[Federal Register Volume 82, Number 47 (Monday, March 13, 2017)]
[Rules and Regulations]
[Pages 13385-13388]
[FR Doc No: 2017-04514]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-8183; Directorate Identifier 2015-NM-083-AD;
Amendment 39-18822; AD 2017-05-11]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc. Airplanes

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

ACTION: Final rule.

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SUMMARY: We are superseding Airworthiness Directive (AD) 2012-08-11 for
certain Bombardier, Inc. Model DHC-8-400 series airplanes. AD 2012-08-
11 required repetitive inspections for defects and damage of the
retract port flexible hoses on the main landing gear (MLG) retraction
actuators, and replacement if necessary. This AD continues to require
the actions in AD 2012-08-11, requires reorientation of the retraction
actuator of the MLG, and removes airplanes from the applicability. This
AD was prompted by test results that showed that failure of a retract
port flexible hose of a MLG retraction actuator could cause excessive
hydraulic fluid leakage. We are issuing this AD to address the unsafe
condition on these products.

DATES: This AD is effective April 17, 2017.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of April 17,
2017.
    The Director of the Federal Register approved the incorporation by
reference of a certain other publication listed in this AD as of May
29, 2012 (77 FR 24351, April 24, 2012).

ADDRESSES: For Bombardier service information identified in this final
rule, contact Bombardier, Inc., Q-Series Technical Help Desk, 123
Garratt Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone 416-375-
4000; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>Internet
http://www.bombardier.com. For Goodrich service information identified
in this final rule, contact Goodrich Aerospace Canada Ltd., Landing
Systems, 1400 South Service Road, West Oakville, ON, Canada L6L 5Y7;
telephone +1-877-808-7575; fax: +1-905-825-6320; email:
<EMAIL_ADDRESS>Internet: https://techpubs.goodrich.com/ContactUs.
You may view this referenced 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>. It
is also available on the Internet at http://www.regulations.gov by
searching for and locating Docket No. FAA-2016-8183.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-
8183; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, the regulatory evaluation, any comments received, and
other information. The address for the Docket Office (telephone 800-
647-5527) is Docket Management Facility, U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Cesar Gomez, Mechanical Systems
Engineer, Airframe and Mechanical Systems Branch, ANE-171, FAA, New
York Aircraft Certification Office (ACO), 1600 Stewart Avenue, Suite
410, Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to supersede AD 2012-08-11, Amendment 39-17028 (77 FR 24351,
April 24, 2012) (``AD 2012-08-11''). AD 2012-08-11 applied to certain
Bombardier, Inc. Model DHC-8-400 series airplanes. The NPRM published
in the Federal Register on August 5, 2016 (81 FR 51821). The NPRM was
prompted by our determination that the left and right MLG retraction
actuator ports must be reoriented and the retract port flexible hoses
replaced with hydraulic tube assemblies to address the identified
unsafe condition. The NPRM proposed to continue to require the actions
required by AD 2012-08-11. The NPRM also proposed to require
reorientation of the retraction actuator of the MLG, which would
terminate the repetitive inspections, and to remove certain airplanes
from the applicability. We are issuing this AD to prevent hydraulic
fluid leakage in the event of a retract port flexible hose failure;
this condition could lead to an undamped extension of the MLG and could
result in MLG structural failure, leading to an unsafe, asymmetric
landing configuration.
    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian AD CF-2011-14R1, effective
May 21, 2015 (referred to after this as the Mandatory Continuing
Airworthiness Information, or ''the MCAI''), to correct an unsafe
condition for certain Bombardier, Inc. Model DHC-8-400, -401, and -402
airplanes. This AD also removes airplanes from the applicability of AD
2012-08-11. The MCAI states:

    Testing has shown that in the event of a main landing gear (MLG)
retraction actuator retract port flexible hose failure, in-flight
vibrations may cause excessive hydraulic fluid leakage. This could
potentially lead to an undamped extension of the MLG, which may
result in MLG structural failure, leading to an unsafe asymmetric
landing configuration.
    The original issue of this [Canadian] AD mandated the [detailed]
inspection [for defects and damage] of the retract port flexible
hose and its replacement [installing a new retract port flexible
hose], when required, to prevent damage to the MLG caused by
undamped gear extensions.
    Revision 1 of this [Canadian] AD mandates the reorientation of
the MLG Retraction Actuator to prevent hydraulic fluid leakage in
the event of a damaged retract port flexible hose.

    Airplanes having serial number 4425 and on were modified in
production and, therefore, the identified unsafe condition does not
apply to these airplanes. You may examine the MCAI in the AD docket on
the Internet at http://www.regulations.gov by searching for and
locating Docket No. FAA-2016-8183.

