[Federal Register: July 10, 2008 (Volume 73, Number 133)]
[Rules and Regulations]
[Page 39580-39583]
[DOCID:fr10jy08-7]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-0222; Directorate Identifier 2007-NM-300-AD;
Amendment 39-15604; AD 2008-14-09]
RIN 2120-AA64

Airworthiness Directives; Airbus Model A300 and A300-600 Series
Airplanes

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

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for the

products listed above. This AD results from mandatory continuing
airworthiness information (MCAI) originated by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as:

    Due to several crack findings in the area of wing centre box
lower aft corner at FR47, this area of structure has been subjected
to accomplishment of several inspection Service Bulletins rendered
mandatory in accordance with Airworthiness Limitation Items
requirement for A300 aircraft and Airworthiness Directive (AD) F-
2004-159 for A300-600 aircraft [which corresponds to FAA AD 2005-23-
08]. This AD is published * * * in order to control or correct the
development of cracks, which could affect the structural integrity
of the aircraft.

    We are issuing this AD to require actions to correct the unsafe
condition on these products.

DATES: This AD becomes effective August 14, 2008.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of August 14,
2008.

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

FOR FURTHER INFORMATION CONTACT: Dan Rodina, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-2125; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
That NPRM was published in the Federal Register on February 29, 2008
(73 FR 11067). That NPRM proposed to correct an unsafe condition for
the specified products. The MCAI states:

    Due to several crack findings in the area of wing centre box
lower aft corner at FR47, this area of structure has been subjected
to accomplishment of several inspection Service Bulletins [SBs]
rendered mandatory in accordance with Airworthiness Limitation Items
requirement for A300 aircraft and Airworthiness Directive (AD) F-
2004-159 for A300-600 aircraft [which corresponds to FAA AD 2005-23-
08]. This AD is published in order to render mandatory an inspection
subsequent to accomplishment of repair SB A300-53-0282 or A300[-53]-
0291 or A300-57-6069 in the affected area. The SB A300-53-0381,
A300-53-0383 and A300-57-6102 define the various configurations for
the mandatory [repetitive] inspections to be conducted in order to
control or correct the development of cracks [in the center wing box
at FR47], which could affect the structural integrity of the
aircraft.

    The inspections include x-ray, high frequency eddy current, visual,
and ultrasonic inspections. Corrective actions include contacting
Airbus if any cracking is found, repairing if any cracking is found,
and doing other specified actions. The other specified actions include
contacting Airbus for oversizing fastener holes, oversizing fastener
holes, installing new fasteners, and installing new plugs. You may
obtain further information by examining the MCAI in the AD docket.

Comments

    We gave the public the opportunity to participate in developing
this AD. We considered the comment received.

Request To Revise Cost

    Air Transport Association (ATA), on behalf of its member, American
Airlines, states that the cost estimate of $1,760 specified in the NPRM
is far too low. ATA states that Airbus Service Bulletin A300-57-6102,
dated January 12, 2007 (which is referred to as an appropriate source
of service information for doing certain actions specified in the
NPRM), specifies that an accomplishment kit costs $1,650 for one wing
and that the labor requirement for inspecting one wing is 19 hours. ATA
notes that costs will double for airplanes on which Airbus A300-57-6102
is accomplished on both wings.
    We agree that the cost estimate is too low. We have revised the
labor hours in the Costs of Compliance section of this AD to reflect
the 38 hours necessary to inspect both wings.
    However, we do not agree to add the cost of the kits necessary to
do applicable corrective actions. The information in the Costs of
Compliance section is limited to the cost of actions actually required
by the AD. It does not consider the costs of ``on-condition'' actions
(e.g., ``repair, as applicable'') because, regardless of AD direction,
those actions would be required to correct an unsafe condition
identified in an airplane and ensure operation of that airplane in an
airworthy condition, as required by the Federal Aviation Regulations.

New Service Information

    Airbus has issued Service Bulletins A300-53-0381, A300-53-0383, and
A300-57-6102, all including Appendix 1, all Revision 01, all dated May
27, 2008 (we referred to the original issues of the service bulletins
as the appropriate source of service information for accomplishing the
actions specified in the NPRM). Revision 01 of the service bulletins
specify that no more action is needed on airplanes on which actions
specified in the original issues have been done. Revision 01 of the
service bulletins updates the Effectivity section and clarifies the
unit of measurement for the values of certain tables in the Compliance
section of the service bulletins.
    We have revised this final rule to refer to Revision 01 of the
service bulletins. We have not restated paragraph (f)(1)(ii) of the
NPRM in this AD because Revision 01 of the service bulletins addresses
the unit of measurement for the specified tables. We have also added
paragraph (f)(5) of this AD to give credit for actions done in
accordance with the original issues of the service bulletins.

Revision to Airplane Model Reference

    For clarity, we have revised the airplane model references in
paragraphs (c)(1), (c)(2), (c)(3) of this AD by adding the word
``airplanes'' to the model designations as published in the most recent
type certificate data sheet for the affected models.

Conclusion

    We reviewed the available data, including the comment received, and
determined that air safety and the public interest require adopting the
AD with the changes described previously. We determined that these
changes will not increase the economic burden on any operator or
increase the scope of the AD.

Differences Between This AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have required different actions in this AD from those
in the MCAI in order to follow our FAA policies. Any such differences
are highlighted in a NOTE within the AD.

