[Federal Register Volume 78, Number 15 (Wednesday, January 23, 2013)]
[Notices]
[Pages 4919-4926]
[FR Doc No: 2013-01224]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68671; File No. SR-NYSEArca-2012-108]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting
Proceedings To Determine Whether To Approve or Disapprove Proposed Rule
Change, as Modified by Amendment No. 1 Thereto, Relating to the Listing
and Trading of Shares of the NYSE Arca U.S. Equity Synthetic Reverse
Convertible Index Fund Under NYSE Arca Equities Rule 5.2(j)(3)

January 16, 2013.

I. Introduction

    On September 27, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to list and trade shares
(``Shares'') of the NYSE Arca U.S. Equity Synthetic Reverse Convertible
Index Fund (``Fund'') under NYSE Arca Equities Rule 5.2(j)(3). On
October 2, 2012, the Exchange submitted Amendment No. 1 to the proposed
rule change.\3\ The proposed rule change, as modified by Amendment No.
1 thereto, was published in the Federal Register on October 18,
2012.\4\ The Commission received no comments on the proposal. On
November 29, 2012, pursuant to Section 19(b)(2) of the Act,\5\ the
Commission designated a longer period within which to either approve
the proposed rule change, disapprove the proposed rule change, or
institute proceedings to determine whether to disapprove the proposed
rule change.\6\ This order institutes proceedings under Section
19(b)(2)(B) of the Act \7\ to determine whether to approve or
disapprove the proposed rule change, as modified by Amendment No. 1
thereto.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange amended the filing to
specify that a list of components of the Index (as defined below),
with percentage weightings, would be available on the Exchange's Web
site, and that the Exchange may halt trading in the Shares (as
defined below) if the Index value, or the value of the components of
the Index, is not available or not disseminated as required.
    \4\ See Securities Exchange Act Release No. 68043 (October 12,
2012), 77 FR 64153 (``Notice'').
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ Securities Exchange Act Release No. 68320 (November 29,
2012), 77 FR 72429 (December 5, 2012). The Commission determined
that it was 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 designated January 16, 2013 as the date by which it
should approve, disapprove, or institute proceedings to determine
whether to disapprove the proposed rule change.
    \7\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange proposes to list and trade the Shares of the Fund
under Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3), which
governs the listing and trading of Investment Company Units. The Shares
would be issued by the ALPS ETF Trust (``Trust'').\8\ ALPS Advisors,
Inc. would be the Fund's investment adviser (``Adviser''), and Rich
Investment Solutions, LLC would be the Fund's investment sub-adviser
(``Sub-Adviser'').\9\ The Bank of New York Mellon (``BNY'') would serve
as custodian, fund accounting agent, and transfer agent for the Fund.
ALPS Distributors, Inc. would be the Fund's distributor
(``Distributor''). NYSE Arca would be the ``Index Provider'' for the
Fund.\10\
---------------------------------------------------------------------------

    \8\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). On June 22, 2012, the Trust filed with the
Commission an amendment to its registration statement on Form N-1A
(``Registration Statement'') under the Securities Act of 1933 and
under the 1940 Act relating to the Fund (File Nos. 333-148826 and
811-22175). In addition, the Commission has issued an order granting
certain exemptive relief to the Trust under the 1940 Act. See
Investment Company Act Release No. 28262 (May 1, 2008) (File No.
812-13430).
    \9\ The Adviser is affiliated with a broker-dealer and would
implement and maintain procedures designed to prevent the use and
dissemination of material, non-public information regarding the
Fund's portfolio. The Sub-Adviser is not affiliated with a broker-
dealer. In the event (a) the Sub-Adviser becomes newly affiliated
with a broker-dealer, or (b) any new adviser or sub-adviser becomes
affiliated with a broker-dealer, it would implement and maintain
procedures designed to prevent the use and dissemination of
material, non-public information regarding the Fund's portfolio.
    \10\ NYSE Arca is not affiliated with the Trust, the Adviser,
the Sub-Adviser, or the Distributor. NYSE Arca is affiliated with a
broker-dealer and would implement a fire wall and maintain
procedures designed to prevent the use and dissemination of
material, non-public information regarding the Index.
---------------------------------------------------------------------------

Description of the Fund

    The Fund would seek investment results that correspond generally to
the performance, before the Fund's fees and expenses, of the NYSE Arca
U.S. Equity Synthetic Reverse Convertible Index (``Index''). The Index
reflects the performance of a portfolio consisting of over-the-counter
(``OTC'') ``down-and-in put'' options that have been written on 20 of
the most volatile U.S. stocks that also have market capitalization of
at least $5 billion.
    In seeking to replicate, before expenses, the performance of the
Index, the Fund would generally sell (i.e., write) 90-day OTC down-and-
in put options, as described below, in proportion to their weightings
in the Index on economic terms which mirror those of the Index. Each
option written by the Fund would be covered through investments in
three-month Treasury bills (``T-bills'') at least equal to the Fund's
maximum liability under the option (i.e., the strike price). The Sub-
Adviser would seek a correlation over time of 0.95 or better between
the Fund's performance and the performance of the Index. A figure of
1.00 would represent perfect correlation.\11\
---------------------------------------------------------------------------

    \11\ While the Fund would not invest in traditional reverse
convertible securities (i.e., those which convert into the
underlying stock), the down-and-in put options written by the Fund
would have the effect of exposing the Fund to the return of reverse
convertible securities (based on equity securities) as if the Fund
owned such reverse convertible securities directly.
---------------------------------------------------------------------------

    The Exchange submitted this proposed rule change because the Index
for the Fund does not meet all of the ``generic'' listing requirements
of Commentary .01(a)(A) to NYSE Arca Equities Rule 5.2(j)(3) applicable
to the listing of Investment Company Units based upon an index of ``US
Component Stocks.'' \12\ Specifically, Commentary .01(a)(A) to NYSE
Arca Equities Rule 5.2(j)(3) sets forth the requirements to be met by
components of an index or portfolio of US Component Stocks. Commentary
.01(a)(A) to NYSE Arca Equities Rule 5.2(j)(3) states, in relevant
part, that the components of an index of US Component Stocks, upon the
initial listing of a series of Investment Company Units pursuant to
Rule 19b-4(e) under the Exchange Act, shall be NMS Stocks as defined in
Rule 600 of Regulation NMS under the Exchange Act.\13\ As described
further below, the Index consists of OTC down-and-in put options. The
Exchange has represented that the Shares would conform to the initial
and continued listing criteria under NYSE Arca Equities Rules 5.2(j)(3)
and 5.5(g)(2), except that the Index includes OTC down-and-in put
options, which are not NMS Stocks as defined in Rule 600 of Regulation
NMS.
---------------------------------------------------------------------------

    \12\ NYSE Arca Equities Rule 5.2(j)(3) provides that the term
``US Component Stock'' shall mean an equity security that is
registered under Sections 12(b) or 12(g) of the Exchange Act or an
American Depositary Receipt, the underlying equity security of which
is registered under Sections 12(b) or 12(g) of the Exchange Act.
    \13\ See 17 CFR 242.600(b)(47) (defining ``NMS Stock'' as any
NMS Security other than an option).
---------------------------------------------------------------------------