Comments

    We gave the public the opportunity to participate in developing
this AD. The following presents the comments received on the NPRM and
the FAA's response to each comment.

Request To Refer to Updated Service Information

    Horizon Air requested that the NPRM be revised to refer to
Bombardier Service Bulletin 84-32-106, Revision B, dated June 18, 2015.
As a result, Horizon Air stated that Bombardier Service Bulletin 84-32-
106, Revision A, dated April 24, 2015, should be included in paragraph
(i), ``Credit for Previous Actions,'' of the proposed AD along with
Bombardier Service Bulletin 84-32-106, dated September 28, 2012.
    We agree to refer to the latest service information. We have
confirmed that the revised service information does not require any
work beyond what was published in the NPRM. We have revised this AD to
refer to Bombardier Service Bulletin 84-32-106, Revision B, dated June
18, 2015, as the appropriate source of service information for
completing certain actions (Modification Summary (ModSum) 4-902418)
required by this AD. We have also revised this AD to provide credit for
actions done before the effective date of this AD using Bombardier
Service Bulletin 84-32-106, Revision A, dated April 24, 2015.

Request To Correct MCAI Number

    Contact Air Technik GmbH commented that Canadian AD CF-2011-14R1,
effective May 21, 2015, is incorrectly referenced in paragraph (k),

``Related Information,'' of the proposed AD as Canadian AD CF-2011-
24R1, effective May 21, 2015.
    We agree that paragraph (k)(1) of this AD should refer to Canadian
AD CF-2011-14R1, effective May 21, 2015. We have revised paragraph
(k)(1) of this AD accordingly.

Conclusion

    We reviewed the available data, including the comments received,
and determined that air safety and the public interest require adopting
this AD with the changes described previously and minor editorial
changes. We have determined that these changes:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    Bombardier, Inc. has issued the following service information.
     Bombardier Service Bulletin 84-32-105, Revision A, dated
April 24, 2015. This service information describes procedures for
reworking and reorienting the retraction actuators (ModSum 4-902327).
     Bombardier Service Bulletin 84-32-106, Revision B, dated
June 18, 2015. This service information describes procedures for
reworking and installing reconfigured hydraulic tube assemblies for the
retraction actuators (ModSum 4-902418).
    Goodrich Aerospace Canada Ltd. has issued the following service
information.
     Goodrich Service Bulletin 46550-32-99 R2, dated February
19, 2015. This service information describes procedures for reworking
and reorienting the retraction actuators.
     Goodrich Service Bulletin 46455-32-100 R1, dated March 20,
2013. This service information describes procedures for reworking and
installing reconfigured hydraulic tube assemblies for the retraction
actuators.
    These service bulletins contain different requirements and must be
accomplished at the same time. This service information is reasonably
available because the interested parties have access to it through
their normal course of business or by the means identified in the
ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects 82 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
              Action                    Labor cost        Parts cost    Cost per product          operators
----------------------------------------------------------------------------------------------------------------
Inspection (retained action from   1 work-hour x $85              $0  $85 per inspection    $6,970 per
 AD 2012-08-11).                    per hour = $85 per                 cycle.                inspection cycle.
                                    inspection cycle.
Reorient MLG retraction actuators  4 work-hours x $85              0  $340................  $27,880.
 (new action).                      per hour = $340.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary replacements
that will be required based on the results of the required inspection.
We have no way of determining the number of aircraft that might need
this replacement:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                    Labor cost                 Parts cost    product
----------------------------------------------------------------------------------------------------------------
Replace the retract port flexible hose          4 work-hours x $85 per hour = $340....         $713       $1,053
 (retained action from AD
 2012[dash]08[dash]11).
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some of the costs of this AD may be
covered under warranty, thereby reducing the cost impact on affected
individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our cost
estimate.

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.

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)
2012-08-11, Amendment 39-17028 (77 FR 24351, April 24, 2012), and
adding the following new AD:

2017-05-11 Bombardier, Inc.: Amendment 39-18822; Docket No. FAA-
2016-8183; Directorate Identifier 2015-NM-083-AD.

(a) Effective Date

    This AD is effective April 17, 2017.

(b) Affected ADs

    This AD replaces AD 2012-08-11, Amendment 39-17028 (77 FR 24351,
April 24, 2012) (``AD 2012-08-11'').

(c) Applicability

    This AD applies to Bombardier, Inc. Model DHC-8-400, -401, and -
402 airplanes, certificated in any category, serial numbers 4001
through 4424 inclusive.

(d) Subject

    Air Transport Association (ATA) of America Code 32, Landing
gear.

