83 FR 16163 - Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Implement an Equity Rights Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 72 (April 13, 2018)
Federal Register Volume 83, Issue 72 (April 13, 2018)
| Page Range | 16163-16168 | |
| FR Document | 2018-07669 |
[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)] [Notices] [Pages 16163-16168] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07669] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83012; File No. SR-PEARL-2018-08] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Implement an Equity Rights Program April 9, 2018. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 6, 2018, MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to implement an equity rights program. The text of the proposed rule change is available on the Exchange's website at http://www.miaxoptions.com/rule-filings/pearl at MIAX PEARL's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to implement an equity rights program (``Program'') pursuant to which units representing the right to acquire equity in the Exchange's parent holding company, Miami International Holdings, Inc. (``MIH'') would be issued to a participating Member in exchange for payment of an initial purchase price or the prepayment of certain ERP Exchange Fees \3\ and the achievement of certain liquidity volume thresholds on the Exchange over a 32-month period. The purpose of the Program is to promote the long-term interests of MIAX PEARL by providing incentives designed to encourage future MIH owners and MIAX PEARL market participants to contribute to the growth and success of MIAX PEARL, by being active liquidity providers and takers to provide enhanced levels of trading volume to MIAX PEARL's market, through an opportunity to increase their proprietary interests in MIAX PEARL's enterprise value. --------------------------------------------------------------------------- \3\ The ERP Exchange fees consist of: (a) Transaction fees as set forth in Section 1)a of the MIAX PEARL Exchange Fee Schedule; (b) membership fees as set forth in Section 3 of the MIAX PEARL Exchange Fee Schedule; (c) system connectivity fees as set forth in Section 5 of the MIAX PEARL Exchange Fee Schedule; and (d) market data fees as set forth in Section 6 of the MIAX PEARL Exchange Fee Schedule (collectively, the ``ERP Exchange Fees''). --------------------------------------------------------------------------- Members that participate in the Program will have two options to choose from: (i) An offering of I-Units; and/or (ii) an offering of J- Units.\4\ --------------------------------------------------------------------------- \4\ The Program which provides equity-like consideration in exchange for market making or the provision of liquidity, order flow or volume is open to market participants generally. All MIAX PEARL Members may participate subject to their satisfaction of eligibility requirements. To be designated as a participant Member, an applicant must: (i) Be a Member in good standing of MIAX PEARL; (ii) qualify as an ``accredited investor'' as such term is defined in Regulation D of the Securities Act of 1933; and (iii) have executed all required documentation for Program participation. Members may elect to participate in either or both of the options. If either the I- Unit or the J-Unit option is oversubscribed, the units in the oversubscribed option will be allocated on a pro-rata basis that may result in a fractional allocation. --------------------------------------------------------------------------- I-Units Option Members that participate in the I-Unit option of the Program will be issued for each unit (i) 31,870 shares of MIH common stock and (ii) warrants to purchase 384,474 shares of common stock of MIH in exchange for such participant Member's initial cash capital contribution of $215,122.50, and with such warrants being exercisable upon the achievement by the participating Member of certain volume thresholds on the Exchange during a 32-month measurement period commencing May 1, 2018. A total of 2 I-Units will be offered. The total equity ownership of MIH common stock held by any one [[Page 16164]] participant Member will be subject to a cap of 19.9%.\5\ --------------------------------------------------------------------------- \5\ See Ninth Article (b)(i)(B), Amended and Restated Certificate of Incorporation of Miami International Holdings, Inc., effective October 16, 2015 (providing that no Exchange Member, either alone or together with its Related Persons, may own, directly or indirectly, of record or beneficially, shares constituting more than twenty percent (20%) of any class of capital stock of the Corporation). See also Ninth Article (b)(i)(C), Amended and Restated Certificate of Incorporation of Miami International Holdings, Inc., effective October 16, 2015 (providing that no Person, either alone or together with its Related Persons, at any time may, directly, indirectly or pursuant to any voting trust, agreement, plan or other arrangement, vote or cause the voting of shares of the capital stock of the Corporation or give any consent or proxy with respect to shares representing more than twenty percent (20%) of the voting power of the then issued and outstanding capital stock of the Corporation, nor may any Person, either alone or together with its Related Persons, enter into any agreement, plan or other arrangement with any other Person, either alone or together with its Related Persons, under circumstances that would result in the shares of capital stock of the Corporation that are subject to such agreement, plan or other arrangement not being voted on any matter or matters or any proxy relating thereto being withheld, where the effect of such agreement, plan or other arrangement would be to enable any Person, either alone or together with its Related Persons, to vote, possess the right to vote or cause the voting of shares of the capital stock of the Corporation which would represent more than twenty percent (20%) of said voting power.). Any purported transfer of shares or ownership of shares in violation of the ownership cap by a stockholder would be subject to the limitations of the Certificate of Incorporation, including the non-recognition of voting rights of shares in excess of the cap and a redemption right by MIH for excess shares. See also Ninth Article (d) and (e), Amended and Restated Certificate of Incorporation of Miami International Holdings, Inc., effective October 16, 2015. --------------------------------------------------------------------------- The warrants will vest in seven (7) tranches: (i) One (1) tranche, upon initial investment; and (ii) six (6) tranches during a measurement period of months 1-32 of the Program. In addition, the participant Members may earn or lose the right to exercise warrants on a pro-rata basis based upon meeting volume commitments during the measurement periods, as detailed below. Upon the initial investment, the participant Member would receive common shares equal to 31,870 shares of the common stock and 10% of the warrants will vest. A participant Member will be eligible to earn the remaining warrants during measurement periods provided that the participant has achieved a specified percentage of the total national average daily volume of options contracts reported to The Options Clearing Corporation (``OCC'') (``OCC ADV'') on MIAX PEARL of all option classes listed on MIAX PEARL.