[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Pages 1661-1665]
[FR Doc No: 2016-00493]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76852; File No. SR-BYX-2015-53]

Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Changes to Rules
11.5, Registration of Market Makers, 11.6, Obligations of Market Maker
Authorized Traders, 11.7, Registration of Market Makers in a Security,
and 11.8, Obligations of Market Makers

January 7, 2016.
    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 December 29, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange has designated this proposal as a ``non-controversial''
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6)(iii) thereunder,\4\ which renders it effective upon
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange filed a proposal to amend Rules 11.5, Registration of
Market Makers, 11.6, Obligations of Market Maker Authorized Traders,
11.7, Registration of Market Makers in a Security, and 11.8,
Obligations of Market Makers, in order to update certain provisions and
conform to the rules of EDGA Exchange, Inc. (``EDGA''), EDGX Exchange,
Inc. (``EDGX''), BATS Exchange, Inc.'s (``BZX'') equity options trading
platform (``BZX Options''), EDGX's equity options trading platform

(``EDGX Options''), and the Nasdaq Stock Market LLC (``Nasdaq'').\5\
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    \5\ See EDGA and EDGX Rules 11.17, 11.18, 11.19, and 11.20; BZX
Options Rule 22.6(d)(4), (5), and (7); EDGX Options Rule 22.6(d)(4),
(5), and (7); and Nasdaq Rules Rule 4613(a)(2)(ii) [sic],
4613(a)(2)(D) and (E).
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    The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    In early 2014, the Exchange and its affiliate, BZX, received
approval to effect a merger (the ``Merger'') of the Exchange's parent
company, BATS Global Markets, Inc., with Direct Edge Holdings LLC, the
indirect parent of EDGX and EDGA (together with BZX, BYX and EDGX, the
``BGM Affiliated Exchanges'').\6\ In the context of the Merger, the BGM
Affiliated Exchanges are working to align their rules, retaining only
intended differences between the BGM Affiliated Exchanges. Thus, the
Exchange proposes to amend Rules 11.5, Registration of Market Makers,
11.6, Obligations of Market Maker Authorized Traders, 11.7,
Registration of Market Makers in a Security, and 11.8, Obligations of
Market Makers, in order to update certain provisions and conform to the
rules of EDGA and EDGX and provide a consistent rule set across each of
the BGM Affiliated Exchanges.\7\ As amended, Exchange Rules 11.5, 11.6,
11.7, and 11.8 would be identical to EDGA and EDGX Rules 11.17, 11.18,
11.19, and 11.20 but for different cross references to Exchange Rules
that are due to the different rule numbering amongst the Exchange, EDGA
and EDGX.\8\
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    \6\ See Securities Exchange Act Release No. 71375 (January 23,
2014), 79 FR 4771 (January 29, 2014) (SR-BATS-2013-059; SR-BYX-2013-
039).
    \7\ The Exchange notes that BZX intends to file an identical
proposal with the Commission to amend its Rules 11.5, 11.6, 11.7,
and 11.8 to updated certain provisions and conform to EDGA and EDGX
Rules 11.17, 11.18, 11.19, and 11.20. The Exchange also notes that
EDGA and EDGX intend to file proposals with the Commission to amend
Rules 11.17, 11.18, 11.19, and 11.20 to update certain provisions to
harmonize with the changes to Exchange Rules 11.5, 11.6, 11.7, and
11.8 proposed herein.
    \8\ The Exchange notes that the substance of the rules that are
cross-referenced in Rule 11.5, 11.6, 11.7 and 11.8 are identical or
substantially similar to the corresponding EDGA and EDGX Rules.
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Rule 11.5, Registration of Market Makers
    Like EDGA and EDGX Rule 11.17, Exchange Rule 11.5 governs the
registration of Market Makers on the Exchange. In particular,
paragraphs (a) and (b) of Rule 11.5 sets forth the application process
for Members seeking to register as Market Makers on the Exchange. The
Exchange proposes to amend paragraphs (c) and (d) of Rule 11.5 to
harmonize Rule 11.5 with EDGA and EDGX Rule 11.17.
    Paragraph (c) sets for [sic] the scenarios under which the Exchange
may suspend or terminate a Market Maker's registration which include
where the Market Maker has: (i) Substantially of [sic] continuously
failed to engage in dealings in accordance with Rule 11.8 (discussed
below); (ii) failed to meet the minimum net capital requirements set
forth under paragraph (a) of the Rule; and [sic] (iii) maintain a fair
and orderly market. Rule 11.5(c) is substantially similar to EDGA and
EDGX Rules 11.17(c)(1) thru (3). EDGA and EDGX contain an additional
provision under Rule 11.17(c)(4) allowing them to suspend or terminate
a Market Maker's registration where it does not have at least one
registered Market Maker Authorized Trader (``MMAT'') qualified to
perform market making activities as set forth in EDGA and EDGX Rule
11.18(b)(5).\9\ Under proposed Rule 11.5(c)(4), a MMAT whose
registration is suspended pursuant to Exchange Rule 11.6(c) shall not
be deemed qualified within the meaning of Exchange Rule 11.6(c). In
order to harmonize the scenarios under which the Exchange may suspend
or terminate a Market Maker's registration under Rule 11.5(c) with EDGA
and EDGX, the Exchange proposes to adopt the provisions under EDGA and
EDGX Rule 11.17(c)(4) as new subparagraph (c)(4) under Rule 11.5. The
Exchange believes it is reasonable to suspend or terminate a Market
Maker's registration where it does not have at least one registered
MMAT qualified to perform market making activities as the absence of a
qualified MMAT would impede its ability to satisfy its market making
obligations. To accommodate the addition of subparagraph (c)(4) under
Rule 11.5, the Exchange also proposes to relocate the ``or'' from the
end of subparagraph (c)(2) to the end of subparagraph (c)(3).
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    \9\ Under Exchange Rule 11.6(b)(5), a Market Maker must ensure
that a MMAT is properly qualified to perform market making
activities, including but not limited to ensuring the MMAT has met
the requirements set forth in Exchange Rule 11.6(b)(2). In addition,
the Exchange notes that EDGA and EDGX Rules [sic] Rule 11.17(c)(4)
currently reference EDGA and EDGX Rules 11.19(b)(5). The Exchange
notes that this reference should be to EDGA and EDGX Rules
11.18(b)(5) and that EDGA and EDGX intend to include this correction
in an upcoming rule filing to be submitted to the Commission.
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    Lastly, to conform to EDGA and EDGX Rules 11.17(d), the Exchange
proposes to amend paragraph (d) or [sic] Rule 11.5 to remove the letter
``s'' from after the word ``interests''.
Rule 11.6, Obligations of Market Maker Authorized Traders
    Like EDGA and EDGX Rules 11.18, Exchange Rule 11.6 governs the
registration of MMATs. The Exchange proposes to amend paragraph (b)(4)
to remove the letter ``s'' from after the word ``interests'' to
harmonize Rule 11.6 with EDGA and EDGX Rule 11.18.
Rule 11.7, Registration of Market Makers in a Security
    Like EDGA and EDGX Rules 11.19, Exchange Rule 11.7 sets forth the
process for a Market Maker to become registered in a newly authorized
security or in a security already admitted to dealings on the Exchange.
The Exchange proposes to make the following changes to harmonize Rule
11.7 with EDGA and EDGX Rule 11.19:
     Amend paragraph (a) to state that registration in a
security shall become effective on the same day as the Exchange's
approval of the registration, unless otherwise provided by the
Exchange; rather than the day following the following the Exchange's
approval of the registration. This proposed amendment would harmonize
Exchange Rule 11.7(a) with EDGA and EDGX Rules 11.19(a) in order to
provide for consistent timeframes within which a registration may
become effective across each of the BGM Affiliated Exchanges. Also,
allowing for a registration to become effective on the same day as
Exchange approval would enable a Market Maker to immediately provide
liquidity in a security, rather than waiting until the following
trading day. The Exchange would continue to maintain the authority to
delay the effectiveness of the registration due to