Index Methodology and Construction

    The Index measures the return of a hypothetical portfolio
consisting of OTC down-and-in put options which have been written on
each of 20 stocks and

a cash position calculated as described below. The 20 stocks that would
underlie the options in the Index are those 20 stocks from a selection
of the largest capitalized (over $5 billion in market capitalization)
stocks which also have listed options and which have the highest
volatility, as determined by the Index Provider. These stocks would be
required to be NMS stocks, as defined in Rule 600 of Regulation NMS.
    A down-and-in option is a contract that becomes a typical option
(i.e., the option ``knocks in'' at a predetermined strike price) once
the underlying stock declines to a specified price (``barrier price'').
These types of options have the same return as ``reverse convertible''
securities, which convert into the underlying stock (or settle in cash)
only upon a decline in the value of the underlying stock rather than a
rise (as is the case with typical convertible instruments).
    Each option included in the Index would be a ``European-style''
option (i.e., an option which can only be exercised at its expiration)
with a 90-day term. The strike prices of the option positions included
in the Index would be determined based on the closing prices of the
options' underlying stocks as of the beginning of each 90-day period.
The barrier price of each such option would be 80% of the strike price.
At the expiration of each 90-day period, if an underlying stock closes
at or below its respective barrier price, a cash settlement payment in
an amount equal to the difference between the strike price and the
closing price of the stock would be deemed to be made, and the Index
value would be correspondingly reduced. If the underlying stock does
not close at or below the barrier price, then the option expires
worthless and the entire amount of the premium payment would be
retained within the Index.
    The components of the Index would be OTC down-and-in put options
written on 20 NMS stocks selected based on the following screening
parameters:
    1. U.S. listing of U.S. companies;
    2. Publicly listed and traded options available;
    3. Market capitalization greater than $5 billion;
    4. Top 20 stocks when ranked by 3-month implied volatility;
    5. Each underlying NMS stock would have a minimum trading volume of
at least 50 million shares for the preceding six months; and
    6. Each underlying NMS stock would have a minimum average daily
trading volume of at least one million shares and a minimum average
daily trading value of at least $10 million for the preceding six
months.
    The selection of the 20 underlying NMS stocks would occur each
quarter (March, June, September, and December) two days prior to the
third Friday of the month, in line with option expiration for listed
options. The selection of the 20 underlying stocks would not, however,
be limited to those with listed options expiring in March, June,
September, or December.
    The Index value would reflect a cash amount invested in on-the-run
three-month T-Bills, plus the premium collected on the short position
in the 20 down-and-in put options written by the Index each quarter.
The notional amount of each of the 20 down-and-in put options would be
equal to 1/20th of the cash amount in the Index at the beginning of
each quarter. The cash amount (initially 1,000 for the origination date
of the Index) would be incremented by premiums generated each quarter
from the 20 down-and-in put options sold, then decremented by cash
settlements of any down-and-in put options expiring in-the-money and
the distribution amount (as described below). The cash amount would be
invested in T-Bills and would accrete by interest earned on the T-
Bills.
    The End of Day Index Value would be calculated as follows: End of
Day Index Value = Beginning of Quarter Index Value + Premium Generated
- Option Values + Accrued Interest - distribution amount, where:
     Beginning of Quarter Index Value is 1,000 for the
origination date of the Index; thereafter, it is the previous quarter-
end End of Day Index Value;
     Premium Generated is the sum of Option Values for each of
the 20 down-and-in put options sold by the Index at the end of the
previous quarter;
     Option Value is the settlement value of each of the 20
down-and-in put options written by the Index at the end of each
quarter. The notional amount of each down-and-in put option sold by the
Index for the current quarter is 1/20th of the Beginning of Quarter
Index Value;
     Accrued Interest is the daily interest earned on the cash
amount held by the Index and invested in T-Bills;
     Cash amount of the Index for any quarter is the Beginning
of Quarter Index Value plus the Premium Generated for that quarter; and
     Distribution amount for any quarter and paid out at the
beginning of the next quarter is 2.5% of the End of Day Index Value for
the final day of the quarter. If such an amount exceeds the amount of
the Premium Generated, then the distribution amount would equal the
Premium Generated.
    A total return level for the Index would be calculated and
published at the end of each day. The total return calculation would
assume the quarterly index distribution is invested directly in the
Index at the beginning of the quarter in which it is paid.
    The Exchange has provided the following example. Stock ``ABC''
trades at $50 per share at the start of the 90-day period, and a down-
and-in 90-day put option was written at an 80% barrier (resulting in a
strike price of $50 per share and a barrier price of $40 per share) for
a premium of $4 per share:
     Settlement above the barrier price: If at the end of 90
days the ABC stock closed at any value above the barrier price of $40,
then the option would expire worthless and the Index's value would
reflect the retention of the $4 per share premium. The Index's value
thus would be increased by $4 per share on the ABC option position.
     Settlement at the barrier price: If at the end of 90 days
ABC closed at the barrier price of $40, then the option would settle in
cash at the closing price of $40, and the Index's value would be
reduced by $10 per share to reflect the settlement of the option.
However, the Index's value would reflect the retention of the $4 per
share premium, so the net loss to the Index's value would be $6 per
share on the ABC option position.
     Settlement below the barrier price: If at the end of 90
days, ABC closed at $35, then the option would settle in cash at the
closing price of $35, and the Index's value would be reduced by $15 per
share to reflect the settlement of the option. However, the Index's
value would reflect the retention of the $4 per share premium, so the
net loss to the Index's value would be $11 per share on the ABC option
position.
    As discussed above, the Index's value is equal to the value of the
options positions comprising the Index, plus a cash position. The cash
position starts at a base of 1,000. The cash position is increased by
option premiums generated by the option positions comprising the Index
and interest on the cash position at an annual rate equal to the three
month T-Bill rate. The cash position is decreased by cash settlement on
options which ``knock in'' (i.e., where the closing price of the
underlying stock at the end of the 90-day period is at or below the
barrier price). The cash position is also decreased by a deemed
quarterly cash distribution, currently targeted at the rate of 2.5% of
the value of the Index. However, if the option premiums generated
during the quarter are less

than 2.5%, the deemed distribution would be reduced by the amount of
the shortfall.

The Fund's Investments

    The Fund, under normal circumstances,\14\ would invest at least 80%
of its total assets in component securities that comprise the Index and
in T-Bills which would be collateral for the options positions. The
Fund would enter into the option positions determined by the Index
Provider by writing (i.e., selling) OTC 90-day down-and-in put options
in proportion to their weightings in the Index on economic terms which
mirror those of the Index. By writing an option, the Fund would receive
premiums from the buyer of the option, which would increase the Fund's
return if the option does not ``knock in'' and thus expires worthless.
However, if the option's underlying stock declines by a specified
amount (or more), the option would ``knock in'' and the Fund would be
required to pay the buyer the difference between the option's strike
price and the closing price. Therefore, by writing a down-and-in put
option, the Fund would be exposed to the amount by which the price of
the underlying is less than the strike price. Accordingly, the
potential return to the Fund would be limited to the amount of option
premiums it receives, while the Fund can potentially lose up to the
entire strike price of each option it sells. Further, if the value of
the stocks underlying the options sold by the Fund increases, the
Fund's returns would not increase accordingly.
---------------------------------------------------------------------------

    \14\ The term ``under normal circumstances'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the equities or options markets or the financial markets
generally; operational issues causing dissemination of inaccurate
market information; or force majeure type events such as systems
failure, natural or man-made disaster, act of God, armed conflict,
act of terrorism, riot or labor disruption, or any similar
intervening circumstance.
---------------------------------------------------------------------------

    Typically, the writer of a put option incurs an obligation to buy
the underlying instrument from the purchaser of the option at the
option's exercise price, upon exercise by the option purchaser.
However, the down-and-in put options to be sold by the Fund would be
settled in cash only. The Fund may need to sell down-and-in put options
on stocks other than those underlying the option positions contained in
the Index if the Fund is unable to obtain a competitive market from OTC
option dealers on a stock underlying a particular option position in
the Index, thus preventing the Fund from writing an option on that
stock.\15\
---------------------------------------------------------------------------

    \15\ The Fund would transact only with OTC options dealers that
have in place an International Swaps and Derivatives Association
agreement with the Fund.
---------------------------------------------------------------------------

    Every 90 days, the options included within the Index are cash
settled or expire, and new option positions are established. The Fund
would enter into new option positions accordingly. This 90-day cycle
likely would cause the Fund to have frequent and substantial portfolio
turnover. If the Fund receives additional inflows (and issues more
Shares accordingly in large numbers known as ``Creation Units'') during
a 90-day period, the Fund would sell additional OTC down-and-in put
options which would be exercised or expire at the end of such 90-day
period. Conversely, if the Fund redeems Shares in Creation Unit size
during a 90-day period, the Fund would terminate the appropriate
portion of the options it has sold accordingly.