\6\ --------------------------------------------------------------------------- \6\ If an options class is not listed on MIAX PEARL, then the trading volume in that options class will be omitted from the calculation of % OCC ADV. Priority Customer-to-Priority Customer Crossing transactions where no fees are paid to the Exchange, special strategies, and contracts as to which a Member acts solely as clearing agent will not be counted in the number of option contracts executed on the Exchange by any Member. (Incidental Priority Customer-to-Priority Customer transactions, that are not crossing transactions, will be counted in the number of options contracts executed on the Exchange by a Member.) Special strategies for the purpose of calculating trading volume include: (i) Dividend strategy; (ii) merger strategy; (iii) short stock interest strategy; (iv) reversal and conversion strategies; (v) jelly roll strategy; and (vi) similar strategies offered by an options exchange that are subject to a fee cap. Trading in special strategies currently is not available on MIAX PEARL. Special strategies will be omitted from the calculation of % OCC ADV to the extent it is possible to identify such transactions. --------------------------------------------------------------------------- The remaining six (6) tranches, of 90% of the warrants, will vest during the following measurement periods: (i) 5.63% of the warrants resulting from months 1-2, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per I-Unit; \7\ (ii) 16.87% of the warrants resulting from months 3-8, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per I-Unit; (iii) 16.87% of the warrants resulting from months 9- 14, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per I- Unit; (iv) 16.87% of the warrants resulting from months 15-20, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per I-Unit; (v) 16.88% of the warrants resulting from months 21-26, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per I-Unit; and (vi) 16.88% of the warrants resulting from months 27-32, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per I-Unit. If a participant Member reaches 100% of the volume commitment during a tranche's measurement period, the Member will earn 100% of the warrants applicable to such measurement period. If a participant Member reaches less than 100% but at least 70% of the volume commitment during a tranche's measurement period, the Member will earn a reduced amount of warrants on a pro-rata basis applicable to such measurement period. If a participant Member fails to reach a minimum of 70% of the volume commitment during a tranche's measurement period, the Member will lose all right to that tranche of warrants. Notwithstanding, in the event a participant Member has not satisfied the volume commitment for any one measurement period (other than measurement period 6), the participant Member will have an opportunity to vest those warrants if such participant Member applies a portion of the Member's over-performance from the measurement period immediately following the prior measurement period to ensure a minimum of 70% of the volume commitment in the prior period and in addition has satisfied the volume commitment for the measurement period immediately following. If a participant Member exceeds 100% of the volume commitment during a tranche's measurement period, the Member is able to earn, on a pro-rata basis, warrants not earned by other participant Members. --------------------------------------------------------------------------- \7\ The first measurement period will begin on May 1, 2018 and end June 30, 2018. Therefore, May 1, 2018 through June 30, 2018 will count as months 1-2 for purposes of the measurement period. --------------------------------------------------------------------------- J-Units Option Members that participate in the J-Unit option of the Program will be issued for each unit warrants to purchase 416,344 shares of common stock of MIH in exchange for the prepayment of ERP Exchange Fees in the amount of $250,000 for the 32-month period commencing May 1, 2018, and with such warrants being exercisable upon the achievement by the participating Member of certain volume thresholds on the Exchange during a 32-month measurement period commencing May 1, 2018. A total of 25 J-Units will be offered. The total equity ownership of MIH common stock held by any one participant Member will be subject to a cap of 19.9%. The warrants will vest in six (6) tranches during the following measurement periods: (i) 6.25% of the warrants resulting from months 1- 2, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per J- Unit; \8\ (ii) 18.75% of the warrants resulting from months 3-8, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per J-Unit; (iii) 18.75% of the warrants resulting from months 9-14, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per J-Unit; (iv) 18.75% of the warrants resulting from months 15-20, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per J-Unit; (v) 18.75% of the warrants resulting from months 21-26, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per J-Unit; and (vi) 18.75% of the warrants resulting from months 27-32, with a volume commitment of 0.400% of OCC ADV on MIAX PEARL per J-Unit. If a participant Member reaches 100% of the volume commitment during any one tranche's measurement period, the Member will earn 100% of the warrants applicable to [[Page 16165]] such measurement period. If a participant Member reaches less than 100% but at least 70% of the volume commitment during a tranche's measurement period, the Member will earn a reduced amount of warrants on a pro-rata basis applicable to such measurement period. If a participant Member fails to reach a minimum of 70% of the volume commitment during the measurement period, the Member will lose all right to that tranche of warrants. Notwithstanding, in the event a participant Member has not satisfied the volume commitment for any one measurement period (other than measurement period 6), the participant Member will have an opportunity to vest those warrants if such participant Member applies a portion of the Member's over-performance from the measurement period immediately following the prior measurement period to ensure a minimum of 70% of the volume commitment in the prior period, and in addition has satisfied the volume commitment for the measurement periods immediately following. If a participant Member exceeds 100% of the volume commitment during any one tranche's measurement period, the Member is able to earn, on a pro-rata basis, warrants not earned by other participant Members. --------------------------------------------------------------------------- \8\ The first measurement period will begin on May 1, 2018 and end June 30, 2018. Therefore, May 1, 2018 through June 30, 2018 will count as months 1-2 for purposes of the measurement period. --------------------------------------------------------------------------- A participant Member will prepay