the Market Maker satisfying additional procedural requirements, such as
the daily notification to the Exchange of the symbols to which it will
make a market in on a particular trading day;
     amend paragraph (a)(4) to replace the term ``they are''
with ``Market Maker is'';
     amend paragraph (a)(5) to add an ``and'' to the end of the
paragraph; and
     amend paragraph (b) to remove the letter ``s'' from after
the word ``interests''.
    The changes proposed above would harmonize Exchange Rule 11.7 with
EDGA and EDGX Rules 11.19.
Rule 11.8, Obligations of Market Makers
    Like EDGA and EDGX Rules 11.20, Exchange Rule 11.8 sets forth the
obligations of Market Makers. In short, Members who are registered as
Market Makers in one or more securities traded on the Exchange must
engage in a course of dealings for their own account to assist in the
maintenance, insofar as reasonably practicable, of fair and orderly
markets on the Exchange in accordance with these Rules. The Exchange
proposes to make the following changes to harmonize Rule 11.8(a), (c),
and (d) with EDGA and EDGX Rule 11.19:
     Amend subparagraph (a)(1) to clarify that the Market Maker
must maintain continuous, two-sided quotations; \10\
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    \10\ The Exchange does not propose to amend a Market Maker's
quoting obligations. The proposed change is simply intended to make
clear that the obligation is to maintain a continuous, two-sided
quotation.
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     amend paragraph (c) to: (i) Replace in the first sentence
``or'' with ``including, but without limitation'' and ``the'' with
``its''; (ii) delete the ``other'' from the second sentence; and (iii)
add an ``s'' to the word ``power'' in the second sentence;
     amend paragraph (d)(1) to: (i) Add ``Continuous'' to the
title ``Two-Sided Quote Obligations''; \11\
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    \11\ Id.
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     amend paragraphs (d)(2) and (d)(2)(C) to replace the word
``under'' with ``of'' before Regulation NMS;
     amend paragraph (d)(2)(A) to replace ``from'' with ``as
reported by'' before reference to the responsible single plan
processor; and
     amend paragraph (d)(2)(B) to replace ``received from''
with ``reported by'' before reference to the responsible single plan
processor.
    The Exchange also proposes to amend Rule 11.8(d)(1) to clarify the
scenarios in which a Market Maker's two-sided quoting obligation may be
temporarily suspended or alleviated. The provisions proposed to be
added are each substantially similar to the rules of BZX Options and
EDGX Options.\12\ Proposed Rule 11.8(d)(1)(A) addresses a Market
Maker's ability to satisfy the quoting standard in the event of a
technical failure or system limitation. In particular, if a technical
failure or limitation of a system of the Exchange prevents the Market
Maker from maintaining or communicating to the Exchange timely and
accurate quotes in each security in which a Member is registered as a
Market Maker, the duration of such failure shall not be considered in
determining whether the Market Maker has satisfied the quoting standard
with respect to that security.\13\
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    \12\ See BZX Options Rule 22.6(d)(4), (5), and (7). See also
EDGX Options Rule 22.6(d)(4), (5), and (7).
    \13\ See Securities Exchange Act Release No. 71229 [sic]
(December 18, 2013), 78 FR 77736 (December 24, 2013) (SR-BATS-2013-
062) (Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change to Modify BATS Options Market Maker Continuous Quoting
Obligation Rules).
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    In addition, proposed Rule 11.8(d)(1)(B) addresses a Market Maker's
ability to satisfy the quoting standard during a halt, suspension or
pause. A Market Maker's quoting obligation under Rule 11.8 would be
suspended during a trading halt, suspension, or pause in the
security.\14\ A Market Maker's quoting obligation would recommence
after the first regular way transaction on the primary listing market
following such halt, suspension, or pause in the security, as reported
by the responsible single plan processor.\15\ A Market Maker's quoting
obligation would also be suspended under Rule 11.8(d)(1)(B) for the
duration that an NMS stock is in a Limit State or a Straddle State
declared pursuant to the Plan to Address Extraordinary Market
Volatility Pursuant to Rule 608 of Regulation NMS under the Act (the
``Limit Up-Limit Down Plan'' or ``Plan'').\16\
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    \14\ The Exchange notes that proposed Rule 11.8(d)(B) would
differ from BZX Options and EDGX Options Rules 22.6(d)(5) in so far
as proposed Rule 11.8(d)(B) references ``security'' rather than
``underlying security'' in order to conform to the equities markets.
    \15\ See also Nasdaq Stock Market LLC (``Nasdaq'') Rule
4613(a)(2)(ii).
    \16\ See BZX and BYX Rules 11.18(e). See also EDGA and EDGX
Rules 11.16(e). See also Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit
Down Release'').
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    Under proposed Rule 11.8(d)(1)(C), the Exchange would have the
ability to consider other exceptions to the Two-Sided Obligation based
on demonstrated legal or regulatory requirements or other mitigating
circumstances. For example, a Market Maker must implement the pre-trade
and other risk controls required by Rule 15c3-5 of the Act (the
``Market Access Rule'') with respect to all of their quoting activity.
These pre-trade risk controls must be reasonably designed to
systemically limit financial exposure and ensure compliance with all
regulatory requirements. The risk controls a Market Maker may have in
place to comply with the Market Access Rule may prevent that Market
Maker from satisfying its quoting obligation. In such case, the
Exchange would consider whether the Market Maker's failure to satisfy
its quoting obligation due to its compliance with the Market Access
Rule was proper.
    Lastly, the Exchange proposes to amend its definitions of
``Designated Percentage'' and ``Defined Limit'' under Rules
11.8(d)(2)(D) and (E) respectively to be substantially similar to
Nasdaq Rules 4613(a)(2)(D) and (E). The pricing obligations applicable
to quotations of Market Makers are based on the Designated Percentage
and the Defined Limit, which are determined based on the applicable
trigger percentage. The amended definitions would include revised
percentages and updated descriptions of the categories of securities
that are subject to those percentages. The Exchange notes that the
percentages discussed below in the proposed definitions of Designated
Percentage and Defined Limit are currently included in Interpretation
and Policy .01 to Rule 11.8. Therefore, the Exchange is not proposing
new percentages governing a Market Maker's quoting obligations; it is
seeking to adopt revised definitions that are substantially similar to
that of Nasdaq in order to provide consistent rules with regard to
Market Maker's quoting obligations.\17\ The Exchange believes
consistent definitions would avoid confusion amongst market
participants that make markets on multiple venues.
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    \17\ The Exchange proposed to categorize securities included in
the S&P 500[supreg] Index, Russell 1000[supreg] Index, and a pilot
list of Exchange Traded Products as Tier 1 NMS Stocks under the
under the Limit Up-Limit Down Plan. Securities not included in the
S&P 500[supreg] Index, Russell 1000[supreg] Index, or in the pilot
list of Exchange Traded Products would be categorized as Tier 2 NMS
Stocks under the under the Limit Up-Limit Down Plan. Nasdaq Rule
4613(a)(2)(D) and (E) references securities as included in the S&P
500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of
Exchange Traded Products as such and those that are not as Tier 2
NMS Stocks. The Exchange notes that EDGA and EDGX also intent [sic]
to amend their definitions of Designated Percentage and Defined
Limit to mirror that proposed herein.
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    The Exchange currently defines Designated Percentage under Rule
11.8(d)(2)(D) as the individual stock pause trigger percentage under
the applicable rules of a primary listing market less: Two (2)
percentage points