(e) Reason

    This AD was prompted by test reports that showed that failure of
a retract port flexible hose of a main landing gear (MLG) retraction
actuator could cause excessive hydraulic fluid leakage. We are
issuing this AD to prevent hydraulic fluid leakage in the event of a
retract port flexible hose failure; this condition could lead to an
undamped extension of the MLG and could result in MLG structural
failure, leading to an unsafe asymmetric landing configuration.

(f) Compliance

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

(g) Retained Repetitive Inspections and Follow-on Action, With New
Reference

    This paragraph restates the requirements of paragraph (g) of AD
2012-08-11, with new reference to terminating action. Within 600
flight hours after May 29, 2012 (the effective date of AD 2012-08-
11), do a detailed inspection for defects and damage of the retract
port flexible hose of the left and right MLG retraction actuators,
in accordance with the Accomplishment Instructions of Bombardier
Service Bulletin 84-32-89, dated March 22, 2011. Repeat the
inspection thereafter at intervals not to exceed 600 flight hours.
If any defect or damage is found, before further flight, replace the
retract port flexible hose with a new or serviceable retract port
flexible hose, in accordance with the Accomplishment Instructions of
Bombardier Service Bulletin 84-32-89, dated March 22, 2011. Doing
the actions required by paragraph (h) of this AD terminates the
inspections required by this paragraph.

(h) New Requirement of This AD: Reorient MLG Retraction Actuators

    Within 6,000 flight hours or 36 months, whichever occurs first
after the effective date of this AD: Reorient the MLG retraction
actuator by incorporating Bombardier Modification Summaries 4-902418
and 4-902327, in accordance with the Accomplishment Instructions of
the applicable service information specified in paragraphs (h)(1)
and (h)(2) of this AD. Accomplishment of the actions required by
this paragraph terminates the actions required by paragraph (g) of
this AD.
    (1) Bombardier Service Bulletin 84-32-105, Revision A, dated
April 24, 2015; and Goodrich Service Bulletin 46550-32-99 R2, dated
February 19, 2015.
    (2) Bombardier Service Bulletin 84-32-106, Revision B, dated
June 18, 2015; and Goodrich Service Bulletin 46455-32-100 R1, dated
March 20, 2013.

(i) Credit for Previous Actions

    This paragraph provides credit for actions required by paragraph
(h) of this AD, if those actions were performed before the effective
date of this AD using the service information identified in
paragraph (i)(1), (i)(2), or (i)(3) of this AD, as applicable.
    (1) Bombardier Service Bulletin 84-32-105, dated September 28,
2012.
    (2) Bombardier Service Bulletin 84-32-106, dated September 10,
2012.
    (3) Bombardier Service Bulletin 84-32-106, Revision A, dated
April 24, 2015.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York Aircraft Certification Office (ACO), ANE-170, 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 New York ACO, send it to ATTN: Program Manager,
Continuing Operational Safety, FAA, New York ACO, 1600 Stewart
Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>; fax
516-794-5531.
    (i) 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.
    (ii) AMOCs approved previously for AD 2012-08-11 are approved as
AMOCs for the corresponding provisions of this AD.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, New York ACO,
ANE-170, FAA; or Transport Canada Civil Aviation (TCCA); or
Bombardier, Inc.'s TCCA Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.

(k) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian AD CF-2011-14R1, dated May 21, 2015, for related
information. This MCAI may be found in the AD docket on the Internet
at http://www.regulations.gov by searching for and locating Docket
No. FAA-2016-8183.
    (2) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (l)(4), (l)(5), and (l)(6) of this AD.

(l) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) Bombardier Service Bulletin 84-32-105, Revision A, dated
April 24, 2015.
    (ii) Bombardier Service Bulletin 84-32-106, Revision B, dated
June 18, 2015.
    (iii) Goodrich Service Bulletin 46550-32-99 R2, dated February
19, 2015.
    (iv) Goodrich Service Bulletin 46455-32-100 R1, dated March 20,
2013.
    (3) The following service information was approved for IBR on
May 29, 2012 (77 FR 24351, April 24, 2012).
    (i) Bombardier Service Bulletin 84-32-89, dated March 22, 2011.
    (ii) Reserved.
    (4) For Bombardier service information identified in this AD,
contact Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt
Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>Internet
http://www.bombardier.com.
    (5) For Goodrich service information identified in this AD,
contact Goodrich Aerospace Canada Ltd., Landing Systems, 1400 South
Service Road, West Oakville, ON, Canada L6L 5Y7; telephone +1-877-
808-7575; fax: +1-905-825-6320; email<EMAIL_ADDRESS>Internet:
https://techpubs.goodrich.com/ContactUs.
    (6) You may view this 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
425-227-1221.
    (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 February 28, 2017.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2017-04514 Filed 3-10-17; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: September 17, 2007 (Volume 72, Number 179)]
[Notices]
[Page 52873-52874]
[DOCID:fr17se07-51]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