the ERP Exchange Fees. Once a participant Member has prepaid ERP Exchange Fees for the 32-month period, each month the participant Member may execute contracts and accumulate such ERP Exchange Fees based on the prevailing MIAX PEARL Fee Schedule in effect at the time. Once a J-Unit participant Member has incurred ERP Exchange Fees whereby the total accumulated ERP Exchange Fees equal the prepaid amount of such ERP Exchange Fees, all subsequently incurred ERP Exchange Fees will be billed and collected at the appropriate rates as defined in the MIAX PEARL Fee Schedule. Provisions Applicable to Both I-Units and J-Units A Member of the Exchange and its Affiliate as defined in the Fee Schedule of MIAX PEARL \9\ may together participate in the Program as follows. In order to participate in the Program with a participant Member an Appointed Market Maker or Appointed EEM must be designated as such as of April 27, 2018 pursuant to the procedure for appointing an Appointed Market Maker or Appointed EEM set forth in the MIAX PEARL Fee Schedule. An Appointed Market Maker or Appointed EEM may not otherwise be a participant Member of the Program. Notwithstanding the ability to change the designation of an Appointed Market Maker or Appointed EEM as set forth in the Fee Schedule of MIAX PEARL for MIAX PEARL Fee Schedule purposes, no such change in designation may be made for purposes of the Program and any designation of an Appointed Market Maker or Appointed EEM as of April 27, 2018 shall remain in effect for purposes of the Program for the duration of the Program.\10\ An Affiliate of a Member with at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A (a ``Corporate Affiliate''), is not required to follow the procedure set forth on the MIAX PEARL Fee Schedule for designation of an Appointed Market Maker or Appointed EEM and will together be deemed a participant Member in the Program for so long as it maintains such corporate affiliation with the other Member. Alternatively, a Corporate Affiliate of a Member may directly join the Program and be a separate participant Member of the Program. Volume thresholds and other aspects of the Program may be met by the Member and its Affiliate who will together constitute a participant Member in the Program. In the case where a Member and its Corporate Affiliate separately joined the Program as participant Members volume thresholds and other aspects of the Program must be met separately by the Member and its Corporate Affiliate. --------------------------------------------------------------------------- \9\ For purposes of the MIAX PEARL Fee Schedule, the term ``Affiliate'' means (i) an affiliate of a Member of at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A, (``Affiliate''), or (ii) the Appointed Market Maker of an Appointed EEM (or, conversely, the Appointed EEM of an Appointed Market Maker). An ``Appointed Market Maker'' is a MIAX PEARL Market Maker (who does not otherwise have a corporate affiliation based upon common ownership with an EEM) that has been appointed by an EEM and an ``Appointed EEM'' is an EEM (who does not otherwise have a corporate affiliation based upon common ownership with a MIAX PEARL Market Maker) that has been appointed by a MIAX PEARL Market Maker, pursuant to the following process. A MIAX PEARL Market Maker appoints an EEM and an EEM appoints a MIAX PEARL Market Maker, for the purposes of the Fee Schedule, by each completing and sending an executed Volume Aggregation Request Form by email to [email protected] no later than 2 business days prior to the first business day of the month in which the designation is to become effective. Transmittal of a validly completed and executed form to the Exchange along with the Exchange's acknowledgement of the effective designation to each of the Market Maker and EEM will be viewed as acceptance of the appointment. The Exchange will only recognize one designation per Member. A Member may make a designation not more than once every 12 months (from the date of its most recent designation), which designation shall remain in effect unless or until the Exchange receives written notice submitted 2 business days prior to the first business day of the month from either Member indicating that the appointment has been terminated. Designations will become operative on the first business day of the effective month and may not be terminated prior to the end of the month. Execution data and reports will be provided to both parties. See MIAX PEARL Fee Schedule Definitions. \10\ A participant Member who changes a designation of an Appointed Market Maker or Appointed EEM during the Program will be effective with respect to transactions on the Exchange other than the Program. --------------------------------------------------------------------------- Each participant Member will have a standard piggyback registration right to include the common shares and the common shares issuable upon exercise of the warrants should MIH file a Registration Statement under the Securities Act of 1933. Each participant Member will also have the right to participate pro rata in all future offerings of MIH securities for so long as the participant Member holds at least 51% of the common shares purchased by the participating Member directly or issuable upon the exercise of warrants included in at least one J-Unit. MIH will have the right of first refusal to purchase any common shares or warrant shares that a participant Member decides to transfer or sell. Other participant Members will have the secondary right of first refusal to purchase any common shares or warrant shares that a participant Member decides to transfer or sell. All applicants will be subject to the same eligibility and designation criteria, and all participant Members will participate in the Program on the same terms, conditions and restrictions. To be designated as a participant Member, an applicant must: (i) Be a Member in good standing of MIAX PEARL; (ii) qualify as an ``accredited investor'' as such term is defined in Regulation D of the Securities Act of 1933; \11\ and (iii) have executed all required documentation for Program participation. Participant Members must have executed the definitive documentation, satisfied the eligibility criteria required of Program participants enumerated above, and tendered the minimum cash investment or prepayment of fees by April 27, 2018, with a closing to occur on April 30, 2018. --------------------------------------------------------------------------- \11\ The purpose of this criterion relates to the ability of MIH to sell shares of common stock pursuant to an exemption from registration under the Securities Act of 1933. The definition of ``accredited investor'' under Rule 501(a)(1) of the Securities Act of 1933 includes any broker or dealer registered pursuant to Section 15 of the Act. MIAX PEARL Rule 200(b) requires a Member to be registered as a broker or dealer pursuant to Section 15 of the Act, therefore all MIAX PEARL Members will satisfy this criterion. --------------------------------------------------------------------------- As discussed above, the purpose of the Program is to encourage Members to direct greater trade volume to MIAX [[Page 16166]] PEARL to enhance trading volume in MIAX PEARL's market. Increased volume will provide for greater liquidity and enhanced price discovery, which benefits all market participants. Other exchanges have engaged in the practice of incentivizing increased order flow in order to attract liquidity providers through equity sharing arrangements.