The dates of submission for these letters are outlined in the table below.
The Montana Department of Environmental Quality, the North Dakota Department of Health, the South Dakota Department of Environment and Natural Resources, the Utah Department of Environmental Quality, and the Wyoming Department of Environmental Quality have submitted letters certifying that there are no existing other solid waste incineration units under state jurisdiction in their respective states subject to 40 CFR part 60, subpart FFFF. These negative declarations meet the requirements of 40 CFR 62.06, and the EPA outlines no formal review process for negative declaration letters under 40 CFR part 60, subpart FFFF—Emission Guidelines and Compliance Times for Other Solid Waste Incineration Units That Commenced Construction On or Before December 9, 2004. The dates of submission for these letters are outlined in the table below.
The EPA is approving the negative declarations for existing small MWC units for the states of Colorado, Montana, North Dakota, South Dakota, and Wyoming. The negative declarations satisfy the requirements of 40 CFR 62.06 and will serve in lieu of CAA section 111(d)/129 state plans for the specified states and source category.
The EPA is also approving the updated negative declarations for existing large MWC units for the states of Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. The negative declarations satisfy the requirements of 40 CFR 62.06 and will serve in lieu of CAA section 111(d)/129 state plans for the specified states and source category.
The EPA is also publishing the updated negative declarations for existing CISWI units for the states of Montana, South Dakota, Utah, and Wyoming. The negative declarations satisfy the requirements of 40 CFR 62.06 and will serve in lieu of CAA section 111(d)/129 state plans for the specified states and source category.
The EPA is also approving the negative declarations for existing OSWI units for the states of Montana, North Dakota, South Dakota, Utah, and Wyoming. The negative declarations satisfy the requirements of 40 CFR 62.06 and will serve in lieu of CAA section 111(d)/129 state plans for the specified states and source category.
Under the CAA, the Administrator is required to approve a section 111(d)/129 plan submission that complies with the provisions of the Act and applicable federal regulations at 40 CFR 62.04. Thus, in reviewing section 111(d)/129 plan submissions, the EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely approves state law as meeting federal requirements and does not impose additional requirements beyond those
• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
• Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501
• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601
• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);
• Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);
• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);
• Is not subject to requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and,
• Is not subject to Executive Order 12898 (59 FR 7629, February 16, 1994) because it does not establish an environmental health or safety standard.
In addition, this rule is not approved to apply on any Indian reservation land or in any other area where the EPA or an Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Indian country, the rule does not have tribal implications and will not impose substantial direct costs on tribal governments or preempt tribal law as specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
The Congressional Review Act, 5 U.S.C. 801
Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by August 4, 2017. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and it shall not postpone the effectiveness of such rule or action. Under CAA section 307(b)(2), this action may not be challenged later in proceedings to enforce its requirements.
Environmental protection, Administrative practice and procedure, Air pollution control, Commercial industrial solid waste incineration, Intergovernmental relations, Municipal solid waste combustion, Other solid waste incineration, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, EPA amends 40 CFR part 62 as set forth below:
42 U.S.C. 7401
Letter from the Colorado Department of Public Health and Environment submitted October 13, 2015, certifying that there are no existing large municipal waste combustion units within the State of Colorado that are subject to 40 CFR part 60, subpart Cb.
Letter from the Colorado Department of Public Health and Environment submitted January 8, 2001, certifying that there are no existing small municipal waste combustion units within the State of Colorado that are subject to 40 CFR part 60, subpart BBBB.
Letter from the Montana Department of Environmental Quality submitted March 18, 2015, certifying that there are no existing large municipal waste combustion units within the State of Montana that are subject to 40 CFR part 60, subpart Cb.
Letter from the Montana Department of Environmental Quality submitted March 18, 2015, certifying that there are no existing commercial and industrial solid waste incineration units within the State of Montana that are subject to 40 CFR part 60, subpart DDDD.
Letter from the Montana Department of Environmental Quality submitted June 27, 2005, certifying that there are no existing small municipal waste combustion units within the State of Montana that are subject to 40 CFR part 60, subpart BBBB.
Letter from the Montana Department of Environmental Quality submitted March 18, 2015, certifying that there are no existing other solid waste incineration units within the State of Montana that are subject to 40 CFR part 60, subpart FFFF.
Letter from the North Dakota Department of Health submitted February 26, 2015, certifying that there are no existing large municipal waste combustion units within the State of North Dakota that are subject to 40 CFR part 60, subpart Cb.
Letter from the North Dakota Department of Health submitted November 27, 2001, certifying that there are no existing small municipal waste combustion units within the State of North Dakota that are subject to 40 CFR part 60, subpart BBBB.
Letter from the North Dakota Department of Health submitted September 20, 2006, certifying that there are no existing other solid waste incineration units within the State of North Dakota that are subject to 40 CFR part 60, subpart FFFF.
Letter from the South Dakota Department of Environment and Natural Resources submitted April 3, 2017, certifying that there are no existing large municipal waste combustion units within the State of South Dakota that are subject to 40 CFR part 60, subpart Cb.
Letter from the South Dakota Department of Environment and Natural Resources submitted April 3, 2017, certifying that there are no existing commercial and industrial solid waste incineration units within the State of South Dakota that are subject to 40 CFR part 60, subpart DDDD.
Letter from the South Dakota Department of Environment and Natural Resources submitted January 25, 2002, certifying that there are no existing small municipal waste combustion units within the State of South Dakota that are subject to 40 CFR part 60, subpart BBBB.
Letter from the South Dakota Department of Environment and Natural Resources submitted May 4, 2007, certifying that there are no existing other solid waste incineration units within the State of South Dakota that are subject to 40 CFR part 60, subpart FFFF.
Letter from the Utah Department of Environmental Quality submitted March 22, 2017, certifying that there are no existing large municipal waste combustion units within the State of Utah that are subject to 40 CFR part 60, subpart Cb.
Letter from the Utah Department of Environmental Quality submitted March 22, 2017, certifying that there are no existing commercial and industrial solid waste incineration units within the State of Utah that are subject to 40 CFR part 60, subpart DDDD.
Letter from the Utah Department of Environmental Quality submitted December 20, 2006, certifying that there are no existing other solid waste incineration units within the State of Utah that are subject to 40 CFR part 60, subpart FFFF.
Letter from the Wyoming Department of Environmental Quality submitted April 23, 2015, certifying that there are no existing large municipal waste combustion units within the State of Utah that are subject to 40 CFR part 60, subpart Cb.
Letter from the Wyoming Department of Environmental Quality submitted February 23, 2017, certifying that there are no existing commercial and industrial solid waste incineration units within the State of Wyoming that are subject to 40 CFR part 60, subpart DDDD.
Letter from the Wyoming Department of Environmental Quality submitted October 9, 2001, certifying that there are no existing small municipal waste combustion units within the State of Wyoming that are subject to 40 CFR part 60, subpart BBBB.
Letter from the Wyoming Department of Environmental Quality submitted May 3, 2007, certifying that there are no existing other solid waste incineration units within the State of Wyoming that are subject to 40 CFR part 60, subpart FFFF.
Federal Emergency Management Agency, DHS.
Final rule.
This rule identifies communities where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on the effective dates listed within this rule because of noncompliance with the floodplain management requirements of the program. If the Federal Emergency Management Agency (FEMA) receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in this rule, the suspension will not occur and a notice of this will be provided by publication in the
The effective date of each community's scheduled suspension is the third date (“Susp.”) listed in the third column of the following tables.
If you want to determine whether a particular community was suspended on the suspension date or for further information, contact Patricia Suber, Federal Insurance and Mitigation Administration, Federal Emergency Management Agency, 400 C Street SW., Washington, DC 20472, (202) 646-4149.
The NFIP enables property owners to purchase Federal flood insurance that is not otherwise generally available from private insurers. In return, communities agree to adopt and administer local floodplain management measures aimed at protecting lives and new construction from future flooding. Section 1315 of the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4022, prohibits the sale of NFIP flood insurance unless an appropriate public body adopts adequate floodplain management measures with effective enforcement measures. The communities listed in this document no longer meet that statutory requirement for compliance with program regulations, 44 CFR part 59. Accordingly, the communities will be suspended on the effective date in the third column. As of that date, flood insurance will no longer be available in the community. We recognize that some of these communities may adopt and submit the required documentation of legally enforceable floodplain management measures after this rule is published but prior to the actual suspension date. These communities will not be suspended and will continue to be eligible for the sale of NFIP flood insurance. A notice withdrawing the suspension of such communities will be published in the
In addition, FEMA publishes a Flood Insurance Rate Map (FIRM) that identifies the Special Flood Hazard Areas (SFHAs) in these communities. The date of the FIRM, if one has been published, is indicated in the fourth column of the table. No direct Federal financial assistance (except assistance pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act not in connection with a flood) may be provided for construction or acquisition of buildings in identified SFHAs for communities not participating in the NFIP and identified for more than a year on FEMA's initial FIRM for the community as having flood-prone areas (section 202(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4106(a), as amended). This prohibition against certain types of Federal assistance becomes effective for the communities listed on the date shown in the last column. The Administrator finds that notice and public comment procedures under 5 U.S.C. 553(b), are impracticable and unnecessary because communities listed in this final rule have been adequately notified.
Each community receives 6-month, 90-day, and 30-day notification letters addressed to the Chief Executive Officer stating that the community will be suspended unless the required floodplain management measures are met prior to the effective suspension date. Since these notifications were made, this final rule may take effect within less than 30 days.
Flood insurance, Floodplains.
Accordingly, 44 CFR part 64 is amended as follows:
42 U.S.C. 4001
Office of the Secretary (OST), Department of Transportation (DOT).
Final rule; correction.
The Department of Transportation is correcting a final rule that appeared in the
This final rule is effective June 5, 2017.
Claire McKenna, Senior Attorney, Office of the General Counsel, U.S. Department of Transportation, Washington, DC, at
In FR Doc. 2017-08925 appearing on page 21136 in the
The revision and addition read as follows:
(c) * * *
(5) Inter-agency or intra-agency memorandums or letters that would not be available by law to a party other than an agency in litigation with the agency, provided that the deliberative process privilege shall not apply to records created 25 years or more before the date on which the records were requested;
(d)
(1) DOT reasonably foresees that disclosure would harm an interest protected by an exemption under paragraph (c) of this section; or
(2) Disclosure is prohibited by law or otherwise exempted from disclosure under paragraph (c)(3) of this section.
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for Northrop Grumman LITEF GmbH LCR-100 Attitude and Heading Reference System (AHRS) units installed on various aircraft. This proposed AD would require removing certain LCR-100 AHRS units from service. This proposed AD is prompted by test results showing loss of or invalid data. The proposed actions are intended to prevent an unsafe condition on these products.
We must receive comments on this proposed AD by August 4, 2017.
You may send comments by any of the following methods:
•
•
•
•
You may examine the AD docket on the Internet at
For service information identified in this proposed rule, contact Northrop Grumman LITEF GmbH, Customer Service—Commercial Avionics, Loerracher Str. 18, 79115 Freiburg, Germany; telephone +49 (761) 4901-142; fax +49 (761) 4901-773; email
Nick Rediess, Aviation Safety Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, 1200 District Avenue, Burlington, Massachusetts 01803; telephone (781) 238-7159; email
We invite you to participate in this rulemaking by submitting written comments, data, or views. We also invite comments relating to the economic, environmental, energy, or federalism impacts that might result from adopting the proposals in this document. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should send only one copy of written comments, or if comments are filed electronically, commenters should submit only one time.
We will file in the docket all comments that we receive, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, we will consider all comments we receive on or before the closing date for comments. We will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. We may change this proposal in light of the comments we receive.
We propose to adopt a new AD for Northrop Grumman LITEF GmbH LCR-100 AHRS units with a part number 145130-2000, 145130-2001, 145130-7000, 145130-7001, or 145130-7100. These units are installed on various airplanes and helicopters and are often used to supply attitude and heading data to Primary Flight Displays (PFDs), autopilots, and other avionics. These units may be installed as part of a type-certificated design, an FAA supplemental type certificate, or a field approval. Northrop Grumman LITEF GmbH discovered the erroneous behavior of an AHRS unit during laboratory testing. The erroneous behavior occurs when the unit's continuous built-in test detects a failure and then does not correctly reset. When this occurs, the analog outputs of attitude and heading data freeze and the transmission of digital outputs of attitude and heading stops. The effect of the errors depends on how the AHRS unit outputs are used in a particular installation. For instance, if the AHRS unit analog outputs are used by a PFD without any automatic comparison with another source of data, the PFD will display misleading information, which could lead to loss of control of the aircraft. Other installations using the analog outputs might include an automatic comparison feature that detects and provides an alert if the attitude and heading data is frozen. A similar situation would occur in installations that use the digital outputs since the erroneous behavior would be detected. This proposed AD would only be applicable to installations of the AHRS units using analog outputs for the display of primary flight information or for input to an autopilot without automatic output comparison since these installations do not provide any warning indication of the erroneous behavior.
EASA, which is the Technical Agent for the Member States of the European Union, has issued EASA AD No. 2015-0093, dated May 27, 2015, to correct an unsafe condition for certain part-numbered Northrop Grumman LITEF GmbH LCR-100 AHRS units. EASA states these units are known to be installed on, but not limited to, Pilatus PC-12, Learjet 31A, Cessna 560XL, RUAG (Dornier) 228 series, and PZL Mielec M28 (Sky Truck) airplanes; and Bell Helicopter Textron, Inc., 412EP, Bell Helicopter Textron Canada 407, and Sikorsky S-76C helicopters. EASA advises that laboratory tests of the AHRS units discovered that when the built-in test detects failures and resets the system, the units are not executing the system reset properly. According to EASA, this results in a freeze of analog attitude and heading output data without detection or warning to the pilot. EASA states that installations vary, but if there is no automatic comparison of analog output to detect unit failure, this condition, if not corrected, could lead to undetected attitude and heading errors, possibly resulting in loss of control of the aircraft.
This proposed AD would also affect AD 2010-26-09 (75 FR 81424, December 28, 2010), which applies to Sikorsky Model S-76A, B, and C helicopters with an AHRS unit P/N 145130-7100 installed. Since this proposed AD would require the removal of P/N 145130-7100, compliance with this AD would make AD 2010-26-09 no longer valid for those Sikorsky helicopters.
We are proposing this AD because we evaluated all known relevant information and determined that an unsafe condition exists and is likely to exist or develop on other products of this same type design.
We reviewed Northrop Grumman LITEF GmbH Service Bulletin No. 145130-0017-845, Revision D, dated April 1, 2015 (SB 145130-0017-845). SB 145130-0017-845 specifies returning the applicable part numbered AHRS units to certain repair stations for modification. The modified AHRS units, which have new part numbers, have an additional watchdog circuit in the electronic board that eliminates frozen analog outputs and digital output interruptions.
This proposed AD would require removing certain part-numbered LCR-100 AHRS units that use analog outputs for primary flight information display or autopilot functions without automatic output comparison from service. This proposed AD would also prohibit installing those LCR-100 AHRS units on any aircraft.
This proposed AD would only apply to certain part-numbered AHRS units that use analog outputs for primary flight information display or autopilot functions without automatic output comparison. The EASA AD applies to all of these part-numbered units regardless of the type of installation. The EASA AD requires inserting a temporary revision into the flight manual for analog without automatic output comparison installations until the AHRS unit is replaced with a modified unit. This proposed AD would not require temporarily revising the flight manual. The EASA AD requires replacing the AHRS units with particular part-numbered modified units, while this proposed AD would require removing the AHRS units from service instead.
We estimate that this proposed AD would affect 50 aircraft of U.S. Registry. We estimate that operators may incur the following costs in order to comply with this AD. Labor costs are estimated at $85 per work-hour, and typical installations consist of two AHRS units. Replacing two AHRS units would take about 4 work-hours and $62,630 for required parts, for a total cost of $62,970 per aircraft and $3,148,500 for the U.S. fleet.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed, I certify this proposed regulation:
1. Is not a “significant regulatory action” under Executive Order 12866;
2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979);
3. Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction; and
4. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
We prepared an economic evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD applies to airplanes and helicopters, certificated in any category, with a Northrop Grumman LITEF GmbH LCR-100 Attitude and Heading Reference System (AHRS) unit part number (P/N) 145130-2000, 145130-2001, 145130-7000, 145130-7001, or 145130-7100 installed using analog outputs for primary flight information display or
(1) Dornier Luftfahrt GmbH Model 228-100, 228-101, 228-200, 228-201, 228-202, and 228-212 airplanes;
(2) Learjet Inc. Model 31A airplanes;
(3) Pilatus Aircraft Ltd. Model PC12, PC-12/45, and PC-12/47 airplanes;
(4) Polskie Zaklady Lotnicze Sp. z o.o. Model PZL M28 05 airplanes;
(5) Textron Aviation Inc. (type certificate previously held by Cessna Aircraft Company) Model 560XL airplanes;
(6) Bell Helicopter Textron Canada Limited Model 407 helicopters;
(7) Bell Helicopter Textron Inc. Model 412 and 412EP helicopters; and
(8) Sikorsky Aircraft Corporation Model S-76A, S-76-B, and S-76C helicopters.
This AD defines the unsafe condition as the AHRS unit's analog outputs of attitude and heading data freezing without detection or warning. This condition could result in misleading attitude and heading information, anomalous autopilot behavior, and loss of control of the aircraft.
This AD affects AD 2010-26-09, Amendment 39-16548 (75 FR 81424, December 28, 2010). Accomplishing a certain requirement of this AD terminates the requirements of AD 2010-26-09.
We must receive comments by August 4, 2017.
You are responsible for performing each action required by this AD within the specified compliance time unless it has already been accomplished prior to that time.
(1) Within 25 hours time-in-service (TIS), remove the AHRS unit from service.
(2) Removal from service of P/N 145130-7100 terminates the requirements of AD 2010-26-09 (75 FR 81424, December 28, 2010).
(3) Do not install an AHRS unit P/N 145130-2000, 145130-2001, 145130-7000, 145130-7001, or 145130-7100 on any aircraft.
(1) The Manager, Boston Aircraft Certification Office, FAA, may approve AMOCs for this AD. Send your proposal to: Nick Rediess, Aviation Safety Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, 1200 District Avenue, Burlington, Massachusetts 01803; telephone (781) 238-7159; email
(2) For operations conducted under a 14 CFR part 119 operating certificate or under 14 CFR part 91, subpart K, we suggest that you notify your principal inspector, or lacking a principal inspector, the manager of the local flight standards district office or certificate holding district office before operating any aircraft complying with this AD through an AMOC.
(1) Northrop Grumman LITEF GmbH Service Bulletin No. 145130-0017-845, Revision D, dated April 1, 2015, which is not incorporated by reference, contains additional information about the subject of this AD. For service information identified in this AD, contact Northrop Grumman LITEF GmbH, Customer Service—Commercial Avionics, Loerracher Str. 18, 79115 Freiburg, Germany; telephone +49 (761) 4901-142; fax +49 (761) 4901-773; email
(2) The subject of this AD is addressed in European Aviation Safety Agency (EASA) AD No. 2015-0093, dated May 27, 2015. You may view the EASA AD on the Internet at
Joint Aircraft Service Component (JASC) Code: 3420, Attitude and Directional Data System.
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for all The Boeing Company Model 737-100, -200, -200C, -300, -400, and -500 series airplanes. This proposed AD was prompted by reports of cracking in the upper aft skin at the rear spar of the wings. This proposed AD would require repetitive inspections for cracking of the upper aft skin of the wings, and repair if necessary. We are proposing this AD to address the unsafe condition on these products.
We must receive comments on this proposed AD by July 20, 2017.
You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:
•
•
•
•
For service information identified in this NPRM, contact Boeing Commercial Airplanes, Attention: Contractual & Data Services (C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740; telephone 562-797-1717; Internet
You may examine the AD docket on the Internet at
Payman Soltani, Aerospace Engineer, Airframe Branch, ANM-120L, FAA, Los Angeles Aircraft Certification Office (ACO), 3960 Paramount Boulevard, Lakewood, CA 90712-4137; phone: 562-627-5313; fax: 562-627-5210; email:
We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the
We will post all comments we receive, without change, to
We have received reports of cracking in the upper aft skin at the rear spar of the wings on Model 737-200, -200C, -300, -400, and -500 series airplanes. One operator found a crack originating from a fastener hole common to the upper aft skin and strap aft of the rear spar at wing buttock line (WBL) 187. The airplane had accumulated 49,461 flight hours and 47,718 flight cycles. A total of 73 cases of upper aft skin cracks were reported between 1993 and 2015; the cracks measured from 0.02 to 3.0 inches long. Cracks between WBL 159 and WBL 200 were found during open-hole high frequency eddy current (HFEC) inspections of a previous repair of the upper chord splice of the wing rear spar. The majority of larger cracks were found at WBL 171, 183, 187, and 200 at the end fasteners common to the straps attaching the wing trailing edge to the wing upper aft skin. This condition, if not corrected, could result in the inability of a principal structural element to sustain limit load, and consequent reduced structural integrity of the airplane.
Model 737-100, -200, and -200C series airplanes having line numbers 1 through 291 have a limit of validity (LOV) of 34,000 total flight cycles, and the actions proposed in this NPRM, as specified in Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017, would be required at a compliance time occurring after that LOV. Although operation of an airplane beyond its LOV is prohibited by 14 CFR 121.1115 and 129.115, this NPRM includes those airplanes in the applicability so that they are tracked in the event the LOV is extended in the future.
We reviewed Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017. The service information describes procedures for repetitive surface HFEC, low frequency eddy current, and detailed inspections on airplanes with or without an external repair, for cracking of the upper aft skin from WBL 159 to WBL 220. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
We are proposing this AD because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design.
This proposed AD would require accomplishing the actions specified in the service information described previously. For information on the procedures and compliance times, see this service information at
We estimate that this proposed AD affects 471 airplanes of U.S. registry. We estimate the following costs to comply with this proposed AD:
We have received no definitive data that would enable us to provide cost estimates for the on-condition actions specified in this proposed AD.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify this proposed regulation:
(1) Is not a “significant regulatory action” under Executive Order 12866,
(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),
(3) Will not affect intrastate aviation in Alaska, and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
We must receive comments by July 20, 2017.
None.
This AD applies to all The Boeing Company Model 737-100, -200, -200C, -300, -400, and -500 series airplanes, certificated in any category.
Air Transport Association (ATA) of America Code 57; Wings.
This AD was prompted by reports of cracking in the upper aft skin at the rear spar of the wings. We are issuing this AD to detect and correct cracks in the upper aft skin of the wings, which could result in the inability of a principle structural element to sustain limit load, and consequent reduced structural integrity of the airplane.
Comply with this AD within the compliance times specified, unless already done.
For airplanes identified as Group 1 in Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017: Within 120 days after the effective date of this AD, do an inspection for cracking of the upper aft skin of the wings, using a method approved in accordance with the procedures specified in paragraph (j) of this AD.
For Groups 2 and 3 airplanes identified in Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017: At the applicable time specified in paragraph 1.E., “Compliance,” of Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017, except as required by paragraph (i) of this AD, do the applicable inspection for cracking of the upper aft skin of the wings from wing buttock line (WBL) 159 to WBL 220, in accordance with the Work Instructions of Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017. If any cracking is found, repair before further flight, in accordance with the procedures specified in paragraph (j) of this AD. Repeat the inspection thereafter at the applicable time specified in paragraph 1.E., “Compliance,” of Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017.
(1) Where Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017, specifies a compliance time “after the original issue date of this service bulletin,” paragraph (h) of this AD requires compliance within the specified compliance time after the effective date of this AD.
(2) Although Boeing Alert Service Bulletin 737-57A1329, dated January 16, 2017, specifies to contact Boeing for repair instructions, and specifies that action as “RC” (Required for Compliance), this AD requires repair in accordance with the procedures specified in paragraph (j) of this AD.
(1) The Manager, Los Angeles Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the ACO, send it to the attention of the person identified in paragraph (k)(1) of this AD. Information may be emailed to:
(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.
(3) An AMOC that provides an acceptable level of safety may be used for any repair, modification, or alteration required by this AD if it is approved by the Boeing Commercial Airplanes Organization Designation Authorization (ODA) that has been authorized by the Manager, Los Angeles ACO, to make those findings. To be approved, the repair method, modification deviation, or alteration deviation must meet the certification basis of the airplane, and the approval must specifically refer to this AD.
(4) Except as required by paragraph (i)(2) of this AD: For service information that contains steps that are labeled as Required for Compliance (RC), the provisions of paragraphs (j)(4)(i) and (j)(4)(ii) of this AD apply.
(i) The steps labeled as RC, including substeps under an RC step and any figures identified in an RC step, must be done to comply with the AD. If a step or substep is labeled “RC Exempt,” then the RC requirement is removed from that step or substep. An AMOC is required for any deviations to RC steps, including substeps and identified figures.
(ii) Steps not labeled as RC may be deviated from using accepted methods in accordance with the operator's maintenance or inspection program without obtaining approval of an AMOC, provided the RC steps, including substeps and identified figures, can still be done as specified, and the airplane can be put back in an airworthy condition.
(1) For more information about this AD, contact Payman Soltani, Aerospace Engineer, Airframe Branch, ANM-120L, FAA, Los Angeles ACO, 3960 Paramount Boulevard, Lakewood, CA 90712-4137; phone: 562-627-5313; fax: 562-627-5210; email:
(2) For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Contractual & Data Services (C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740; telephone 562-797-1717; Internet
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for certain Bombardier, Inc., Model CL-600-2B16 (CL-604 Variant) airplanes. This proposed AD was prompted by reports of in-service incidents regarding the loss of all air data system information provided to the flightcrew. This proposed AD would require revising the airplane flight manual to provide “Unreliable Airspeed” procedures to the flightcrew to stabilize the airplane's airspeed and attitude for continued safe flight and landing. We are proposing this AD to address the unsafe condition on these products.
We must receive comments on this proposed AD by July 20, 2017.
You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:
•
•
•
•
For service information identified in this NPRM, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone: 514-855-5000; fax: 514-855-7401; email:
You may examine the AD docket on the Internet at
Assata Dessaline, Aerospace Engineer, Avionics and Services Branch, ANE-172, FAA, New York Aircraft Certification Office (ACO), 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7301; fax 516-794-5531.
We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the
We will post all comments we receive, without change, to
Transport Canada Civil Aviation (TCCA), which is the aviation authority for Canada, has issued Canadian Airworthiness Directive CF-2017-01, dated January 6, 2017 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for certain Bombardier, Inc., Model CL-600-2B16 (CL-604 Variant) airplanes. The MCAI states:
A number of in-service incidents have been reported on CL-600-2C10 aeroplanes regarding a loss of all air data information provided to the crew. The air data information was recovered as the aeroplane descended to lower altitudes. An investigation determined that the root cause in both events was high altitude icing (ice crystal contamination). If not recognized and addressed, this condition may affect continued safe flight and landing.
Due to similarities in the air data systems, similar events could happen on Bombardier Inc. CL-600-2B16 aeroplanes.
This [Canadian] AD mandates the incorporation of Aircraft Flight Manual (AFM) procedures to guide the crew to stabilize the aeroplanes airspeed and attitude for continued safe flight and landing.
You may examine the MCAI in the AD docket on the Internet at
Bombardier, Inc., has issued Unreliable Airspeed, of Section 03-15, Instruments System, of Chapter 3, Emergency Procedures, to the following AFMs:
• Bombardier Challenger 604 AFM, PSP 604-1, Revision 103, dated November 28, 2016.
• Bombardier Challenger 605 AFM, PSP 605-1, Revision 41, dated November 28, 2016.
• Bombardier Challenger 650 AFM, PSP 650-1, Revision 6, dated November 28, 2016.
This service information provides revisions to the Emergency Procedures section of the AFM to incorporate a procedure for “Unreliable Airspeed.” These documents are distinct since they apply to different airplane configurations. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of the same type design.
We estimate that this proposed AD affects 128 airplanes of U.S. registry.
We also estimate that it would take about 1 work-hour per product to comply with the basic requirements of this proposed AD. The average labor rate is $85 per work-hour. Based on these figures, we estimate the cost of this proposed AD on U.S. operators to be $10,880, or $85 per product.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify this proposed regulation:
1. Is not a “significant regulatory action” under Executive Order 12866;
2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979);
3. Will not affect intrastate aviation in Alaska; and
4. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
We must receive comments by July 20, 2017.
None.
This AD applies to Bombardier, Inc., Model CL-600-2B16 (CL-604 Variant) airplanes, certificated in any category, serial numbers 5301 through 5665 inclusive; 5701 through 5988 inclusive; and 6050 through 6080 inclusive.
Air Transport Association (ATA) of America Code 34, Navigation.
This AD was prompted by reports of in-service incidents regarding the loss of all air data system information provided to the flightcrew. We are issuing this AD to provide the flightcrew with procedures for “Unreliable Airspeed” that stabilize the airplane's airspeed and attitude for continued safe flight and landing.
Comply with this AD within the compliance times specified, unless already done.
Within 30 days after the effective date of this AD: Revise the Emergency Procedures section of the AFM to include the information in Unreliable Airspeed, of Section 03-15, Instruments System, of Chapter 3, Emergency Procedures, of the applicable AFM specified in paragraph (g)(1), (g)(2), or (g)(3) of this AD. These revisions incorporate a procedure for “Unreliable Airspeed.” Thereafter, operate the airplane according to the limitation and procedure in the applicable revision.
(1) For airplanes having serial numbers 5301 through 5665 inclusive: Bombardier Challenger 604 AFM, PSP 604-1, Revision 103, dated November 28, 2016.
(2) For airplanes having serial numbers 5701 through 5988 inclusive (Marketing Designation—Challenger 605): Bombardier Challenger 605 AFM, PSP 605-1, Revision 41, dated November 28, 2016.
(3) For airplanes having serial numbers 6050 through 6080 inclusive (Marketing Designation—Challenger 650): Bombardier Challenger 650 AFM, PSP 650-1, Revision 6, dated November 28, 2016.
The following provisions also apply to this AD:
(1)
(2)
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) Canadian Airworthiness Directive CF-2017-01, dated January 6, 2017, for related information. This MCAI may be found in the AD docket on the Internet at
(2) For more information about this AD, contact Assata Dessaline, Aerospace Engineer, Avionics and Services Branch, ANE-172, FAA, New York Aircraft Certification Office (ACO), 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7301; fax 516-794-5531.
(3) For service information identified in this AD, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone: 514-855-5000; fax: 514-855-7401; email:
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for Sikorsky Aircraft Corporation (Sikorsky) Model S-76A, S-76B, S-76C, and S-76D helicopters. This proposed AD would require inspecting the main rotor (M/R) servo pushrod (pushrod) assembly and applying slippage marks. This proposed AD is prompted by an accident of a Sikorsky Model S-76C helicopter caused by a failed pushrod assembly. The proposed actions are intended to prevent an unsafe condition on these products.
We must receive comments on this proposed AD by August 4, 2017.
You may send comments by any of the following methods:
•
•
•
•
You may examine the AD docket on the Internet at
For service information identified in this proposed rule, contact Sikorsky Aircraft Corporation, Customer Service Engineering, 124 Quarry Road, Trumbull, CT 06611; telephone 1-800-Winged-S or 203-416-4299; email:
Blaine Williams, Aerospace Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, 1200 District Avenue, Burlington, Massachusetts 01803; telephone (781) 238-7161; email
We invite you to participate in this rulemaking by submitting written comments, data, or views. We also invite comments relating to the economic, environmental, energy, or federalism impacts that might result from adopting the proposals in this document. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should send only one copy of written comments, or if comments are filed electronically, commenters should submit only one time.
We will file in the docket all comments that we receive, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, we will consider all comments we receive on or before the closing date for comments. We will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. We may change this proposal in light of the comments we receive.
We propose to adopt a new AD for Sikorsky Model S-76A, S-76B, S-76C, and S-76D helicopters with a serial number up to and including 761075 and with an M/R pushrod assembly part number (P/N) 76400-00034-059, 76400-00014-074, 76400-00014-076, or 76400-00014-077 installed. This proposed AD would not affect the requirements of AD 2015-19-51, which was issued as an emergency AD on September 14, 2015, and published in the
This proposed AD would require inspecting the M/R forward, aft, and lateral pushrod assembly control rods and jamnuts, applying torque to the jamnuts, and applying slippage marks across the control rods and jamnuts. This proposed AD is prompted by an accident of a Sikorsky Model S-76C helicopter caused by a loose jamnut and subsequent failure of the pushrod assembly. Separation of the control rod and the rod end was found. The proposed actions are intended to detect a loose jamnut and prevent failure of the pushrod assembly, loss of M/R flight control, and subsequent loss of control of the helicopter.
We are proposing this AD because we evaluated all known relevant information and determined that an unsafe condition exists and is likely to exist or develop on other helicopters of these same type designs.
We reviewed Sikorksy S-76 Helicopter Alert Service Bulletin 76-67-58, Basic Issue, dated November 19, 2015 (ASB), which specifies a one-time inspection of the M/R forward, aft, and lateral pushrod assemblies and jamnuts for proper installation, condition, and security. If a pushrod or jamnut does not meet criteria specified in the inspections, the ASB specifies replacing the assembly. The ASB also specifies applying torque to each jamnut and applying two slippage marks across each control rod and jamnut.
This proposed AD would require, within 300 hours time-in-service, inspecting each pushrod assembly by inspecting the position of the rod end in the control rod. If the lockwire passes through the inspection hole, this proposed AD would require replacing the pushrod assembly. If the lockwire does not pass through the inspection hole, this proposed AD would require inspecting the jamnut to determine seating position against the control rod and whether the jamnut can be turned with finger pressure. If the jamnut is not seated against the control rod or is loose, this proposed AD would require replacing the pushrod assembly. If the jamnut is seated against the control rod and cannot be turned with finger pressure, this proposed AD would require applying 140 inch-pounds of torque to the jamnut while using a pushrod tool. This proposed AD would also require, both for those pushrod assemblies that are replaced and for those that pass the inspections, applying two slippage marks across each control rod and jamnut.
The Sikorsky ASB specifies returning any removed M/R pushrod assembly to Sikorsky. This proposed AD does not require returning any parts to Sikorsky.
We estimate that this proposed AD would affect 198 helicopters of U.S. Registry.
We estimate that operators may incur the following costs in order to comply with this AD. Labor costs are estimated at $85 per work-hour. Inspecting the M/R pushrod assemblies would take about 2.2 work-hours for an estimated cost of $187 per helicopter and $37,026 for the U.S. fleet. Replacing an M/R pushrod assembly would take about 2 work-hours for a labor cost of $170. Parts to replace M/R pushrod assembly P/N 76400-00034-059 would cost about
Parts to replace M/R pushrod assembly P/N 76400-00014-074 would cost about $2,224 for a total estimated replacement cost of $2,394. Parts to replace M/R pushrod assembly P/N 76400-00014-076 would cost about $2,488 for a total estimated replacement cost of $2,658. Parts to replace M/R pushrod assembly P/N 76400-00014-077 would cost about $2,414 for a total estimated replacement cost of $2,584. It takes a minimal amount of time to apply the slippage marks for a negligible cost.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed, I certify this proposed regulation:
1. Is not a “significant regulatory action” under Executive Order 12866;
2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979);
3. Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction; and
4. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
We prepared an economic evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket.
Air transportation, Aircraft, Aviation safety, Incorporation by Reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD applies to Model S-76A, S-76B, S-76C, and S-76D helicopters, serial numbers up to and including 761075, with a main rotor (M/R) servo pushrod (pushrod) assembly part number (P/N) 76400-00034-059, 76400-00014-074, 76400-00014-076, or 76400-00014-077 installed, certificated in any category.
Note 1 to paragraph (a) of this AD: M/R pushrod P/N 76400-00034-059 is included in the Applicability section of AD 2015-19-51, Amendment 39-18300 (80 FR 65128, October 26, 2015). This AD does not affect AD 2015-19-51.
This AD defines the unsafe condition as a loose jamnut. This condition could result in failure of a pushrod assembly, loss of M/R flight control, and subsequent loss of control of the helicopter.
We must receive comments by August 4, 2017.
You are responsible for performing each action required by this AD within the specified compliance time unless it has already been accomplished prior to that time.
Within 300 hours time-in-service:
(1) Inspect the control rod of each pushrod assembly (control rod) to determine whether 0.020 inch diameter lockwire can pass through the inspection hole.
(i) If the lockwire passes through the inspection hole, before further flight, replace the pushrod assembly.
(ii) If the lockwire does not pass through the inspection hole, inspect the jamnut to determine whether it is seated against the control rod and whether it can be turned with finger pressure.
(A) If the jamnut is not seated against the control rod or can be turned with finger pressure, before further flight, replace the pushrod assembly.
(B) If the jamnut is seated against the control rod and cannot be turned with finger pressure, using a pushrod tool, apply 140 inch-pounds of torque to the jamnut.
(2) Apply two slippage marks across each control rod and jamnut as follows:
(i) Clean the area where a slippage mark is to be applied.
(ii) Apply two slippage marks across the control rod and jamnut, parallel and on opposite sides of each other. Each slippage mark must extend at least 0.5 inch onto the control rod and must not cover the inspection hole. Figure 1 (Sheet 2) of Sikorsky S-76 Helicopter Alert Service Bulletin 76-67-58, Basic Issue, dated November 19, 2015, illustrates a slippage mark across a control rod and jamnut.
(1) The Manager, Boston Aircraft Certification Office, FAA, may approve AMOCs for this AD. Send your proposal to: Blaine Williams, Aerospace Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, 1200 District Avenue, Burlington, Massachusetts 01803; telephone (781) 238-7161; email
(2) For operations conducted under a 14 CFR part 119 operating certificate or under 14 CFR part 91, subpart K, we suggest that you notify your principal inspector, or lacking a principal inspector, the manager of the local flight standards district office or certificate holding district office before operating any aircraft complying with this AD through an AMOC.
Sikorksy S-76 Helicopter Alert Service Bulletin 76-67-58, Basic Issue, dated November 19, 2015, which is not incorporated by reference, contains additional information about the subject of this AD. For service information identified in this AD, contact Sikorsky Aircraft Corporation, Customer Service Engineering, 124 Quarry Road, Trumbull, CT 06611; telephone 1-800-Winged-S or 203-416-4299; email:
Joint Aircraft Service Component (JASC) Code: 6700, Rotorcraft Flight Control.
United States Department of Justice.
Notice of proposed rulemaking.
Elsewhere in this
As of June 5, 2017, the notice of proposed rulemaking published at 81 FR 64092 (Sept. 19, 2016), is withdrawn. Comments on this notice of proposed rulemaking must be received by July 5, 2017.
Address all comments to the Privacy Analyst, Privacy and Civil Liberties Office, National Place Building, 1331 Pennsylvania Ave. NW., Suite 1000, Washington, DC 20530-0001, facsimile 202-307-0693, or email at
Please note that the Department is requesting that electronic comments be submitted before midnight Eastern Daylight Time on the day the comment period closes because
If you want to submit personal identifying information (such as your name, address, etc.) as part of your comment, but do not want it to be posted online or made available in the public docket, you must include the phrase “PERSONALLY IDENTIFYING INFORMATION” in the first paragraph of your comment. You must also place all personal identifying information you do not want posted online or made available in the public docket in the first paragraph of your comment and identify what information you want redacted.
If you want to submit confidential business information as part of your comment, but do not want it to be posted online or made available in the public docket, you must include the phrase “CONFIDENTIAL BUSINESS INFORMATION” in the first paragraph of your comment. You must also prominently identify confidential business information to be redacted within the comment. If a comment has so much confidential business information that it cannot be effectively redacted, all or part of that comment may not be posted online or made available in the public docket.
Personally identifying information and confidential business information identified and located as set forth above will be redacted and the comment, in redacted form, will be posted online and placed in the Department's public docket file. Please note that the Freedom of Information Act applies to all comments received. If you wish to inspect the agency's public docket file in person by appointment, please see the
Laurence Reed, DOJ Insider Threat Program Manager, United States Department of Justice, Insider Threat Prevention and Detection Program, 145 N Street NE., Washington, DC 20002, 202-357-0165,
The November 21, 2012, Presidential Memorandum—
In the Notice section of this
In this rulemaking, the DOJ proposes to exempt this Privacy Act system of records from certain provisions of the Privacy Act in order to avoid interference with the responsibilities of the DOJ to detect, deter, and/or mitigate insider threats as established by federal law and policy. For an overview of the Privacy Act, see:
On September 19, 2016, the Federal Bureau of Investigation (FBI), a component of the DOJ, published a new Privacy Act System of Records Notice titled, “FBI Insider Threat Program Records (ITPR),” JUSTICE/FBI-023, at 81 FR 64198. The FBI also issued a notice of proposed rulemaking, CPCLO No. 008-2016, at 81 FR 64092, proposing to exempt JUSTICE/FBI-023 from certain provisions of the Privacy Act. To consolidate Privacy Act notices under one DOJ-wide system of records, the Department is rescinding JUSTICE/FBI-023. In addition, the Department hereby withdraws the proposed rule, CPCLO No. 008-2016, published September 19, 2016, at 81 FR 64092, and will not publish a final rule to exempt JUSTICE/FBI-023 from certain provisions of the Privacy Act. Instead, the Department has published a new Privacy Act System of Records Notice titled, “DOJ Insider Threat Program Records,” JUSTICE/DOJ-018, and proposes to exempt this DOJ-wide
This proposed rule relates to individuals rather than small business entities. Pursuant to the requirements of the Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, therefore, the proposed rule will not have a significant economic impact on a substantial number of small entities.
The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996, 5 U.S.C. 801
The Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d), requires that DOJ consider the impact of paperwork and other information collection burdens imposed on the public. There are no current or new information collection requirements associated with this proposed rule. The records that are contributed to this system may be provided by individuals covered by this system, the DOJ and United States Government components, other domestic and foreign government entities, or purchased from private entities. Sharing of this information electronically will not increase the paperwork burden on the public.
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 103-3, 109 Stat. 48, requires Federal agencies to assess the effects of certain regulatory actions on State, local, and tribal governments, and the private sector. UMRA requires a written statement of economic and regulatory alternatives for proposed and final rules that contain Federal mandates. A “Federal mandate” is a new or additional enforceable duty, imposed on any State, local, or tribal government, or the private sector. If any Federal mandate causes those entities to spend, in aggregate, $100 million or more in any one year, the UMRA analysis is required. This proposed rule would not impose Federal mandates on any State, local, or tribal government or the private sector.
Administrative practices and procedures, Courts, Freedom of Information Act, Privacy Act.
Pursuant to the authority vested in the Attorney General by 5 U.S.C. 552a and delegated to me by Attorney General Order 2940-2008, 28 CFR part 16 is proposed to be amended as follows:
5 U.S.C. 301, 552, 552a, 553; 28 U.S.C. 509, 510, 534; 31 U.S.C. 3717.
(a) The Department of Justice Insider Threat Program Records (JUSTICE/DOJ-018) system of records is exempted from subsections 5 U.S.C. 552a(c)(3) and (4); (d)(1), (2), (3) and (4); (e)(1), (2) and (3); (e)(4)(G), (H) and (I); (e)(5) and (8); (f) and (g) of the Privacy Act. These exemptions apply only to the extent that information in this system is subject to exemption pursuant to 5 U.S.C. 552a(j) or (k). Where DOJ determines compliance would not appear to interfere with or adversely affect the purpose of this system to detect, deter, and/or mitigate insider threats, the applicable exemption may be waived by the DOJ in its sole discretion.
(b) Exemptions from the particular subsections are justified for the following reasons:
(1) From subsection (c)(3), the requirement that an accounting be made available to the named subject of a record, because this system is exempt from the access provisions of subsection (d). Also, because making available to a record subject the accounting of disclosures of records concerning him/her would specifically reveal any insider threat-related interest in the individual by the DOJ or agencies that are recipients of the disclosures. Revealing this information could compromise ongoing, authorized law enforcement and intelligence efforts, particularly efforts to identify and/or mitigate insider threats. Revealing this information could also permit the record subject to obtain valuable insight concerning the information obtained during any investigation and to take measures to impede the investigation,
(2) From subsection (c)(4) notification requirements because this system is exempt from the access and amendment provisions of subsection (d) as well as the accounting of disclosures provision of subsection (c)(3). The DOJ takes seriously its obligation to maintain accurate records despite its assertion of this exemption, and to the extent it, in its sole discretion, agrees to permit amendment or correction of DOJ records, it will share that information in appropriate cases.
(3) From subsection (d)(1), (2), (3) and (4), (e)(4)(G) and (H), (e)(8), (f) and (g) because these provisions concern individual access to and amendment of law enforcement, intelligence and counterintelligence, and counterterrorism records and compliance could alert the subject of an authorized law enforcement or intelligence activity about that particular activity and the interest of the DOJ and/or other law enforcement or intelligence agencies. Providing access could compromise information classified to protect national security; disclose information that would constitute an unwarranted invasion of another's personal privacy; reveal a sensitive investigative or intelligence technique; provide information that would allow a subject to avoid detection or apprehension; or constitute a potential danger to the health or safety of law enforcement personnel, confidential sources, or witnesses.
(4) From subsection (e)(1) because it is not always possible to know in advance what information is relevant and necessary for law enforcement and intelligence purposes. The relevance and utility of certain information that may have a nexus to insider threats may not always be fully evident until and unless it is vetted and matched with other information necessarily and lawfully maintained by the DOJ.
(5) From subsection (e)(2) and (3) because application of these provisions could present a serious impediment to efforts to detect, deter and/or mitigate insider threats. Application of these provisions would put the subject of an investigation on notice of the investigation and allow the subject an opportunity to engage in conduct intended to impede the investigative activity or avoid apprehension.
(6) From subsection (e)(4)(I), to the extent that this subsection is interpreted to require more detail regarding the
(7) From subsection (e)(5) because in the collection of information for authorized law enforcement and intelligence purposes, including efforts to detect, deter, and/or mitigate insider threats, due to the nature of investigations and intelligence collection, the DOJ often collects information that may not be immediately shown to be accurate, relevant, timely, and complete, although the DOJ takes reasonable steps to collect only the information necessary to support its mission and investigations. Additionally, the information may aid in establishing patterns of activity and providing criminal or intelligence leads. It could impede investigative progress if it were necessary to assure relevance, accuracy, timeliness and completeness of all information obtained throughout the course and within the scope of an investigation. Further, some of the records in this system may come from other domestic or foreign government entities, or private entities, and it would not be administratively feasible for the DOJ to vouch for the compliance of these agencies with this provision.
Environmental Protection Agency.
Proposed rule.
The Environmental Protection Agency (EPA) proposes to approve negative declarations submitted by the states of Colorado, Montana, North Dakota, South Dakota, and Wyoming, which certify that no small municipal waste combustor (MWC) units subject to sections 111(d) and 129 of the Clean Air Act (CAA) exist in those states. Second, EPA proposes to approve renewed negative declarations submitted by the states of Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming, which certify that no large MWC units subject to CAA sections 111(d) and 129 exist in those states. Third, EPA proposes to approve renewed negative declarations submitted by the states of Montana, South Dakota, Utah, and Wyoming, which certify that no commercial and industrial solid waste incineration (CISWI) units subject to CAA sections 111(d) and 129 exist in those states. Fourth, EPA proposes to approve negative declarations submitted by the states of Montana, North Dakota, South Dakota, Utah, and Wyoming, which certify that no other solid waste incineration (OSWI) units subject to CAA sections 111(d) and 129 exist in those states.
Written comments must be received on or before July 5, 2017.
Submit your comments, identified by Docket ID No. EPA-R08-OAR-2017-0171 at
Gregory Lohrke, Air Program, 1595 Wynkoop Street, Denver, Colorado 80202-1129, (303) 312-6396,
In the “Rules and Regulations” section of this
Environmental protection, Administrative practice and procedure, Air pollution control, Commercial industrial solid waste incineration, Intergovernmental relations, Municipal solid waste combustion, Other solid waste incineration, Reporting and recordkeeping requirements.
42 U.S.C. 7401
Federal Motor Carrier Safety Administration (FMCSA), DOT.
Advance notice of proposed rulemaking; withdrawal.
FMCSA withdraws its November 28, 2014 advance notice of proposed rulemaking (ANPRM) concerning financial responsibility for motor carriers, freight forwarders, and brokers. FMCSA is authorized to establish minimum levels of financial responsibility for motor carriers at or above the minimum levels set by Congress. In the ANPRM, FMCSA sought public comment on whether to exercise its discretion to increase the minimum levels of financial responsibility, and, if so, to what levels. After reviewing all public comments to the ANPRM, FMCSA has determined that it has insufficient data or information to support moving forward with a rulemaking proposal, at this time.
As of June 5, 2017 the proposed published on November 28, 2014 at 79 FR 70839 is withdrawn.
Jeff Secrist, Chief, Registration, Licensing & Insurance Division, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 20590-0001, by telephone at 202-385-2367 or by email at
On November 28, 2014, FMCSA published an ANPRM regarding Financial Responsibility for Motor Carriers, Brokers, and Freight Forwarders (79 FR 70839). In the ANPRM, the Agency announced that it was considering a rulemaking that would increase minimum levels of motor carrier financial responsibility for bodily injury or property damage
Regarding the core ANPRM issue of motor carrier financial responsibility limits, FMCSA sought public comment on whether to exercise its discretion to increase the minimum levels, and, if so, to what levels. Specifically, in the effort to gather relevant data, FMCSA posed a series of questions addressing the following matters:
• Premium Rates.
• Current Minimum Levels of Financial Responsibility.
• Impacts of Increasing the Minimum Level of Financial Responsibility.
• Compensation.
• Sources of Information.
• Timelines for implementation.
The Agency received 2,181 public comments in response to the ANPRM. Various stakeholders commented, including representatives of motor carriers, insurance companies, broker/freight forwarders, safety advocates, attorneys, drivers, and many others. Approximately 120 submissions, including one submission reflecting a petition signed by 11,366 individuals, expressed general support for increasing the minimum levels of financial responsibility for motor carriers without providing a substantive rationale for their opinion. Approximately 145 submissions expressed general opposition to increasing the minimum levels of financial responsibility for motor carriers without providing a substantive rationale for their opinions. The Agency appreciates the level of interest shown in the ANPRM and the efforts that stakeholders made to provide responsive information.
After considering whether to move forward with this rulemaking, the Agency has decided to withdraw the November 28, 2014 ANPRM because the Agency does not have sufficient data or information to support further rulemaking.
Despite receiving a significant number of comments in response to the ANPRM, commenters did not provide responsive information necessary to allow the Agency to proceed to a Notice of Proposed Rulemaking.
National Institute of Food and Agriculture, Office of the Secretary, USDA.
Notice of listening session and request for stakeholder input.
On behalf of the U.S. Department of Agriculture's (USDA) Pollinator Health Working Group, USDA National Institute of Food and Agriculture (NIFA) will host a Listening Session to discuss a strategy to monitor native bees in the United States.
The session will occur on Wednesday, June 28, 2017 from 8:00 a.m. to 3:30 p.m. (EST). Regardless of attendance, anyone interested may submit written comments. Those comments are due to Andrew Clark at
The meeting will take place at the USDA South Building Café Conference Center A-C located at 1400 Independence Avenue SW., Washington, DC 20250. All participants must report to the Independence Avenue and 12th Street entrance and must present a valid government-issued I.D. (
Onsite participants may provide a five-minute oral presentation addressing the following:
• Why is a national monitoring plan for native bees important;
• What kind of information/data is needed; and
• How would the information be used?
Registrants wishing to provide an oral presentation must provide a two to three sentence overview of the questions above. PowerPoint presentation are allowed but not required. If interested, please email your overview and PowerPoint to Andrew Clark at
Andrew Clark, Program Specialist, NIFA at (202) 401-6550 or by email at
• Invasive pests, parasites, and diseases;
• Increased exposure to pesticides, pollutants or toxins;
• Nutritional deficits;
• Extreme weather events;
• Agricultural intensification and habitat loss;
• Reduced genetic diversity; and
• Changes in pollinator or crop management practices.
The loss of both managed and wild bees would have severe impacts on crops that depend on pollinators, and would ultimately impact food security. This loss would also negatively impact natural ecosystem services dependent on pollinators.
In June 2014, a Presidential memorandum directed the formation of a National Pollinator Task Force chaired by the U.S. Secretary of Agriculture, and the Administrator of the U.S. Environmental Protection Agency (EPA). The Task Force released a Pollinator Research Action Plan in May 2015. The Plan included actions needed to assess native bee populations, including developing baseline data, assessing trends in pollinator populations, expanding bee identification capacities, and expanding collaboration between government and university scientists.
During 2015, Senators Barbara Boxer, Kristen Gillibrand, and Diane Feinstein asked the Government Accountability Office (GAO) to review USDA and EPA efforts to protect bee health.
In their 2016 report, a key GAO findings was,
“USDA has increased monitoring of honey bee colonies managed by beekeepers to better estimate losses nationwide but does not have a mechanism in place to coordinate the monitoring of wild, native bees.”
The GAO Report recommended that USDA coordinate with members of the Pollinator Task Force to develop a monitoring plan that would:
• Establish roles and responsibilities of lead and support agencies;
• Establish shared outcomes and goals; and
• Obtain input from relevant stakeholders, such as states.
A first step towards developing a national monitoring plan, the listening session will gather input from a diverse range of people who are interested in native bee diversity, abundance, and large scale national monitoring strategies.
Forest Service, USDA.
Notice; updating information.
The USDA Forest Service (Forest Service) is participating as a cooperating agency with the Federal Energy Regulatory Commission (FERC) in the preparation of the Atlantic Coast Pipeline (ACP) and Supply Header Project Environmental Impact Statement (EIS). On January 6, 2017, the Forest Service published in the
Information about the ACP Project is available from the FERC's Office of External Affairs at 866-208-FERC (3372), or on the FERC Web site (
For information related specifically to the new information provided in this Notice, please contact Karen Overcash, Forest Planner, George Washington and Jefferson National Forests, at 540-265-5175 or
This Notice is specific to the Forest Service. The Atlantic Coast Pipeline route would cross 5.1 miles of lands managed by the Monongahela National Forest (MNF), in Pocahontas County, West Virginia and 15.9 miles of lands managed by the George Washington National Forest (GWNF), in Highland, Bath, and Augusta Counties, Virginia. The Supply Header Project would not affect the Monongahela or George Washington National Forests.
The FERC is the NEPA Lead Federal Agency for the environmental analysis of the construction and operation of the proposed ACP and Supply Header Project. The Forest Service is the Federal agency responsible for authorizing this use and issuing special use permits for natural gas pipelines across National Forest System (NFS) lands under its jurisdiction. As a condition of issuing a Special Use Permit (SUP) for ACP to construct, operate, maintain, and eventually decommission a natural gas transmission pipeline that crosses NFS lands, the Forest Service would include such terms and conditions deemed necessary to protect Federal property and otherwise protect the public interest.
The Forest Service intends to adopt FERC's EIS for its decision to authorize the construction and operation of ACP, along with the necessary project-specific amendments to the LRMPs, if the analysis provides sufficient evidence to support those decisions and the Forest Service is satisfied that its comments and suggestions have been addressed.
On December 15, 2016 the Department of Agriculture Under Secretary for Natural Resources and Environment issued a final rule that amended the 36 CFR 219 regulations pertaining to National Forest System Land Management Planning (the planning rule) (81 FR 90723, 90737). The amendment to the 219 planning rule clarified the Department's direction for amending LRMPs. The Department also added a requirement for amending a plan for the responsible official to provide notice “about which substantive requirements of §§ 219.8 through 219.11 are likely to be directly related to the amendment” (36 CFR 219.13(b)(2), 81 FR at 90738). Whether a rule provision is directly related to an amendment is determined by any one of the following: The purpose for the amendment, a beneficial effect of the amendment, a substantial adverse effect of the amendment, or a lessening of plan protections by the amendment.
The following descriptions of the proposed or potential LRMP amendments that are anticipated to be addressed in the Final EIS include a description of the “substantive requirements of §§ 219.8 through 219.11” likely to be directly related to each amendment.
The FERC's Draft EIS for the ACP and the Notice of Availability published in the
The Draft EIS identified “project-specific plan amendments” that would be needed for the construction and operation of the ACP that otherwise could not, or potentially could not, meet certain standards in the MNF or GWNF LRMPs. These amendments are considered project-specific amendments because they would apply only to ACP and would not change LRMP requirements for other projects.