Secondary Investment Strategies

    The Fund may invest its remaining assets in money market
instruments,\16\ including repurchase agreements \17\ or other funds
which invest exclusively in money market instruments, convertible
securities, structured notes (notes on which the amount of principal
repayment and interest payments are based on the movement of one or
more specified factors, such as the movement of a particular stock or
stock index), forward foreign currency exchange contracts, and in
swaps,\18\ options (other than options that the Fund principally would
write), and futures contracts.\19\ Swaps, options (other than options
the the Fund principally would write), and futures contracts (and
convertible securities and structured notes) may be used by the Fund in
seeking performance that corresponds to the Index and in managing cash
flows.\20\ The Fund would not invest in money market instruments as
part of a temporary defensive strategy to protect against potential
stock market declines. The Adviser anticipates that it may take
approximately three business days (i.e., each day the New York Stock
Exchange (``NYSE'') is open) for additions and deletions to the Index
to be reflected in the portfolio composition of the Fund.
---------------------------------------------------------------------------

    \16\ The Fund may invest a portion of its assets in high-quality
money market instruments on an ongoing basis to provide liquidity.
The instruments in which the Fund may invest include: (i) Short-term
obligations issued by the U.S. Government; (ii) negotiable
certificates of deposit (``CDs''), fixed time deposits, and bankers'
acceptances of U.S. and foreign banks and similar institutions;
(iii) commercial paper rated at the date of purchase ``Prime-1'' by
Moody's Investors Service, Inc. or ``A-1+'' or ``A-1'' by Standard &
Poor's or, if unrated, of comparable quality as determined by the
Adviser; (iv) repurchase agreements; and (v) money market mutual
funds. CDs are short-term negotiable obligations of commercial
banks. Time deposits are non-negotiable deposits maintained in
banking institutions for specified periods of time at stated
interest rates. Banker's acceptances are time drafts drawn on
commercial banks by borrowers, usually in connection with
international transactions.
    \17\ Repurchase agreements are agreements pursuant to which
securities are acquired by the Fund from a third party with the
understanding that they would be repurchased by the seller at a
fixed price on an agreed date. These agreements may be made with
respect to any of the portfolio securities in which the Fund is
authorized to invest. Repurchase agreements may be characterized as
loans secured by the underlying securities. The Fund may enter into
repurchase agreements with (i) member banks of the Federal Reserve
System having total assets in excess of $500 million and (ii)
securities dealers (``Qualified Institutions''). The Adviser would
monitor the continued creditworthiness of Qualified Institutions.
The Fund also may enter into reverse repurchase agreements, which
involve the sale of securities with an agreement to repurchase the
securities at an agreed-upon price, date, and interest payment and
have the characteristics of borrowing.
    \18\ Swap agreements are contracts between parties in which one
party agrees to make periodic payments to the other party
(``counterparty'') based on the change in market value or level of a
specified rate, index, or asset. In return, the counterparty agrees
to make periodic payments to the first party based on the return of
a different specified rate, index, or asset. Swap agreements would
usually be done on a net basis, the Fund receiving or paying only
the net amount of the two payments. The net amount of the excess, if
any, of the Fund's obligations over its entitlements with respect to
each swap would be accrued on a daily basis and an amount of cash or
highly liquid securities having an aggregate value at least equal to
the accrued excess would be maintained in an account at the Trust's
custodian bank.
    \19\ The Fund may utilize U.S. listed exchange-traded futures.
In connection with its management of the Trust, the Adviser has
claimed an exclusion from registration as a commodity pool operator
under the Commodity Exchange Act (``CEA''). Therefore, it is not
subject to the registration and regulatory requirements of the CEA,
and there are no limitations on the extent to which the Fund may
engage in non-hedging transactions involving futures and options
thereon, except as set forth in the Registration Statement.
    \20\ Swaps, options (other than options that the Fund
principally would write), and futures contracts would not be
included in the Fund's investment, under normal market
circumstances, of at least 80% of its total assets in component
securities that comprise the Index and in T-Bills, as described
above.
---------------------------------------------------------------------------

    The Fund may invest in the securities of other investment companies
(including money market funds). Under the 1940 Act, the Fund's
investment in investment companies is limited to, subject to certain
exceptions, (i) 3% of the total outstanding voting stock of any one
investment company, (ii) 5% of the Fund's total assets with respect to
any one investment company, and (iii) 10% of the Fund's total assets of
investment companies in the aggregate.
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment),
including Rule 144A securities. The Fund would monitor its portfolio
liquidity on an ongoing basis to determine whether, in light of current

circumstances, an adequate level of liquidity is being maintained, and
would consider taking appropriate steps in order to maintain adequate
liquidity if, through a change in values, net assets, or other
circumstances, more than 15% of the Fund's net assets are held in
illiquid securities. Illiquid securities include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
    The Fund intends to qualify for and to elect to be treated as a
separate regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended
    The Fund would not invest in non-U.S. equity securities. The Fund's
investments would be consistent with the Fund's investment objective
and would not be used to enhance leverage.

Pricing Fund Shares

    The Fund's OTC down-and-in put options on equity securities would
be valued pursuant to a third-party option pricing model. Debt
securities will be valued at the mean between the last available bid
and ask prices for such securities or, if such prices are not
available, at prices for securities of comparable maturity, quality,
and type. Securities for which market quotations are not readily
available, including restricted securities, will be valued by a method
that the Fund's Board of Trustees believe accurately reflects fair
value. Securities will be valued at fair value when market quotations
are not readily available or are deemed unreliable, such as when a
security's value or meaningful portion of the Fund's portfolio is
believed to have been materially affected by a significant event. Such
events may include a natural disaster, an economic event like a
bankruptcy filing, trading halt in a security, an unscheduled early
market close, or a substantial fluctuation in domestic and foreign
markets that has occurred between the close of the principal exchange
and the NYSE. In such a case, the value for a security is likely to be
different from the last quoted market price. In addition, due to the
subjective and variable nature of fair market value pricing, it is
possible that the value determined for a particular asset may be
materially different from the value realized upon such asset's sale.

Creations and Redemptions of Shares

    The Trust would issue and sell Shares of the Fund only in
``Creation Units'' of 100,000 Shares each on a continuous basis through
the Distributor, without a sales load, at its net asset value (``NAV'')
next determined after receipt, on any business day, of an order in
proper form. Creation Units of the Fund generally would be sold for
cash only, calculated based on the NAV per Share multiplied by the
number of Shares representing a Creation Unit (``Deposit Cash''), plus
a transaction fee.
    The Custodian, through the National Securities Clearing Corporation
(``NSCC''), would make available on each business day, prior to the
opening of business on NYSE Arca (currently 9:30 a.m. Eastern Time
(``E.T.'')), the amount of the Deposit Cash to be deposited in exchange
for a Creation Unit of the Fund.
    To be eligible to place orders with the Distributor and to create a
Creation Unit of the Fund, an entity must be (i) a ``Participating
Party,'' i.e., a broker-dealer or other participant in the clearing
process through the Continuous Net Settlement System of the NSCC; or
(ii) a Depository Trust Company (``DTC'') participant, and, in each
case, must have executed an agreement with the Distributor, with
respect to creations and redemptions of Creation Units.
    All orders to create Creation Units, whether through a
Participating Party or a DTC participant, must be received by the
Distributor no later than the closing time of the regular trading
session on the NYSE (ordinarily 4:00 p.m. E.T.) in each case on the
date such order is placed in order for creation of Creation Units to be
effected based on the NAV of Shares of the Fund as next determined on
such date after receipt of the order in proper form.
    Fund Shares may be redeemed only in Creation Units at the NAV next
determined after receipt of a redemption request in proper form by the
Fund through BNY and only on a business day. The Fund would not redeem
Shares in amounts less than a Creation Unit.
    With respect to the Fund, BNY, through the NSCC, would make
available prior to the opening of business on NYSE Arca (currently 9:30
a.m. E.T.) on each business day, the amount of cash that would be paid
(subject to possible amendment or correction) in respect of redemption
requests received in proper form on that day (``Redemption Cash'').
    The redemption proceeds for a Creation Unit generally would consist
of the Redemption Cash, as announced on the business day of the request
for redemption received in proper form, less a redemption transaction
fee.

