[Federal Register Volume 79, Number 215 (Thursday, November 6, 2014)]
[Notices]
[Pages 66016-66018]
[FR Doc No: 2014-26346]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73487; File No. SR-CBOE-2014-067]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Automatic Order Handling Process
in No-Bid Series

October 31, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 22, 2014, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Exchange rules regarding the
automatic order handling process in no-bid series. The text of the
proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's
Office of the Secretary, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, 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 amend its rules regarding its automatic
order handling process. The proposed rule change seeks to modify
subparagraph (vi) to Rule 6.13(b), which sets forth how the CBOE Hybrid
System \3\ handles market orders to sell in option series for which the
national best bid in the series is zero (``no-bid series'').\4\
Currently, if the CBOE Hybrid System receives during the trading day or
has resting in the electronic book \5\ after the opening of trading a
market order to sell in a no-bid series, it handles the order as
follows:
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    \3\ The CBOE Hybrid System is a trading platform that allows
automatic executions to occur electronically and open outcry trades
to occur on the floor of the Exchange. To operate in this ``hybrid''
environment, the Exchange has a dynamic order handling system that
has the capability to route orders to the trade engine for automatic
execution and book entry, to Trading Permit Holder and PAR
workstations located in the trading crowds for manual handling, and/
or to other order management terminals generally located in booths
on the trading floor for manual handling.
    \4\ The Exchange notes that, for singly listed series, the
national best bid is equivalent to the Exchange's best bid and the
national best offer is equivalent to the Exchange's best offer.
    \5\ For example, the Exchange receives a market order to sell
prior to the opening of a series and the series opens with a sell
market order imbalance pursuant to Rule 6.2B(e)(iii). When the
series opens the market order to sell, which was resting in the book
prior to the opening of the series, will be routed according to the
no-bid procedures in Rule 6.13.
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     If the Exchange best offer in that series is less than or
equal to $0.30, then the CBOE Hybrid System will consider, for the
remainder of the trading day, the market order as a limit order to sell
with a limit price equal to the minimum trading increment applicable to
the series and enter the order into the electronic book behind limit
orders to sell at the minimum increment that are already resting in the
book.
     If the Exchange best offer in that series is greater than
$0.30, then the CBOE Hybrid System will route the market order to sell
to PAR or, at the order entry firm's discretion, to the order entry
firm's booth. If the market order is not eligible to route to PAR, then
it will be cancelled.
    Based on experience since the implementation of this parameter, the
Exchange now proposes to change the parameter from $0.30 to $0.50. The
Exchange believes that the automatic handling of market orders to sell
in no-bid series if the Exchange best offer is less than or equal to
$0.50 would reduce