Since the Draft EIS, the Forest Service has reconsidered whether a project-specific amendment would still be necessary to ensure the ACP was consistent with some of the LRMP standards, has identified the need for a project-specific amendment with respect to several other LRMP standards, and has determined that a management prescription reallocation would not be necessary to approve the project.
The following potential amendment to the MNF LRMP would be a project-specific amendment, applicable only to the ACP Project. This amendment would not change the applicability of
The amendment would provide an exception from these standards for the ACP Project and include specific mitigation measures and project design requirements for the project.
The 36 CFR 219 planning rule requirements likely to be directly related to this proposed amendment are:
§ 219.8(a)(2)(ii)—“[The plan must include plan components to maintain or restore] Soils and soil productivity, including guidance to reduce soil erosion and sedimentation,” and
§ 219.10(a)(3)—“[The responsible official shall consider] Appropriate placement and sustainable management of infrastructure, such as recreational facilities and transportation and utility corridors.”
If this potential amendment is determined to be “directly related” to the substantive rule requirements, the Responsible Official must apply those requirements within the scope and scale of the amendment and, if necessary, make adjustments to the amendment to meet these rule requirements (36 CFR 219.13 (b)(5) and (6)).
The following proposed amendment to the GWNF LRMP would be a project-specific amendment, applicable only to the ACP Project. This amendment would not change the applicability of LRMP requirements for other, future projects.
This Management Prescription (Rx) allocation change would change management direction for any future activities within the designated Rx 5C corridor, and would not have been considered a project-specific amendment.
However, upon further examination, the Forest Service has determined it would be preferable to not reallocate the ACP operational corridor to a Management Prescription that would encourage future co-location opportunities. Instead the proposal is to now amend the LRMP with a project-specific amendment that would exempt the ACP Project from the requirements in Forestwide Standards FW-243 and FW-244. With this change, the 53.5 foot wide right-of-way needed for the ACP would remain within the existing management prescription areas (of Rx 4A—Appalachian National Scenic Trail Corridor, Rx 7E1—Dispersed Recreation Areas; Rx 11—Riparian Corridors; and Rx 13—Mosaics of Wildlife Habitat).
This change from a plan amendment affecting future management to a project-specific amendment would also change the administrative review process for this proposed amendment from the 36 CFR 219, Subpart B procedures as described in the January 6, 2017
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment is:
§ 219.10(a)(3)—“[The responsible official shall consider] “Appropriate placement and sustainable management of infrastructure, such as recreational facilities and transportation and utility corridors.”
The amendment would provide an exception from these standards for the ACP Project and include specific mitigation measures and project design requirements for the project.
The 36 CFR 219 planning rule requirements likely to be directly related to amending the above standards are:
§ 219.8(a)(2)(ii)—“[The plan must include plan components to maintain or restore] Soils and soil productivity, including guidance to reduce soil erosion and sedimentation;”
§ 219.8(a)(2)(iv)—“[The plan must include plan components to maintain or restore] Water resources in the plan area, including lakes, streams, and wetlands; . . . and other sources of drinking water (including guidance to prevent or mitigate detrimental changes in quantity, quality, and availability);” and
§ 219.8(a)(3)(i)—The plan must include plan components “to maintain or restore the ecological integrity of riparian areas in the plan area, including plan components to maintain or restore structure, function, composition, and connectivity.”
The Draft EIS for the ACP and the January 6, 2017
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment is:
§ 219.10(b)(1)(vi)—“[The plan must include plan components to provide for] Appropriate management of other designated areas or recommended designated areas in the plan area.”
A determination on the need for this amendment will be made following completion of an old growth inventory of the stands within the ACP Project's construction zone.
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment, if needed, is:
§ 219.11(c)—“The plan may include plan components to allow for timber harvest for purposes other than timber production . . . or portions of the plan area, as a tool to assist in achieving or maintaining one or more applicable desired conditions or objectives of the plan . . .”
This potential amendment is contingent on the final location of access roads needed for the pipeline.
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment, if needed, is:
§ 219.10(b)(v)—“Protection of designated wild and scenic rivers as well as management of rivers found eligible or determined suitable for the National Wild and Scenic River system to protect the values that provide the basis for their suitability for inclusion in the system.”
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment is:
If any of the six parts of the proposed amendment to the GWNF LRMP described above are determined to be “directly related” to a substantive rule requirement, the Responsible Official must apply that requirement within the scope and scale of the proposed amendment and, if necessary, make adjustments to the proposed amendment to meet the rule requirement (36 CFR 219.13(b)(5) and (6)).
The Forest Service's January 6, 2017 Notice of Availability in the
Since the Regional Foresters will be the Responsible Officials for both the decisions to authorize the construction and operation of the ACP as well as the LRMP amendments, the Reviewing Official for all of the decisions will be the National Forest System Associate Deputy Chief (36 CFR 218.3(a)).
Forest Service, USDA.
Notice of intent to prepare an environmental impact statement.
The Payette National Forest (PNF) is preparing an Environmental Impact Statement (EIS) to evaluate and disclose the potential environmental effects from: (1) Approval of the “Stibnite Gold Project Plan of Restoration and Operations” (Plan) submitted by Midas Gold Idaho, Inc. (Midas Gold) in September 2016, to occupy and use National Forest System (NFS) lands for operations associated with open-pit mining and ore processing; and (2) related amendments to the Payette National Forest Land and Resource Management Plan (Payette Forest Plan, 2003) and/or the Boise National Forest Land and Resource Management Plan (Boise Forest Plan, as amended in 2010).
The United States Army Corps of Engineers (USACE) will cooperate on the preparation of the EIS and evaluate its content to ensure that the EIS can be adopted by the USACE to support an eventual decision to either issue, issue with conditions, or deny a Department of the Army Permit under Section 404 of the Clean Water Act (CWA) for the Plan. The United States Environmental Protection Agency (EPA) will cooperate on the preparation of the EIS and evaluate its content to ensure that the EIS can be adopted in support of the decision-making process for issuance of a National Pollutant Discharge Elimination System (NPDES) Permit under Section 402 of the CWA.
Comments concerning the scope of the analysis must be received by July 20, 2017.
Webform submission of comments is encouraged. Comments can be submitted via the project Web page at
Brian Harris, Public Affairs Officer, at 1-208-634-0784 or
Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern Time, Monday through Friday.
The Stibnite Gold Project (Project) is located in both the PNF and BNF. The PNF will be the lead unit for processing and administering the Plan on NFS lands.
The purpose of the Forest Service's action is to provide for approval of the Plan, which would govern occupancy and use of NFS lands for operations that are reasonably incident to mining. To provide for such approval, the Responsible Official needs to determine whether reasonable changes or additions to the Plan are necessary in order to meet the requirements of regulations set forth in 36 CFR 228 Subpart A and other applicable laws, regulations, or policies, prior to approval.
Midas Gold submitted a plan of operations for mining on NFS lands, titled “Stibnite Gold Plan of Restoration and Operations” (Plan) to the Forest Service in September 2016, in accordance with Forest Service regulations for locatable minerals set forth at 36 Code of Federal Regulations (CFR) 228 Subpart A. In order to comply with its statutory and regulatory obligations to respond to the Plan submitted by Midas Gold Idaho, Inc. (Midas Gold), the Forest Service must: (1) Evaluate the Plan; (2) consider requirements set forth at 36 CFR 228.8, including those to minimize adverse effects to the extent feasible, comply with applicable laws, regulations, and standards for environmental protection, and provide for reclamation; and (3) respond to the Plan as set forth at 36 CFR 228.5(a). The Responsible Official determined the Plan to be administratively complete in December 2016. Approval of the Plan and issuance of permits under the CWA would be major federal actions subject to the National Environmental Policy Act (NEPA). Accordingly, the federal land management and regulatory agencies must also prepare an EIS to consider and publicly disclose the potential environmental effects of the proposed action.
The Responsible Official proposes to approve the Plan submitted by Midas Gold, with any modifications determined necessary through the analysis to comply with applicable laws and regulations. USACE would review the Plan and EIS for purposes of evaluating Midas Gold's application for a Department of the Army Permit under Section 404 of the CWA. EPA would review the Plan and EIS for purposes of evaluating Midas Gold's application for a related NPDES Permit under Section 402 of the CWA. As described in the Plan, the Project would affect federal, state, and private lands. The proposed action by the Forest Service would only authorize approval of mining-related operations on NFS lands, because the Forest Service does not have jurisdiction to regulate mining operations that occur on private or state land. However, the EIS will consider and disclose environmental effects of mining-related operations that would occur on private and state lands. Connected actions related to the Plan, including but not necessarily limited to CWA permitting by USACE and EPA and related amendments of the Payette and Boise Forest Plans, will be
The Project area is located in the upper East Fork of the South Fork of the Salmon River (EFSFSR) drainage, approximately 44 air miles northeast of the City of Cascade and three miles east of the Frank Church-River of No Return Wilderness in Valley County, Idaho. Operations would impact approximately 500 acres of patented mining claims owned or controlled by Midas Gold and approximately 1,500 acres of federal public lands comprised of adjacent NFS lands administered by the PNF and two supporting-infrastructure corridors located primarily in the BNF. Parts of the Project area, such as the Stibnite mine site, have been impacted by historic mining and ore processing operations. Some of these impacts have been remediated, but legacy mining impacts remain.
Midas Gold's stated objective is to economically develop and operate a modern mine, while providing environmental restoration of impacts related to historic mining activities at the site and socioeconomic benefits in surrounding areas. Midas Gold's Plan includes descriptions of the following operations and activities to be conducted on a mixture of NFS, State, and private lands:
• Redevelopment and Construction (2 to 3 years): Developing supporting infrastructure, including upgraded and reconstructed powerline, communication sites, upgraded and/or new roads (including a long-term, temporary mine access and public by-pass route), maintenance facility, and onsite housing, oxygen plant, and water management infrastructure; relocation and reuse of spent ore and construction of a lined tailings storage facility; modifying stream channel to reduce sedimentation and restore wetland function and fish passage (including temporarily rerouting the East Fork of the South Fork of the Salmon River [EFSFSR] through a fish-passable tunnel); planting burned areas; initial mining of one open pit (which will require closure of the Stibnite road through the mine site); and constructing development rock storage and temporary ore stockpile facilities, crusher, and ore processing facilities.
• Mining and Ore Processing (12 to 15 years): Resuming mining from two historical and one new open pit at a rate of approximately 40,000 to 100,000 tons of material per day; processing up to 25,000 tons per day of ore to recover gold/silver dorè and antimony concentrate; historical tailings reprocessing and clean-up; placing neutralized new and reprocessed tailings in the tailings storage facility; placing development rock in four engineered facilities, backfilling Yellow Pine pit; and concurrent reconstruction of stream channels, riparian areas, wetlands, and upland habitat, including restoring the EFSFSR to its approximate original gradient across the backfilled Yellow Pine pit.
• Initial Closure and Reclamation (2 to 3 years): Removing structures and facilities; decommissioning temporary roads; recontouring and drainage; additional wetland mitigations; reconstructing the Stibnite Road and various stream channels in the project area; and growth media placement and revegetation.
• Post-Closure and Monitoring (5 to 7 years): Establishing a wetland on top of the tailings storage facility; reclaiming rock storage facilities; monitoring reclamation and remediation projects.
An initial review of the consistency of the Plan with both the Payette and Boise Forest Plans indicates that approval of the Plan as submitted would result in conditions that are inconsistent with the forest plans. Amendments to the forest plans may be required to address inconsistencies with Forest Plan standards including standards for recreation, roadless areas, vegetation, visual quality, and wildlife.
The EIS will disclose the effects of the no-action alternative, which, while not within the Responsible Official's discretion, would provide a baseline against which action alternatives can be compared, and the proposed action, approval of Midas Gold's Plan. Additional alternatives and Project design features may be evaluated in the EIS. Alternatives and design features determined reasonable and necessary to meet Forest Service regulations for locatable minerals set forth at 36 CFR 228 Subpart A may require changes and/or additions to the Plan. Further information regarding the nature of the decision(s) to be made is presented in the following section.
The Forest Service will be the lead agency preparing the EIS. Currently, five Cooperating agencies have been identified, they are:
The Forest Supervisor of the PNF has been delegated authority for decisions related to the Plan on the BNF and will be the Responsible Official who prepares the record of decision (ROD) necessary to approve the portions of the Plan on NFS lands. USACE and EPA will prepare final decisions for their respective permitting action(s).
The Responsible Official will consider the beneficial and adverse impacts of each alternative. With respect to the portions of the Plan on NFS lands, the Forest Service Responsible Official has discretion to determine whether changes in, or additions to, the Plan will be required prior to approval. However, the Responsible Official cannot categorically prohibit operations that are reasonably incident to mining of locatable minerals on NFS lands in the area of the proposed Plan.
Using the analysis in the EIS and supporting documentation, the Forest Service Responsible Official will make the following decisions regarding the Plan:
1. Decide whether to approve the Plan as submitted by Midas Gold, or to require changes or additions to the Plan to meet the requirements for environmental protection and reclamation set forth at 36 CFR 228 Subpart A before approving a final Plan. The Forest Service decision may be to approve a plan of operations composed of elements from one or more of the alternatives considered. The alternative that is selected for approval in the final Plan must minimize adverse impacts on NFS surface resources to the extent feasible.
2. Decide whether to approve amendments to the forest plans, if
3. Decide whether and/or how to mitigate the effects of the proposed mining operation to existing public motorized access.
The Forest Service would release a draft ROD in conjunction with the final EIS. The draft ROD would address approval of the Plan, and any related project-specific Forest Plan or Travel Plan amendments that may be required. The draft decision would be subject to 36 CFR 218, “Project-Level Pre-decisional Administrative Review Process.” Depending on the nature of the forest plan amendments required, the draft decisions may also be subject to 36 CFR 219 Subpart B, “Pre-decisional Administrative Review Process.”
Following resolution of objections to the draft ROD, a final ROD would be issued. As the operator, Midas Gold would have an opportunity to appeal the decision as set forth at 36 CFR 214, “Postdecisional Administrative Review Process for Occupancy and Use of National Forest System Lands and Resources.”
Prior to approval of the Plan, Midas Gold may be required to modify the September 2016 Plan to comply with the description of the selected alternative in the final ROD. In addition, the PNF Forest Supervisor would require Midas Gold to submit a reclamation bond or provide proof of other acceptable financial assurance to ensure that NFS lands and resources involved with the mining operation are reclaimed in accordance with the approved Plan and Forest Service requirements for environmental protection (36 CFR 228.8 and 228.13). After the Forest Service has determined that the Plan conforms to the ROD as well as other regulatory requirements, including acceptance of financial assurance for reclamation, it would approve the Plan. Implementation of mining operations that affect NFS lands and resources may not commence until the reclamation bond or other financial assurance is in place and a plan of operations is approved.
Issues to be analyzed in the EIS will be developed during this scoping process. Preliminary issues expected to be analyzed include potential impacts to: Access and transportation; aesthetics and visual resources; botanical resources, including wetlands and threatened, endangered, proposed, and sensitive species; climate and air quality; cultural and heritage resources; environmental justice; federal land management and environmental protection; fire and fuels management; fisheries and wildlife, including threatened, endangered, proposed, and sensitive species; geochemistry; geology; hazardous materials; land use; long-term, post-closure site management; noise; public health and safety; recreation; roadless and wilderness resources; socioeconomics; soils and reclamation cover materials; timber resources; water resources (groundwater and surface water); and water rights.
Aspects of the Plan will also require other permitting, including by the Idaho Departments of Lands, Environmental Quality, and Water Resources.
This notice of intent initiates the scoping (public involvement) process, which guides the development of the EIS. Public comments may be submitted to the PNF in a variety of ways, including: via email, via the project Web site, by mail, and via FAX. In addition, the PNF will conduct scoping meetings, during which members of the public can learn about the Forest Service proposed action and the NEPA process and submit written comments. Comments sought by the PNF include comments specific to the proposed action, information that could be pertinent to analysis of environmental effects, identification of significant issues, and identification of potential alternatives.
Written comments may be sent to: Payette National Forest, ATTN: Forest Supervisor Keith Lannom—Stibnite Gold EIS, 500 N. Mission St., McCall, ID 83638. Comments may also be sent via email with a Subject Line reading “Stibnite Gold EIS Scoping Comment” to
It is important that reviewers provide their comments at such times and in such manner that they are useful to preparation of the EIS. Therefore, to be most useful, comments should be provided prior to the close of the scoping comment period and should clearly articulate the reviewer's concerns and contentions.
Comments submitted anonymously will be accepted and considered; however, without an associated name and address, receiving further correspondences concerning the proposed action will not be possible and those individuals will not have standing for objection.
Forest Service, USDA.
Notice; updating information.
The USDA Forest Service (Forest Service) is participating as a cooperating agency with the Federal Energy Regulatory Commission (FERC) and the Bureau of Land Management (BLM) in the preparation of the Mountain Valley Pipeline Project (MVP) and Equitrans Expansion Project (EEP) Environmental Impact Statement (EIS). On October 14, 2016, the Forest Service published in the
Information about the MVP Project is available from the FERC's Office of External Affairs at 866-208-FERC (3372), or on the FERC Web site (
For information related specifically to the new information provided in this Notice, please contact Karen Overcash, Forest Planner, George Washington and Jefferson National Forests at 540-265-5175 or
This Notice is specific to the Forest Service. The Mountain Valley Pipeline route would cross about 3.4 miles of lands managed by the Jefferson National Forest (JNF), in Monroe County, West Virginia and Giles and Montgomery Counties, Virginia. The Equitrans Expansion Project would not cross the Jefferson National Forest.
The FERC is the NEPA Lead Federal Agency for the environmental analysis of the construction and operation of the proposed MVP and Equitrans Expansion Project. Under the Mineral Leasing Act (30 U.S.C. 185
The FERC's Draft EIS for the MVP Project included the consideration of a BLM right-of-way grant across Federal lands, along with the associated proposed Forest Service LRMP amendments. The BLM and Forest Service can adopt FERC's EIS for agency decisions, including the necessary amendments to the LRMP, if the analysis provides sufficient evidence to support those decisions and the Forest Service is satisfied that its comments and suggestions have been addressed.
On December 15, 2016 the Department of Agriculture Under Secretary for Natural Resources and Environment issued a final rule that amended the 36 CFR 219 regulations pertaining to National Forest System Land Management Planning (the planning rule) (81 FR 90723, 90737). The amendment to the 219 planning rule clarified the Department's direction for amending LRMPs. The Department also added a requirement for amending a plan for the responsible official to provide notice “about which substantive requirements of §§ 219.8 through 219.11 are likely to be directly related to the amendment” (36 CFR 219.13(b)(2), 81 FR at 90738). Whether a rule provision is directly related to an amendment is determined by any one of the following: The purpose for the amendment, a beneficial effect of the amendment, a substantial adverse effect of the amendment, or a lessening of plan protections by the amendment.
The following descriptions of the proposed amendments to the JNF's LRMP that are anticipated to be addressed in the Final EIS include a description of the “substantive requirements of §§ 219.8 through 219.11” likely to be directly related to each amendment.
The FERC's Draft EIS for the MVP and the Notice of Availability published in the
The Draft EIS identified project-specific plan amendments that would be needed for the construction and operation of the MVP that otherwise could not, or potentially could not, meet certain standards in the JNF LRMP. These amendments are considered project-specific amendments because they would apply only to MVP and would not change LRMP requirements for other projects.
Since the Draft EIS, the Forest Service has reconsidered whether a project-specific amendment would still be necessary to ensure the MVP was consistent with some of the LRMP standards, has identified the need for a project-specific amendment with respect to several other LRMP standards, and has determined that a management prescription reallocation would not be necessary to approve the project.
The following proposed amendment to the JNF LRMP would be a project-specific amendment, applicable only to the MVP Project. This amendment would not change the applicability of LRMP requirements for other, future projects.
This Management Prescription (Rx) allocation change would change management direction for any future activities within the designated Rx 5C corridor, and would not have been considered a project-specific amendment.
However, upon further examination, the Forest Service has determined it would be preferable to not reallocate the MVP corridor to a Management Prescription 5C Utility Corridor that would be 500 feet wide and would encourage future co-location opportunities. Instead the proposal is to now amend the LRMP with a project-specific amendment that would exempt the MVP Project from the requirements in Forestwide Standards FW-247 and FW-248. With this change, the 50 foot wide right-of-way needed for the MVP would remain within the existing management prescription areas (of Rx
This change from a plan amendment affecting future management to a project-specific amendment would also change the administrative review process for this proposed amendment from the 36 CFR 219, Subpart B procedures as described in the October 14, 2016
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment is:
§ 219.10(a)(3)—“[The responsible official shall consider] “Appropriate placement and sustainable management of infrastructure, such as recreational facilities and transportation and utility corridors.”
The amendment would provide an exception from these standards for the MVP Project and include specific mitigation measures and project design requirements for the project.
The 36 CFR 219 planning rule requirements likely to be directly related to amending the above standards are:
§ 219.8(a)(2)(ii)—“[The plan must include plan components to maintain or restore] Soils and soil productivity, including guidance to reduce soil erosion and sedimentation;”
§ 219.8(a)(2)(iv)—“[The plan must include plan components to maintain or restore] Water resources in the plan area, including lakes, streams, and wetlands; . . . and other sources of drinking water (including guidance to prevent or mitigate detrimental changes in quantity, quality, and availability);” and
§ 219.8(a)(3)(i)—The plan must include plan components “to maintain or restore the ecological integrity of riparian areas in the plan area, including plan components to maintain or restore structure, function, composition, and connectivity.”
The Draft EIS for the MVP and the October 14, 2016
However, while an amendment to Standard FW-77 will not be needed, since proposed amendment—part 1 has been changed and the lands will not be reallocated to Management Prescription 5C, the pipeline will be located on lands in Management Prescription 6C. As such, the following standards in Management Prescription 6C will need to be amended to allow for a new utility right-of-way within this prescription area:
The 36 CFR 219 planning rule requirements likely to be directly related to this part of the amendment are:
§ 219.8(a)(1)—“The plan must include plan components, including standards and guidelines, to maintain or restore the ecological integrity of terrestrial and aquatic ecosystems and watersheds in the plan area, including plan components to maintain or restore structure, function, composition, and connectivity.”
§ 219.11(c)—“The plan may include plan components to allow for timber harvest for purposes other than timber production . . . or portions of the plan area, as a tool to assist in achieving or maintaining one or more applicable desired conditions or objectives of the plan . . .”
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment is:
§ 219.10(b)(1)(vi)—“[The plan must include plan components to provide for] Appropriate management of other designated areas or recommended designated areas in the plan area.”
The Draft EIS for the MVP and the October 14, 2016
The 36 CFR 219 planning rule requirement likely to be directly related to this part of the amendment is:
§ 219.10(b)(i)—“[The plan must include plan components to provide for] “Sustainable recreation; . . . and scenic character.”
If any of the five parts of the proposed amendment to the JNF LRMP described above are determined to be “directly related” to a substantive rule requirement, the Responsible Official must apply that requirement within the scope and scale of the proposed amendment and, if necessary, make adjustments to the proposed amendment to meet the rule requirement (36 CFR 219.13 (b)(5) and (6)).
The decision for a right-of-way grant across Federal lands will be documented in a record of decision issued by the BLM. The BLM's decision to issue, condition, or deny a right-of-way will be subject to BLM administrative review procedures established in 43 CFR 2881.10 and the procedures established in section 313(b) of the Energy Policy Act of 2005. The Forest Service concurrence to BLM to issue the right-of-way grant would not be a decision subject to the NEPA and therefore, would not be subject to the Forest Service administrative review procedures. The Forest Service would, however, issue its own draft record of decision for the project-specific amendment to the JNF LRMP that would be subject to the administrative review procedures under the 36 CFR 218 regulations (per 36 CFR 219.59(b)).
The Reviewing Official for any objection filed on amending the JNF LRMP to allow for the MVP Project will be the Regional Forester for the Southern Region, or if delegated, the Deputy Regional Forester (36 CFR 218.3(a)).
The Forest Supervisor for the George Washington and Jefferson National Forests, Joby P. Timm, is the Responsible Official for amending the Jefferson National Forest LRMP.
Forest Service, USDA.
Notice of initiating the assessment phase of the land management plan revision for the Grand Mesa, Uncompahgre and Gunnison National Forests.
The Grand Mesa, Uncompahgre and Gunnison National Forests (GMUG), located on the western slope of the Colorado Rockies, are initiating the forest planning process pursuant to the 2012 National Forest System Land Management Planning rule. This process will result in a revised and updated Natural Resource Land Management Plan, often referred to as the Forest Plan, which will guide all management activities on the GMUG for the next fifteen years. The current GMUG Forest Plan was completed in 1983, and was subsequently amended in 1991, 1993, 2005, 2007, and 2009. Previous efforts to revise the Forest Plan, including an eight-year effort involving extensive public participation and the development of comprehensive assessments, a need for change report, and a proposed plan were shelved due to the overturning of the 2008 planning rule. Now that the national 2012 Planning Rule has been established, the GMUG will reinitiate the plan revision process.
The plan revision process encompasses three stages: Assessment, plan revision, and monitoring. This notice announces the initiation of the assessment phase, the first stage of the plan revision process, which involves assessing ecological, social and economic conditions and trends in the planning area and documenting the findings in an Assessment report. For the first phase, the GMUG has posted helpful resources, including the current Forest Plan and subsequent amendments, information from the 2006 and 2007 revision efforts, and the Citizen's Guide to National Forest Planning, on the GMUG Forest Plan Web site listed below.
During this assessment phase, the GMUG invites other government agencies, non-governmental parties, and the public to share material about existing and changed conditions, trends, and perceptions of social, economic and ecological systems. The GMUG will host a variety of public outreach forums in summer and fall of 2017 to facilitate this effort, and the public is encouraged to participate and provide meaningful contributions. The GMUG is seeking local knowledge of social values, available data resources, areas of use and activities, goods and services produced by lands within the GMUG, and relevant material that will help inform desired conditions, standards and guidelines, land suitability determinations, and other plan components. This information will help identify gaps in the current management plan and inform the need for change, highlighting priority issues that should be addressed in this revision. Public participation and collaboration are essential steps to understanding current conditions, available data, and feedback needed to support a strategic, efficient and effective revision process.
Several guiding principles, developed to overcome stakeholder-identified challenges, will drive public engagement throughout the plan revision process. These guiding principles include providing direct and transparent communication through a variety of methods, maintaining focused public involvement, building relationships, and promoting sharing, learning and understanding between the agency and the public. These guiding principles will help the GMUG ensure
In summer and fall of 2017, the public is invited to engage in the assessment phase of the revision process, for which public engagement opportunities will be posted on the GMUG Forest Plan Web site located at:
Send written comments to Grand Mesa, Uncompahgre, and Gunnison National Forests, Attn: Plan Revision, 2250 HWY 50, Delta CO, 81416. Written comments may also be sent via email to
Clay Speas, Acting Renewable Resources Planning Staff Officer, 970-874-6677,
The National Forest Management Act (NFMA) of 1976 requires that every National Forest System (NFS) unit develop a land management plan, often called a Forest Plan. On April 9th, 2012, the Forest Service finalized its land management planning rule, referred to as the 2012 Planning Rule, which describes requirements for the planning process and provides programmatic direction to National Forests and National Grasslands for developing and implementing their forest plans. Forest plans describe the strategic direction for management of forest resources, and are adaptive and amendable as conditions change over time, in order to remain relevant for their intended application period of 10-15 years.
Similar to the 2008 Planning Rule, the 2012 Planning Rule requires the forests to outline desired conditions for each management area, specify objectives to achieve those conditions, and engage the public extensively throughout the plan revision process. However, the 2012 Planning Rule diverges from previous iterations in several guiding concepts and substantive components, particularly in relying on the concept of ecological integrity to frame plan assessment, develop plan components, and fulfill monitoring requirements. Based on current estimates, it is expected to take four years to produce a revised Forest Plan.
Pursuant to the 2012 Planning Rule (CFR part 219), the revision process encompasses three stages: Assessment, plan revision and monitoring.
To identify as much relevant information as possible, the GMUG is encouraging contributors to share their concerns and perceptions of the conditions and trends in social, economic and environmental systems within the GMUG planning area. Meetings, review and comment periods, and other opportunities for public engagement throughout the plan revision process will be publicized, with announcements posted on the Forests' planning Web site at
The responsible official for the revision of the land management plan for the Grand Mesa, Uncompahgre and Gunnison National Forests is Scott Armentrout, Forest Supervisor, Grand Mesa, Uncompahgre and Gunnison National Forests, 2250 HWY 50, Delta, CO 81416.
Enforcement and Compliance, International Trade Administration, Commerce.
On December 27, 2016, the Department of Commerce (the Department) published the preliminary results of the fourth administrative review (AR) of the antidumping duty (AD) order on multilayered wood flooring (MLWF) from the People's Republic of China (PRC). The period of review (POR) for the AR is December 1, 2014, through November 30, 2015. The AR covers 111 companies. The review covers two mandatory respondents, Dalian Penghong Floor Products Co., Ltd. (Penghong) and Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. (Senmao). We received comments from interested parties on our
Effective June 5, 2017.
William Horn or Aleksandras Nakutis, AD/CVD Operations, Office IV, Enforcement & Compliance, International Trade Administration, Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-2615, and (202) 482-3147, respectively.
On December 27, 2016, the Department published in the
The merchandise covered by the order includes MLWF, subject to certain exceptions.
While HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise is dispositive.
The Department has conducted this review in accordance with section 751(a)(1)(B) of the Tariff Act of 1930, as amended (the Act). Export prices and constructed export prices have been calculated in accordance with section 772 of the Act. Because the PRC is a non-market economy (NME) within the meaning of section 771(18) of the Act, normal value (NV) has been calculated in accordance with section 773(c) of the Act.
For a full description of the methodology underlying our conclusions, please
In the
• We granted Power Dekor no shipment status during the POR.
• We assigned a separate rate to the Fusong Jinlong Group, which includes all four members of the group: Fusong Jinlong Wooden Group Co., Ltd., Fusong Qianqiu Wooden Product Co., Ltd., Dalian Qianqiu Wooden Product Co., Ltd., and Fusong Jinqiu Wooden Product Co., Ltd.
• We revised the calculation of the surrogate value for water in Penghong's margin program by converting MT to KG before applying the water surrogate value to the reported water consumption.
• We added the value of free of charge inputs to Penghong's calculation of export price as applicable.
• We corrected the surrogate values for red oak, jatoba, plastic strip, and overlaying glue that are applicable for Senmao; that were inadvertently assigned incorrect surrogate values in the
• We revised the surrogate value for plywood for Senmao to reflect Romanian Harmonized Tariff Schedule (HTS) 441232 rather than using a simple average of Romanian HTS 44123210 and 44123190.
The Department determines that twenty companies subject to this review did not establish eligibility for a separate rate. As such, we determine they are part of the PRC-wide entity.
For companies subject to this review that have established their eligibility for a separate rate, the Department determines that the following dumping margins exist for the POR from December 1, 2014, through November 30, 2015:
Pursuant
With respect to Dongtai Zhangshi Wood Industry Co., Ltd. and Huzhou Muyun Wood Co., Ltd., the Department has found each of these company's one sale during the POR to be a non-
The Department will determine, and CBP shall assess, antidumping duties on all appropriate entries covered by this review.
In accordance with section 751(a)(2)(C) of the Act, the Final Results of this review shall be the basis for the assessment of antidumping duties on entries of merchandise covered by the Final Results of this review and for future deposits of estimated duties, where applicable.
The following cash deposit requirements will be effective upon publication of these Final Results of review for shipments of the subject merchandise from the PRC entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided by section 751(a)(2)(C) of the Act: (1) For the companies listed above the cash deposit rate will be their respective rate established in the Final Results of this review, except if the rate is zero or
The Department intends to disclose calculations performed for these Final Results to the parties within five days of the date of publication of this notice.
This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Department's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
This notice also serves as a final reminder to parties subject to APO of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.
We are issuing and publishing these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.
Enforcement and Compliance, International Trade Administration, Commerce.
On May 3, 2017, the United States Court of International Trade (CIT or the Court) entered final judgment sustaining the Department of Commerce's (Department) final remand redetermination concerning the countervailing duty (CVD) investigation of oil country tubular goods (OCTG) from the People's Republic of China (PRC). The Department is notifying the public of that the Court's final judgment in this case is not in harmony with the Department's amended final determination with respect to Jiangsu Changbao Steel Tube Co., Ltd. (Changbao), Tianjin Pipe (Group) Co. (TPCO), Wuxi Seamless Oil Pipe Co., Ltd. (Wuxi), and Zhejiang Jianli Enterprise Co., Ltd. (Jianli), and all other exporters and producers.
Effective May 13, 2017.
Aimee Phelan or Jennifer Shore, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-0697 or (202) 482-2778, respectively.
On December 7, 2009, the Department published its final determination in the CVD investigation of OCTG from the PRC.
The Court remanded aspects of the Department's findings for further consideration.
On December 20, 2016, the Department issued its
On May 3, 2017, the CIT sustained the Department's
In its decision in
As there is now final court decision, the Department amends its
Because there has been a subsequent administrative review for Wuxi, the cash deposit rate for Wuxi will remain the rate established in the final results of the 2012 administrative review, which is 59.29 percent.
Pursuant to section 705(c)(5)(A) of the Act, companies not individually investigated are assigned an “all-others” countervailable duty rate. As a general rule, the all-others rate is equal to the weighted average countervailable subsidy rates established for individually investigated producers and producers, excluding any zero and
This notice is issued and published in accordance with sections 516A(e)(1), 705(c)(1)(B), and 777(i)(1) of the Act.
Enforcement and Compliance, International Trade Administration, Commerce.
Effective June 5, 2017.
John Corrigan and Yasmin Bordas at (202) 482-7438 and (202) 482-3813, respectively (Italy); Justin Neuman and Omar Qureshi at (202) 482-0486 and (202) 482-5307, respectively (Turkey), AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.
On April 17, 2017, the Department of Commerce (Department) initiated countervailing duty investigations (CVD) on carbon and alloy steel wire rod from Italy and the Republic of Turkey (Turkey).
Section 703(b)(1) of the Tariff Act of 1930, as amended (the Act), requires the Department to issue the preliminary determination in a CVD investigation within 65 days after the date on which the Department initiated the investigation. However, if the petitioner makes a timely request for a postponement, section 703(c)(1)(A) of the Act allows the Department to postpone making the preliminary determination until no later than 130 days after the date on which the Department initiated the investigation.
On May 25, 2017, Nucor Corporation (Nucor), a petitioner in the underlying investigation, submitted timely requests pursuant to section 703(c)(1)(A) of the Act and 19 CFR 351.205(e) to postpone the preliminary determinations.
This notice is issued and published pursuant to section 703(c)(2) of the Act and 19 CFR 351.205(f)(1).
Enforcement and Compliance, International Trade Administration, Commerce.
On January 30, 2017, the Department of Commerce (Department) published in the
Effective June 5, 2017.
James Terpstra or Brendan Quinn, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-3965 or (202) 482-5848, respectively.
On January 30, 2017, the Department published the
The Department conducted this review in accordance with section 751(a)(1)(B) of the Tariff Act of 1930, as amended (the Act).
Merchandise covered by the order is pure magnesium regardless of chemistry, form or size, unless expressly excluded from the scope of the order. Pure magnesium is a metal or alloy containing by weight primarily the element magnesium and produced by decomposing raw materials into magnesium metal. Pure primary magnesium is used primarily as a chemical in the aluminum alloying, desulfurization, and chemical reduction industries. In addition, pure magnesium is used as an input in producing magnesium alloy. Pure magnesium encompasses products (including, but not limited to, butt ends, stubs, crowns and crystals) with the following primary magnesium contents:
(1) Products that contain at least 99.95% primary magnesium, by weight (generally referred to as “ultra pure” magnesium);
(2) Products that contain less than 99.95% but not less than 99.8% primary magnesium, by weight (generally referred to as “pure” magnesium); and
(3) Products that contain 50% or greater, but less than 99.8% primary magnesium, by weight, and that do not conform to ASTM specifications for alloy magnesium (generally referred to as “off-specification pure” magnesium).
“Off-specification pure” magnesium is pure primary magnesium containing magnesium scrap, secondary magnesium, oxidized magnesium or impurities (whether or not intentionally added) that cause the primary magnesium content to fall below 99.8% by weight. It generally does not contain, individually or in combination, 1.5% or more, by weight, of the following alloying elements: Aluminum, manganese, zinc, silicon, thorium, zirconium and rare earths.
Excluded from the scope of the order are alloy primary magnesium (that meets specifications for alloy magnesium), primary magnesium anodes, granular primary magnesium (including turnings, chips and powder) having a maximum physical dimension (
Pure magnesium products covered by the order are currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 8104.11.00, 8104.19.00, 8104.20.00, 8104.30.00, 8104.90.00, 3824.90.11, 3824.90.19 and 9817.00.90. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope is dispositive.
As noted above, the Department received no comments concerning the
The Department determined, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with section 751(a)(2)(C) of the Act and 19 CFR 351.212(b).
Additionally, consistent with the Department's refinement to its assessment practice in non-market economy cases, because the Department determined that TMI/TMM had no shipments of subject merchandise during the POR, any suspended entries of subject merchandise during the POR from TMI/TMM will be liquidated at the PRC-wide rate.
The following cash deposit requirements will be effective for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of this notice of final results of the administrative review, as provided by section 751(a)(2)(C) of the Act: (1) For TMI/TMM, which claimed no shipments, the cash deposit rate will remain unchanged from the rate assigned to TMI/TMM in the most recently completed review of the company; (2) for previously investigated or reviewed PRC and non-PRC exporters who are not under review in this segment of the proceeding but who have separate rates, the cash deposit rate will continue to be the exporter-specific rate published for the most recent period; (3) for all PRC exporters of subject
This notice serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this POR. Failure to comply with this requirement could result in the Department's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
This notice also serves as a reminder to parties subject to administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation.
We are issuing and publishing these final results and this notice in accordance with sections 751(a)(1) and 777(i) of the Act.
Enforcement and Compliance, International Trade Administration, Department of Commerce.
Effective June 5, 2017.
Elfi Blum (Argentina) at (202) 482-0197, or Joseph Traw (Indonesia) at (202) 482-6079, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.
On April 12, 2017, the Department of Commerce (Department) initiated countervailing duty investigations (CVD) on biodiesel from Argentina and Indonesia.
Section 703(b)(1) of the Tariff Act of 1930, as amended (the Act), requires the Department to issue the preliminary determination in a CVD investigation within 65 days after the date on which the Department initiated the investigation. However, section 703(c)(1)(A) of the Act and 19 CFR 351.205(e) allow the Department to postpone the preliminary determination at the request of the petitioner.
On May 22, 2017, the petitioner
This notice is issued and published pursuant to section 703(c)(2) of the Act and 19 CFR 351.205(f)(1).
Enforcement and Compliance, International Trade Administration, Commerce.
On December 28, 2016, the Department of Commerce (the Department) published the preliminary results, and partial rescission, of the new shipper reviews of the antidumping duty (AD) order on multilayered wood flooring (MLWF) from the People's Republic of China (PRC). Based on our analysis of the comments received, we continue to find Zhejiang Simite Wooden Co., Ltd.'s (Simite Wooden) sale to be non-
Effective June 5, 2017.
Maisha Cryor, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration,
On December 28, 2016, the Department published its
For a complete description of the events that followed the publication of the
The merchandise covered by the order includes MLWF, subject to certain exceptions.
While HTSUS subheadings are provided for convenience and customs purposes, the written description of the subject merchandise is dispositive.
All issues raised in the case brief submitted by Simite Wooden are addressed in the Issues and Decision Memorandum.
In the
For a complete discussion,
No party filed a case brief in response to the Department's invitation to comment on the
The Department will determine, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries covered by the NSR with respect to Keri Wood.
As the Department is rescinding the NSR with respect to Simite Wooden, we have not calculated a company-specific dumping margin for Simite Wooden. Simite Wooden's entries covered by this NSR will be assessed at the cash deposit rate required at the time of entry, which is the PRC-wide rate (
The following cash deposit requirements will be effective upon publication of the final results and partial rescission of this NSR for shipments of the subject merchandise from the PRC entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided by section 751(a)(2)(C) of the Act. For Kerri Wood, because it has received a separate rate, and the rate established in the final results of this NSR is zero, a zero cash deposit will be required. For Simite Wooden, the Department will instruct CBP to discontinue the option of posting a bond or security in lieu of a cash deposit for entries of subject merchandise from Simite Wooden. Because we did not calculate a dumping margin for Simite Wooden or otherwise find that Simite Wooden is eligible for a separate rate in this review, Simite Wooden continues to be part of the PRC-wide entity. The cash deposit rate for the PRC-wide entity is 25.62 percent. These cash deposit requirements shall remain in effect until further notice.
This notice serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
This notice also serves as a reminder to parties subject to Administrative Protective Order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305, which continues to govern business proprietary information in these segments of the proceeding. Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.
We are issuing and publishing this notice in accordance with sections 751(a)(2)(B) and (C) and 777(i) of the Act, and 19 CFR 351.214.
National Institute of Standards and Technology, Department of Commerce.
Notice.
The Information Security and Privacy Advisory Board (ISPAB) will meet Wednesday, June 28, 2017 from 9:00 a.m. until 4:30 p.m., Eastern Time, Thursday, June, 29, 2017, from 9:00 a.m. until 3:00 p.m., Eastern Time, and Friday, June 30, 2017 from 9:00 a.m. until 12:00 p.m. Eastern Time. All sessions will be open to the public.
The meeting will be held on Wednesday, June 28, 2017, from 9:00 a.m. until 4:30 p.m., Eastern Time, Thursday, June 29, 2017, from 9:00 a.m. until 3:00 p.m., Eastern Time, and Friday, June 30, 2017 from 9:00 a.m. until 12:00 p.m. Eastern Time.
The meeting will be held at the Constitution Hall, American University, 4400 Massachusetts Ave. NW., Washington, DC 20016.
Matthew Scholl, Information Technology Laboratory, NIST, 100 Bureau Drive, Stop 8930, Gaithersburg, MD 20899-8930, telephone: (301) 975-2941, Email address:
Pursuant to the Federal Advisory Committee Act, as amended, 5 U.S.C. App., notice is hereby given that the Information Security and Privacy Advisory Board (ISPAB) will meet Wednesday, June 28, 2017, from 9:00 a.m. until 4:30 p.m., Eastern Time, Thursday, June 29, 2017, from 9:00 a.m. until 3:00 p.m., Eastern Time, and Friday, June 30, 2017 from 9:00 a.m. until 12:00 p.m. Eastern Time. All sessions will be open to the public. The ISPAB is authorized by 15 U.S.C. 278g-4, as amended, and advises the
The agenda is expected to include the following items:
Note that agenda items may change without notice. The final agenda will be posted on the Web site indicated above. Seating will be available for the public and media. Pre-registration is not required to attend this meeting.
Speakers who wish to expand upon their oral statements, those who had wished to speak but could not be accommodated on the agenda, and those who were unable to attend in person are invited to submit written statements. In addition, written statements are invited and may be submitted to the ISPAB at any time. All written statements should be directed to the ISPAB Secretariat, Information Technology Laboratory, 100 Bureau Drive, Stop 8930, National Institute of Standards and Technology, Gaithersburg, MD 20899-8930.
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice of public meeting.
The New England Fishery Management Council (Council, NEFMC) will hold a three-day meeting to consider actions affecting New England fisheries in the exclusive economic zone (EEZ).
The meeting will be held on Tuesday, Wednesday, and Thursday, June 20, 21, and 22, 2017, beginning at 9 a.m. on June 20, 8:30 a.m. on June 21, and 8:30 a.m. on June 22.
The meeting will be held at the Holiday Inn by the Bay, 88 Spring Street, Portland, ME 04101; telephone: (207) 775-2311; online at
Thomas A. Nies, Executive Director, New England Fishery Management Council; telephone: (978) 465-0492, ext. 113.
After introductions and brief announcements, the meeting will begin with reports from the Council Chairman and Executive Director, NMFS's Regional Administrator for the Greater Atlantic Regional Fisheries Office (GARFO), liaisons from the Northeast Fisheries Science Center (NEFSC) and Mid-Atlantic Fishery Management Council, representatives from NOAA General Counsel and the Office of Law Enforcement, and staff from the Atlantic States Marine Fisheries Commission and the U.S Coast Guard. Following these reports, the Council will hear from its Whiting Committee, which will provide a brief progress report on Amendment 22 to the Northeast Multispecies Fishery Management Plan (FMP). The amendment is being developed to potentially limit access to the small-mesh multispecies fishery. Next, the Council will review and discuss the status of Amendment 6 to the Monkfish FMP. This amendment initially was intended to consider potential catch share management approaches for the monkfish fishery. The Council also will discuss and approve research priorities for the Monkfish Research Set-Aside Program. The Groundfish Committee report then will commence with a preview of the extensive afternoon agenda. Discussion of the first agenda item potentially could begin prior to lunch. For this item, the Council will receive a summary of the scoping comments for Groundfish Monitoring Amendment 23 and discuss the amendment's purpose and need, as well as the likely range of alternatives.
Following the lunch break, the Council will resume the groundfish monitoring discussion if necessary and spend the remainder of the afternoon on groundfish. The Council will initiate Framework Adjustment 57 to the Northeast Multispecies FMP, which will include: (1) 2018-2020 fishery specifications and other management measures; (2) 2018 total allowable catches (TACs) for U.S./Canada stocks of Eastern Georges Bank (GB) cod, Eastern GB haddock, and GB yellowtail flounder; (3) Atlantic halibut accountability measures (AMs); and (4) recreational management measures. The Council will review a draft letter with comments on the Marine Recreational Information Program Strategic Plan. Finally, the Council will consider comments on the interim final rule for 2017 and 2018 Sector Operations Plans, including whether measures or restrictions should be recommended for Sector IX due to misreporting by sector vessels. The Council then will adjourn for the day.
The second day of the meeting will begin with a presentation on NMFS's
After a lunch break, the Scallop Committee first will present a report on the Limited Access General Category (LAGC) Individual Fishing Quota Five-Year Review. The Council then will approve research priorities for the 2018-2019 Scallop RSA Program. Next, the Council will receive a progress report on the development of Framework Adjustment 29, which includes: (1) Fishery specifications for the 2018 fishing year and default specifications for 2019; (2) flatfish AMs for the scallop fishery; (3) Northern Gulf of Maine (NGOM) Management Area issues; and (4) Closed Area I Scallop Access Area modifications to be consistent with pending habitat area revisions. Finally, the Council will discuss and potentially request a control date to address movement between the LAGC NGOM and LAGC incidental permit categories. The day will end with a NMFS presentation and update on the Fishery Dependent Data Visioning Project.
The third day of the meeting will begin with an overview of draft alternatives for a Standardized Bycatch Reporting Methodology omnibus framework adjustment that is being developed to address assigning at-sea observers to the lobster pot fleet in an unbiased manner through the Northeast Fishery Observer Program. The Council then will hold a Habitat Committee meeting as a Committee of the Whole to review public comments on the Omnibus Deep-Sea Coral Amendment and develop final recommendations for Council consideration. Once the Committee of the Whole adjourns, the Habitat Committee report will get underway, starting with the Council taking final action on the Coral Amendment. Also under habitat, the Council will review and approve comments to the Department of the Interior on: (1) National monument designations under the Antiquities Act of 1906, including the Northeast Canyons and Seamounts Marine National Monument; and (2) potential environmental effects of offshore oil development on the Atlantic Outer Continental Shelf.
Following a lunch break, the Council may resume the habitat discussion if necessary. Then, the Council will develop comments on NMFS's Draft Council Conflict of Interest Policy Directives. The Council next will review Magnuson-Stevens Fishery Conservation and Management Act reauthorization legislation and potentially develop Council positions on the draft legislation. The Council will close out the meeting with “other business.”
Although non-emergency issues not contained on this agenda may come before this Council for discussion, those issues may not be the subject of formal action during this meeting. Council action will be restricted to those issues specifically listed in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Act, provided the public has been notified of the Council's intent to take final action to address the emergency. The public also should be aware that the meeting will be recorded. Consistent with 16 U.S.C. 1852, a copy of the recording is available upon request.
This meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Thomas A. Nies (see
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice of public meeting.
The New England Fishery Management Council (Council, NEFMC) will hold a three-day meeting to consider actions affecting New England fisheries in the exclusive economic zone (EEZ).
The meeting will be held on Tuesday, Wednesday, and Thursday, June 20, 21, and 22, 2017, beginning at 9 a.m. on June 20, 8:30 a.m. on June 21, and 8:30 a.m. on June 22.
The meeting will be held at the Holiday Inn by the Bay, 88 Spring Street, Portland, ME 04101; telephone: (207) 775-2311; online at
Thomas A. Nies, Executive Director, New England Fishery Management Council; telephone: (978) 465-0492, ext. 113.
After introductions and brief announcements, the meeting will begin with reports from the Council Chairman and Executive Director, NMFS's Regional Administrator for the Greater Atlantic Regional Fisheries Office (GARFO), liaisons from the Northeast Fisheries Science Center (NEFSC) and Mid-Atlantic Fishery Management Council, representatives from NOAA General Counsel and the Office of Law Enforcement, and staff from the Atlantic States Marine Fisheries Commission and the U.S Coast Guard. Following these reports, the Council will hear from
Following the lunch break, the Council will resume the groundfish monitoring discussion if necessary and spend the remainder of the afternoon on groundfish. The Council will initiate Framework Adjustment 57 to the Northeast Multispecies FMP, which will include: (1) 2018-2020 fishery specifications and other management measures; (2) 2018 total allowable catches (TACs) for U.S./Canada stocks of Eastern Georges Bank (GB) cod, Eastern GB haddock, and GB yellowtail flounder; (3) Atlantic halibut accountability measures (AMs); and (4) recreational management measures. The Council will review a draft letter with comments on the Marine Recreational Information Program Strategic Plan. Finally, the Council will consider comments on the interim final rule for 2017 and 2018 Sector Operations Plans, including whether measures or restrictions should be recommended for Sector IX due to misreporting by sector vessels. The Council then will adjourn for the day.
The second day of the meeting will begin with a presentation on NMFS's Stock Assessment Improvement Plan (SAIP), which will be immediately followed by a presentation on NMFS's guidance regarding the use of Best Scientific Information Available (BSIA). The Scientific and Statistical Committee (SSC) then will provide: (1) Comments on both the SAIP and BSIA; (2) comments on the Council's draft five-year research recommendations; and (3) a progress report on terms of reference for operational stock assessments when models are not feasible. The Council will discuss and consider the SSC's comments on NMFS's SAIP and BSIA guidance. Next, the Council will receive an Ecosystem-Based Fishery Management Report with an update on developing a worked example of harvest control rules for ecosystem management. This item will be followed by the Skate Committee report. The Council is scheduled to: (1) Take final action on Framework Adjustment 4 to the Northeast Skate Complex FMP to modify the skate bait trigger and possession limits currently in place for the fishery; and (2) initiate Framework Adjustment 5 to allow barndoor skate landings and develop fishing year 2018-2019 specifications. Members of the public then will be able to speak during an open comment period on issues that relate to Council business but are not included on the published agenda for this meeting. The Council asks the public to limit remarks to 3-5 minutes.
After a lunch break, the Scallop Committee first will present a report on the Limited Access General Category (LAGC) Individual Fishing Quota Five-Year Review. The Council then will approve research priorities for the 2018-2019 Scallop RSA Program. Next, the Council will receive a progress report on the development of Framework Adjustment 29, which includes: (1) Fishery specifications for the 2018 fishing year and default specifications for 2019; (2) flatfish AMs for the scallop fishery; (3) Northern Gulf of Maine (NGOM) Management Area issues; and (4) Closed Area I Scallop Access Area modifications to be consistent with pending habitat area revisions. Finally, the Council will discuss and potentially request a control date to address movement between the LAGC NGOM and LAGC incidental permit categories. The day will end with a NMFS presentation and update on the Fishery Dependent Data Visioning Project.
The third day of the meeting will begin with an overview of draft alternatives for a Standardized Bycatch Reporting Methodology omnibus framework adjustment that is being developed to address assigning at-sea observers to the lobster pot fleet in an unbiased manner through the Northeast Fishery Observer Program. The Council then will hold a Habitat Committee meeting as a Committee of the Whole to review public comments on the Omnibus Deep-Sea Coral Amendment and develop final recommendations for Council consideration. Once the Committee of the Whole adjourns, the Habitat Committee report will get underway, starting with the Council taking final action on the Coral Amendment. Also under habitat, the Council will review and approve comments to the Department of the Interior on: (1) National monument designations under the Antiquities Act of 1906, including the Northeast Canyons and Seamounts Marine National Monument; and (2) potential environmental effects of offshore oil development on the Atlantic Outer Continental Shelf.
Following a lunch break, the Council may resume the habitat discussion if necessary. Then, the Council will develop comments on NMFS's Draft Council Conflict of Interest Policy Directives. The Council next will review Magnuson-Stevens Fishery Conservation and Management Act reauthorization legislation and potentially develop Council positions on the draft legislation. The Council will close out the meeting with “other business.”
Although non-emergency issues not contained on this agenda may come before this Council for discussion, those issues may not be the subject of formal action during this meeting. Council action will be restricted to those issues specifically listed in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Act, provided the public has been notified of the Council's intent to take final action to address the emergency. The public also should be aware that the meeting will be recorded. Consistent with 16 U.S.C. 1852, a copy of the recording is available upon request.
This meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Thomas A. Nies (see
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice of cancellation of a public meeting.
The New England Fishery Management Council (Council) has cancelled the public meeting of its Whiting Committee and Advisory Panel that was scheduled for Wednesday, June 14, 2017, at 9:30 a.m.
Thomas A. Nies, Executive Director, New England Fishery Management Council; telephone: (978) 465-0492.
The notice published in the
Bureau of Consumer Financial Protection.
Notice and request for comment.
In accordance with the Paperwork Reduction Act of 1995 (PRA), the Bureau of Consumer Financial Protection (Bureau) is requesting a new information collection, titled, “Debt Collection Quantitative Disclosure Testing.”
Written comments are encouraged and must be received on or before August 4, 2017 to be assured of consideration.
You may submit comments, identified by the title of the information collection, Office of Management and Budget (OMB) Control Number (see below), and docket number (see above), by any of the following methods:
•
•
•
Documentation prepared in support of this information collection request is available at
Consumer Product Safety Commission.
Notice.
It is the policy of the Commission to publish settlements which it provisionally accepts under the Consumer Product Safety Act in the
Any interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by June 20, 2017.
Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 17-C0004, Office of the Secretary, Consumer Product Safety
Philip Z. Brown, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7645.
The text of the Agreement and Order appears below.
In the Matter of: Kawasaki Heavy Industries, LTD.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A.
1. In accordance with the Consumer Product Safety Act, 15 U.S.C. §§ 2051-2089 (“CPSA”) and 16 C.F.R. § 1118.20, Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors Manufacturing Corp., U.S.A. (collectively, “Kawasaki”), and the United States Consumer Product Safety Commission (“Commission”), through its staff, hereby enter into this Settlement Agreement (“Agreement”). The Agreement and the incorporated attached Order resolve staff's charges set forth below.
2. The Commission is an independent federal regulatory agency, established pursuant to, and responsible for, the enforcement of the CPSA, 15 U.S.C. §§ 2051-2089. By executing the Agreement, staff is acting on behalf of the Commission, pursuant to 16 C.F.R. § 1118.20(b). The Commission issues this Order under the provisions of the CPSA.
3. Kawasaki Heavy Industries, Ltd. (“KHI”) is a corporation, organized and existing under the laws of Japan, with its principal place of business in Japan.
4. Kawasaki Motors Corp., U.S.A. (“KMC”) is a corporation, organized and existing under the laws of the state of Delaware, with its principal place of business in Foothill Ranch, CA. KMC is a wholly-owned subsidiary of KHI.
5. Kawasaki Motors Manufacturing Corp., U.S.A. (“KMM”) is a corporation, organized and existing under the laws of the state of Nebraska, with its principal place of business in Lincoln, NE. KMM is a wholly-owned subsidiary of KHI.