September 7, 2007.
    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC07-129-000.
    Applicants: Santa Rosa Energy Center, LLC.
    Description: Santa Rosa Energy Center LLC submits an application
for approval under section 203 of the Federal Power Act.
    Filed Date: 08/31/2007.
    Accession Number: 20070906-0129.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: EC07-130-000.
    Applicants: Ford Motor Company, Twin Cities Hydro LLC.
    Description: Ford Motor Co and Twin Cities Hydro LLC submit a joint
application for authorization re a proposed transaction by which Twin
Cities would acquire Ford Project 362.
    Filed Date: 08/31/2007.
    Accession Number: 20070906-0143.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.
    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER96-780-018; ER01-1633-006; ER03-1383-009; ER00-
3240-009.
    Applicants: Southern Company Services, Inc.
    Description: Notice of Non-Material Change in Status of Southern
Company Services, Inc.
    Filed Date: 08/31/2007.
    Accession Number: 20070831-5040.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: ER01-542-003; ER06-703-001; Er05-1218-002; Er05-
1219-002; ER00-2887-005.
    Applicants: STI Capital Company; Pedricktown Cogeneration Company,
LP; Bayonne Plant Holding, L.L.C.; Camden Plant Holding, L.L.C.; Newark
Bay Cogeneration Partnership, L.P.
    Description: STI Capital Company et al. submit an amendment to the
7/16/07 notice of non-material change in status to reflect the
foregoing name and corporate changes of STI etc.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0132.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER04-839-002.
    Applicants: MAG Energy Solutions, Inc.
    Description: MAG Energy Solutions, Inc. submits their Revised Based
Rate Schedule to replace the Based Rate Schedule submitted on 8/3/04
etc. under ER04-839.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0027.
    Comment Date: 5 p.m. Eastern Time on Monday, September 17, 2007.

    Docket Numbers: ER07-546-003.
    Applicants: ISO New England Inc.
    Description: ISO New England Inc. et al. submits various Tariff and
Market Rule 1 changes to comply with FERC's 4/16/07 Order.
    Filed Date: 08/31/2007.
    Accession Number: 20070906-0131.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: ER07-596-002.
    Applicants: E.ON U.S., LLC.
    Description: E.ON U.S. LLC on behalf of Louisville Gas and Electric
Co and Kentucky Utilities Co submit a compliance filing incorporating
the changes required in the 8/3/07 Order.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0042.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1019-001; ER07-1020-001; ER07-1021-001.
    Applicants: Niagara Mohawk Power Corporation.
    Description: Niagara Mohawk Power Corporation's response to FERC's
7/31/07 letter.
    Filed Date: 08/31/2007.
    Accession Number: 20070907-0182.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: ER07-1237-001.
    Applicants: UP Power Marketing, LLC.
    Description: UP Power Marketing LLC submits FERC Electric Tariff,
Original Volume No.1 revised to reflect the requirements of Order 697.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0043.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1251-001.
    Applicants: Northern Maine Independent System Administrator, Inc.
    Description: Northern Maine Independent System Administrator Inc.
submits amendments to certain of the Northern Maine Market Rules filed
by the NMISA as Second Rate Schedule 2 on 8/3/07.
    Filed Date: 08/31/2007.
    Accession Number: 20070906-0130.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: ER07-1339-000; ER07-1340-000.
    Applicants: Split Rock Energy LLC; Minnesota Power and Split Rock
Energy LLC.
    Description: Split Rock Energy LLC on behalf of Minnesota Power
submits notices of cancellation for FERC Electric Tariff, First Revised
Volume 1 et al. Filed Date: 09/04/2007.
    Accession Number: 20070906-0052.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1341-000.
    Applicants: York Generation Company LLC.
    Description: York Generation Co LLC submits a notice of succession
reflecting the adoption of the FERC Electric Tariff, Original Volume
No. 1 of STI Capital Co.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0051.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1342-000.
    Applicants: Central Vermont Public Service Corporation.
    Description: Central Vermont Public Service Corp. submits a notice
of termination of the Woodsville Power Sales Agreement.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0050.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1343-000.
    Applicants: State Line Energy, L.L.C.
    Description: State Line Energy, LLC submits a notice of
cancellation of the Power Sales Agreement with Exelon Generation
Service.
    Filed Date: 09/05/2007.
    Accession Number: 20070906-0049.
    Comment Date: 5 p.m. Eastern Time on Wednesday, September 26, 2007.