for securities that are included in the S&P 500[supreg] Index, Russell
1000[supreg] Index, and a pilot list of Exchange Traded Products and
for all other NMS stocks with a price equal to or greater than $1.00
per share; and twenty (20) percentage points for all NMS stocks with a
price less than $1.00 per share that are not included in the S&P
500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of
Exchange Traded Products. Exchange Rule 11.8(d)(2)(D) also states that
for times during Regular Trading Hours \18\ when stock pause triggers
are not in effect under the rules of the primary listing market, the
Designated Percentage will be 20% for securities included in the S&P
500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of
Exchange Traded Products. The Designated Percentage will remain the
same throughout Regular Trading Hours for all other NMS stocks.
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    \18\ See Exchange Rule 1.5(w).
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    As amended, Designated Percentage would be defined as 8% for Tier 1
NMS Stocks under the Limit Up-Limit Down Plan,\19\ 28% for Tier 2 NMS
Stocks under the Limit Up-Limit Down Plan \20\ with a price equal to or
greater than $1.00, and 30% for Tier 2 NMS Stocks under the Limit Up-
Limit Down Plan with a price less than $1.00, except that between 9:30
a.m. and 9:45 a.m. and between 3:35 p.m. and the close of trading, when
Exchange Rule 11.18(b) is not in effect, the Designated Percentage
shall be 20% for Tier 1 NMS Stocks under the Limit Up-Limit Down Plan,
28% for Tier 2 NMS Stocks under the Limit Up-Limit Down Plan with a
price equal to or greater than $1.00, and 30% for Tier 2 NMS Stocks
under the Limit Up-Limit Down Plan with a price less than $1.00.
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    \19\ Tier 1 NMS Stocks under the Limit Up-Limit Down Plan are
securities that are included in the S&P 500[supreg] Index, Russell
1000[supreg] Index, and a pilot list of Exchange Traded Products.
See the Limit Up-Limit Down Release supra note 16.
    \20\ Tier 2 NMS Stocks under the Limit Up-Limit Down Plan are
securities that are not included in the S&P 500[supreg] Index,
Russell 1000[supreg] Index, and a pilot list of Exchange Traded
Products. Id.
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    The Exchange currently defines Defined Limit under Rule
11.8(d)(2)(E) as the individual stock pause trigger percentage under
the applicable rules of a primary listing market less one-half (1/2)
percentage point for securities that are included in the S&P
500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of
Exchange Traded Products and for all other NMS stocks with a price
equal to or greater than $1.00 per share; and eighteen and one-half
(18.5) percentage points for all NMS stocks with a price less than
$1.00 per share that are not included in the S&P 500[supreg] Index,
Russell 1000[supreg] Index, and a pilot list of Exchange Traded
Products. As amended, Defined Limit would be defined as 9.5% for Tier 1
NMS Stocks under the Limit Up-Limit Down Plan, 29.5% for Tier 2 NMS
Stocks under the Limit Up-Limit Down Plan with a price equal to or
greater than $1.00, and 31.5% for Tier 2 NMS Stocks under the Limit Up-
Limit Down Plan with a price less than $1.00, except that between 9:30
a.m. and 9:45 a.m. and between 3:35 p.m. and the close of trading, when
Exchange Rule 11.18(b) is not in effect, the Defined Limit shall be
21.5% for Tier 1 NMS Stocks under the Limit Up-Limit Down Plan, 29.5%
for Tier 2 NMS Stocks under the Limit Up-Limit Down Plan with a price
equal to or greater than $1.00, and 31.5% for Tier 2 NMS Stocks under
the Limit Up-Limit Down Plan with a price less than $1.00. Exchange
Rule 11.8(d)(2)(E) also states that for times during Regular Trading
Hours when stock pause triggers are not in effect under the rules of
the primary listing market, the Defined Limit will be 21.5% for
securities included in the S&P 500[supreg] Index, Russell 1000[supreg]
Index, and a pilot list of Exchange Traded Products. The Defined Limit
will remain the same throughout Regular Trading Hours for all other NMS
stocks.
    The Exchange proposes to delete Interpretation and Policy .01 to
Rule 11.8 as its content would now be duplicative with the definitions
of Designated Percentage and Defined Limit under proposed Rules
11.8(d)(2)(D) and (E).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of section 6(b) of the Act.\21\
Specifically, the proposed change is consistent with section 6(b)(5) of
the Act,\22\ because it is designed to promote just and equitable
principles of trade, 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. As mentioned
above, the proposed rule changes, combined with the planned filing for
the BZX, EDGA, and EDGX, would allow the BGM Affiliated Exchanges to
provide a consistent set of rules as it relates to the registration and
obligations of Market Makers. Consistent rules, in turn, will simplify
the regulatory requirements for Market Makers on the Exchange that are
also Market Makers on EDGA, EDGX and/or BZX. The proposed rule change
would provide greater harmonization between rules of similar purpose on
the BGM Affiliated Exchanges, resulting in greater uniformity and less
burdensome and more efficient regulatory compliance and understanding
of Exchange Rules. As such, the proposed rule change would foster
cooperation and coordination with persons engaged in facilitating
transactions in securities and would remove impediments to and perfect
the mechanism of a free and open market and a national market system.
Similarly, the Exchange also believes that, by harmonizing the rules
across each BGM Affiliated Exchange, the proposal will enhance the
Exchange's ability to fairly and efficiently regulate its Market Makers
by utilizing a consistent rule set and obligations across each of the
BGM Affiliated Exchanges. Consistent rules would enable the Exchange to
apply identical standards to that of its affiliates, alleviating
confusion by Market Makers on who may also be registered as such on
BZX, EDGA, or EDGX, thereby promoting just and equitable principles of
trade in accordance with section 6(b)(5) of the Act.\23\
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
    \23\ Id.
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    The Exchange also believes the proposed amendments to Rule 11.8(d)
are consistent with section 6(b)(5) of the Act,\24\ because they are
designed to promote just and equitable principles of trade, 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. The proposed amendments to Rule 11.8(d)(1) are
meant to clarify the scenarios in which a Market Maker's two-sided
quoting obligation may be temporarily suspended or alleviated. The
provisions proposed to be added are each substantially similar to the
rules of the BZX Options, EDGX Options and Nasdaq.\25\ The Exchange
believes it is appropriate to have consistent rules across its equities
and options platforms. Consistent rules would aid in alleviating
confusion amongst those that are Members on both platforms. The
Exchange believes it is reasonable to suspend or alleviate a Market
Maker's quoting obligations in the event of a technical or system
limitation, during a trading halt, suspension or pause, as well as
where demonstrated legal or regulatory

requirements prevent the Market Maker from quoting. In each scenario,
the Exchange will review the reasons behind the Market Maker inability
to quote for compliance with the Rule. In addition, the percentages
included in the proposed definitions of Designated Percentage and
Defined Limit are currently included in Interpretation and Policy .01
to Rule 11.8. Therefore, the Exchange is not proposing to new
percentages governing a Market Maker's quoting obligations; it is
seeking to adopt revised definitions that are substantially similar to
that of Nasdaq in order to provide a consistent rules with regard to
Market Makers quoting obligations.
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    \24\ 15 U.S.C. 78f(b)(5).
    \25\ See supra notes 12 and 15.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the act. To the contrary, allowing the
Exchange to implement substantively identical rules across each of the
BGM Affiliated Exchanges regarding Market Maker registration and their
obligations does not present any competitive issues, but rather is
designed to provide greater harmonization among Exchange, BZX, EDGX,
and EDGA rules of similar purpose. The proposed rule change should,
therefore, result in less burdensome and more efficient regulatory
compliance and understanding of Exchange Rules for common members of
the BGM Affiliated Exchanges and an enhanced ability of the BGM
Affiliated Exchanges to fairly and efficiently regulate Market Makers.

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

    The Exchange has neither solicited nor received written 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: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, 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 \26\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\27\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission.
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    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 17 CFR 240.19b-4.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-BYX-2015-53 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 No. SR-BYX-2015-53. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-BYX-2015-53, and should be
submitted on or before February 3, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00493 Filed 1-12-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 108 (Thursday, June 5, 2014)]
[Notices]
[Pages 32582-32586]
[FR Doc No: 2014-13020]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 31064; File No. 812-14273]

BMO Funds, Inc., et al.; Notice of Application

May 30, 2014.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 12(d)(1)(J)
of the Investment Company Act of 1940 (the ``Act'') for an exemption
from sections 12(d)(1)(A) and (B) of the Act, under sections 6(c) and
17(b) of the Act for an exemption from sections 17(a)(1) and (2) of the
Act, and under section 6(c) of the Act for an exemption from rule 12d1-
2(a) under the Act.

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Summary of the Application:  The requested order would (a) permit
certain registered open-end management investment companies that
operate as ``funds of funds'' to acquire shares of certain registered
open-end management investment companies and unit investment trusts
(``UITs'') that are within and outside the same group of investment
companies as the acquiring investment companies, and (b) permit funds
of funds relying on rule 12d1-2 under the Act to invest in certain
financial instruments.

Applicants:  BMO Funds, Inc. (the ``Company''); BMO Asset Management
Corp. (the ``Adviser''); and M&I Distributors, LLC (the
``Distributor'').

DATES: Filing Dates: The application was filed on February 4, 2014.