6. Between October 2011 and December 2015, Kawasaki manufactured, distributed, and offered for sale in the United States approximately 11,000 model year 2012 and 2013 Teryx4 750 4x4s (“Teryx4 750”) and approximately 19,500 2014-2016 model year Teryx4 800 4×4s (“Teryx4 800”) and Teryx 800 4×4s (“Teryx 800”) (collectively, “Teryxs” or “Subject Products”). The Teryxs are four-wheel recreational off-highway vehicles that have automotive style controls and seating for two or four persons, depending on model type.
7. KMM manufactures and assembles the Subject Products, which are then sold to KMC for distribution.
8. KMC is responsible for, among other things, the distribution, marketing, and Quality Assurance of the Subject Products in the United States.
9. KHI is primarily responsible for the design, development, and engineering of the Subject Products. KHI retains ultimate control over the operations of KMC and KMM, including retaining recall authority.
10. The Teryxs are a “consumer product,” “distribut[ed] in commerce,” as those terms are defined or used in sections 3(a)(5) and (8) of the CPSA, 15 U.S.C. § 2052(a)(5) and (8). Kawasaki is a “distributor” or a “manufacturer” of the Teryxs, as such terms are defined in section 3(a)(7) and (11) of the CPSA, 15 U.S.C. § 2052(a)(7) and (11).
11. The Teryxs contain a defect which could create a substantial product hazard and create an unreasonable risk of serious injury because sticks or other debris can break through the Teryxs' floor board and protrude into the foot rest area, posing an injury hazard to the operator and front passenger.
12. Between April 2012 and July 2014, Kawasaki received more than 400 incident reports of Teryx4 750 floorboards cracking or breaking during normal operation due to impact with, or penetration by, debris from outside the vehicle. At least three of the incident reports resulted in injuries to consumers, including one serious injury.
13. In April 2012, Kawasaki began an investigation into the Teryx4 750 incidents. In October 2012, Kawasaki approved a design change to the Teryx4 750. The design change consisted of a metal strike plate to address the hazard and was implemented on Teryx4 750 models beginning in early 2013.
14. In May 2013, Kawasaki stopped manufacturing the Teryx4 750 and began manufacturing the Teryx 800 and Teryx4 800.
15. In December 2013, in anticipation of production for the 2015 model year, Kawasaki approved an additional design change. This design change involved enhanced floorboard guards for implementation on the 2015 model year Teryx 800 and Teryx4 800.
16. Kawasaki did not immediately inform the Commission under 15 U.S.C. § 2064(b) regarding the defect and risk posed by the Teryx4 750 and did not file a Full Report as required by 16 C.F.R. § 1115.13(d) until July 9, 2014.
17. Kawasaki and the Commission jointly announced a recall of approximately 11,000 Teryx4 750s on July 30, 2014.
18. Between July 2013 and August 2015, Kawasaki received more than 150 incident reports of Teryx4 800 or Teryx 800 floor boards cracking or breaking during normal operation due to impact with, or penetration by, debris from outside the vehicle. At least three of the incident reports resulted in injuries to consumers, including two serious injuries.
19. Kawasaki did not immediately inform the Commission under 15 U.S.C. § 2064(b) regarding the defect and risk posed by the Teryx4 800 and Teryx 800 and did not file a Full Report as required by 16 C.F.R. § 1115.13(d) until August 19, 2015.
20. Kawasaki and the Commission jointly announced a recall of approximately 19,500 Teryx4 800s and Teryx 800s on December 15, 2015.
21. Despite having information reasonably supporting the conclusion that the Teryxs contained a defect and created an unreasonable risk of serious injury, Kawasaki did not immediately inform the Commission of such defect or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. § 2064(b)(3) and (4), in violation of section 19(a)(4) of the CPSA, 15 U.S.C. § 2068(a)(4).
22. Because the information in Kawasaki's possession constituted actual and presumed knowledge, Kawasaki knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. § 2068(a)(4), as the term “knowingly” is
23. Pursuant to Section 20 of the CPSA, 15 U.S.C. § 2069, Kawasaki is subject to civil penalties for its knowing violation of section 19(a)(4) of the CPSA, 15 U.S.C. § 2068(a)(4).
24. Kawasaki's July 9, 2014, Full Report reported a single incident and an unspecified number of injuries related to the Subject Products' floorboards. The Full Report did not identify more than 400 similar incidents involving the Subject Products about which Kawasaki had actual or presumed knowledge, and excluded any incidents relating to the Teryx4 800 and Teryx 800. This omission constitutes a material misrepresentation under section 19(a)(13) of the CPSA, 15 U.S.C. § 2068(a)(13).
25. Kawasaki's misrepresentation impeded CPSC staff's investigation into the hazard posed by the Subject Products' floorboards and Kawasaki's proposed repair, and hampered staff's ability to accurately communicate the prevalence of the hazard to the public.
26. By knowingly making a material misrepresentation to an officer or employee of the CPSC in the course of an investigation under the CPSA, Kawasaki knowingly violated section 19(a)(13) of the CPSA, 15 U.S.C. § 2068(a)(13), as the term “knowingly” is defined in section 20(d) of the CPSA, 15 U.S.C. § 2069(d). Pursuant to section 20 of the CPSA, 15 U.S.C. § 2069, Kawasaki is subject to civil penalties for its knowing violation of section 19(a)(13) of the CPSA, 15 U.S.C. § 2068(a)(13).
27. The signing of this Agreement does not constitute an admission in any respect by Kawasaki of the staff charges, set forth above in paragraphs 6 through 26, including, but not limited to, that: (a) the Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which could create a substantial product hazard and created an unreasonable risk of serious injury; (b) Kawasaki failed to inform the Commission of any reportable issues related to the Teryxs in a timely manner, in accordance with sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. §§ 2064(b)(3) and (4); (c) Kawasaki failed to furnish information as required by the statute (sections 15(b)(3) and (4), 15 U.S.C. §§ 2064(b)(3) and (4)), in violation of section 19(a)(4) of the CPSA, 15 U.S.C. § 2068(a)(4); and (d) there was any “knowing” violation of the CPSA as that term is defined in section 20(d) of the CPSA, 15 U.S.C. § 2069(d).
28. The Teryx4 750, Teryx4 800, and Teryx 800 are side-by-side recreational off-highway vehicles which are used in a variety of challenging off-road environments where breakage of various parts, including floor boards, can occur.
29. Kawasaki conducted a reasonable and diligent investigation of reported incidents of floor board breakage, including the smaller number of reported instances of stick penetration and the handful of reports of injury. Due to the nature of the products and the variety of ways and environments in which they are used, incident reports can be difficult to evaluate, since use of the Teryx4 750, Teryx4 800, and Teryx 800, like all side-by-side recreational off-highway vehicles, involves the possibility of parts breakage.
30. The voluntary recalls of the Teryx4 750, Teryx4 800, and Teryx 800 and related reporting to the Commission under section 15(b) of the CPSA, 15 U.S.C. § 2064(b), were conducted by Kawasaki out of an abundance of caution and without having determined or concluded that the Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury. Kawasaki may submit a corrective action plan to the Commission without admitting that either reportable information or a substantial product hazard exists.
31. Kawasaki denies the staff charges that Kawasaki committed a material misrepresentation by omission in the July 9, 2014 Full Report in violation of section 19(a)(13) of the CPSA, 15 U.S.C. § 2068(a)(13), and further denies that Kawasaki committed a “knowing” violation of section 19(a)(13) as that term is defined in section 20(d) of the CPSA, 15 U.S.C. § 2069(d).
32. Pursuant to section 20(a)(1) of the CPSA, 15 U.S.C. § 2069(a)(1), the amount of the agreed civil penalty which can be attributable to the claim of material misrepresentation by omission under section 19(a)(13) of the CPSA, 15 U.S.C. § 2068(a)(13), cannot exceed $100,000.
33. Kawasaki believes that it did nothing wrong in this matter and that it complied with the CPSA in all respects. Kawasaki disputes the staff's allegations that Kawasaki had information that the Teryxs contained a defect which could create a substantial product hazard and created an unreasonable risk of injury. Kawasaki believes that it informed the Commission of any reportable issues regarding the Teryxs in a timely manner and furnished information to CPSC as required by the CPSA. Kawasaki does not believe that it knowingly violated the CPSA as that term is defined in the statute.
34. Pursuant to paragraphs 43 through 45, Kawasaki will maintain its program for current and future compliance with the CPSA.
35. Kawasaki enters into this Agreement in order to settle this matter without the delay and unnecessary expense of litigation.
36. Under the CPSA, the Commission has jurisdiction over the matter involving the Subject Products and over Kawasaki.
37. The parties enter into this Agreement for settlement purposes only. The Agreement does not constitute an admission by Kawasaki, or a determination by the Commission, that Kawasaki violated the CPSA's reporting requirements or made material misrepresentations to an officer or employee of the Commission.
38. In settlement of staff's charges, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation or other proceedings, Kawasaki shall pay a civil penalty in the amount of five million, two hundred thousand dollars ($5,200,000) within thirty (30) calendar days after receiving service of the Commission's final Order accepting the Agreement. All payments to be made under the Agreement shall constitute debts owing to the United States and shall be made by electronic wire transfer to the United States via:
39. All unpaid amounts, if any, due and owing under the Agreement, shall constitute a debt due and immediately owing by Kawasaki to the United States, and interest shall accrue and be paid by Kawasaki at the federal legal rate of interest set forth at 28 U.S.C. § 1961(a) and (b) from the date of Default, until all amounts due have been paid in full (hereinafter “Default Payment Amount” and “Default Interest Balance”). Kawasaki shall consent to a Consent Judgment in the amount of the Default Payment Amount and Default Interest Balance, and the United States, at its sole option, may collect the entire Default Payment Amount and Default Interest Balance, or exercise any other
40. After staff receives this Agreement executed on behalf of Kawasaki, staff shall promptly submit the Agreement to the Commission for provisional acceptance. Promptly following provisional acceptance of the Agreement by the Commission, the Agreement shall be placed on the public record and published in the
41. This Agreement is conditioned upon, and subject to, the Commission's final acceptance, as set forth above, and it is subject to the provisions of 16 C.F.R. § 1118.20(h). Upon the later of: (i) Commission's final acceptance of this Agreement and service of the accepted Agreement upon Kawasaki, and (ii) the date of issuance of the final Order, this Agreement shall be in full force and effect, and shall be binding upon the parties.
42. Effective upon the later of: (i) the Commission's final acceptance of the Agreement and service of the accepted Agreement upon Kawasaki, and (ii) the date of issuance of the final Order, for good and valuable consideration, Kawasaki hereby expressly and irrevocably waives and agrees not to assert any past, present, or future rights to the following, in connection with the matter described in this Agreement: (i) an administrative or judicial hearing; (ii) judicial review or other challenge or contest of the Commission's actions; (iii) a determination by the Commission of whether Kawasaki failed to comply with the CPSA and the underlying regulations; (iv) a statement of findings of fact and conclusions of law; and (v) any claims under the Equal Access to Justice Act.
43. Kawasaki shall maintain a compliance program designed to ensure compliance with the CPSA with respect to any consumer product imported, manufactured, distributed or sold by the Firm, and which shall contain the following elements: (i) written standards, policies and procedures, including those designed to ensure that information that may relate to or impact CPSA compliance (including information obtained by quality control personnel) is conveyed effectively to personnel responsible for CPSA compliance, whether or not an injury is referenced; (ii) a mechanism for confidential employee reporting of compliance-related questions or concerns to either a compliance officer or to another senior manager with authority to act as necessary; (iii) effective communication of company compliance-related policies and procedures regarding the CPSA to all applicable employees through training programs or otherwise; (iv) the Firm's senior management responsibility for, and general board oversight of, CPSA compliance; and (v) retention of all CPSA compliance-related records for at least five (5) years, and availability of such records to staff upon request.
44. Kawasaki shall maintain and enforce a system of internal controls and procedures designed to ensure that, with respect to all consumer products imported, manufactured, distributed or sold by Kawasaki: (i) information required to be disclosed by Kawasaki to the Commission is recorded, processed and reported in accordance with applicable law; (ii) all reporting made to the Commission is timely, truthful, complete, accurate and in accordance with applicable law; and (iii) prompt disclosure is made to Kawasaki's management of any significant deficiencies or material weaknesses in the design or operation of such internal controls that are reasonably likely to affect adversely, in any material respect, Kawasaki's ability to record, process and report to the Commission in accordance with applicable law.
45. Upon reasonable request of staff, Kawasaki shall provide written documentation of its internal controls and procedures, including, but not limited to, the effective dates of the procedures and improvements thereto. Kawasaki shall cooperate fully and truthfully with staff and shall make available all non-privileged information and materials, and personnel deemed necessary by staff to evaluate Kawasaki's compliance with the terms of the Agreement.
46. The parties acknowledge and agree that the Commission may publicize the terms of the Agreement and the Order.
47. Kawasaki represents that the Agreement: (i) is entered into freely and voluntarily, without any degree of duress or compulsion whatsoever; (ii) has been duly authorized; and (iii) constitutes the valid and binding obligation of Kawasaki, enforceable against Kawasaki in accordance with its terms. Kawasaki will not directly or indirectly receive any reimbursement, indemnification, insurance-related payment, or other payment in connection with the civil penalty to be paid by Kawasaki pursuant to the Agreement and Order. The individuals signing the Agreement on behalf of Kawasaki represent and warrant that they are duly authorized by Kawasaki to execute the Agreement.
48. The signatories represent that they are authorized to execute this Agreement.
49. The Agreement is governed by the laws of the United States.
50. The Agreement and the Order shall apply to, and be binding upon, Kawasaki and each of its successors, transferees, and assigns; and a violation of the Agreement or Order may subject Kawasaki, and each of its successors, transferees, and assigns, to appropriate legal action.
51. The Agreement and the Order constitute the complete agreement between the parties on the subject matter contained therein.
52. The Agreement may be used in interpreting the Order. Understandings, agreements, representations, or interpretations apart from those contained in the Agreement and the Order may not be used to vary or contradict their terms. For purposes of construction, the Agreement shall be deemed to have been drafted by both of the parties and shall not, therefore, be construed against any party, for that reason, in any subsequent dispute.
53. The Agreement may not be waived, amended, modified, or otherwise altered, except as in accordance with the provisions of 16 C.F.R. § 1118.20(h). The Agreement may be executed in counterparts.
54. If any provision of the Agreement or the Order is held to be illegal, invalid, or unenforceable under present or future laws effective during the terms of the Agreement and the Order, such provision shall be fully severable. The balance of the Agreement and the Order shall remain in full force and effect, unless the Commission and Kawasaki agree in writing that severing the provision materially affects the purpose of the Agreement and the Order.
In the Matter of: KAWASAKI HEAVY INDUSTRIES, LTD.; KAWASAKI MOTORS CORP., U.S.A.; and KAWASAKI MOTORS MANUFACTURING CORP., U.S.A.
Upon consideration of the Settlement Agreement entered into between Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors Manufacturing Corp., U.S.A. (collectively, “Kawasaki”), and the U.S. Consumer Product Safety Commission (“Commission”), and the Commission having jurisdiction over the subject matter and over Kawasaki, and it appearing that the Settlement Agreement and the Order are in the public interest, it is:
Provisionally accepted and provisional Order issued on the 31st day of May, 2017.
By Order of the Commission:
Office of Energy Policy and Systems Analysis (EPSA), Department of Energy (DOE).
Notice of request for information.
The Department of Energy (DOE) gives notice of a Request for Information (RFI): “Review of Draft Version of DOE Energy-Water Nexus State Policy Database.” This RFI seeks review and feedback from stakeholders on the draft version of the DOE Energy-Water Nexus State Policy Database, including over 1,700 state-level water policies that affect energy systems. The database is being developed by DOE's Office of Energy Policy and Systems Analysis (DOE-EPSA). The draft or “beta” version of the database is presented as a web tool at
Written comments and information are requested on or before August 4, 2017.
Interested persons are encouraged to submit comments, which must be submitted electronically to
Requests for additional information may be sent to Samuel Bockenhauer, U.S. Department of Energy, Office of Energy Policy and Systems Analysis, 1000 Independence Avenue SW., Washington, DC 20585. Email:
Present-day energy and water systems are in many cases interconnected. Water is used in most phases of energy production and electricity generation. Energy is required to extract, convey, and deliver water of appropriate quality for diverse human uses, and then again to treat wastewaters prior to their return to the environment. Historically, energy and water systems have been developed, managed, and regulated independently and without significant acknowledgement of the connections between them. The energy and water policy landscape is thus highly fragmented, which can make it difficult for industry, utilities, government, and other stakeholder groups to effectively balance energy and water goals.
Furthermore, much of the authority for water policy lies at the level of individual states. For example, allocation of water rights and permitting for water discharge are managed primarily at the state level. The particularly complex and fragmented nature of water policies affecting energy systems, as well as their variation across different states, suggests that a centralized, public database of water policies affecting energy systems could enable enhanced policy analysis, modeling, visualization, and communication by states, industry, utilities, academia, federal agencies, and other stakeholders.
The purpose of this RFI is to solicit feedback from industry, utilities, academia, research laboratories, government agencies, and other stakeholders on the draft version of the Energy-Water Nexus State Policy Database available at
DOE is particularly interested in receiving comments and data on the following:
1. Quality and Completeness of Information. Are the policy descriptions accurate and complete? Are they current? Are the key functional pieces of the policy easily accessible? What additional information would be useful? How could the descriptions be streamlined? What other policies should be included?
2. Functionality. How could the functionality be improved in areas such as user interface, search functionality, sorting functionality, site structure, etc.?
3. Uses. How might you or your organization use the database? What key important questions could the database help to answer? What visualizations might you or your organization consider using the database to develop?
4. Connection to Other Data Sources or Initiatives. Are there other data sources in industry, government, academia, or other sectors that could be connected to this database? If so, what are these data sets and how might they be beneficially connected or coordinated with the database?
5. Users. Which stakeholder groups—including groups in industry, government, academia, etc.—might find the database most useful and for what purpose?
6. Maintenance. How should policy developments be tracked and at what frequency to keep the database current and useful?
Responses to this RFI must be submitted electronically to
Please identify your answers by responding to a specific question or topic if applicable. Respondents may answer as many or as few questions as they wish. DOE-EPSA will not respond to individual submissions or publish publicly a compendium of responses. A response to this RFI will not be viewed as a binding commitment to develop or pursue the project or ideas discussed.
Respondents are requested to provide the following information at the start of their response to this RFI:
• Company/institution name;
• Company/institution contact;
• Contact's address, phone number, and email address.
Pursuant to 10 CFR 1004.11, any person submitting information that he or she believes to be confidential and exempt by law from public disclosure should submit via email two well-marked copies: One copy of the document marked “confidential” including all the information believed to be confidential, and one copy of the document marked “non-confidential” with the information believed to be confidential deleted. DOE will make its own determination about the confidential status of the information and treat it according to its determination.
Factors of interest to DOE when evaluating requests to treat submitted information as confidential include: (1) A description of the items; (2) whether and why such items are customarily treated as confidential within the industry; (3) whether the information is generally known by or available from other sources; (4) whether the information has previously been made available to others without obligation concerning its confidentiality; (5) an explanation of the competitive injury to the submitting person that would result from public disclosure; (6) when such information might lose its confidential character due to the passage of time; and (7) why disclosure of the information would be contrary to the public interest.
U.S. Energy Information Administration (EIA), Department of Energy.
Notice and request for OMB review and comment.
The EIA has submitted an information collection request to the Office of Management and Budget (OMB) for extension under the provisions of the Paperwork Reduction Act of 1995. The information collection requests a three-year extension of its CIPSEA Confidentiality Pledge Revision, OMB Control Number 1905-0211. The proposed collection will make permanent the modification to the confidentiality pledge that was approved on January 12, 2017, under the emergency clearance under OMB Control Number 1905-0211.
Comments regarding this proposed information collection must be received on or before July 5, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, please advise the DOE Desk Officer at OMB of your intention to make a submission as soon as possible. The Desk Officer may be telephoned at 202-395-4718.
Written comments should be sent to the DOE Desk Officer, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10102, 735 17th Street NW., Washington, DC 20503.
And to
Jacob Bournazian, U.S. Energy Information Administration, 1000 Independence Avenue SW.,
This information collection request contains: (1) OMB No. 1905-0211; (2) Information Collection Request Title: CIPSEA Confidentiality Pledge Revision; (3) Type of Request: Three-year extension; (4) Purpose: Under 44 U.S.C. 3506(e), and 44 U.S.C. 3501 (note), EIA revised the confidentiality pledge(s) it provides to respondents for surveys that protect information under the Confidential Information Protection and Statistical Efficiency Act (44 U.S.C. 3501 (note)) (CIPSEA). EIA's CIPSEA confidentiality pledge needed to be modified to be consistent with provisions of the Federal Cybersecurity Enhancement Act of 2015 (Pub. L. 114-11, Division N, Title II, Subtitle B, Sec. 223), which permit and require the Secretary of the Department of Homeland Security (DHS) to provide Federal civilian agencies' information technology systems with cybersecurity protection for their Internet traffic. In 2004, EIA's original CIPSEA confidentiality pledge stated that the information respondents provide will be seen only by EIA personnel or their sworn agents, and be used only for statistical purposes. As part of the Consolidated Appropriations Act for Fiscal Year 2016 signed on December 17, 2015, the Congress included the Federal Cybersecurity Enhancement Act of 2015 (Pub. L. 114-11, Division N, Title II, Subtitle B, Sec. 223). This Act, among other provisions, permits and requires DHS to provide Federal civilian agencies' information technology systems with cybersecurity protection for their Internet traffic. The technology currently used to provide this protection against cyber malware is known as Einstein 3A; it electronically searches Internet traffic in and out of Federal civilian agencies in real time for malware signatures. When such a signature is found, the Internet packets that contain the malware signature are moved to a secured area for further inspection by DHS personnel. Because it is possible that such packets entering or leaving a statistical agency's information technology system may contain a small portion of confidential statistical data, statistical agencies no longer promise their respondents that their responses will be seen only by statistical agency personnel or their sworn agents. However, EIA does promise, in accordance with provisions of the Federal Cybersecurity Enhancement Act of 2015, that such monitoring will be used only to protect information and information systems from cybersecurity risks, thereby, in effect, providing stronger protection to the integrity of the respondents' submissions. Since it is possible that DHS personnel may see some portion of those confidential data in the course of examining the suspicious Internet packets identified by Einstein 3A sensors, EIA revised its confidentiality pledge on January 12, 2017, under an emergency clearance, to reflect this process change. The submission of this request to OMB makes the change in EIA's CIPSEA confidentiality pledge permanent for all surveys that EIA protects under the CIPSEA statute. Therefore, EIA provides this notice to alert the public of this permanent change in its confidentiality pledge in an efficient and coordinated manner.
Section 13(b) of the Federal Energy Administration Act of 1974, Pub. L. 93-275, codified as 15 U.S.C. 772(b) and the DOE Organization Act of 1977, Pub. L. 95-91, codified at 42 U.S.C. 7101
The staff of the Federal Energy Regulatory Commission (FERC or Commission) has prepared an environmental assessment (EA) for the Lone Star Project, proposed by Tennessee Gas Pipeline Company, LLC (Tennessee) in the above-referenced docket. Tennessee requests authorization to construct and operate two new compressor stations in San Patricio and Jackson Counties, Texas.
The EA assesses the potential environmental effects of construction and operation of the Lone Star Project in accordance with the requirements of the National Environmental Policy Act. The FERC staff concludes that approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment.
The proposed Lone Star Project includes the following facilities:
• One new bi-directional enclosed Compressor Station 3A in San Patricio County, Texas, consisting of one 10,915 horsepower (hp) International Organization for Standardization (ISO) rated Solar Taurus 70 turbine/compressor unit and associated appurtenances; and
• one new bi-directional enclosed Compressor Station 11A in Jackson County, Texas, consisting of one 20,500-hp ISO rated Solar Titan 130 turbine/compressor unit and appurtenances.
The FERC staff mailed copies of the EA to federal, state, and local government representatives and agencies; elected officials; Native American tribes; potentially affected landowners and other interested individuals and groups, including commenters; newspapers and libraries in the project area; and parties to this proceeding. In addition, the EA is available for public viewing on the FERC's Web site (
Any person wishing to comment on the EA may do so. Your comments should focus on the potential environmental effects, reasonable alternatives, and measures to avoid or lessen environmental impacts. The more specific your comments, the more useful they will be. To ensure that the Commission has the opportunity to consider your comments prior to making its decision on this project, it is important that we receive your comments in Washington, DC on or before June 26, 2017.
For your convenience, there are three methods you can use to file your comments with the Commission. In all instances please reference the project docket number (CP16-496-000) with your submission. The Commission encourages electronic filing of comments and has expert staff available to assist you at 202-502-8258 or
(1) You can file your comments electronically using the
(2) You can also file your comments electronically using the
(3) You can file a paper copy of your comments by mailing them to the following address: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First Street NE., Room 1A, Washington, DC 20426.
Any person seeking to become a party to the proceeding must file a motion to intervene pursuant to Rule 214 of the Commission's Rules of Practice and Procedures (18 CFR 385.214).
Additional information about the project is available from the Commission's Office of External Affairs, at (866) 208-FERC, or on the FERC Web site (
In addition, the Commission offers a free service called eSubscription which allows you to keep track of all formal issuances and submittals in specific dockets. This can reduce the amount of time you spend researching proceedings by automatically providing you with notification of these filings, document summaries, and direct links to the documents. Go to
The Federal Energy Regulatory Commission (Commission) hereby gives notice that members of the Commission's staff may attend the following meetings related to the transmission planning activities of the New York Independent System Operator, Inc. (NYISO):
June 7, 2017, 10:00 a.m.-4:00 p.m. (EST).
The above-referenced meeting will be via web conference and teleconference.
The above-referenced meeting is open to stakeholders.
Further information may be found at:
June 13, 2017, 10:00 a.m.-4:00 p.m. (EST).
The above-referenced meeting will be via web conference and teleconference.
The above-referenced meeting is open to stakeholders.
Further information may be found at:
June 14, 2017, 10:00 a.m.-4:00 p.m. (EST).
The above-referenced meeting will be via web conference and teleconference.
The above-referenced meeting is open to stakeholders.
Further information may be found at:
June 15, 2017, 10:00 a.m.-4:00 p.m. (EST).
The above-referenced meeting will be via web conference and teleconference.
The above-referenced meeting is open to stakeholders.
Further information may be found at:
June 22, 2017, 10:00 a.m.-4:00 p.m. (EST).
The above-referenced meeting will be via web conference and teleconference.
The above-referenced meeting is open to stakeholders.
Further information may be found at:
The discussions at the meetings described above may address matters at issue in the following proceedings:
For more information, contact James Eason, Office of Energy Market Regulation, Federal Energy Regulatory Commission at (202) 502-8622 or
This constitutes notice, in accordance with 18 CFR 385.2201(b), of the receipt of prohibited and exempt off-the-record communications.
Order No. 607 (64 FR 51222, September 22, 1999) requires Commission decisional employees, who make or receive a prohibited or exempt off-the-record communication relevant to the merits of a contested proceeding, to deliver to the Secretary of the Commission, a copy of the communication, if written, or a summary of the substance of any oral communication.
Prohibited communications are included in a public, non-decisional file
Exempt off-the-record communications are included in the decisional record of the proceeding, unless the communication was with a cooperating agency as described by 40 CFR 1501.6, made under 18 CFR 385.2201(e)(1)(v).
The following is a list of off-the-record communications recently received by the Secretary of the Commission. The communications listed are grouped by docket numbers in ascending order. These filings are available for electronic review at the Commission in the Public Reference Room or may be viewed on the Commission's Web site at
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l. With this notice, we are designating Eagle Creek Hydro as the Commission's non-federal representative for carrying out informal consultation, pursuant to section 7 of the Endangered Species Act and section 106 of the National Historic Preservation Act.
m. Eagle Creek Hydro filed with the Commission a Pre-Application Document (PAD; including a proposed process plan and schedule), pursuant to 18 CFR 5.6 of the Commission's regulations.
n. A copy of the PAD is available for review at the Commission in the Public Reference Room or may be viewed on
Register online at
o. With this notice, we are soliciting comments on the PAD and Commission's staff Scoping Document 1 (SD1), as well as study requests. All comments on the PAD and SD1, and study requests should be sent to the address above in paragraph h. In addition, all comments on the PAD and SD1, study requests, requests for cooperating agency status, and all communications to and from Commission staff related to the merits of the potential application must be filed with the Commission.
The Commission strongly encourages electronic filing. Please file all documents using the Commission's eFiling system at
All filings with the Commission must bear the appropriate heading: “Comments on Pre-Application Document,” “Study Requests,” “Comments on Scoping Document 1,” “Request for Cooperating Agency Status,” or “Communications to and from Commission Staff.” Any individual or entity interested in submitting study requests, commenting on the PAD or SD1, and any agency requesting cooperating status must do so by July 29, 2017.
p. Although our current intent is to prepare an environmental assessment (EA), there is the possibility that an Environmental Impact Statement (EIS) will be required. Nevertheless, this meeting will satisfy the NEPA scoping requirements, irrespective of whether an EA or EIS is issued by the Commission.
Commission staff will hold two scoping meetings in the vicinity of the project at the time and place noted below. The daytime meeting will focus on resource agency, Indian tribes, and non-governmental organization concerns, while the evening meeting is primarily for receiving input from the public. We invite all interested individuals, organizations, and agencies to attend one or both of the meetings, and to assist staff in identifying particular study needs, as well as the scope of environmental issues to be addressed in the environmental document. The times and locations of these meetings are as follows:
Scoping Document 1 (SD1), which outlines the subject areas to be addressed in the environmental document, was mailed to the individuals and entities on the Commission's mailing list. Copies of SD1 will be available at the scoping meetings, or may be viewed on the web at
The applicant and Commission staff will conduct an Environmental Site Review of the project on Wednesday, June 21, 2017, starting at 8:00 a.m. for the Swinging Bridge Project and Wednesday, June 21, 2017, starting at 1:00 p.m. for the Mongaup Falls and Rio Projects. For the site visits, Eagle Creek Hydro has made arrangements with a bus company to provide transportation from the Monticello Walmart parking lot located at 41 Anawana Lake Road, Monticello, New York 12701. Participants should park in the remote parking lot located east of the store's main parking lot, between Walmart and the Burger King located along Route 42.
Please note that the Swinging Bridge project will be visited in the morning with an hour-long break at about 12:00 p.m. After the break, the Mongaup Falls and Rio projects will be visited. No lunch is provided. Participants should make their own arrangements for lunch. Food services are available in the area.
Please RSVP Jane Manibusan at (920) 293-4628 or
At the scoping meetings, staff will: (1) Initiate scoping of the issues; (2) review and discuss existing conditions and resource management objectives; (3) review and discuss existing information and identify preliminary information and study needs; (4) review and discuss the process plan and schedule for pre-filing activity that incorporates the time frames provided for in Part 5 of the Commission's regulations and, to the extent possible, maximizes coordination of federal, state, and tribal permitting and certification processes; and (5) discuss the appropriateness of any federal or state agency or Indian tribe acting as a cooperating agency for development of an environmental document.
Meeting participants should come prepared to discuss their issues and/or concerns. Please review the PAD in preparation for the scoping meetings. Directions on how to obtain a copy of the PAD and SD1 are included in item n. of this document.
The meetings will be recorded by a stenographer and will be placed in the public records of the project.
Take notice that the Commission received the following electric corporate filings:
Take notice that the Commission received the following electric rate filings:
The filings are accessible in the Commission's eLibrary system by clicking on the links or querying the docket number.
Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.
eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at:
Take notice that the Commission received the following exempt wholesale generator filings:
Take notice that the Commission received the following electric rate filings:
Take notice that the Commission received the following electric reliability filings:
The filings are accessible in the Commission's eLibrary system by clicking on the links or querying the docket number.
Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.
eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at:
Environmental Protection Agency (EPA).
Notice of establishment of Negotiated Rulemaking Committee and notice of public meetings.
EPA is giving notice that it is establishing a Negotiated Rulemaking Committee (Committee) under the Negotiated Rulemaking Act (NRA). The objective of the Committee is to negotiate a proposed rule that would limit chemical data reporting requirements under section 8(a) of the Toxic Substances Control Act (TSCA), as amended by the Frank R. Lautenberg Chemical Safety for the 21st Century Act, for manufacturers of any inorganic byproduct chemical substances when such byproduct chemical substances are subsequently recycled, reused, or reprocessed. The purpose of the Committee is to conduct discussions in a good faith attempt to reach consensus on proposed regulatory language. This negotiation process is required by section 8(a)(6) of TSCA. This notice lists the stakeholder groups from which EPA plans to invite representatives to participate as members of the Committee, all of whom have been identified as having a definable stake in the outcome of the proposed requirements. This notice also announces the first two meetings of the Committee, which are open to the public.
The first of the Committee meetings, which are both open to the public, will be held on June 8, 2017, from 9 a.m. to 5 p.m. and on June 9, 2017, from 9 a.m. to 3:00 p.m. The second Committee meeting will be held on August 16, 2017, from 9 a.m. to 5 p.m. and on August 17, 2017, from 9 a.m. to 3:00 p.m.
Both meetings will be held at William Jefferson Clinton East Building, Room 1153, 1201 Constitution Avenue NW., Washington, DC 20004.
Any member of the public wishing to obtain information concerning the public meetings may contact Jonah Richmond, Designated Federal Officer (DFO), Conflict Prevention and Resolution Center, Office of General Counsel, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: (202) 564-0210; email address:
For information on access or services for individuals with disabilities, or to request accommodation for a disability, please contact the DFO, preferably at least ten days prior to the meetings to give EPA as much time as possible to process your request.
You may be potentially affected by this action if you manufacture (including manufacture as a byproduct chemical substance and including import) chemical substances listed on the TSCA Inventory. The following list of North American Industrial Classification System (NAICS) codes are not intended to be exhaustive, but rather provides a guide to help readers determine whether this action may apply to them:
1. Chemical manufacturers and importers (NAICS codes 325 and 324110;
2. Chemical users and processors who may manufacture a byproduct chemical substance (NAICS codes 22, 322, 331, and 3344;
If you have any questions regarding the applicability of this action to a particular entity, consult the technical person listed under
The docket for this action, identified by docket identification (ID) number EPA-HQ-OPPT-2016-0597, is available at
As required by the Negotiated Rulemaking Act of 1996 (NRA), EPA is giving notice that the agency is establishing a Negotiated Rulemaking Committee. The objective of this Committee is to develop a proposed rule providing for limiting chemical data reporting requirements, under TSCA section 8(a), for manufacturers of any inorganic byproduct chemical substances when such byproduct chemical substances are subsequently recycled, reused, or reprocessed. This negotiation process, which includes the establishment of a federal advisory committee, is required by TSCA section 8(a)(6), as amended by the Frank. R. Lautenberg Chemical Safety for the 21st Century Act (Lautenberg Act).
This Committee will be a statutory advisory committee under the Federal Advisory Committee Act, 5 U.S.C. App. 2 § 9(a)(1). In accordance with Section 9(c) of the Federal Advisory Committee Act, 5 U.S.C. App. I § 9(c), EPA prepared a charter for the establishment of the Negotiated Rulemaking Committee. Copies of the Committee's charter will be filed with the appropriate congressional committees, the Library of Congress, and available online at
This notice announces the stakeholder groups from which EPA intends to invite individuals as members of the Committee, all of whom will have been identified as having a definable stake in the outcome of the proposed requirements. EPA is also announcing the first two meetings of the Committee. These meetings have been scheduled for the dates indicated under
This notice announcing EPA's establishment of a Negotiated Rulemaking Committee to negotiate a proposed regulation was developed under the authority of NRA sections 563 and 564 (5 U.S.C. 561, Pub. L. 104-320). Any proposed regulation resulting from the negotiation process would be developed under the authority of TSCA section 8 (15 U.S.C. 2607), as amended by the Lautenberg Act (Pub. L. 114-182).
Under TSCA, EPA regulates the manufacture (including import), processing, distribution, use, and disposal of chemical substances in the United States. Information submitted by manufacturers (including importers) as required by CDR provides exposure-related data for chemical substances in U.S. commerce that are subject to TSCA. This information supports agency risk evaluation, risk management, and other programs; it is made publicly available, to the extent possible, while protecting information claimed as confidential business information.
Prior to 2011, CDR was known as the Inventory Update Reporting (IUR) regulation. In 1986, EPA promulgated IUR regulations under the authority of TSCA section 8(a) to collect limited information on the manufacture (including import) of organic chemical substances listed on the TSCA Inventory, thereby providing more up-to-date production volume information on the chemical substances in U.S. commerce. In 2005, EPA amended IUR regulations to require the reporting of information on inorganic chemical substances and to collect additional manufacturing, processing, and use information. EPA has since made additional changes to the reporting requirements, and in 2011 changed the name of the reporting rule to Chemical Data Reporting. CDR regulations are currently codified at 40 CFR part 711. EPA believes CDR is the only current reporting obligation under TSCA section 8(a) that is likely to affect the manufacturers of inorganic byproduct chemical substances.
Manufacturers of inorganic chemical substances first reported this information in 2006, with subsequent reporting in 2012 and 2016. Specific reporting requirements for these manufacturers were phased in, to allow for the industry to better understand the reporting requirements and for EPA to gain a better understanding of the industry.
A byproduct chemical substance is a chemical substance produced without a separate commercial intent during the manufacture, processing, use, or disposal of another chemical substance or mixture. 40 CFR 704.3, definition of
On June 22, 2016, TSCA was amended by the Lautenberg Act. TSCA now includes a requirement that EPA enter into a negotiated rulemaking, pursuant to the NRA, to develop and publish a proposed rule to limit the reporting requirements under TSCA section 8(a), for manufacturers of any inorganic byproduct chemical substances when such byproduct chemical substances, whether by the byproduct chemical substance manufacturer or by any other person, are subsequently recycled, reused, or reprocessed. The objective of the negotiated rulemaking process is to develop and publish a proposed rule by June 22, 2019. In the event the Committee reaches a consensus and a proposed rule is developed through the negotiated rulemaking process, a final rule “resulting from such negotiated rulemaking” must be issued by December 22, 2019. 15 U.S.C. 2607(a)(6).
In its Notice of Intent to Establish a Negotiated Rulemaking Committee and Negotiate a Proposed Rule (81 FR 90843, December 15, 2016), EPA stated that it was seeking a facilitator to conduct the negotiations. Christopher Moore, Ph.D., of Collaborative Decision Resources Associates, and Laura Sneeringer, of the Consensus Building Institute, have been retained for this purpose.
The facilitators conducted extensive interviews with interested stakeholders, asking for recommendations for potential Committee members. To facilitate representative selection, the facilitators suggested qualifications, knowledge, and skills that should be possessed by representatives, which would help promote productive deliberations. These included:
• Knowledge of technical issues related to inorganic byproducts;
• Experience with CDR and inorganic byproduct reporting;
• Direct representation of a constituency or a stakeholder group as a whole, such as an industry, or as component parts, such as large or small companies;
• Not serving as external technical consultants or legal counsel without constituents;
• Authority to reach agreements and make commitments for their stakeholder group;
• Willingness and flexibility to discuss issues that will be the focus of the dialogue with parties that may have different views or interests;
• Willingness to engage in productive interest-based negotiations and avoid adversarial or legal argumentation; and
• A commitment to negotiate in good faith and strive to find solutions that will meet all parties' interests to the greatest extent possible.
EPA is planning to invite representatives from the following stakeholder groups to serve on the Committee:
• Inorganic chemical manufacturers and processors, including metal mining and related activities;
• Recyclers, including scrap recyclers;
• Industry advocacy groups;
• Environmental advocacy groups; and
• Federal, State, and Tribal governments.
EPA values public input during this process. The meetings announced in this notice will be open to the public, so interested parties may observe the meetings and communicate their views in the appropriate time and manner, as defined in each meeting's agenda. Consistent with the requirements of FACA, formal meeting materials and summaries will be available online.
In general, individuals or groups requesting an oral presentation at a public meeting will be limited to five minutes. Each person making an oral statement should consider providing written comments as well as their oral statement so that the points presented orally can be expanded upon in writing. Interested parties should submit requests by email to
Written statements will be accepted throughout the advisory process; however, for timely consideration, statements should be supplied by email to
EPA anticipates up to five Committee meetings will be held between June and October 2017, including the Committee meetings that EPA is announcing in this Notice. Committee meetings will be one and a half days each, and held in Washington, DC, unless the Committee decides otherwise. The Committee will separately announce those meetings subsequent to the meetings being announced in this notice.
The first Committee meeting will be held on June 8, 2017, from 9 a.m. to 5 p.m. and on June 9, 2017, from 9 a.m. to 3:00 p.m. The second Committee meeting will be held on August 16, 2017, from 9 a.m. to 5 p.m. and on August 17, 2017, from 9 a.m. to 3:00 p.m. Both meetings will be open to the public. Meeting details and agenda information will be available online at
On December 15, 2016, EPA published a notice of intent to establish a Committee to negotiate a proposed rule that would limit chemical data reporting requirements under section 8(a) of TSCA, for manufacturers of any inorganic byproduct chemical substances, when such byproduct chemical substances are subsequently recycled, reused, or reprocessed (81 FR 90843). The notice requested comment on membership, the interests affected by the rulemaking, the issues the Committee should address, and the procedures it should follow.
EPA received 18 comments on the notice of intent, which can all be found in the docket for this Notice. None of the comments opposed using regulatory negotiation for this rulemaking; most endorsed the process and included requests to serve on the Committee. However, one commenter raised four substantive issues, which EPA is responding to here.
The commenter encouraged EPA to select representatives that are knowledgeable about the issue and have the authority to make commitments for the agency. EPA agrees. EPA will have two representatives at the table—one technical expert on CDR, and the other an EPA manager with the authority to, in consultation with other EPA officials as needed, make commitments for the agency. EPA will also have other technical experts available to answer questions about other EPA programs, as recommended by the commenter.
The commenter recommended that the Small Business Administration (SBA) Office of Advocacy be represented on the Committee. Because SBA's Office of Advocacy already has multiple established processes for providing input during rulemaking, such as serving on Small Business Advocacy Review Panels that are convened under the Regulatory Flexibility Act, as amended by the Small Business Regulatory Enforcement Fairness Act, 5 U.S.C. 609(b)(3) (1980), and participating in interagency review conducted under Executive Order 12866, 58 FR 51735 (October 4, 1993), and because EPA believes it is important for the federal government to be represented as a singular entity at the table, SBA will not serve on the Committee. EPA will coordinate with SBA through the standard processes that apply to EPA rulemaking. In addition, SBA, as well as other federal agencies, will be invited to attend all Committee meetings as an observer.
The commenter believes that the Lautenberg Act requires EPA to propose and finalize a rule lessening the reporting burdens for inorganic byproducts sent for recycling, regardless of whether consensus is reached by the Committee. As EPA explained in its December 15, 2016, Notice, the agency construes its obligation to propose and finalize a rule under TSCA section 8(a)(6) as being contingent on the Committee reaching a consensus.
EPA's obligation under TSCA section 8(a)(6)(B) is to finalize a rule “resulting from such negotiated rulemaking.” While EPA would have authority to issue an amendment to the CDR for inorganic byproducts even if negotiation failed to achieve any consensus, such a rule would not be a rule
This reading is consistent with the structure of TSCA section 8(a)(6) as a whole, requiring a proposed rule within three years of the Lautenberg Act's enactment and a final rule six months later. Under the commenter's reading, if the Negotiated Rulemaking Committee could not reach any consensus to limit the reporting requirements for inorganic byproducts, EPA would still be required to come up with its own approach by June 2019 without the benefit of agreement from the interested parties. EPA can reasonably assume that such an approach would draw adverse comment from the party or parties that blocked consensus in the Negotiated Rulemaking Committee, and thus the agency would only have six months to solicit, consider, and respond to those comments before the statutorily required deadline. EPA does not believe that Congress intended for this to occur because it did not direct the agency to limit reporting requirements in any
By establishing the Committee in today's Notice, EPA is fulfilling the Lautenberg Act's requirement to “enter into a negotiated rulemaking pursuant to” the NRA to develop and publish a proposed rule. 15 U.S.C. 2607(a)(6)(A). When viewed under the lens of the statutory structure, any requirement for EPA to actually “develop and publish” a proposed rule must necessarily also result from consensus being reached by the Committee.
For these reasons, EPA respectfully disagrees with the commenter. If consensus cannot be reached, and there is no agreement upon which to base a proposal, then there is no further statutory obligation to issue a proposal or a final rule. However, as noted in the December 15, 2016, Notice, EPA commits to working in good faith to seek consensus on a proposal that is consistent with the legal mandate of TSCA.
The commenter recommended that the Committee use a definition of consensus that does not require unanimous concurrence among the Committee, citing the potential for one Committee member's veto to result in no agreement. The NRA defines consensus as unanimous concurrence, unless the Committee agrees otherwise. 5 U.S.C. 562. A unanimous concurrence definition is important in ensuring no one interest or group of interests is able to control the process. While EPA believes that unanimous concurrence is not an unreasonably high bar, particularly with the assistance of a highly skilled neutral facilitator with expertise in building consensus, the Committee has the power under the NRA to agree to another definition of consensus.
15 U.S.C. 2601
Environmental Protection Agency (EPA).
Notice.
This notice announces EPA's approval of the State of Utah's request to revise/modify certain of its EPA-authorized programs to allow electronic reporting.
EPA's approval is effective June 5, 2017.
Karen Seeh, U.S. Environmental Protection Agency, Office of Environmental Information, Mail Stop 2823T, 1200 Pennsylvania Avenue NW., Washington, DC 20460, (202) 566-1175,
On October 13, 2005, the final Cross-Media Electronic Reporting Rule (CROMERR) was published in the
On March 28, 2017, the Utah Department of Environmental Quality (UT DEQ) submitted an application titled “NPDES e-Reporting Tool” for revisions/modifications to its EPA-approved programs under title 40 CFR to allow new electronic reporting. EPA reviewed UT DEQ's request to revise/modify its EPA-authorized programs and, based on this review, EPA determined that the application met the standards for approval of authorized program revisions/modifications set out in 40 CFR part 3, subpart D. In accordance with 40 CFR 3.1000(d), this notice of EPA's decision to approve Utah's request to revise/modify its following EPA-authorized programs to allow electronic reporting under 40 CFR parts 122, 125, 403-471, 501, and 503, is being published in the
Part 123—EPA Administered Permit Programs: The National Pollutant Discharge Elimination System;
Part 403—General Pretreatment Regulations for Existing and New Sources of Pollution; and
Part 501—State Sludge Management Program Regulations.
UT DEQ was notified of EPA's determination to approve its application with respect to the authorized programs listed above.
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility;
The Commission may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.
Written comments should be submitted on or before July 5, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contacts listed below as soon as possible.
Direct all PRA comments to Nicholas A. Fraser, OMB, via email
For additional information or copies of the information collection, contact Cathy Williams at (202) 418-2918. To view a copy of this information collection request (ICR) submitted to OMB: (1) Go to the Web page
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The following are the information collection requirements in connection with the amended provisions of Appendix B of Part 1 of the Commission's rules (47 CFR part 1, App. B):
• Stipulation VII.C of the amended Collocation Agreement provides that proposals to mount a small antenna on a traffic control structure (
The First Amendment to the Collocation Agreement establishes new exclusions from the Section 106 review process for physically small deployments like DAS and small cells, fulfilling a directive in the Commission's Infrastructure Report and Order, 80 FR 1238, Jan. 8, 2015, to further streamline review of these installations. These new exclusions will reduce the cost, time, and burden associated with deploying small facilities in many settings, and provide opportunities to increase densification at low cost and with very little impact on historic properties. Facilitating these deployments thus directly advances efforts to roll out 5G service in communities across the country.
FCC Form 340 also contains a third party disclosure requirement, pursuant to Section 73.3580. This rule requires a party applying for a new broadcast station, or making a major change to an existing station, to give local public notice of this filing in a newspaper of general circulation in the community in which the station is located. This local public notice must be completed within 30 days of tendering the application. This notice must be published at least twice a week for two consecutive weeks in a three-week period. In addition, a copy of this notice must be placed in the station's public inspection file along with the application, pursuant to Section 73.3527. This recordkeeping information collection requirement is contained in OMB Control No. 3060-0214, which covers Section 73.3527.
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The Commission may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.
Written comments should be submitted on or before July 5, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contacts listed below as soon as possible.
Direct all PRA comments to Nicholas A. Fraser, OMB, via email
For additional information or copies of the information collection, contact Nicole
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The Commission has established rules for the marketing of radio frequency (RF) devices prior to equipment authorization under guidelines in 47 CFR Section 2.803. The general guidelines in Section 2.803 prohibit the marketing or sale of such equipment prior to a demonstration of compliance with the applicable equipment authorization and technical requirements in the case of a device subject to verification or Declaration of Conformity without special notification. Section 2.803(c)(2) permits limited marketing activities prior to equipment authorization, for devices that could be authorized under the current rules; could be authorized under waivers of such rules that are in effect at the time of marketing; or could be authorized under rules that have been adopted by the Commission but that have not yet become effective. These devices may be not operated unless permitted by section 2.805.
The following general guidelines apply for third party notifications:
(a) A RF device may be advertised and displayed at a trade show or exhibition prior to a demonstration of compliance with the applicable technical standards and compliance with the applicable equipment authorization procedure provided the advertising and display is accompanied by a conspicuous notice specified in
(b) An offer for sale solely to business, commercial, industrial, scientific, or medical users of an RF device in the conceptual, developmental, design or pre-production stage prior to demonstration of compliance with the equipment authorization regulations may be permitted provided that the prospective buyer is advised in writing at the time of the offer for sale that the equipment is subject to FCC rules and that the equipment will comply with the appropriate rules before delivery to the buyer or centers of distribution.
(c) Equipment sold as evaluation kit may be sold to specific users with notice specified in Section 2.803(c)(2)(iv)(B).
The information to be disclosed about marketing of the RF device is intended:
(1) To ensure the compliance of the proposed equipment with Commission rules; and
(2) To assist industry efforts to introduce new products to the marketplace more promptly.
The information disclosure applies to a variety of RF devices that:
(1) Is pending equipment authorization or verification of compliance;
(2) May be manufactured in the future;
(3) May be sold as kits; and
(4) Operates under varying technical standards.
The information disclosed is essential to ensuring that interference to radio communications is controlled.
Commission staff will use the information to assign licenses, determine regional spectrum requirements and to develop technical standards. The information will also be used to determine whether prospective licensees operate in compliance with the Commission's rules. Without such information, the Commission could not accommodate regional requirements or provide for the efficient use of the available frequencies. This information collection includes rules to govern the operation and licensing of the 700 MHz and 4.9 GHz bands rules and regulation to ensure that licensees continue to fulfill their statutory responsibilities in accordance with the Communications Act of 1934, as amended. Such information will continue to be used to verify that applicants are legally and technically qualified to hold licenses, and to determine compliance with Commission rules.
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The Commission may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.
Written comments should be submitted on or before July 5, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contacts listed below as soon as possible.
Direct all PRA comments to Nicholas A. Fraser, OMB, via email
For additional information or copies of the information collection, contact Nicole Ongele at (202) 418-2991. To view a copy of this information collection request (ICR) submitted to OMB: (1) Go to the Web page
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act of 1995 (PRA), the Federal Communications Commission (FCC or Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collections. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The FCC may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.
Written comments should be submitted on or before August 4, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contacts below as soon as possible.
Direct all PRA comments to Cathy Williams, FCC, via email:
For additional information about the information collection, contact Cathy Williams at (202) 418-2918.
As part of its continuing effort to reduce paperwork burdens, and as required by the PRA, 44 U.S.C. 3501-3520, the FCC invites the general public and other Federal agencies to take this opportunity to comment on the following information collections. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The data collected on FCC Form 601 includes the FCC Registration Number (FRN), which serves as a “common link” for all filings an entity has with the FCC. The Debt Collection Improvement Act of 1996 requires entities filing with the Commission use an FRN.
On November 7, 2014, the Federal Communications Commission (“Commission”) released a Report and Order and Further Notice of Proposed Rulemaking (FCC 14-181) in WT Docket No. 12-40 to reform its rules governing the 800 MHz Cellular Radiotelephone (Cellular) Service. Subsequently, on March 24, 2017, the Commission released a Second Report and Order (FCC 17-27) in that same proceeding, revising certain technical and licensing rules applicable to the Cellular Service (Cellular Second R&O). In addition to rule revisions that do not affect this information collection, in the Cellular Second R&O, the Commission adopted revised radiated power rules, giving Cellular licensees the option to comply with effective radiated power limits based on power spectral density (PSD), and it made conforming changes to related technical provisions to accommodate PSD. The Commission retained, as an option, the existing radiated power limits (non-PSD) and related technical requirements for Cellular licensees that either cannot or choose not to use a PSD model. The Commission also revised the definition and filing requirements for permanent discontinuance of operations, consistent with transitioning the Cellular Service from a site-based regime to one that is geographic-based.
The Commission now seeks approval for revisions to its currently approved collection of information under OMB Control Number 3060-0798 to permit the collection of PSD-related technical information (in lieu of certain non-PSD technical information) for Cellular Service licensees that opt to use a PSD model for their systems, pursuant to the Cellular Second R&O. We are revising Schedule F of Form 601 accordingly to allow licensees to request modifications to their licenses based on PSD operations. We do not anticipate that this revision will have any impact on the burden to complete the form/Schedule F.
The Commission therefore seeks approval for a revision to its currently approved information collection on FCC Form 601 to revise FCC Form 601 accordingly.
This revised information collection reflects changes in rules applicable to Part 22 800 MHz Cellular Radiotelephone (“Cellular”) Service licensees and applicants, as adopted by the Commission in a Second Report and Order in WT Docket No. 12-40 and a companion Report and Order in WT Docket No. 10-112 concerning the Wireless Radio Services (WRS), which include the Cellular Service among others (WRS R&O) (FCC 17-27). The Cellular Second R&O and WRS R&O revised or eliminated certain licensing rules and modernized outdated technical rules applicable to the Cellular Service. Specifically, in addition to rule revisions that do not affect this information collection, in the Cellular Second R&O, the Commission revised the Cellular radiated power rules, giving licensees the option to comply with effective radiated power limits based on power spectral density (PSD), and giving licensees the additional option to operate at PSD limits above a specified threshold (Higher PSD Limits) so long as certain conditions are met. One of these conditions, set forth in a new provision of the Cellular rules, is a requirement for written advance notification to public safety entities within a specified radius of the cell sites to be deployed at the Higher PSD Limits. This third-party disclosure requirement is an important component of the Commission's approach to protecting public safety entities from increased potential for unacceptable interference to their communications. Also in the Cellular Second R&O and of relevance to this information collection, the Commission eliminated the requirement for filings for certain changes to cell sites in a Cellular system. In the WRS R&O, the Commission deleted the Part 22 Cellular comparative hearing/license renewal rules, resulting in discontinued information collections for the following rule sections: 22.935, 22.936, 22.939, and 22.940.
The Commission is now seeking approval from the Office of Management and Budget (“OMB”) for a revision of this information collection.
Federal Deposit Insurance Corporation.
Update listing of financial institutions in liquidation.
Notice is hereby given that the Federal Deposit Insurance Corporation (Corporation) has been appointed the sole receiver for the following financial institutions effective as of the Date Closed as indicated in the listing. This list (as updated from time to time in the
Federal Election Commission.
Thursday, June 8, 2017 at 10:00 a.m.
999 E Street NW., Washington, DC (Ninth Floor).
This meeting will be open to the public.
Individuals who plan to attend and require special assistance, such as sign language interpretation or other reasonable accommodations, should contact Dayna C. Brown, Secretary and Clerk, at (202) 694-1040, at least 72 hours prior to the meeting date.
Judith Ingram, Press Officer, Telephone: (202) 694-1220.
Board of Governors of the Federal Reserve System.
Notice, request for comment.
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the mandatory Government-Administered, General-Use Prepaid Card Issuer Survey (FR 3063a; OMB No. 7100-0343) and the voluntary Government-Administered, General-Use Prepaid Card Government Survey (FR 3063b; OMB No. 7100-0343).
On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board authority under the Paperwork Reduction Act (PRA) to approve of and assign OMB control numbers to collection of information requests and requirements conducted or sponsored by the Board. In exercising this delegated authority, the Board is directed to take every reasonable step to solicit comment. In determining whether to approve a collection of information, the Board will consider all comments received from the public and other agencies.