\12\ In addition, Miami International Securities Exchange, LLC (``MIAX Options''), an affiliate of the Exchange, previously adopted substantially similar programs to incentivize increased order flow in order to attract liquidity providers through an equity sharing arrangement.\13\ The Program similarly intends to attract order flow, which will increase liquidity, thereby providing greater trading opportunities and tighter spreads for other market participants and causing a corresponding increase in order flow from these other market participants. The Program will similarly reward the liquidity providers that provide this additional volume with a potential proprietary interest in MIAX PEARL. --------------------------------------------------------------------------- \12\ See, e.g., Securities Exchange Act Release Nos. 62358 (June 22, 2010), 75 FR 37861 (June 30, 2010) (SR-NSX-2010-06); 64742 (June 24, 2011), 76 FR 38436 (June 30, 2011) (SR-NYSEAmex-2011-018); 69200 (March 21, 2013), 78 FR 18657 (March 27, 2013) (SR-CBOE-2013-31); 74114 (January 22, 2015), 80 FR 4611 (January 28, 2015) (SR-BOX- 2015-03); and 74576 (March 25, 2015), 80 FR 17122 (March 31, 2015) (SR-BOX-2015-16). \13\ See Securities Exchange Act Release Nos. 70498 (September 25, 2013), 78 FR 60348 (October 1, 2013) (SR-MIAX-2013-43); 74095 (January 20, 2015), 80 FR 4011 (January 26, 2015) (SR-MIAX-2015-02); 74225 (February 12 [sic], 2015), 80 FR 7897 (February 12, 2015) (SR- MIAX-2015-05); and 80909 (June 12, 2017), 82 FR 27743 (June 16, 2017) (SR-MIAX-2017-28). --------------------------------------------------------------------------- The specific volume thresholds of the Program's measurement periods were set based upon business determinations and analysis of current volume levels. The volume thresholds are intended to incentivize firms to increase the number of orders that are sent to MIAX PEARL to achieve the next threshold. Increasing the number of orders that are sent to MIAX PEARL will in turn provide tighter and more liquid markets, and therefore attract more business as well. The Exchange's proposal to include certain non-transaction fees within the definition of ERP Exchange Fees and thus render them eligible for prepayment under the Program is designed to offer broader Member participation in the Program. Since the Exchange operates with a maker-taker pricing structure, Members that are only ``makers'' on the Exchange could receive significant transaction rebates on a monthly basis, which could obviate the need to pre-pay transaction fees under the Program. However, by including certain regular, monthly recurring non-transaction fees as eligible for prepayment under the Program, the Exchange believes that it is creating an incentive for Members that conduct this type of business on the Exchange to participate in the Program, thereby broadening the number of Members that could potentially participate in the Program. Finally, the Exchange notes that it is not proposing to offer participant Members the right to appoint a director or an observer to the MIH Board and/or the MIAX PEARL Board when a participating Member acquires a certain number of units, which is different than the programs that MIAX Options has offered its Members in the past.\14\ The Exchange believes that, for business reasons, such a right is not a relevant component for this Program, and thus has determined not to include such a right. --------------------------------------------------------------------------- \14\ Id. --------------------------------------------------------------------------- MIAX PEARL will initiate the measurement period on May 1, 2018. The Exchange will notify Members of the implementation of the Program and the dates of the enrollment period by Regulatory Circular, and will post a copy of this rule filing on its website. Any MIAX PEARL Member that is interested in participating in the Program may contact MIAX PEARL for more information and legal documentation and will be required to enter into a nondisclosure agreement regarding this additional Program information. 2. Statutory Basis The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act \15\ in general, and furthers the objectives of Section 6(b)(5) of the Act \16\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) of the Act \17\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\18\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b). \16\ 15 U.S.C. 78f(b)(5). \17\ 15 U.S.C. 78f(b)(5). \18\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- In particular, the proposed rule change is equitable and not unfairly discriminatory, because all Members may elect to participate (or elect to not participate) in the Program and earn units on the same terms and conditions, assuming they satisfy the same eligibility criteria as described above. The eligibility criteria are objective; thus, all Members have the ability to satisfy them. The Board also has authorized MIAX PEARL to offer common shares in MIH to any Member that requests designation to participate in the Program and otherwise satisfies the eligibility criteria to ensure that all Members will have the opportunity to own common shares and thus participate in the Program if they so choose. In addition, participant Members will earn warrants on a pro-rata basis upon meeting fixed volume threshold amounts during the measurement periods that will apply to all participant Members. The Exchange believes that the methodology used to calculate the volume thresholds is fair, reasonable and not unfairly discriminatory because it is based on objective criteria that are designed to omit from the calculation functionality that is not available on the Exchange and types of transactions that are subject to little or no transaction fees. Specifically, the Exchange believes excluding Priority Customer-to-Priority Customer Crossing transactions where no fees are paid to the Exchange, special strategies, and contracts as to which a Member acts solely as clearing agent from the number of option contracts executed on the Exchange by any Member is reasonable and not unfairly discriminatory because participating Members could otherwise game the volume thresholds by executing excess volumes in these types of transactions in which either no transaction fees are charged on the Exchange, or the transaction is subject to a fee cap. The Program is designed to reward participating Members for bringing their orders and quotes to the Exchange to be executed on the Exchange. The Exchange believes it is appropriate to exclude special strategies from the OCC volume calculation since those transactions are not executed on the Exchange. The Exchange believes that omitting clearing only transactions from [[Page 16167]] the calculation to be fair and reasonable because the fact that a Member is clearing a trade is coincidental to the choice of where to execute that trade. And, because