Hearing or Notification of Hearing:  An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on June 24, 2014, and should be accompanied by proof of service on
applicants, in the form of an affidavit or, for lawyers, a certificate
of service. Hearing requests should state the nature of the writer's
interest, the reason for the request, and the issues contested. Persons
who wish to be notified of a hearing may request notification by
writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street NE., Washington, DC 20549-1090. Applicants: Michele L. Racadio,
Secretary, BMO Funds, Inc., 111 East Kilbourn Avenue, Milwaukee, WI
53202.

FOR FURTHER INFORMATION CONTACT: Brian McLaughlin Johnson, Senior
Counsel, at<PHONE_NUMBER>, or Melissa R. Harke, Branch Chief, at (202)
551-6722 (Division of Investment Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file

number, or for an applicant using the Company name box, at http://www.sec.gov/search/search.htm, or by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Company, a Wisconsin corporation, is registered under the
Act as an open-end management investment company. The Company offers
separate series of shares representing interests in separate portfolios
of securities.\1\
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    \1\ Applicants request that the order apply to each existing and
future series of the Company and to each existing and future
registered open-end management investment company or series thereof
which is advised by the Adviser or any entity controlling,
controlled by or under common control with the Adviser and which is
part of the same ``group of investment companies'' (as defined in
section 12(d)(1)(G)(ii) of the Act) as the Company (each, a ``Fund''
and collectively, the ``Funds.''). Each existing entity that
currently intends to rely on the requested order is named as an
applicant. Any existing or future entity that relies on the order in
the future will do so only in accordance with the terms and
condition in the Application.
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    2. The Adviser is registered as an investment adviser under the
Investment Advisers Act of 1940 (``Advisers Act'') and serves as
investment adviser for each Fund. The Adviser is a wholly-owned
subsidiary of BMO Financial Corp., a financial services company
headquartered in Chicago, Illinois, and an indirect wholly-owned
subsidiary of the Bank of Montreal, a Canadian bank holding company.
The Adviser may engage one or more affiliated or unaffiliated
subadvisers. Each subadviser will be registered as an investment
adviser under the Advisers Act.
    3. The Distributor, a Wisconsin limited liability company, is
registered as a broker-dealer under the Securities Exchange Act of 1934
(the ``Exchange Act''). The Distributor serves as principal underwriter
and distributor for the Funds.
    4. Applicants request an order to permit (a) a Fund that operates
as a ``fund of funds'' (each a ``Fund of Funds'') to acquire shares of
(i) registered open-end management investment companies that are not
part of the same group of investment companies, within the meaning of
section 12(d)(1)(G)(ii) of the Act, as the Fund of Funds
(``Unaffiliated Investment Companies'') and UITs that are not part of
the same group of investment companies as the Fund of Funds
(``Unaffiliated Trusts,'' together with the Unaffiliated Investment
Companies, ``Unaffiliated Funds'') \2\ or (ii) registered open-end
management companies or UITs that are part of the same group of
investment companies, within the meaning of section 12(d)(1)(G)(ii) of
the Act, as the Fund of Funds (collectively, ``Affiliated Funds,'' and
together with the Unaffiliated Funds, ``Underlying Funds'') and (b)
each Underlying Fund, the Distributor or any principal underwriter for
the Underlying Fund, and any broker or dealer registered under the
Exchange Act (``Broker'') to sell shares of the Underlying Fund to the
Fund of Funds. Applicants also request an order under sections 6(c) and
17(b) of the Act to exempt applicants from section 17(a) to the extent
necessary to permit Underlying Funds to sell their shares to Funds of
Funds and redeem their shares from Funds of Funds.
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    \2\ Certain of the Unaffiliated Funds may be registered under
the Act as either UITs or open-end management investment companies
and have received exemptive relief to permit their shares to be
listed and traded on a national securities exchange at negotiated
prices (``ETFs'').
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    5. Applicants also request an exemption under section 6(c) from
rule 12d1-2 under the Act to permit any existing or future Fund of
Funds that relies on section 12(d)(1)(G) of the Act (``Same Group Fund
of Funds'') and that otherwise complies with rule 12d1-2 to also
invest, to the extent consistent with its investment objective,
policies, strategies, and limitations, in financial instruments that
may not be securities within the meaning of section 2(a)(36) of the Act
(``Other Investments'').

Applicants' Legal Analysis

A. Investments in Underlying Funds--Section 12(d)(1)

    1. Section 12(d)(1)(A) of the Act, in relevant part, prohibits a
registered investment company from acquiring shares of an investment
company if the securities represent more than 3% of the total
outstanding voting stock of the acquired company, more than 5% of the
total assets of the acquiring company, or, together with the securities
of any other investment companies, more than 10% of the total assets of
the acquiring company. Section 12(d)(1)(B) of the Act prohibits a
registered open-end investment company, its principal underwriter, and
any Broker from knowingly selling the investment company's shares to
another investment company if the sale will cause the acquiring company
to own more than 3% of the acquired company's total outstanding voting
stock, or if the sale will cause more than 10% of the acquired
company's total outstanding voting stock to be owned by investment
companies generally.
    2. Section 12(d)(1)(J) of the Act provides that the Commission may
exempt any person, security, or transaction, or any class or classes of
persons, securities, or transactions, from any provision of section
12(d)(1) if the exemption is consistent with the public interest and
the protection of investors. Applicants seek an exemption under section
12(d)(1)(J) of the Act to permit a Fund of Funds to acquire shares of
the Underlying Funds in excess of the limits in section 12(d)(1)(A),
and an Underlying Fund, the Distributor or any principal underwriter
for an Underlying Fund, and any Broker to sell shares of an Underlying
Fund to a Fund of Funds in excess of the limits in section 12(d)(1)(B)
of the Act.
    3. Applicants state that the terms and conditions of the proposed
arrangement will not give rise to the policy concerns underlying
sections 12(d)(1)(A) and (B), which include concerns about undue
influence by a fund of funds over underlying funds, excessive layering
of fees, and overly complex fund structures. Accordingly, applicants
believe that the requested exemption is consistent with the public
interest and the protection of investors.
    4. Applicants believe that the proposed arrangement will not result
in the exercise of undue influence by a Fund of Funds or a Fund of
Funds Affiliate over the Unaffiliated Funds.\3\ To limit the control
that a Fund of Funds may have over an Unaffiliated Fund, applicants
propose a condition prohibiting the Adviser, any person controlling,
controlled by, or under common control with the Adviser, and any
investment company or issuer that would be an investment company but
for section 3(c)(1) or 3(c)(7) of the Act that is advised or sponsored
by the Adviser or any person controlling, controlled by, or under
common control with the Adviser (the ``Advisory Group'') from
controlling (individually or in the aggregate) an Unaffiliated Fund
within the meaning of section 2(a)(9) of the Act. The same prohibition
would apply to any other investment adviser within the meaning of
section 2(a)(20)(B) of the Act to a Fund of Funds (``Subadviser''), any
person controlling, controlled by, or under common control with the
Subadviser, and any investment company or issuer that would be an
investment company but for section 3(c)(1) or 3(c)(7) of the Act (or
portion of such investment company or issuer) advised or sponsored by
the Subadviser or any person controlling,