Comments must be submitted on or before August 4, 2017.
You may submit comments, identified by
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All public comments are available from the Board's Web site at
Additionally, commenters may send a copy of their comments to the OMB Desk Officer—Shagufta Ahmed—Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503 or by fax to (202) 395-6974.
A copy of the PRA OMB submission, including the proposed reporting form and instructions, supporting statement, and other documentation will be placed into OMB's public docket files, once approved. These documents will also be made available on the Federal Reserve Board's public Web site at:
Federal Reserve Board Clearance Officer—Nuha Elmaghrabi—Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, Washington, DC 20551 (202) 452-3829. Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors of the Federal Reserve System, Washington, DC 20551.
The Board invites public comment on the following information collection, which is being reviewed under authority delegated by the OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for the proper performance of the Federal Reserve's functions; including whether the information has practical utility;
b. The accuracy of the Federal Reserve's estimate of the burden of the proposed information collection, including the validity of the methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the information to be collected;
d. Ways to minimize the burden of information collection on respondents, including through the use of automated collection techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation, maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations received will be analyzed to determine the extent to which the Federal Reserve should modify the proposed revisions prior to giving final approval.
The government survey (FR 3063b) collects data from state governments, the District of Columbia, and U.S. territories (collectively “state governments”), and municipal government offices located within the United States (local government offices) that administer general-use prepaid card payment programs.
U.S. territories include American Samoa, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, and U.S. Virgin Islands.
The Board uses data from these surveys to support an annual report to the Congress on the prevalence of use of general-use prepaid cards in federal, state, and local government-administered payment programs and on the interchange and cardholder fees charged with respect to such use of such cards.
All of the information collected on the government survey and a limited amount of information collected on the issuer survey is publicly available, and thus, is not accorded confidential treatment. However, most of the information collected on the issuer survey is not publicly available and may be kept confidential as explained herein. Data collected by the issuer survey may be kept confidential under exemption (b)(4) of the Freedom of Information Act (FOIA), which exempts from disclosure “trade secrets and commercial or financial information obtained from a person and privileged or confidential” (5 U.S.C. 552(b)(4)). Such data may be kept confidential under exemption 4 if the release of data would cause substantial harm to the competitive position of the issuer. For example, certain issuer survey responses would likely contain information related to an organization's revenue structure and other proprietary and commercial information and the release of such information would cause substantial harm to the competitive position of the issuer and could therefore be kept confidential under exemption 4.
The companies listed in this notice have given notice under section 4 of the Bank Holding Company Act (12 U.S.C. 1843) (BHC Act) and Regulation Y, (12 CFR part 225) to engage
Each notice is available for inspection at the Federal Reserve Bank indicated. The notice also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the question whether the proposal complies with the standards of section 4 of the BHC Act.
Unless otherwise noted, comments regarding the applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than June 19, 2017.
1.
The Diabetes Mellitus Interagency Coordinating Committee (DMICC) will hold a meeting on June 23, 2017. The subject of the meeting will be “Measurement Science and Glycemic Control.” The meeting is open to the public.
The meeting will be held on June 23, 2017; from 8:30 a.m. to 4:30 p.m. Individuals wanting to present oral comments must notify the contact person at least 10 days before the meeting date.
The meeting will be held in the Democracy 2 Building at 6707 Democracy Blvd., Bethesda, MD, in Conference Room 7050.
For further information concerning this meeting, see the DMICC Web site,
The DMICC, chaired by the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) comprising members of the Department of Health and Human Services and other federal agencies that support diabetes-related activities, facilitates cooperation, communication, and collaboration on diabetes among government entities. DMICC meetings, held several times a year, provide an opportunity for Committee members to learn about and discuss current and future diabetes programs in DMICC member organizations and to identify opportunities for collaboration. The June 23, 2017 DMICC meeting will focus on Measurement Science and Glycemic Control.
Any member of the public interested in presenting oral comments to the Committee should notify the contact person listed on this notice at least 10 days in advance of the meeting. Interested individuals and representatives or organizations should submit a letter of intent, a brief description of the organization represented, and a written copy of their oral presentation in advance of the meeting. Only one representative of an organization will be allowed to present; oral comments and presentations will be limited to a maximum of 5 minutes. Printed and electronic copies are requested for the record. In addition, any interested person may file written comments with the Committee by forwarding their statement to the contact person listed on this notice. The statement should include the name, address, telephone number and when applicable, the business or professional affiliation of the interested person. Because of time constraints for the meeting, oral comments will be allowed on a first-come, first-serve basis.
Members of the public who would like to receive email notification about future DMICC meetings should register for the listserv available on the DMICC Web site,
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meeting.
The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
National Institutes of Health, Department of Health and Human Services.
Notice.
The National Institute of Allergy and Infectious Diseases, an institute of the National Institutes of Health, Department of Health and Human Services, is contemplating the grant of an Exclusive Commercialization Patent License to practice the inventions embodied in the Patents and Patent Applications listed in the Summary Information section of this notice to the International Medica Foundation located in Shoreview, Minnesota, U.S.A.
Only written comments and/or applications for a license which are received by the National Institute of Allergy and Infectious Diseases' Technology Transfer and Intellectual Property Office on or before June 20, 2017 will be considered.
Requests for copies of the patent application, inquiries, and comments relating to the contemplated Exclusive Commercialization Patent License should be directed to: Peter Soukas, Technology Transfer and Patent Specialist, Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases, National Institutes of Health, 5601 Fishers Lane, Suite 6D, Rockville, MD 20852-9804; Email:
E-357-2001/0,1, Pletnev et al., “Construction of West Nile Virus and Dengue Virus Chimeras for use in a Live Virus Vaccine to Prevent Disease Cause by West Nile Virus,” U.S. Provisional Patent Application Number 60/347,281, filed January 10, 2002, PCT Patent Application Number PCT/US2003/00594, filed January 9, 2003, U.S. Patent Application Number 10/871,775 filed June 18, 2004 (now U.S. Patent Number 8,778,671), U.S. Patent Application Number 14/305,572, filed June 16, 2014, European Patent Application Number 03729602.7, filed January 9, 2003, Israeli Patent Application Number 162949, filed January 9, 2003 (now Israeli Patent Number 162949), Canadian Patent Application Number 2472468, filed January 9, 2003 (now Canadian Patent Number 2472468), Australian Patent Application Number 2003216046, filed January 9, 2003 (now Australian Patent Number 2003216046), Japanese Patent Application Number 2003-559545, filed January 9, 2003 (now Japanese Patent Number 4580650), Australian Patent Application Number 2008203442 filed July 31, 2008 (now Australian Patent Number 2008203442), Israeli Patent Application Number 209342, filed January 9, 2003 (now Israeli Patent Number 209342), European Patent Application Number 11000126.0, filed January 9, 2003 (now European Patent Number 2339011, validated in Belgium, Great Britain, the Netherlands, Norway, Germany, Denmark and France), Australian Patent Application Number 2011250694, filed November 10, 2011 (now Australian Patent Number 2011250694), Australian Patent Application Number 2013213749, filed August 9, 2013, European Patent Application Number 15163537.2, filed April 14, 2015, and Canadian Patent Application Number 2903126, filed August 27, 2015, and U.S. and foreign patent applications
E-006-2007/0, Pletnev et al., “Synergistic Internal Ribosome Entry Site/MicroRNA Based Approach for Attenuation of Flaviviruses and Live Vaccine Development,” U.S. Provisional Patent Application Number 62/443,214, filed January 6, 2017, and U.S. and foreign patent applications claiming priority to the aforementioned applications.
The patent rights in these inventions have been assigned to the government of the United States of America.
The prospective exclusive license territory may be worldwide and the field of use may be limited to live attenuated West Nile Virus vaccines for use in humans or animals.
West Nile virus (WNV) is a positive-strand RNA virus of the family Flaviviridae, part of the Japanese encephalitis virus serocomplex that includes important human pathogens such as Murray Valley encephalitis, Japanese encephalitis, and St. Louis encephalitis viruses. WNV has been present in Africa and Asia for decades and has usually been associated with mild illness that includes symptoms of low-grade fever, headache, rash, myalgia, and arthralgia. Recently, WNV has spread rapidly across the Western hemisphere and is now the major vector-borne cause of viral encephalitis in the United States. By 2010, 3 million adults were estimated to have been infected with WNV in the United States, with nearly 13,000 cases of neuroinvasive disease, almost half of which occurred in adults greater than 60 years of age. In this age group, WNV infection can cause hepatitis, meningitis, and encephalitis, leading to paralysis, coma, and death. WNV is considered an emerging infection in the United States and presents a significant public health threat. This epidemiological trend of WNV suggests that the United States can expect periodic WNV outbreaks, underscoring the need for a safe and effective vaccine to protect at-risk populations, especially older adults.
WNV is also a significant worldwide public health threat. Starting in the mid-1990s, the frequency, severity, and geographic range of WNV outbreaks increased, and outbreaks of WNV meningitis and encephalitis affecting primarily adults struck Bucharest, Romania, in 1996, Volgograd, Russia, in 1999, and Israel, in 2000. WNV crossed the Atlantic and reached the Western hemisphere in the summer of 1999 when a cluster of patients with encephalitis was reported in the metropolitan area of New York City, New York, in the United States, and within 3 years the virus had spread to most of the contiguous U.S. and the neighboring countries of Canada and Mexico. In addition, although few human cases have been reported, WNV has also been found in Central and South America through surveillance studies in field specimens, suggesting a potential risk for an outbreak in humans. In the approximately eighty (80) years since its discovery, the virus has propagated to a vast region of the globe and is now considered the most important causative agent of viral encephalitis worldwide.
No vaccine exists today to prevent WNV. The methods and compositions of this invention provide a means for prevention of WNV infection by immunization with live attenuated, immunogenic viral vaccines against WNV.
This notice is made in accordance with 35 U.S.C. 209 and 37 CFR part 404. The prospective exclusive license will be royalty bearing, and the prospective exclusive license may be granted unless within fifteen (15) days from the date of this published notice, the National Institute of Allergy and Infectious Diseases receives written evidence and argument that establishes that the grant of the license would not be consistent with the requirements of 35 U.S.C. 209 and 37 CFR part 404.
Complete applications for a license in the prospective field of use that are filed in response to this notice will be treated as objections to the grant of the contemplated Exclusive Commercialization Patent License Agreement. Comments and objections submitted to this notice will not be made available for public inspection and, to the extent permitted by law, will not be released under the
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
This notice is being published less than 15 days prior to the meeting due to the timing limitations imposed by the review and funding cycle.
National Institutes of Health, HHS.
Notice.
The inventions listed below are owned by an agency of the U.S. Government and are available for licensing to achieve expeditious commercialization of results of federally-funded research and development. Foreign patent applications are filed on selected inventions to extend market coverage for companies and may also be available for licensing.
Chris Kornak, J.D., 240-627-3705,
Technology description follows.
The inventors, listed below, have discovered that glutamine antagonists can be used to treat mice with experimental cerebral malaria (ECM) in conjunction with anti-malarials. It was found that glutamine antagonist, 6-diazo-5-L-norleucine (DON) successfully restored blood-brain barrier integrity and decreased brain swelling in ECM mice. This finding suggests that glutamine antagonists may be effective in treating neurological damage in HCM patients.
This technology is available for licensing for commercial development in accordance with 35 U.S.C. 209 and 37 CFR part 404, as well as for further development and evaluation under a research collaboration.
• Therapeutic for cerebral malaria
• Effective adjunctive therapeutics for cerebral malaria are not available.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
Substance Abuse and Mental Health Services Administration, HHS.
Notice.
The Department of Health and Human Services (HHS) notifies federal agencies of the laboratories and Instrumented Initial Testing Facilities (IITF) currently certified to meet the standards of the Mandatory Guidelines for Federal Workplace Drug Testing Programs (Mandatory Guidelines).
A notice listing all currently HHS-certified laboratories and IITFs is published in the
If any laboratory or IITF has withdrawn from the HHS National Laboratory Certification Program (NLCP) during the past month, it will be listed at the end and will be omitted from the monthly listing thereafter.
This notice is also available on the Internet at
Giselle Hersh, Division of Workplace Programs, SAMHSA/CSAP, 5600 Fishers Lane, Room 16N03A, Rockville, Maryland 20857; 240-276-2600 (voice).
The Department of Health and Human Services (HHS) notifies federal agencies of the laboratories and Instrumented Initial Testing Facilities (IITF) currently certified to meet the standards of the Mandatory Guidelines for Federal Workplace Drug Testing Programs (Mandatory Guidelines). The Mandatory Guidelines were first published in the
The Mandatory Guidelines were initially developed in accordance with Executive Order 12564 and section 503 of Public Law 100-71. The “Mandatory Guidelines for Federal Workplace Drug Testing Programs,” as amended in the revisions listed above, requires strict standards that laboratories and IITFs must meet in order to conduct drug and specimen validity tests on urine specimens for federal agencies.
To become certified, an applicant laboratory or IITF must undergo three rounds of performance testing plus an on-site inspection. To maintain that certification, a laboratory or IITF must participate in a quarterly performance testing program plus undergo periodic, on-site inspections.
Laboratories and IITFs in the applicant stage of certification are not to be considered as meeting the minimum requirements described in the HHS Mandatory Guidelines. A HHS-certified laboratory or IITF must have its letter of certification from HHS/SAMHSA (formerly: HHS/NIDA), which attests that it has met minimum standards.
In accordance with the Mandatory Guidelines dated November 25, 2008 (73 FR 71858), the following HHS-certified laboratories and IITFs meet the minimum standards to conduct drug and specimen validity tests on urine specimens:
* The Standards Council of Canada (SCC) voted to end its Laboratory Accreditation Program for Substance Abuse (LAPSA) effective May 12, 1998. Laboratories certified through that program were accredited to conduct forensic urine drug testing as required by U.S. Department of Transportation (DOT) regulations. As of that date, the certification of those accredited Canadian laboratories will continue under DOT authority. The responsibility for conducting quarterly performance testing plus periodic on-site inspections of those LAPSA-accredited laboratories was transferred to the U.S. HHS, with the HHS' NLCP contractor continuing to have an active role in the performance testing and laboratory inspection processes. Other Canadian laboratories wishing to be considered for the NLCP may apply directly to the NLCP contractor just as U.S. laboratories do.
Upon finding a Canadian laboratory to be qualified, HHS will recommend that DOT certify the laboratory (
Bureau of Land Management, Interior.
Notice.
The State of Alaska (State) has filed an application with the Bureau of Land Management (BLM) for a Recordable Disclaimer of Interest (RDI) from the United States in those lands underlying the George River from its mouth to Julian Creek. The State asserts that the George River, a major tributary of the Kuskokwim River in southwestern Alaska, was navigable and unreserved at the time of Alaska Statehood in 1959.
Comments on this action are due on or before September 5, 2017.
You may submit comments on the State of Alaska's Application for an RDI or the BLM Draft Summary Report for the State's Application for a Recordable Disclaimer of Interest by mail or email. To file by mail, send to: RDI Program Manager (AK-942), Division of Lands and Cadastral, BLM Alaska State Office, 222 West 7th Avenue, #13, Anchorage, AK 99513. To submit by email, send to:
Angie Nichols, RDI Program Manager, at 222 West 7th Avenue, #13, Anchorage, AK 99513; 907-271-3359; or
On March 10, 2006, as modified on September 16, 2015, the State of Alaska filed an application (AA-86373) for an RDI pursuant to section 315 of the Federal Land Policy and Management Act of 1976 and the regulations contained in 43 CFR subpart 1864 for the lands underlying the George River. The State asserts that this river was navigable at the time of Alaska Statehood. As such, the State contends that ownership of the lands underlying this river automatically passed from the United States to the State of Alaska in 1959 at the time of Statehood under the Equal Footing Doctrine; the Submerged Lands Act of 1953; the Alaska Statehood Act; and other title navigability law.
The State's application is for all submerged lands underlying the portion of the George River from its mouth to Julian Creek. Specifically, these are the submerged lands within the bed of the George River between the ordinary high water mark of the left and right banks, beginning at the confluence of Julian Creek in Township 24 North, Range 44 West, Section 4, Seward Meridian, Alaska, U.S. Geological Survey (USGS) 1:63,360 series topographic map Iditarod A-3 (1954). Thence southerly to its confluence with the Kuskokwim River in Township 21 North, Range 46 West, Section 21, Seward Meridian, Alaska, USGS 1:63,360 series topographic map Sleetmute D-5 (1954, minor revisions 1975). The applied section of the George River flows through the following Townships and Ranges:
Seward Meridian:
Township 24 North, Ranges 44-45 West;
Township 23 North, Ranges 45-46 West;
Township 22 North, Ranges 45-46 West;
Township 21 North, Range 46 West.
The precise location may be within other townships due to the ambulatory nature of these water bodies.
An RDI is a legal document through which the United States disavows ownership of specified land, but it does
A final decision on the merits of the State's application will not be made before September 5, 2017. During the 90-day period, interested parties may comment on the State's application, AA-086373, and supporting evidence. This supporting evidence from the State includes three navigability reports prepared by the BLM on May 6, 1980; November 8, 1984; and July 8, 1985. The State's application also included an extract of the “Regional Report” for the Kuskokwim River Region prepared by the BLM in 1985. In addition, the application contained three maps based upon the USGS 1:63,360 topographic maps with water body data extracted from the USGS National Hydrography Dataset—2004, detailing the river from its mouth to its source.
On August 25, 1982, the BLM determined the George River is navigable through Georgetown Native Corporation's selected lands, situated along the lower 22 miles of the river. BLM extended its navigability determination an additional 19 miles upriver to Julian Creek on November 8, 1984. Subsequent navigability opinions in 1985, 1988, and 2004 affirmed that the lower 41 miles of the river are navigable up to Julian Creek.
Interested parties may also comment during this time on the BLM's Draft Summary Report for the State's Application for a Recordable Disclaimer of Interest, which is available on the RDI Web site (see
Copies of the State application, supporting evidence, the BLM Draft Summary Report, and comments, including names and street addresses of commenters, will be available in the case file for public review at the BLM Alaska State Office, Public Room, 222 West 7th Avenue, #13, Anchorage, AK 99513, during regular business hours from 7:30 a.m. to 4:30 p.m., Monday through Friday, except holidays. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment
—including your personal identifying information—may be made publicly available at any time. While you can ask the BLM in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. If the BLM determines the State's evidence is sufficient to find a favorable determination and neither the records nor a valid objection disclose a reason not to disclaim, then the BLM may decide to approve the application.
43 CFR 1864.3.
National Park Service, Department of the Interior.
Notice.
The U.S. Department of the Interior, Bureau of Reclamation (Reclamation), Mid-Pacific Regional Office, has completed an inventory of human remains and associated funerary objects, in consultation with the appropriate Indian tribes or Native Hawaiian organizations, and has determined that there is a cultural affiliation between the human remains and associated funerary objects and present-day Indian tribes or Native Hawaiian organizations. Lineal descendants or representatives of any Indian tribe or Native Hawaiian organization not identified in this notice that wish to request transfer of control of these human remains and associated funerary objects should submit a written request to Reclamation, Mid-Pacific Regional Office. If no additional requestors come forward, transfer of control of the human remains and associated funerary objects to the lineal descendants, Indian tribes, or Native Hawaiian organizations stated in this notice may proceed.
Lineal descendants or representatives of any Indian tribe or Native Hawaiian organization not identified in this notice that wish to request transfer of control of these human remains and associated funerary objects should submit a written request with information in support of the request to the U.S. Department of the Interior, Bureau of Reclamation, Mid-Pacific Regional Office, at the address in this notice by July 5, 2017.
Melanie Ryan, NAGPRA Specialist/Physical Anthropologist, Mid-Pacific Regional Office, Bureau of Reclamation, MP-153, 2800 Cottage Way, Sacramento, CA 95825, telephone (916) 978-5526, email
Notice is here given in accordance with the Native American Graves Protection and Repatriation Act (NAGPRA), 25 U.S.C. 3003, of the completion of an inventory of human remains and associated funerary objects under the control of the U.S. Department of the Interior, Bureau of Reclamation, Mid-Pacific Regional Office, Sacramento, CA. The human remains and associated funerary objects were removed from lands managed by Reclamation, Mid-Pacific Regional Office, in Modoc County, CA.
This notice is published as part of the National Park Service's administrative responsibilities under NAGPRA, 25 U.S.C. 3003(d)(3). The determinations in this notice are the sole responsibility of the museum, institution, or Federal agency that has control of the Native American human remains and associated funerary objects. The National Park Service is not responsible for the determinations in this notice.
A detailed assessment of the human remains and associated funerary objects was made by Reclamation, Mid-Pacific Regional Office, professional staff in consultation with representatives of the Klamath Tribes. The Klamath Tribes represent Klamath, Modoc, and Yahooskin Band of Snake Peoples.
In 1945, human remains representing, at minimum two individuals were removed from the Tule Lake Internment Camp site (CA-MOD-NL4) in Modoc County, CA, by Marvin Kaufmann Opler and donated to the University of California, Berkeley. Opler was an anthropologist, social psychologist, and community analyst who arrived at Tule Lake Internment Camp in May 1943. The human remains were found during the excavation of an irrigation ditch at the camp. No further details about the excavation or the archeological context of the human remains was recorded. The human remains were curated at the Phoebe Hearst Museum of Anthropology, University of California, Berkeley, CA.
Reclamation, Mid-Pacific Regional Office, became aware of these human remains on August 27, 2015, when an inquiry was made by the Klamath Tribes to Reclamation, Mid-Pacific Regional
The human remains consist of one nearly complete adult female, approximately 30-40 years old and a few ribs and thoracic vertebra of one adult, age and sex indeterminate. No known individuals were identified. The two associated funerary objects are one bone tube and one bag of associated soil.
In consultation with the Klamath Tribes, Reclamation, Mid-Pacific Regional Office, determined a close affiliation with the Modoc, a Native American tribe who resided in northeast California and southeast Oregon during, and prior to, Euro-American contact. There is nothing temporally diagnostic available to directly indicate the antiquity of this collection. The Tule Lake Internment Center is located in the ancestral homelands of the Modoc Indians. Modoc territory extended across both sides of what is now the California-Oregon border immediately east of the Cascades. North and west of Modoc territory was the territory of the Klamath, who spoke a dialect of the same language. The western shore of Goose Lake was shared by the Modoc and the Yahooskin Paiute whose territory was to the east. The Klamath, Modoc, and Yahooskin band of Snake (Northern Paiute) Indians ceded lands in south-central Oregon to the United States under terms of the Klamath Treaty of 1864. By the terms of the treaty, all three Indian groups, who are now collectively known as the Klamath Tribes, retained a considerable portion of the Klamath homeland as a reservation.
The amount of wear on the dentition and the association of a bone tube indicates that the human remains are Native American. The associated bone tube was identified through consultation as part of a Modoc bone whistle. The Klamath Tribes presented an ancient Modoc bone whistle of the same form and construction as CA-MOD-NL4 bone tube.
On June 30, 1924, human remains representing, at minimum, one individual were removed from the Snake Island, Tule Lake site (CA-MOD-NL2) in Modoc County, CA, by Mr. Paul Fair of the U.S. Forest Service. Mr. Fair donated the items to the University of California, Berkeley, where they were curated by the Phoebe Hearst Museum. The one associated funerary object is “some bits of cordage.”
On December 8, 2015, the Klamath Tribes inquired about the human remains and associated funerary object from site CA-MOD-NL2. At that time, the human remains, consisting of a skull, had been misplaced by the museum and had not appeared on their annual inventory since the 1980s. The absence of the human remains prevented the identification of the human remains as Native American. On December 11, 2015, the associated funerary object was confirmed to be under the control of the Reclamation, Mid-Pacific Regional Office. The Phoebe Hearst Museum transferred it to Reclamation, Mid-Pacific Regional Office, on March 28, 2016.
Snake Island is located on the Bureau of Reclamation-withdrawn lands that were under control of Reclamation, Mid-Pacific Regional Office, in 1924. During consultation with the Klamath Tribes, Snake Island was identified to be the center of the Modoc world in a place referred to in their creation narrative. The Klamath Tribes provided examples of creation stories that identify Snake Island as an extraordinarily sacred location for Klamath and Modoc peoples. The first stitch of the matting/cordage was recognized by the Klamath Tribes as unique to the Modoc. During consultation, the Klamath Tribes provided several examples of Modoc woven items that were made using the same technique. This weaving technique is described in numerous ethnographies.
Officials of Reclamation, Mid-Pacific Regional Office, have determined that:
• Pursuant to 25 U.S.C. 3001(9), the human remains described in this notice represent the physical remains of two individuals of Native American ancestry.
• Pursuant to 25 U.S.C. 3001(3)(A), the three objects described in this notice are reasonably believed to have been placed with or near individual human remains at the time of death or later as part of the death rite or ceremony.
• Pursuant to 25 U.S.C. 3001(2), there is a relationship of shared group identity that can be reasonably traced between the Native American human remains and associated funerary objects and the Klamath Tribes and The Modoc Tribe of Oklahoma.
Lineal descendants or representatives of any Indian tribe or Native Hawaiian organization not identified in this notice that wish to request transfer of control of these human remains and associated funerary objects should submit a written request with information in support of the request to Melanie Ryan, NAGPRA Specialist/Physical Anthropologist, Mid-Pacific Regional Office, Bureau of Reclamation, MP-153, 2800 Cottage Way, Sacramento, CA 95825, telephone (916) 978-5526, email
The U.S. Department of the Interior, Bureau of Reclamation, Mid-Pacific Regional Office, is responsible for notifying the Klamath Tribes and The Modoc Tribe of Oklahoma that this notice has been published.
United States Section, International Boundary and Water Commission, United States and Mexico (USIBWC).
Notice of Availability of the Draft Supplemental Environmental Assessment (SEA).
Pursuant to Section 102(2)(c) of the National Environmental Policy Act of 1969; the Council on Environmental Quality Final Regulations; and the United States Section, Operational Procedures for Implementing Section 102 of NEPA, published in the
Please note all written and email comments received during the comment period will become part of the public record, including any personal information you may provide. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. All submissions from organizations or businesses, and from individuals identifying themselves as representatives or officials of organizations or businesses, will be made available for public disclosure in their entirety.
Comments and requests for public hearings should be sent to: Elizabeth Verdecchia, Natural Resources Specialist, USIBWC, 4171 N. Mesa, C-100; El Paso, Texas 79902. Telephone: (915) 832-4701, Fax: (915) 493-2428, email:
The purpose is to construct a flood control structure with the following objectives: (1) Eliminate levee deficiencies within the Vinton to Canutillo reach and provide flood protection to withstand the 100-year flood with a minimum of 2 feet freeboard; (2) Maintain the design flood capacity of the RGCP; and 3) Enable the USIBWC to obtain accreditation of levees by the Federal Emergency Management Agency (FEMA).
In the Final Environmental Assessment on Flood Control Improvements to the Rio Grande Canalization Project, dated December 2007, the USIBWC proposed to conduct flood control improvements along approximately 52-miles of east and west levees within the RGCP. The proposed action included the construction of a new flood control structure in the Canutillo Area; however, details of the proposed structure had not been developed and were therefore not analyzed in the 2007 EA.
This Draft SEA evaluates potential environmental impacts of the No Action Alternative and the Preferred Alternative. The Preferred Alternative calls for the construction of a combination of 3 miles of new earthen levees on the floodplain and 2.6 miles of concrete floodwall where limited right of way or physical space exists between the river and the railroad. The Preferred Alternative would also require the construction of a floodgate at the Canutillo Bridge, eleven drainage structures on ephemeral streams with bank stabilization (including modification of one existing drainage structure and construction of ten new drainage structures). Scour protection blankets would be required on some sections of the earthen levee that are close to the river bank. Permits would be required from the Burlington Northern Santa Fe Railroad for work within the railroad right of way. An Individual Permit would be required from the U.S. Army Corps of Engineers for dredge and fill of Waters of the United States, per the Clean Water Act Sections 404 and 401. Six additional alternatives were considered and evaluated in previous analyses but were either found to not meet the purpose and need or were impractical.
Potential impacts on natural, cultural, and other resources were evaluated. While the Preferred Alternative does have adverse impacts to riparian vegetation, Waters of the United States, and access to the river for recreation, the USIBWC has proposed mitigation to restore over 35 acres of native riparian habitat on the floodplain. Mitigation would be part of required permits for construction. A Mitigated Finding of No Significant Impact has been prepared for the Preferred Alternative based on a review of the facts and analyses contained in the SEA.
Elizabeth Verdecchia, Natural Resources Specialist, USIBWC, 4171 N. Mesa, C-100; El Paso, Texas 79902. Telephone: (915) 832-4701, Fax: (915) 493-2428, email:
U.S. International Trade Commission.
Correction.
Correction is made to notice 82 FR 21827-29 which was published on Wednesday, May 10, 2017, to clarify that the Commission found,
Criminal Justice Information Services Division, Federal Bureau of Investigation, Department of Justice.
60-day notice.
Department of Justice (DOJ), Federal Bureau of Investigation,
Comments are encouraged and will be accepted for 60 days until August 4, 2017.
If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact Gerry Lynn Brovey, Supervisory Information Liaison Specialist, FBI, CJIS, Resources Management Section, Administrative Unit, Module C-2, 1000 Custer Hollow Road, Clarksburg, West Virginia, 26306 (facsimile: 304-625-5093). Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20530 or sent to
Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:
Overview of this information collection:
1.
2.
3.
4.
5.
6.
United States Department of Justice.
Notice of a New System of Records.
Pursuant to the Privacy Act of 1974 and Office of Management and Budget (OMB) Circular No. A-108, notice is hereby given that the Department of Justice (Department or DOJ) proposes to add a new DOJ system of records titled, “DOJ Insider Threat Program Records (ITPR),” JUSTICE/DOJ-018. In the
In accordance with 5 U.S.C. 552a(e)(4) and (11), this notice is effective upon publication, subject to a 30-day period in which to comment on the routine uses, described below. Please submit any comments by July 5, 2017.
The public, OMB, and Congress are invited to submit any comments to the U.S. Department of Justice, ATTN: Privacy Analyst, Office of Privacy and Civil Liberties, National Place Building, 1331 Pennsylvania Avenue NW., Suite 1000, Washington, DC 20530-0001, by facsimile at 202-307-0693, or email at
Laurence Reed, DOJ Insider Threat
The DOJ has created a system of records, known as the DOJ Insider Threat Program Records (ITPR), to manage insider threat matters within the DOJ. Executive Order (E.O.) 13587,
The Presidential Memorandum—
The DOJ ITPR may include information lawfully obtained by the DOJ from any United States Government component, from other domestic or foreign government entities, or from private entities, which is necessary to identify, analyze, or resolve insider threat matters.
In accordance with the Privacy Act requirements of 5 U.S.C. 552a(r), the Department of Justice has provided a report to OMB and to Congress on this new system of records.
DOJ Insider Threat Program Records (ITPR), JUSTICE/DOJ-001.
This system includes both Classified and Unclassified information.
Records may be maintained at all locations at which the Department of Justice (DOJ) operates or at which DOJ operations are supported, including: Robert F. Kennedy Main Justice Department Building, 950 Pennsylvania Avenue NW., Washington, DC 20530-0001; Federal Bureau of Investigation J. Edgar Hoover Building, 935 Pennsylvania Avenue NW., Washington, DC 20535-0001; Bureau of Alcohol, Tobacco, Firearms and Explosives, 99 New York Avenue NE., Washington, DC 20226; and other DOJ components, field offices, information technology centers, and other locations as listed on the DOJ and DOJ components' Internet Web sites, including
DOJ Insider Threat Program Manager, United States Department of Justice, Insider Threat Prevention and Detection Program, 145 N Street NE., Washington, DC 20002, 202-357-0165,
E.O. 12968,
DOJ Order 901,
This system of records is used by DOJ employees and contractors to monitor, detect, deter, and/or mitigate DOJ insider threats. The DOJ has established the DOJ ITPDP and this system of records in order to implement the requirements of E.O. 13587,
The categories of individuals covered by this system are DOJ insiders, defined as any person with authorized access to any DOJ resource to include personnel, facilities, information, equipment, networks or systems. Such persons include but are not limited to present and former DOJ employees, members of joint task forces under the purview of the DOJ, contractors, detailees, assignees, interns, visitors, and guests.
An insider threat is defined as the threat that any person with authorized access to any DOJ resource, to include personnel, facilities, information, equipment, networks or systems, will use his/her authorized access, wittingly or unwittingly, to do harm to the security of the United States. This threat can include damage to the United States through espionage, terrorism, unauthorized disclosure of national security information, or through the loss or degradation of DOJ resources or capabilities.
A. All relevant counterintelligence and security databases and files, including personnel security files, polygraph examination reports, facility access records, security violation files, travel records, foreign contact reports, and financial disclosure filings;
B. All relevant Unclassified and Classified network information generated by Information Assurance elements, including, but not limited to, personnel usernames and aliases, levels of network access, audit data, unauthorized use of removable media, print logs, and other data needed for clarification or resolution of an insider threat concern; and
C. All relevant Human Resources databases and files including, but not limited to, personnel files, payroll and voucher files, outside work and activities requests, disciplinary files, and personal contact records, as may be necessary for resolving or clarifying insider threat matters.
Records in the ITPR system consist of information necessary to identify, analyze, or resolve insider threat matters, including the information listed above or information derived from such information.
Information may be provided by individuals covered by this system, the DOJ or other United States Government components, other domestic and foreign government entities, or obtained from private entities.
In addition to those disclosures generally permitted under 5 U.S.C. 552a(b), all or a portion of the records or information contained in this system of records may be disclosed as a routine use pursuant to 5 U.S.C. 552a(b)(3) under the circumstances or for the purposes described below, to the extent such disclosures are compatible with the purposes for which the information was collected:
A. To a governmental entity lawfully engaged in collecting law enforcement, law enforcement intelligence, or national security intelligence information for such purposes when determined to be relevant by the DOJ.
B. To any person, organization, or governmental entity in order to notify them of a potential terrorist threat for the purpose of guarding against or responding to such threat.
C. To any entity or individual where there is reason to believe the recipient is or could become the target of a particular criminal activity, conspiracy, or other threat, to the extent the information is relevant to the protection of life, health, or property. Information may similarly be disclosed to other recipients to the extent the information is relevant to the protection of life, health, or property.
D. To any person or entity if necessary to elicit information or cooperation from the recipient for use by the DOJ in the performance of an authorized law enforcement, national security, or intelligence function.
E. Violations of Law, Regulation, Rule, Order, or Contract. If any system record, alone, or in conjunction with other information, indicates a violation or potential violation of law (whether civil or criminal), regulation, rule, order, or contract, the pertinent record may be disclosed to the appropriate entity (whether federal, state, local, joint, tribal, foreign, or international) that is charged with the responsibility of investigating, prosecuting, implementing and/or enforcing such law, regulation, rule, order, or contract.
F. Complainants and Victims. To complainants and/or victims to the extent necessary to provide such persons with information and explanations concerning the progress and/or results of the investigations or cases arising from the matters of which they complained and/or of which they were victims.
G. Courts or Adjudicative Bodies. To a court, grand jury, or administrative or adjudicative body, in matters in which (a) the DOJ or any DOJ employee in his or her official capacity, (b) any DOJ employee in his or her individual capacity where the Department of Justice has agreed to represent the employee, or (c) the United States, is or could be a party to the litigation, is likely to be affected by the litigation, or has an official interest in the litigation, and disclosure of system records has been determined by the DOJ to be arguably relevant, or by the adjudicator to be relevant, to the litigation. Similar disclosures may be made in the situations stated above related to assistance provided to the Federal Government by non-DOJ employees (see Routine Use J).
H. Parties. To an actual or potential party to litigation or his or her attorney or authorized representative for the purpose of negotiating or discussing such matters as settlement of the case or matter, plea bargaining, or informal discovery proceedings, in matters in which the DOJ has an official interest and in which the DOJ determines records in the system to be arguably relevant.
I. Appropriate Disclosures to the Public. To the news media or members of the general public in furtherance of a legitimate law enforcement or public safety function as determined by the DOJ (
J. Non-DOJ Employees. To contractors, grantees, experts, consultants, students, or others performing or working on a contract, service, grant, cooperative agreement, or other assignment for the Federal Government, when necessary to accomplish an agency function related to this system of records.
K. To designated officers and employees of state, local (including the District of Columbia), territorial, or tribal law enforcement or detention agencies in connection with the hiring or continued employment of an employee or contractor, where the employee or contractor would occupy or
L. To appropriate officials and employees of a Federal agency or entity that requires information relevant to a decision concerning the hiring, appointment, or retention of an employee; the assignment, detail, or deployment of an employee; the issuance, renewal, suspension, or revocation of a security clearance; the execution of a security or suitability investigation; the letting of a contract; or the issuance of a grant or benefit.
M. The White House. To the White House (the President, Vice President, their staffs, and other entities of the Executive Office of the President (EOP)), and, during Presidential transitions, the President-Elect and Vice-President-Elect and their designees for appointment, employment, security, and access purposes compatible with the purposes for which the records were collected by the DOJ,
N. Former Employees. To a former employee of the Department for purposes of: Responding to an official inquiry by a federal, state, local, tribal, or territorial government entity or professional licensing authority, in accordance with applicable DOJ regulations; or facilitating communications with a former employee that may be necessary for personnel-related or other official purposes where the DOJ requires information and/or consultation assistance from the former employee regarding a matter within that person's former area of responsibility. (Such disclosures will be effected under procedures established in 28 CFR 16.300-301 and DOJ Order 2710.8C, including any future revisions.)
O. To federal, state, local, tribal, territorial, foreign, or international licensing agencies or associations when the DOJ determines the information is relevant to the suitability or eligibility of an individual for a license or permit.
P. Members of Congress. To a Member of Congress or a person on his or her staff acting on the Member's behalf when the Member or staff requests the information on behalf of, and at the request of, the individual who is the subject of the record.
Q. National Archives and Records Administration (NARA) Records Management. To the National Archives and Records Administration (NARA) for purposes of records management inspections and such other purposes conducted under the authority of 44 U.S.C. 2904 and 2906.
R. To appropriate agencies, entities, and persons when (1) DOJ suspects or has confirmed that there has been a breach of the system of records; (2) DOJ has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, DOJ (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with DOJ's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.
S. To another Federal agency or Federal entity, when DOJ determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.
T. To such agencies, entities, or persons as is necessary to ensure the continuity of government functions in the event of any actual or potential disruption of normal government operations. This use encompasses all manner of such situations in which government operations may be disrupted, including: Military, terrorist, cyber, or other attacks, natural or manmade disasters, and other national or local emergencies; inclement weather and other acts of nature; infrastructure/utility outages; failures, renovations, or maintenance of buildings or building systems; problems arising from planning, testing or other development efforts; and other operational interruptions. This also includes all related pre-event planning, preparation, backup/redundancy, training and exercises, and post-event operations, mitigation, and recovery.
U. To an agency of a foreign government or international agency or entity where the DOJ determines that the information is relevant to the recipient's responsibilities, dissemination serves the best interests of the United States Government, and where the purpose in making the disclosure is compatible with the purpose for which the information was collected.
V. Auditors. To any agency, organization, or individual for the purposes of performing authorized audit or oversight operations of the DOJ and meeting related reporting requirements.
W. As Mandated by Law. To such recipients and under such circumstances and procedures as are mandated by Federal statute, treaty, or other source of applicable law.
Records in this system are stored on paper and/or in electronic form. Electronic records are stored in enterprise information technology platforms and networks, databases and/or on hard disks, removable storage devices, or other electronic media. Paper records may be stored in individual file folders and file cabinets with controlled access, or other appropriate GSA-approved security containers. Classified information is stored in accordance with applicable legal, administrative, and other requirements.
Information in this system may be retrieved by an individual's name, user ID, email address, Social Security number, unique employee identifier, as well as by use of key word search terms, including the names of persons with
Records in this system are maintained and destroyed in accordance with applicable schedules and procedures issued or approved by NARA.
Records are maintained in secure, restricted areas and are accessed only by personnel who have a need for the records in the performance of their duties and have been authorized to access them. Physical security protections include guarded and locked facilities requiring badges and passwords for access and other physical and technological safeguards (such as role-based access and strong passwords) to prevent unauthorized access. All visitors must be accompanied by authorized staff personnel at all times. Highly Classified or sensitive information is electronically transmitted on secure lines and in encrypted form to prevent interception and interpretation. Users accessing system components through mobile or portable computers or electronic devices such as laptop computers, multi-purpose cell phones, and personal digital assistants (PDAs) must comply with the DOJ's remote access policy, which requires encryption. All DOJ employees receive a complete background investigation prior to being hired. Other persons with authorized access to system records receive comparable vetting. All personnel are required to undergo privacy and annual information security training, and are cautioned about divulging confidential information or any information contained in DOJ files. Failure to abide by this provision violates DOJ regulations and may violate certain civil and criminal statutes providing for penalties of fine or imprisonment or both. As a condition of employment, DOJ personnel also sign nondisclosure agreements which encompass, as appropriate, Classified and Unclassified information and remain in force even after DOJ employment. Employees who resign or retire are also cautioned about divulging information acquired in their DOJ capacity.
The Attorney General has exempted this system of records from the notification, access, amendment, and contest procedures of the Privacy Act. These exemptions apply only to the extent that the information in this system is subject to exemption pursuant to 5 U.S.C. 552a(j) or (k). Where compliance would not appear to interfere with or adversely affect the purposes of the system, or the overall law enforcement/intelligence process, the applicable exemption (in whole or in part) may be waived by the DOJ in its sole discretion.
A request for access to a record from this system of records must be submitted in writing and comply with 28 CFR part 16, and should be sent to the Office of Information Policy, 1425 New York Avenue NW., Suite 11050, Washington, DC 20530-0001. The envelope and letter should be clearly marked “Privacy Act Access Request.” The request should include a general description of the records sought, and must include the requester's full name, current address, and date and place of birth. The request must be signed and dated and either notarized or submitted under penalty of perjury. While no specific form is required, requesters may obtain a form (Form DOJ-361) for use in certification of identity from the FOIA/Privacy Act Mail Referral Unit, Justice Management Division, United States Department of Justice, 950 Pennsylvania Avenue NW., Washington, DC 20530-0001, or from the Department's Web site at
The Attorney General has exempted this system of records from the notification, access, amendment, and contest procedures of the Privacy Act. These exemptions apply only to the extent that the information in this system is subject to exemption pursuant to 5 U.S.C. 552a(j) or (k). Where compliance would not appear to interfere with or adversely affect the purposes of the system, or the overall law enforcement/intelligence process, the applicable exemption (in whole or in part) may be waived by the DOJ in its sole discretion.
Individuals desiring to contest or amend information maintained in the system should direct their requests according to the
Same as the
The Attorney General has exempted this system of records from subsection (c)(3) and (4); (d)(1), (2), (3) and (4); (e)(1), (2), and (3); (e)(4)(G), (H) and (I); (e)(5) and (8); (f) and (g) of the Privacy Act. These exemptions apply only to the extent that information in the system is subject to exemption pursuant to 5 U.S.C. 552a(j) or (k). Rules are being promulgated in accordance with the requirements of 5 U.S.C. 553(b), (c), and (e) and have been published in this
None.
U.S. Marshals Service, Department of Justice.
60-day notice.
The Department of Justice (DOJ), U.S. Marshals Service (USMS), will submit the following information collection request to the Office of
Comments are encouraged and will be accepted for 60 days until August 4, 2017.
If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any additional information, please contact Nicole Timmons either by mail at CG-3, 10th Floor, Washington, DC 20530-0001, by email at
Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:
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If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE., 3E.405A, Washington, DC 20530.
Notice.
The Department of Labor (DOL) is submitting the Wage and Hour Division (WHD) sponsored information collection request (ICR) titled, “Housing Occupancy Certificate—Migrant and Seasonal Agricultural Worker Protection Act,” to the Office of Management and Budget (OMB) for review and approval for continued use, without change, in accordance with the Paperwork Reduction Act of 1995 (PRA). Public comments on the ICR are invited.
The OMB will consider all written comments that agency receives on or before July 5, 2017.
A copy of this ICR with applicable supporting documentation; including a description of the likely respondents, proposed frequency of response, and estimated total burden may be obtained free of charge from the
Submit comments about this request by mail to the Office of Information and Regulatory Affairs, Attn: OMB Desk Officer for DOL-WHD, Office of Management and Budget, Room 10235, 725 17th Street NW., Washington, DC 20503; by Fax: 202-395-5806 (this is not a toll-free number); or by email:
Michel Smyth by telephone at 202-693-4129, TTY 202-693-8064, (these are not toll-free numbers) or by email at
44 U.S.C. 3507(a)(1)(D).
This ICR seeks to extend PRA authority for the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) Housing Occupancy Certificate information collection. Any non-exempt person who owns or controls a facility or real property to be used for housing migrant agricultural workers cannot permit any such worker to occupy the housing unless a copy of a certificate of occupancy from the State, local, or Federal agency that conducted the housing safety and health inspection is posted at the site of the facility or real property. The certificate attests that the
This information collection is subject to the PRA. A Federal agency generally cannot conduct or sponsor a collection of information, and the public is generally not required to respond to an information collection, unless it is approved by the OMB under the PRA and displays a currently valid OMB Control Number. In addition, notwithstanding any other provisions of law, no person shall generally be subject to penalty for failing to comply with a collection of information that does not display a valid Control Number.
OMB authorization for an ICR cannot be for more than three (3) years without renewal, and the current approval for this collection is scheduled to expire on September 30, 2017. The DOL seeks to extend PRA authorization for this information collection for three (3) more years, without any change to existing requirements. The DOL notes that existing information collection requirements submitted to the OMB receive a month-to-month extension while they undergo review. For additional substantive information about this ICR, see the related notice published in the
Interested parties are encouraged to send comments to the OMB, Office of Information and Regulatory Affairs at the address shown in the
• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
• Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;
• Enhance the quality, utility, and clarity of the information to be collected; and
• Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology,
Notice.
The Department of Labor (DOL) is submitting the Occupational Safety and Health Administration (OSHA) sponsored information collection request (ICR) titled, “Gear Certification Standard,” to the Office of Management and Budget (OMB) for review and approval for continued use, without change, in accordance with the Paperwork Reduction Act of 1995 (PRA). Public comments on the ICR are invited.
The OMB will consider all written comments that agency receives on or before July 5, 2017.
A copy of this ICR with applicable supporting documentation; including a description of the likely respondents, proposed frequency of response, and estimated total burden may be obtained free of charge from the
Submit comments about this request by mail to the Office of Information and Regulatory Affairs, Attn: OMB Desk Officer for DOL-OSHA, Office of Management and Budget, Room 10235, 725 17th Street NW., Washington, DC 20503; by Fax: 202-395-5806 (this is not a toll-free number); or by email:
Contact Michel Smyth by telephone at 202-693-4129, TTY 202-693-8064, (these are not toll-free numbers) or by email at
44 U.S.C. 3507(a)(1)(D).
This ICR seeks to extend PRA authority for the Gear Certification Standard information collection requirements codified in regulations 29 CFR part 1919. Applicants submit an Application for Accreditation to Perform Gear Certification Functions (Form OSHA-70) in order to seek OSHA approval to test or examine certain equipment and material handling devices, as required under OSHA maritime regulations, 29 CFR part 1917 (Marine Terminals) and 29 CFR part 1918 (Longshoring). The OSHA uses this information to accredit companies to inspect and provide certification for cranes, derricks, and accessory gear used in the longshoring, marine terminal, and shipyard industries. Certain types of vessel cargo gear and shore-based material handling devices used in maritime operations are required to have accredited companies conduct examinations. The accredited company issues either (1) a certificate to the owner that the piece of equipment has passed the examination or (2) a certificate to the owner of any deficiency found during the examination. The owner is responsible for maintaining a copy of the certification record. Occupational Safety and Health Act sections 2(b)(9), 6, 8(c), and Longshoremen's and Harbor Workers' Compensation Act section
This information collection is subject to the PRA. A Federal agency generally cannot conduct or sponsor a collection of information, and the public is generally not required to respond to an information collection, unless it is approved by the OMB under the PRA and displays a currently valid OMB Control Number. In addition, notwithstanding any other provisions of law, no person shall generally be subject to penalty for failing to comply with a collection of information that does not display a valid Control Number.
OMB authorization for an ICR cannot be for more than three (3) years without renewal, and the current approval for this collection is scheduled to expire on July 31, 2017. The DOL seeks to extend PRA authorization for this information collection for three (3) more years, without any change to existing requirements. The DOL notes that existing information collection requirements submitted to the OMB receive a month-to-month extension while they undergo review. For additional substantive information about this ICR, see the related notice published in the
Interested parties are encouraged to send comments to the OMB, Office of Information and Regulatory Affairs at the address shown in the
• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
• Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;
• Enhance the quality, utility, and clarity of the information to be collected; and
• Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology,
Postal Service
Notice of revisions to an existing system of records.
The United States Postal Service® (Postal Service) is proposing to revise the Customer Privacy Act Systems of Records (SOR). These changes are being made to improve our ability to meet customer and mailer needs for complete destination/shipping records, and to consistently provide accurate and reliable Proof of Delivery and recipient information.
These revisions will become effective without further notice on July 5, 2017 unless comments received on or before that date result in a contrary determination.
Comments may be mailed or delivered to the Privacy and Records Management Office, United States Postal Service, 475 L'Enfant Plaza SW., Room 1P830, Washington, DC 20260-1101. Copies of all written comments will be available at this address for public inspection and photocopying between 8 a.m. and 4 p.m., Monday through Friday.
Janine Castorina, Chief Privacy and Records Management Officer, Privacy and Records Management Office, 202-268-3069 or
This notice is in accordance with the Privacy Act requirement that agencies publish their systems of records in the
Bulk Proof of Delivery (BPOD) provides commercial customers or mailers with the ability to receive signature proof of delivery records for applicable mailpieces without requesting them individually or attaching PS Form 3811, Domestic Return Receipt, on each mailpiece (if applicable). The Postal Service provides records by the delivery tracking data and the delivery date, with recipient information, producing letter facsimiles of delivery records, and presents those to the mailer or the mailer's approved third-party designee in Adobe PDF format electronically.
Proof of Delivery or Return Receipt Electronic (RRE) is a domestic special service that provides customers with an alternative to the PS Form 3811, Domestic Return Receipt. After purchasing a RRE, customers visit
Pursuant to 5 U.S.C. 552a(e)(11), interested persons are invited to submit written data, views, or arguments on this proposal. A report of the proposed revisions has been sent to Congress and to the Office of Management and Budget for their evaluations. The Postal Service does not expect these amended systems of records to have any adverse effect on individual privacy rights. The affected systems are as follows:
Mail Management and Tracking Activity
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8. To provide accurate and reliable delivery information.
9. To provide shipping records for mailpieces with a USPS Tracking
and/or Special Service label and article number.
By customer name, customer ID(s), logon ID, mailing address(es), 11-digit ZIP Code, any Intelligent Mail barcode, USPS Tracking number or Special Service label and article number.
1. IMb Tracing® records are retained for up to 7 days.
Chief Customer and Marketing Officer and Executive Vice President, United States Postal Service, 475 L'Enfant Plaza SW., Washington, DC 20260.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The Exchange proposes to amend the Rule 7000A series relating to the Order Audit Trail System, Rule 8211 and Chapter IX, Section IV relating to Electronic Blue Sheets, Chapter VII, Section VII relating to account identification, and Chapter V, Section VII relating to the Consolidated Options Audit Trail System to reflect changes to these rules once members are effectively reporting to the Consolidated Audit Trail (“CAT”) and the CAT's accuracy and reliability meets certain standards as described below.
The text of the proposed rule change is available on the Exchange's Web site at
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.
The Exchange proposes to amend the Rule 7000A series relating to the Order Audit Trail System (“OATS”), Rule 8211 and Chapter IX, Section IV relating to Electronic Blue Sheets (“EBS”), Chapter VII, Section VII relating to account identification, and Chapter V, Section VII relating to the Consolidated Options Audit Trail System (“COATS”) to reflect changes to these rules once members are effectively reporting to the CAT, and the CAT's accuracy and reliability meets certain standards as described below.
Bats BYX Exchange, Inc.; Bats BZX Exchange, Inc.; Bats EDGA Exchange, Inc.; Bats EDGX Exchange, Inc.; BOX Options Exchange LLC; C2 Options Exchange, Incorporated; Chicago Board Options Exchange, Incorporated; Chicago Stock Exchange, Inc.; FINRA; International Securities Exchange, LLC; Investors' Exchange LLC; ISE Gemini, LLC; ISE Mercury, LLC; Miami International Securities Exchange LLC; MIAX PEARL, LLC; NASDAQ BX, Inc.; NASDAQ PHLX LLC; The NASDAQ Stock Market LLC; National Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE MKT LLC; and NYSE Arca, Inc. (collectively, the “Participants”) filed with the Commission, pursuant to Section 11A of the Exchange Act
ISE Gemini, LLC, ISE Mercury, LLC and International Securities Exchange, LLC have been renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, and Nasdaq ISE, LLC, respectively.
National Stock Exchange, Inc. has been renamed NYSE National, Inc.
The CAT NMS Plan is designed to create, implement, and maintain a consolidated audit trail that will capture in a single consolidated data source customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution. Among other things, Section C.9. of Appendix C to the Plan, as modified by the Commission, requires each Participant to “file with the SEC the relevant rule change filing to eliminate or modify its duplicative rules within six (6) months of the SEC's approval of the CAT NMS Plan.”
(i) Specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired;
(ii) whether the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems; and
(iii) whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.
In response to these requirements, Nasdaq is proposing to delete the Rule 7000A Series (the “OATS Rules”) from the Nasdaq rulebook once the CAT achieves the specific accuracy and reliability standards described below, and Nasdaq has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow Nasdaq to continue to meet its surveillance obligations,
The first issue the Plan requires the proposed rule change to discuss is “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
As discussed in Section A.3.(b) of Appendix C to the CAT NMS Plan, the Participants established an initial Error Rate, as defined in the Plan, of 5% on initially submitted data (
Nasdaq agrees with the Participants' conclusion that a 5% pre-correction threshold “strikes the balance of adapting to a new reporting regime, while ensuring that the data provided to regulators will be capable of being used to conduct surveillance and market reconstruction, as well as having a sufficient level of accuracy to facilitate the retirement of existing regulatory reports and systems where possible.”
To ensure the CAT's accuracy and reliability, Nasdaq is proposing that, before OATS could be retired, the CAT would generally need to achieve a sustained error rate for Industry Member reporting in each of the categories below for a period of at least 180 days of 5% or lower, measured on a pre-correction or as-submitted basis and 2% or lower on a post-correction basis (measured at T+5).
Nasdaq is proposing to use error rates in each the following categories, measured separately for options and for equities, to assess whether the threshold pre- and post-correction error rates are being met:
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•
•
•
•
In addition to these minimum error rates and matching thresholds that generally must be met before OATS can be retired, Nasdaq believes that during the minimum 180-day period during which the thresholds are calculated, Nasdaq's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow Nasdaq to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. Nasdaq believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
The second issue the Plan requires the proposed rule change to address is “whether the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
Nasdaq believes that there is no effective way to retire OATS until all current OATS reporters are reporting to the CAT. Although Technical Specifications for Industry Members are not yet available, Nasdaq believes it would be inefficient, less reliable, and more costly to attempt to marry the OATS and CAT databases for a temporary period to allow some Nasdaq members to report to CAT while others
Nasdaq has identified approximately 300 member firms that currently report to OATS and meet the definition of “Small Industry Member;” however, only ten of these firms submit information to OATS on their own behalf, and eight of the ten firms report very few orders to OATS.
The final issue the Plan requires the proposed rule change to address is “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
As described above, Nasdaq believes that a single cut-over from OATS to CAT is highly preferable to a firm-by-firm approach and is not proposing to exempt members from the OATS requirements on a firm-by-firm basis. The primary benefit to a firm-by-firm exemptive approach would be to reduce the amount of time an individual firm is required to report to a legacy system (
The EBS rule is Nasdaq's rule regarding the automated submission of specific trading data to Nasdaq upon request using the Electronic Blue Sheet system. Rule 8211 applies to EBS reporting for equity securities, while Chapter IX, Section 4 applies EBS reporting to options. Rule 8211 and Chapter IX, Section 4 require members to submit certain trade information as prescribed by Nasdaq Regulation, including, for proprietary transactions, the clearing house number or alpha symbol of the member submitting the data, the identifying symbol assigned to the security, and the date the transaction was executed.