    Docket Numbers: ER07-1344-000.
    Applicants: Westar Energy, Inc.
    Description: Westar Energy Inc. submits its Cost-Based Formula Rate
Agreement for Full Requirements Electric Service.
    Filed Date: 08/31/2007.
    Accession Number: 20070906-0048.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: ER07-1345-000; ER07-1346-000; ER07-1347-000.
    Applicants: American Electric Power Service Corp.
    Description: American Electric Power Service Corp. et al. submit a
notice of cancellation and revised rate schedule sheets to terminate
the Interconnection Agreement.
    Filed Date: 08/31/2007.
    Accession Number: 20070906-0047.
    Comment Date: 5 p.m. Eastern Time on Friday, September 21, 2007.

    Docket Numbers: ER07-1348-000.

    Applicants: American Electric Power Services Corp.
    Description: AEP Texas North Co. submits a notice of cancellation
of the West Texas Utilities Service Agreement 13, Tariff.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0046.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1349-000.
    Applicants: Cheyenne Light Fuel & Power Company.
    Description: Cheyenne Light, Fuel and Power Co submits Rate
Schedule 2 for Short-Term Sales of Test Power, to be effective 10/1/07.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0045.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.

    Docket Numbers: ER07-1350-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, LLC submits a notice of
cancellation for an interconnection service agreement that has been
superseded.
    Filed Date: 09/04/2007.
    Accession Number: 20070906-0044.
    Comment Date: 5 p.m. Eastern Time on Tuesday, September 25, 2007.
    Take notice that the Commission received the following electric
securities filings:
    Docket Numbers: ES07-46-002
    Applicants: PSEG Fossil LLC
    Description: Supplemental Filing of PSEG Nuclear LLC, et al.
    Filed Date: 09/05/2007.
    Accession Number: 20070904-5104.
    Comment Date: 5 p.m. Eastern Time on Wednesday, September 26, 2007.
    Docket Numbers: ES07-47-002.
    Applicants: PSEG Nuclear LLC.
    Description: Supplemental Filing of PSEG Nuclear LLC, et al.
    Filed Date: 09/05/2007.
    Accession Number: 20070904-5104.
    Comment Date: 5 p.m. Eastern Time on Wednesday, September 26, 2007.
    Docket Numbers: ES07-48-002.
    Applicants: PSEG Energy Resources & Trade LLC.
    Description: Supplemental Filing of PSEG Nuclear LLC, et al.
    Filed Date: 09/05/2007.
    Accession Number: 20070904-5104.
    Comment Date: 5 p.m. Eastern Time on Wednesday, September 26, 2007.
    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov.
 To facilitate electronic service, persons with Internet

access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St., NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed dockets(s). For assistance
with any FERC Online service, please e-mail<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Acting Deputy Secretary.
 [FR Doc. E7-18203 Filed 9-14-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 51 (Thursday, March 15, 2012)]
[Notices]
[Pages 15429-15432]
[FR Doc No: 2012-6239]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66561; File No. SR-NYSEAmex-2012-16]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Implementing
Changes to the Per Contract Execution Costs for Certain Participants

March 9, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 29, 2012, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'')
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 self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Amex Options Fee Schedule
(``Fee Schedule'') to increase the per contract execution costs for
certain participants. The text of the proposed rule change is available
at the Exchange, the Commission's Public Reference Room, and
www.nyse.com.

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

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

1. Purpose
    The Exchange proposes to amend the Fee Schedule to increase the per
contract execution costs for certain participants. The Exchange
believes the proposed fees will better reflect the costs associated
with supporting a larger number of option classes, option series, and
overall transaction volumes that have grown over time.
    First, the Exchange proposes an increase of $.03 per contract
applicable to all NYSE Amex Options Market Maker participants. In
conjunction with this increase, NYSE Amex Options Market Maker
participants will have the ability to earn back the lower existing rate
by executing as a NYSE Amex Options Market Maker 50,000 contracts or
more on average each day in a month, excluding either Strategy
Executions or QCC trades. The existing monthly fee cap applicable to
NYSE Amex Options Market Makers will continue to apply.\3\
---------------------------------------------------------------------------

    \3\ See NYSE Amex Options Fee Schedule dated 2/1/12, endnote 5,
available at http://globalderivatives.nyx.com/sites/globalderivatives.nyx.com/files/nyseamexoptionsfeeschedule_020112.pdf.
---------------------------------------------------------------------------