the manual handling of orders and facilitate the CBOE Hybrid System's
automatic handling process. Additionally, the $0.50 threshold serves as
a protection feature for investors in certain situations, such as when
a series is no-bid because the last bid traded just prior to the entry
of the market order to sell. The purpose of this threshold is to limit
the manual handling of market orders to sell in no-bid series to only
those for true zero-bid options, as options in no-bid series with an
offer of more than $0.50 are less likely to be worthless.
    For example, if the CBOE Hybrid System receives a market order to
sell in a no-bid series with a minimum increment of $0.01 and the
Exchange best offer is $0.01, the CBOE Hybrid System will consider, for
the remainder of the trading day, the order as a limit order with a
price of $0.01 and submit it to the electronic book behind other limit
orders to sell at the minimum increment that are already resting in the
book. At that point, even if the series is no-bid because, for example,
the last bid just traded and the limit order trades at $0.01, the next
bid entered after the trade would not be higher than $0.01.\6\
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    \6\ If the order does not execute during the trading day as a
limit order and remains outstanding after the close of trading
(i.e., a good-til-cancelled order), the CBOE Hybrid System at that
time will no longer consider the order as a limit order and will
again handle the order as a market order to sell after the close of
trading. The market order will stay on the electronic book until the
opening of the next trading day (or until cancelled), at which point
it may execute during the open or, if it remains unexecuted after
the opening of trading, it will either execute with the best bid at
the time or, if the series is still no-bid, again be handled
pursuant to proposed Rule 6.13(b)(vi).
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    However, if the CBOE Hybrid System receives a market order to sell
in a no-bid series with a minimum increment of $0.01 and the Exchange
best offer is $1.20 (because, for example, the last bid of $1.00 just
traded and a new bid has not yet populated the Exchange's quote), the
CBOE Hybrid System will instead route the order to PAR (or, at the
order entry firm's discretion, to the order entry firm's booth). Manual
handling of the order prevents an anomalous execution price, since the
next bid entered in that series is likely to be much higher than
$0.01.\7\ It would be unfair to the entering firm to let its market
order trade as a limit order for $0.01 because, for example, the firm
submitted the order during the brief time when there were no
disseminated bids in a series trading significantly higher than the
minimum increment. To combat the potential unfairness outlined above,
the order entry firm has the discretion to have the market order to
sell routed to a PAR Official,\8\ the PAR workstation of a Trading
Permit Holder (``TPH User''), or to the order entry firm's booth. A PAR
Official that receives such an order will review the terms of the order
and handle the order as set forth in Rule 7.12 (e.g., the PAR Official
may bring the order to the trading crowd or enter the order into the
electronic book at the minimum increment). Currently, TPH Users that
receive orders pursuant to the no-bid scenario are systematically
blocked from booking the order into the electronic book. The Exchange
proposes to allow TPH Users to review the order and handle the order in
a similar manner to PAR Officials (e.g., bring the order to the trading
crowd or enter the order into the electronic book at the minimum
increment). The Exchange notes that PAR Officials and TPH Users must
use due diligence to execute orders that they receive at their PAR
workstations at the best prices available to them under the Exchange
Rules.\9\
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    \7\ Routing the market order to PAR or the order entry firm's
booth provides for an alternative means through which the order may
be executed before it is simply cancelled.
    \8\ A ``PAR Official'' is an Exchange employee or independent
contractor whom the Exchange may designate as being responsible for
(a) operating the PAR workstation in a DPM trading crowd with
respect to the classes of options assigned to him/her; (b) when
applicable, maintaining the book with respect to the classes of
options assigned to him/her; and (c) effecting proper executions of
orders placed with him/her. The PAR Official may not be affiliated
with any Trading Permit Holder that is approved to act as a Market-
Maker. See Rule 7.12(a).
    \9\ See, e.g., Rule 7.12(b)(ii) (governing PAR Officials) and
Rule 6.73(a). PAR workstations are only available on the trading
floor; therefore, the use of a PAR workstation by a TPH User
requires the TPH User to comply with Rule 6.73(a).
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    The Exchange believes the threshold of $0.50 is reasonable. The
Exchange notes that this threshold is equal to or less than the bid-ask
differential applicable to all options classes.\10\ The Exchange also
notes that this threshold is less than the current acceptable price
range (``APR'') parameter for series with a bid price of less than
$100.00.\11\ Pursuant to the price check provision in Rule 6.13(b)(v)
\12\ the CBOE Hybrid System will not automatically execute a marketable
order if the width between the national best bid and national best
offer is not within the APR, which the Exchange has currently set at
$10.00 for any bid price between $0.00 and $100.00. Instead, the CBOE
Hybrid System will route the order to a PAR workstation or the order
entry firm's booth, or if the order is not eligible to route to PAR, it
will be cancelled.\13\ Notwithstanding this provision, proposed Rule
6.13(b)(vi) allows for the potential execution of market orders to sell
in no-bid series with offers less than $0.50 as limit orders at the
price of a minimum increment. If the threshold in proposed Rule
6.13(b)(vi) were higher, the risk of having a market order trade at a
minimum increment in a series that is not truly no-bid would increase.
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    \10\ Bid-Ask differentials are determined by the Exchange on a
class-by-class basis. See CBOE Rule 8.7(b)(iv) and Regulatory
Circular RG-14-117 (Bid-Ask Differentials). Currently, the opening
rotation and open outcry quote widths for a series with a bid of
less than $2.00 is $0.50 for all options classes, excluding LEAPS;
EEM; NDX; PCLN; RUT; SPX; SPXPM; UltraShorts; UltraLongs; Direxion
3X; and DirexionShares 3X, which all have higher bid-ask
differentials. Intraday Electronic Quoting Widths are also higher
than $0.50.
    \11\ The acceptable APR parameter is determined by the Exchange
on a class-by-class basis. See CBOE Rule 6.13(b)(v) and CBOE
Regulatory Circular RG14-061 (Operational Systems Settings--APR and
OEPW).
    \12\ Rule 6.13(b)(v) also provides that the CBOE Hybrid System
will not automatically execute eligible orders that are marketable
if the execution would follow an initial partial execution on the
Exchange and would be at a subsequent price that is not within an
acceptable tick distance from the initial execution. The APR for
purposes of Rule 6.13(b)(v) is determined by the Exchange on a
class-by-class basis and may not be less than $0.375 between the bid
and offer for each option contract for which the bid is less than
$2, $0.60 where the bid is at least $2 but does not exceed $5, $0.75
where the bid is more than $5 but does not exceed $10, $1.20 where
the bid is more than $10 but does not exceed $20, and $1.50 where
the bid is more than $20. An ``acceptable tick distance'' shall be
no less than two minimum increments.
    \13\ See CBOE Rule 6.13(b)(v)(B).
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    The proposed rule change will require the Exchange to modify the
System in two installments. The first installment will change the $0.30
parameter to $0.50. The second installment will allow market orders to
sell in no-bid series that were routed to a PAR workstation of a TPH
User to be entered into the electronic book. After the rule change is
effective, the Exchange will announce the implementation dates for the
two installments in a Regulatory Circular to be published no later than
90 days following the effective date. The implementation date for each
installment will be no later than 180 days following the effective date
and at least two weeks after the publication of the above Regulatory
Circular.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\14\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section