Chapter VII, Section VII imposes certain account identification requirements on Market Makers. Specifically, Chapter VII, Section VII requires, among other things, that each Market Maker shall file with Nasdaq Regulation and keep current a list identifying all accounts for stock, options and related securities trading in which the Market Maker may, directly or indirectly, engage in trading activities or over which it exercises investment discretion. The rule also prohibits a Market Maker from engaging in stock, options or related securities trading in an account which has not been reported pursuant to this rule.
Once broker-dealer reporting to the CAT has begun, the CAT will contain the data the Participants would otherwise have requested via the EBS system for purposes of NMS Securities and OTC Equity Securities. Consequently, Nasdaq will not need to use the EBS system or request information pursuant to these rules for NMS Securities or OTC Equity Securities for time periods after CAT reporting has begun if the appropriate accuracy and reliability thresholds are achieved, including an acceptable accuracy rate for customer and account information. However, these rules cannot be completely eliminated immediately upon the CAT achieving the appropriate thresholds because Nasdaq Regulation staff may still need to request information pursuant to these rules for trading activity occurring before a member was reporting to the CAT.
The proposed rule change proposes to add new Supplementary Material to Rule 8211, Chapter VII, Section VII and Chapter IX, Section 4 to clarify how Nasdaq will request data under these rules after members are reporting to the CAT. Specifically, the proposed Supplementary Material to these rules will note that Nasdaq Regulation will request information under these rules only if the information is not available in the CAT because, for example, the transactions in question occurred before the firm was reporting information to the CAT or involved securities that are not reportable to the CAT. In essence, under the new Supplementary Material, Nasdaq Regulation will make requests under these rules if and only if the information is not otherwise available through the CAT.
The CAT NMS Plan states, however, that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.
Nasdaq believes CAT Data should not be used in place of EBS data until all Participants and Industry Members are reporting data to CAT. In this way, Nasdaq will continue to have access to the necessary data to perform its regulatory duties.
The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether “the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
The CAT NMS Plan requires that this rule filing address “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
Nasdaq believes that, before CAT Data may be used in place of EBS data, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).
In addition to these minimum error rates before using CAT Data instead of EBS data, Nasdaq believes that during the minimum 180-day period during which the thresholds are calculated, Nasdaq's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow Nasdaq to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. Nasdaq believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
The options exchanges utilize COATS to collect and review data regarding options orders, quotes and transactions. The Participants have provided COATS technical specifications to the Plan Processor for the CAT for use in developing the Technical Specifications for the CAT, and the Participants are working with the Plan Processor to include the necessary COATS data elements in the CAT Technical Specifications. Accordingly, although the Technical Specifications for the CAT have not yet been finalized, Nasdaq and the other options exchanges propose to eliminate COATS in accordance with the proposed timeline discussed below.
Nasdaq adopted Chapter V, Section 7 to implement certain reporting requirements related to COATS, and therefore proposes to eliminate the information reporting requirements of that rule and replacing those requirements with a requirement that members report information pursuant to this rule as required by the Exchange's CAT compliance rule, Chapter IX, Section 8.
The CAT NMS Plan states that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.
Nasdaq believes COATS should not be retired until all Participants and Industry Members that report data to COATS are reporting comparable data to the CAT. In this way, Nasdaq will continue to have access to the necessary data to perform its regulatory duties.
The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether “the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
The CAT NMS Plan requires that this rule filing address “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
Nasdaq and the other options exchanges believe that, before COATS may be retired, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).
In addition to these minimum error rates before COATS can be retired, Nasdaq believes that during the minimum 180-day period during which the thresholds are calculated, Nasdaq's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow Nasdaq to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. Nasdaq believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
If the Commission approves the proposed rule change, Nasdaq will
The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
Nasdaq believes that the proposed rule change fulfills the obligation in the CAT NMS Plan for Nasdaq to submit a proposed rule change to eliminate or modify duplicative rules. In approving the Plan, the SEC noted that the Plan “is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.”
Moreover, the purpose of the proposed rule change is to eliminate rules that require the submission of duplicative data to the exchange. The elimination of such duplicative requirements will reduce unnecessary costs and other compliance burdens for Nasdaq and its members, and therefore, will enhance the efficiency of the securities markets. Furthermore, Nasdaq believes that the approach set forth in the proposed rule change strikes the appropriate balance between ensuring that Nasdaq is able to continue to fulfill its statutory obligation to protect investors and the public interest by ensuring its surveillance of market activity remains accurate and effective while also establishing a reasonable timeframe for elimination or modification of its rules that will be rendered duplicative after implementation of the CAT.
Section 6(b)(8) of the Exchange Act
Although written comments on the proposed rule change were not solicited, two commenters, the Financial Information Forum (“FIF”) and the Securities Industry and Financial Markets Association (“SIFMA”), submitted letters to the Participants regarding the retirement of systems related to the CAT.
As discussed above, Nasdaq agrees with the commenters that the OATS, EBS and COATS reporting requirements should be replaced by the CAT reporting requirements as soon as accurate and reliable CAT Data is available. To this end, Nasdaq anticipates that the CAT will be designed to collect the data necessary to permit the retirement of OATS, EBS and COATS. As discussed above, Nasdaq disagrees with the recommendation to provide individual exemptions to those CAT Reporters who obtain satisfactory data reporting quality; however, Nasdaq supports amendments to the CAT NMS Plan that would accelerate reporting for Small Industry Members that are currently reporting to OATS to facilitate the retirement of that system.
Within 45 days of the date of publication of this notice in the
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
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-NASDAQ-2017-055 and should be submitted on or before
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to amend various rules in connection with a system migration to Nasdaq INET technology.
The text of the proposed rule change is available on the Exchange's Web site at
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.
The purpose of this rule change is to amend certain rules to reflect the MRX technology migration to a Nasdaq, Inc. (“Nasdaq”) supported architecture. INET is the proprietary core technology utilized across Nasdaq's global markets and utilized on The NASDAQ Options Market LLC (“NOM”), NASDAQ PHLX LLC (“Phlx”) and NASDAQ BX, Inc. (“BX”) (collectively, “Nasdaq Exchanges”). The migration of MRX to the Nasdaq INET architecture would result in higher performance, scalability, and more robust architecture. With this system migration, the Exchange intends to adopt certain trading functionality currently utilized at Nasdaq Exchanges. The functionality being adopted is described in this filing.
The Exchange is also separately filing
The Exchange intends to begin implementation of the proposed rule changes in Q3 2017. The migration will be on a symbol by symbol basis, and the Exchange will issue an alert to members in the form of an Options Trader Alert to provide notification of the symbols that will migrate and the relevant dates.
With the re-platform, the Exchange will now be built on the Nasdaq INET architecture, which allows certain trading system functionality to be performed in parallel. The Exchange believes that this architecture change will improve the member experience by reducing overall latency compared to the current MRX system because of the manner in which the system is segregated into component parts to handle processing.
The Exchange proposes to amend MRX Rule 702 entitled “Trading Halts.” Specifically, the Exchange proposes to amend Rule 702(a)(2) to note that during a halt, the Exchange will maintain existing orders on the book, but not existing quotes prior to the halt, accept orders and quotes, and process cancels and modifications for quotes and orders, except that existing quotes are cancelled. Today, MRX maintains existing orders and quotes during a trading halt. With respect to cancels and modifications, this behavior will not change. MRX does not have a quote
The Exchange proposes to conform the treatment of quotes and orders on MRX to Phlx Rule 1047(f) in conjunction with the replatform of MRX. The Exchange desires to handle halts in a similar manner as Phlx.
The Exchange also proposes to add new MRX Rule 702(d) to replace rule text currently contained in MRX Rule 703A entitled “Trading During Limit Up-Limit Down States in Underlying Securities.” Proposed MRX Rule 702(d) is similar to language currently in Phlx Rule 1047(d), which provides for Exchange handling due to extraordinary market volatility. Currently MRX Rule 703A(a) and (b) provides modified order handling procedures when a security underlying an options class traded on the Exchange enters a Limit State or Straddle State under the Plan to Address Extraordinary Market Volatility (the “Plan”).
With the re-platform, the Exchange will adopt opening limitation, Market Order and Stop Order handling consistent with handling today on Phlx.
These amendments differ in certain respects from the manner in which MRX operates today during a Limit State or Straddle State. The current MRX rule does not address the opening. The Exchange proposes to adopt rule text to provide for how the Exchange shall treat the Opening Process.
In addition, MRX currently cancels Market Orders pending in the system upon initiation of a Limit or Straddle State. Under the proposal to adopt the Phlx rule and implementation of the Limit Up-Limit Down procedures, Market Orders pending in the system will continue to be processed regardless of the Limit or Straddle State. The Exchange believes this is a reasonable handling of Market Orders in the system since these orders are only pending in the system if they are exposed at the NBBO pursuant to Supplementary Material .02 to Rule 1901. If at the end of the exposure period the affected underlying is in a Limit or Straddle State, the Market Order will be cancelled with no execution occurring. If at the end of the exposure period the underlying is no longer in a Limit or Straddle State, the Market Order will be handled under the normal operation of the rules.
Lastly, MRX does not currently elect Stop Orders that are pending in the system during a Limit or Straddle State. Under the proposal, and in-line with the Phlx implementation, Stop Orders that are pending in the system during a Limit or Straddle State will be elected, if conditions for such election are met, however because they become Market Orders will be cancelled back to the Member with a reason for such rejection.
While the implementation of Market and Stop Order handling varies from MRX today, both the current and proposed Rule provide for protections from erroneous executions in a highly volatile period.
The Exchange proposes to amend various rules to add detail to MRX rules to account for the impact of a trading halt on the Exchange's auction mechanisms. The Exchange proposes to memorialize within MRX Rule 723, entitled “Price Improvement Mechanism for Crossing Transactions” the manner in which a trading halt will impact an order entered into PIM once it is migrated to the INET architecture.
Today, if a trading halt is initiated after an order is entered into the Price Improvement Mechanism (“PIM”) on MRX, such auction is terminated and eligible interest is executed. The Exchange proposes to amend today's current behavior and instead terminate the auction and not execute eligible interest when a trading halt occurs. In the event of a trading halt, terminating the auction and not executing eligible interest will provide certainty to participants in regard to how their interest will be handled. Memorializing the manner in which the system will handle orders entered into PIM during a trading halt will provide transparency for the benefit of members and investors.
The Exchange proposes an amendment to MRX Rule 716, entitled “Block Trades” to memorialize that if a trading halt is initiated after an order is entered into the Block Order Mechanism, Facilitation Mechanism, or Solicited Order Mechanism, such auction will also be automatically terminated without execution. This is the current behavior today on MRX and will not be changing.
As discussed above, Phlx Rule 1047(c) provides that in the event the Exchange halts trading, all trading in the affected option shall be halted. This is interpreted to restrict executions after a halt unless there is a specific rule specifying that such trades should take place. The Exchange is proposing to add more specificity into the relevant rules. With respect to Block Order Mechanism, Facilitation Mechanism, or Solicited Order Mechanism, the Exchange notes that the current behavior is consistent with Phlx Rule 1047(c) generally, where all trading in the affected option shall be halted.
The Exchange proposes to amend MRX Rule 711, entitled “Acceptance of Quotes and Orders” to adopt a new mandatory risk protection entitled Market Order Spread Protection. MRX does not have a similar feature today. This mandatory feature is currently offered on NOM to protect Market Orders from being executed in very wide markets.
Pursuant to proposed MRX Rule 711(c), if the NBBO is wider than a preset threshold at the time a Market Order is received, the order will be rejected. For example, if the Market Order Spread Protection is set to $20.00, and a Market Order to buy is received while the NBBO is $1.00-$50.00, such Market Order will be rejected. The proposed feature would assist with the maintenance of fair and orderly markets by mitigating the risks associated with errors resulting in executions at prices that are away from the Best Bid or Offer and potentially erroneous. Further the proposal protects investors from potentially receiving executions away from the prevailing prices at any given time. The Exchange proposes this feature to avoid a series of improperly priced aggressive orders transacting in the Order Book.
Today, the NOM threshold is set at $5. MRX will initially set the threshold to $5. Similar to NOM, the Exchange will notify Members of the threshold with a notice, and, thereafter, Members will be notified of any subsequent changes to the threshold. NOM set the differential at $5 to match the bid/ask differential permitted for quotes on the Exchange.
Finally, the Market Order Spread Protection will be the same for all options traded on the Exchange, and is applicable to all Members that submit Market Orders.
The Exchange proposes to amend Rule 714, entitled “Automatic Execution of Orders,” at MRX Rule 714(b)(1) to remove the current Price Level Protection rule and adopt Phlx's Acceptable Trade Range.
MRX proposes to replace the current Price Level Protection with Phlx's Acceptable Trade Range.
The system will calculate an Acceptable Trade Range to limit the range of prices at which an order or quote will be allowed to execute. To bolster the normal resilience and market behavior that persistently produces robust reference prices, MRX is proposing to create a level of protection that prevents the market from moving beyond set thresholds. The Acceptable Trade Range is calculated (upon receipt of a new order or quote) by taking the reference price, plus or minus a value to be determined by the Exchange (
For example, in a thinly traded option:
If MRX receives a routable market order to buy 80 contracts, the system will respond as described below:
After these executions, there are no other known valid away exchange quotes. The National Best Bid/Offer (“NBBO”) is therefore comprised of the remaining interest on the MRX book, specifically 10 contracts at $1.40 and 10 contracts at $5.00. In the absence of an Acceptable Trade Range mechanism, the order would execute against the remaining interest at $1.40 and $5.00, resulting in potential harm to investors.
MRX will set the parameters of the mechanism at levels that will ensure that it is triggered quite infrequently. Importantly, the Acceptable Trade Range is neutral with respect to away markets, an order may route to other destinations to access liquidity priced within the Acceptable Trade Range provided the order is designated as routable.
The options premium will be the dominant factor in determining the Acceptable Trade Range. Generally, options with lower premiums tend to be more liquid and have tighter bid/ask spreads; options with higher premiums have wider spreads and less liquidity. Accordingly, a table consisting of several steps based on the premium of the option will be used to determine how far the market for a given option will be allowed to move. This table or tables would be listed on the Exchange Web site and any periodic updates to the table would be announced via an Options Trader Alert.
For example, looking at some SPY May 2013 Call options on May 1st of 2013:
The deep in-the-money calls (May 105 calls) have a wider spread ($54.10 − $54.26 = $0.16) compared to a spread of $0.01 for the at-the-money calls (May
To consider another example, the May 2013 ORCL put options on May 1st of 2013:
Even though ORCL has a much lower share price than SPY, and is a different type of security (it is a common stock of a technology company whereas SPY is an ETF based on the S&P 500 Index), the pattern is the same. The option with the lower premium has a very narrow spread of $0.01 with significant size displayed whereas the higher premium option has a wide spread ($0.15) and less size displayed.
The Acceptable Trade Range settings will be tied to the option premium. However, other factors will be considered when determining the exact settings. For example, acceptable ranges may change if market-wide volatility is as high as it was during the financial crisis in 2008 and 2009, or if overall liquidity is low based on historical trends. These different market conditions may present the need to adjust the threshold amounts from time to time to ensure a well-functioning market. Without adjustments, the market may become too constrained or conversely, prone to wide price swings. As stated above, the Exchange would publish the Acceptable Trade Range table or tables on the Exchange Web site. The Exchange does not foresee updating the table(s) often or intraday, although the exchange may determine to do so in extreme circumstances. The Exchange will provide sufficient advanced notice of changes to the Acceptable Trade Range table, generally the prior day, to its membership via an Exchange alert.
The Acceptable Trade Range settings would generally be the same across all options traded on MRX, although MRX proposes to maintain flexibility to set them separately based on characteristics of the underlying security. For instance, Google is a stock with a high share price ($824.57 closing price on April 30, 2013). Google options therefore may require special settings due to the risk involved in actively quoting options on such a high-priced stock. Option spreads on Google are wider and the size available at the best bid and offer is smaller. Google could potentially need a wider threshold setting compared to other lower-priced stocks. There are other options that fit into this category (
The Phlx rule contains language that references a posting period.
Today, PMMs are responsible for handling Priority Customer orders that are not automatically executed pursuant to MRX Rule 714(b)(1),
In addition to the obligations contained in this Rule for market makers generally, for options classes to which a market maker is the appointed Primary Market Maker, it shall have the responsibility to: (1) As soon as practical, address Priority Customer Orders that are not automatically executed pursuant to Rule 714(b)(1) in a manner consistent with its obligations under paragraph (b) of this Rule by either (i) executing all or a portion of the order at a price that at least matches the NBBO and that improves upon the Exchange's best bid (in the case of a sell order) or the Exchange's best offer (in the case of a buy order); or (ii) releasing all or a portion of the order for execution against bids and offers on the Exchange. (2) Initiate trading in each series pursuant to Rule 701.
As described in more detail in the sections above, with the re-platform to Nasdaq technology, the Exchange is adopting Acceptable Trade Range and opening rotation functionality currently offered on NOM and Phlx, which do not contain similar requirements for the PMM. The Exchange therefore proposes to eliminate the PMM order handling and opening obligations in Rule 803(c).
The Exchange believes that the elimination of the PMM obligation to initiate the opening rotation in this rule is appropriate because the proposed
The Exchange also proposes to amend MRX Supplementary Material .03 to Rule 803 to eliminate its Back-Up Primary Market Maker program. Today, any MRX Member that is approved to act in the capacity of a Primary Market Maker may voluntarily act as a “Back-Up Primary Market Maker” in options series in which it is quoting as a Competitive Market Maker. A Back-Up Primary Market Maker assumes all of the responsibilities and privileges of a Primary Market Maker under the Exchange's rules with respect to any series in which the appointed Primary Market Maker fails to have a quote in the system except that a Back-Up Primary Market Maker's quoting obligations are the same as the quoting obligations for Competitive Market Makers as described in MRX Rule 804(e)(2)(iii) and .02 of Supplementary Material to Rule 804.
With the re-platform, a Back-Up Primary Market Maker is no longer necessary since the order handling obligations present on MRX today are not going to be present in the new system. Furthermore, the proposed Opening Process,
The Exchange proposes to amend MRX Rule 804, entitled “Market Maker Quotations” to establish default parameters for certain risk functionality. The Exchange offers a risk protection mechanism for market maker quotes that removes a member's quotes in an options class if a specified number of curtailment events occur during a set time period (“Market Maker Speed Bump”). In addition, the Exchange offers a market-wide risk protection that removes a market maker's quotes across all classes if a number of curtailment events occur (“Market-Wide Speed Bump”). MRX Rule 804(g) currently requires that market makers set curtailment parameters for both the Market Maker Speed Bump and the Market-Wide Speed Bump. Today, if a market maker does not set these parameters their quotes are rejected by the trading system for each of the speed bumps mentioned herein.
With the re-platform, the Exchange has determined to provide default curtailment parameters to assist market makers when they do not enter their own parameters into the system. The default parameters will be determined by the Exchange and announced to members. Rather than rejecting quotes, the default parameters would be instituted. The default parameters are important because market makers at MRX have quoting obligations as specified in MRX Rule 804. When a market maker's quotes are removed from the system, the time does not count toward the continuous quoting obligations. The Exchange believes that allowing for default settings would cause quotes not to be rejected and would assist market makers in meeting their quoting obligations because they would not have their quotes removed from the market. Today, Phlx indicates default parameters for its detection of loss of communication settings.
The Exchange proposes to amend the MRX Supplementary Material at .03 to Rule 804, entitled “Market Maker Quotations” to adopt an Anti-Internalization rule. Today, MRX's functionality prevents Immediate-or-Cancel (“IOC”)
Today, Phlx provides anti-internalization (“AIQ”) functionality to Specialists and Registered Options Traders (“collectively market makers”). Quotes and orders entered by Phlx market makers using the same badge
The Exchange proposes to adopt a similar rule that provides that quotes and orders entered by Market Makers using the same member identifier will not be executed against quotes and orders entered on the opposite side of the market by the same market maker using the same member identifier. In such a case, the system will cancel the resting quote or order back to the entering party prior to execution. This functionality shall not apply in any auction. AIQ is difficult to apply during auctions, and there is limited benefit in doing so. There is limited benefit because, generally speaking, auctions do not raise the same policy concerns for wash sales and ERISA
This functionality does not relieve or otherwise modify the duty of best execution owed to orders received from public customers. Market Makers generally do not display public customer orders in market making quotations, opting instead to enter public customer orders using separate identifiers. In the event that a Market Maker opts to include a public customer order within a market making quotation, the Market Maker must take appropriate steps to ensure that public customer orders that do not execute due to anti-internalization functionality ultimately receive the same execution price (or better) they would have originally obtained if execution of the order was not inhibited by the functionality.
This Anti-Internalization functionality can assist Market Makers in reducing trading costs from unwanted executions potentially resulting from the interaction of executable buy and sell trading interest from the same firm when performing the same market making function.
The Exchange proposes to amend MRX Rule 715, entitled “Types of Orders” at 715(q) to remove minimum quantity orders. Today, the Exchange allows members to enter minimum quantity orders, which is an order type that is available for partial execution, but each partial execution must be for a specified number of contracts or greater. If the balance of the order after one or more partial executions is less than the minimum, such balance is treated as All-Or-None. Like All-Or-None orders, minimum quantity orders are contingency orders that are not displayed in the Exchange's best bid or offer. However, the Exchange disseminates to market participants an indication that a minimum quantity order has been entered. The Exchange has found that its members have not adopted this feature and therefore proposes to remove this functionality.
The Exchange is proposing to amend Supplementary Material .02 to MRX Rule 715 to memorialize the manner in which the system will handle cancel and replace orders in connection with the Exchange's technology migration to INET.
By way of background with respect to cancel and replace orders, a Member has the option of either sending in a cancel order and then separately sending in a new order which serves as a replacement of the original order (two separate messages) or sending a single cancel and replace order in one message (“Cancel and Replace Order”). Sending in a cancel order and then separately sending in a new order will not retain the priority of the original order on the current MRX system and on the INET system.
Today, MRX does not treat all Cancel and Replace Orders as new orders. For example, a Cancel and Replace Order which reduced the size of the original order from 600 to 300 contracts would not be treated as a new order. A new order would be subject to price or other reasonability checks,
The Exchange proposes to define a Cancel and Replace Order as a single message for the immediate cancellation of a previously received order and the replacement of that order with a new order. If the previously placed order is already partially filled or in its entirety,
The Exchange represents that conducting price or other reasonability checks for all Cancel and Replace Orders will validate orders against current market conditions prior to proceeding with the request to modify the order. The Exchange further believes that memorializing Cancel and Replace Order handling will add transparency to the Exchange's rules and reduce the potential for investor confusion. Other exchanges with a similar order type permit an order to retain priority if only
The Exchange proposes to amend Rule 715(c) to provide that an All-Or-None Order may only be entered into the system with a time-in-force designation of Immediate-Or-Cancel order in connection with the Exchange's technology migration to INET.
An All-Or-None Order is a limit or market order that is to be executed in its entirety or not at all. Today, an All-Or-None Order may be designated as a market or limit order with any time-in-force designation. The Exchange proposes to limit All-Or-None Orders to only be accepted with a time-in-force designation of Immediate-Or-Cancel. An Immediate-Or-Cancel Order is a limit order that is to be executed in whole or in part upon receipt. Any portion not so executed is to be treated as cancelled.
The Exchange also proposes to amend Supplementary Material .02 to Rule 713 to make clear that All-Or-None Orders will only be accepted with a time-in-force designation of Immediate-Or-Cancel and, therefore, would not persist in the Order Book. The Exchange also proposes to amend Supplementary Material .04 to Rule 717 to reserve this section as All-Or-None Orders
The Exchange proposes to delay the implementation of Directed Order
The Exchange proposes to amend the rule text in Rule 811 (Directed Orders) to note that this functionality will not be available as of a certain date in the third quarter of 2017 to be announced in a notice. The Exchange will recommence this functionality on MRX within one year from the date of filing of this rule change to be announced in a separate notice.
The Exchange intends to begin implementation of the functionality for Directed Orders after Q3 2017. The migration will also be on a symbol by symbol basis, and the Exchange will issue an alert to members in the form of an Options Trader Alert to provide notification of the symbols that will migrate and the relevant dates. The Exchange will introduce Directed Orders on MRX within one year from the date of this filing, otherwise the Exchange will file a rule proposal with the Commission to remove these rules.
The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
The Exchange's proposal to amend MRX Rule 702 concerning Trading Halts to specifically note that during a halt the Exchange will maintain existing orders on the book but not existing quotes is consistent with the Act because it provides market participants with clarity as to the manner in which interest will be handled by the system. During a trading halt, the market may move and create risk to market participants with respect to resting interest. The Exchange believes that cancelling existing quotes protects investors and the public interest by removing potentially stale quotes during the halt process.
The Exchange's proposal to amend its rules on order handling during Limit up-Limit Down states and trading halts is consistent with the Act because it will harmonize the way the Exchange treats orders during a Limit State or Straddle State in the equity market, or a trading halt in the option, with how those orders are handled on other Nasdaq Exchanges. The proposed rule text should provide certainty about how options orders and trades will be handled during periods of extraordinary volatility in the underlying security. Specifically, under the proposal, market participants will be able to continue to trade options overlying securities that are in a Limit State or Straddle State, while addressing specific order types that are subject to added risks during such periods. The Exchange believes that the rejection of options Market Orders (including elected Stop Orders) should help to prevent executions that might occur at prices that have not been reliably formed, which should, in turn, protect, in particular, retail investors from executions of un-priced orders during times of significant volatility. The Exchange believes that harmonizing these rules will provide a better experience to members that trade on multiple markets operated by Nasdaq, Inc.
The Exchange's proposal to amend MRX Rule 702 concerning Trading Halts to specifically note that during a halt the Exchange will maintain existing orders on the book but not existing quotes is consistent with the Act because it provides market participants with clarity as to the manner in which interest will be handled by the system. During a trading halt, the market may move and create risk to market participants with respect to resting interest. The Exchange believes that cancelling existing quotes protects investors and the public interest by removing potentially stale quotes during the halt process.
The Exchange's proposal to add new MRX Rule 702(d) to replace rule text currently contained in MRX Rule 703A entitled “Trading During Limit Up-Limit Down States in Underlying Securities” is consistent with the Act because the proposed rules provide for protections from erroneous executions in a highly volatile period. The proposed rule text in MRX Rule 702(d) is similar to language currently in Phlx Rule 1047(d), which provides for Exchange handling due to extraordinary market volatility. As noted within this proposal, the Exchange will adopt opening limitation, Market Order and
Lastly, MRX does not currently elect Stop Orders that are pending in the system during a Limit or Straddle State. Under the proposal, and in-line with the Phlx implementation, Stop Orders that are pending in the system during a Limit or Straddle State will be elected, if conditions for such election are met, and, because they become Market Orders, will be cancelled back to the Member with a reason for such rejection. The Exchange believes that this is consistent with the Act because it affords the appropriate protections to an elected Stop Order once it becomes a Market Order after election. The Exchange believes that this approach provides the market participant with the intended result.
The Exchange's proposal to amend various rules to add detail to MRX rules to account for the impact of a trading halt on the Exchange's auction mechanisms is consistent with the Act for the reasons which follow. The Exchange's proposal to amend today's current behavior and instead terminate the PIM auction and not execute eligible interest when a trading halt occurs is consistent with the Act because during a trading halt, the market may move and create risk to market participants with respect to resting interest. The Exchange believes that terminating the PIM auction protects investors and the public interest by providing certainty to participants in regard to how their interest will be handled. Memorializing the manner in which the system will handle orders entered into PIM during a trading halt will provide transparency for the benefit of members and investors.
The Exchange's proposal to amend MRX Rule 716, entitled “Block Trades” to memorialize that if a trading halt is initiated after an order is entered into the Block Order Mechanism, Facilitation Mechanism, or Solicited Order Mechanism, such auction will also be automatically terminated without execution is consistent with the Act because in the event of a trading halt, terminating these auction mechanisms and not executing eligible interest will provide certainty to participants in regard to how their interest will be handled. Memorializing the manner in which the system will handle orders during a trading halt will provide transparency for the benefit of members and investors.
The Exchange's proposal to amend MRX Rule 711 to adopt a mandatory risk protection entitled Market Order Spread Protection is consistent with the Act because it provides a protection for Market Orders that may encourage price continuity, which should, in turn, protect investors and the public interest by reducing executions occurring at dislocated prices. Further, the Exchange believes that this rule proposal will mitigate risks to market participants.
The Exchange's proposal to amend MRX Rule 714 to remove the current Price Level Protection rule and adopt Phlx's Acceptable Trade Range is consistent with the Act and will 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 by making the Exchange's market more efficient, to the benefit of the investing public. Further, it should prevent the system from experiencing dramatic price swings by creating a level of protection that prevents the market from moving beyond set thresholds. The proposed rule change will reduce the negative impacts of sudden, unanticipated volatility in individual options, and serve to preserve an orderly market in a transparent and uniform manner, enhance the price-discovery process, increase overall market confidence, and promote fair and orderly markets and the protection of investors. Specifically, the Exchange believes that the NBBO is a fair representation of then-available prices and accordingly the proposal helps to avoid executions at prices that are significantly worse than the NBBO.
With respect to the posting information, which is described in the Phlx rule, but not contained in the proposed MRX rule, the Exchange believes that it is consistent with the Act to cancel unexecuted interest which is priced through an Acceptable Trade Range. Today, the Exchange does not have an iterative process wherein the Exchange will attempt to execute unexecuted balances for a period of time while that interest is automatically re-priced on the order book. Phlx has this type of functionality for Acceptable Trade Range, while the Exchange does not re-price interest on the order book. The Exchange transparently describes the cancellation of the interest within its rules.
The Exchange's proposal to eliminate the PMMs order handling and opening obligations is consistent with the Act because PMMs will no longer have these obligations due to the introduction of Acceptable Trade Range and opening rotation functionality that is offered today on NOM and Phlx. Because the PMM will no longer have these obligations, the Exchange believes that it is appropriate to remove these rules.
The Exchange's proposal to remove certain responsibilities of Primary Market Makers with respect to Back-Up Primary Market Maker assignments is consistent with the Act because the Exchange believes this function is not necessary. Today, in addition to market making obligations, the Primary Market Maker has certain order handling and other obligations as prescribed by Exchange Rules. Specifically, the obligations of a Primary Market Maker include the initiation of a trading rotation pursuant to MRX Rule 701, quoting and other obligations pursuant to MRX Rules 803 and 804, and financial requirements pursuant to MRX Rule 809. The Exchange is proposing to amend the obligations of a PMM only with regard to the initiation of a trading rotation pursuant to MRX Rule 701. The quoting and financial requirements rules shall remain the same. With the re-platform, a Back-Up Primary Market Maker is no longer necessary since the order handling obligations present on MRX today are not going to be present
In addition, the Exchange does not believe there is an interest among market participants for the back-up assignment.
The Exchange's proposal to amend MRX Rule 804(g) to introduce default curtailment settings for the Market Maker Speed Bump and Market-Wide Speed Bump is consistent with the Act as it will allow market makers to use Exchange set default values for these risk protections. Today, these market makers would have their quotes rejected if they fail to enter the required curtailment parameters. The default settings provide an alternative for market makers that have not entered their curtailment settings. Default settings will be announced to members who will have the opportunity to avoid the defaults by entering their own curtailment settings as required under the rule.
The Exchange's proposal to amend the MRX Supplementary Material at .03 to Rule 804 to add Anti-Internalization is consistent with the Act because it is designed to assist market makers in reducing trading costs from unwanted executions potentially resulting from the interaction of executable buy and sell trading interest from the same firm when performing the same market making function.
Further, it is consistent with the Act to not apply this functionality in any auction because AIQ is difficult to apply during auctions, and there is limited benefit in doing so. There is limited benefit because, generally speaking, auctions do not raise the same policy concerns for wash sales and ERISA
The Exchange believes that removing minimum quantity orders would remove impediments to and perfect the mechanism of a free and open market and a national market system by simplifying functionality available on the Exchange and reducing complexity of its order types.
The Exchange believes that delaying the implementation of the Directed Order functionality on MRX is consistent with the Act because the Exchange desires to rollout this functionality at a later date to allow additional time to rebuild this technology on the new platform. The Exchange is staging the replatform to provide maximum benefit to its Members while also ensuring a successful rollout. This delay will provide the Exchange additional time to implement this functionality, which is not being amended. Members have been given adequate notice of the implementation dates. The Exchange will continue to provide notifications to Members to ensure clarity about the delay of implementation of this functionality. The Exchange will note the applicable dates within the rule text.
With respect to Cancel and Replace Orders, the Exchange believes that it is consistent with the Act to treat such orders as new orders which will be subject to price or other reasonability checks. The Exchange believes that conducting price or other reasonability checks for all Cancel and Replace Orders will protect investors and the public interest by validating the order against the current market conditions prior to proceeding with the request to modify the order. The manner in which MRX treats priority with respect to Cancel and Replace Orders is not changing. The MRX system currently assigns a new priority to the order when the price is changed, size is increased or the size of a reserve order is changed. Hence, the priority of the original order would continue to not be retained in the same manner with respect to the original order. The Exchange believes that allowing Cancel and Replace Orders, where the size is reduced, to retain the priority of the original order is consistent with the manner in which the Exchange treats partially executed orders, which similarly apply the priority of the executed portion of the order to the remaining portion of the order. Other exchanges today permit an order to retain priority if only the size was decremented.
The Exchange believes that it is consistent with the Act to treat Reserve Orders differently than other order types by giving these orders a new priority if size is amended in any way, including a decrement in size, with a Cancel and Replace Order because unlike other order types, Reserve Orders have both a displayed an [sic] non-displayed portion. The Exchange believes that any change to the original order of a Reserve Order should be treated as a new order because the size of a Reserve Order is specifically defined as part of that order type. A Member must specify the displayed and total volume, a portion of which is non-displayed, when a Reserve Order is entered into the system. Treating this order type as a new order if size is amended is consistent with the Act because the terms of the original order of a Reserve Order would modify the total size of the order, including potentially displayed and non-displayed portions which the Exchange believes should result in a new order as it changes a material portion of the order.
The Exchange believes that memorializing the Cancel and Replace Order handling will add transparency and specificity to the Rules thereby protecting investors and the public interest by reducing the potential for investor confusion.
The Exchange believes that the proposal with respect to All-Or-None Orders is appropriate and reasonable, because the time-in-force designation of Immediate-Or-Cancel will offer Members certainty with respect to their order handling. With this proposal, an All-Or-None Order will either execute immediately or be cancelled back to the Member. All-Or-None Orders are contingency orders that have no priority on the Order Book. These orders would receive an execution after all other trading interest at the same price has been exhausted. This proposal would remove uncertainty with respect to the manner in which these orders would be handled in the Order Book by cancelling back an All-Or-None Order if it cannot be immediately executed in its entirety. Today, the NASDAQ Options Market, LLC (“NOM”) only permits All-Or-None Orders to be submitted with a time-in-
The Exchange notes that Members are aware of the Exchange's efforts to replatform to the INET technology. Members have been involved in testing the system and providing feedback to the Exchange throughout this migration process. Members were provided notice of this proposed change to the system. The Exchange intends to make clear the implementation of this functionality within its Rulebook.
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. As explained above, the Exchange is re-platforming it's trading system onto the Nasdaq INET architecture, and is making certain other changes to its trading functionality in connection with this migration. A majority of the functionality that is being added with the proposed rule change already exists on one or more Nasdaq Exchanges. As a result, the Exchange does not believe that the proposed rule change will impact the intense competition that exists in the options market. In fact, the Exchange believes that adopting this functionality on MRX will allow the Exchange to more effectively compete for order flow with other options markets.
The Exchange does not believe conducting price or other reasonability checks for all Cancel and Replace Orders imposes an undue burden on competition because all Cancel and Replace Orders will uniformly be subject to this additional protection based on the current market conditions. Permitting all market participants to reduce their exposure without penalty does not impose an undue burden [sic] competition, rather it promotes competition by allowing participants the ability to change their orders in a changing market, provided the order was not already filled. The Exchange believes that not permitting Reserve Orders to retain priority if size is amended does not create an undue burden on competition because all Members will be treated in a uniform manner with respect to Cancel and Replace Order handling.
The Exchange does not believe that the proposed rule change to All-or-None Orders will impact the intense competition that exists in the options market because the All-Or-None Order type, as proposed, will continue to offer Members a competitive alternative on MRX for submitting orders for execution.
Delaying the implementation of the Directed Order functionality will allow additional time to rebuild this technology on the new platform and provide maximum benefit to Members for a successful rollout. No Member will be able to utilize the Directed Order functionality with the delay. Members have been given adequate notice of the implementation dates.
No written comments were either solicited or received.
Within 45 days of the date of publication of this notice in the
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange filed a proposal to establish the fees for Industry Members related to the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”).
The text of the proposed rule change is available at the Exchange's Web site at
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements.
Bats BYX Exchange, Inc., Bats BZX Exchange, Inc., Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc. (“FINRA”), Investors' Exchange LLC, Miami International Securities Exchange, LLC, MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,
The following provides an executive summary of the CAT funding model approved by the Operating Committee, as well as Industry Members' rights and obligations related to the payment of CAT Fees calculated pursuant to the CAT funding model. A detailed description of the CAT funding model and the CAT Fees follows this executive summary.
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Article XI of the CAT NMS Plan requires the Operating Committee to approve the operating budget, including projected costs of developing and operating the CAT for the upcoming year. As set forth in Article XI of the CAT NMS Plan, the CAT NMS Plan requires a bifurcated funding model, where costs associated with building and operating the Central Repository would be borne by (1) Participants and Industry Members that are Execution Venues through fixed tier fees based on market share, and (2) Industry Members (other than Execution Venue ATSs) through fixed tier fees based on message traffic. In its order approving the CAT NMS Plan, the Commission determined that the proposed funding model was “reasonable”
More specifically, the Commission stated in approving the CAT NMS Plan that “[t]he Commission believes that the proposed funding model is reasonably designed to allocate the costs of the CAT between the Participants and Industry Members.”
The Commission believes that the proposed funding model reflects a reasonable exercise of the Participants' funding authority to recover the Participants' costs related to the CAT. The CAT is a regulatory facility jointly owned by the Participants and . . . the Exchange Act specifically permits the Participants to charge their members fees to fund their self-regulatory obligations. The Commission further believes that the proposed funding model is designed to impose fees reasonably related to the Participants' self-regulatory obligations because the fees would be directly associated with the costs of establishing and maintaining the CAT, and not unrelated SRO services.
Accordingly, the funding model imposes fees on both Participants and Industry Members.
In addition, as discussed in Appendix C of the CAT NMS Plan, the Operating Committee considered the advantages and disadvantages of a variety of alternative funding and cost allocation models before selecting the proposed model.
In addition, multiple reviews of current broker-dealer order and trading data submitted under existing reporting requirements showed a wide range in activity among broker-dealers, with a number of broker-dealers submitting fewer than 1,000 orders per month and other broker-dealers submitting millions and even billions of orders in the same period. Accordingly, the CAT NMS Plan includes a tiered approach to fees. The tiered approach helps ensure that fees are equitably allocated among similarly situated CAT Reporters and furthers the goal of lessening the impact on smaller firms.
Accordingly, the CAT NMS Plan contemplates that costs will be allocated across the CAT Reporters on a tiered basis to allocate costs to those CAT Reporters that contribute more to the costs of creating, implementing and maintaining the CAT.
The Commission also noted in approving the CAT NMS Plan that “[t]he Participants have offered a credible justification for using different criteria to charge Execution Venues (market share) and Industry Members (message traffic)”
The CAT NMS Plan provides that the Operating Committee will use different criteria to establish fees for Execution Venues and non-Execution Venues due to the fundamental differences between the two types of entities. In particular, the CAT NMS Plan provides that fees charged to CAT Reporters that are Execution Venues will be based on the level of market share and that costs charged to Industry Members (other than Execution Venue ATSs) will be based upon message traffic.
The CAT NMS Plan's funding model also is structured to avoid a “reduction in market quality.”
The CAT NMS Plan is structured to avoid potential conflicts raised by the Operating Committee determining fees applicable to its own members—the Participants. First, the Company will be operated on a “break-even” basis, with fees imposed to cover costs and an appropriate reserve. Any surpluses will be treated as an operational reserve to offset future fees and will not be distributed to the Participants as profits.
Finally, by adopting a CAT-specific fee, the Participants will be fully transparent regarding the costs of the CAT. Charging a general regulatory fee, which would be used to cover CAT costs as well as other regulatory costs, would be less transparent than the selected approach of charging a fee designated to cover CAT costs only.
A full description of the funding model is set forth below. This description includes the framework for the funding model as set forth in the CAT NMS Plan, as well as the details as to how the funding model will be applied in practice, including the number of fee tiers and the applicable fees for each tier. Bats notes that the complete funding model is described below, including those fees that are to be paid by the Participants. The proposed Consolidated Audit Trail Funding Fees, however, do not apply to the Participants; the proposed Consolidated Audit Trail Funding Fees
Section 11.2 of the CAT NMS Plan sets forth the principles that the Operating Committee applied in establishing the funding for the Company. The Operating Committee has considered these funding principles as well as the other funding requirements set forth in the CAT NMS Plan and in Rule 613 in developing the proposed funding model. The following are the funding principles in Section 11.2 of the CAT NMS Plan:
• To create transparent, predictable revenue streams for the Company that are aligned with the anticipated costs to build, operate and administer the CAT and other costs of the Company;
• To establish an allocation of the Company's related costs among Participants and Industry Members that is consistent with the Exchange Act, taking into account the timeline for implementation of the CAT and distinctions in the securities trading operations of Participants and Industry Members and their relative impact upon the Company's resources and operations;
• To establish a tiered fee structure in which the fees charged to: (i) CAT Reporters that are Execution Venues, including ATSs, are based upon the level of market share; (ii) Industry Members' non-ATS activities are based upon message traffic; (iii) the CAT Reporters with the most CAT-related activity (measured by market share and/or message traffic, as applicable) are generally comparable (where, for these comparability purposes, the tiered fee structure takes into consideration affiliations between or among CAT Reporters, whether Execution Venue and/or Industry Members);
• To provide for ease of billing and other administrative functions;
• To avoid any disincentives such as placing an inappropriate burden on competition and a reduction in market quality; and
• To build financial stability to support the Company as a going concern.
Under Section 11.3(b) of the CAT NMS Plan, the Operating Committee is required to establish fixed fees to be payable by Industry Members, based on message traffic generated by such Industry Member, with the Operating Committee establishing at least five and no more than nine tiers.
The CAT NMS Plan clarifies that the fixed fees payable by Industry Members pursuant to Section 11.3(b) shall, in addition to any other applicable message traffic, include message traffic generated by: (i) An ATS that does not execute orders that is sponsored by such Industry Member; and (ii) routing orders to and from any ATS sponsored by such Industry Member. In addition, the Industry Member fees will apply to Industry Members that act as routing broker-dealers for exchanges. The Industry Member fees will not be applicable, however, to an ATS that qualifies as an Execution Venue, as discussed in more detail in the section on Execution Venue tiering.
In accordance with Section 11.3(b), the Operating Committee approved a tiered fee structure for Industry Members (other than Execution Venue ATSs) as described in this section. In determining the tiers, the Operating Committee considered the funding principles set forth in Section 11.2 of the CAT NMS Plan, seeking to create funding tiers that take into account the relative impact on CAT System resources of different Industry Members, and that establish comparable fees among the CAT Reporters with the most Reportable Events. The Operating Committee has determined that establishing nine tiers results in the fairest allocation of fees, best distinguishing between Industry Members with differing levels of message traffic. Thus, each such Industry Member will be placed into one of nine tiers of fixed fees, based on “message traffic” for a defined period (as discussed below). A nine tier structure was selected to provide the widest range of levels for tiering Industry Members such that Industry Members submitting significantly less message traffic to the CAT would be adequately differentiated from Industry Members submitting substantially more message traffic. The Operating Committee considered historical message traffic generated by Industry Members across all exchanges and as submitted to FINRA's Order Audit Trail System (“OATS”), and considered the distribution of firms with similar levels of message traffic, grouping together firms with similar levels of message traffic. Based on this, the Operating Committee determined that nine tiers would best group firms with similar levels of message traffic, charging those firms with higher impact on the CAT more, while lowering the burden of Industry Members that have less CAT-related activity.
Each Industry Member (other than Execution Venue ATSs) will be ranked by message traffic and tiered by predefined Industry Member percentages (the “Industry Member Percentages”). The Operating Committee determined to use predefined percentages rather than fixed volume thresholds to allow the funding model to ensure that the total CAT fees collected recover the intended CAT costs regardless of changes in the total level of message traffic. To determine the fixed percentage of Industry Members in each tier, the Operating Committee analyzed historical message traffic generated by Industry Members across all exchanges and as submitted to OATS, and considered the distribution of firms with similar levels of message traffic, grouping together firms with similar levels of message traffic. Based on this, the Operating Committee identified tiers that would group firms with similar levels of message traffic, charging those firms with higher impact on the CAT more, while lowering the burden on Industry Members that have less CAT-related activity.
The percentage of costs recovered by each Industry Member tier will be determined by predefined percentage allocations (the “Industry Member Recovery Allocation”). In determining the fixed percentage allocation of costs recovered for each tier, the Operating Committee considered the impact of CAT Reporter message traffic on the CAT System as well as the distribution of total message volume across Industry Members while seeking to maintain comparable fees among the largest CAT Reporters. Accordingly, following the determination of the percentage of Industry Members in each tier, the Operating Committee identified the percentage of total market volume for each tier based on the historical message traffic upon which Industry Members had been initially ranked. Taking this into account along with the resulting percentage of total recovery, the percentage allocation of costs recovered for each tier were assigned, allocating higher percentages of recovery to tiers with higher levels of message traffic while avoiding any inappropriate burden on competition. Furthermore, by using percentages of Industry Members and costs recovered per tier, the Operating Committee sought to include stability and elasticity within the funding model, allowing the funding model to respond to changes in either the total number of Industry Members or the total level of message traffic.
The following chart illustrates the breakdown of nine Industry Member tiers across the monthly average of total
Based on the above analysis, the Operating Committee approved the following Industry Member Percentages and Recovery Allocations:
For the purposes of creating these tiers based on message traffic, the Operating Committee determined to define the term “message traffic” separately for the period before the commencement of CAT reporting and for the period after the start of CAT reporting. The different definition for message traffic is necessary as there will be no Reportable Events as defined in the Plan, prior to the commencement of CAT reporting. Accordingly, prior to the start of CAT reporting, “message traffic” will be comprised of historical equity and equity options orders, cancels and quotes provided by each exchange and FINRA over the previous three months.
After an Industry Member begins reporting to the CAT, “message traffic” will be calculated based on the Industry Member's Reportable Events reported to the CAT as will be defined in the Technical Specifications.
The Operating Committee has determined to calculate fee tiers every three months, on a calendar quarter basis, based on message traffic from the prior three months. Based on its analysis of historical data, the Operating Committee believes that calculating tiers based on three months of data will provide the best balance between reflecting changes in activity by Industry Members while still providing predictability in the tiering for Industry Members. Because fee tiers will be calculated based on message traffic from the prior three months, the Operating Committee will begin calculating message traffic based on an Industry Member's Reportable Events reported to the CAT once the Industry Member has been reporting to the CAT for three months. Prior to that, fee tiers will be calculated as discussed above with regard to the period prior to CAT reporting.
Under Section 11.3(a) of the CAT NMS Plan, the Operating Committee is required to establish fixed fees payable by Execution Venues. Section 1.1 of the CAT NMS Plan defines an Execution Venue as “a Participant or an alternative trading system (“ATS”) (as defined in Rule 300 of Regulation ATS) that operates pursuant to Rule 301 of Regulation ATS (excluding any such ATS that does not execute orders).”
The Participants determined that ATSs should be included within the definition of Execution Venue. Given the similarity between the activity of exchanges and ATSs, both of which meet the definition of an “exchange” as set forth in the Exchange Act and the fact that the similar trading models would have similar anticipated burdens on the CAT, the Participants determined that ATSs should be treated in the same manner as the exchanges for the purposes of determining the level of fees associated with the CAT.
Given the differences between Execution Venues that trade NMS Stocks and/or OTC Equity Securities and Execution Venues that trade Listed Options, Section 11.3(a) addresses Execution Venues that trade NMS Stocks and/or OTC Equity Securities separately from Execution Venues that trade Listed Options. Equity and Options Execution Venues are treated separately for two reasons. First, the differing quoting behavior of Equity and Options Execution Venues makes comparison of activity between Execution Venues difficult. Second, Execution Venue tiers are calculated based on market share of share volume, and it is therefore difficult to compare market share between asset classes (
Section 11.3(a)(i) of the CAT NMS Plan states that each Execution Venue that (i) executes transactions or, (ii) in the case of a national securities association, has trades reported by its
In accordance with Section 11.3(a)(i) of the CAT NMS Plan, the Operating Committee approved a tiered fee structure for Equity Execution Venues and Option Execution Venues. In determining the Equity Execution Venue Tiers, the Operating Committee considered the funding principles set forth in Section 11.2 of the CAT NMS Plan, seeking to create funding tiers that take into account the relative impact on system resources of different Equity Execution Venues, and that establish comparable fees among the CAT Reporters with the most Reportable Events. Each Equity Execution Venue will be placed into one of two tiers of fixed fees, based on the Execution Venue's NMS Stocks and OTC Equity Securities market share. In choosing two tiers, the Operating Committee performed an analysis similar to that discussed above with regard to the non-Execution Venue Industry Members to determine the number of tiers for Equity Execution Venues. The Operating Committee determined to establish two tiers for Equity Execution Venues, rather than a larger number of tiers as established for non-Execution Venue Industry Members, because the two tiers were sufficient to distinguish between the smaller number of Equity Execution Venues based on market share. Furthermore, the incorporation of additional Equity Execution Venue tiers would result in significantly higher fees for Tier 1 Equity Execution Venues and diminish comparability between Execution Venues and Industry Members.
Each Equity Execution Venue will be ranked by market share and tiered by predefined Execution Venue percentages, (the “Equity Execution Venue Percentages”). In determining the fixed percentage of Equity Execution Venues in each tier, the Operating Committee looked at historical market share of share volume for execution venues. Equities Execution Venue market share of share volume were sourced from market statistics made publicly-available by Bats Global Markets, Inc. (“Bats”). ATS market share of share volume was sourced from market statistics made publicly-available by FINRA. FINRA trading [sic] reporting facility (“TRF”) market share of share volume was sourced from market statistics made publicly available by Bats. As indicated by FINRA, ATSs accounted for 37.80% of the share volume across the TRFs during the recent tiering period. A 37.80/62.20 split was applied to the ATS and non-ATS breakdown of FINRA market share, with FINRA tiered based only on the non-ATS portion of its TRF market share of share volume.
Based on this, the Operating Committee considered the distribution of Execution Venues, and grouped together Execution Venues with similar levels of market share of share volume. In doing so, the Participants considered that, as previously noted, Execution Venues in many cases have similar levels of message traffic due to quoting activity, and determined that it was simpler and more appropriate to have fewer, rather than more, Execution Venue tiers to distinguish between Execution Venues.
The percentage of costs recovered by each Equity Execution Venue tier will be determined by predefined percentage allocations (the “Equity Execution Venue Recovery Allocation”). In determining the fixed percentage allocation of costs recovered for each tier, the Operating Committee considered the impact of CAT Reporter market share activity on the CAT System as well as the distribution of total market volume across Equity Execution Venues while seeking to maintain comparable fees among the largest CAT Reporters. Accordingly, following the determination of the percentage of Execution Venues in each tier, the Operating Committee identified the percentage of total market volume for each tier based on the historical market share upon which Execution Venues had been initially ranked. Taking this into account along with the resulting percentage of total recovery, the percentage allocation of costs recovered for each tier were assigned, allocating higher percentages of recovery to the tier with a higher level of market share while avoiding any inappropriate burden on competition. Furthermore, due to the similar levels of impact on the CAT System across Execution Venues, there is less variation in CAT Fees between the highest and lowest of tiers for Execution Venues. Furthermore, by using percentages of Equity Execution Venues and costs recovered per tier, the Operating Committee sought to include stability and elasticity within the funding model, allowing the funding model to respond to changes in either the total number of Equity Execution Venues or changes in market share.
Based on this analysis, the Operating Committee approved the following Equity Execution Venue Percentages and Recovery Allocations:
The following table exhibits the relative separation of market share of share volume between Tier 1 and Tier 2 Equity Execution Venues. In reviewing the table, note that while this division was referenced as a data point to help differentiate between Equity Execution Venue tiers, the proposed funding model is directly driven not by
Section 11.3(a)(ii) of the CAT NMS Plan states that each Execution Venue that executes transactions in Listed Options will pay a fixed fee depending on the Listed Options market share of that Execution Venue, with the Operating Committee establishing at least two and no more than five tiers of fixed fees, based on an Execution Venue's Listed Options market share. For these purposes, market share will be calculated by contract volume.
In accordance with Section 11.3(a)(ii) of the CAT NMS Plan, the Operating Committee approved a tiered fee structure for Options Execution Venues. In determining the tiers, the Operating Committee considered the funding principles set forth in Section 11.2 of the CAT NMS Plan, seeking to create funding tiers that take into account the relative impact on system resources of different Options Execution Venues, and that establish comparable fees among the CAT Reporters with the most Reportable Events. Each Options Execution Venue will be placed into one of two tiers of fixed fees, based on the Execution Venue's Listed Options market share. In choosing two tiers, the Operating Committee performed an analysis similar to that discussed above with regard to Industry Members (other than Execution Venue ATSs) to determine the number of tiers for Options Execution Venues. The Operating Committee determined to establish two tiers for Options Execution Venues, rather than a larger number of tiers as established for Industry Members (other than Execution Venue ATSs), because the two tiers were sufficient to distinguish between the smaller number of Options Execution Venues based on market share. Furthermore, due to the smaller number of Options Execution Venues, the incorporation of additional Options Execution Venue tiers would result in significantly higher fees for Tier 1 Options Execution Venues and reduce comparability between Execution Venues and Industry Members.
Each Options Execution Venue will be ranked by market share and tiered by predefined Execution Venue percentages, (the “Options Execution Venue Percentages”). To determine the fixed percentage of Options Execution Venues in each tier, the Operating Committee analyzed the historical and publicly available market share of Options Execution Venues to group Options Execution Venues with similar market shares across the tiers. Options Execution Venue market share of share volume were sourced from market statistics made publicly-available by Bats. The process for developing the Options Execution Venue Percentages was the same as discussed above with regard to Equity Execution Venues.
The percentage of costs recovered by each Options Execution Venue tier will be determined by predefined percentage allocations (the “Options Execution Venue Recovery Allocation”). In determining the fixed percentage allocation of costs recovered for each tier, the Operating Committee considered the impact of CAT Reporter market share activity on the CAT System as well as the distribution of total market volume across Options Execution Venues while seeking to maintain comparable fees among the largest CAT Reporters. Furthermore, by using percentages of Options Execution Venues and costs recovered per tier, the Operating Committee sought to include stability and elasticity within the funding model, allowing the funding model to respond to changes in either the total number of Options Execution Venues or changes in market share. The process for developing the Options Execution Venue Recovery Allocation was the same as discussed above with regard to Equity Execution Venues.
Based on this analysis, the Operating Committee approved the following Options Execution Venue Percentages and Recovery Allocations:
The following table exhibits the relative separation of market share of share volume between Tier 1 and Tier 2 Options Execution Venues. In reviewing the table, note that while this division was referenced as a data point to help differentiate between Options Execution Venue tiers, the proposed funding model is directly driven, not by market share thresholds, but rather by fixed percentages of Options Execution Venues across tiers to account for fluctuating levels of market share across time. Actual market share in any tier will vary based on the actual market activity in a given measurement period, as well as the number of Options Execution Venues included in the measurement period. The Options Execution Venue Percentages and Equity Execution Venue Recovery Allocation for each tier will remain fixed with each Options Execution Venue tier to be reassigned periodically, as described below in Section 3(a)(1)(I) [sic].