    NYSE Amex Options Specialists and eSpecialists currently pay $.10
per contract in transaction fees. Under the proposal, the charge
applicable to NYSE Amex Options Specialist and eSpecialists would
increase to $.13 per contract. If, however, a NYSE Amex Options
participant executes on average at least 50,000 contracts each day in a
month as a Market Maker, then the rate per contract applicable to those
NYSE Amex Options Specialist or eSpecialist transactions would be
reduced to $.10 per contract for that month.
    NYSE Amex Options Market Makers that trade with directed order flow
currently pay $.15 per contract in transaction fees. Under the proposal
the

charge applicable to NYSE Amex Options Market Makers trading with
directed order flow would increase to $.18 per contract. If, however, a
NYSE Amex Options participant executes on average at least 50,000
contracts each day in a month as a Market Maker, then the rate per
contract applicable to those transactions in which a NYSE Amex Options
Market Maker traded with directed order flow would be reduced to $.15
per contract for that month.
    NYSE Amex Options Market Makers who trade with non-directed order
flow currently pay $.17 per contract in transaction fees. Under the
proposal the charge applicable to NYSE Amex Options Market Makers
trading with non-directed order flow would increase to $.20 per
contract. If, however, a NYSE Amex Options participant executes on
average at least 50,000 contracts each day in a month as a Market
Maker, then the rate per contract applicable to those transactions in
which a NYSE Amex Options Market Maker traded with non-directed order
flow would be reduced to $.17 per contract for that month.
    For purposes of calculating the 50,000 contract average daily
volume (``ADV'') \4\ threshold, the Exchange will aggregate all of a
NYSE Amex Options participant's Market Maker activity. For example, a
NYSE Amex Options participant in one month trades 30,000 contracts ADV
as a NYSE Amex Options Specialist, 20,000 contracts ADV as a NYSE Amex
Options eSpecialist, 15,000 contracts as a NYSE Amex Options Market
Maker trading with directed order flow, and 15,000 contracts ADV
trading as a NYSE Amex Options Market Maker trading with non-directed
order flow. This NYSE Amex Options participant will be credited with
80,000 contracts ADV attributable to NYSE Amex Options Market Maker
activity and as such will be eligible for the reduced rate for those
transactions that month. Additionally, in the calculation of the 50,000
contract or more ADV threshold, the Exchange will exclude both Strategy
Trades and QCC trades.
---------------------------------------------------------------------------

    \4\ In calculating ADV, the Exchange will consider all trading
days in a month, regardless of the length of the trading day.
---------------------------------------------------------------------------

    Professional Customers presently pay a fee of $.20 per contract for
electronically executed transactions. Under the proposal, the charge
applicable to electronically executed transactions on behalf of a
Professional Customer will increase to $.23 per contract. The rate for
manually executed or open outcry transactions for Professional
Customers will remain unchanged at $.25 per contract.
    Non-NYSE Amex Options Market Makers presently pay a fee of $.40 per
contract for electronically executed transactions. Under the proposal
the charge applicable to electronically executed transactions on behalf
of a Non-NYSE Amex Options Market Maker will increase to $.43 per
contract. The rate for manually executed or open outcry transactions
for Non-NYSE Amex Options Market Makers will remain unchanged at $.25
per contract.
    In addition, for purposes of consistency and clarity, in footnote
five of the NYSE Amex Options Fee Schedule the Exchange is amending
``e-Specialist'' to ``eSpecialist,'' consistent with its use elsewhere
in the Fee Schedule.
    The proposed changes will be operative on March 1, 2012.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \5\ of the Securities Exchange Act
of 1934 (the ``Act''), in general, and Section 6(b)(4) \6\ of the Act,
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and other persons using its facilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed change to increase the fee
for NYSE Amex Specialists, eSpecialists, Market Makers who trade with
directed and non-directed order flow, Professional Customers and Non-
NYSE Amex Options Market Makers transacting on the Exchange is
reasonable, given the growth in volumes over the past two years. The
Exchange notes that ADV on the Exchange has increased from 1,653,156
contracts in January 2010 to 2,267,022 contracts ADV in January 2012,
or an increase of over 37%. The proposed per contract increases range
from a 7.5% increase for Non-NYSE Amex Options Market Makers to a 30%
increase for Specialists and eSpecialists. The growth in trading
volumes, option classes and messaging traffic has compelled the
Exchange to continually invest in software, hardware and personnel, the
cost of which can reasonably be expected to be borne by participants on
the Exchange that consume the majority of those resources as evidenced
by the volume of messages for quotes, orders and trades. For these
reasons the Exchange believes it is reasonable to increase the per
contract rate for NYSE Amex Specialists, eSpecialists, Market Makers
that trade with directed and non-directed order flow, Professional
Customers, and Non-NYSE Amex Options Market Makers.
    The Exchange believes that the proposed change to increase the fee
for NYSE Amex Specialists, eSpecialists, Market Makers who trade with
directed and non-directed order flow, Professional Customers and Non-
NYSE Amex Options Market Makers is equitable and not unfairly
discriminatory since the fees as noted are generally tied to an overall
increase in activity on the Exchange. This heightened activity results
in greater costs to the Exchange, which in turn is being passed back
through to those participants who utilize the resources of the
Exchange. The Exchange notes, for example, that Customers are
prohibited from engaging in activity that can be construed as market
making, and as such Customers do not use quotes to trade nor do they
enter more than 390 orders per day on average, unlike the participants
subject to the proposed fee change, resulting in less capacity usage
than the participants subject to the proposed fee change.\7\ For these
reasons, the Exchange believes that the proposed $.03 per contract
increase for NYSE Amex Specialists, eSpecialists, Market Makers who
trade with directed and non-directed order flow, Professional Customers
and Non-NYSE Amex Options Market Makers is both equitable and not
unfairly discriminatory.
---------------------------------------------------------------------------