6(b)(5) \15\ requirements that the rules of an exchange be 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 regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \16\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ Id.
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    In particular, the Exchange believes that the automated handling of
market orders to sell in no-bid series if the Exchange best offer is
$0.50 or less assists with the maintenance of fair and orderly markets
and protects investors and the public interest because it provides for
automated handling of these orders, ultimately resulting in more
efficient executions of these orders. The Exchange believes that the
$0.50 threshold also protects investors and assists with the
maintenance of fair and orderly markets by preventing executions of
market orders to sell in no-bid series with higher offers at
potentially extreme prices in series that are not truly no-bid. The
Exchange believes this threshold appropriately reflects the interests
of investors, as options in no-bid series with offers higher than $0.50
are less likely to be worthless, and manual handling of these orders
will lead to better executions for investors than would occur through
automatic handling. The Exchange also believes that the $0.50 threshold
promotes fair and orderly markets because market orders to sell in no-
bid series with offers of $0.50 or less are likely to be individuals
seeking to close out a worthless position for which automatic handling
is appropriate.

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. More specifically, the Exchange
does not believe that the proposed rule changes will impose any burden
on intramarket competition because it will be applicable to all TPHs
trading on the Exchange trading floor. In addition, the Exchange does
not believe the proposed changes will impose any intermarket burden
because the Exchange will operate in a similar manner only with a more
applicable no-bid series threshold.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    Because the foregoing proposed rule change does not:
    (i) significantly affect the protection of investors or the public
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \17\ and
Rule 19b-4(f)(6) \18\ 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 will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2014-067 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-CBOE-2014-067. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2014-067 and should be
submitted on or before November 28, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-26346 Filed 11-5-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 18 (Friday, January 26, 2018)]
[Notices]
[Pages 3819-3820]
[FR Doc No: 2018-01366]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82552; File No. SR-CboeBZX-2017-006]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proposed Rule
Change to List and Trade Shares of a Series of the Cboe Vest S&P 500
Enhanced Growth Strategy ETF Under the ETF Series Solutions Trust,
Under Rule 14.11(c)(3), Index Fund Shares