The Operating Committee determined that, prior to the start of CAT reporting, market share for Execution Venues
After the commencement of CAT reporting, market share for Execution Venues will be sourced from data reported to the CAT. Equity Execution Venue market share will be determined by calculating each Equity Execution Venue's proportion of the total volume of NMS Stock and OTC Equity shares reported by all Equity Execution Venues during the relevant time period. Similarly, market share for Options Execution Venues will be determined by calculating each Options Execution Venue's proportion of the total volume of Listed Options contracts reported by all Options Execution Venues during the relevant time period.
The Operating Committee has determined to calculate fee tiers for Execution Venues every three months based on market share from the prior three months. Based on its analysis of historical data, the Operating Committee believes calculating tiers based on three months of data will provide the best balance between reflecting changes in activity by Execution Venues while still providing predictability in the tiering for Execution Venues.
In addition to the funding principles discussed above, including comparability of fees, Section 11.1(c) of the CAT NMS Plan also requires expenses to be fairly and reasonably shared among the Participants and Industry Members. Accordingly, in developing the proposed fee schedules pursuant to the funding model, the Operating Committee calculated how the CAT costs would be allocated between Industry Members and Execution Venues, and how the portion of CAT costs allocated to Execution Venues would be allocated between Equity Execution Venues and Options Execution Venues. These determinations are described below.
In determining the cost allocation between Industry Members (other than Execution Venue ATSs) and Execution Venues, the Operating Committee analyzed a range of possible splits for revenue recovered from such Industry Members and Execution Venues. Based on this analysis, the Operating Committee determined that 75 percent of total costs recovered would be allocated to Industry Members (other than Execution Venue ATSs) and 25 percent would be allocated to Execution Venues. The Operating Committee determined that this 75/25 division maintained the greatest level of comparability across the funding model, keeping in view that comparability should consider affiliations among or between CAT Reporters (
Furthermore, the allocation of total CAT costs recovered recognizes the difference in the number of CAT Reporters that are Industry Members versus CAT Reporters that are Execution Venues. Specifically, the cost allocation takes into consideration that there are approximately 25 times more Industry Members expected to report to the CAT than Execution Venues (
The Operating Committee also analyzed how the portion of CAT costs allocated to Execution Venues would be allocated between Equity Execution Venues and Options Execution Venues. In considering this allocation of costs, the Operating Committee analyzed a range of alternative splits for revenue recovered between Equity and Options Execution Venues, including a 70/30, 67/33, 65/35, 50/50 and 25/75 split. Based on this analysis, the Operating Committee determined to allocate 75 percent of Execution Venue costs recovered to Equity Execution Venues and 25 percent to Options Execution Venues. The Operating Committee determined that a 75/25 division between Equity and Options Execution Venues maintained elasticity across the funding model as well the greatest level of fee equitability and comparability based on the current number of Equity and Options Execution Venues. For example, the allocation establishes fees for the larger Equity Execution Venues that are comparable to the larger Options Execution Venues, and fees for the smaller Equity Execution Venues that are comparable to the smaller Options Execution Venues. In addition to fee comparability between Equity Execution Venues and Options Execution Venues, the allocation also establishes equitability between larger (Tier 1) and smaller (Tier 2) Execution Venues based upon the level of market share. Furthermore, the allocation is intended to reflect the relative levels of current equity and options order events.
The Operating Committee determined to establish a CAT-specific fee to collectively recover the costs of building and operating the CAT. Accordingly, under the funding model, the sum of the CAT Fees is designed to recover the total cost of the CAT. The Operating Committee has determined overall CAT costs to be comprised of Plan Processor costs and non-Plan Processor costs, which are estimated to be $50,700,000 in total for the year beginning November 21, 2016.
The Plan Processor costs relate to costs incurred by the Plan Processor and consist of the Plan Processor's current estimates of average yearly ongoing costs, including development cost, which total $37,500,000. This amount is based upon the fees due to the Plan Processor pursuant to the agreement with the Plan Processor.
The non-Plan Processor estimated costs incurred and to be incurred by the Company through November 21, 2017 consist of three categories of costs. The first category of such costs are third party support costs, which include historic legal fees, consulting fees and audit fees from November 21, 2016 until the date of filing as well as estimated third party support costs for the rest of the year. These amount to an estimated $5,200,000. The second category of non-Plan Processor costs are estimated insurance costs for the year. Based on discussions with potential insurance providers, assuming $2-5 million insurance premium on $100 million in
Based on
For Industry Members (other than Execution Venue ATSs):
For Execution
For Execution
As noted
The Operating Committee has calculated the schedule of effective fees for Industry Members (other than Execution Venue ATSs) and Execution Venues in the following manner. Note that the calculation of CAT Reporter fees assumes 53 Equity Execution Venues, 15 Options Execution Venues and 1,631 Industry Members (other than Execution Venue ATSs) as of January 2017.
The funding principles require a funding model in which the fees charged to the CAT Reporters with the most CAT-related activity (measured by market share and/or message traffic, as applicable) are generally comparable (where, for these comparability purposes, the tiered fee structure takes into consideration affiliations between or among CAT Reporters, whether Execution Venue and/or Industry Members). Accordingly, in creating the model, the Operating Committee sought to take account of the affiliations between or among CAT Reporters—that is, where affiliated entities may have multiple Industry Member and/or Execution Venue licenses, by maintaining relative comparability of fees among such affiliations with the most expected CAT-related activity. To do this, the Participants identified representative affiliations in the largest tier of both Execution Venues and Industry Members and compared the aggregate fees that would be paid by such firms.
While the proposed fees for Tier 1 and Tier 2 Industry Members are relatively higher than those of Tier 1 and Tier 2 Execution Venues, Execution Venue complex fees are relatively higher than those of Industry Member complexes largely due to affiliations between Execution Venues. The tables set forth below describe the largest Execution Venue and Industry Member complexes and their associated fees:
Under Section 11.1(c) of the CAT NMS Plan, to fund the development and implementation of the CAT, the Company shall time the imposition and collection of all fees on Participants and Industry Members in a manner reasonably related to the timing when the Company expects to incur such development and implementation costs. The Company is currently incurring such development and implementation costs and will continue to do so prior to the commencement of CAT reporting and thereafter. For example, the Plan Processor has required up-front payments to begin building the CAT. In addition, the Company continues to incur consultant and legal expenses on an on-going basis to implement the CAT. Accordingly, the Operating Committee determined that all CAT Reporters, including both Industry Members and Execution Venues (including Participants), would begin to be invoiced as promptly as possible following the establishment of a billing mechanism. Bats will issue a Regulatory Circular to its members when the billing mechanism is established, specifying the date when such invoicing of Industry Members will commence.
Section 11.3(d) of the CAT NMS Plan states that “[t]he Operating Committee shall review such fee schedule on at least an annual basis and shall make any changes to such fee schedule that it deems appropriate. The Operating Committee is authorized to review such fee schedule on a more regular basis, but shall not make any changes on more than a semi-annual basis unless, pursuant to a Supermajority Vote, the Operating Committee concludes that such change is necessary for the adequate funding of the Company.” With such reviews, the Operating Committee will review the distribution of Industry Members and Execution Venues across tiers, and make any updates to the percentage of CAT Reporters allocated to each tier as may be necessary. In addition, the reviews will evaluate the estimated ongoing CAT costs and the level of the operating reserve. To the extent that the total CAT costs decrease, the fees would be adjusted downward, and, to the extent that the total CAT costs increase, the fees would be adjusted upward.
The Operating Committee has determined to calculate fee tiers every three months based on market share or message traffic, as applicable, from the prior three months. For the initial tier assignments, the Company will calculate the relevant tier for each CAT Reporter using the three months of data prior to the commencement date. As with the initial tier assignment, for the tri-monthly reassignments, the Company will calculate the relevant tier using the three months of data prior to the relevant tri-monthly date. Bats notes that any movement of CAT Reporters between tiers will not change the criteria for each tier or the fee amount corresponding to each tier.
In performing the tri-monthly reassignments, Bats notes that the percentage of CAT Reporters in each assigned tier is relative. Therefore, a CAT Reporter's assigned tier will
The following demonstrates a tier reassignment. In accordance with the funding model, the top 75% of Options Execution Venues in market share are categorized as Tier 1 while the bottom 25% of Options Execution Venues in market share are categorized as Tier 2. In the sample scenario below, Options Execution Venue L is initially categorized as a Tier 2 Options Execution Venue in Period A due to its market share. When market share is recalculated for Period B, the market share of Execution Venue L increases, and it is therefore subsequently reranked and reassigned to Tier 1 in Period B. Correspondingly, Options Execution Venue K, initially a Tier 1 Options Execution Venue in Period A, is reassigned to Tier 2 in Period B due to decreases in its market share of share volume.
Bats proposes the Consolidated Audit Trail Funding Fees to implement the CAT Fees determined by the Operating Committee on SRO's Industry Members. The proposed fee schedule has three sections, covering definitions, the fee schedule for CAT Fees, and the timing and manner of payments. Each of these sections is discussed in detail below.
Paragraph (a) of the proposed fee schedule sets forth the definitions for the proposed fee schedule. Paragraph (a)(1) states that, for purposes of the Consolidated Audit Trail Funding Fees, the terms “CAT NMS Plan,” “Industry Member,” “NMS Stock,” “OTC Equity Security”, and “Participant” are defined as set forth in Rule 4.5 (Consolidated Audit Trail—Definitions).
The proposed fee schedule imposes different fees on Equity ATSs and Industry Members that are not Equity ATSs. Accordingly, the proposed fee schedule defines the term “Equity ATS.” First, paragraph (a)(2) defines an “ATS” to mean an alternative trading system as defined in Rule 300(a) of Regulation ATS under the Securities Exchange Act of 1934, as amended, that operates pursuant to Rule 301 of Regulation ATS. This is the same definition of an ATS as set forth in Section 1.1 of the CAT NMS Plan in the definition of an “Execution Venue.” Then, paragraph (a)(4) defines an “Equity ATS” as an ATS that executes transactions in NMS Stocks and/or OTC Equity Securities.
Paragraph (a)(3) of the proposed fee schedule defines the term “CAT Fee” to mean the Consolidated Audit Trail Funding Fee(s) to be paid by Industry Members as set forth in paragraph (b) in the proposed fee schedule.
Finally, Paragraph (a)(6) defines an “Execution Venue” as a Participant or an ATS (excluding any such ATS that does not execute orders). This definition is the same substantive definition as set forth in Section 1.1 of the CAT NMS Plan. Paragraph (a)(5) defines an “Equity Execution Venue” as an Execution Venue that trades NMS Stocks and/or OTC Equity Securities.
Bats proposes to impose the CAT Fees applicable to its Industry Members through paragraph (b) of the proposed fee schedule. Paragraph (b)(1) of the proposed fee schedule sets forth the CAT Fees applicable to Industry Members other than Equity ATSs. Specifically, paragraph (b)(1) states that the Company will assign each Industry Member (other than an Equity ATS) to a fee tier once every quarter, where such tier assignment is calculated by ranking each Industry Member based on its total message traffic for the three months prior to the quarterly tier calculation day and assigning each Industry Member to a tier based on that ranking and predefined Industry Member percentages. The Industry Members with the highest total quarterly message traffic will be ranked in Tier 1, and the Industry Members with lowest quarterly message traffic will be ranked in Tier 9. Each quarter, each Industry Member (other than an Equity ATS) shall pay the following CAT Fee corresponding to the tier assigned by the Company for such Industry Member for that quarter:
Paragraph (b)(2) of the proposed fee schedule sets forth the CAT Fees applicable to Equity ATSs.
Section 11.4 of the CAT NMS Plan states that the Operating Committee shall establish a system for the collection of fees authorized under the CAT NMS Plan. The Operating Committee may include such collection responsibility as a function of the Plan Processor or another administrator. To implement the payment process to be adopted by the Operating Committee, paragraph (c)(1) of the proposed fee schedule states that the Company will provide each Industry Member with one invoice each quarter for its CAT Fees as determined pursuant to paragraph (b) of the proposed fee schedule, regardless of whether the Industry Member is a member of multiple self-regulatory organizations. Paragraph (c)(1) further states that each Industry Member will pay its CAT Fees to the Company via the centralized system for the collection of CAT Fees established by the Company in the manner prescribed by the Company. Bats will provide Industry Members with details regarding the manner of payment of CAT Fees by Regulatory Circular.
Although the exact fee collection system and processes for CAT fees has not yet been established, all CAT fees will be billed and collected centrally through the Company, via the Plan Processor or otherwise. Although each Participant will adopt its own fee schedule regarding CAT Fees, no CAT Fees or portion thereof will be collected by the individual Participants. Each Industry Member will receive from the Company one invoice for its applicable CAT fees, not separate invoices from each Participant of which it is a member. The Industry Members will pay the CAT Fees to the Company via the centralized system for the collection of CAT fees established by the Company.
Section 11.4 of the CAT NMS Plan also states that Participants shall require each Industry Member to pay all applicable authorized CAT Fees within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). Section 11.4 further states that, if an Industry Member fails to pay any such fee when due, such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (i) The Prime Rate plus 300 basis points; or (ii) the maximum rate permitted by applicable law. Therefore, in accordance with Section 11.4 of the CAT NMS Plan, Bats proposes to adopt paragraph (c)(2) of the proposed fee schedule. Paragraph (c)(2) of the proposed fee schedule states that each Industry Member shall pay CAT Fees within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due, such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (i) The Prime Rate plus 300 basis points; or (ii) the maximum rate permitted by applicable law.
Bats believes that the proposed rule change is consistent with the provisions of Section 6(b)(5) of the Act,
Bats believes that this proposal is consistent with the Act because it implements, interprets or clarifies the provisions of the Plan, and is designed to assist Bats and its Industry Members in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.”
Bats believes that the proposed tiered fees are reasonable. First, the total CAT Fees to be collected would be directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to insurance, third party services and the operational reserve. The CAT Fees would not cover Participant services unrelated to the CAT. In addition, any surplus CAT Fees cannot be distributed to the individual Participants; such surpluses must be used as a reserve to offset future fees. Given the direct relationship between the fees and the CAT costs, Bats believes
In addition, Bats believes that the proposed CAT Fees are reasonably designed to allocate the total costs of the CAT equitably between and among the Participants and Industry Members, and are therefore not unfairly discriminatory. As discussed in detail above, the proposed tiered fees impose comparable fees on similarly situated CAT Reporters. For example, those with a larger impact on the CAT (measured via message traffic or market share) pay higher fees, whereas CAT Reporters with a smaller impact pay lower fees. Correspondingly, the tiered structure lessens the impact on smaller CAT Reporters by imposing smaller fees on those CAT Reporters with less market share or message traffic. In addition, the funding model takes into consideration affiliations between CAT Reporters, imposing comparable fees on such affiliated entities.
Moreover, Bats believes that the division of the total CAT costs between Industry Members and Execution Venues, and the division of the Execution Venue portion of total costs between Equity and Options Execution Venues, is reasonably designed to allocate CAT costs among CAT Reporters. The 75/25 division between Industry Members and Execution Venues maintains the greatest level of comparability across the funding model, keeping in view that comparability should consider affiliations among or between CAT Reporters (
Finally, Bats believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fixed fee. Such factors are crucial to estimating a reliable revenue stream for the Company and for permitting CAT Reporters to reasonably predict their payment obligations for budgeting purposes.
Section 6(b)(8) of the Act
Moreover, as previously described, Bats believes that the proposed rule change fairly and equitably allocates costs among CAT Reporters. In particular, the proposed fee schedule is structured to impose comparable fees on similarly situated CAT Reporters, and lessen the impact on smaller CAT Reporters. CAT Reporters with similar levels of CAT activity will pay similar fees. For example, Industry Members (other than Execution Venue ATSs) with higher levels of message traffic will pay higher fees, and those with lower levels of message traffic will pay lower fees. Similarly, Execution Venue ATSs and other Execution Venues with larger market share will pay higher fees, and those with lower levels of market share will pay lower fees. Therefore, given that there is generally a relationship between message traffic and market share to the CAT Reporter's size, smaller CAT Reporters generally pay less than larger CAT Reporters. Accordingly, Bats does not believe that the CAT Fees would have a disproportionate effect on smaller or larger CAT Reporters. In addition, ATSs and exchanges will pay the same fees based on market share. Therefore, Bats does not believe that the fees will impose any burden on the competition between ATSs and exchanges. Accordingly, Bats believes that the proposed fees will minimize the potential for adverse effects on competition between CAT Reporters in the market.
Furthermore, the tiered, fixed fee funding model limits the disincentives to providing liquidity to the market. Therefore, the proposed fees are structured to limit burdens on competitive quoting and other liquidity provision in the market.
Written comments were neither solicited nor received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act
Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes (1) a new Rule 5220 that defines and prohibits two types of disruptive quoting and trading activity on the Exchange; (2) a new Rule 9560 governing supplemental expedited suspension proceedings; and (3) amendments to Rule 8313 to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560. The proposed rule change is available on the Exchange's Web site at
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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange proposes (1) a new Rule 5220 that defines and prohibits two types of disruptive quoting and trading activity on the Exchange; (2) a new Rule 9560 governing supplemental expedited suspension proceedings; and (3) amendments to Rule 8313 (Release of Disciplinary Complaints, Decisions and Other Information) to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560.
The proposed rule change is based on rules recently adopted by Bats BZX Exchange, Inc., formerly known as BATS Exchange, Inc. (“BATS”), and The Nasdaq Stock Market LLC (“NASDAQ”).
As a national securities exchange registered pursuant to Section 6 of the Act, the Exchange is required to be organized and to have the capacity to enforce compliance by its member organizations and persons associated with its member organizations, with the Act, the rules and regulations thereunder, and the Exchange's Rules.
In fulfilling these requirements, the Exchange has developed a comprehensive regulatory program that includes automated surveillance of trading activity operated directly by Exchange staff. When disruptive and potentially manipulative or improper quoting and trading activity is identified, the Exchange conducts an investigation into the activity and requests documents and information. To the extent violations of the Act, the rules and regulations thereunder, or Exchange Rules are identified, the Exchange will commence disciplinary proceedings, which could result in, among other things, a censure, a requirement to take certain remedial actions, one or more restrictions on future business activities, a monetary fine, or a temporary or permanent ban from the securities industry.
The process described above, from the identification of disruptive and
The Exchange and other SROs were able to identify the disruptive quoting and trading activity in real-time or near real-time; nonetheless, the parties responsible for such conduct or responsible for their customers' conduct continued the disruptive quoting and trading activity on the Exchange and other exchanges during the entirety of the subsequent lengthy investigation and enforcement process. To supplement other Exchange Rules on which it may already rely to stop such activity from continuing, the Exchange believes that it should have additional authority to initiate expedited suspension proceedings in order to stop behavior from continuing on the Exchange if a member organization or a person associated with its member organization is engaging in or facilitating disruptive quoting and trading activity and the member organization or associated person has received sufficient notice with an opportunity to respond, but such activity has not ceased. The following examples involving the Exchange and its affiliate NYSE Arca, Inc. (“NYSE Arca”), are instructive regarding the rationale for the proposed rule change.
In July 2012, Biremis Corp. (formerly Swift Trade Securities USA, Inc.) (“Biremis”) and its CEO were barred from the securities industry for, among other things, supervisory violations related to a failure by Biremis to detect and prevent disruptive and allegedly manipulative trading activities, including layering, short sale violations, and anti-money laundering violations.
In September of 2012, Hold Brothers On-Line Investment Services, Inc. (“Hold Brothers”) settled a regulatory action in connection with its provision of a trading platform, trade software and trade execution, support and clearing services for day traders.
The Exchange believes that the activities described in the cases above provide justification for the proposed rule change, which is described below.
The Exchange proposes to adopt new Rule 5220 of the Exchange's Conduct Rules to define and prohibit disruptive quoting and trading activity on the Exchange. Proposed Rule 5220(a) would prohibit member organizations and covered persons
• A party enters multiple limit orders on one side of the market at various price levels (the “Displayed Orders”) (proposed Rule 5220(b)(1)(A)); and
• following the entry of the Displayed Orders, the level of supply and demand for the security changes (proposed Rule 5220(b)(1)(B)); and
• the party enters one or more orders on the opposite side of the market of the Displayed Orders (the “Contra-Side Orders”) that are subsequently executed (proposed Rule 5220(b)(1)(C)); and
• following the execution of the Contra-Side Orders, the party cancels the Displayed Orders (proposed Rule 5220(b)(1)(D)).
Proposed Rule 5220(b)(2) would describe disruptive quoting and trading activity containing many of the elements indicative of spoofing and would describe disruptive quoting and trading activity as a frequent pattern in which the following facts are present:
• A party narrows the spread for a security by placing an order inside the national best bid or offer (proposed Rule 5220(b)(2)(A)); and
• the party then submits an order on the opposite side of the market that executes against another market participant that joined the new inside market established by the order described in proposed (b)(2)(A) that narrowed the spread (proposed Rule 5220(b)(2)(B)).
The Exchange believes that the proposed descriptions of disruptive quoting and trading activity articulated in the rule are consistent with the activities that have been identified and described in the client access cases described above and with the rules of other SROs.
Proposed Rule 5220(c) would provide that, unless otherwise indicated, the descriptions of disruptive quoting and trading activity do not require the facts to occur in a specific order in order for the Rule to apply. For instance, with respect to the pattern defined in proposed Rule 5220(b)(1)(A)-(D), it is of no consequence whether a party first enters Displayed Orders and then Contra-side Orders or vice-versa. However, as proposed, it is required for supply and demand to change following the entry of the Displayed Orders.
The Exchange also proposes to make clear that disruptive quoting and trading activity includes a pattern or practice in which some portion of the disruptive quoting and trading activity is conducted on the Exchange and the other portions of the disruptive quoting and trading activity are conducted on one or more other exchanges. The Exchange believes that this authority is necessary to address market participants who would otherwise seek to avoid the prohibitions of the proposed Rule by spreading their activity amongst various execution venues.
Proposed Rule 9560 would set forth procedures for issuing suspension orders, immediately prohibiting a member organization or covered person from conducting continued disruptive quoting and trading activity on the Exchange. Importantly, these procedures would also provide the Exchange the authority to order a member organization or covered person to cease and desist from providing access to the Exchange to a client that is conducting disruptive quoting and trading activity.
Under proposed paragraph (a)(1) of Rule 9560, with the prior written authorization of the Chief Regulatory Officer (“CRO”) or such other senior officers as the CRO may designate, the Exchange's Enforcement department may initiate an expedited suspension proceeding with respect to alleged violations of proposed Rule 5220. Proposed paragraph (a) would also set forth the requirements for notice ((a)(2)) and service of such notice ((a)(3)) pursuant to the Rule, including the required method of service and the content of notice.
Proposed paragraph (b) of Rule 9560 would govern the appointment of a Hearing Panel as well as potential disqualification or recusal of Hearing Officers. The proposed provision is consistent with current Rule 9231(b), which governs the appointment of a hearing panel or extended hearing panel to conduct disciplinary proceedings. The Exchange's Rules provide for a Hearing Officer to be recused in the event he or she has a conflict of interest or bias or other circumstances exist where his or her fairness might reasonably be questioned in accordance with Rules [sic] 9233(a). In addition to recusal initiated by such a Hearing Officer, a party to the proceeding will be permitted to file a motion to disqualify a Hearing Officer. However, due to the compressed schedule pursuant to which the process would operate under Rule 9560, the proposed rule would require such motion to be filed no later than 5 days after the announcement of the Hearing Panel and the Exchange's brief in opposition to such motion would be required to be filed no later than 5 days after service thereof. Pursuant to existing Rule 9233(c), a motion for disqualification of a Hearing Officer shall be decided by the Chief Hearing Officer based on a prompt investigation. The applicable Hearing Officer shall remove himself or herself and request the Chief Executive Officer to reassign the hearing to another Hearing Officer such that the Hearing Panel still meets the compositional requirements described in Rule 9231(b). If the Chief Hearing Officer determines that the Respondent's grounds for disqualification are insufficient, it shall deny the Respondent's motion for disqualification by setting forth the reasons for the denial in writing and the Hearing Panel will proceed with the hearing.
Under paragraph (c)(1) of the proposed Rule, the hearing would be held not later than 15 days after service of the notice initiating the suspension proceeding, unless otherwise extended by the Chairman of the Hearing Panel with the consent of the Parties for good cause shown. In the event of a recusal or disqualification of a Hearing Officer, the hearing shall be held not later than five days after a replacement Hearing Officer is appointed.
Under paragraph (c)(2) of the proposed Rule, a notice of date, time, and place of the hearing shall be served on the Parties not later than seven days before the hearing, unless otherwise ordered by the Chairman of the Hearing Panel. Under the proposed Rule, service
Proposed paragraph (c) would also govern how the hearing is conducted, including the authority of Hearing Officers ((c)(3), witnesses ((c)(4)), additional information that may be required by the Hearing Panel ((c)(5)), the requirement that a transcript of the proceeding be created and details related to such transcript ((c)(6)), and details regarding the creation and maintenance of the record of the proceeding ((c)(7)). Proposed paragraph (c)(8) would also provide that if a Respondent fails to appear at a hearing for which it has notice, the allegations in the notice and accompanying declaration may be deemed admitted, and the Hearing Panel may issue a suspension order without further proceedings. Finally, as proposed, if the Exchange fails to appear at a hearing for which it has notice, the Hearing Panel may order that the suspension proceeding be dismissed.
Under paragraph (d)(1) of the proposed Rule, the Hearing Panel would be required to issue a written decision stating whether a suspension order would be imposed. The Hearing Panel would be required to issue the decision not later than 10 days after receipt of the hearing transcript, unless otherwise extended by the Chairman of the Hearing Panel with the consent of the Parties for good cause shown. The proposed Rule would state that a suspension order shall be imposed if the Hearing Panel finds by a preponderance of the evidence that the alleged violation specified in the notice has occurred and that the violative conduct or continuation thereof is likely to result in significant market disruption or other significant harm to investors.
Proposed paragraph (d)(2) would also describe the content, scope and form of a suspension order. As proposed, a suspension order shall be limited to ordering a Respondent to cease and desist from violating proposed Rule 5220, and/or to ordering a Respondent to cease and desist from providing access to the Exchange to a client of Respondent that is causing violations of proposed Rule 5220 ((d)(2)(A)). Under the proposed rule, a suspension order shall also set forth the alleged violation and the significant market disruption or other significant harm to investors that is likely to result without the issuance of an order ((d)(2)(B)). The order shall describe in reasonable detail the act or acts the Respondent is to take or refrain from taking, and suspend such Respondent unless and until such action is taken or refrained from ((d)(2)(C)). Finally, the order shall include the date and hour of its issuance ((d)(2)(D)).
As proposed, under proposed paragraph (d)(3), a suspension order would remain effective and enforceable unless modified, set aside, limited, or revoked pursuant to proposed paragraph (e), as described below.
Finally, paragraph (d)(4) would require service of the Hearing Panel's decision and any suspension order consistent with other portions of the proposed rule related to service.
Proposed paragraph (e) of Rule 9560 would provide that at any time after the Hearing Officers served the Respondent with a suspension order, a Party could apply to the Hearing Panel to have the order modified, set aside, limited, or revoked. If any part of a suspension order is modified, set aside, limited, or revoked, proposed paragraph (e) of Rule 9560 provides the Hearing Panel discretion to leave the cease and desist part of the order in place. For example, if a suspension order suspends Respondent unless and until Respondent ceases and desists providing access to the Exchange to a client of Respondent, and after the order is entered the Respondent complies, the Hearing Panel is permitted to modify the order to lift the suspension portion of the order while keeping in place the cease and desist portion of the order. With its broad modification powers, the Hearing Panel also maintains the discretion to impose conditions upon the removal of a suspension—for example, the Hearing Panel could modify an order to lift the suspension portion of the order in the event a Respondent complies with the cease and desist portion of the order but additionally order that the suspension will be re-imposed if Respondent violates the cease and desist provisions modified order in the future. The Hearing Panel generally would be required to respond to the request in writing within 10 days after receipt of the request. An application to modify, set aside, limit or revoke a suspension order would not stay the effectiveness of the suspension order.
Proposed paragraph (f) would describe the call for review process by the Exchange Board of Directors. Specifically, the proposed Rule would provide that if there is no pending application to the Hearing Panel to have a suspension order modified, set aside, limited, or revoked, the Exchange Board of Directors, in accordance with Rule 9310 (Review by Exchange Board of Directors), may call for review the Hearing Panel decision on whether to issue a suspension order. Further, the proposed Rule would provide that a call for review by the Exchange Board of Directors shall not stay the effectiveness of a suspension order.
Finally, proposed paragraph (g) would provide that sanctions issued under the proposed Rule 9560 would constitute final and immediately effective disciplinary sanctions imposed by the Exchange, and that the right to have any action under the Rule reviewed by the Commission would be governed by Section 19 of the Act. The filing of an application for review would not stay the effectiveness of a suspension order unless the Commission otherwise ordered.
Finally, the Exchange proposes amendments to Rule 8313 to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560. Specifically, the Exchange proposes to amend Rule 8313(a)(3), which provides that the Exchange shall release to the public information with respect to any suspension, cancellation, expulsion, or bar that constitutes final Exchange action imposed pursuant various Exchange Rules, to include a reference to proposed Rule 9560. The Exchange also proposes to include a notice of the initiation of a suspension proceeding served pursuant to proposed Rule 9560 in the definition of “disciplinary complaint” under Rule 8313(e)(1). Similarly, the Exchange would include suspension orders issued pursuant to proposed Rule 9560 in the definition of “disciplinary decision” under Rule 8313(e)(2). The proposed amendments to Rule 8313 are consistent with the FINRA Rule 8313 and the rules of the other SROs modeled on FINRA Rule 8313.
In summary, proposed Rule 5220, coupled with proposed Rule 9560, would provide the Exchange with another form and means of authority to promptly act to prevent disruptive quoting and trading activity from continuing on the Exchange. The following example illustrates how the proposed rule would operate.
Assume that through its surveillance program, Exchange staff identifies a pattern of potentially disruptive quoting and trading activity. After an initial investigation, the Exchange would contact the member organization or covered person responsible for the orders that caused the activity to request an explanation of the activity as well as any additional relevant information,
In such a case the proposed sanction would likely be to order the member organization or covered person to cease and desist providing access to the Exchange to the client that is responsible for the disruptive quoting and trading activity and to suspend such member organization or covered person unless and until such action is taken. The member organization or covered person would have the opportunity to be heard in front of a Hearing Panel at a hearing to be conducted within 15 days of the notice. If the Hearing Panel determined that the violation alleged in the notice did not occur or that the conduct or its continuation would not have the potential to result in significant market disruption or other significant harm to investors, then the Hearing Panel would dismiss the suspension order proceeding. If the Hearing Panel determined that the violation alleged in the notice did occur and that the conduct or its continuation is likely to result in significant market disruption or other significant harm to investors, then the Hearing Panel would issue the order including the proposed sanction, ordering the member organization or covered person to cease providing access to the client at issue and suspending such Member unless and until such action is taken.
If such member organization or covered person wished for the suspension to be lifted because the client ultimately responsible for the activity no longer would be provided access to the Exchange, then such member organization or covered person could apply to the Hearing Panel to have the order modified, set aside, limited or revoked. The Exchange notes that the issuance of a suspension order would not alter the Exchange's ability to further investigate the matter and/or later sanction the member or member organization pursuant to the Exchange's standard disciplinary process for supervisory violations or other violations of Exchange rules or the Act.
The Exchange reiterates that it already has broad authority to take action against a member organization or covered person in the event that such member organization or covered person is engaging in or facilitating disruptive or manipulative trading activity on the Exchange. For the reasons described above, and in light of recent matters such as the client access cases described above, as well as other cases currently under investigation, the Exchange believes that it is equally important for the Exchange to have this supplemental authority to promptly initiate expedited suspension proceedings against any member organization or covered person who has demonstrated a clear pattern or practice of disruptive quoting and trading activity, as described above, and to take action including ordering such member organization or covered person to terminate access to the Exchange to one or more clients that are [sic] responsible for the violative activity.
The Exchange recognizes that its proposed authority to issue a suspension order is a powerful measure that should be used very cautiously. Consequently, the proposed rules have been designed to ensure that the proceedings are used to address only the most clear and serious types of disruptive quoting and trading activity and that the interests of respondents are protected. For example, to ensure that proceedings are used appropriately and that the decision to initiate a proceeding is made only at the highest staff levels, the proposed rules require the CRO or another senior officer of the Exchange to issue written authorization before the Exchange can institute an expedited suspension proceeding. In addition, the rule by its terms is limited to violations of proposed Rules [sic] 5220, when necessary to protect investors, other member organizations or covered persons, and the Exchange.
Further, the Exchange believes that the proposed expedited suspension provisions described above that provide the opportunity to respond as well as a Hearing Panel determination prior to taking action will ensure that the Exchange would not utilize its authority in the absence of a clear pattern or practice of disruptive quoting and trading activity. Notwithstanding the adoption of the proposed rules along with existing disciplinary rules in the 9000 series, the Exchange also notes that that pursuant to Rule 9555(a)(2) (Failure to Meet the Eligibility or Qualification Standards or Prerequisites for Access to Services), if a member organization or covered person cannot continue to have access to services offered by the Exchange or a member thereof with safety to investors, creditors, members, or the Exchange, the Exchange may provide written notice to such member or person limiting or prohibiting access to services offered by the Exchange or a member thereof. This ability to impose a temporary restriction upon Members assists the Exchange in maintaining the integrity of the market and protecting investors and the public interest.
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
Further, the Exchange believes that the proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act,
As noted throughout this filing, the Exchange believes that these rule proposals are necessary for the
The Exchange believes that the proposal is also consistent with Section 6(b)(7) of the Act,
Finally, the Exchange believes that amending Rule 8313 to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560 furthers the objectives of Section 6(b)(5) of the Act
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. To the contrary, the Exchange believes that each self-regulatory organization should be empowered to regulate trading occurring on their [sic] market consistent with the Act and without regard to competitive issues. The Exchange is requesting authority to take appropriate action if necessary for the protection of investors, other member organizations or covered persons, and the Exchange. The Exchange also believes that it is important for all exchanges to be able to take similar action to enforce its [sic] rules against manipulative conduct thereby leaving no exchange prey to such conduct. The Exchange does not believe that the proposed rule change imposes an undue burden on competition, rather this process will provide the Exchange with necessary means to enforce against violations of manipulative quoting and trading activity in an expedited manner, while providing member organizations or covered persons with the necessary due process. Finally, the proposed rule change is designed to enhance the Exchange's rules governing the release of disciplinary complaints, decisions and other information to the public, thereby providing greater clarity and consistency and resulting in less burdensome and more efficient regulatory compliance and facilitating performance of regulatory functions.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
A proposed rule change filed under Rule 19b-4(f)(6)
At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B)
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
FINRA is proposing to amend FINRA Rule 7730 to make available a new End-of-Day TRACE Transaction File.
The text of the proposed rule change is available on FINRA's Web site at
In its filing with the Commission, FINRA 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. FINRA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
Rule 7730 (Trade Reporting and Compliance Engine (TRACE)), among other things, sets forth the TRACE data products offered by FINRA in connection with TRACE-Eligible Securities.
The data elements to be included in the proposed End-of-Day TRACE Transaction File would be the same as those disseminated in Real-Time TRACE transaction data, and the proposed End-of-Day TRACE Transaction File would be separately available for each data set for which Real-Time TRACE transaction data is available (
If the Commission approves the proposed rule change, FINRA will announce the effective date of the proposed rule change in a
FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,
Pursuant to the proposal, FINRA would make available to subscribers an optional End-of-Day TRACE Transaction File that would include all transaction data disseminated that day as part of Real-Time TRACE transaction data for TRACE-Eligible Securities. FINRA believes that the proposed End-of-Day TRACE Transaction File provides a simpler alternative to the Real-Time TRACE transaction data product, which provides transparency information on the price and size of transactions in TRACE-Eligible Securities, and may be useful to interested parties that do not require intra-day, real-time transaction data on TRACE-Eligible Securities. Thus, FINRA believes that the proposed rule change is in the public interest and consistent with the Act.
FINRA does not believe that the proposed rule change would result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.
FINRA's existing Real-Time TRACE data product provides transaction data for the following Data Sets: Corporate Bond Data Set, Agency Data Set, SP Data Set, and Rule 144A Data Set. As detailed above, FINRA is proposing to create an End-of-Day TRACE Transaction File that would include all transaction data disseminated that day as part of Real-Time TRACE transaction data, and would be separately available for each data set for which Real-Time TRACE transaction data is available. The proposal to create an End-of-Day TRACE Transaction File would not impose any additional reporting requirements or costs on firms, and the purchase of TRACE data products would continue to be optional for market participants and others and, as a result, would have no direct impact on firms.
Written comments were neither solicited nor received.
Within 45 days of the date of publication of this notice in the
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Robert W. Errett, Deputy Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The Exchange proposes to amend the Rule 3400 series relating to the Order Audit Trail System, Rule 785 relating to Electronic Blue Sheets, Rule 1022 relating to account identification, and Rule 1063 and Option Floor Procedure Advices and Order and Decorum Regulations C-2 relating to the Consolidated Options Audit Trail System to reflect changes to these rules once members are effectively reporting to the Consolidated Audit Trail (“CAT”) and the CAT's accuracy and reliability meets certain standards as described below.
The text of the proposed rule change is available on the Exchange's Web site at
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.
The Exchange proposes to amend the Rule 3400 series relating to the Order Audit Trail System (“OATS”), Rule 785 relating to Electronic Blue Sheets (“EBS”), Rule 1022 relating to account identification, and Rule 1063 Option Floor Procedure Advices and Order and Decorum Regulations C-2 relating to the Consolidated Options Audit Trail System (“COATS”) to reflect changes to these rules once members are effectively reporting to the CAT, and the CAT's accuracy and reliability meets certain standards as described below.
Bats BYX Exchange, Inc.; Bats BZX Exchange, Inc.; Bats EDGA Exchange, Inc.; Bats EDGX Exchange, Inc.; BOX Options Exchange LLC; C2 Options Exchange, Incorporated; Chicago Board Options Exchange, Incorporated; Chicago Stock Exchange, Inc.; FINRA; International Securities Exchange, LLC; Investors' Exchange LLC; ISE Gemini, LLC; ISE Mercury, LLC; Miami International Securities Exchange LLC; MIAX PEARL, LLC; NASDAQ BX, Inc.; NASDAQ PHLX LLC; The NASDAQ Stock Market LLC; National Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE MKT LLC; and NYSE Arca, Inc. (collectively, the “Participants”) filed with the Commission, pursuant to Section 11A of the Exchange Act
ISE Gemini, LLC, ISE Mercury, LLC and International Securities Exchange, LLC have been renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, and Nasdaq ISE, LLC, respectively.
National Stock Exchange, Inc. has been renamed NYSE National, Inc.
The CAT NMS Plan is designed to create, implement, and maintain a consolidated audit trail that will capture in a single consolidated data source customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution. Among other things, Section C.9. of Appendix C to the Plan, as modified by the Commission, requires each Participant to “file with the SEC the relevant rule change filing to eliminate or modify its duplicative rules within six (6) months of the SEC's approval of the CAT NMS Plan.”
(i) Specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired;
(ii) whether the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems; and
(iii) whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.
In response to these requirements, Phlx is proposing to delete the Rule 3400 Series (the “OATS Rules”) from the Phlx rulebook once the CAT achieves the specific accuracy and reliability standards described below, and Phlx has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow Phlx to continue to meet its surveillance obligations,
The first issue the Plan requires the proposed rule change to discuss is “specific accuracy and reliability
As discussed in Section A.3.(b) of Appendix C to the CAT NMS Plan, the Participants established an initial Error Rate, as defined in the Plan, of 5% on initially submitted data (
Phlx agrees with the Participants' conclusion that a 5% pre-correction threshold “strikes the balance of adapting to a new reporting regime, while ensuring that the data provided to regulators will be capable of being used to conduct surveillance and market reconstruction, as well as having a sufficient level of accuracy to facilitate the retirement of existing regulatory reports and systems where possible.”
To ensure the CAT's accuracy and reliability, Phlx is proposing that, before OATS could be retired, the CAT would generally need to achieve a sustained error rate for Industry Member reporting in each of the categories below for a period of at least 180 days of 5% or lower, measured on a pre-correction or as-submitted basis and 2% or lower on a post-correction basis (measured at T+5).
Phlx is proposing to use error rates in each the following categories, measured separately for options and for equities, to assess whether the threshold pre- and post-correction error rates are being met:
•
•
•
•
•
In addition to these minimum error rates and matching thresholds that generally must be met before OATS can be retired, Phlx believes that during the minimum 180-day period during which the thresholds are calculated, Phlx's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow Phlx to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. Phlx believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
The second issue the Plan requires the proposed rule change to address is “whether the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
Phlx believes that there is no effective way to retire OATS until all current OATS reporters are reporting to the CAT. Although Technical Specifications for Industry Members are not yet available, PHLX believes it would be inefficient, less reliable, and more costly to attempt to marry the OATS and CAT databases for a temporary period to allow some Phlx members to report to CAT while others continue to report to OATS. Consequently, Phlx has concluded at this time that having data from those Small Industry Members currently reporting to OATS available two years after the Effective Date would substantially facilitate a more expeditious retirement of OATS. For this reason, Phlx supports an amendment to the Plan that would require current OATS Reporters that are “Small Industry Members” to report two years after the Effective Date (instead of three). Phlx intends to work with the other Participants to submit a proposed amendment to the Plan to require Small Industry Members that are OATS Reporters to report two years after the Effective Date.
Phlx has identified approximately 300 member firms that currently report to OATS and meet the definition of “Small Industry Member;” however, only ten of these firms submit information to OATS on their own behalf, and eight of the ten firms report very few orders to OATS.
The final issue the Plan requires the proposed rule change to address is “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
As described above, Phlx believes that a single cut-over from OATS to CAT is highly preferable to a firm-by-firm approach and is not proposing to exempt members from the OATS requirements on a firm-by-firm basis. The primary benefit to a firm-by-firm exemptive approach would be to reduce the amount of time an individual firm is required to report to a legacy system (
Rule 785 is Phlx's rule regarding the automated submission of specific trading data to Phlx upon request using the Electronic Blue Sheet (“EBS”) system. Rule 785 requires members to submit certain trade information as prescribed by the Exchange, including, for proprietary transactions, the clearing house number or alpha symbol of the member submitting the data, the identifying symbol assigned to the security, and the date the transaction was executed.
Rule 1022 imposes certain account identification requirements on Specialists and Registered Options Traders. Specifically, Rule 1022 requires those market participants to file with the Exchange upon request and keep current a list identifying all accounts for stock, Exchange-Traded Fund Shares, option and related securities or foreign currencies, physical commodities, physical commodity options, commodity futures contracts, options on commodity futures contracts, any other derivatives based on such commodity and other related trading in which the Specialist or Registered Options Trader may, directly or indirectly, engage in trading activities or over which they exercise investment discretion. That Rule prohibits a Specialist or Registered Options Trader from engaging in trading in any of these instruments in an account that has not been reported to the Exchange pursuant to this rule.
Once broker-dealer reporting to the CAT has begun, the CAT will contain the data the Participants would otherwise have requested via the EBS system for purposes of NMS Securities and OTC Equity Securities. Consequently, Phlx will not need to use the EBS system or request information
The proposed rule change proposes to add new Supplementary Material to Rule 785 and Rule 1022 to clarify how Phlx will request data under these rules after members are reporting to the CAT. Specifically, the proposed Supplementary Material to these rules will note that the Exchange will request information under these rules only if the information is not available in the CAT because, for example, the transactions in question occurred before the firm was reporting information to the CAT or involved securities that are not reportable to the CAT. In essence, under the new Supplementary Material, the Exchange will make requests under these rules if and only if the information is not otherwise available through the CAT.
The CAT NMS Plan states, however, that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.
Phlx believes CAT Data should not be used in place of EBS data until all Participants and Industry Members are reporting data to CAT. In this way, Phlx will continue to have access to the necessary data to perform its regulatory duties.
The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether “the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
The CAT NMS Plan requires that this rule filing address “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
Phlx believes that, before CAT Data may be used in place of EBS data, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).
In addition to these minimum error rates before using CAT Data instead of EBS data, Phlx believes that during the minimum 180-day period during which the thresholds are calculated, Phlx's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow Phlx to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. Phlx believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
The options exchanges utilize COATS to collect and review data regarding options orders, quotes and transactions. The Participants have provided COATS technical specifications to the Plan Processor for the CAT for use in developing the Technical Specifications for the CAT, and the Participants are working with the Plan Processor to include the necessary COATS data elements in the CAT Technical Specifications. Accordingly, although the Technical Specifications for the CAT have not yet been finalized, Phlx and the other options exchanges propose to eliminate COATS in accordance with the proposed timeline discussed below.
Phlx adopted Rule 1063 to implement certain reporting requirements related to COATS, and therefore proposes to eliminate the information reporting requirements of that rule and replacing those requirements with a requirement that members report information pursuant to this rule as required by Phlx's CAT Compliance Rule, Rule 900A.
Rule 1063(e) describes the operations and requirements of the Floor Broker Management System, which is designed to create an electronic audit trail for equity, equity index and U.S. dollar-settled foreign currency options orders represented by Floor Brokers on the Exchange's Options Floor. Among other things, Rule 1063(e) requires a Floor Broker or that Floor Broker's employees, contemporaneously upon receipt of an order and prior to the representation of such an order in the trading crowd, to record order information including (i) the order type (
Option Floor Procedure Advices and Order and Decorum Regulations C-2 repeats these requirements, and imposes a schedule of fines for violating these requirements.
The CAT NMS Plan states that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.
Phlx believes COATS should not be retired until all Participants and Industry Members that report data to COATS are reporting comparable data to the CAT. In this way, Phlx will continue to have access to the necessary data to perform its regulatory duties.
The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether “the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
The CAT NMS Plan requires that this rule filing address “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide “specific accuracy and reliability standards that will determine
Phlx and the other options exchanges believe that, before COATS may be retired, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).
In addition to these minimum error rates before COATS can be retired, Phlx believes that during the minimum 180-day period during which the thresholds are calculated, Phlx's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow Phlx to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. Phlx believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
If the Commission approves the proposed rule change, Phlx will announce the implementation date of the proposed rule change in a
The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
Phlx believes that the proposed rule change fulfills the obligation in the CAT NMS Plan for Phlx to submit a proposed rule change to eliminate or modify duplicative rules. In approving the Plan, the SEC noted that the Plan “is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.”
Moreover, the purpose of the proposed rule change is to eliminate rules that require the submission of duplicative data to the exchange. The elimination of such duplicative requirements will reduce unnecessary costs and other compliance burdens for Phlx and its members, and therefore, will enhance the efficiency of the securities markets. Furthermore, Phlx believes that the approach set forth in the proposed rule change strikes the appropriate balance between ensuring that Phlx is able to continue to fulfill its statutory obligation to protect investors and the public interest by ensuring its surveillance of market activity remains accurate and effective while also establishing a reasonable timeframe for elimination or modification of its rules that will be rendered duplicative after implementation of the CAT.
Section 6(b)(8) of the Exchange Act
Although written comments on the proposed rule change were not solicited, two commenters, the Financial Information Forum (“FIF”) and the Securities Industry and Financial Markets Association (“SIFMA”), submitted letters to the Participants regarding the retirement of systems related to the CAT.
As discussed above, Phlx agrees with the commenters that the OATS, EBS and COATS reporting requirements should be replaced by the CAT reporting requirements as soon as accurate and reliable CAT Data is available. To this end, Phlx anticipates that the CAT will be designed to collect the data necessary to permit the retirement of OATS, EBS and COATS. As discussed above, Phlx disagrees with the recommendation to provide individual exemptions to those CAT Reporters who obtain satisfactory data reporting quality; however, Phlx supports amendments to the CAT NMS Plan that would accelerate reporting for Small Industry Members that are currently reporting to OATS to facilitate the retirement of that system.
Within 45 days of the date of publication of this notice in the
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Securities and Exchange Commission (“Commission”).
Notice.
Notice of an application for an order under section 6(c) of the Investment Company Act of 1940 (the “Act”) for an exemption from sections 2(a)(32), 5(a)(1), 22(d), and 22(e) of the Act and rule 22c-1 under the Act, under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and 17(a)(2) of the Act, and under section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and 12(d)(1)(B) of the Act. The requested order would permit (a) index-based series of certain open-end management investment companies (“Funds”) to issue shares redeemable in large aggregations only (“Creation Units”); (b) secondary market transactions in Fund shares to occur at negotiated market prices rather than at net asset value (“NAV”); (c) certain Funds to pay redemption proceeds, under certain circumstances, more than seven days after the tender of shares for redemption; (d) certain affiliated persons of a Fund to deposit securities into, and receive securities from, the Fund in connection with the purchase and redemption of Creation Units; (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the Funds (“Funds of Funds”) to acquire shares of the Funds; and (f) certain Funds (“Feeder Funds”) to create and redeem Creation Units in-kind in a master-feeder structure.
Dreyfus ETF Trust (the “Trust”), a Massachusetts business trust registered under the Act as an open-end management investment company, The Dreyfus Corporation (the “Initial Adviser”), a New York corporation registered as an investment adviser under the Investment Advisers Act of 1940 (the “Advisers Act”) and Mellon Capital Management Corporation, a Delaware corporation registered with the Commission as an investment adviser under the Advisers Act.
The application was filed on September 28, 2016, and amended on February 21, 2017.
An order granting the requested relief will be issued unless the Commission
Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090; Applicants: The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.
Rachel Loko, Senior Counsel, at (202) 551-6883, or Aaron Gilbride, Acting Branch Chief, at (202) 551-6906 (Division of Investment Management, Chief Counsel's Office).
The following is a summary of the application. The complete application may be obtained via the Commission's Web site by searching for the file number, or for an applicant using the Company name box, at
1. Applicants request an order that would allow Funds to operate as index exchange traded funds (“ETFs”).
2. Each Fund will hold investment positions selected to correspond generally to the performance of an Underlying Index. In the case of Self-Indexing Funds, an affiliated person, as defined in section 2(a)(3) of the Act (“Affiliated Person”), or an affiliated person of an Affiliated Person (“Second-Tier Affiliate”), of the Trust or a Fund, of the Adviser, of any sub-adviser to or promoter of a Fund, or of the Distributor will compile, create, sponsor or maintain the Underlying Index.
3. Shares will be purchased and redeemed in Creation Units and generally on an in-kind basis. Except where the purchase or redemption will include cash under the limited circumstances specified in the application, purchasers will be required to purchase Creation Units by depositing specified instruments (“Deposit Instruments”), and shareholders redeeming their shares will receive specified instruments (“Redemption Instruments”). The Deposit Instruments and the Redemption Instruments will each correspond pro rata to the positions in the Fund's portfolio (including cash positions) except as specified in the application.
4. Because shares will not be individually redeemable, applicants request an exemption from section 5(a)(1) and section 2(a)(32) of the Act that would permit the Funds to register as open-end management investment companies and issue shares that are redeemable in Creation Units only.
5. Applicants also request an exemption from section 22(d) of the Act and rule 22c-1 under the Act as secondary market trading in shares will take place at negotiated prices, not at a current offering price described in a Fund's prospectus, and not at a price based on NAV. Applicants state that (a) secondary market trading in shares does not involve a Fund as a party and will not result in dilution of an investment in shares, and (b) to the extent different prices exist during a given trading day, or from day to day, such variances occur as a result of third-party market forces, such as supply and demand. Therefore, applicants assert that secondary market transactions in shares will not lead to discrimination or preferential treatment among purchasers. Finally, applicants represent that share market prices will be disciplined by arbitrage opportunities, which should prevent shares from trading at a material discount or premium from NAV.
6. With respect to Funds that effect creations and redemptions of Creation Units in kind and that are based on certain Underlying Indexes that include foreign securities, applicants request relief from the requirement imposed by section 22(e) in order to allow such Funds to pay redemption proceeds within fifteen calendar days following the tender of Creation Units for redemption. Applicants assert that the requested relief would not be inconsistent with the spirit and intent of section 22(e) to prevent unreasonable, undisclosed or unforeseen delays in the actual payment of redemption proceeds.
7. Applicants request an exemption to permit Funds of Funds to acquire Fund shares beyond the limits of section 12(d)(1)(A) of the Act; and the Funds, and any principal underwriter for the Funds, and/or any broker or dealer registered under the Exchange Act, to sell shares to Funds of Funds beyond the limits of section 12(d)(1)(B) of the Act. The application's terms and conditions are designed to, among other things, help prevent any potential (i) undue influence over a Fund through control or voting power, or in connection with certain services, transactions, and underwritings, (ii) excessive layering of fees, and (iii) overly complex fund structures, which are the concerns underlying the limits in sections 12(d)(1)(A) and (B) of the Act.
8. Applicants request an exemption from sections 17(a)(1) and 17(a)(2) of the Act to permit persons that are Affiliated Persons, or Second Tier Affiliates, of the Funds, solely by virtue of certain ownership interests, to effectuate purchases and redemptions in-kind. The deposit procedures for in-kind purchases of Creation Units and the redemption procedures for in-kind redemptions of Creation Units will be the same for all purchases and redemptions and Deposit Instruments and Redemption Instruments will be valued in the same manner as those investment positions currently held by the Funds. Applicants also seek relief from the prohibitions on affiliated transactions in section 17(a) to permit a Fund to sell its shares to and redeem its
9. Applicants also request relief to permit a Feeder Fund to acquire shares of another registered investment company managed by the Adviser having substantially the same investment objectives as the Feeder Fund (“Master Fund”) beyond the limitations in section 12(d)(1)(A) and permit the Master Fund, and any principal underwriter for the Master Fund, to sell shares of the Master Fund to the Feeder Fund beyond the limitations in section 12(d)(1)(B).
10. Section 6(c) of the Act permits the Commission to exempt any persons or transactions from any provision of the Act if such exemption is necessary or appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the Act. Section 12(d)(1)(J) of the Act provides that the Commission may exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions, from any provision of section 12(d)(1) if the exemption is consistent with the public interest and the protection of investors. Section 17(b) of the Act authorizes the Commission to grant an order permitting a transaction otherwise prohibited by section 17(a) if it finds that (a) the terms of the proposed transaction are fair and reasonable and do not involve overreaching on the part of any person concerned; (b) the proposed transaction is consistent with the policies of each registered investment company involved; and (c) the proposed transaction is consistent with the general purposes of the Act.
For the Commission, by the Division of Investment Management, under delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The Exchange proposes to amend Rule 6950 relating to the Order Audit Trail System, Rule 8211 and Chapter IX, Section IV relating to Electronic Blue Sheets, Chapter VII, Section VII relating to account identification, and Chapter V, Section VII relating to the Consolidated Options Audit Trail System to reflect changes to these rules once members are effectively reporting to the Consolidated Audit Trail (“CAT”) and the CAT's accuracy and reliability meets certain standards as described below.
The text of the proposed rule change is available on the Exchange's Web site at
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..
The Exchange proposes to amend Rule 6950 relating to the Order Audit Trail System (“OATS”), Rule 8211 and Chapter IX, Section IV relating to Electronic Blue Sheets (“EBS”), Chapter VII, Section VII relating to account identification, and Chapter V, Section VII relating to the Consolidated Options Audit Trail System (“COATS”) to reflect changes to these rules once members are effectively reporting to the CAT, and the CAT's accuracy and reliability meets certain standards as described below.
Bats BYX Exchange, Inc.; Bats BZX Exchange, Inc.; Bats EDGA Exchange, Inc.; Bats EDGX Exchange, Inc.; BOX Options Exchange LLC; C2 Options Exchange, Incorporated; Chicago Board Options Exchange, Incorporated; Chicago Stock Exchange, Inc.; FINRA; International Securities Exchange, LLC; Investors' Exchange LLC; ISE Gemini, LLC; ISE Mercury, LLC; Miami International Securities Exchange LLC; MIAX PEARL, LLC; NASDAQ BX, Inc.; NASDAQ PHLX LLC; The NASDAQ Stock Market LLC; National Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE MKT LLC; and NYSE Arca, Inc. (collectively, the “Participants”) filed with the Commission, pursuant to Section 11A of the Exchange Act
ISE Gemini, LLC, ISE Mercury, LLC and International Securities Exchange, LLC have been renamed Nasdaq GEMX, LLC, Nasdaq MRX, LLC, and Nasdaq ISE, LLC, respectively.