    \7\ See NYSE Amex Rule 995NY(b).
---------------------------------------------------------------------------

    The Exchange notes that the proposed $.03 per contract increase is
not applicable to Firm Proprietary electronic transactions or Broker
Dealer electronic transactions. As noted above, the fee increase is
designed to offset the higher costs associated with the growth in
trading volumes, option classes and messaging traffic and is
specifically targeted at those users who consume the majority of those
resources. The Exchange has found that, historically and at present,
both Firm Proprietary electronic transactions and Broker Dealer
electronic transactions comprise a small portion of the electronic
transactions relative to the electronic transactions of the
participants affected by this fee change. In fact, the majority of Firm
Proprietary and Broker Dealer volumes on the Exchange are executed in
open outcry and therefore place little burden on the infrastructure of
the Exchange. For these reasons the Exchange feels that it is
reasonable, equitable and not unfairly discriminatory to increase the
fees as proposed, while leaving the fees for Firm Proprietary and
Broker Dealer electronic transactions as they are.

    The Exchange believes that the ability for NYSE Amex Specialists,
eSpecialists, and Market Makers that trade with directed and non-
directed order flow to earn back the lower rate by executing more than
50,000 contracts ADV each day in a month is reasonable, equitable and
not unfairly discriminatory for several reasons. First, NYSE Amex
Specialists, eSpecialists, and Market Makers that trade with directed
and non-directed order flow all subject themselves to various
obligations,\8\ including quoting obligations that compel them to put
themselves at risk to trade with any and all interest in a large number
of options at any one time. The Exchange believes it is important to
continue to incentivize NYSE Amex Options Market Makers to obligate
themselves to accept the risk of trading with any and all interest and
as such it is warranted in permitting NYSE Amex Options Market Makers,
which undertake those obligations as evidenced by their trading
volumes, to earn back a lower per contract rate. Conversely,
Professional Customers and Non-NYSE Amex Options Market Makers have no
obligation whatsoever to post a bid or offer but rather can react
selectively to the bids and offers posted by NYSE Amex Options Market
Makers who do have obligations. It is these differing levels of
obligations that cause the Exchange to believe that granting NYSE Amex
Specialists, eSpecialists, and Market Makers that trade with directed
and non-directed order flow the ability to earn back a lower rate by
generating at least 50,000 contracts ADV each day in a month as a
Market Maker is warranted. Further, the Exchange believes that
excluding both Strategy Executions and QCC trades from the calculation
of the 50,000 contract ADV threshold is appropriate since Strategy
Trades are already subject to a lowered rate and are in turn capped
while QCC trades can be effected without risk of trading with an
unknown party. The Exchange does not believe that including QCC trades
in the calculation of the 50,000 contract ADV threshold is appropriate,
given the Exchange's desire to continue to incentivize NYSE Amex
Options Market Makers to continue to provide firm quotes accessible by
all participants. For these reasons, the Exchange believes the proposed
change is reasonable, equitable and not unfairly discriminatory.
---------------------------------------------------------------------------

    \8\ See NYSE Amex Rules 925NY, 925.1NY(b), 972NY(c), and
927.5NY.
---------------------------------------------------------------------------

    The Exchange also believes that the fees being proposed are
reasonable because they are within the range of fees presently charged
by other exchanges. For example, the International Stock Exchange
(``ISE'') charges Non-ISE Market Makers $.45 per contract,\9\ as well
as a $.29 fee for Professional Customers in select symbols.\10\
Additionally, NASDAQ OMX PHLX LLC charges market makers a rate of
either $.22 or $.23 per contract depending on whether the option is
part of the penny pilot or not.\11\
---------------------------------------------------------------------------

    \9\ See ISE fee schedule dated 2/1/2012, page 1 of 22, available
at http://www.ise.com/assets/documents/OptionsExchange/legal/fee/fee_schedule.pdf.
    \10\ Id. at 22.
    \11\ See NASDAQ OMX PHLX LLC Fee Schedule dated 2/6/2012, page 6
of 39, available at http://nasdaqomxtrader.com/content/marketregulation/membership/phlx/feesched.pdf.
---------------------------------------------------------------------------