controlled by, or under common control with the Subadviser (the
``Subadvisory Group''). Applicants propose other conditions to limit
the potential for undue influence over the Unaffiliated Funds,
including that no Fund of Funds or Fund of Funds Affiliate (except to
the extent it is acting in its capacity as an investment adviser to an
Unaffiliated Investment Company or sponsor to an Unaffiliated Trust)
will cause an Unaffiliated Fund to purchase a security in an offering
of securities during the existence of any underwriting or selling
syndicate of which a principal underwriter is an Underwriting Affiliate
(``Affiliated Underwriting''). An ``Underwriting Affiliate'' is a
principal underwriter in any underwriting or selling syndicate that is
an officer, director, trustee, advisory board member, investment
adviser, subadviser, or employee of the Fund of Funds, or a person of
which any such officer, director, trustee, investment adviser,
subadviser, member of an advisory board or employee is an affiliated
person. An Underwriting Affiliate does not include any person whose
relationship to an Unaffiliated Fund is covered by section 10(f) of the
Act.
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    \3\ A ``Fund of Funds Affiliate'' is the Adviser, any Subadviser
(as defined below), promoter, or principal underwriter of a Fund of
Funds, as well as any person controlling, controlled by, or under
common control with any of those entities. An ``Unaffiliated Fund
Affiliate'' is an investment adviser, sponsor, promoter, or
principal underwriter of an Unaffiliated Fund, as well as any person
controlling, controlled by, or under common control with any of
those entities.
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    5. To further assure that an Unaffiliated Investment Company
understands the implications of an investment by a Fund of Funds under
the requested order, prior to a Fund of Funds' investment in the shares
of an Unaffiliated Investment Company in excess of the limit in section
12(d)(1)(A)(i) of the Act, the Fund of Funds and the Unaffiliated
Investment Company will execute an agreement stating, without
limitation, that their respective boards of directors or trustees (for
any entity, the ``Board'') and their investment advisers understand the
terms and conditions of the order and agree to fulfill their
responsibilities under the order (``Participation Agreement'').
Applicants note that an Unaffiliated Investment Company (other than an
ETF whose shares are purchased by a Fund of Funds in the secondary
market) will retain its right at all times to reject any investment by
a Fund of Funds.\4\
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    \4\ An Unaffiliated Investment Company, including an ETF, would
retain its right to reject any initial investment by a Fund of Funds
in excess of the limit in section 12(d)(1)(A)(i) of the Act by
declining to execute the Participation Agreement with the Fund of
Funds.
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    6. Applicants state that they do not believe that the proposed
arrangement will involve excessive layering of fees. The Board of each
Fund of Funds, including a majority of the directors who are not
``interested persons'' (within the meaning of section 2(a)(19) of the
Act) (``Independent Directors''), will find that the advisory fees
charged under investment advisory or management contract(s) are based
on services provided that will be in addition to, rather than
duplicative of, the services provided under such advisory contract(s)
of any Underlying Fund in which the Fund of Funds may invest. In
addition, the Adviser will waive fees otherwise payable to it by a Fund
of Funds in an amount at least equal to any compensation (including
fees received pursuant to any plan adopted by an Unaffiliated
Investment Company under rule 12b-1 under the Act) received from an
Unaffiliated Fund by the Adviser or an affiliated person of the
Adviser, other than any advisory fees paid to the Adviser or its
affiliated person by an Unaffiliated Investment Company, in connection
with the investment by the Fund of Funds in the Unaffiliated Fund. Any
sales charges and/or service fees charged with respect to shares of the
Fund of Funds will not exceed the limits applicable to a fund of funds
as set forth in NASD Conduct Rule 2830.\5\
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    \5\ Any references to NASD Conduct Rule 2830 include any
successor or replacement rule of FINRA to NASD Conduct Rule 2830.
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    7. Applicants submit that the proposed arrangement will not create
an overly complex fund structure. Applicants note that no Underlying
Fund will acquire securities of any investment company or company
relying on section 3(c)(1) or 3(c)(7) of the Act in excess of the
limits contained in section 12(d)(1)(A) of the Act, except in certain
circumstances identified in condition 11 below.

B. Section 17(a)

    1. Section 17(a) of the Act generally prohibits sales or purchases
of securities between a registered investment company and any
affiliated person of the company. Section 2(a)(3) of the Act defines an
``affiliated person'' of another person to include (a) any person
directly or indirectly owning, controlling, or holding with power to
vote, 5% or more of the outstanding voting securities of the other
person; (b) any person 5% or more of whose outstanding voting
securities are directly or indirectly owned, controlled, or held with
power to vote by the other person; and (c) any person directly or
indirectly controlling, controlled by, or under common control with the
other person.
    2. Applicants state that a Fund of Funds and the Affiliated Funds
might be deemed to be under common control of the Adviser and therefore
affiliated persons of one another. Applicants also state that the Fund
of Funds and the Unaffiliated Funds might be deemed to be affiliated
persons of one another if a Fund of Funds acquires 5% or more of an
Unaffiliated Fund's outstanding voting securities. In light of these
and other possible affiliations, section 17(a) could prevent an
Underlying Fund from selling shares to and redeeming shares from a Fund
of Funds.
    3. Section 17(b) of the Act authorizes the Commission to grant an
order permitting a transaction otherwise prohibited by section 17(a) if
it finds that (a) the terms of the proposed transaction are fair and
reasonable and do not involve overreaching on the part of any person
concerned; (b) the proposed transaction is consistent with the policies
of each registered investment company involved; and (c) the proposed
transaction is consistent with the general purposes of the Act. Section
6(c) of the Act permits the Commission to exempt any persons or
transactions from any provision of the Act if such exemption is
necessary or appropriate in the public interest and consistent with the
protection of investors and the purposes fairly intended by the policy
and provisions of the Act.
    4. Applicants submit that the proposed transactions satisfy the
standards for relief under sections 17(b) and 6(c) of the Act.\6\
Applicants state that the terms of the transactions are reasonable and
fair and do not involve overreaching. Applicants state that the terms
upon which an Underlying Fund will sell its shares to or purchase its
shares from a Fund of Funds will be based on the net asset value of the
Underlying Fund.\7\ Applicants state that the proposed transactions
will be consistent with the policies of each

Fund of Funds and each Underlying Fund and with the general purposes of
the Act.
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    \6\ Applicants acknowledge that receipt of any compensation by
(a) an affiliated person of a Fund of Funds, or an affiliated person
of such person, for the purchase by a Fund of Funds of shares of an
Underlying Fund or (b) an affiliated person of an Underlying Fund,
or an affiliated person of such person, for the sale by the
Underlying Fund of its shares to a Fund of Funds may be prohibited
by section 17(e)(1) of the Act. The Participation Agreement also
will include this acknowledgement.
    \7\ To the extent purchases and sales of shares of an ETF occur
in the secondary market (and not through principal transactions
directly between a Fund of Funds and an ETF), relief from section
17(a) of the Act would not be necessary. The requested relief is
intended to cover, however, transactions directly between ETFs and a
Fund of Funds. Applicants are not seeking relief from section 17(a)
of the Act for, and the requested relief will not apply to,
transactions where an ETF could be deemed an affiliated person, or
an affiliated person of an affiliated person, of a Fund of Funds
because the investment adviser to the ETF or an entity controlling,
controlled by, or under common control with the investment adviser
to the ETF, also is an investment adviser to the Fund of Funds.
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C. Other Investments by Same Group Fund of Funds

    1. Section 12(d)(1)(G) of the Act provides that section 12(d)(1)
will not apply to securities of an acquired company purchased by an
acquiring company if: (i) the acquiring company and acquired company
are part of the same group of investment companies; (ii) the acquiring
company holds only securities of acquired companies that are part of
the same group of investment companies, government securities, and
short-term paper; (iii) the aggregate sales loads and distribution-
related fees of the acquiring company and the acquired company are not
excessive under rules adopted pursuant to section 22(b) or section
22(c) of the Act by a securities association registered under section
15A of the Exchange Act or by the Commission; and (iv) the acquired
company has a policy that prohibits it from acquiring securities of
registered open-end management investment companies or registered unit
investment trusts in reliance on section 12(d)(1)(F) or (G) of the Act.
    2. Rule 12d1-2 under the Act permits a registered open-end
investment company or a registered unit investment trust that relies on
section 12(d)(1)(G) of the Act to acquire, in addition to securities
issued by another registered investment company in the same group of
investment companies, government securities, and short-term paper: (1)
securities issued by an investment company that is not in the same
group of investment companies, when the acquisition is in reliance on
section 12(d)(1)(A) or 12(d)(1)(F) of the Act; (2) securities (other
than securities issued by an investment company); and (3) securities
issued by a money market fund, when the investment is in reliance on
rule 12d1-1 under the Act. For the purposes of rule 12d1-2,
``securities'' means any security as defined in section 2(a)(36) of the
Act.
    3. Applicants state that the proposed arrangement would comply with
the provisions of rule 12d1-2 under the Act, but for the fact that a
Same Group Fund of Funds may invest a portion of its assets in Other
Investments. Applicants request an order under section 6(c) of the Act
for an exemption from rule 12d1-2(a) to allow the Same Group Fund of
Funds to invest in Other Investments. Applicants assert that permitting
Same Group Fund of Funds to invest in Other Investments as described in
the application would not raise any of the concerns that the
requirements of section 12(d)(1) were designed to address.
    4. Consistent with its fiduciary obligations under the Act, the
Board of each Same Group Fund of Funds will review the advisory fees
charged by the Same Group Fund of Fund's investment adviser to ensure
that they are based on services provided that are in addition to,
rather than duplicative of, services provided pursuant to the advisory
agreement of any investment company in which the Same Group Fund of
Funds may invest.