Initial and Continued Listing

    The Exchange represents that the Shares would conform to the
initial and continued listing criteria under NYSE Arca Equities Rules
5.2(j)(3) and 5.5(g)(2), except that the Index is comprised of down-
and-in put options based on ``US Component Stocks'' \21\ rather than US
Component Stocks themselves. The Exchange further represents that, for
initial and/or continued listing, the Fund would be in compliance with
Rule 10A-3 under the Exchange Act,\22\ as provided by NYSE Arca
Equities Rule 5.3. A minimum of 100,000 Shares would be outstanding at
the commencement of trading on the Exchange. The Exchange would obtain
a representation from the issuer of the Shares that the NAV would be
calculated daily and made available to all market participants at the
same time.
---------------------------------------------------------------------------

    \21\ NYSE Arca Equities Rule 5.2(j)(3) defines the term ``US
Component Stock'' to mean an equity security that is registered
under Sections 12(b) or 12(g) of the Exchange Act or an American
Depositary Receipt, the underlying equity security of which is
registered under Sections 12(b) or 12(g) of the Exchange Act.
    \22\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Availability of Information

    The Fund's Web site (www.alpsetfs.com), which would be publicly
available prior to the public offering of the Shares, would include a
form of the prospectus for the Fund that may be downloaded. The Fund's
Web site would include additional quantitative information updated on a
daily basis, including, for the Fund, (1) daily trading volume, the
prior business day's reported closing price, NAV and mid-point of the
bid/ask spread at the time of calculation of such NAV (``Bid/Ask
Price''),\23\ and a calculation of the premium and discount of the Bid/
Ask Price against the NAV, and (2) data in chart format displaying the
frequency distribution of discounts and premiums of the daily Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters.\24\
---------------------------------------------------------------------------

    \23\ The Bid/Ask Price of the Fund would be determined using the
mid-point of the highest bid and the lowest offer for Shares on the
Exchange as of the time of calculation of the Fund's NAV. The
records relating to Bid/Ask Prices would be retained by the Fund and
its service providers.
    \24\ Under accounting procedures followed by the Fund, trades
made on the prior business day (``T'') would be booked and reflected
in NAV on the current business day (``T+1''). Accordingly, the Fund
would be able to disclose at the beginning of the business day the
portfolio that would form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

    On a daily basis, the Adviser would disclose for each portfolio
security and other financial instrument of the Fund

the following information: ticker symbol (if applicable), name of
security and financial instrument, number of securities or dollar value
of financial instruments held in the portfolio, and percentage
weighting of the security and financial instrument in the portfolio.
The Fund's portfolio holdings, including information regarding its
option positions, would be disclosed each day on the Fund's Web site.
The Web site information would be publicly available at no charge.
    The NAV per Share for the Fund would be determined once daily as of
the close of the NYSE, usually 4:00 p.m. E.T., each day the NYSE is
open for trading. NAV per Share would be determined by dividing the
value of the Fund's portfolio securities, cash and other assets
(including accrued interest), less all liabilities (including accrued
expenses), by the total number of Shares outstanding. As discussed
above, the OTC down-and-in put options would be valued pursuant to a
third-party option pricing model.\25\
---------------------------------------------------------------------------

    \25\ See ``Pricing Fund Shares'' supra.
---------------------------------------------------------------------------

    Investors could also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and its Form N-
CSR and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder
Reports would be available free upon request from the Trust, and those
documents and the Form N-CSR and Form N-SAR may be viewed on-screen or
downloaded from the Commission's Web site at www.sec.gov. Information
regarding market price and trading volume of the Shares would be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information would be published daily in the financial section of
newspapers. Quotation and last-sale information for the Shares would be
available via the Consolidated Tape Association (``CTA'') high-speed
line. The value of the Index and the values of the OTC down-and-in put
options components in the Index (which would each be weighted at \1/20\
of the Index value) would be published by one or more major market data
vendors every 15 seconds during the NYSE Arca Core Trading Session of
9:30 a.m. E.T. to 4:00 p.m. E.T. A list of components of the Index,
with percentage weightings, would be available on the Exchange's Web
site. Each of the stocks underlying the OTC down-and-in put options in
the Index also would underlie standardized options contracts traded on
U.S. options exchanges, which would disseminate quotation and last-sale
information with respect to such contracts. In addition, the Intraday
Indicative Value would be calculated and disseminated by the Exchange,
and widely disseminated by one or more major market data vendors, at
least every 15 seconds during the Core Trading Session.\26\ The
Exchange states that the dissemination of the Intraday Indicative Value
would allow investors to determine the value of the underlying
portfolio of the Fund on a daily basis and to provide a close estimate
of that value throughout the trading day.
---------------------------------------------------------------------------

    \26\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available
Intraday Indicative Values taken from the CTA or other data feeds.
See Notice, supra note 4, at 64157. The IIV calculations are based
on local market prices and may not reflect events that occur
subsequent to the local market's close. See Registration Statement,
supra note 8, at 11.
---------------------------------------------------------------------------

Trading Halts

    With respect to trading halts, the Exchange states that it may
consider all relevant factors in exercising its discretion to halt or
suspend trading in the Shares of the Fund.\27\ Trading in Shares of the
Fund would be halted if the circuit breaker parameters in NYSE Arca
Equities Rule 7.12 have been reached. Trading also may be halted
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable. These may include:
(1) The extent to which trading is not occurring in the securities
comprising the Fund's portfolio holdings and/or the financial
instruments of the Fund; or (2) whether other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.
---------------------------------------------------------------------------

    \27\ See NYSE Arca Equities Rule 7.12, Commentary .04.
---------------------------------------------------------------------------

    If the Intraday Indicative Value, the Index value, or the value of
the components of the Index is not available or is not being
disseminated as required, the Exchange may halt trading during the day
in which the disruption occurs; if the interruption persists past the
day in which it occurred, the Exchange would halt trading no later than
the beginning of the trading day following the interruption. The
Exchange would obtain a representation from the Fund that the NAV for
the Fund would be calculated daily and would be made available to all
market participants at the same time. Under NYSE Arca Equities Rule
7.34(a)(5), if the Exchange becomes aware that the NAV for the Fund is
not being disseminated to all market participants at the same time, it
would halt trading in the Shares until such time as the NAV is
available to all market participants.

Trading Rules

    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares would trade on
the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m. E.T. in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange states that it has appropriate rules to
facilitate transactions in the Shares during all trading sessions. As
provided in NYSE Arca Equities Rule 7.6, Commentary .03, the minimum
price variation (``MPV'') for quoting and entry of orders in equity
securities traded on the NYSE Arca Marketplace is $0.01, with the
exception of securities that are priced less than $1.00 for which the
MPV for order entry is $0.0001.

Surveillance

    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products (which include Investment
Company Units) to monitor trading in the Shares. The Exchange
represents that these procedures are adequate to properly monitor
Exchange trading of the Shares in all trading sessions and to deter and
detect violations of Exchange rules and applicable federal securities
laws.
    The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations.
    The Exchange may obtain information via the Intermarket
Surveillance Group (``ISG'') from other exchanges that are members of
ISG or with which the Exchange has entered into a comprehensive
surveillance sharing agreement.\28\
---------------------------------------------------------------------------

    \28\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
portfolio for the Fund may trade on markets that are members of ISG
or with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.

Suitability

    Currently, NYSE Arca Equities Rule 9.2(a) (Diligence as to
Accounts)

provides that an Equity Trading Permit (``ETP'') Holder, before
recommending a transaction in any security, must have reasonable
grounds to believe that the recommendation is suitable for the customer
based on any facts disclosed by the customer as to its other security
holdings and as to its financial situation and needs. Further, the rule
provides, with a limited exception, that prior to the execution of a
transaction recommended to a non-institutional customer, the ETP Holder
must make reasonable efforts to obtain information concerning the
customer's financial status, tax status, investment objectives, and any
other information that such ETP Holder believes would be useful to make
a recommendation.
    Prior to the commencement of trading, the Exchange would inform its
ETP Holders of the suitability requirements of NYSE Arca Equities Rule
9.2(a) in an Information Bulletin (``Information Bulletin'' or
``Bulletin''). Specifically, ETP Holders would be reminded in the
Information Bulletin that, in recommending transactions in these
securities, they must have a reasonable basis to believe that (1) the
recommendation is suitable for a customer given reasonable inquiry
concerning the customer's investment objectives, financial situation,
needs, and any other information known by such member, and (2) the
customer can evaluate the special characteristics, and is able to bear
the financial risks, of an investment in the Shares. In connection with
the suitability obligation, the Information Bulletin would also provide
that members must make reasonable efforts to obtain the following
information: (1) The customer's financial status; (2) the customer's
tax status; (3) the customer's investment objectives; and (4) such
other information used or considered to be reasonable by such member or
registered representative in making recommendations to the customer.
    In addition, FINRA has issued a regulatory notice relating to sales
practice procedures applicable to recommendations to customers by FINRA
members of reverse convertibles, as described in FINRA Regulatory
Notice 10-09 (February 2010) (``FINRA Regulatory Notice'').\29\ As
described above, while the Fund would not invest in traditional reverse
convertible securities, the down-and-in put options written by the Fund
would have the effect of exposing the Fund to the return of reverse
convertible securities as if the Fund owned such reverse convertible
securities directly. Therefore, the Bulletin would state that ETP
Holders that carry customer accounts should follow the FINRA guidance
set forth in the FINRA Regulatory Notice.
---------------------------------------------------------------------------