clearing only transactions are not executed on MIAX PEARL, they do not fall within the intended transactions that qualify for the Program. In addition, if the Exchange were to reward the party clearing a trade, the Exchange would possibly be double counting that trade--once for the executing party and once for the clearing party. Furthermore, the Exchange believes that counting incidental Priority Customer-to-Priority Customer transactions, which are not crossing transactions, in the number of options contracts executed on the Exchange by a Member is fair and reasonable because in these situations the Priority Customer is not necessarily choosing to execute against another Priority Customer in order to avoid a transaction fee. The Exchange believes that its proposal to allow Affiliates to participate in the Program is fair, reasonable and not unfairly discriminatory because it is being offered to all Members of the Exchange on the same terms and conditions. The Exchange believes that allowing both traditional Corporate Affiliates and also Appointed Market Makers and Appointed EEMs to participate in the Program is reasonable and appropriate because it will provide those participants with a potentially greater opportunity to achieve the volume thresholds in the Program. Also, the Exchange believes that allowing Appointed Market Makers and Appointed EEMs to participate in the Program expands access to the Program to Members that might not otherwise, individually on their own, participate in the Program, which will benefit all market participants by providing greater liquidity on the Exchange, all of which perfects the mechanism for a free and open market and national market system. The Exchange believes the Program is equitable and reasonable because an increase in volume and liquidity would benefit all market participants by providing more trading opportunities and tighter spreads, even to those market participants that do not participate in the Program. Additionally, the Exchange believes the proposed rule change is consistent with the Act because, as described above, the Program is designed to bring greater volume and liquidity to the Exchange, which will benefit all market participants by providing tighter quoting and better prices, all of which perfects the mechanism for a free and open market and national market system. B. Self-Regulatory Organization's Statement on Burden on Competition MIAX PEARL does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed rule change will improve competition by providing market participants with another option when determining where to execute orders and post liquidity. The Exchange believes that the proposed change would increase both intermarket and intramarket competition by incenting participant Members to direct their orders to the Exchange, which will enhance the quality of quoting and increase the volume of contracts traded here. To the extent that there is an additional competitive burden on non- participant Members, the Exchange believes that this is appropriate because the Program should incent Members to direct additional order flow to the Exchange and thus provide additional liquidity that enhances the quality of its markets and increases the volume of contracts traded here. To the extent that this purpose is achieved, all of the Exchange's market participants should benefit from the improved market liquidity. Enhanced market quality and increased transaction volume that results from the anticipated increase in order flow directed to the Exchange will benefit all market participants and improve competition on the Exchange. Given the robust competition for volume among options markets, many of which offer the same products, implementing a program to attract order flow like the one being proposed in this filing is consistent with the above-mentioned goals of the Act. This is especially true for the smaller options markets, such as MIAX PEARL, which is competing for volume with much larger exchanges that dominate the options trading industry. MIAX PEARL has a modest percentage of the average daily trading volume in options, so it is unlikely that the Program could cause any competitive harm to the options market or to market participants. Rather, the Program is an attempt by a small options market to attract order volume away from larger competitors by adopting an innovative pricing strategy, as evidenced by the volume thresholds of the Program that represent fractions of 1% of OCC ADV. The Exchange notes that if the Program resulted in a modest percentage increase in the average daily trading volume in options executing on MIAX PEARL, while such percentage would represent a large volume increase for MIAX PEARL, it would represent a minimal reduction in volume of its larger competitors in the industry. The Exchange believes that the Program will help further competition, because market participants will have yet another option in determining where to execute orders and post liquidity if they factor the benefits of MIAX PEARL equity participation into the determination. The Exchange notes that other exchanges have engaged in the practice of incentivizing increased order flow in order to attract liquidity providers through equity sharing arrangements.\19\ In addition, MIAX Options previously adopted substantially similar programs to incentivize increased order flow in order to attract liquidity providers through an equity sharing arrangement.\20\ --------------------------------------------------------------------------- \19\ See supra note 12. \20\ See supra note 13. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act,\21\ and Rule 19b-4(f)(2) \22\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(3)(A)(ii). \22\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: [[Page 16168]] Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-PEARL-2018-08 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-PEARL-2018-08. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website 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. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-PEARL-2018-08 and should be submitted on or before May 4, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2018-07669 Filed 4-12-18; 8:45 am] BILLING CODE P
![Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices 16163
Electronic Comments SECURITIES AND EXCHANGE Exchange’s parent holding company,
COMMISSION Miami International Holdings, Inc.
• Use the Commission’s internet (‘‘MIH’’) would be issued to a
comment form (http://www.sec.gov/ [Release No. 34–83012; File No. SR–
PEARL–2018–08] participating Member in exchange for
rules/sro.shtml); or payment of an initial purchase price or
• Send an email to rule-comments@ Self-Regulatory Organizations; MIAX the prepayment of certain ERP Exchange
sec.gov. Please include File Number SR– PEARL, LLC; Notice of Filing and Fees 3 and the achievement of certain
CboeEDGX–2018–010 on the subject Immediate Effectiveness of a Proposed liquidity volume thresholds on the
line. Rule Change To Implement an Equity Exchange over a 32-month period. The
Rights Program purpose of the Program is to promote
Paper Comments the long-term interests of MIAX PEARL
April 9, 2018.