Applicants' Conditions

Investments by Funds of Funds in Underlying Funds

    Applicants agree that the relief to permit Funds of Funds to invest
in Underlying Funds shall be subject to the following conditions:
    1. The members of an Advisory Group will not control (individually
or in the aggregate) an Unaffiliated Fund within the meaning of Section
2(a)(9) of the Act. The members of a Subadvisory Group will not control
(individually or in the aggregate) an Unaffiliated Fund within the
meaning of Section 2(a)(9) of the Act. If, as a result of a decrease in
the outstanding voting securities of an Unaffiliated Fund, the Advisory
Group or a Subadvisory Group, each in the aggregate, becomes a holder
of more than 25 percent of the outstanding voting securities of the
Unaffiliated Fund, then the Advisory Group or the Subadvisory Group
will vote its shares of the Unaffiliated Fund in the same proportion as
the vote of all other holders of the Unaffiliated Fund's shares. This
condition will not apply to a Subadvisory Group with respect to an
Unaffiliated Fund for which the Subadviser or a person controlling,
controlled by, or under common control with the Subadviser acts as the
investment adviser within the meaning of Section 2(a)(20)(A) of the Act
(in the case of an Unaffiliated Investment Company) or as the sponsor
(in the case of an Unaffiliated Trust).
    2. No Fund of Funds or Fund of Funds Affiliate will cause any
existing or potential investment by the Fund of Funds in shares of an
Unaffiliated Fund to influence the terms of any services or
transactions between the Fund of Funds or a Fund of Funds Affiliate and
the Unaffiliated Fund or an Unaffiliated Fund Affiliate.
    3. The Board of each Fund of Funds, including a majority of the
Independent Directors, will adopt procedures reasonably designed to
assure that its Adviser and any Subadviser(s) to the Fund of Funds are
conducting the investment program of the Fund of Funds without taking
into account any consideration received by the Fund of Funds or Fund of
Funds Affiliate from an Unaffiliated Fund or an Unaffiliated Fund
Affiliate in connection with any services or transactions.
    4. Once an investment by a Fund of Funds in the securities of an
Unaffiliated Investment Company exceeds the limit of Section
12(d)(l)(A)(i) of the Act, the Board of the Unaffiliated Investment
Company, including a majority of the Independent Directors, will
determine that any consideration paid by the Unaffiliated Investment
Company to a Fund of Funds or a Fund of Funds Affiliate in connection
with any services or transactions: (a) is fair and reasonable in
relation to the nature and quality of the services and benefits
received by the Unaffiliated Investment Company; (b) is within the
range of consideration that the Unaffiliated Investment Company would
be required to pay to another unaffiliated entity in connection with
the same services or transactions; and (c) does not involve
overreaching on the part of any person concerned. This condition does
not apply with respect to any services or transactions between an
Unaffiliated Investment Company and its investment adviser(s) or any
person controlling, controlled by, or under common control with such
investment adviser(s).
    5. No Fund of Funds or Fund of Funds Affiliate (except to the
extent it is acting in its capacity as an investment adviser to an
Unaffiliated Investment Company or sponsor to an Unaffiliated Trust)
will cause an Unaffiliated Fund to purchase a security in any
Affiliated Underwriting.
    6. The Board of an Unaffiliated Investment Company, including a
majority of the Independent Directors, will adopt procedures reasonably
designed to monitor any purchases of securities by the Unaffiliated
Investment Company in an Affiliated Underwriting once an investment by
a Fund of Funds in the securities of the Unaffiliated Investment
Company exceeds the limit of Section 12(d)(l)(A)(i) of the Act,
including any purchases made directly from an Underwriting Affiliate.
The Board of the Unaffiliated Investment Company will review these
purchases periodically, but no less frequently than annually, to
determine whether the purchases were influenced by the investment by
the Fund of Funds in the Unaffiliated Investment Company. The Board of
the Unaffiliated Investment Company will consider, among other things,
(a) whether the purchases were consistent with the investment

objectives and policies of the Unaffiliated Investment Company; (b) how
the performance of securities purchased in an Affiliated Underwriting
compares to the performance of comparable securities purchased during a
comparable period of time in underwritings other than Affiliated
Underwritings or to a benchmark such as a comparable market index; and
(c) whether the amount of securities purchased by the Unaffiliated
Investment Company in Affiliated Underwritings and the amount purchased
directly from an Underwriting Affiliate have changed significantly from
prior years. The Board of the Unaffiliated Investment Company will take
any appropriate actions based on its review, including, if appropriate,
the institution of procedures designed to assure that purchases of
securities in Affiliated Underwritings are in the best interests of
shareholders.
    7. Each Unaffiliated Investment Company shall maintain and preserve
permanently in an easily accessible place a written copy of the
procedures described in the preceding condition, and any modifications
to such procedures, and shall maintain and preserve for a period not
less than six years from the end of the fiscal year in which any
purchase in an Affiliated Underwriting occurred, the first two years in
an easily accessible place, a written record of each purchase of
securities in an Affiliated Underwriting once an investment by a Fund
of Funds in the securities of an Unaffiliated Investment Company
exceeds the limit of section 12(d)(1)(A)(i) of the Act, setting forth
the: (a) party from whom the securities were acquired, (b) identity of
the underwriting syndicate's members, (c) terms of the purchase, and
(d) information or materials upon which the determinations of the Board
of the Unaffiliated Investment Company were made.
    8. Prior to its investment in shares of an Unaffiliated Investment
Company in excess of the limit in Section 12(d)(1)(A)(i) of the Act,
the Fund of Funds and the Unaffiliated Investment Company will execute
a Participation Agreement stating, without limitation, that their
Boards and their investment advisers understand the terms and
conditions of the order and agree to fulfill their responsibilities
under the order. At the time of its investment in shares of an
Unaffiliated Investment Company in excess of the limit in Section
12(d)(1)(A)(i), a Fund of Funds will notify the Unaffiliated Investment
Company of the investment. At such time, the Fund of Funds will also
transmit to the Unaffiliated Investment Company a list of the names of
each Fund of Funds Affiliate and Underwriting Affiliate. The Fund of
Funds will notify the Unaffiliated Investment Company of any changes to
the list of the names as soon as reasonably practicable after a change
occurs. The Unaffiliated Investment Company and the Fund of Funds will
maintain and preserve a copy of the order, the Participation Agreement,
and the list with any updated information for the duration of the
investment and for a period of not less than six years thereafter, the
first two years in an easily accessible place.
    9. Before approving any advisory contract under section 15 of the
Act, the Board of each Fund of Funds, including a majority of the
Independent Directors, shall find that the advisory fees charged under
such advisory contract are based on services provided that are in
addition to, rather than duplicative of, services provided under the
advisory contract(s) of any Underlying Fund in which the Fund of Funds
may invest. Such finding and the basis upon which the finding was made
will be recorded fully in the minute books of the appropriate Fund of
Funds.
    10. The Adviser will waive fees otherwise payable to it by a Fund
of Funds in an amount at least equal to any compensation (including
fees received pursuant to any plan adopted by an Unaffiliated
Investment Company under Rule 12b-1 under the Act) received from an
Unaffiliated Fund by the Adviser, or an affiliated person of the
Adviser, other than any advisory fees paid to the Adviser or its
affiliated person by an Unaffiliated Investment Company, in connection
with the investment by the Fund of Funds in the Unaffiliated Fund. Any
Subadviser will waive fees otherwise payable to the Subadviser,
directly or indirectly, by the Fund of Funds in an amount at least
equal to any compensation received by the Subadviser, or an affiliated
person of the Subadviser, from an Unaffiliated Fund, other than any
advisory fees paid to the Subadviser or its affiliated person by an
Unaffiliated Investment Company, in connection with the investment by
the Fund of Funds in the Unaffiliated Fund made at the direction of the
Subadviser. In the event that the Subadviser waives fees, the benefit
of the waiver will be passed through to the Fund of Funds.
    11. No Underlying Fund will acquire securities of any other
investment company or company relying on Section 3(c)(1) or 3(c)(7) of
the Act in excess of the limits contained in Section 12(d)(1)(A) of the
Act, except to the extent that such Underlying Fund: (a) receives
securities of another investment company as a dividend or as a result
of a plan of reorganization of a company (other than a plan devised for
the purpose of evading Section 12(d)(l) of the Act); or (b) acquires
(or is deemed to have acquired) securities of another investment
company pursuant to exemptive relief from the Commission permitting
such Underlying Fund to (i) acquire securities of one or more
investment companies for short-term cash management purposes, or (ii)
engage in interfund borrowing and lending transactions.
    12. Any sales charges and/or service fees charged with respect to
shares of a Fund of Funds will not exceed the limits applicable to fund
of funds set forth in NASD Conduct Rule 2830.