January 19, 2018.
    On November 21, 2017, Cboe BZX Exchange, Inc. (``Exchange'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and
trade shares of a series of the Cboe Vest S&P 500[supreg] Enhanced
Growth Strategy ETF under the ETF Series Solutions Trust under Exchange
Rule 14.11(c)(3), Index Fund Shares. The proposed rule change was
published for comment in the Federal Register on December 11, 2017.\3\
The Commission has received no comment letters on the proposed rule
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 82216 (December 5,
2017), 82 FR 58235.
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    Section 19(b)(2) of the Act \4\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day after publication of the notice for this proposed rule change
is January 25, 2018. The Commission is extending this 45-day time
period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer
period

within which to take action on the proposed rule change so that it has
sufficient time to consider the proposed rule change. Accordingly, the
Commission, pursuant to Section 19(b)(2) of the Act,\5\ designates
March 11, 2018, as the date by which the Commission shall either
approve or disapprove or institute proceedings to determine whether to
disapprove the proposed rule change (File Number SR-CboeBZX-2017-006).
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    \5\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(31).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01366 Filed 1-25-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 222 (Monday, November 20, 2023)]
[Rules and Regulations]
[Pages 80570-80572]
[FR Doc No: 2023-25496]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2023-1651; Project Identifier MCAI-2023-00481-T;
Amendment 39-22589; AD 2023-22-05]
RIN 2120-AA64

Airworthiness Directives; Dassault Aviation Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: The FAA is superseding Airworthiness Directive (AD) 2020-23-
10, which applied to certain Dassault Aviation Model FAN JET FALCON and
FAN JET FALCON SERIES C, D, E, F, and G airplanes. AD 2020-23-10
required revising the existing maintenance or inspection program, as
applicable, to incorporate new or more restrictive airworthiness
limitations. This AD was prompted by a determination that new or more
restrictive airworthiness limitations are necessary. This AD continues
to require the actions in AD 2020-23-10 and requires revising the
existing maintenance or inspection program, as applicable, to
incorporate additional new or more restrictive airworthiness
limitations, as specified in a European Union Aviation Safety Agency
(EASA) AD, which is incorporated by reference. The FAA is issuing this
AD to address the unsafe condition on these products.

DATES: This AD is effective December 26, 2023.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of December 26,
2023.
    The Director of the Federal Register approved the incorporation by
reference of a certain other publication listed in this AD as of
December 23, 2020 (85 FR 73404, November 18, 2020).

ADDRESSES:
    AD Docket: You may examine the AD docket at regulations.gov under
Docket No. FAA-2023-1651; or in person at Docket Operations between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD
docket contains this final rule, the mandatory continuing airworthiness
information (MCAI), any comments received, and other information. The
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.
    Material Incorporated by Reference:
     For material incorporated by reference in this AD, contact
EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email [email protected]; website easa.europa.eu. You may
find this material on the EASA website at ad.easa.europa.eu.
     You may view this material at the FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St., Des
Moines, WA. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>. It is also available in the AD docket at
regulations.gov under Docket No. FAA-2023-1651.

FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aviation Safety
Engineer, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone:
206-231-3226; email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 to supersede AD 2020-23-10, Amendment 39-21326 (85 FR
73404, November 18, 2020) (AD 2020-23-10). AD 2020-23-10 applied to
certain Dassault Aviation Model FAN JET FALCON and FAN JET FALCON
SERIES C, D, E, F, and G airplanes. AD 2020-23-10 required revising the
existing maintenance or inspection program, as applicable, to
incorporate new or more restrictive airworthiness limitations. The FAA
issued AD 2020-23-10 to address, among other things, fatigue cracking
and damage in principle structural elements; such fatigue cracking and
damage could result in reduced structural integrity of the airplane.
    The NPRM published in the Federal Register on August 14, 2023 (88
FR 54935). The NPRM was prompted by AD 2023-0060, dated March 16, 2023,
issued by EASA, which is the Technical Agent for the Member States of
the European Union (EASA AD 2023-0060) (also referred to as the MCAI).
The MCAI states that new or more restrictive airworthiness limitations
have been developed.
    In the NPRM, the FAA proposed to continue to require the actions in
AD 2020-23-10 and to require revising the existing maintenance or
inspection program, as applicable, to incorporate additional new or
more restrictive airworthiness limitations, as specified in EASA AD
2023-0060. The FAA is issuing this AD to address the unsafe condition
on these products.
    You may examine the MCAI in the AD docket at regulations.gov under
Docket No. FAA-2023-1651.

Discussion of Final Airworthiness Directive

Comments

    The FAA received no comments on the NPRM or on the determination of
the cost to the public.