• Send paper comments in triplicate by providing incentives designed to
Pursuant to the provisions of Section
to Secretary, Securities and Exchange encourage future MIH owners and
19(b)(1) of the Securities Exchange Act
Commission, 100 F Street NE, MIAX PEARL market participants to
of 1934 (‘‘Act’’) 1 and Rule 19b–4
Washington, DC 20549–1090. thereunder,2 notice is hereby given that contribute to the growth and success of
on April 6, 2018, MIAX PEARL, LLC MIAX PEARL, by being active liquidity
All submissions should refer to File providers and takers to provide
Number SR–CboeEDGX–2018–010. This (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed
with the Securities and Exchange enhanced levels of trading volume to
file number should be included on the MIAX PEARL’s market, through an
Commission (‘‘Commission’’) a
subject line if email is used. To help the opportunity to increase their proprietary
proposed rule change as described in
Commission process and review your Items I, II, and III below, which Items interests in MIAX PEARL’s enterprise
comments more efficiently, please use have been prepared by the Exchange. value.
only one method. The Commission will The Commission is publishing this Members that participate in the
post all comments on the Commission’s notice to solicit comments on the Program will have two options to
internet website (http://www.sec.gov/ proposed rule change from interested choose from: (i) An offering of I-Units;
rules/sro.shtml). Copies of the persons. and/or (ii) an offering of J-Units.4
submission, all subsequent
amendments, all written statements I. Self-Regulatory Organization’s I-Units Option
with respect to the proposed rule Statement of the Terms of Substance of
change that are filed with the the Proposed Rule Change Members that participate in the I-Unit
The Exchange is filing a proposal to option of the Program will be issued for
Commission, and all written
implement an equity rights program. each unit (i) 31,870 shares of MIH
communications relating to the
The text of the proposed rule change common stock and (ii) warrants to
proposed rule change between the
is available on the Exchange’s website at purchase 384,474 shares of common
Commission and any person, other than
http://www.miaxoptions.com/rule- stock of MIH in exchange for such
those that may be withheld from the
filings/pearl at MIAX PEARL’s principal participant Member’s initial cash capital
public in accordance with the
office, and at the Commission’s Public contribution of $215,122.50, and with
provisions of 5 U.S.C. 552, will be such warrants being exercisable upon
available for website viewing and Reference Room.
the achievement by the participating
printing in the Commission’s Public II. Self-Regulatory Organization’s Member of certain volume thresholds on
Reference Room, 100 F Street NE, Statement of the Purpose of, and the Exchange during a 32-month
Washington, DC 20549, on official Statutory Basis for, the Proposed Rule measurement period commencing May
business days between the hours of Change 1, 2018. A total of 2 I-Units will be
10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the offered. The total equity ownership of
filing also will be available for Exchange included statements MIH common stock held by any one
inspection and copying at the principal concerning the purpose of and basis for
office of the Exchange. All comments the proposed rule change and discussed 3 The ERP Exchange fees consist of: (a)
received will be posted without change. any comments it received on the Transaction fees as set forth in Section 1)a of the
Persons submitting comments are proposed rule change. The text of these MIAX PEARL Exchange Fee Schedule; (b)
cautioned that we do not redact or edit membership fees as set forth in Section 3 of the
statements may be examined at the MIAX PEARL Exchange Fee Schedule; (c) system
personal identifying information from places specified in Item IV below. The connectivity fees as set forth in Section 5 of the
comment submissions. You should Exchange has prepared summaries, set MIAX PEARL Exchange Fee Schedule; and (d)
submit only information that you wish forth in sections A, B, and C below, of market data fees as set forth in Section 6 of the
to make available publicly. All MIAX PEARL Exchange Fee Schedule (collectively,
the most significant aspects of such the ‘‘ERP Exchange Fees’’).
submissions should refer to File statements. 4 The Program which provides equity-like
Number SR–CboeEDGX–2018–010 and consideration in exchange for market making or the
A. Self-Regulatory Organization’s
should be submitted on or before May provision of liquidity, order flow or volume is open
Statement of the Purpose of, and to market participants generally. All MIAX PEARL
4, 2018. Statutory Basis for, the Proposed Rule Members may participate subject to their
For the Commission, by the Division of Change satisfaction of eligibility requirements. To be
Trading and Markets, pursuant to delegated designated as a participant Member, an applicant
authority.13
1. Purpose must: (i) Be a Member in good standing of MIAX
daltland on DSKBBV9HB2PROD with NOTICES
PEARL; (ii) qualify as an ‘‘accredited investor’’ as
Eduardo A. Aleman, The Exchange proposes to implement such term is defined in Regulation D of the
an equity rights program (‘‘Program’’) Securities Act of 1933; and (iii) have executed all
Assistant Secretary. required documentation for Program participation.
pursuant to which units representing
[FR Doc. 2018–07671 Filed 4–12–18; 8:45 am] Members may elect to participate in either or both
the right to acquire equity in the of the options. If either the I-Unit or the J-Unit
BILLING CODE 8011–01–P
option is oversubscribed, the units in the
1 15 U.S.C. 78s(b)(1). oversubscribed option will be allocated on a pro-
13 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. rata basis that may result in a fractional allocation.
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![16166 Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices
PEARL to enhance trading volume in certain regular, monthly recurring non- proposed rule change is consistent with
MIAX PEARL’s market. Increased transaction fees as eligible for Section 6(b)(4) of the Act,18 which
volume will provide for greater liquidity prepayment under the Program, the requires that Exchange rules provide for
and enhanced price discovery, which Exchange believes that it is creating an the equitable allocation of reasonable
benefits all market participants. Other incentive for Members that conduct this dues, fees, and other charges among its
exchanges have engaged in the practice type of business on the Exchange to members and other persons using its
of incentivizing increased order flow in participate in the Program, thereby facilities.
order to attract liquidity providers broadening the number of Members that In particular, the proposed rule
through equity sharing arrangements.12 could potentially participate in the change is equitable and not unfairly
In addition, Miami International Program. discriminatory, because all Members
Securities Exchange, LLC (‘‘MIAX Finally, the Exchange notes that it is may elect to participate (or elect to not
Options’’), an affiliate of the Exchange, not proposing to offer participant participate) in the Program and earn
previously adopted substantially similar Members the right to appoint a director units on the same terms and conditions,
programs to incentivize increased order or an observer to the MIH Board and/or assuming they satisfy the same
flow in order to attract liquidity the MIAX PEARL Board when a eligibility criteria as described above.