    \29\ The Exchange notes that NASD Rule 2310 relating to
suitability, referenced in the FINRA Regulatory Notice, has been
superseded by FINRA Rule 2111. See FINRA Regulatory Notice 12-25
(May 2012).
---------------------------------------------------------------------------

    As disclosed in the Registration Statement, the Fund is designed
for investors who seek to obtain income through selling options on
select equity securities which the Index Provider determines to have
the highest volatility. Because of the high volatility of the stocks
underlying the options sold by the Fund, it is possible that the value
of such stocks would decline in sufficient magnitude to trigger the
exercise of the options and cause a loss which may outweigh the income
from selling such options. The Registration Statement states that,
accordingly, the Fund should be considered a speculative trading
instrument and is not necessarily appropriate for investors who seek to
avoid or minimize their exposure to stock market volatility. The
Exchange's Information Bulletin regarding the Fund, described below,
would provide information regarding the suitability of an investment in
the Shares, as stated in the Registration Statement.

Information Bulletin

    Prior to the commencement of trading, the Exchange would inform its
ETP Holders in the Bulletin of the special characteristics and risks
associated with trading the Shares. Specifically, the Bulletin would
discuss the following: (1) The procedures for purchases and redemptions
of Shares in Creation Units (and that Shares are not individually
redeemable); (2) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated Intraday Indicative Value would not be
calculated or publicly disseminated; (4) how information regarding the
Intraday Indicative Value is disseminated; (5) the requirement that ETP
Holders deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (6) trading information.
    In addition, the Bulletin would reference that the Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin would discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Exchange Act.
The Bulletin would also disclose that the NAV for the Shares would be
calculated after 4:00 p.m. E.T. each trading day.
    Additional information regarding the Trust, the Fund, and the
Shares, including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosure policies,
distributions, and taxes, among other things, is included in the Notice
and Registration Statement, as applicable.\30\
---------------------------------------------------------------------------

    \30\ See Notice and Registration Statement, supra notes 4 and 8,
respectively.
---------------------------------------------------------------------------

IV. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEArca-2012-108 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \31\ to determine whether the proposed rule
change, as modified by Amendment No. 1 thereto, should be approved or
disapproved. Institution of such proceedings is appropriate at this
time in view of the legal and policy issues raised by the proposed rule
change, as discussed below. Institution of proceedings does not
indicate that the Commission has reached any conclusions with respect
to any of the issues involved. Rather, as described in greater detail
below, the Commission seeks and encourages interested persons to
provide additional comment on the proposed rule change.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\32\ the Commission is
providing notice of the grounds for disapproval under consideration. In
particular, Section 6(b)(5) of the Act \33\ requires, among other
things, that the rules of a national securities exchange be designed to
prevent fraudulent and manipulative acts and practices, 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; and not
be designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \32\ Id.
    \33\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As discussed above, the Exchange's proposal would allow the
Exchange to list and trade Shares of the Fund under NYSE Arca Equities
Rule 5.2(j)(3), which governs the listing and trading of Investment
Company Units. The Fund would seek investment results that correspond
generally to the performance, before the Fund's fees and

expenses, of the Index. The Index does not meet the ``generic'' listing
requirements of Commentary .01(a)(A) to NYSE Arca Equities Rule
5.2(j)(3) applicable to the listing of Investment Company Units based
upon an index of US Component Stocks, because the Index consists of OTC
down-and-in put options, written on 20 of the most volatile U.S. stocks
that have market capitalization of at least $5 billion, as further
described above. In accordance with its investment strategy, the Fund
would sell OTC down-and-in put options in proportion to their
weightings in the Index on economic terms which mirror those of the
Index.
    The Commission solicits comment on whether the proposal is
consistent with the Exchange Act and whether the Exchange has
sufficiently met its burden in presenting a statutory analysis of how
its proposal is consistent with the Exchange Act. In particular, the
grounds for disapproval under consideration include whether the
Exchange's proposal is consistent with Section 6(b)(5) of the Exchange
Act, which requires, among other things, that the rules of a national
securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade,'' and ``to protect investors and the public
interest.'' \34\ First, the Commission continues to evaluate the
potential impact of the discontinuous payoff structure of the OTC down-
and-in put options that would be written by the Fund on the potential
for manipulation of the securities underlying the options or the
Shares. In addition, the Commission continues to evaluate the proposed
disclosure regarding the strategy, risks and potential rewards,
assumptions, and expected performance of the Fund, including the impact
of the Fund's exposure through the writing of OTC down-and-in put
options, which would have the effect of exposing the Fund to the return
of reverse convertible securities. Furthermore, the Commission
continues to evaluate the sufficiency of the transparency regarding the
pricing of the OTC down-and-in put options, and the impact on the
ability of investors to accurately price and hedge the Shares.
---------------------------------------------------------------------------

    \34\ Id.
---------------------------------------------------------------------------

V. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
concerns identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) or any other provision of the Act, or
the rules and regulations thereunder. Although there do not appear to
be any issues relevant to approval or disapproval which would be
facilitated by an oral presentation of views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\35\
---------------------------------------------------------------------------

    \35\ Section 19(b)(2) of the Act, as amended by the Securities
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by February 13, 2013. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
February 27, 2013.
    The Commission asks that commenters address the sufficiency and
merit of the Exchange's statements in support of the proposal, in
addition to any other comments they may wish to submit about the
proposed rule change. In particular, the Commission seeks comment on
the following:
    1. What are commenters' views on whether investors would be able to
understand the strategy, risks and potential rewards, assumptions and
expected performance of the Fund, including the effect of the Fund's
exposure to its down-and-in put options? With respect to the trading of
the Fund's Shares on the Exchange, do commenters believe that the
Exchange's rules governing sales practices are adequately designed to
ensure the suitability of recommendations regarding the Fund's Shares?
Why or why not? If not, should the Exchange's rules governing sales
practices be enhanced? If so, in what way(s)? With respect to the
trading of the Fund's Shares on the Exchange, do commenters believe
that the proposed disclosure of the nature of, and the risks of
investing in, the Shares is sufficient? Why or why not? If not, should
the Exchange be required to enhance its disclosure relating to the
Shares? If so, in what way(s) should the disclosure be enhanced?
    2. The Fund states that the OTC down-and-in put options that it
will write may experience greater discontinuity in pricing as they
approach expiration, especially if the underlying equity price is close
to the barrier level.\36\ For example, in the example provided by the
Exchange described above, where Stock ABC trades at $50 per share at
the start of the 90-day period, and a down-and-in 90-day put option is
written at an 80% barrier (resulting in a strike price of $50 per share
and a barrier price of $40 per share), as the price of Stock ABC goes
from $40 to $40.01, the value of the option goes from $10 to $0. Do
commenters believe that this discontinuous payoff structure of down-
and-in put options could give rise to the potential for manipulation?
Does this type of barrier option have the potential to provide an
incentive for someone who has a position in the option or the Fund to
manipulate the price of the underlying stock when it is near the knock-
in price on the expiration date? Why or why not?
---------------------------------------------------------------------------

    \36\ See Registration Statement, supra note 8, at 3.
---------------------------------------------------------------------------

    3. Do commenters believe that the market for OTC down-and-in put
options is sufficiently liquid and that pricing of those options is
sufficiently transparent for investors in the Shares? Why or why not?
Do commenters believe that investors would be able to accurately value
such options? Why or why not?
    4. Do commenters believe that the market for OTC down-and-in put
options is sufficiently liquid and that pricing of those options is
sufficiently transparent for authorized participants and market makers
to effectively arbitrage the OTC market and the market for the Shares
through the trading day? Why or why not?
    5. The Commission understands that some market makers might use
listed options to synthetically replicate down-and-in put options that
may not be sufficiently liquid to buy and sell intraday. Do commenters
believe the replication of down-and-in-put options through the purchase
and sale of specific listed options would be an effective way for
market makers to arbitrage the value of a down-and-in put option
against the price of the Shares? Why or why not?
    6. Are there other methods for authorized participants or market
makers to hedge the market risk derived from arbitraging any
differences between the market price of the Shares and the expected NAV
per Share of the Fund?