National Stock Exchange, Inc. has been renamed NYSE National, Inc.
The CAT NMS Plan is designed to create, implement, and maintain a consolidated audit trail that will capture in a single consolidated data source customer and order event information for orders in NMS Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution. Among other things, Section C.9. of Appendix C to the Plan, as modified by the Commission, requires each Participant to “file with the SEC the relevant rule change filing to eliminate or modify its duplicative rules within six (6) months of the SEC's approval of the CAT NMS Plan.”
(i) specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired;
(ii) whether the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems; and
(iii) whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.
In response to these requirements, BX is proposing to delete Rule 6950 (the “OATS Rules”) from the BX rulebook once the CAT achieves the specific accuracy and reliability standards described below, and BX has determined that its usage of the CAT Data has not revealed material issues that have not been corrected, confirmed that the CAT includes all data necessary to allow BX to continue to meet its surveillance obligations,
The first issue the Plan requires the proposed rule change to discuss is “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
As discussed in Section A.3.(b) of Appendix C to the CAT NMS Plan, the Participants established an initial Error Rate, as defined in the Plan, of 5% on initially submitted data (
BX agrees with the Participants' conclusion that a 5% pre-correction threshold “strikes the balance of adapting to a new reporting regime, while ensuring that the data provided to regulators will be capable of being used to conduct surveillance and market reconstruction, as well as having a sufficient level of accuracy to facilitate the retirement of existing regulatory reports and systems where possible.”
To ensure the CAT's accuracy and reliability, BX is proposing that, before OATS could be retired, the CAT would generally need to achieve a sustained error rate for Industry Member reporting in each of the categories below for a period of at least 180 days of 5% or lower, measured on a pre-correction or as-submitted basis and 2% or lower on a post-correction basis (measured at T+5).
BX is proposing to use error rates in each the following categories, measured separately for options and for equities, to assess whether the threshold pre- and post-correction error rates are being met:
•
•
•
•
•
In addition to these minimum error rates and matching thresholds that generally must be met before OATS can be retired, BX believes that during the minimum 180-day period during which the thresholds are calculated, BX's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow BX to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. BX believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
The second issue the Plan requires the proposed rule change to address is “whether the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
BX believes that there is no effective way to retire OATS until all current OATS reporters are reporting to the CAT. Although Technical Specifications for Industry Members are not yet available, BX believes it would be inefficient, less reliable, and more costly to attempt to marry the OATS and CAT databases for a temporary period to allow some BX members to report to CAT while others continue to report to OATS. Consequently, BX has concluded at this time that having data from those Small Industry Members currently reporting to OATS available two years after the Effective Date would substantially facilitate a more expeditious retirement of OATS. For this reason, BX supports an amendment to the Plan that would require current OATS Reporters that are “Small Industry Members” to report two years after the Effective Date (instead of three). BX intends to work with the other Participants to submit a proposed amendment to the Plan to require Small Industry Members that are OATS Reporters to report two years after the Effective Date.
BX has identified approximately 300 member firms that currently report to OATS and meet the definition of “Small Industry Member;” however, only ten of these firms submit information to OATS on their own behalf, and eight of the ten
The final issue the Plan requires the proposed rule change to address is “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
As described above, BX believes that a single cut-over from OATS to CAT is highly preferable to a firm-by-firm approach and is not proposing to exempt members from the OATS requirements on a firm-by-firm basis. The primary benefit to a firm-by-firm exemptive approach would be to reduce the amount of time an individual firm is required to report to a legacy system (
The EBS rule is BX's rule regarding the automated submission of specific trading data to BX upon request using the Electronic Blue Sheet system. Rule 8211 applies to EBS reporting for equity securities, while Chapter IX, Section 4 applies EBS reporting to options. Rule 8211 and Chapter IX, Section 4 require members to submit certain trade information as prescribed by BX Regulation, including, for proprietary transactions, the clearing house number or alpha symbol of the member submitting the data, the identifying symbol assigned to the security, and the date the transaction was executed.
Chapter VII, Section VII imposes certain account identification requirements on Market Makers. Specifically, Chapter VII, Section VII requires, among other things, that each Market Maker shall file with BX Regulation and keep current a list identifying all accounts for stock, options and related securities trading in which the Market Maker may, directly or indirectly, engage in trading activities or over which it exercises investment discretion. The rule also prohibits a Market Maker from engaging in stock, options or related securities trading in an account which has not been reported pursuant to this rule.
Once broker-dealer reporting to the CAT has begun, the CAT will contain the data the Participants would otherwise have requested via the EBS system for purposes of NMS Securities and OTC Equity Securities. Consequently, BX will not need to use the EBS system or request information pursuant to these rules for NMS Securities or OTC Equity Securities for time periods after CAT reporting has begun if the appropriate accuracy and reliability thresholds are achieved, including an acceptable accuracy rate for customer and account information. However, these rules cannot be completely eliminated immediately upon the CAT achieving the appropriate thresholds because BX Regulation staff may still need to request information pursuant to these rules for trading activity occurring before a member was reporting to the CAT.
The proposed rule change proposes to add new Supplementary Material to Rule 8211, Chapter VII, Section VII, and Chapter IX, Section 4 to clarify how BX will request data under these rules after members are reporting to the CAT. Specifically, the proposed Supplementary Material to these rules will note that BX Regulation will request information under these rules only if the information is not available in the CAT because, for example, the transactions in question occurred before the firm was reporting information to the CAT or involved securities that are not reportable to the CAT. In essence, under the new Supplementary Material, BX Regulation will make requests under these rules if and only if the information is not otherwise available through the CAT.
The CAT NMS Plan states, however, that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.
BX believes CAT Data should not be used in place of EBS data until all Participants and Industry Members are reporting data to CAT. In this way, BX will continue to have access to the necessary data to perform its regulatory duties.
The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether “the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
The CAT NMS Plan requires that this rule filing address “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
BX believes that, before CAT Data may be used in place of EBS data, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).
In addition to these minimum error rates before using CAT Data instead of EBS data, BX believes that during the minimum 180-day period during which the thresholds are calculated, BX's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow BX to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. BX believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
The options exchanges utilize COATS to collect and review data regarding options orders, quotes and transactions. The Participants have provided COATS technical specifications to the Plan Processor for the CAT for use in developing the Technical Specifications for the CAT, and the Participants are working with the Plan Processor to include the necessary COATS data elements in the CAT Technical Specifications. Accordingly, although the Technical Specifications for the CAT have not yet been finalized, BX and the other options exchanges propose to eliminate COATS in accordance with the proposed timeline discussed below.
BX adopted Chapter V, Section 7 to implement certain reporting requirements related to COATS, and therefore proposes to eliminate the information reporting requirements of that rule and replacing those requirements with a requirement that members report information pursuant to this rule as required by the Exchange's CAT compliance rule, Chapter IX, Section 8.
The CAT NMS Plan states that the elimination of rules that are duplicative of the requirements of the CAT and the retirement of the related systems should be effective at such time as CAT Data meets minimum standards of accuracy and reliability.
BX believes COATS should not be retired until all Participants and Industry Members that report data to COATS are reporting comparable data to the CAT. In this way, BX will continue to have access to the necessary data to perform its regulatory duties.
The CAT NMS Plan requires that a rule filing to eliminate a duplicative rule address whether “the availability of certain data from Small Industry Members two years after the Effective Date would facilitate a more expeditious retirement of duplicative systems.”
The CAT NMS Plan requires that this rule filing address “whether individual Industry Members can be exempted from reporting to duplicative systems once their CAT reporting meets specified accuracy and reliability standards, including, but not limited to, ways in which establishing cross-system regulatory functionality or integrating data from existing systems and the CAT would facilitate such Individual Industry Member exemptions.”
The CAT NMS Plan also requires that a rule filing to eliminate a duplicative rule to provide “specific accuracy and reliability standards that will determine when duplicative systems will be retired, including, but not limited to, whether the attainment of a certain Error Rate should determine when a system duplicative of the CAT can be retired.”
BX and the other options exchanges believe that, before COATS may be retired, the CAT would need to achieve a sustained error rate for a period of at least 180 days of 5% or lower measured on a pre-correction or as-submitted basis, and 2% or lower on a post-correction basis (measured at T+5).
In addition to these minimum error rates before COATS can be retired, BX believes that during the minimum 180-day period during which the thresholds are calculated, BX's use of the data in the CAT must confirm that (i) usage over that time period has not revealed material issues that have not been corrected, (ii) the CAT includes all data necessary to allow BX to continue to meet its surveillance obligations, and (iii) the Plan Processor is sufficiently meeting all of its obligations under the CAT NMS Plan. BX believes this time period to use the CAT Data is necessary to reveal any errors that may manifest themselves only after surveillance patterns and other queries have been run and to confirm that the Plan Processor is meeting its obligations and performing its functions adequately.
If the Commission approves the proposed rule change, BX will announce the implementation date of the proposed rule change in a
The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
BX believes that the proposed rule change fulfills the obligation in the CAT NMS Plan for BX to submit a proposed rule change to eliminate or modify duplicative rules. In approving the Plan, the SEC noted that the Plan “is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly
Moreover, the purpose of the proposed rule change is to eliminate rules that require the submission of duplicative data to the exchange. The elimination of such duplicative requirements will reduce unnecessary costs and other compliance burdens for BX and its members, and therefore, will enhance the efficiency of the securities markets. Furthermore, BX believes that the approach set forth in the proposed rule change strikes the appropriate balance between ensuring that BX is able to continue to fulfill its statutory obligation to protect investors and the public interest by ensuring its surveillance of market activity remains accurate and effective while also establishing a reasonable timeframe for elimination or modification of its rules that will be rendered duplicative after implementation of the CAT.
Section 6(b)(8) of the Exchange Act
Although written comments on the proposed rule change were not solicited, two commenters, the Financial Information Forum (“FIF”) and the Securities Industry and Financial Markets Association (“SIFMA”), submitted letters to the Participants regarding the retirement of systems related to the CAT.
As discussed above, BX agrees with the commenters that the OATS, EBS and COATS reporting requirements should be replaced by the CAT reporting requirements as soon as accurate and reliable CAT Data is available. To this end, BX anticipates that the CAT will be designed to collect the data necessary to permit the retirement of OATS, EBS and COATS. As discussed above, BX disagrees with the recommendation to provide individual exemptions to those CAT Reporters who obtain satisfactory data reporting quality; however, BX supports amendments to the CAT NMS Plan that would accelerate reporting for Small Industry Members that are currently reporting to OATS to facilitate the retirement of that system.
Within 45 days of the date of publication of this notice in the
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange propose (1) a new NYSE Arca Rule 11.21 and a new NYSE Arca Equities Rule 5220 that define and prohibit two types of disruptive quoting and trading activity on the Exchange; (2) a new NYSE Arca Rule 10.18 and a new NYSE Arca Equities Rule 10.16 governing supplemental expedited suspension proceedings; and (3) amendments to NYSE Arca Rule 10.17 and NYSE Arca Equities 10.15 to permit release to the public of suspension notices and orders issued pursuant to proposed NYSE Arca Rule 10.18 and NYSE Arca Equities Rule 10.16, respectively. The proposed rule change is available on the Exchange's Web site at
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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange proposes (1) a new NYSE Arca Rule 11.21 and NYSE Arca Equities Rule 5220 that define and prohibit two types of disruptive quoting and trading activity on the Exchange; (2) a new NYSE Arca Rule 10.18 and NYSE Arca Equities Rule 10.16 governing supplemental expedited suspension proceedings; and (3) amendments to NYSE Arca Rule 10.17 and NYSE Arca Equities 10.15 to permit release to the public of suspension notices and orders issued pursuant to proposed NYSE Arca Rule 10.18 and NYSE Arca Equities Rule 10.16, respectively.
The proposed rule change is based on rules recently adopted by Bats BZX Exchange, Inc., formerly known as BATS Exchange, Inc. (“BATS”), and The Nasdaq Stock Market LLC (“NASDAQ”).
As a national securities exchange registered pursuant to Section 6 of the Act, the Exchange is required to be organized and to have the capacity to enforce compliance by its member organizations and persons associated with its member organizations, with the Act, the rules and regulations thereunder, and the Exchange's Rules.
In fulfilling these requirements, the Exchange has developed a comprehensive regulatory program that
The process described above, from the identification of disruptive and potentially manipulative or improper quoting and trading activity to a final resolution of the matter, can often take several years. The Exchange believes that this time period sometimes is necessary and appropriate to afford adequate due process, particularly in complex cases. However, as described below, the Exchange believes that there are certain obvious and uncomplicated cases of disruptive and manipulative behavior or cases where the potential harm to investors is so large that the Exchange should have the authority to initiate an expedited suspension proceeding in order to stop the behavior from continuing on the Exchange. In recent years, several cases have been brought and resolved by the Exchange and other SROs involving allegations of wide-spread market manipulation, much of which was ultimately being conducted by foreign persons and entities using relatively rudimentary technology to access the markets and over which the Exchange and other SROs had no direct jurisdiction. In each case, the conduct involved a pattern of disruptive quoting and trading activity indicative of manipulative layering
The Exchange and other SROs were able to identify the disruptive quoting and trading activity in real-time or near real-time; nonetheless, the parties responsible for such conduct or responsible for their customers' conduct continued the disruptive quoting and trading activity on the Exchange and other exchanges during the entirety of the subsequent lengthy investigation and enforcement process. To supplement other Exchange Rules on which it may already rely to stop such activity from continuing, the Exchange believes that it should have additional authority to initiate expedited suspension proceedings in order to stop behavior from continuing on the Exchange if a member organization or a person associated with its member organization is engaging in or facilitating disruptive quoting and trading activity and the member organization or associated person has received sufficient notice with an opportunity to respond, but such activity has not ceased. The following examples involving the Exchange and its affiliate the New York Stock Exchange LLC (“NYSE”) are instructive regarding the rationale for the proposed rule change.
In July 2012, Biremis Corp. (formerly Swift Trade Securities USA, Inc.) (“Biremis”) and its CEO were barred from the securities industry for, among other things, supervisory violations related to a failure by Biremis to detect and prevent disruptive and allegedly manipulative trading activities, including layering, short sale violations, and anti-money laundering violations.
In September of 2012, Hold Brothers On-Line Investment Services, Inc. (“Hold Brothers”) settled a regulatory action in connection with its provision of a trading platform, trade software and trade execution, support and clearing services for day traders.
The Exchange believes that the activities described in the cases above provide justification for the proposed rule change, which is described below.
The Exchange proposes to adopt new NYSE Arca Rule 11.21 to define and prohibit disruptive quoting and trading activity on the Exchange. Proposed NYSE Arca Rule 11.21(a) would prohibit OTP Holders, OTP Firms or any participant
The Exchange proposes to adopt NYSE Arca Rule 11.21(b)(1) and (2) providing additional details regarding disruptive quoting and trading activity. Proposed NYSE Arca Rule 11.21(b)(1) would describe disruptive quoting and trading activity containing many of the elements indicative of layering. For purposes of the proposed Rule, disruptive quoting and trading activity would include a frequent pattern in which the following facts are present:
• A party enters multiple limit orders on one side of the market at various price levels (the “Displayed Orders”) (proposed NYSE Arca Rule 11.21(b)(1)(A)); and
• following the entry of the Displayed Orders, the level of supply and demand for the security changes (proposed NYSE Arca Rule 11.21(b)(1)(B)); and
• the party enters one or more orders on the opposite side of the market of the Displayed Orders (the “Contra-Side Orders”) that are subsequently executed (proposed NYSE Arca Rule 11.21(b)(1)(C)); and
• following the execution of the Contra-Side Orders, the party cancels the Displayed Orders (proposed NYSE Arca Rule 11.21(b)(1)(D)).
Proposed NYSE Arca Rule 11.21(b)(2) would describe disruptive quoting and trading activity containing many of the elements indicative of spoofing and would describe disruptive quoting and trading activity as a frequent pattern in which the following facts are present:
• A party narrows the spread for a security by placing an order inside the national best bid or offer (proposed NYSE Arca Rule 11.21(b)(2)(A)); and
• the party then submits an order on the opposite side of the market that executes against another market participant that joined the new inside market established by the order described in proposed (b)(2)(A) that narrowed the spread (proposed NYSE Arca Rule 11.21(b)(2)(B)).
The Exchange believes that the proposed descriptions of disruptive quoting and trading activity articulated in the rule are consistent with the activities that have been identified and described in the client access cases described above and with the rules of other SROs.
Proposed NYSE Arca Rule 11.21(c) would provide that, unless otherwise indicated, the descriptions of disruptive quoting and trading activity do not require the facts to occur in a specific order in order for the Rule to apply. For instance, with respect to the pattern defined in proposed Rule 11.21(b)(1)(A)-(D), it is of no consequence whether a party first enters Displayed Orders and then Contra-side Orders or vice-versa. However, as proposed, it is required for supply and demand to change following the entry of the Displayed Orders.
The Exchange also proposes to make clear that disruptive quoting and trading activity includes a pattern or practice in which some portion of the disruptive quoting and trading activity is conducted on the Exchange and the other portions of the disruptive quoting and trading activity are conducted on one or more other exchanges. The Exchange believes that this authority is necessary to address market participants who would otherwise seek to avoid the prohibitions of the proposed Rule by spreading their activity amongst various execution venues.
The Exchange proposes to adopt a new NYSE Arca Equities Rule 5220 that would be substantially the same as proposed NYSE Arca Rule 11.21.
Like its NYSE Arca counterpart, proposed NYSE Arca Equities Rule 5220 would define and prohibit disruptive quoting and trading activity on the Exchange. Proposed NYSE Arca Equities Rule 5220(a) would prohibit ETP Holders or associated persons of ETP Holders
• A party enters multiple limit orders on one side of the market at various price levels (the “Displayed Orders”) (proposed NYSE Arca Equities Rule 5220(b)(1)(A)); and
• following the entry of the Displayed Orders, the level of supply and demand for the security changes (proposed NYSE Arca Equities Rule 5220(b)(1)(B)); and
• the party enters one or more orders on the opposite side of the market of the Displayed Orders (the “Contra-Side Orders”) that are subsequently executed (proposed NYSE Arca Equities Rule 5220(b)(1)(C)); and
• following the execution of the Contra-Side Orders, the party cancels the Displayed Orders (proposed NYSE Arca Equities Rule 5220(b)(1)(D)).
Proposed Rule 996NY(b)(2) would describe disruptive quoting and trading activity containing many of the elements indicative of spoofing and would describe disruptive quoting and trading activity as a frequent pattern in which the following facts are present:
• A party narrows the spread for a security by placing an order inside the national best bid or offer (proposed NYSE Arca Equities Rule 5220(b)(2)(A)); and
• the party then submits an order on the opposite side of the market that executes against another market participant that joined the new inside market established by the order described in proposed (b)(2)(A) that narrowed the spread (proposed NYSE Arca Equities Rule 5220(b)(2)(B)).
As with proposed NYSE Arca Rule 11.21, the Exchange believes that the proposed descriptions of disruptive quoting and trading activity articulated in the proposed NYSE Arca Equities Rule are consistent with the activities that have been identified and described in the client access cases described above and with the rules of other SROs.
Proposed NYSE Arca Equities Rule 5220(c) would provide that, unless otherwise indicated, the descriptions of disruptive quoting and trading activity do not require the facts to occur in a specific order in order for the Rule to apply. The proposed Rule would also make clear that disruptive quoting and trading activity includes a pattern or practice in which some portion of the disruptive quoting and trading activity is conducted on the Exchange and the other portions of the disruptive quoting and trading activity are conducted on one or more other exchanges.
The Exchange proposes a new NYSE Arca Rule 10.18 that would set forth procedures for issuing suspension orders, immediately prohibiting a member organization or covered person from conducting continued disruptive quoting and trading activity on the Exchange. Importantly, these procedures would also provide the Exchange the authority to order a member organization or covered person to cease and desist from providing access to the Exchange to a client that is conducting disruptive quoting and trading activity.
Under proposed paragraph (a)(1) of NYSE Arca Rule 10.18, with the prior written authorization of the Chief Regulatory Officer (“CRO”) or such other senior officers as the CRO may designate, the Exchange's Enforcement department may initiate an expedited suspension proceeding with respect to alleged violations of NYSE Arca Rule 11.21 (Disruptive Quoting and Trading Activity Prohibited). Proposed paragraph (a) would also set forth the requirements for notice ((a)(2)) and service of such notice ((a)(3)) pursuant to the Rule, including the required method of service and the content of notice.
Proposed paragraph (b) of NYSE Arca Rule 10.18 would govern the appointment of a Conduct Panel, and would provide that a Conduct Panel shall be assigned in accordance with paragraph (a) of NYSE Arca Rule 10.5.
Under paragraph (c)(1) of the proposed Rule, the hearing would be held not later than 15 days after service of the notice initiating the suspension proceeding, unless otherwise extended by the Hearing Administrator with the consent of the Parties for good cause shown.
Under paragraph (c)(2) of the proposed Rule, a notice of date, time, and place of the hearing shall be served on the Parties not later than seven days before the hearing, unless otherwise ordered by the Hearing Administrator. Under the proposed Rule, service shall be made by personal service or overnight commercial courier and shall be effective upon service.
Proposed paragraph (c) would also govern how the hearing is conducted, including the authority of Hearing Administrators ((c)(3), witnesses ((c)(4)), additional information that may be required by the Conduct Panel ((c)(5)), the requirement that a transcript of the proceeding be created and details related to such transcript ((c)(6)), and details regarding the creation and maintenance of the record of the proceeding ((c)(7)). Proposed paragraph (c)(8) would also provide that if a Respondent fails to appear at a hearing for which it has notice, the allegations in the notice and accompanying declaration may be deemed admitted, and the Conduct Panel may issue a suspension order without further proceedings. Finally, as proposed, if the Exchange fails to appear at a hearing for which it has notice, the Conduct Panel may order that the suspension proceeding be dismissed.
Under paragraph (d)(1) of the proposed Rule, the Conduct Panel would be required to issue a written decision stating whether a suspension order would be imposed. The Conduct Panel would be required to issue the decision not later than 10 days after receipt of the hearing transcript, unless otherwise extended by the Chairman of the Conduct Panel with the consent of the Parties for good cause shown. The proposed Rule would state that a suspension order shall be imposed if the Conduct Panel finds by a preponderance of the evidence that the alleged violation specified in the notice has occurred and that the violative conduct or continuation thereof is likely to result in significant market disruption or other significant harm to investors.
Proposed paragraph (d)(2) would also describe the content, scope and form of a suspension order. As proposed, a suspension order shall be limited to ordering a Respondent to cease and desist from violating NYSE Arca Rule 11.21 and/or ordering a Respondent to cease and desist from providing access to the Exchange to a client of Respondent that is causing violations of NYSE Arca Rule 11.21 ((d)(2)(A)). Under the proposed rule, a suspension order shall also set forth the alleged violation and the significant market disruption or other significant harm to investors that is likely to result without the issuance of an order ((d)(2)(B)). The order shall describe in reasonable detail the act or acts the Respondent is to take or refrain from taking, and suspend such Respondent unless and until such action is taken or refrained from ((d)(2)(C)). Finally, the order shall include the date and hour of its issuance ((d)(2)(D)).
As proposed, under proposed paragraph (d)(3), a suspension order would remain effective and enforceable unless modified, set aside, limited, or revoked pursuant to proposed paragraph (e), as described below.
Finally, paragraph (d)(4) would require service of the Conduct Panel's decision and any suspension order consistent with other portions of the proposed rule related to service.
Proposed paragraph (e) of NYSE Arca Rule 10.18 would provide that at any
Proposed paragraph (f) would describe the call for review process by the Exchange Board of Directors. Specifically, the proposed Rule would provide that if there is no pending application to the Conduct Panel to have a suspension order modified, set aside, limited, or revoked, the Exchange Board of Directors, in accordance with NYSE Arca Rule 10.8 (Review), may call for review the Conduct Panel decision on whether to issue a suspension order. Further, the proposed Rule would provide that a call for review by the Exchange Board of Directors shall not stay the effectiveness of a suspension order.
Finally, proposed paragraph (g) would provide that sanctions issued under the proposed Rule 10.18 would constitute final and immediately effective disciplinary sanctions imposed by the Exchange, and that the right to have any action under the Rule reviewed by the Commission would be governed by Section 19 of the Act. The filing of an application for review would not stay the effectiveness of a suspension order unless the Commission otherwise ordered.
The Exchange proposes a new NYSE Arca Equities Rule 10.16 that would set forth procedures for issuing suspension orders, immediately prohibiting a member organization or covered person from conducting continued disruptive quoting and trading activity on the Exchange. Importantly, these procedures would also provide the Exchange the authority to order a member organization or covered person to cease and desist from providing access to the Exchange to a client that is conducting disruptive quoting and trading activity.
Under proposed paragraph (a)(1) of NYSE Arca Equities Rule 10.16, with the prior written authorization of the Chief Regulatory Officer (“CRO”) or such other senior officers as the CRO may designate, the Exchange's Enforcement department may initiate an expedited suspension proceeding with respect to alleged violations of NYSE Arca Equities Rule 5220 (Disruptive Quoting and Trading Activity Prohibited). Proposed paragraph (a) would also set forth the requirements for notice ((a)(2)) and service of such notice ((a)(3)) pursuant to the Rule, including the required method of service and the content of notice.
Proposed paragraph (b) of NYSE Arca Equities Rule 10.16 would govern the appointment of a Conduct Panel, and would provide that a Conduct Panel shall be assigned in accordance with paragraph (a) of NYSE Arca Rule 10.5.
Under paragraph (c)(1) of the proposed Rule, the hearing would be held not later than 15 days after service of the notice initiating the suspension proceeding, unless otherwise extended by the Hearing Administrator with the consent of the Parties for good cause shown.
Under paragraph (c)(2) of the proposed Rule, a notice of date, time, and place of the hearing shall be served on the Parties not later than seven days before the hearing, unless otherwise ordered by the Hearing Administrator. Under the proposed Rule, service shall be made by personal service or overnight commercial courier and shall be effective upon service.
Proposed paragraph (c) would also govern how the hearing is conducted, including the authority of Hearing Administrator ((c)(3), witnesses ((c)(4)), additional information that may be required by the Conduct Panel ((c)(5)), the requirement that a transcript of the proceeding be created and details related to such transcript ((c)(6)), and details regarding the creation and maintenance of the record of the proceeding ((c)(7)). Proposed paragraph (c)(8) would also provide that if a Respondent fails to appear at a hearing for which it has notice, the allegations in the notice and accompanying declaration may be deemed admitted, and the Conduct Panel may issue a suspension order without further proceedings. Finally, as proposed, if the Exchange fails to appear at a hearing for which it has notice, the Conduct Panel may order that the suspension proceeding be dismissed.
Under paragraph (d)(1) of the proposed Rule, the Conduct Panel would be required to issue a written decision stating whether a suspension order would be imposed. The Conduct Panel would be required to issue the decision not later than 10 days after receipt of the hearing transcript, unless otherwise extended by the Hearing Administrator with the consent of the Parties for good cause shown. The proposed Rule would state that a suspension order shall be imposed if the Conduct Panel finds by a preponderance of the evidence that the alleged violation specified in the notice has occurred and that the violative conduct or continuation thereof is likely to result in significant market disruption or other significant harm to investors.
Proposed paragraph (d)(2) would also describe the content, scope and form of a suspension order. As proposed, a suspension order shall be limited to ordering a Respondent to cease and desist from violating proposed NYSE Arca Equities Rule 5220, and/or to ordering a Respondent to cease and desist from providing access to the Exchange to a client of Respondent that is causing violations of proposed NYSE Arca Equities Rule 5220 ((d)(2)(A)). Under the proposed rule, a suspension order shall also set forth the alleged violation and the significant market disruption or other significant harm to investors that is likely to result without the issuance of an order ((d)(2)(B)). The order shall describe in reasonable detail the act or acts the Respondent is to take
As proposed, under proposed paragraph (d)(3), a suspension order would remain effective and enforceable unless modified, set aside, limited, or revoked pursuant to proposed paragraph (e), as described below.
Finally, paragraph (d)(4) would require service of the Conduct Panel's decision and any suspension order consistent with other portions of the proposed rule related to service.
Proposed paragraph (e) of NYSE Arca Equities Rule 10.16 would provide that at any time after the Hearing Administrator serves the Respondent with a suspension order, a Party could apply to the Conduct Panel to have the order modified, set aside, limited, or revoked. If any part of a suspension order is modified, set aside, limited, or revoked, proposed paragraph (e) of NYSE Arca Equities Rule 10.16 provides the Conduct Panel discretion to leave the cease and desist part of the order in place. For example, if a suspension order suspends Respondent unless and until Respondent ceases and desists providing access to the Exchange to a client of Respondent, and after the order is entered the Respondent complies, the Conduct Panel is permitted to modify the order to lift the suspension portion of the order while keeping in place the cease and desist portion of the order. With its broad modification powers, the Conduct Panel also maintains the discretion to impose conditions upon the removal of a suspension—for example, the Conduct Panel could modify an order to lift the suspension portion of the order in the event a Respondent complies with the cease and desist portion of the order but additionally order that the suspension will be re-imposed if Respondent violates the cease and desist provisions modified order in the future. The Conduct Panel generally would be required to respond to the request in writing within 10 days after receipt of the request. An application to modify, set aside, limit or revoke a suspension order would not stay the effectiveness of the suspension order.
Proposed paragraph (f) would describe the call for review process by the Exchange Board of Directors. Specifically, the proposed Rule would provide that if there is no pending application to the Conduct Panel to have a suspension order modified, set aside, limited, or revoked, the Exchange Board of Directors, in accordance with NYSE Arca Equities Rule 10.8 (Review), may call for review the Conduct Panel decision on whether to issue a suspension order. Further, the proposed Rule would provide that a call for review by the Exchange Board of Directors shall not stay the effectiveness of a suspension order.
Finally, proposed paragraph (g) would provide that sanctions issued under the proposed NYSE Arca Equities Rule 10.16 would constitute final and immediately effective disciplinary sanctions imposed by the Exchange, and that the right to have any action under the Rule reviewed by the Commission would be governed by Section 19 of the Act. The filing of an application for review would not stay the effectiveness of a suspension order unless the Commission otherwise ordered.
The Exchange proposes amendments to NYSE Arca Rule 10.17 to permit release to the public of suspension notices and orders issued pursuant to proposed NYSE Arca Rule 10.16. Specifically, the Exchange proposes to include a notice of the initiation of a suspension proceeding served pursuant to proposed NYSE Arca Rule 10.18 in the definition of “disciplinary complaint” under NYSE Arca Rule 10.17(e)(1). Similarly, the Exchange would include suspension orders issued pursuant to proposed NYSE Arca Rule 10.18 in the definition of “disciplinary decision” under NYSE Arca Rule 10.17(e)(2).
The Exchange proposes amendments to NYSE Arca Equities Rule 10.15 to permit release to the public of suspension notices and orders issued pursuant to proposed NYSE Arca Equities Rule 10.16. Specifically, the Exchange proposes to include a notice of the initiation of a suspension proceeding served pursuant to proposed NYSE Arca Equities Rule 10.16 in the definition of “disciplinary complaint” under NYSE Arca Equities Rule 10.15(e)(1). Similarly, the Exchange would include suspension orders issued pursuant to proposed NYSE Arca Equities Rule 10.16 in the definition of “disciplinary decision” under NYSE Arca Equities Rule 10.15(e)(2).
The proposed amendments to NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15 are consistent with the FINRA Rule 8313 and the rules of the other SROs modeled on FINRA Rule 8313.
In summary, proposed NYSE Arca Rule 11.21 and NYSE Arca Equities Rule 5220 and Rule 996NY, coupled with proposed procedural rule NYSE Arca Rule 10.18 and NYSE Arca Equities Rule 10.16, respectively, would provide the Exchange with another form and means of authority to promptly act to prevent disruptive quoting and trading activity from continuing on the Exchange. The following example illustrates how the proposed rule would operate.
Assume that through its surveillance program, Exchange staff identifies a pattern of potentially disruptive quoting and trading activity. After an initial investigation, the Exchange would contact the member organization or covered person responsible for the orders that caused the activity to request an explanation of the activity as well as any additional relevant information, including the source of the activity. If the Exchange were to continue to see the same pattern from the same member organization or covered person and the source of the activity is the same or has been previously identified as a frequent source of disruptive quoting and trading activity then the Exchange could initiate an expedited suspension proceeding by serving notice on the member organization or covered person that would include details regarding the alleged violations as well as the proposed sanction.
In such a case the proposed sanction would likely be to order the member organization or covered person to cease and desist providing access to the Exchange to the client that is responsible for the disruptive quoting and trading activity and to suspend such member organization or covered person unless and until such action is taken. The member organization or covered person would have the opportunity to be heard in front of a Conduct Panel at a hearing to be conducted within 15 days of the notice. If the Conduct Panel determined that the violation alleged in the notice did not occur or that the conduct or its continuation would not have the potential to result in significant market disruption or other significant harm to investors, then the Conduct Panel would dismiss the suspension order proceeding. If the Conduct Panel determined that the violation alleged in the notice did occur and that the conduct or its continuation is likely to result in significant market disruption
If such member organization or covered person wished for the suspension to be lifted because the client ultimately responsible for the activity no longer would be provided access to the Exchange, then such member organization or covered person could apply to the Conduct Panel to have the order modified, set aside, limited or revoked. The Exchange notes that the issuance of a suspension order would not alter the Exchange's ability to further investigate the matter and/or later sanction the member or member organization pursuant to the Exchange's standard disciplinary process for supervisory violations or other violations of Exchange rules or the Act.
The Exchange reiterates that it already has broad authority to take action against a member organization or covered person in the event that such member organization or covered person is engaging in or facilitating disruptive or manipulative trading activity on the Exchange. For the reasons described above, and in light of recent matters such as the client access cases described above, as well as other cases currently under investigation, the Exchange believes that it is equally important for the Exchange to have this supplemental authority to promptly initiate expedited suspension proceedings against any member organization or covered person who has demonstrated a clear pattern or practice of disruptive quoting and trading activity, as described above, and to take action including ordering such member organization or covered person to terminate access to the Exchange to one or more clients that are [sic] responsible for the violative activity.
The Exchange recognizes that its proposed authority to issue a suspension order is a powerful measure that should be used very cautiously. Consequently, the proposed rules have been designed to ensure that the proceedings are used to address only the most clear and serious types of disruptive quoting and trading activity and that the interests of respondents are protected. For example, to ensure that proceedings are used appropriately and that the decision to initiate a proceeding is made only at the highest staff levels, the proposed rules require the CRO or another senior officer of the Exchange to issue written authorization before the Exchange can institute an expedited suspension proceeding. In addition, NYSE Arca Rule 10.18 and NYSE Arca Equities Rule 10.16 are, by their terms, limited to violations of NYSE Arca Rule 11.21 and NYSE Arca Equities Rule 5220, respectively, when necessary to protect investors, other member organizations or covered persons, and the Exchange.
Further, the Exchange believes that the proposed expedited suspension provisions described above that provide the opportunity to respond as well as a Conduct Panel determination prior to taking action will ensure that the Exchange would not utilize its authority in the absence of a clear pattern or practice of disruptive quoting and trading activity. Notwithstanding the adoption of the proposed rules along with existing disciplinary rules in NYSE Arca Rule and NYSE Arca Equities Rule 10, the Exchange also notes that that pursuant to NYSE Arca Rule 13.9 (Failure to Meet the Eligibility or Qualification Standards or Prerequisites for Access to Services) and NYSE Arca Equities Rule 11.9 (Failure to Meet the Eligibility or Qualification Standards or Prerequisites for Access to Services), if a OTP Firms, OTP Holders or Associated Persons of an OTP Firm or OTP Holder or ETP Holder or Associated Person of ETP Holder, respectively, cannot continue to have access to services offered by the Exchange or a member thereof with safety to investors, creditors, members, or the Exchange, the Exchange may provide written notice to such member or person limiting or prohibiting access to services offered by the Exchange or a member thereof. This ability to impose a temporary restriction upon Members assists the Exchange in maintaining the integrity of the market and protecting investors and the public interest.
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
Further, the Exchange believes that the proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act,
As noted throughout this filing, the Exchange believes that these rule proposals are necessary for the protection of investors rather than allowing disruptive quoting and trading activity to occur for several years. The Exchange believes that the pattern of disruptive and allegedly manipulative quoting and trading activity was widespread across multiple exchanges, and the Exchange, FINRA, and other SROs identified clear patterns of the behavior in 2007 and 2008 in the equities markets.
The Exchange believes that the proposal is also consistent with Section 6(b)(7) of the Act,
Finally, the Exchange believes that amending NYSE Arca Rule 10.17 and NYSE Arca Equities Rule 10.15 to permit release to the public of suspension notices and orders issued pursuant to proposed NYSE Arca Rule 10.18 and proposed NYSE Arca Equities Rule 10.16, respectively, furthers the objectives of Section 6(b)(5) of the Act
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. To the contrary, the Exchange believes that each self-regulatory organization should be empowered to regulate trading occurring on their [sic] market consistent with the Act and without regard to competitive issues. The Exchange is requesting authority to take appropriate action if necessary for the protection of investors, other member organizations or covered persons, and the Exchange. The Exchange also believes that it is important for all exchanges to be able to take similar action to enforce its [sic] rules against manipulative conduct thereby leaving no exchange prey to such conduct. The Exchange does not believe that the proposed rule change imposes an undue burden on competition, rather this process will provide the Exchange with necessary means to enforce against violations of manipulative quoting and trading activity in an expedited manner, while providing member organizations or covered persons with the necessary due process. Finally, the proposed rule change is designed to enhance the Exchange's rules governing the release of disciplinary complaints, decisions and other information to the public, thereby providing greater clarity and consistency and resulting in less burdensome and more efficient regulatory compliance and facilitating performance of regulatory functions.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
A proposed rule change filed under Rule 19b-4(f)(6)
At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B)
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes (1) new Rules 5220—Equities and 996NY (Options) that define and prohibit two types of disruptive quoting and trading activity on the Exchange; (2) a new Rule 9560 governing supplemental expedited suspension proceedings; and (3) amendments to Rule 8313 to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560. The proposed rule change is available on the Exchange's Web site at
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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange proposes (1) a new Rule 5220—Equities (“Rule 5220”) and a new Rule 996NY (Options) that define and prohibits two types of disruptive quoting and trading activity on the Exchange; (2) a new Rule 9560 governing supplemental expedited suspension proceedings; and (3) amendments to Rule 8313 (Release of Disciplinary Complaints, Decisions and Other Information) to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560.
The proposed rule change is based on rules recently adopted by Bats BZX Exchange, Inc., formerly known as BATS Exchange, Inc. (“BATS”), and The Nasdaq Stock Market LLC (“NASDAQ”).
As a national securities exchange registered pursuant to Section 6 of the Act, the Exchange is required to be organized and to have the capacity to enforce compliance by its member organizations and persons associated with its member organizations, with the Act, the rules and regulations thereunder, and the Exchange's Rules.
In fulfilling these requirements, the Exchange has developed a comprehensive regulatory program that includes automated surveillance of trading activity operated directly by Exchange staff. When disruptive and potentially manipulative or improper quoting and trading activity is identified, the Exchange conducts an investigation into the activity and requests documents and information. To the extent violations of the Act, the rules and regulations thereunder, or Exchange Rules are identified, the Exchange will commence disciplinary proceedings, which could result in, among other things, a censure, a requirement to take certain remedial actions, one or more restrictions on future business activities, a monetary fine, or a temporary or permanent ban from the securities industry.
The process described above, from the identification of disruptive and potentially manipulative or improper quoting and trading activity to a final resolution of the matter, can often take several years. The Exchange believes that this time period sometimes is necessary and appropriate to afford adequate due process, particularly in complex cases. However, as described below, the Exchange believes that there are certain obvious and uncomplicated cases of disruptive and manipulative behavior or cases where the potential harm to investors is so large that the Exchange should have the authority to initiate an expedited suspension proceeding in order to stop the behavior from continuing on the Exchange. In recent years, several cases have been brought and resolved by the Exchange and other SROs involving allegations of wide-spread market manipulation, much of which was ultimately being conducted by foreign persons and entities using relatively rudimentary technology to access the markets and over which the Exchange and other SROs had no direct jurisdiction. In each case, the conduct involved a pattern of disruptive quoting and trading activity indicative of manipulative layering
The Exchange and other SROs were able to identify the disruptive quoting and trading activity in real-time or near real-time; nonetheless, the parties responsible for such conduct or responsible for their customers' conduct continued the disruptive quoting and trading activity on the Exchange and other exchanges during the entirety of the subsequent lengthy investigation and enforcement process. To supplement other Exchange Rules on which it may already rely to stop such activity from continuing, the Exchange believes that it should have additional authority to initiate expedited suspension proceedings in order to stop behavior from continuing on the Exchange if a member organization or a person associated with its member organization is engaging in or facilitating disruptive quoting and trading activity and the member organization or associated person has received sufficient notice with an opportunity to respond, but such activity has not ceased. The following examples involving the Exchange's affiliates the New York Stock Exchange LLC (“NYSE”) and NYSE Arca, Inc. (“NYSE Arca”), are instructive regarding the rationale for the proposed rule change.
In July 2012, Biremis Corp. (formerly Swift Trade Securities USA, Inc.) (“Biremis”) and its CEO were barred from the securities industry for, among other things, supervisory violations related to a failure by Biremis to detect and prevent disruptive and allegedly manipulative trading activities, including layering, short sale violations, and anti-money laundering violations.
In September of 2012, Hold Brothers On-Line Investment Services, Inc. (“Hold Brothers”) settled a regulatory action in connection with its provision of a trading platform, trade software and trade execution, support and clearing services for day traders.
The Exchange believes that the activities described in the cases above provide justification for the proposed rule change, which is described below.
The Exchange proposes to adopt new Rule 5220 of the Exchange's Equities Rules to define and prohibit disruptive quoting and trading activity on the Exchange. Proposed Rule 5220(a) would prohibit member organizations and covered persons
The Exchange proposes to adopt Rule 5220(b)(1) and (2) providing additional details regarding disruptive quoting and trading activity. Proposed Rule 5220(b)(1) would describe disruptive quoting and trading activity containing many of the elements indicative of layering. For purposes of the proposed Rule, disruptive quoting and trading activity would include a frequent pattern in which the following facts are present:
• A party enters multiple limit orders on one side of the market at various price levels (the “Displayed Orders”) (proposed Rule 5220(b)(1)(A)); and
• following the entry of the Displayed Orders, the level of supply and demand for the security changes (proposed Rule 5220(b)(1)(B)); and
• the party enters one or more orders on the opposite side of the market of the Displayed Orders (the “Contra-Side Orders”) that are subsequently executed (proposed Rule 5220(b)(1)(C)); and
• following the execution of the Contra-Side Orders, the party cancels the Displayed Orders (proposed Rule 5220(b)(1)(D)).
Proposed Rule 5220(b)(2) would describe disruptive quoting and trading activity containing many of the elements indicative of spoofing and would describe disruptive quoting and trading activity as a frequent pattern in which the following facts are present:
• A party narrows the spread for a security by placing an order inside the national best bid or offer (proposed Rule 5220(b)(2)(A)); and
• the party then submits an order on the opposite side of the market that executes against another market participant that joined the new inside market established by the order described in proposed (b)(2)(A) that narrowed the spread (proposed Rule 5220(b)(2)(B)).
The Exchange believes that the proposed descriptions of disruptive quoting and trading activity articulated in the rule are consistent with the activities that have been identified and described in the client access cases described above and with the rules of other SROs.
Proposed Rule 5220(c) would provide that, unless otherwise indicated, the descriptions of disruptive quoting and trading activity do not require the facts to occur in a specific order in order for the Rule to apply. For instance, with respect to the pattern defined in proposed Rule 5220(b)(1)(A)-(D), it is of no consequence whether a party first enters Displayed Orders and then Contra-side Orders or vice-versa. However, as proposed, it is required for supply and demand to change following the entry of the Displayed Orders.
The Exchange also proposes to make clear that disruptive quoting and trading activity includes a pattern or practice in which some portion of the disruptive quoting and trading activity is conducted on the Exchange and the other portions of the disruptive quoting and trading activity are conducted on one or more other exchanges. The Exchange believes that this authority is necessary to address market participants who would otherwise seek to avoid the prohibitions of the proposed Rule by spreading their activity amongst various execution venues.
The Exchange proposes to adopt a new Rule 996NY of the Options Rules that would be substantially the same as proposed Rule 5220 and would apply to NYSE Amex Options.
Like its equities counterpart, proposed Rule 996NY would define and prohibit disruptive quoting and trading activity on the Exchange. Proposed Rule 996NY(a) would prohibit ATP Holders or associated persons of ATP Holders
• A party enters multiple limit orders on one side of the market at various price levels (the “Displayed Orders”) (proposed Rule 996NY(b)(1)(A)); and
• following the entry of the Displayed Orders, the level of supply and demand for the security changes (proposed Rule 996NY(b)(1)(B)); and
• the party enters one or more orders on the opposite side of the market of the Displayed Orders (the “Contra-Side Orders”) that are subsequently executed (proposed Rule 996NY(b)(1)(C)); and
• following the execution of the Contra-Side Orders, the party cancels the Displayed Orders (proposed Rule 996NY(b)(1)(D)).
Proposed Rule 996NY(b)(2) would describe disruptive quoting and trading activity containing many of the elements indicative of spoofing and would describe disruptive quoting and trading activity as a frequent pattern in which the following facts are present:
• A party narrows the spread for a security by placing an order inside the national best bid or offer (proposed Rule 996NY(b)(2)(A)); and
• the party then submits an order on the opposite side of the market that executes against another market participant that joined the new inside market established by the order described in proposed (b)(2)(A) that narrowed the spread (proposed Rule 996NY(b)(2)(B)).
As with proposed Rule 5220, the Exchange believes that the proposed descriptions of disruptive quoting and trading activity articulated in Rule 996NY are consistent with the activities that have been identified and described in the client access cases described above and with the rules of other SROs.
Proposed Rule 996NY(c) would provide that, unless otherwise indicated, the descriptions of disruptive quoting and trading activity do not require the facts to occur in a specific order in order for the Rule to apply. The proposed Rule would also make clear that disruptive quoting and trading activity includes a pattern or practice in which some portion of the disruptive quoting and trading activity is conducted on the Exchange and the other portions of the disruptive quoting and trading activity are conducted on one or more other exchanges.
The Exchange proposes a new Rule 9560 for its Code of Procedure that would set forth procedures for issuing suspension orders, immediately prohibiting a member organization or covered person from conducting continued disruptive quoting and trading activity on the Exchange. Importantly, these procedures would also provide the Exchange the authority to order a member organization or covered person to cease and desist from providing access to the Exchange to a client that is conducting disruptive quoting and trading activity.
Under proposed paragraph (a)(1) of Rule 9560, with the prior written authorization of the Chief Regulatory Officer (“CRO”) or such other senior officers as the CRO may designate, the Exchange's Enforcement department may initiate an expedited suspension proceeding with respect to alleged violations of Rule 5220 or Rule 996NY (Disruptive Quoting and Trading Activity Prohibited).
Proposed paragraph (a) would also set forth the requirements for notice ((a)(2)) and service of such notice ((a)(3)) pursuant to the Rule, including the required method of service and the content of notice.
Proposed paragraph (b) of Rule 9560 would govern the appointment of a Hearing Panel as well as potential disqualification or recusal of Hearing Officers. The proposed provision is consistent with current Rule 9231(b), which governs the appointment of a hearing panel or extended hearing panel to conduct disciplinary proceedings. The Exchange's Rules provide for a Hearing Officer to be recused in the event he or she has a conflict of interest or bias or other circumstances exist where his or her fairness might reasonably be questioned in accordance with Rules [sic] 9233(a). In addition to recusal initiated by such a Hearing Officer, a party to the proceeding will be permitted to file a motion to disqualify a Hearing Officer. However, due to the compressed schedule pursuant to which the process would operate under Rule 9560, the proposed rule would require such motion to be filed no later than 5 days after the announcement of the Hearing Panel and the Exchange's brief in opposition to such motion would be required to be filed no later than 5 days after service thereof. Pursuant to existing Rule 9233(c), a motion for disqualification of a Hearing Officer shall be decided by the Chief Hearing Officer based on a prompt investigation. The applicable Hearing Officer shall remove himself or herself and request the Chief Executive Officer to reassign the hearing to another Hearing Officer such that the Hearing Panel still meets the compositional requirements described in Rule 9231(b). If the Chief Hearing Officer determines that the Respondent's grounds for disqualification are insufficient, it shall deny the Respondent's motion for disqualification by setting forth the reasons for the denial in writing and the Hearing Panel will proceed with the hearing.
Under paragraph (c)(1) of the proposed Rule, the hearing would be held not later than 15 days after service of the notice initiating the suspension proceeding, unless otherwise extended by the Chairman of the Hearing Panel with the consent of the Parties for good cause shown. In the event of a recusal or disqualification of a Hearing Officer, the hearing shall be held not later than five days after a replacement Hearing Officer is appointed.
Under paragraph (c)(2) of the proposed Rule, a notice of date, time, and place of the hearing shall be served on the Parties not later than seven days before the hearing, unless otherwise ordered by the Chairman of the Hearing Panel. Under the proposed Rule, service shall be made by personal service or overnight commercial courier and shall be effective upon service.
Proposed paragraph (c) would also govern how the hearing is conducted, including the authority of Hearing Officers ((c)(3), witnesses ((c)(4)), additional information that may be required by the Hearing Panel ((c)(5)), the requirement that a transcript of the proceeding be created and details related to such transcript ((c)(6)), and details regarding the creation and maintenance of the record of the proceeding ((c)(7)). Proposed paragraph (c)(8) would also provide that if a Respondent fails to appear at a hearing for which it has notice, the allegations in the notice and accompanying declaration may be deemed admitted, and the Hearing Panel may issue a suspension order without further proceedings. Finally, as proposed, if the Exchange fails to appear at a hearing for which it has notice, the Hearing Panel may order that the suspension proceeding be dismissed.
Under paragraph (d)(1) of the proposed Rule, the Hearing Panel would be required to issue a written decision stating whether a suspension order would be imposed. The Hearing Panel would be required to issue the decision not later than 10 days after receipt of the hearing transcript, unless otherwise extended by the Chairman of the Hearing Panel with the consent of the Parties for good cause shown. The proposed Rule would state that a suspension order shall be imposed if the Hearing Panel finds by a preponderance of the evidence that the alleged violation specified in the notice has occurred and that the violative conduct or continuation thereof is likely to result in significant market disruption or other significant harm to investors.
Proposed paragraph (d)(2) would also describe the content, scope and form of a suspension order. As proposed, a suspension order shall be limited to ordering a Respondent to cease and desist from violating proposed Rule 5220, and/or to ordering a Respondent to cease and desist from providing access to the Exchange to a client of Respondent that is causing violations of proposed Rule 5220 ((d)(2)(A)). Under the proposed rule, a suspension order shall also set forth the alleged violation and the significant market disruption or other significant harm to investors that is likely to result without the issuance of an order ((d)(2)(B)). The order shall describe in reasonable detail the act or acts the Respondent is to take or refrain from taking, and suspend such Respondent unless and until such action is taken or refrained from
As proposed, under proposed paragraph (d)(3), a suspension order would remain effective and enforceable unless modified, set aside, limited, or revoked pursuant to proposed paragraph (e), as described below.
Finally, paragraph (d)(4) would require service of the Hearing Panel's decision and any suspension order consistent with other portions of the proposed rule related to service.
Proposed paragraph (e) of Rule 9560 would provide that at any time after the Hearing Officers served the Respondent with a suspension order, a Party could apply to the Hearing Panel to have the order modified, set aside, limited, or revoked. If any part of a suspension order is modified, set aside, limited, or revoked, proposed paragraph (e) of Rule 9560 provides the Hearing Panel discretion to leave the cease and desist part of the order in place. For example, if a suspension order suspends Respondent unless and until Respondent ceases and desists providing access to the Exchange to a client of Respondent, and after the order is entered the Respondent complies, the Hearing Panel is permitted to modify the order to lift the suspension portion of the order while keeping in place the cease and desist portion of the order. With its broad modification powers, the Hearing Panel also maintains the discretion to impose conditions upon the removal of a suspension—for example, the Hearing Panel could modify an order to lift the suspension portion of the order in the event a Respondent complies with the cease and desist portion of the order but additionally order that the suspension will be re-imposed if Respondent violates the cease and desist provisions modified order in the future. The Hearing Panel generally would be required to respond to the request in writing within 10 days after receipt of the request. An application to modify, set aside, limit or revoke a suspension order would not stay the effectiveness of the suspension order.
Proposed paragraph (f) would describe the call for review process by the Exchange Board of Directors. Specifically, the proposed Rule would provide that if there is no pending application to the Hearing Panel to have a suspension order modified, set aside, limited, or revoked, the Exchange Board of Directors, in accordance with Rule 9310 (Review by Exchange Board of Directors), may call for review the Hearing Panel decision on whether to issue a suspension order. Further, the proposed Rule would provide that a call for review by the Exchange Board of Directors shall not stay the effectiveness of a suspension order.
Finally, proposed paragraph (g) would provide that sanctions issued under the proposed Rule 9560 would constitute final and immediately effective disciplinary sanctions imposed by the Exchange, and that the right to have any action under the Rule reviewed by the Commission would be governed by Section 19 of the Act. The filing of an application for review would not stay the effectiveness of a suspension order unless the Commission otherwise ordered.
Finally, the Exchange proposes amendments to Rule 8313 to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560. Specifically, the Exchange proposes to amend Rule 8313(a)(3), which provides that the Exchange shall release to the public information with respect to any suspension, cancellation, expulsion, or bar that constitutes final Exchange action imposed pursuant various Exchange Rules, to include a reference to proposed Rule 9560. The Exchange also proposes to include a notice of the initiation of a suspension proceeding served pursuant to proposed Rule 9560 in the definition of “disciplinary complaint” under Rule 8313(e)(1). Similarly, the Exchange would include suspension orders issued pursuant to proposed Rule 9560 in the definition of “disciplinary decision” under Rule 8313(e)(2). The proposed amendments to Rule 8313 are consistent with the FINRA Rule 8313 and the rules of the other SROs modeled on FINRA Rule 8313.
In summary, proposed Rule 5220 and Rule 996NY, coupled with proposed Rule 9560, would provide the Exchange with another form and means of authority to promptly act to prevent disruptive quoting and trading activity from continuing on the Exchange. The following example illustrates how the proposed rule would operate.
Assume that through its surveillance program, Exchange staff identifies a pattern of potentially disruptive quoting and trading activity. After an initial investigation, the Exchange would contact the member organization or covered person responsible for the orders that caused the activity to request an explanation of the activity as well as any additional relevant information, including the source of the activity. If the Exchange were to continue to see the same pattern from the same member organization or covered person and the source of the activity is the same or has been previously identified as a frequent source of disruptive quoting and trading activity then the Exchange could initiate an expedited suspension proceeding by serving notice on the member organization or covered person that would include details regarding the alleged violations as well as the proposed sanction.
In such a case the proposed sanction would likely be to order the member organization or covered person to cease and desist providing access to the Exchange to the client that is responsible for the disruptive quoting and trading activity and to suspend such member organization or covered person unless and until such action is taken. The member organization or covered person would have the opportunity to be heard in front of a Hearing Panel at a hearing to be conducted within 15 days of the notice. If the Hearing Panel determined that the violation alleged in the notice did not occur or that the conduct or its continuation would not have the potential to result in significant market disruption or other significant harm to investors, then the Hearing Panel would dismiss the suspension order proceeding. If the Hearing Panel determined that the violation alleged in the notice did occur and that the conduct or its continuation is likely to result in significant market disruption or other significant harm to investors, then the Hearing Panel would issue the order including the proposed sanction, ordering the member organization or covered person to cease providing access to the client at issue and suspending such Member unless and until such action is taken.