Conclusion

    This product has been approved by the aviation authority of another
country and is approved for operation in the United States. Pursuant to
the FAA's bilateral agreement with this State of Design Authority, it
has notified the FAA of the unsafe condition described in the MCAI
referenced above. The FAA reviewed the relevant data and determined
that air safety requires adopting this AD as proposed. Accordingly, the
FAA is issuing this AD to address the unsafe condition on this product.
Except for minor editorial changes, this AD is adopted as proposed in
the NPRM. None of the changes will increase the economic burden on any
operator.

Related Service Information Under 1 CFR Part 51

    EASA AD 2023-0060 specifies new or more restrictive airworthiness
limitations for airplane structures and safe life limits.
    This AD also requires EASA AD 2019-0141, dated June 17, 2019, which
the Director of the Federal Register approved for incorporation by
reference as of December 23, 2020 (85 FR 73404, November 18, 2020).
    This material is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

Costs of Compliance

    The FAA estimates that this AD affects 168 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:
    The FAA estimates the total cost per operator for the retained
actions from AD 2020-23-10 to be $7,650 (90 work-hours x $85 per work-
hour).
    The FAA has determined that revising the existing maintenance or
inspection program takes an average of 90 work-

hours per operator, although the agency recognizes that this number may
vary from operator to operator. Since operators incorporate maintenance
or inspection program changes for their affected fleet(s), the FAA has
determined that a per-operator estimate is more accurate than a per-
airplane estimate.
    The FAA estimates the total cost per operator for the new actions
to be $7,650 (90 work-hours x $85 per work-hour).

Authority for This Rulemaking

    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.
    The FAA is 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.

Regulatory Findings

    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) Will not affect intrastate aviation in Alaska, and
    (3) 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.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive (AD) 2020-23-10, Amendment 39-21326
(85 FR 73404, November 18, 2020); and
0
b. Adding the following new AD:

2023-22-05 Dassault Aviation: Amendment 39-22589; Docket No. FAA-
2023-1651; Project Identifier MCAI-2023-00481-T.

(a) Effective Date

    This airworthiness directive (AD) is effective December 26,
2023.

(b) Affected ADs

    This AD replaces AD 2020-23-10, Amendment 39-21326 (85 FR 73404,
November 18, 2020) (AD 2020-23-10).

(c) Applicability

    This AD applies to Dassault Aviation airplanes specified in
paragraphs (c)(1) and (2) of this AD, certificated in any category,
as identified in European Union Aviation Safety Agency (EASA) AD
2023-0060, dated March 16, 2023 (EASA AD 2023-0060).
    (1) Model FAN JET FALCON airplanes.
    (2) Model FAN JET FALCON SERIES C, D, E, F, and G airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 05, Time Limits/
Maintenance Checks.

(e) Unsafe Condition

    This AD was prompted by a determination that new or more
restrictive airworthiness limitations are necessary. The FAA is
issuing this AD to address, among other things, fatigue cracking and
damage in principle structural elements; such fatigue cracking and
damage could result in reduced structural integrity of the airplane.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Retained Revision of the Existing Maintenance or Inspection
Program, With a New Terminating Action

    This paragraph restates the requirements of paragraph (i) of AD
2020-23-10, with a new terminating action. Except as specified in
paragraph (h) of this AD: Comply with all required actions and
compliance times specified in, and in accordance with, EASA AD 2019-
0141, dated June 17, 2019 (EASA AD 2019-0141). Accomplishing the
revision of the existing maintenance or inspection program required
by paragraph (j) of this AD terminates the requirements of this
paragraph.

(h) Retained Exceptions to EASA AD 2019-0141, With No Changes

    This paragraph restates the exceptions specified in paragraph
(j) of AD 2020-23-10, with no changes.
    (1) The requirements specified in paragraphs (1), (2), (4), and
(5) of EASA AD 2019-0141 do not apply to this AD.
    (2) Paragraph (3) of EASA AD 2019-0141 specifies revising ``the
approved AMP'' within 12 months after its effective date, but this
AD requires revising the existing maintenance or inspection program,
as applicable, to incorporate the ``limitations, tasks and
associated thresholds and intervals'' specified in paragraph (3) of
EASA AD 2019-0141 within 90 days after December 23, 2020 (the
effective date of AD 2020-23-10).
    (3) The initial compliance time for doing the tasks specified in
paragraph (3) of EASA AD 2019-0141 is at the applicable ``associated
thresholds'' specified in paragraph (3) of EASA AD 2019-0141, or
within 90 days after December 23, 2020 (the effective date of AD
2020-23-10), whichever occurs later.
    (4) The ``Remarks'' section of EASA AD 2019-0141 does not apply
to this AD.