    7. Do commenters believe that the ability of market makers and
authorized participants to arbitrage throughout the day will be
sufficiently robust to ensure that prices of the Shares closely track
the intraday NAV per Share of the Fund? Are there circumstances in
which significant premiums or discounts could develop?
    8. Do commenters believe that the third-party model that would be
used to value the Fund's OTC down-and-in put options would accurately
reflect prices at which the Fund could enter into new OTC down-and-in
put options or unwind existing OTC down-and-in put options? Why or why
not? Should the Exchange or the Fund be required to provide further
disclosure relating to the formula and methodology of such third-party
pricing model? Would such disclosure better help investors to price the
OTC down-and-in put options held by the Fund?
    9. Are there any characteristics unique to barrier options on
equity securities that would make them more difficult to value than
options on equity securities without a barrier feature? If so, what are
they and how could they potentially impact the valuation?
    10. Are there any circumstances under which the nature of barrier
options would cause market makers to widen bid and offer spreads for
the Shares? For example, if a significant number of components stocks
are at or near a 20% loss a few days before expiration of the down-and-
out-put options, would market makers widen their spreads to reflect the
added uncertainty?
    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-NYSEArca-2012-108 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Numbers SR-NYSEArca-2012-108. 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 filings 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-NYSEArca-2012-108 and should
be submitted on or before February 13, 2013. Rebuttal comments should
be submitted by February 27, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
---------------------------------------------------------------------------

    \37\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01224 Filed 1-22-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 196 (Tuesday, October 11, 2011)]
[Notices]
[Pages 62894-62897]
[FR Doc No: 2011-26283]

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

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Safety Advisory 2011-02]

Following Procedures When Going Between Rolling Equipment

AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).

ACTION: Notice of Safety Advisory.

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

SUMMARY: FRA is issuing Safety Advisory 2011-02 to remind railroads and
their employees of the importance of following procedures when going

between rolling equipment. This safety advisory contains various
recommendations to railroads to ensure that these issues are addressed
by appropriate railroad operating policies and procedures, and to
ensure that those policies and procedures are effectively implemented.

FOR FURTHER INFORMATION CONTACT: Ron Hynes, Director, Office of Safety
Assurance and Compliance, Office of Railroad Safety, FRA, 1200 New
Jersey Avenue, SE., Washington, DC 20590, telephone<PHONE_NUMBER>; or
Joseph St. Peter, Trial Attorney, Office of Chief Counsel, FRA, 1200
New Jersey Avenue, SE., Washington, DC 20590, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The overall safety of railroad operations
has improved in recent years. However, recent fatal events highlight
the need for the railroad industry to refocus its attention on
compliance with safety rules and procedures that apply to employees
who, in the course of their work, place themselves between rolling
equipment. The railroad industry has long recognized that employees
whose responsibilities necessitate physically placing themselves
between rolling equipment, as often occurs during switching operations,
must take adequate safety precautions and be alert and aware of their
surroundings at all times. Consequently, railroads developed rules and
procedures designed to ensure the safety of employees when between
rolling equipment.
    In 1998, the industry recognized a troubling increase in the number
of employee fatalities occurring during switching operations, including
incidents of employees effectively being crushed between rolling
equipment. At FRA's request, a voluntary group comprised of industry
stakeholders was formed to examine and address that trend of increasing
deaths. The group included representatives from the Association of
American Railroads (AAR), the American Short Line and Regional Railroad
Association (ASLRRA), the Brotherhood of Locomotive Engineers and
Trainmen (BLET), the United Transportation Union (UTU), and FRA. The
group was later named the Switching Operations Fatality Analysis (SOFA)
Working Group. In October 1999, the Working Group issued a report
titled ``Findings and Recommendations of the SOFA Working Group.'' The
report can be found on FRA's Web site at http://www.fra.dot.gov/Pages/1781.shtml.\1\ The report contains five major findings with an
accompanying recommendation and discussion for each finding. The first
of these five recommendations is directly applicable to situations
where employees go between rolling equipment, or otherwise foul track
or equipment. That recommendation reads as follows:

    \1\ More recently, in March 2011, the SOFA Working Group issued
a report titled ``Findings and Advisories of the SOFA Working
Group,'' available online at: http://www.fra.dot.gov/rrs/pages/fp_Findings%20and%20Advisories.shtml.

    Any crew member intending to foul track or equipment must notify
the locomotive engineer before such action can take place. The
locomotive engineer must then apply locomotive or train brakes, have
the reverser centered, and then confirm this action with the
individual on the ground. Additionally, any crew member that intends
to adjust knuckles/drawbars, or apply or remove EOT device, must
insure that the cut of cars to be coupled into is separated by no
less than 50 feet. Also, the person on the ground must physically
inspect the cut of cars not attached to the locomotive to insure
that they are completely stopped and, if necessary, a sufficient
number of hand brakes must be applied to insure the cut of cars will
---------------------------------------------------------------------------
not move.

    Many railroads have procedures similar to those described in this
SOFA recommendation, and other railroads have adopted or modified their
procedures to be utilized when going between rolling equipment to
reflect this recommendation.
    When the pre-SOFA, 9-year period (1992-2000) is compared with the
post-SOFA, 9-year period (2001-2009), the industry realized a 60-
percent reduction (15 vs. 6) in the number of employees killed when
working between rolling equipment. Unfortunately, this positive trend
has not continued. Within the last 10 weeks, the railroad industry has
experienced three employee fatalities that have occurred when employees
were between rolling equipment. In addition to these most recent
fatalities, over the last 2 years, two additional employee fatalities
have occurred when employees were between rolling equipment. This rise
in employee fatalities as a result of being crushed between rolling
equipment suggests a need to remind railroads and their employees of
the critical importance of maintaining and abiding by railroad rules
and procedures designed to ensure safety when going between rolling
equipment.
    The following is an overview of the circumstances surrounding these
recent fatal incidents. Information regarding the three most recent
incidents is based on FRA's preliminary investigation findings as the
probable causes and or contributing factors of these incidents have not
yet been established. Accordingly, nothing in this safety advisory is
intended to attribute a definitive cause to these incidents, or place
responsibility for the incidents on the acts or omissions of any person
or entity.

Recent Incidents

     The most recent incident occurred on September 8, 2011. At
approximately 5:15 a.m., a single helper locomotive had coupled to the
rear of a standing 125-car train with the intent of assisting the
train's movement up an ascending grade. At some point, the movement
stopped and the conductor of the single helper locomotive detrained and
separated his locomotive from the train he and his engineer had
assisted. After the separation, the conductor of the single helper
locomotive reattached the end of train device to the last car of the
assisted train, and announced to the crew of that train that he had
finished his tasks. He then began to walk back to his locomotive.
Shortly thereafter, the slack on the assisted train adjusted and the
conductor was crushed between the rear car of the assisted train and
his locomotive. The deceased was 59 years old with 5 years of railroad
experience.
     On August 15, 2011, at approximately 1:30 p.m., a three-
person remote control locomotive (RCL) crew consisting of a foreman, a
helper, and a trainee entered a track in a bowl yard from the east and
coupled onto a cut of cars. The foreman and the trainee boarded the
locomotive to provide point protection and the helper, using his remote
control transmitter, began stretching the cars eastward to identify
gaps created by uncoupled blocks of cars. As the gaps were revealed,
the helper repeatedly entered the space between the blocks of cars and
made adjustments to knuckles and/or drawbars. Using his remote control
transmitter, he then shoved the cars attached to the locomotive
westward to couple the cars before continuing the process. The last
time the helper went into a gap to adjust the knuckles and/or drawbars,
the cars attached to the locomotive moved west and crushed the helper
between the cars being coupled. The deceased was 52 years old and had
approximately 17 years of railroad experience.
     On July 25, 2011, at approximately 12:30 a.m., a two-
person RCL operation had shoved into a classification track and coupled
to the westernmost car on the track. The RCL conductor on the crew was
creating gaps in the cuts of cars (by pulling west) to adjust couplers