Other Investments by Same Group Fund of Funds

    Applicants agree that the relief to permit Same Group Fund of Funds
to invest in Other Investments shall be subject to the following
condition:
    13. Applicants will comply with all provisions of rule 12d1-2 under
the Act, except for paragraph (a)(2) to the extent that it restricts
any Same Group Fund of Funds from investing in Other Investments as
described in the application.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13020 Filed 6-4-14; 8:45 am]
BILLING CODE 8011-01-P


E.O. 12866 Meeting on EPA's Greenhouse Gas New Source Performance Standard for Electric Generating Units Rule

	Wed 02/01/2012 3:00 PM - 3:30 PM

	Attendance is  for RobertJ Wayland

	Chair<EMAIL_ADDRESS>

	Location: Room 10103 NEOB

This entry has an alarm. The alarm will go off   before the entry starts.

Required:

<EMAIL_ADDRESS> This meeting was requested by Pat Quinn, The Accord Group on behalf of

Southern Company.

Call-in number:<PHONE_NUMBER>; code 3862485.


[Federal Register Volume 77, Number 221 (Thursday, November 15, 2012)]
[Rules and Regulations]
[Pages 68063-68065]
[FR Doc No: 2012-27057]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2012-0143; Directorate Identifier 2011-NM-077-AD;
Amendment 39-17252; AD 2012-22-15]
RIN 2120-AA64

Airworthiness Directives; Fokker Services B.V. Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: We are superseding an existing airworthiness directive (AD)
for all Fokker Services B.V. Model F.28 Mark 0070 and 0100 airplanes.
That AD currently requires revising the airworthiness limitations
section (ALS) of the instructions for continued airworthiness for
certain airplanes, and the FAA-approved maintenance program for certain
other airplanes, to incorporate new limitations. This new AD requires
revising the maintenance program to incorporate the limitations, tasks,
thresholds, and intervals specified in certain revised Fokker
maintenance review board (MRB) documents. This AD was prompted by a
revised Fokker 70/100 MRB document with revised limitations, tasks,
thresholds, and intervals. We are issuing this AD to reduce the
potential of structural failures or of ignition sources inside fuel
tanks, which, in combination with flammable fuel vapors, could result
in fuel tank explosions and consequent loss of the airplane.

DATES: This AD becomes effective December 20, 2012.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of December 20,
2012.
    The Director of the Federal Register approved the incorporation by
reference of certain other publications listed in this AD as of August
31, 2004 (69 FR 44586, July 27, 2004).

ADDRESSES: You may examine the AD docket on the Internet at http://www.regulations.gov or in person at the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue SW., Renton, Washington 98057-3356; telephone (425)
227-1137; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a supplemental notice of proposed rulemaking (SNPRM) to
amend 14 CFR part 39 to include an AD that would apply to the specified
products. That SNPRM was published in the Federal Register on August
14, 2012 (77 FR 48473), and proposed to supersede AD 2004-15-08,
Amendment 39-13742 (69 FR 44586, July 27, 2004). That SNPRM proposed to
correct an unsafe condition for the specified products. The Mandatory
Continuing Airworthiness Information (MCAI) states:

    Fokker Services published issue 3 of report SE-672 dated 3
January 2012 and issue 9 of report SE-473 dated 11 January 2012,
both part of the Airworthiness Limitations Section (ALS) of the
Instructions for Continued Airworthiness, referred to in Section 06,
Appendix 1, of the Fokker 70/100 Maintenance Review Board (MRB)
document. The complete ALS currently consists of:

--Certification Maintenance Requirements (CMRs)--report SE-473,
issue 9
--Airworthiness Limitation Items (ALIs) and Safe Life Items (SLIs)--
report SE-623, issue 8
--Fuel ALIs and Critical Design Configuration Control Limitations
(CDCCLs)--report SE-672, issue 3

    The instructions contained in those reports have been identified
as mandatory actions for continued airworthiness.
    For the reasons described above, this [European Aviation Safety
Agency (EASA)] AD retains the requirements of EASA AD 2011-0157,
which is superseded, and requires the implementation of the
inspections and limitations as specified in the ALS of the
Instructions for Continued Airworthiness, referred to in Section 06,
Appendix 1 of the Fokker 70/100 MRB document, reports SE-473, SE-623
and SE-672 at the above-mentioned issues.

We have determined that the actions identified in this AD are necessary
to reduce the potential of structural failures or of ignition sources
inside fuel tanks, which, in combination with flammable fuel vapors,
could result in fuel tank explosions and consequent loss of the
airplane. You may obtain further information by examining the MCAI in
the AD docket.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the SNPRM (77 FR 48473, August 14,
2012) or on the determination of the cost to the public.

Conclusion

    We reviewed the available data and determined that air safety and
the public interest require adopting the AD as proposed, except for
minor editorial changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
SNPRM (77 FR 48473, August 14, 2012) for correcting the unsafe
condition; and
     Do not add any additional burden upon the public than was
already proposed in the SNPRM (77 FR 48473, August 14, 2012).

Costs of Compliance

    Based on the service information, we estimate that this AD will
affect about 13 products of U.S. registry.
    The actions that are required by AD 2004-15-08, Amendment 39-13742
(69 FR 44586, July 27, 2004), and retained in this AD take about 1
work-hour per product, at an average labor rate of $85 per work hour.
The actions that are required by AD 2008-06-20, Amendment 39-15432 (73
FR 14661, March 19, 2008), and retained in this AD take about 1 work-
hour per product, at an average labor rate of $85 per work hour. Based
on these figures, the estimated cost of the currently required actions
is $170 per product.
    We estimate that it would take about 1 work-hour per product to
comply with the new basic requirements of this AD. The average labor
rate is $85 per work-hour. Based on these figures, we estimate the cost
of the AD on U.S. operators to be $1,105, or $85 per product.

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.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    3. Will not affect intrastate aviation in Alaska; and
    4. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains the SNPRM (77 FR 48473, August 14,
2012), the regulatory evaluation, any comments received, and other
information. The street address for the Docket Operations office
(telephone<PHONE_NUMBER>) is in the ADDRESSES section. Comments will
be available in the AD docket shortly after receipt.

List of Subjects in 14 CFR Part 39

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

Adoption of 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 removing airworthiness directive (AD)
2004-15-08, Amendment 39-13742 (69 FR 44586, July 27, 2004), and adding
the following new AD:

2012-22-15 Fokker Services B.V.: Amendment 39-17252. Docket No. FAA-
2012-0143; Directorate Identifier 2011-NM-077-AD.

(a) Effective Date

    This airworthiness directive (AD) becomes effective December 20,
2012.

(b) Affected ADs

    This AD supersedes AD 2004-15-08, Amendment 39-13742 (69 FR
44586, July 27, 2004). This AD also affects AD 2008-06-20, Amendment
39-15432 (73 FR 14661, March 19, 2008).

(c) Applicability

    (1) This AD applies to Fokker Services B.V. Model F.28 Mark 0070
and 0100 airplanes, certificated in any category, all serial
numbers.
    (2) This AD requires revisions to certain operator maintenance
documents to include new actions (e.g., inspections) and/or Critical
Design Configuration Control Limitations (CDCCLs). Compliance with
these actions and/or CDCCLs is required by 14 CFR 91.403(c). For
airplanes that have been previously modified, altered, or repaired
in the areas addressed by this AD, the operator may not be able to
accomplish the actions described in the revisions. In this
situation, to comply with 14 CFR 91.403(c), the operator must
request approval for an alternative method of compliance according
to paragraph (n) of this AD. The request should include a
description of changes to the required actions that will ensure the
continued operational safety of the airplane.