providers through an equity sharing participating Member acquires a certain The eligibility criteria are objective;
arrangement.13 The Program similarly number of units, which is different than thus, all Members have the ability to
intends to attract order flow, which will the programs that MIAX Options has satisfy them. The Board also has
increase liquidity, thereby providing offered its Members in the past.14 The authorized MIAX PEARL to offer
greater trading opportunities and tighter Exchange believes that, for business common shares in MIH to any Member
spreads for other market participants reasons, such a right is not a relevant that requests designation to participate
and causing a corresponding increase in component for this Program, and thus in the Program and otherwise satisfies
order flow from these other market has determined not to include such a the eligibility criteria to ensure that all
participants. The Program will similarly right. Members will have the opportunity to
reward the liquidity providers that MIAX PEARL will initiate the own common shares and thus
provide this additional volume with a measurement period on May 1, 2018. participate in the Program if they so
potential proprietary interest in MIAX The Exchange will notify Members of choose. In addition, participant
PEARL. the implementation of the Program and Members will earn warrants on a pro-
The specific volume thresholds of the the dates of the enrollment period by rata basis upon meeting fixed volume
Program’s measurement periods were Regulatory Circular, and will post a threshold amounts during the
set based upon business determinations copy of this rule filing on its website. measurement periods that will apply to
and analysis of current volume levels. Any MIAX PEARL Member that is all participant Members.
The volume thresholds are intended to interested in participating in the The Exchange believes that the
incentivize firms to increase the number Program may contact MIAX PEARL for methodology used to calculate the
of orders that are sent to MIAX PEARL more information and legal volume thresholds is fair, reasonable
to achieve the next threshold. Increasing documentation and will be required to and not unfairly discriminatory because
the number of orders that are sent to enter into a nondisclosure agreement it is based on objective criteria that are
MIAX PEARL will in turn provide regarding this additional Program designed to omit from the calculation
tighter and more liquid markets, and information. functionality that is not available on the
therefore attract more business as well. Exchange and types of transactions that
The Exchange’s proposal to include 2. Statutory Basis are subject to little or no transaction
certain non-transaction fees within the The Exchange believes that its fees. Specifically, the Exchange believes
definition of ERP Exchange Fees and proposed rule change is consistent with excluding Priority Customer-to-Priority
thus render them eligible for Section 6(b) of the Act 15 in general, and Customer Crossing transactions where
prepayment under the Program is furthers the objectives of Section 6(b)(5) no fees are paid to the Exchange, special
designed to offer broader Member of the Act 16 in particular, in that it is strategies, and contracts as to which a
participation in the Program. Since the designed to prevent fraudulent and Member acts solely as clearing agent
Exchange operates with a maker-taker manipulative acts and practices, to from the number of option contracts
pricing structure, Members that are only promote just and equitable principles of executed on the Exchange by any
‘‘makers’’ on the Exchange could receive trade, to foster cooperation and Member is reasonable and not unfairly
significant transaction rebates on a coordination with persons engaged in discriminatory because participating
monthly basis, which could obviate the facilitating transactions in securities, to Members could otherwise game the
need to pre-pay transaction fees under remove impediments to and perfect the volume thresholds by executing excess
the Program. However, by including mechanisms of a free and open market volumes in these types of transactions
and a national market system and, in in which either no transaction fees are
12 See, e.g., Securities Exchange Act Release Nos.
general, to protect investors and the charged on the Exchange, or the
62358 (June 22, 2010), 75 FR 37861 (June 30, 2010) transaction is subject to a fee cap. The
(SR–NSX–2010–06); 64742 (June 24, 2011), 76 FR public interest. Additionally, the
38436 (June 30, 2011) (SR–NYSEAmex–2011–018); Exchange believes the proposed rule Program is designed to reward
69200 (March 21, 2013), 78 FR 18657 (March 27, change is consistent with the Section participating Members for bringing their
2013) (SR–CBOE–2013–31); 74114 (January 22, 6(b)(5) of the Act 17 requirement that the orders and quotes to the Exchange to be
2015), 80 FR 4611 (January 28, 2015) (SR–BOX– executed on the Exchange. The
2015–03); and 74576 (March 25, 2015), 80 FR 17122 rules of an exchange not be designed to
permit unfair discrimination between Exchange believes it is appropriate to
daltland on DSKBBV9HB2PROD with NOTICES
(March 31, 2015) (SR–BOX–2015–16).
13 See Securities Exchange Act Release Nos. customers, issuers, brokers, or dealers. exclude special strategies from the OCC
70498 (September 25, 2013), 78 FR 60348 (October The Exchange also believes the volume calculation since those
1, 2013) (SR–MIAX–2013–43); 74095 (January 20, transactions are not executed on the
2015), 80 FR 4011 (January 26, 2015) (SR–MIAX– 14 Id. Exchange. The Exchange believes that
2015–02); 74225 (February 12 [sic], 2015), 80 FR
7897 (February 12, 2015) (SR–MIAX–2015–05); and
15 15 U.S.C. 78f(b). omitting clearing only transactions from
16 15 U.S.C. 78f(b)(5).
80909 (June 12, 2017), 82 FR 27743 (June 16, 2017)
(SR–MIAX–2017–28). 17 15 U.S.C. 78f(b)(5). 18 15 U.S.C. 78f(b)(4).