and/or align drawbars with the intent of coupling the entire track of
28 cars and pulling it from the classification track. The conductor's
helper was riding on the locomotive to provide point protection. The
grade on the track was descending from east to west. During one such
operation, when the conductor opened a gap, the cars standing to the
east of him rolled westward into the cars attached to the locomotive,
crushing the conductor. The deceased was 33 years old and had
approximately 3[frac12] years of railroad experience.
     On July 13, 2010, at approximately 1:30 a.m., a switching
crew was performing a conventional flat, switching operation on a lead
track. After separating a cut of cars, the conductor entered the space
between the cars attached to his locomotive and those that he had just
cut away from in order to make an adjustment to a coupler. He was
crushed between the cars still attached to his locomotive and the cut
of cars the crew had just cut away from. The deceased was 35 years old
and had approximately 6 years of railroad experience.
     On May 10, 2009, at approximately 6:40 p.m., a remote
control locomotive operator (RCO) was working in a bowl track, coupling
railroad cars together for placement on a departure track. The RCO
created gaps in the cuts of cars to adjust couplers and/or align
drawbars, and then coupled the cars attached to the locomotive to the
cars left standing. The RCO also replaced a knuckle on one of the cars
he intended to couple. The RCO went in between the cars to adjust the
knuckle he had just installed, and was crushed between equipment when
the drawbars bypassed. The deceased employee was 33 years old and had
approximately 8 years of railroad experience. The National
Transportation Safety Board (NTSB) investigated this incident and cited
the deceased employee's loss of situational awareness when he stepped
between moving equipment in violation of the railroad's safety rules as
a probable cause of the incident.
    FRA understands that multiple factors typically contribute to fatal
events. Three of the five cases outlined above involved remote control
locomotive operations, and in all three cases, the fatally injured
employee was in control of the movement at the time of the incident.
The fact that RCLs were in use in three incidents does not appear to
have any bearing on the events. In the 2010 conventional switching
incident there appears to have been no radio transmissions made
announcing that the employee on the ground was going between cuts of
cars. In the most recent event, it appears there may not have been
sufficient distance between the rolling equipment the employee went
between.
    Each of the above described events, however, demonstrate one
consistency--the employees involved either did not have enough room or
time to avoid the moving equipment, or were unaware that any equipment
they were working with was in motion. These incidents suggest that
existing railroad rules governing going between rolling equipment may
not have been fully complied with, and also potentially indicate a loss
of situational awareness by the employees involved, as well as
inadequate management oversight of safety rules compliance by
employees.\2\
---------------------------------------------------------------------------

    \2\ FRA published Safety Advisory 2010-03 (75 Fed. Reg. 63893
(Oct. 18, 2010)), titled ``Staying Alert and Situational
Awareness,'' in response to railroad incidents where employees were
killed. In addition to the recommendations made in this Safety
Advisory 2011-02, FRA encourages railroads to review those
recommendations previously made in Safety Advisory 2010-03 as well.
---------------------------------------------------------------------------

    Railroad operating employees work in an environment which is, by
nature, often absent direct management oversight. As the above examples
indicate, even slight lapses in rules compliance and situational
awareness can lead to tragedy. Without a strong sense of personal
responsibility for one's own safety, employees can become complacent
and a danger to themselves or other crewmembers. A culture of
performing each task safely and as instructed in training must be
reinforced not only by management, but by senior, more experienced
employees as well. Good workplace habits should be passed along, while
questionable work practices should be identified and re-evaluated as
newer employees are brought into the railroad workforce. At the same
time, railroad management must positively reinforce the need for
employees to perform their tasks safely and in accordance with
established rules and procedures, and as operations change, management
must review existing rules and procedures to ensure that the relevant
safety risks of the operating environment are addressed, and that
employees are appropriately trained. Moreover, railroad management must
eliminate the pressures that it places on employees to expedite train
and yard movements as such pressures can negatively impact an
employee's ability and desire to perform their assigned task safely.
    The discussion contained in this safety advisory is not intended to
place blame on or assign responsibility to individuals or railroads,
but to emphasize the fact that a robust culture of operating and safety
rules compliance is everyone's job. Too often, it is not until after an
incident has occurred that railroad management, labor, and regulators
fully realize that dangerous work habits were formed and those routine
behaviors have not been properly addressed. Support from railroad
management and peer pressure from fellow employees encouraging
individuals to perform each task in a safe manner via the proper
procedures will help railroad employees maintain responsibility for
their own safety.
    Recommended Railroad and Railroad Employee Action: In light of the
above discussion, and in an effort to maintain a heightened sense of
safety vigilance among railroad employees who place themselves between
pieces of rolling equipment, FRA recommends that railroads:
    (1) Review current operating and safety rules that specifically
address both remote control locomotive and conventional switching
operations that require employees to go between rolling equipment, and
determine whether those rules provide adequate protection to employees,
or need to be updated or revised.
    (2) Develop, implement, and monitor sound communication protocols
that require employees on multi-person switch crews to notify their
fellow crewmembers when the need arises to enter between two pieces of
rolling equipment--regardless of whether the employee is the primary
RCO or working on a conventional crew.
    (3) Review the SOFA Safety Recommendation  1, Adjusting
Knuckles, Adjusting Drawbars, and installing End of Train Devices,
reproduced above, and communicate its procedures implementing that
recommendation to employees working in yards or other locations where
the possibility of entering between rolling equipment exists.
    (4) Convey to employees that their own personal safety is their
responsibility and that railroad management supports and encourages
those employees that make safety their number one priority, regardless
of their immediate assignment.
    (5) Convey to employees that they should encourage fellow employees
to perform their tasks safely and in compliance with established
railroad rules and procedures.
    FRA encourages railroad industry members to take action that is
consistent with the preceding recommendations, and to take other
complimentary actions to help ensure the safety of the Nation's
railroad employees. FRA may modify this Safety Advisory 2011-02, issue

additional safety advisories, or take other appropriate actions
necessary to ensure the highest level of safety on the Nation's
railroads, including pursuing other corrective measures under its rail
safety authority.

    Issued in Washington, DC, on October 5, 2011.
Joseph C. Szabo,
Administrator.
[FR Doc. 2011-26283 Filed 10-7-11; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)]
[Notices]
[Pages 34674-34675]
[FR Doc No: 2018-15564]

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

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2018-0034]

Qualification of Drivers; Exemption Applications; Diabetes

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of denials.

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

SUMMARY: FMCSA announces its decision to deny applications from 14
individuals who requested an exemption from the Federal Motor Carrier
Safety Regulations (FMCSRs) prohibiting persons with insulin-treated
diabetes mellitus (ITDM) from operating a commercial motor vehicle
(CMV) in interstate commerce.

FOR FURTHER INFORMATION CONTACT: Ms. Christine A. Hydock, Chief,
Medical Programs Division,<PHONE_NUMBER>, [email protected], FMCSA,
Department of Transportation, 1200 New Jersey Avenue SE, Room W64-224,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.,
e.t., Monday through Friday, except Federal holidays. If you have
questions regarding viewing or submitting material to the docket,
contact Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Electronic Access

    You may see all the comments online through the Federal Document
Management System (FDMS) at: http://www.regulations.gov.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov and/or Room W12-140 on the
ground level of the West Building, 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., e.t., Monday through Friday,
except Federal holidays.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to http://www.regulations.gov, as described in
the system of records notice (DOT/ALL-14 FDMS), which can be reviewed
at http://www.dot.gov/privacy.

II. Background

    FMCSA received applications from 14 individuals who requested an
exemption from the FMCSRs prohibiting persons with ITDM from operating
a CMV in interstate commerce.
    FMCSA has evaluated the eligibility of these applicants and
concluded that granting these exemptions would not provide a level of
safety that would be equivalent to or greater than, the level of safety
that would be obtained by complying with the regulation 49 CFR
391.41(b)(3).

III. Basis for Exemption Determination

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may grant an exemption if
it finds such an exemption would likely achieve a level of safety that
is equivalent to, or greater than, the level that would be achieved
absent such an exemption.
    The Agency's decision regarding these exemption applications is
based on the eligibility criteria, the terms and conditions for Federal
exemptions, and an individualized assessment of each applicant's
medical information provided by the applicant.