(i) Retained Restrictions on Alternative Actions and Intervals, With a
New Exception

    This paragraph restates the requirements of paragraph (k) of AD
2020-23-10, with a new exception. Except as required by paragraph
(j) of this AD, after the maintenance or inspection program has been
revised as required by paragraph (g) of this AD, no alternative
actions (e.g., inspections) or intervals are allowed except as
specified in the provisions of the ``Ref. Publications'' section of
EASA AD 2019-0141.

(j) New Revision of the Existing Maintenance or Inspection Program

    Except as specified in paragraph (k) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2023-0060. Accomplishing the revision of
the existing maintenance or inspection program required by this
paragraph terminates the requirements of paragraph (g) of this AD.

(k) Exceptions to EASA AD 2023-0060

    (1) This AD does not adopt the requirements specified in
paragraphs (1) and (2) of EASA AD 2023-0060.
    (2) Paragraph (3) of EASA AD 2023-0060 specifies revising ``the
approved AMP'' within 12 months after its effective date, but this
AD requires revising the existing maintenance or inspection program,
as applicable, within 90 days after the effective date of this AD.
    (3) The initial compliance time for doing the tasks specified in
paragraph (3) of EASA AD 2023-0060 is at the applicable
``limitations'' and ``associated thresholds'' as incorporated by the
requirements of paragraph (3) of EASA AD 2023-0060, or within 90
days after the effective date of this AD, whichever occurs later.

    (4) This AD does not adopt the provisions specified in
paragraphs (4) and (5) of EASA AD 2023-0060.
    (5) This AD does not adopt the ``Remarks'' section of EASA AD
2023-0060.

(l) New Provisions for Alternative Actions and Intervals

    After the existing maintenance or inspection program has been
revised as required by paragraph (j) of this AD, no alternative
actions (e.g., inspections) and intervals are allowed unless they
are approved as specified in the provisions of the ``Ref.
Publications'' section of EASA AD 2023-0060.

(m) Additional AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Validation Branch, 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 responsible Flight Standards Office, as
appropriate. If sending information directly to the International
Validation Branch, send it to the attention of the person identified
in paragraph (n) of this AD. Information may be emailed to: [email protected]. Before using any approved AMOC, notify your
appropriate principal inspector, or lacking a principal inspector,
the manager of the responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, International
Validation Branch, FAA; or EASA; or Dassault Aviation's EASA Design
Organization Approval (DOA). If approved by the DOA, the approval
must include the DOA-authorized signature.

(n) Additional Information

    For more information about this AD, contact Tom Rodriguez,
Aviation Safety Engineer, FAA, 2200 South 216th St., Des Moines, WA
98198; telephone:<PHONE_NUMBER>; email: [email protected].

(o) Material Incorporated by Reference

    (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 this AD specifies otherwise.
    (3) The following service information was approved for IBR on
December 26, 2023.
    (i) European Union Aviation Safety Agency (EASA) AD 2023-0060,
dated March 16, 2023.
    (ii) [Reserved]
    (4) The following service information was approved for IBR on
December 23, 2020 (85 FR 73404, November 18, 2020).
    (i) European Union Aviation Safety Agency (EASA) AD 2019-0141,
dated June 17, 2019.
    (ii) [Reserved]
    (5) For EASA ADs 2023-0060 and 2019-0141, contact EASA, Konrad-
Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 000;
email [email protected]; website easa.europa.eu. You may find these
EASA ADs on the EASA website at ad.easa.europa.eu.
    (6) You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>.
    (7) You may view this material at the National Archives and
Records Administration (NARA). For information on the availability
of this material at NARA, visit www.archives.gov/federal-register/cfr/ibr-locations or email [email protected].

    Issued on October 27, 2023.
Caitlin Locke, Director,
Compliance & Airworthiness Division, Aircraft Certification Service.
[FR Doc. 2023-25496 Filed 11-17-23; 8:45 am]
BILLING CODE 4910-13-P