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![16168 Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices
Electronic Comments SURFACE TRANSPORTATION BOARD Board decisions and notices are
available on our website at
• Use the Commission’s internet [Docket No. FD 36181]
‘‘WWW.STB.GOV.’’
comment form (http://www.sec.gov/
rules/sro.shtml); or Kasgro Rail Corp.—Lease and Decided: April 10, 2018. By the Board,
Operation Exemption—KJ Rail Scott M. Zimmerman, Acting Director, Office
• Send an email to rule-comments@ Logistics LLC of Proceedings.
sec.gov. Please include File Number SR– Jeffrey Herzig,
PEARL–2018–08 on the subject line. Kasgro Rail Corp. (Kasgro), a Class III Clearance Clerk.
rail carrier, has filed a verified notice of
Paper Comments [FR Doc. 2018–07760 Filed 4–12–18; 8:45 am]
exemption under 49 CFR 1150.41 to
BILLING CODE 4915–01–P
lease from KJ Rail Logistics LLC (KJR),
• Send paper comments in triplicate a noncarrier, and operate approximately
to Secretary, Securities and Exchange 1.6 miles of rail line located in LaPorte
Commission, 100 F Street NE, County, Ind., between milepost 0.0 and DEPARTMENT OF TRANSPORTATION
Washington, DC 20549–1090. milepost 1.6 (the Line). The Line
connects with CSX Transportation, Inc., Federal Aviation Administration
All submissions should refer to File
Number SR–PEARL–2018–08. This file at milepost 0.0. Agency Information Collection
number should be included on the According to Kasgro, it has entered Activities: Requests for Comments;
subject line if email is used. To help the into a lease agreement with KJR for the Clearance of Renewed Approval of
Commission process and review your right to provide common carrier service Information Collection: Neighborhood
comments more efficiently, please use over the Line and will contract with KJR Environmental Survey
only one method. The Commission will to provide rail service on the property.
post all comments on the Commission’s Kasgro states that it currently leases and AGENCY: Federal Aviation
operates another rail line approximately Administration (FAA), DOT.
internet website (http://www.sec.gov/
3.5 miles in length in Lawrence County, ACTION: Notice and request for
rules/sro.shtml). Copies of the
PA.1 comments.
submission, all subsequent Kasgro certifies that its projected
amendments, all written statements annual revenues as a result of the SUMMARY: In accordance with the
with respect to the proposed rule transaction will not exceed $5 million Paperwork Reduction Act of 1995, FAA
change that are filed with the or those that would qualify it as a Class invites public comments about our
Commission, and all written III rail carrier. Kasgro further states that intention to request the Office of
communications relating to the the proposed transaction does not Management and Budget (OMB)
proposed rule change between the contain any provision that may limit approval for to renew an information
Commission and any person, other than future interchange with a third-party collection. It is not a new collection, but
those that may be withheld from the connecting carrier. an extension to the Neighborhood
public in accordance with the The transaction may be consummated Environmental Survey initially publish
provisions of 5 U.S.C. 552, will be on or after April 28, 2018, the effective in Federal Register/Thursday, June 12,
available for website viewing and date of the exemption (30 days after the 2014/Notices. The Federal Register
printing in the Commission’s Public exemption was filed). Notice with a 60-day comment period
Reference Room, 100 F Street NE, If the verified notice contains false or soliciting comments on the following
Washington, DC 20549 on official misleading information, the exemption collection of information was published
business days between the hours of is void ab initio. Petitions to revoke the on November 30, 2017. The purpose of
10:00 a.m. and 3:00 p.m. Copies of the exemption under 49 U.S.C. 10502(d) this research is to conduct a nation-wide
filing also will be available for may be filed at any time. The filing of survey to update the scientific evidence
inspection and copying at the principal a petition to revoke will not of relationship between aircraft noise
office of the Exchange. All comments automatically stay the effectiveness of exposure and its effects on communities
received will be posted without change. the exemption. Petitions for stay must around airports.
Persons submitting comments are be filed no later than April 20, 2018 (at There were four responses to the 60-
cautioned that we do not redact or edit least seven days before the exemption day Federal Register Notice. The notice
personal identifying information from becomes effective). received comments from Airport Noise
comment submissions. You should An original and ten copies of all Report, Old Naples Association, a
submit only information that you wish pleadings, referring to Docket No. FD community-based organization at
to make available publicly. All 36181, must be filed with the Surface Naples Florida, and two Massachusetts
submissions should refer to File Transportation Board, 395 E Street SW, residents.
Number SR–PEARL–2018–08 and Washington, DC 20423–0001. In DATES: Written comments should be
should be submitted on or before May addition, a copy of each pleading must submitted by May 14, 2018.
4, 2018. be served on Kasgro’s representative,
ADDRESSES: Interested persons are
Jeffrey O. Moreno, Thompson Hine LLP,
For the Commission, by the Division of invited to submit written comments on
1919 M Street NW, Suite 700,
Trading and Markets, pursuant to delegated the proposed information collection to
Washington, DC 20036.
authority.23 According to Kasgro, this action is the Office of Information and Regulatory
categorically excluded from Affairs, Office of Management and
daltland on DSKBBV9HB2PROD with NOTICES
Eduardo A. Aleman, environmental review under 49 CFR Budget. Comments should be addressed
1105.6(c) and from historic reporting to the attention of the Desk Officer,
Assistant Secretary. Department of Transportation/FAA, and
[FR Doc. 2018–07669 Filed 4–12–18; 8:45 am] under 49 CFR 1105.8(b).
sent via electronic mail to oira_
BILLING CODE P
1 See Kasgro Rail Corp.—Lease & Operation submission@omb.eop.gov, or faxed to
Exemption—EASX Corp., FD 33882 (STB served (202) 395–6974, or mailed to the Office
23 17 CFR 200.30–3(a)(12). June 22, 2000). of Information and Regulatory Affairs,
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Document Created: 2018-04-13 00:18:30
Document Modified: 2018-04-13 00:18:30
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 16163 |
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