IV. Conclusion

    The Agency has determined that these applicants do not satisfy the
criteria eligibility or meet the terms and conditions of the Federal
exemption and granting these exemptions would not provide a level of
safety that would be equivalent to or greater than, the level of safety
that would be obtained by complying with the regulation 49 CFR
391.41(b)(3). Therefore, the 14 applicants in this notice have been
denied exemptions from the physical qualification standards in 49 CFR
391.41(b)(3).
    Each applicant has, prior to this notice, received a letter of
final disposition regarding his/her exemption

request. Those decision letters fully outlined the basis for the denial
and constitutes final action by the Agency. This notice summarizes the
Agency's recent denials as required under 49 U.S.C. 31315(b)(4) by
periodically publishing names and reasons for denial.
    The following six applicants have had more than one hypoglycemic
episode requiring hospitalization or the assistance of others, or has
had one such episode but has not had one year of stability following
the episode:

Anthony D. Anderson (MN)
Austin T. Brooks (MO)
Joshua G. Christensen (NC)
Alan C. Hageman (IA)
James Kopec (PA)
Samuel A. Rosseau (MA)

    The following five applicants had other medical conditions making
the applicant otherwise unqualified under the Federal Motor Carrier
Safety Regulations:

Eugene C. Arnett (WI)
Donald L. Conklin (IN)
Steven C. Kasten (IL)
Daniel R. Leon (CO)
Lee H. Watkins (OH)

    The following applicant, Anthony L. Golden (DE), did not have
endocrinologists willing to make statements that he is able to operate
CMVs from a diabetes standpoint.
    The following applicant, Marty G. Niles (MT), had other
miscellaneous reasons making the applicant otherwise unqualified under
the Federal Motor Carrier Safety Regulations.
    The following applicant, Robert J. Louis (LA), has peripheral
neuropathy or circulatory insufficiency of the extremities likely to
interfere with the ability to operate a CMV.

    Issued on: July 13, 2018.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2018-15564 Filed 7-19-18; 8:45 am]
 BILLING CODE 4910-EX-P


[Federal Register Volume 88, Number 121 (Monday, June 26, 2023)]
[Notices]
[Pages 41394-41395]
[FR Doc No: 2023-13488]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG23-197-000.
     Applicants: SR DeSoto II, LLC.
     Description: SR DeSoto II, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
     Filed Date: 6/16/23.
     Accession Number: 20230616-5187.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: EG23-198-000.
    Applicants: SR DeSoto III, LLC.
     Description: SR DeSoto III, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
    Filed Date: 6/16/23.
     Accession Number: 20230616-5189.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: EG23-199-000.
     Applicants: SR DeSoto III Lessee, LLC.
     Description: SR DeSoto III Lessee, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
     Filed Date: 6/16/23.
     Accession Number: 20230616-5190.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: EG23-200-000.
     Applicants: SR Canadaville, LLC.
     Description: SR Canadaville, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
    Filed Date: 6/16/23.
    Accession Number: 20230616-5193.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: EG23-201-000.
     Applicants: SR Canadaville Lessee, LLC.
     Description: SR Canadaville Lessee, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
    Filed Date: 6/16/23.
    Accession Number: 20230616-5194.
    Comment Date: 5 p.m. ET 7/7/23,

    Docket Numbers: EG23-202-000.
     Applicants: SR Lambert I, LLC.
     Description: SR Lambert I, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
     Filed Date: 6/16/23.
     Accession Number: 20230616-5196.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: EG23-203-000.
     Applicants: SR Lambert II, LLC.
     Description: SR Lambert II, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
     Filed Date: 6/16/23.
    Accession Number: 20230616-5197.
    Comment Date: 5 p.m. ET 7/7/23.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER22-615-001.
     Applicants: Prairie State Solar, LLC.
     Description: Midcontinent Independent System Operator, Inc.
submits tariff filing per 35.19a(b): Refund Report__Prairie State
Solar, LLC to be effective N/A.
     Filed Date: 6/16/23.
     Accession Number: 20230616-5206.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: ER22-1815-001.
     Applicants: Midcontinent Independent System Operator, Inc.
     Description: Midcontinent Independent System Operator, Inc.
submits tariff filing per 35.19a(b): Refund Report__Mulligan Solar, LLC
to be effective N/A.
     Filed Date: 6/16/23.
    Accession Number: 20230616-5204.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: ER22-1980-001.
     Applicants: Deuel Harvest Wind Energy LLC.
    Description: Midcontinent Independent System Operator, Inc. submits
tariff filing per 35.19a(b): Refund Report__Deuel Harvest Wind Energy
LLC to be effective N/A.
     Filed Date: 6/16/23.
    Accession Number: 20230616-5205.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: ER22-2350-001.

    Applicants: New York Independent System Operator, Inc.
     Description: Compliance filing: NYISO Compliance Filing to FERC
April 2023 Order on Compliance re: Order No. 881 to be effective 12/31/
9998.
     Filed Date: 6/20/23.
     Accession Number: 20230620-5175.
    Comment Date: 5 p.m. ET 7/11/23.

     Docket Numbers: ER23-1773-002.
     Applicants: Pomona Energy Storage 2 LLC.
     Description: Tariff Amendment: Second Amendment to be effective 6/
25/2023.
    Filed Date: 6/20/23.
    Accession Number: 20230620-5150.
    Comment Date: 5 p.m. ET 7/11/23.

    Docket Numbers: ER23-2171-000.
    Applicants: Tri-State Generation and Transmission Association, Inc.
     Description: Sec.  205(d) Rate Filing: Formula Rate Filing to be
effective 1/1/2024.
     Filed Date: 6/16/23.
    Accession Number: 20230616-5173.
    Comment Date: 5 p.m. ET 7/7/23.

    Docket Numbers: ER23-2172-000.
    Applicants: Innovative Energy Systems, LLC.
     Description: Compliance filing: Innovative Energy Systems MBR
Change in Category to be effective 6/20/2023.
    Filed Date: 6/16/23.
    Accession Number: 20230616-5178.
    Comment Date: 5 p.m. ET 7/7/23.

     Docket Numbers: ER23-2173-000.
     Applicants: PJM Interconnection, L.L.C.
     Description: Sec.  205(d) Rate Filing: Original ISA, Service
Agreement No. 6956; Queue No. AE2-181 to be effective 5/23/2023.
     Filed Date: 6/20/23.
    Accession Number: 20230620-5040.
    Comment Date: 5 p.m. ET 7/11/23.

     Docket Numbers: ER23-2174-000.
    Applicants: DC Energy California, LLC.
     Description: Tariff Amendment: Notice of Cancellation of FERC
Electric Tariff, Volume No. 1 to be effective 6/21/2023.
    Filed Date: 6/20/23.
    Accession Number: 20230620-5041.
    Comment Date: 5 p.m. ET 7/11/23.

     Docket Numbers: ER23-2175-000.
     Applicants: DC Energy Dakota, LLC.
     Description: Tariff Amendment: Notice of Cancellation of FERC
Electric Tariff, Volume No. 1 to be effective 6/21/2023.
     Filed Date: 6/20/23.
     Accession Number: 20230620-5043.
    Comment Date: 5 p.m. ET 7/11/23.

    Docket Numbers: ER23-2176-000.
     Applicants: DC Energy Mid-Atlantic, LLC.
     Description: Tariff Amendment: Notice of Cancellation of FERC
Electric Tariff, Volume No. 1 to be effective 6/21/2023.
    Filed Date: 6/20/23.
    Accession Number: 20230620-5046.
    Comment Date: 5 p.m. ET 7/11/23.

     Docket Numbers: ER23-2177-000.
    Applicants: DC Energy Midwest, LLC.
     Description: Tariff Amendment: Notice of Cancellation of FERC
Electric Tariff, Volume No. 1 to be effective 6/21/2023.
     Filed Date: 6/20/23.
     Accession Number: 20230620-5048.
    Comment Date: 5 p.m. ET 7/11/23.

     Docket Numbers: ER23-2178-000.
     Applicants: DC Energy New England, LLC.
     Description: Tariff Amendment: Notice of Cancellation of FERC
Electric Tariff, Volume No. 1 to be effective 6/21/2023.
     Filed Date: 6/20/23.
     Accession Number: 20230620-5051.
    Comment Date: 5 p.m. ET 7/11/23.

    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes.
    For public inquiries and assistance with making filings such as
interventions, comments, or requests for rehearing, the public is
encouraged to contact OPP at<PHONE_NUMBER> or [email protected].

    Dated: June 20, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-13488 Filed 6-23-23; 8:45 am]
BILLING CODE 6717-01-P