    The Exchange operates in a highly competitive environment in which
participants can not only move their business elsewhere, but also, if
they choose, change the manner in which they access the Exchange. For
example, Non-NYSE Amex Options Market Makers can avail themselves of
the lower rates applicable to NYSE Amex Specialists, eSpecialists, and
Market Makers that trade with directed and non-directed order flow by
becoming NYSE Amex Options Market Makers. Likewise, a Professional
Customers could either send fewer than 390 orders on average to begin
trading as a Customer or they could register as a broker-dealer to
trade on the Exchange as a Firm Proprietary trader or even a NYSE Amex
Options Market Maker.
    For the reasons noted above, the Exchange believes that the
proposed fee changes are fair, equitable, and not unfairly
discriminatory.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the NYSE Amex.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEAmex-2012-16 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 Number SR-NYSEAmex-2012-16. 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
a.m. and 3 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 Number SR-
NYSEAmex-2012-16 and should be submitted on or before April 5, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-6239 Filed 3-14-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: September 26, 2005 (Volume 70, Number 185)]
[Notices]
[Page 56200-56201]
[DOCID:fr26se05-75]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52458; File No. SR-NSCC-2005-10]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Relating to the Mutual Fund Commission Settlement Service

September 16, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 11, 2005, NSCC
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 primarily by NSCC. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 1 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The proposed rule change will permit an NSCC Rule 2 member \2\ to
submit fee data through NSCC to another NSCC Rule 2 member and have the
payments settle through NSCC. Prior to this rule change, the Mutual
Fund Commission Settlement service allowed such members to submit only
commission data.
---------------------------------------------------------------------------

    \2\ Members admitted under NSCC Rule 2 may be admitted to use
all NSCC services or they may be admitted to use NSCC's mutual fund
and insurance processing services only.
---------------------------------------------------------------------------

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

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.

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

    The purpose of the proposed rule change is to amend NSCC Rule 52,
Section C regarding NSCC's Mutual Fund Commission Settlement service by
permitting a Rule 2 member to submit fee data through NSCC to another
NSCC Rule 2 member and have the payment settle through NSCC. Prior to
this rule change, the Mutual Fund Commission Settlement service allowed
such members to submit only commission data.
    NSCC believes that the new functionality to submit fee data should
be useful in the context of processing mutual fund transactions for
retirement plans in which a Rule 2 member may offer plan programs
involving multiple mutual funds for which it acts as a recordkeeper or
as a broker-dealer for multiple funds offered in the plan program. In
this capacity, the Rule 2 member may receive a fee from the funds in
connection with transactions in such funds for which it seeks to pay an
amount over to another Rule 2 member that directed the purchase of
certain of the fund shares in the plan.
    Prior to this rule change, fees were frequently paid by checks sent
through the mail. This practice carried the risk that checks may be
lost or misdirected and errors may occur during the costly and manually
intensive processing and reconciliation of check payments. Permitting
settlement of these broker-to-broker fees through NSCC in the same
manner that fund-to-broker fees are paid through NSCC should enable the
fee payments to be made with greater efficiency and transparency in a
secure, automated, and operationally efficient process.
    The proposed rule change also deletes Rule 52(C), Section 4, which
set forth procedures for members to correct a prior commission payment
because NSCC's system processes correction data in the same manner that
all other commission and fee related data is processed and the special
provisions are not applicable.
    NSCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
because it

will facilitate the accurate clearance and settlement of transactions.

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

    NSCC does not believe that the proposed rule change will have any
impact or impose any burden on competition.

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

    NSCC has not solicited or received written comments relating to the
proposed rule change. NSCC will notify the Commission if it receives
any written comments.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) \3\ of the Act and Rule 19b-4(f)(4) \4\ thereunder
because it effects a change in an existing service of NSCC that does
not adversely affect the safeguarding of securities or funds in NSCC's
control or for which NSCC is responsible and does not significantly
affect NSCC's or its participants' respective rights or obligations. At
any time within 60 days of the filing of the proposed rule change, the
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-NSCC-2005-10 on the subject line.

Paper Comments

    Send paper comments in triplicate to Jonathan G. Katz, Secretary,
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-9303. All submissions should refer to File Number SR-NSCC-2005-
10. This file number should be included on the subject line if e-mail
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 inspection
and copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at NSCC's principal office and on NSCC's Web
site (http://www.nscc.com/legal/index.html). 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-NSCC-2005-10 and should be submitted on
or before October 17, 2005.
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
Jonathan G. Katz,
Secretary.
 [FR Doc. E5-5172 Filed 9-23-05; 8:45 am]

BILLING CODE 8010-01-P