(d) Subject

    Air Transport Association (ATA) of America Code 28, Fuel.

(e) Reason

    This AD was prompted by a revised Fokker 70/100 maintenance
review board (MRB) document with revised limitations, tasks,
thresholds, and intervals. We are issuing this AD to reduce the
potential of structural failures or of ignition sources inside fuel
tanks, which, in combination with flammable fuel vapors, could
result in fuel tank explosions and consequent loss of the airplane.

(f) Compliance

    You are responsible for having the actions required by this AD
performed within the compliance times specified, unless the actions
have already been done.

(g) Retained Airworthiness Limitations Revision

    This paragraph restates the requirements of paragraph (c) of AD
2004-15-08, Amendment 39-13742 (69 FR 44586, July 27, 2004). Within
6 months after August 31, 2004 (the effective date of AD 2004-15-
08), revise the Airworthiness Limitations section (ALS) of the
Instructions for Continued Airworthiness by incorporating Fokker
Services B.V. Report SE-623, ``Fokker 70/100 Airworthiness
Limitations Items and Safe Life Items,'' Issue 2, dated September 1,
2001; and Fokker Services B.V. Report SE-473, ``Fokker 70/100
Certification Maintenance Requirements,'' Issue 5, dated July 16,
2001; into Section 6 of the Fokker 70/100 MRB document. (These
reports are already incorporated into Fokker 70/100 MRB document,
Revision 10, dated October 1, 2001.) Once the actions required by
this paragraph have been accomplished, the original issue of Fokker
Services B.V. Report SE-623, ``Fokker 70/100 Airworthiness
Limitations Items and Safe Life Items,'' dated June 1, 2000, may be
removed from the ALS of the Instructions for Continued
Airworthiness. Doing the actions specified in paragraph (i) of this
AD terminates the requirements of paragraph (g) of this AD.

(h) Retained Requirement for No Alternative Inspections or Intervals

    This paragraph restates the requirements of paragraph (e) of AD
2004-15-08, Amendment 39-13742 (69 FR 44586, July 27, 2004).
    (1) After the actions required by paragraph (g) of this AD have
been accomplished, no alternative inspections or inspection
intervals may be approved for the structural elements specified in
the documents identified in paragraph (g) of this AD, except as
required by paragraph (k) of this AD.
    (2) Notwithstanding any other maintenance or operational
requirements, components that have been identified as airworthy or
installed on the affected airplanes before the revision of the ALS
for certain airplanes, and the maintenance program for certain other
airplanes, as required by paragraph (i) of this AD, do not need to
be reworked in accordance with the critical design configuration
control limitations (CDCCLs). However, once the ALS for certain
airplanes, and the maintenance program for certain other airplanes,
has been revised, future maintenance actions on these components
must be done in accordance with the CDCCLs.

(i) New Maintenance Program Revision

    Within 3 months after the effective date of this AD, revise the
maintenance program to incorporate the airworthiness limitations
specified in the Fokker MRB documents identified in paragraphs
(i)(3), (i)(4), and (i)(5) of this AD. For all tasks and retirement
lives identified in the Fokker MRB documents identified in
paragraphs (i)(3), (i)(4), and (i)(5) of this AD, the initial
compliance times start from the later of the times specified in
paragraphs (i)(1) and (i)(2) of this AD, and the repetitive
inspections must be accomplished thereafter at the applicable
interval specified in the Fokker MRB documents identified in
paragraphs (i)(3), (i)(4), and (i)(5) of this AD.
    (1) Within 3 months after the effective date of this AD.
    (2) At the time specified in the documents identified in
paragraphs (i)(3), (i)(4), and (i)(5) of this AD.
    (3) Fokker Report SE-473, ``Fokker 70/100 Certification
Maintenance Requirements,'' Issue 9, released January 11, 2012.
    (4) Fokker Report SE-623, ``Fokker 70/100 Airworthiness
Limitation Items and Safe Life Items,'' Issue 8, released March 17,
2011.
    (5) Fokker Report SE-672, ``Fokker 70/100 Fuel Airworthiness
Limitation Items (ALI)

and Critical Design Configuration Control Limitations (CDCCL),''
Issue 3, released January 4, 2012.

(j) New Corrective Actions

    If any discrepancy (as defined in the documents specified in
paragraphs (i)(3), (i)(4), and (i)(5) of this AD) is found during
accomplishment of any task specified in the documents specified in
paragraphs (i)(3), (i)(4), and (i)(5) of this AD: Within the
applicable compliance time specified in the applicable documents
specified in paragraphs (i)(3), (i)(4), and (i)(5) of this AD,
accomplish the corrective actions in accordance with the applicable
documents specified in paragraphs (i)(3), (i)(4), and (i)(5) of this
AD. If no compliance time is identified in the applicable documents
specified in paragraphs (i)(3), (i)(4), and (i)(5) of this AD,
accomplish the applicable corrective actions before further flight.
If any discrepancy is found and there is no corrective action
specified in the applicable documents specified in paragraphs
(i)(3), (i)(4), and (i)(5) of this AD: Before further flight contact
the Manager, International Branch, ANM-116, Transport Airplane
Directorate, FAA, or the European Aviation Safety Agency (EASA) (or
its delegated agent), for approved corrective actions, and
accomplish those actions before further flight.

(k) No Alternative Actions, Intervals, and/or CDCCLs

    After accomplishing the revision required by paragraph (i) of
this AD, no alternative actions (e.g., inspections), intervals, or
CDCCLs may be used unless the actions, intervals, or CDCCLs are
approved as an alternative method of compliance (AMOC) in accordance
with the procedures specified in paragraph (n)(1) of this AD.

(l) Terminating Action

    Accomplishing the actions specified in paragraph (i) of this AD
terminates the requirements of paragraph (g) of this AD.

(m) Method of Compliance With AD 2008-06-20, Amendment 39-15432 (73 FR
14661, March 19, 2008)

    Accomplishing the actions specified in paragraph (i) of this AD
terminates the requirements of paragraphs (f)(1) through (f)(5) of
AD 2008-06-20, Amendment 39-15432 (73 FR 14661, March 19, 2008).

(n) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19. In accordance with 14 CFR
39.19, send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the International Branch, send it to ATTN: Tom
Rodriguez, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA 1601 Lind Avenue SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.
Information may be emailed to<EMAIL_ADDRESS>
Before using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
local flight standards district office/certificate holding district
office. The AMOC approval letter must specifically reference this
AD.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.

(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 the AD specifies otherwise.
    (3) The following service information was approved for IBR on
December 20, 2012.
    (i) Fokker Report SE-473, ``Fokker 70/100 Certification
Maintenance Requirements,'' Issue 9, released January 11, 2012.
    (ii) Fokker Report SE-623, ``Fokker 70/100 Airworthiness
Limitation Items and Safe Life Items,'' Issue 8, released March 17,
2011.
    (iii) Fokker Report SE-672, ``Fokker 70/100 Fuel Airworthiness
Limitation Items (ALI) and Critical Design Configuration Control
Limitations (CDCCL),'' Issue 3, released January 4, 2012.
    (4) The following service information was approved for IBR on
August 31, 2004 (69 FR 44586, July 27, 2004).
    (i) Fokker Services B.V. Report SE-473, ``Fokker 70/100
Certification Maintenance Requirements,'' Issue 5, dated July 16,
2001.
    (ii) Fokker Services B.V. Report SE-623, ``Fokker 70/100
Airworthiness Limitation Items and Safe Life Items,'' Issue 2, dated
September 1, 2001.
    (5) For service information identified in this AD, contact
Fokker Services B.V., Technical Services Dept., P.O. Box 1357, 2130
EL Hoofddorp, the Netherlands; telephone +31 (0)88-6280-350; fax +31
(0)88-6280-111; email<EMAIL_ADDRESS>Internet http://www.myfokkerfleet.com.
    (6) You may review copies of the service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA.
For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.
    (7) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on October 30, 2012.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2012-27057 Filed 11-14-12; 8:45 am]
BILLING CODE 4910-13-P