If such member organization or covered person wished for the suspension to be lifted because the client ultimately responsible for the activity no longer would be provided access to the Exchange, then such member organization or covered person could apply to the Hearing Panel to have the order modified, set aside, limited or revoked. The Exchange notes that the issuance of a suspension order would not alter the Exchange's ability to further investigate the matter and/or later sanction the member or member organization pursuant to the Exchange's standard disciplinary process for supervisory violations or other violations of Exchange rules or the Act.
The Exchange reiterates that it already has broad authority to take action
The Exchange recognizes that its proposed authority to issue a suspension order is a powerful measure that should be used very cautiously. Consequently, the proposed rules have been designed to ensure that the proceedings are used to address only the most clear and serious types of disruptive quoting and trading activity and that the interests of respondents are protected. For example, to ensure that proceedings are used appropriately and that the decision to initiate a proceeding is made only at the highest staff levels, the proposed rules require the CRO or another senior officer of the Exchange to issue written authorization before the Exchange can institute an expedited suspension proceeding. In addition, the rule by its terms is limited to violations of proposed Rule 5220 or Rule 996NY, when necessary to protect investors, other member organizations or covered persons, and the Exchange.
Further, the Exchange believes that the proposed expedited suspension provisions described above that provide the opportunity to respond as well as a Hearing Panel determination prior to taking action will ensure that the Exchange would not utilize its authority in the absence of a clear pattern or practice of disruptive quoting and trading activity. Notwithstanding the adoption of the proposed rules along with existing disciplinary rules in the 9000 series, the Exchange also notes that that pursuant to Rule 9555(a)(2) (Failure to Meet the Eligibility or Qualification Standards or Prerequisites for Access to Services), if a member organization or covered person cannot continue to have access to services offered by the Exchange or a member thereof with safety to investors, creditors, members, or the Exchange, the Exchange may provide written notice to such member or person limiting or prohibiting access to services offered by the Exchange or a member thereof. This ability to impose a temporary restriction upon Members assists the Exchange in maintaining the integrity of the market and protecting investors and the public interest.
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
Further, the Exchange believes that the proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act,
As noted throughout this filing, the Exchange believes that these rule proposals are necessary for the protection of investors rather than allowing disruptive quoting and trading activity to occur for several years. The Exchange believes that the pattern of disruptive and allegedly manipulative quoting and trading activity was widespread across multiple exchanges, and the Exchange, FINRA, and other SROs identified clear patterns of the behavior in 2007 and 2008 in the equities markets.
The Exchange believes that the proposal is also consistent with Section 6(b)(7) of the Act,
Finally, the Exchange believes that amending Rule 8313 to permit release to the public of suspension notices and orders issued pursuant to proposed Rule 9560 furthers the objectives of Section 6(b)(5) of the Act
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. To the contrary, the Exchange believes that each self-regulatory organization should be empowered to regulate trading occurring on their [sic] market consistent with the Act and without regard to competitive issues. The Exchange is requesting authority to take appropriate action if necessary for the protection of investors, other member organizations or covered persons, and the Exchange. The Exchange also believes that it is important for all exchanges to be able to take similar action to enforce its [sic] rules against manipulative conduct thereby leaving no exchange prey to such conduct. The Exchange does not believe that the proposed rule change imposes an undue burden on competition, rather this process will provide the Exchange with necessary means to enforce against violations of manipulative quoting and trading activity in an expedited manner, while providing member organizations or covered persons with the necessary due process. Finally, the proposed rule change is designed to enhance the Exchange's rules governing the release of disciplinary complaints, decisions and other information to the public, thereby providing greater clarity and consistency and resulting in less burdensome and more efficient regulatory compliance and facilitating performance of regulatory functions.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
A proposed rule change filed under Rule 19b-4(f)(6)
At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B)
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to amend the Schedule of Fees to assess fees for SQF and SQF Purge Ports that members will use to connect to the Exchange.
The text of the proposed rule change is available on the Exchange's Web site at
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.
The Exchange proposes amending the Schedule of Fees to increase fees for Specialized Quote Feed (“SQF”)
A reference to “Exchange” is being removed from the Schedule of Fees as the reference is extraneous.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The Exchange believes that it is reasonable to increase the SQF and SQF Purge Port fees at this time because the GEMX INET migration is complete and the Exchange desires to recoup costs associated with supporting its architecture. The Exchange initially offered these ports free of cost to aid in the migration of the Exchange's trading system to the INET technology. Today, the Bats BZX Exchange, Inc. (“BATS BZX”) assesses $1,500 to its market makers for Ports with Bulk Quoting Capabilities.
The Exchange believes that it is equitable and not unfairly discriminatory to increase the SQF and SQF Purge Port fees to $1,250 per port, per month because all Market Makers would be uniformly assessed the same SQF and SQF Purge Port Fees. The Exchange will also uniformly apply the proposed $12,500 per month cap to Market Makers utilizing SQF and SQF Purge Ports. No Market Maker who utilizes more than 10 SQF or SQF Purge Ports will be assessed a fee beyond the 10 ports.
Finally, removing the extraneous reference to “Exchange” will bring clarity to the rule text.
In accordance with Section 6(b)(8) of the Act,
The Exchange operates in a highly competitive market in which market participants can readily direct their order flow to competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed fee changes reflect this competitive environment.
No written comments were either solicited or received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Section 31 of the Securities Exchange Act of 1934 (“Exchange Act”) requires each national securities exchange and national securities association to pay transaction fees to the Commission.
Section 31 of the Exchange Act requires the Commission to annually adjust the fee rates applicable under Sections 31(b) and (c) to a uniform adjusted rate.
The Commission is required to publish notice of the new fee rates under Section 31 not later than 30 days after the date on which an Act making a regular appropriation for the applicable fiscal year is enacted.
The new fee rate is determined by (1) subtracting the sum of fees estimated to be collected prior to the effective date of the new fee rate
The regular appropriation to the Commission for fiscal year 2017 is $1,605,000,000. The Commission estimates that it will collect $1,189,634,934 in fees for the period prior to the effective date of the new fee rate and $65,181 in assessments on
The uniform adjusted rate is computed by dividing the residual fees to be collected of $415,299,885 by the estimated aggregate dollar amount of covered sales for the remainder of fiscal year 2017 of $17,994,658,216,678; this results in a uniform adjusted rate for fiscal year 2017 of $23.10 per million.
Under Section 31(j)(4)(A) of the Exchange Act, the fiscal year 2017 annual adjustments to the fee rates applicable under Sections 31(b) and (c) of the Exchange Act shall take effect on the later of October 1, 2016, or 60 days after the date on which a regular appropriation to the Commission for fiscal year 2017 is enacted.
Accordingly, pursuant to Section 31 of the Exchange Act,
By the Commission.
This appendix provides the methodology for determining the annual adjustment to the fee rates applicable under Sections 31(b) and (c) of the Exchange Act for fiscal year 2017. Section 31 of the Exchange Act requires the fee rates to be adjusted so that it is reasonably likely that the Commission will collect aggregate fees equal to its regular appropriation for fiscal year 2017.
To make the adjustment, the Commission must project the aggregate dollar amount of covered sales of securities on the securities exchanges and certain over-the-counter (“OTC”) markets over the course of the year. The fee rate equals the ratio of the Commission's regular appropriation for fiscal year 2017 (less the sum of fees to be collected during fiscal year 2017 prior to the effective date of the new fee rate and aggregate assessments on security futures transactions during all of fiscal year 2017) to the estimated aggregate dollar amount of covered sales for the remainder of the fiscal year following the effective date of the new fee rate.
For 2017, the Commission has estimated the aggregate dollar amount of covered sales by projecting forward the trend established in the previous decade. More specifically, the dollar amount of covered sales was forecasted for months subsequent to March 2017, the last month for which the Commission has data on the dollar volume of covered sales.
The following sections describe this process in detail.
First, calculate the average daily dollar amount of covered sales (“ADS”) for each month in the sample (February 2007-March 2017). The monthly total dollar amount of covered sales (exchange plus certain OTC markets) is presented in column C of Table A.
Next, model the monthly change in the natural logarithm of ADS as a first order autoregressive process (“AR(1)”), including monthly indicator variables to control for seasonality.
Use the estimated AR(1) model to forecast the monthly change in the log level of ADS. These percent changes can then be applied to obtain forecasts of the total dollar volume of covered sales. The following is a more formal (mathematical) description of the procedure:
1. Begin with the monthly data for total dollar volume of covered sales (column C). The sample spans ten years, from February 2007-March 2017.
2. For each month
3. Estimate the AR(1) model
4. For the first month calculate the forecasted value of the log growth rate of ADS as
7. For May 2017, proceed in a similar fashion. Using the estimates for April 2017 along with the
8. Repeat this procedure for subsequent months.
1. Use Table A to estimate fees collected for the period October 1, 2016 through July 3, 2017. The projected aggregate dollar amount of covered sales for this period is $54,570,409,807,040. Actual and projected fee collections at the current fee rate of $21.80 per million are $1,189,634,934.
3. Subtract the amounts $1,189,634,934 and $65,181 from the target off-setting collection amount set by Congress of $1,605,000,000, leaving $415,299,885 to be collected on dollar volume for the period July 4, 2017 through September 30, 2017.
4. Use Table A to estimate dollar volume for the period July 4, 2017 through September 30, 2017. The estimate is $17,994,658,216,678. Finally, compute the fee rate required to produce the additional $415,299,885 in revenue. This rate is $415,299,885 divided by $17,994,658,216,678 or 0.00002307906.
5. Round the result to the seventh decimal point, yielding a rate of 0.0000231 (or $23.10 per million).
This table summarizes the estimates of the aggregate dollar amount of covered sales, by time period. The figures in this table can be used to determine the new fee rate.
U.S. Small Business Administration.
Notice of open Federal Advisory Committee meetings.
The SBA is issuing this notice to announce the location, date, time and agenda for July and August meetings of the Federal Advisory Committee for the Small Business Development Centers Program. The meetings will be open to the public; however, advance notice of attendance is required.
All meetings will be held via conference call.
Monika Nixon, Office of Small Business Development Center, U.S. Small Business Administration, 409 Third Street SW., Washington, DC 20416;
If anyone wishes to be a listening participant or would like to request accommodations, please contact Monika Nixon at the information above.
Pursuant to section 10(a) of the Federal Advisory Committee Act (5 U.S.C. Appendix 2), SBA announces the meetings of the National SBDC Advisory Board. This Board provides advice and counsel to the SBA Administrator and Associate Administrator for Small Business Development Centers.
The purpose of the meetings is to discuss the following issues pertaining to the SBDC Program:
U.S. Small Business Administration.
Notice.
This is a notice of an Administrative declaration of a disaster for the State of Nevada dated 05/25/2017.
Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416, (202) 205-6734.
Notice is hereby given that as a result of the Administrator's disaster declaration, applications for disaster loans may be filed at the address listed above or other locally announced locations.
The following areas have been determined to be adversely affected by the disaster:
The Interest Rates are:
The number assigned to this disaster for physical damage is 15142B and for economic injury is 151430.
The States which received an EIDL Declaration # are Nevada, Idaho, Utah.
Department of State.
Notice of public meeting.
The Department of State will hold an information session regarding issues related to a July United Nations meeting concerning marine biodiversity in areas beyond national jurisdiction.
The meeting will be held on June 13, 2017, 2:00 p.m.-3:30 p.m.
The meeting will be held at the Harry S. Truman Main State Building, Room 3940, 2201 C Street NW., Washington, DC 20520.
If you would like to participate in this meeting, please send your (1) name, (2) organization/affiliation, (3) email address, and (4) phone number, as well as any requests for reasonable accommodation, to Elizabeth Kim at
In July 2017, the United States will participate in a two-week meeting of the United Nations General Assembly (UNGA) Preparatory Committee on the conservation and sustainable use of marine biological diversity beyond areas of national jurisdiction. This fourth meeting of the Preparatory Committee will end a two-year process established by the UNGA to make substantive recommendations on the elements of a draft text of a legally binding instrument on the conservation and sustainable use
We will provide a brief overview of topics to be discussed at the upcoming UN meeting and will listen to your comments, concerns, and questions about these issues. The information obtained from this meeting and any subsequent related meetings will be used to help us prepare for U.S. participation in international meetings and specifically U.S. participation in the July meeting of the Preparatory Committee. Documents and other information related to the Preparatory Committee can be found on this United Nations Web site:
Surface Transportation Board.
Notice.
The Board is publishing, and providing the public an opportunity to comment on, the 2016 weighted average state tax rates for each Class I railroad, as calculated by the Association of American Railroads (AAR), for use in the Revenue Shortfall Allocation Method (RSAM).
Comments are due by July 5, 2017. If any comment opposing AAR's calculation is filed, AAR's reply will be due by July 25, 2017. If no comments are filed by the due date, AAR's calculation of the 2016 weighted average state tax rates will be automatically adopted by the Board, effective July 6, 2017.
Comments may be submitted either via the Board's e-filing format or in traditional paper format. Any person using e-filing should attach a document and otherwise comply with the instructions at the E-FILING link on the Board's Web site at
Jonathon Binet, (202) 245-0368. Assistance for the hearing impaired is available through the Federal Information Relay Service (FIRS) at (800) 877-8339.
The RSAM figure is one of three benchmarks that together are used to determine the reasonableness of a challenged rate under the Board's
In
Any party wishing to comment on AAR's calculation of the 2016 weighted average state tax rates should file a comment by July 5, 2017.
By the Board, Rachel D. Campbell, Director, Office of Proceedings.
Federal Aviation Administration (FAA), DOT.
Request for public comments.
Notice is being given that the FAA is considering a request from the Town of Nantucket in Nantucket, MA, to change the current land use from aeronautical use to non-aeronautical use of a 5 acre parcel of land. The parcel is located in the northwestern quadrant of the airport and is adjacent to other non-airport parcels used for industrial and/or commercial use properties. The parcel is currently identified as surplus for non-aeronautical use on the airport's September 16, 2015 Airport Layout Plan. The parcel will be used to generate non-aeronautical revenue through the lease of land for industrial/commercial use. All revenues through the leasing of the parcel will continue to be subject to the FAA's revenue-use policy and dedicated to the maintenance and operation of Nantucket Memorial Airport.
Comments must be received on or before July 5, 2017.
You may send comments using any of the following methods:
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Interested persons may inspect the request and supporting documents by contacting the FAA at the address listed under
Mr. Jorge E. Panteli, Compliance and Land Use Specialist, Federal Aviation Administration New England Region Airports Division, 1200 District Avenue, Burlington, Massachusetts 01803. Telephone: 781-238-7618.
Federal Highway Administration (FHWA), DOT.
Notice of Intent to prepare a Supplemental Draft Environmental Impact Statement.
The FHWA in cooperation with the Alabama Department of Transportation (ALDOT), will prepare a limited scope Supplemental Draft Environmental Impact Statement (SDEIS) for the I-10 Mobile River Bridge and Bayway Widening project in Mobile and Baldwin Counties, Alabama. The Draft Environmental Impact Statement (DEIS) was approved by FHWA on July 22, 2014. The purpose of the SDEIS is to evaluate new information regarding environmental impacts and changes in project conditions that have occurred since the July 2014 DEIS.
Mr. Mark D. Bartlett, Division Administrator, Federal Highway Administration, 9500 Wynlakes Place, Montgomery, Alabama 36117; Email:
The FHWA, in cooperation with the ALDOT, will prepare a limited scope SDEIS in accordance with 23 CFR 771.130(f) and 40 CFR 1502.9 for the proposed project which includes increasing the capacity of Interstate Route 10 (I-10) by constructing a new bridge across the Mobile River and increasing the capacity of I-10 across Mobile Bay from four to eight lanes. The DEIS for the project was approved on July 22, 2014 (FHWA-AL-EIS-14-01-D). The DEIS evaluated a wide range of alternatives, including the No Build Alternative and four Build Alternatives. Alternative B was identified as the Preferred Alternative. Public Hearings were held on September 23 and September 29, 2014, following approval of the DEIS.
The purpose of the SDEIS is to identify changes, new information, and activities that have occurred in the project since the July 2014 DEIS. Based on coordination between FHWA and ALDOT, the issues to be addressed in the SDEIS will include, but are not limited to: Refinements in Alternative B', storm surge analysis, tolling as a funding mechanism, Section 4(f) Evaluation, Section 106 consultation, bicycle/pedestrian facilities, threatened and endangered species, ecological resources, hazardous materials, cultural resources surveys, and agency coordination and public outreach activities. The SDEIS will review information from the original DEIS, incorporate new information into the SDEIS, and update the impacts and analyses where changes have occurred since the DEIS was approved. The DEIS is available at:
The SDEIS will follow the same process and format as the original DEIS, except that scoping is not required. Following approval of the SDEIS, FHWA plans to issue a combined Final Environmental Impact Statement (FEIS)/Record of Decision (ROD).
Public involvement is a critical component of the National Environmental Policy Act (NEPA) project development process and will occur throughout the development of the environmental documents. Environmental documents will be made available for review by resources agencies and the public. Notification of the availability of the SDEIS for public and agency review will be made in the
Public Hearing(s) will be held following the availability of the SDEIS and as necessary. The Public Hearing(s) will be held in accessible locations and at convenient times. The Public Hearing(s) will be conducted by ALDOT and announced a minimum of 30 days in advance of the hearings. Individuals will be provided the opportunity to offer official comments by publicly expressing their views to representatives of ALDOT and others in attendance, privately to a court reporter, or by submitting written comments. The
The SDEIS will comply with other Federal and State requirements including the State Water Quality Certification under Section 401 of the Clean Water Act; protection of water quality under the National Pollutant Discharge Elimination System; protection of threatened and endangered species under Section 7 of the Endangered Species Act; and protection of cultural resources under Section 106 of the National Historic Preservation Act.
To ensure that a full range of issues related to this proposed action are addressed and all significant issues are identified, comments and suggestions are invited from interested parties. Comments or questions concerning this proposed action and the SDEIS should be directed to the FHWA representative at the address above.
23 U.S.C. 315; 23 CFR 771.
Federal Highway Administration, DOT.
Notice; request for comments.
The FHWA is seeking comments on two draft documents: (1) Transportation Asset Management Plan Development Processes Certification and Recertification Guidance, and (2) Transportation Asset Management Plan Consistency Determination Guidance. These documents provide implementation guidance on provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and the Asset Management Final Rule, which requires a State department of transportation (State DOT) to develop and implement a risk-based asset management plan. Under these authorities, FHWA must (1) certify that transportation asset management plan (TAMP) development processes established by a State DOT meet applicable requirements, and (2) make an annual consistency determination, evaluating whether a State DOT has developed and implemented a State-approved TAMP that meets all applicable requirements. This notice announces the availability of these draft documents on the online docket at the docket number for this notice.
Comments must be received on or before July 5, 2017.
To ensure that you do not duplicate your docket submissions, please submit all comments by only one of the following means:
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•
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For questions about this notice contact Mr. Stephen Gaj, FHWA Office of Infrastructure, (202) 366-1336, Federal Highway Administration, 1200 New Jersey Ave. SE., Washington, DC 20590, or via email at
Copies of the proposed Transportation Asset Management Plan Development Processes Certification and Recertification Guidance; and Consistency Determination Guidance are available online for download and public inspection online under the docket at the Federal eRulemaking portal at:
An electronic copy of this document may also be downloaded from Office of the Federal Register's home page at:
Under the asset management provisions enacted in MAP-21, codified at 23 U.S.C. 119, State DOTs must develop and implement a risk-based TAMP. This TAMP must include all National Highway System (NHS) pavements and bridges, regardless of whether the State or some other entity owns the relevant NHS facility.
The FHWA must take two actions with respect to State DOT asset management activities. The first is TAMP development process certification/recertification. Under 23 U.S.C. 119(e)(6), FHWA must certify at least every 4 years that the State DOT's processes for developing its TAMP are consistent with applicable requirements. The FHWA must also recertify whenever the State amends its TAMP development processes, in accordance with 23 CFR 515.13(c). The second FHWA action, under 23 U.S.C. 119(e)(5), is an annual consistency determination, which evaluates whether the State DOT has developed and implemented a TAMP that is consistent with the requirements of 23 U.S.C. 119. The FHWA adopted the asset management rule, 23 CFR part 515, to implement these and other asset management requirements. The FHWA Division Offices (Divisions) are responsible for making these two decisions on behalf of FWHA.
To assist State DOTs and Divisions with these requirements, the FHWA Office of Asset Management, Pavements, and Construction is seeking comment on the two draft guidance documents announced by this notice. Please note that any comments should be limited to these guidance documents; FHWA is not soliciting further comment on the Asset Management Final Rule.
The Transportation Asset Management Plan Development
23 U.S.C. 119; 23 CFR part 515; 49 CFR 1.85.
Federal Highway Administration (FHWA), DOT.
Notice of Limitation on Claims for Judicial Review of Actions by the California Department of Transportation (Caltrans), pursuant to 23 U.S.C. 327, and U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, National Park Service, and National Oceanic Atmospheric Administration National Marine Fisheries Service.
The FHWA, on behalf of Caltrans, is issuing this notice to announce actions taken by Caltrans, and U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, National Park Service, and National Oceanic Atmospheric Administration National Marine Fisheries Service that are final. The actions relate to a proposed highway project, U.S. Route 101 from Post Mile 1.1 to Post Mile 2.2 in the County of Humboldt, State of California. Those actions grant licenses, permits, and approvals for the project.
By this notice, the FHWA, on behalf of Caltrans, is advising the public of final agency actions subject to 23 U.S.C. 139(
Effective July 1, 2007, the Federal Highway Administration (FHWA) assigned, and the California Department of Transportation (Caltrans) assumed, environmental responsibilities for this project pursuant to 23 U.S.C. 327. Notice is hereby given that the Caltrans, and U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, National Park Service, and National Oceanic Atmospheric Administration National Marine Fisheries Service have taken final agency actions subject to 23 U.S.C. 139(
The U.S. Army Corp of Engineers decision and Nation Wide Permit are available by contacting the U.S. Army Corp of Engineers at the address provided above.
The U.S. Fish and Wildlife Service consultations and Letter of Concurrence are available by contacting the U.S. Fish and Wildlife Service at the address provided above.
The U.S. National Park Service National Scenic River consultation is available by contacting the National Park Service at the address provided above.
The U.S. NOAA National Marine Fisheries consultation and Letter of Concurrence are available by contacting U.S. N.O.A.A National Marine Fisheries at the address provided above.
The Section 4(f) consultation and Letter of Concurrence are available by contacting the California Department of Parks and Recreation at the address provided above.
This notice applies to all Federal agency decisions as of the issuance date of this notice and all laws under which such actions were taken, including but not limited to:
23 U.S.C. 139(
Maritime Administration
Notice.
The Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before July 5, 2017.
Comments should refer to docket number MARAD-2017-0098. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Bianca Carr, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-9309, Email
As described by the applicant the intended service of the vessel GUSTO! is:
The complete application is given in DOT docket MARAD-2017-0098 at
In accordance with 5 U.S.C. 553(c), DOT/MARAD solicits comments from the public to better inform its rulemaking process. DOT/MARAD posts these comments, without edit, to
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
The Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before July 5, 2017.
Comments should refer to docket number MARAD-2017-0099. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Bianca Carr, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-9309, Email
As described by the applicant the intended service of the vessel COCONUT is:
—
The complete application is given in DOT docket MARAD-2017-0099 at
In accordance with 5 U.S.C. 553(c), DOT/MARAD solicits comments from the public to better inform its rulemaking process. DOT/MARAD posts these comments, without edit, to
By Order of the Maritime Administrator.
National Highway Traffic Safety Administration, Department of Transportation (DOT).
Receipt of petition.
Arconic Wheel and Transportation Products, a business division of Arconic, Inc., formerly known as Alcoa, Inc. (Arconic), has determined that certain Alcoa aluminum wheels do not fully comply with Federal Motor Vehicle Safety Standard (FMVSS) No. 120,
The closing date for comments on the petition is July 5, 2017.
Interested persons are invited to submit written data, views, and arguments on this petition. Comments must refer to the docket and notice number cited in the title of this notice and submitted by any of the following methods:
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• Comments may also be faxed to (202) 493-2251.
Comments must be written in the English language, and be no greater than 15 pages in length, although there is no limit to the length of necessary attachments to the comments. If comments are submitted in hard copy form, please ensure that two copies are provided. If you wish to receive confirmation that comments you have submitted by mail were received, please enclose a stamped, self-addressed postcard with the comments. Note that all comments received will be posted without change to
All comments and supporting materials received before the close of business on the closing date indicated above will be filed in the docket and will be considered. All comments and supporting materials received after the closing date will also be filed and will be considered to the fullest extent possible.
When the petition is granted or denied, notice of the decision will also be published in the
All comments, background documentation, and supporting materials submitted to the docket may be viewed by anyone at the address and times given above. The documents may also be viewed on the Internet at
DOT's complete Privacy Act Statement is available for review in a
I.
This notice of receipt of Arconic's petition is published under 49 U.S.C. 30118 and 30120 and does not represent any agency decision or other exercise of judgment concerning the merits of the petition.
II.
III.
IV.
S5.2 Rim marking. Each rim or, at the option of the manufacturer in the case of a single-piece wheel, wheel disc shall be marked with the information listed in paragraphs (a) through (e) of this paragraph, in lettering not less than 3 millimeters high, impressed to a depth or, at the option of the manufacturer, embossed to a height of not less than 0.125 millimeters . . .
(b) The rim size designation, and in case of multipiece rims, the rim type designation. For example: 20x5.50, or 20x5.5.
V.
In support of its petition, Arconic submitted the following reasoning:
1. If the mounting technician relied solely on the incorrectly stated 24.5″ diameter stamped on the rim and tried to mount a 24.5″ x 8.25″ tire, the tire will not inflate. Therefore, it would be obvious to the mounting technician that there is a tire/rim mismatch, because the air will immediately escape during inflation and no tire/rim seal will ever be achieved. Heavy-duty truck rim diameter sizes in the U.S. market are in increments 19.5″, 22.5″ and 24.5″, so any tire diameter other than 22.5″ will simply not mount and/or inflate on the mismarked 24.5″ rim.
2. All product literature that accompanies the mislabeled 24.5″ x 8.25″ aluminum wheels correctly identifies the wheel as having a 22.5″ diameter. The part number stamped on the wheels correctly associates the wheels in catalogs (hard copy and electronic) as having a 22.5″ diameter. The vast majority of the affected wheels were sold for assembly on new heavy-duty semi-tractors and it is believed the certification label, tire pressure placard and all other literature accompanying the vehicle correctly states the required wheel diameter as 22.5″.
3. The vast majority of the affected wheels were sold for assembly on new heavy-duty semi-tractors, which means the selection of tires and wheels during assembly does not require reliance on the actual size markings on the wheel. Rather, this selection is based upon part number matching during the tire/wheel subassembly process, and the part number descriptions correctly reflect the actual wheel size of 22.5″ x 8.25″. Only one manufacturer, a trailer manufacturer, actually noticed the mismarking of the rim diameter. The remaining manufacturers that undertook tire and rim assembly were unaffected by rim mismarking.
4. If a vehicle owner or operator must replace one of the affected rims they would most likely go to a facility that is familiar with tire/wheel replacements for heavy-duty trucks. Pursuant to 29 CFR 1910.177(c) (Employee Training), federal regulations require that only trained technicians are permitted to mount tires and wheels on heavy-duty vehicles and it should be obvious to the technician when a wheel marking is overstated by 2″.
5. For rims that have an obvious incorrect size marking stamped into the wheel, the technician will have to rely on another source for the correct rim size including, when applicable, the certification label, tire pressure placard or any other literature to determine the correct wheel and tire size for the replacement.
6. Because a tire/rim seal cannot be achieved with an overstated 2″ rim diameter, there is no risk to the technician during attempted tire mounting operations.
7. All other roll stamp rim marking information on the subject rims required by S5.2 of FMVSS No. 120 is correct. The rim is marked with the correct rim width, manufacturer, date of manufacture, and DOT.
8. The agency has previously found to be inconsequential a noncompliance with the rim marking requirements of FMVSS No. 110
9. Arconic is not aware of any crashes or injuries associated with this roll stamp rim marking issue.
Arconic states that they have corrected the roll stamp for all future production.
Arconic concluded by expressing the belief that the subject noncompliance is inconsequential as it relates to motor vehicle safety, and that its petition to be exempted from providing notification of the noncompliance, as required by 49 U.S.C. 30118, and a remedy for the noncompliance, as required by 49 U.S.C. 30120, should be granted.
NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and 30120(h)) that permit manufacturers to file petitions for a determination of inconsequentiality allow NHTSA to exempt manufacturers only from the duties found in sections 30118 and 30120, respectively, to notify owners, purchasers, and dealers of a defect or noncompliance and to remedy the defect or noncompliance. Therefore, any decision on this petition only applies to the subject wheels that Arconic no longer controlled at the time it determined that the noncompliance existed. However, any decision on this petition does not relieve equipment distributors and dealers of the prohibitions on the sale, offer for sale, or introduction or delivery for introduction into interstate commerce of the noncompliant wheels under their control after Arconic notified them that the subject noncompliance existed.
(49 U.S.C. 30118, 30120: delegations of authority at 49 CFR 1.95 and 501.8)
National Highway Traffic Safety Administration, Department of Transportation (DOT).
Receipt of petition.
Cooper Tire & Rubber Company (Cooper), has determined that certain Cooper Mastercraft Courser HSX Tour brand tubeless radial tires do not fully comply with Federal Motor Vehicle Safety Standard (FMVSS) No. 139,
The closing date for comments on the petition is July 5, 2017.
Interested persons are invited to submit written data, views, and arguments on this petition. Comments must refer to the docket and notice number cited in the title of this notice and submitted by any of the following methods:
•
•
•
• Comments may also be faxed to (202) 493-2251.
Comments must be written in the English language, and be no greater than 15 pages in length, although there is no limit to the length of necessary attachments to the comments. If comments are submitted in hard copy form, please ensure that two copies are provided. If you wish to receive confirmation that comments you have submitted by mail were received, please enclose a stamped, self-addressed postcard with the comments. Note that all comments received will be posted without change to
All comments and supporting materials received before the close of business on the closing date indicated above will be filed in the docket and will be considered. All comments and supporting materials received after the closing date will also be filed and will be considered to the fullest extent possible.
When the petition is granted or denied, notice of the decision will also be published in the
All comments, background documentation, and supporting materials submitted to the docket may be viewed by anyone at the address and times given above. The documents may also be viewed on the Internet at
DOT's complete Privacy Act Statement is available for review in a
I.
This notice of receipt of Cooper's petition is published under 49 U.S.C. 30118 and 30120 and does not represent any agency decision or other exercise of judgment concerning the merits of the petition.
II.
III.
IV.
S5.5.1
. . .
(b)
V.
In support of its petition, Cooper submitted the following reasoning:
a) While the 484 tires in the subject population contain an improper plant code on the inboard side of the tire, they are in all other respects properly labeled and meet all performance requirements under the Federal Motor Vehicle Safety Standards. Plant code identification has no bearing on the performance or operation of a tire and does not create a safety concern to either the operator of the vehicle on which the tires are mounted, or the safety of personnel in the tire repair, retread and recycle industry.
b) Tire registration and traceability could be a concern in some instances where there are plant code errors; however, in this instance, the incorrect plant code is still tied to a Cooper Tire manufacturing facility. Consumers will be able to accurately identify the responsible manufacturer and there will be no issues with registering the tires. Cooper Tire has modified its internal registration systems to allow for the proper registration of the affected tires. Cooper Tire accepts tire registration in a number of ways including electronically via the company's Web site. Cooper Tire's online database has been modified to accept registrations from consumers which include an incorrectly listed UP plant code when the other identifying information (brand, serial week) are accurately reported. Cooper Tire also accepts hard copy tire registration cards, which it processes manually. As long as the remaining identifying information (brand, serial and week) are listed accurately on the registration card, Cooper Tire will process the registration. All internal personnel responsible for manual processing of tire registration cards have been made aware of the plant code error and have been trained on how to accurately process and register tires with the
c) In the event Cooper Tire has to conduct a safety related recall in connection with the 484 subject tires, Cooper Tire will include TINs UT Yl FXJ 1017 to 1117 and UP Yl FXJ 1017 to 1117 in its recall universe, so that there will be no issues with regard to identifying the recall population. Should Cooper Tire receive any affected tires in its service facilities for adjustments, the service technician will record the proper TIN number to accurately record the data.
d) Cooper Tire has taken steps over the last year to add additional checks in its processes to prevent TIN errors. One of those checks includes implementing software that only allows for the plant to choose the plant code from a drop down menu that includes only its specific plant code. In this instance, however, the molds were transferred from one Cooper Tire facility (Findlay) to another (Texarkana). The Texarkana employee responsible for preparing the mold for use in the Texarkana facility only modified the mold on one side and the error went undetected. The mold containing the error was in production from March 6th through March 15th and when the error was detected on March 30th, the plug error was corrected in the mold to prevent future issues. Responsible Cooper Tire personnel will receive additional training on these processes.
Cooper concluded by expressing the belief that the subject noncompliance is inconsequential as it relates to motor vehicle safety, and that its petition to be exempted from providing notification of the noncompliance, as required by 49 U.S.C. 30118, and a remedy for the noncompliance, as required by 49 U.S.C. 30120, should be granted.
NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and 30120(h)) that permit manufacturers to file petitions for a determination of inconsequentiality allow NHTSA to exempt manufacturers only from the duties found in sections 30118 and 30120, respectively, to notify owners, purchasers, and dealers of a defect or noncompliance and to remedy the defect or noncompliance. Therefore, any decision on this petition only applies to the subject tires that Cooper no longer controlled at the time it determined that the noncompliance existed. However, any decision on this petition does not relieve equipment distributors and dealers of the prohibitions on the sale, offer for sale, or introduction or delivery for introduction into interstate commerce of the noncompliant tires under their control after Cooper notified them that the subject noncompliance existed.
(49 U.S.C. 30118, 30120: delegations of authority at 49 CFR 1.95 and 501.8)
Office of the Comptroller of the Currency (OCC), Treasury.
Notice and request for comment.
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to take this opportunity to comment on a continuing information collection as required by the Paperwork Reduction Act of 1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning the renewal of its information collection titled “Community Reinvestment Act Regulations.”
Comments must be submitted on or before August 4, 2017.
Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557-0160, 400 7th Street SW., Suite 3E-218, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465-4326 or by electronic mail to
All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.
Shaquita Merritt, OCC Clearance Officer, (202) 649-5490 or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from OMB for each collection of information that they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of title 44 requires federal agencies to provide a 60-day notice in the
Each agency must provide written CRA performance evaluations (CRA PE) of the institutions they supervise. The CRA PEs are disclosed to the public. The public portion of each written CRA PE must present the agency's conclusions with respect to the CRA performance standards identified in its regulations; including the facts and data supporting those conclusions; and contain the institution's CRA rating and the basis for that rating.
The reporting, recordkeeping, and disclosure requirements in the CRA regulations are necessary, as they provide the Agencies with the information they need to examine, assess, and assign ratings reflecting institutions' CRA performance and to prepare the public section of the CRA PE.
The OCC's CRA regulation, 12 CFR 25, applies to national banks, including federal branches, as those are defined in 12 CFR 28, with federally insured deposits, except as provided in 12 CFR 25.11, (collectively, banks). Similarly, the OCC's CRA regulation, 12 CFR 195, applies to savings associations, except as provided in 12 CFR 195.11.
Twelve CFR 25.25(b) and 195.25(b) provide that requests for designation as a wholesale or limited purpose bank or savings association must be made in writing with the OCC at least three months prior to the proposed effective date of the designation.
Twelve CFR 25.27 and 195.27 provide for optional submission of strategic plans to the OCC for approval. If the requirements of 12 CFR 25.27(a) or 195.27(a), respectively, are met, institutions' records of helping to meet the credit needs of their assessment areas will be assessed under their approved strategic plans.
Twelve CFR 25.42(a) and 195.42(a) require that large banks and savings associations
Twelve CFR 25.42(b)(2) and 195.42(b)(2) require that large banks and savings associations report annually in machine readable form the aggregate number and aggregate amount of community development loans originated or purchased.
Twelve CFR 25.42(b)(3) and 195.42(b)(3) require that large banks and savings associations, if subject to reporting under 12 CFR 1003 (Home Mortgage Disclosure (Regulation C)), must report the location of each home mortgage loan application, origination, or purchase outside the metropolitan statistical area(s) in which the bank or savings association has a home/branch office, and the location of each home mortgage loan application, origination, or purchase outside any metropolitan statistical area, in accordance with the requirements of Regulation C.
Twelve CFR 25.42(c)(1) and 195.42(c)(1) provide that all banks and savings associations may collect and maintain in machine readable form certain data for consumer loans originated or purchased by a bank or savings association for consideration under the lending test. Under 12 CFR 25.42(c)(2) and 195.42(c)(2), all banks and saving associations may include other information concerning their lending performance, including additional loan distribution data.
Twelve CFR 25.42(d) and 195.42(d) provide that banks and savings associations that elect to have the OCC consider loans by an affiliate, for purposes of the lending or community development test or an approved strategic plan, shall collect, maintain, and report the data that the bank or savings association would have collected, maintained, and reported pursuant to 12 CFR 25.42(a)-(c) or 195.42(a)-(c), respectively, had the loans been originated or purchased by the bank or savings association. For home mortgage loans, the bank or savings association must also be prepared to identify the home mortgage loans reported under HMDA by the affiliate.
Twelve 12 CFR 25.42(e) and 195.42(e) provide that banks and savings associations that elect to have the OCC consider community development loans by a consortium or a third party, for purposes of the lending or community development tests or an approved strategic plan, must report for those loans the data that the bank or savings association would have reported under 12 CFR 25.42(b)(2) or 195.42(b)(2), respectively, had the loans been originated or purchased by the bank or savings association.
Twelve CFR 25.42(g) and 195.42(g) require that banks and savings associations, except those that were a small bank or small savings association
Twelve CFR 25.43 and 195.43 generally require that all banks and savings associations maintain a public file that contains: All written comments and responses; a copy of the public section of the bank's or savings association's most recent CRA performance evaluation; a list of the bank's or savings association's branches; a list of the branches opened or closed; a list of services offered; and a map of each assessment area delineated by the bank or savings association under 12 CFR 25.41 or 195.41, respectively. Certain banks and savings associations must include: A copy of their approved strategic plan and a description of the current efforts to improve their performance in helping to meet the credit needs of its entire community. Certain large banks and savings associations must include in their public files (for prior two years): Consumer loan data; CRA Disclosure Statements; and Home Mortgage Disclosure Act (HMDA) Disclosure Statements. Small banks and savings associations must include their loan-to-deposit ratio for each quarter of the prior calendar year and, at their option, additional data on its loan-to-deposit ratio.
Comments submitted in response to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a) Whether the collection of information is necessary for the proper performance of the functions of the OCC, including whether the information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the information collection;
(c) Ways to enhance the quality, utility, and clarity of the information to be collected;
(d) Ways to minimize the burden of the collection on respondents, including
(e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
Office of the Comptroller of the Currency (OCC), Treasury.
Notice and request for comment.
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to take this opportunity to comment on a continuing information collection as required by the Paperwork Reduction Act of 1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning the renewal of its information collection titled “Capital Adequacy Standards.” The OCC also is giving notice that it has submitted the collection to OMB for review.
Comments must be submitted on or before July 5, 2017.
Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557-0318, 400 7th Street SW., Suite 3E-218, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465-4326 or by electronic mail to
All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.
Additionally, please send a copy of your comments by mail to: OCC Desk Officer, 1557-0318, U.S. Office of Management and Budget, 725 17th Street NW., #10235, Washington, DC 20503 or by email to
Shaquita Merritt, OCC Clearance Officer, (202) 649-5490 or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from OMB for each collection of information that they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. The OCC is asking that OMB extend its approval of the following collection:
Twelve CFR part 3 sets forth the OCC's minimum capital requirements and overall capital adequacy standards for national banks and federal savings associations (institutions).
Section 3.3(c) allows for the recognition of netting across multiple types of transactions or agreements if an institution obtains a written legal opinion verifying the validity and enforceability of the agreement under certain circumstances and maintains sufficient written documentation of this legal review.
Section 3.22(h)(2)(iii)(A) permits the use of a conservative estimate of the amount of an institution's investment in its own capital or the capital of unconsolidated financial institutions held through the index security with prior approval by the OCC.
Section 3.35(b)(3)(i)(A) requires, for a cleared transaction with a qualified central counterparty (QCCP), that a client bank apply a risk weight of two percent, provided that the collateral posted by the bank to the QCCP is subject to certain arrangements and the client bank has conducted a sufficient legal review (and maintains sufficient written documentation of the legal review) to conclude with a well-founded basis that the arrangements, in the event of a legal challenge, would be found to be legal, valid, binding, and enforceable under the law of the relevant jurisdictions.
Section 3.37(c)(4)(i)(E), regarding collateralized transactions, requires that an institution have policies and procedures in place describing how it determines the period of significant financial stress used to calculate its own internal estimates for haircuts and be able to provide empirical support for the period used.
Section 3.41(b), which sets forth operational requirements for securitization exposures, allows an institution to recognize for risk-based capital purposes, in the case of synthetic securitizations, a credit risk mitigant to hedge underlying exposures if certain conditions are met. Section 3.41(b)(3) includes a requirement that the institution obtain a well-reasoned opinion from legal counsel that confirms the enforceability of the credit risk mitigant in all relevant jurisdictions.
Section 3.41(c)(2)(i) requires that an institution demonstrate its comprehensive understanding of a securitization exposure by conducting and documenting an analysis of the risk characteristics of each securitization exposure prior to its acquisition, taking into account a number of specified considerations.
In the case where an institution provides non-contractual support to a securitization, § 3.42(e)(2) requires the institution to publicly disclose that it has provided implicit support to a securitization and the risk-based capital impact to the bank of providing such implicit support.
Section 3.62 sets forth disclosure requirements related to the capital requirements of an institution. These requirements apply to an institution with total consolidated assets of $50 billion or more that is not a consolidated subsidiary of an entity that is itself subject to Basel III disclosures.
Section 3.62(b) requires that an institution have a formal disclosure policy approved by the board of directors that addresses its approach for determining the disclosures it makes. The policy must address the associated internal controls and disclosure controls and procedures. Section 3.62(c) permits an institution to disclose more general information about certain subjects if the institution concludes that the specific commercial or financial information required to be disclosed under § 3.62 is exempt from disclosure under the Freedom of Information Act (5 U.S.C. 552) and the institution provides the reason the specific items of information have not been disclosed.
Section 3.63 sets forth the specific disclosure requirements for a non-advanced approaches institution with total consolidated assets of $50 billion or more that is not a consolidated subsidiary of an entity that is itself subject to Basel III disclosure requirements. Section 3.63(a) requires those institutions to make the disclosures in Tables 1 through 10 in § 3.63 and in § 3.63(b) for each of the last three years beginning on the effective date of the rule. Section 3.63(b) requires quarterly disclosure of an institution's common equity tier 1 capital, additional tier 1 capital, tier 2 capital, tier 1 and total capital ratios, including the regulatory capital elements and all the regulatory adjustments and deductions needed to calculate the numerator of such ratios; total risk-weighted assets, including the different regulatory adjustments and deductions needed to calculate total risk-weighted assets; regulatory capital ratios during any transition periods, including a description of all the regulatory capital elements and all regulatory adjustments and deductions needed to calculate the numerator and denominator of each capital ratio during any transition period; and a reconciliation of regulatory capital elements as they relate to its balance sheet in any audited consolidated financial statements. Tables 1 through 10 in § 3.63 set forth qualitative and/or quantitative requirements for scope of application, capital structure, capital adequacy, capital conservation buffer, credit risk, counterparty credit risk-related exposures, credit risk mitigation, securitizations, equities not subject to Subpart F (Market Risk requirements) of the rule, and interest rate risk for non-trading activities.
Section 3.121 requires an institution subject to the advanced approaches risk-based capital requirements to adopt a written implementation plan to address how it will comply with the advanced capital adequacy framework's qualification requirements and also develop and maintain a comprehensive and sound planning and governance process to oversee the implementation efforts described in the plan. Section 3.122 further requires these institutions to: Develop processes for assessing capital adequacy in relation to an organization's risk profile; establish and maintain internal risk rating and segmentation systems for wholesale and retail risk exposures, including comprehensive risk parameter quantification processes and processes for annual reviews and analyses of reference data to determine their relevance; document their processes for identifying, measuring, monitoring, controlling, and internally reporting operational risk; verify the accurate and timely reporting of risk-based capital requirements; and monitor, validate, and refine their advanced systems.
Section 3.123 sets forth ongoing qualification requirements that require an institution to notify the OCC of any material change to an advance system and to establish and submit to the OCC a plan for returning to compliance with the qualification requirements.
Section 3.124 requires an institution to submit to the OCC, within 90 days of consummating a merger or acquisition, an implementation plan for using its advanced systems for the merged or acquired company.
Section 3.132(b)(2)(iii)(A) addresses counterparty credit risk of repo-style transactions, eligible margin loans, and over-the-counter (OTC) derivative contracts, and internal estimates for haircuts. With the prior written approval of the OCC, an institution may calculate haircuts using its own internal estimates of the volatilities of market prices and foreign exchange rates. The section requires institutions to satisfy certain minimum quantitative standards in order to receive OCC approval to use its own internal estimates.
Section 3.132(b)(3) covers counterparty credit risk of repo-style transactions, eligible margin loans, OTC derivative contracts, and simple Value-at-Risk (VaR) methodology. With the prior written approval of the OCC, an institution may estimate exposure at default (EAD) for a netting set using a VaR model that meets certain requirements.
Section 3.132(d)(1) permits the use of the internal models methodology (IMM) to determine EAD for counterparty credit risk for derivative contracts with prior written approval from the OCC. Section 3.132(d)(1)(iii) permits the use of the internal models methodology for derivative contracts, eligible margin loans, and repo-style transactions subject to a qualifying cross-product netting agreement with prior written approval from the OCC.
Section 3.132(d)(2)(iv) addresses counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts, and risk-weighted assets using IMM. Under the IMM, an institution uses an internal model to estimate the expected exposure (EE) for a netting set and then calculates EAD based on that EE. An institution must calculate two EEs and two EADs (one stressed and one unstressed) for each netting as outlined in this section. An institution may use a conservative measure of EAD subject to prior written approval of the OCC.
Section 3.132(d)(3)(vi) addresses counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts. To obtain OCC approval to calculate the distributions of exposures upon which the EAD calculation is based, an institution must demonstrate to the satisfaction of the OCC that it has been using for at least one year an internal model that broadly meets the minimum standards, with which the institution must maintain compliance. The institution must have procedures to identify, monitor, and control wrong-way risk throughout the life of an exposure and they must include stress testing and scenario analysis.
Section 3.132(d)(3)(viii) addresses counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts. When estimating model parameters based on a stress period, an institution must use at least three years of historical data that include a period of stress to the credit default spreads of the institution's counterparties. The institution must review the data set and update the data as necessary, particularly for any material changes in its counterparties. The institution must demonstrate at least quarterly that the stress period coincides with increased credit default
Section 3.132(d)(3)(ix), regarding counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts requires that an institution must subject its internal model to an initial validation and annual model review process that includes consideration of whether the inputs and risk factors, as well as the model outputs, are appropriate. This section requires institutions to have a backtesting program for its model that includes a process by which unacceptable model performance will be determined and remedied.
Section 3.132(d)(3)(x), regarding counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts, provides that an institution must have policies for the measurement, management, and control of collateral and margin amounts.
Section 3.132(d)(3)(xi), concerning counterparty credit risk of repo-style transactions, eligible margin loans, and OTC derivative contracts states that an institution must have a comprehensive stress testing program that captures all credit exposures to counterparties, and incorporates stress testing of principal market risk factors and creditworthiness of counterparties.
Section 3.141 relates to operational criteria for recognizing the transfer of risk in connection with a securitization. Section 3.141(b)(3) requires an institution to obtain a well-reasoned legal opinion confirming the enforceability of the credit risk mitigant in all relevant jurisdictions in order to recognize the transference of risk in connection with a synthetic securitization. An institution must demonstrate its comprehensive understanding of a securitization exposure under § 3.141(c)(2) for each securitization exposure by conducting an analysis of the risk characteristics of a securitization exposure prior to acquiring the exposure and document such analysis within three business days after acquiring the exposure. Sections 3.141(c)(2)(i) and (ii) require that institutions, on an on-going basis (at least quarterly), evaluate, review, and update as appropriate the analysis required under this section for each securitization exposure.
Section 3.142(h)(2), regarding the capital treatment for securitization exposures, requires an institution to disclose publicly if it has provided implicit support to a securitization and the regulatory capital impact to the institution of providing such implicit support.
Section 3.153(b), outlining the Internal Models Approach (IMA) for calculating risk-weighted assets for equity exposures, specifies that an institution must receive prior written approval from the OCC before it can use IMA by demonstrating to the OCC that the national bank or federal savings association meets certain criteria.
Section 3.172 specifies that each advanced approaches institution that has completed the parallel run process must publicly disclose its total and tier 1 risk-based capital ratios and their components.
Section 3.173 addresses disclosures by an advanced approaches institution that is not a consolidated subsidiary of an entity that is subject to the Basel III disclosure requirements. An advanced approaches institution that is subject to the disclosure requirements must make the disclosures described in Tables 1 through 12. The institution must make these disclosures publicly available for each of the last three years (that is, twelve quarters) or such shorter period beginning on the effective date of this subpart E.
The tables in § 3.173 require qualitative and quantitative public disclosures for capital structure, capital adequacy, capital conservation and countercyclical buffers, credit risk, securitization, operational risk, equities not subject to the market risk capital requirements, and interest rate risk for non-trading activities.
The commenter stated that a capital rule must be simple, easily understood, and not easily gamed by management in order to be useful. The commenter believed that 12 CFR part 3 does not meet these criteria and is too complex to be understood, verified and enforced, especially with respect to large banking organizations. The commenter stated that there were fewer bank failures in certain time periods before minimum capital regulations were adopted. The commenter also stated that revisiting 12 CFR part 3 would be in line with the Executive Order on Core Principles for Regulating the United States Financial System, which states that regulation should be efficient, effective, and appropriately tailored. Revising 12 CFR part 3 would require a rulemaking and cannot be done through this PRA process.
It should be noted that in developing the capital rules in 12 CFR part 3, the OCC addressed specific concerns related to cost, complexity, and burden of the rules. During the recent financial crisis, the lack of confidence in the banking sector increased banking organizations' cost of funding, impaired banking organizations' access to short-term funding, depressed values of banking organizations' equities, and required many banking organizations to seek government assistance. Concerns about banking organizations arose not only because market participants expected steep losses on banking organizations' assets, but also because of substantial uncertainty surrounding estimated loss rates, and thus future earnings. It is important that capital rules are sufficiently granular and risk-sensitive to capture the risks posed by particular exposures. In large part, the complexity of the capital rules is driven by the complexity of the business activities that banking organizations engage in. As banking organizations have engaged in new, more complicated financial transactions (for example, dealing in derivatives), the capital rules have become more sophisticated to capture the risks posed by these transactions.
The OCC, pursuant to section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA),
The OCC regularly monitors and analyzes developments in the banking industry to ensure that the revised capital rules appropriately reflect risks faced by banking organizations and considers many issues before determining whether a change to the revised capital rules is appropriate. The safety and soundness of community banks depends, in part, on having and maintaining sufficient regulatory capital. More than 500 banking organizations, mostly community banks, failed in the aftermath of the financial crisis largely because they did not have sufficient capital relative to their risk.
To assist community banks, the agencies published a community bank guide to help community banks understand the sections of the revised 2013 capital rules most relevant to their operations.
Comments continue to be invited on:
(a) Whether the collections of information are necessary for the proper performance of the OCC's functions, including whether the information has practical utility;
(b) The accuracy of the OCC's estimates of the burden of the information collections, including the validity of the methodology and assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the information to be collected; and
(d) Ways to minimize the burden of information collections on respondents, including through the use of automated collection techniques or other forms of information technology.
Office of the Comptroller of the Currency (OCC), Treasury.
Notice and request for comment.
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to take this opportunity to comment on a continuing information collection as required by the Paperwork Reduction Act of 1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning the renewal of its information collection titled “Disclosure Requirements Associated with Supplementary Leverage Ratio.”
Comments must be submitted on or before August 4, 2017.
Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557-0322, 400 7th Street SW., Suite 3E-218, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465-4326 or by electronic mail to
All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.
Shaquita Merritt, OCC Clearance Officer, (202) 649-5490, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from the OMB for each collection of information that they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of title 44 requires federal agencies to provide a 60-day notice in the
The OCC is proposing to extend OMB approval of the following information collection:
Comments submitted in response to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a) Whether the collection of information is necessary for the proper performance of the functions of the OCC, including whether the information has practical utility;
(b) The accuracy of the OCC's estimate of the information collection burden;
(c) Ways to enhance the quality, utility, and clarity of the information to be collected;
(d) Ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
Office of the Comptroller of the Currency (OCC), Treasury.
Notice and request for comment.
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to take this opportunity to comment on a continuing information collection as required by the Paperwork Reduction Act of 1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning the renewal of its information collection titled “Fair Housing Home Loan Data System Regulation.”
Comments must be received on or before August 4, 2017.
Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557-0159, 400 7th Street SW., Suite 3E-218, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465-4326 or by electronic mail to
All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.
Shaquita Merritt, OCC Clearance Officer, (202) 649-5490 or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
Under the PRA (44 U.S.C. 3501-3520), federal agencies must obtain approval from OMB for each collection of information that they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of title 44 requires federal agencies to provide a 60-day notice in the
The OCC is proposing to extend OMB approval of the following information collection:
The OCC uses the data to determine whether an institution treated applicants consistently and made credit decisions commensurate with the applicants' qualifications and in compliance with ECOA and CCPA.
The information collection requirements are as follows:
• 12 CFR 27.3(a) requires national banks that are required to collect data on home loans under 12 CFR part 203
• 12 CFR 27.3(b) lists the information national banks shall attempt to obtain from an applicant as part of a home loan application and sets forth the information that banks must disclose to an applicant.
• 12 CFR 27.3(c) sets forth additional information national banks must maintain in the loan file.
• 12 CFR 27.4 states that the OCC may require a national bank to maintain a Fair Housing Inquiry/Application Log found in Appendix III to part 27 if there is reason to believe that the bank is engaging in discriminatory practices or if analysis of the data compiled by the bank under the Home Mortgage Disclosure Act (12 U.S.C. 2801
• 12 CFR 27.5 requires a national bank to maintain the information required by § 27.3 for 25 months after the bank notifies the applicant of action taken on an application or after withdrawal of an application.
• 12 CFR 27.7 requires a national bank to submit the information required by §§ 27.3(a) and 27.4 to the OCC upon its request prior to a scheduled examination using the Monthly Home Loan Activity Format form in Appendix I to part 27 and the Home Loan Data Form in Appendix IV to part 27. Section 27.7(c)(3) states that a bank with fewer than 75 home loan applications in the preceding year will not be required to submit such forms unless the home loan activity is concentrated in the few months preceding the request for data, indicating the likelihood of increased activity over the subsequent year or there is cause to believe that a bank is not in compliance with the fair housing laws based on prior examinations and/or complaints, among other factors.
• § 27.7(d) provides that if there is cause to believe that a bank is in noncompliance with fair housing laws, the Comptroller may require submission of additional Home Loan Data Submission Forms. The Comptroller may also require submission of the information maintained under § 27.3(a) and Home Loan Data Submission Forms at more frequent intervals.
OCC-regulated institutions now have access to a CFPB-developed web-based data submission and edit-check system (the HMDA Platform) that may be used to process HMDA data. Some institutions, typically those with small volumes of reported loans or those who do not use a vendor or other software to prepare their HMDA data for submission, will still need a software solution for integrating HMDA data from paper records or electronic systems. Therefore, the CFPB created a prototype “LAR Formatting Tool” which will allow financial institutions with small volumes of reported loans, or those who do not use a vendor or other software to prepare their HMDA data for submission, to enter HMDA data and to create a pipe delimited text file to upload to the HMDA Platform. The institution can then proceed through the interactive Web pages of the HMDA Platform to process HMDA data.
Comments submitted in response to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on:
(a) Whether the collection of information is necessary for the proper performance of the functions of the OCC, including whether the information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the information collection;
(c) Ways to enhance the quality, utility, and clarity of the information to be collected;
(d) Ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
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 |