Costs of Compliance

    We estimate that this AD will affect 107 products of U.S. registry.
We also estimate that it will take about 38 work-hours per product to
comply with the basic requirements of this AD. The average labor rate
is $80 per work-hour. Based on these figures, we estimate the cost of
this AD to the U.S. operators to be $325,280, or $3,040 per product.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify 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); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket.

Examining the AD Docket

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

0
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 adding the following new AD:

2008-14-09 Airbus: Amendment 39-15604. Docket No. FAA-2008-0222;
Directorate Identifier 2007-NM-300-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective August
14, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Airbus Model A300 and A300-600 series
airplanes, certificated in any category, as listed in paragraphs
(c)(1), (c)(2), and (c)(3) of this AD.
    (1) Airbus Model A300 B2-1C, B2-203 and B2K-3C airplanes, all
serial numbers that have been repaired in accordance with Airbus
Service Bulletin A300-53-0282.
    (2) Airbus Model A300 B4-103, B4-203, and B4-2C airplanes, all
serial numbers that have been repaired in accordance with Airbus
Service Bulletin A300-53-0291.
    (3) Airbus Model A300 B4-601, B4-603, B4-605R, B4-620, B4-622,
B4-622R, C4-605R Variant F, and F4-605R airplanes, all serial
numbers that have been repaired in accordance with Airbus Service
Bulletin A300-57-6069.

Subject

    (d) Air Transport Association (ATA) of America Codes 53 and 57:
Fuselage and Wings.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:
    Due to several crack findings in the area of wing centre box
lower aft corner at FR47, this area of structure has been subjected
to accomplishment of several inspection Service Bulletins [SBs]
rendered mandatory in accordance with Airworthiness Limitation Items
requirement for A300 aircraft and Airworthiness Directive (AD) F-
2004-159 for A300-600 aircraft [which corresponds to FAA AD 2005-23-
08]. This AD is published in order to render mandatory an inspection
subsequent to accomplishment of repair SB A300-53-0282 or A300[-53]-
0291 or A300-57-6069 in the affected area. The SB A300-53-0381,
A300-53-0383 and A300-57-6102 define the various configurations for
the mandatory [repetitive] inspections to be conducted in order to
control or correct the development of cracks [in the center wing box
at FR47], which could affect the structural integrity of the
aircraft.
    The inspections include x-ray, high frequency eddy current,
visual, and ultrasonic inspections. Corrective actions include
contacting Airbus if any cracking is found, repairing if any
cracking is found, and doing other specified actions. The other
specified actions include contacting Airbus for oversizing fastener
holes, oversizing fastener holes, installing new fasteners, and
installing new plugs.

Actions and Compliance

    (f) Unless already done, do the following actions.
    (1) Except as provided by paragraphs (f)(1)(i), (f)(1)(ii),
(f)(1)(iii), and (f)(1)(iv) of this AD, at the threshold defined in
paragraph 1.E., ``Compliance,'' of the applicable service bulletin
listed in Table 1 of this AD and according to the Accomplishment
Instructions of the applicable service bulletin, perform all
applicable inspections and, before further flight, perform all
applicable other specified actions, of FR47 forward fitting vertical
splice (including crack stop hole), crack stop hole (depending on
crack's length and position), center wing box lower panel, and
reinforced parts (internal angle, lower external splice and external
fitting).

                   Table 1.--Airbus Service Bulletins
------------------------------------------------------------------------
          Service Bulletin            Revision            Date
------------------------------------------------------------------------
A300-53-0381.......................         01  May 27, 2008.
A300-53-0383.......................         01  May 27, 2008.
A300-57-6102.......................         01  May 27, 2008.
------------------------------------------------------------------------

    (i) Where the tables in paragraph 1.E., ``Compliance,'' of the
service bulletins listed in Table 1 of this AD contain compliance
times in both flight cycles and flight hours, this AD requires that
the corresponding actions be done at the earlier of the flight cycle
and flight hour compliance times.
    (ii) Where any table in paragraph 1.E., ``Compliance,'' of the
service bulletins listed in Table 1 of this AD specifies exact
measurements in the rows of the table for LA, use the ranges
specified in Table 2 of this AD.

                         Table 2.--Ranges for LA
------------------------------------------------------------------------
    Where row of the table specifies--                  Use--
------------------------------------------------------------------------
LA = 0....................................  LA = 0.
LA = 10...................................  0 < LA <= 10 mm.

LA = 15...................................  10 mm < LA <= 15 mm.
LA = 20...................................  15 mm < LA <= 20 mm.
------------------------------------------------------------------------

    (iii) Where in paragraph 1.E., ``Compliance,'' of the service
bulletins listed in Table 1 of this AD the service bulletins specify
a compliance time after receipt of the service bulletin, this AD
requires compliance within the specified compliance time after the
effective date of this AD.
    (iv) Where any table in paragraph 1.E., ``Compliance,'' of the
service bulletins listed in Table 1 of this AD specifies
measurements of LA > 40 mm, this AD requires that the corresponding
action be done if LA >= 40 mm.
    (2) If any crack is detected during any inspection required by
paragraph (f)(1) of this AD, before further flight, contact Airbus
and repair.
    (3) Repeat the actions specified in paragraph (f)(1) of this AD
at the intervals defined in paragraph 1.E., ``Compliance,'' of the
applicable service bulletin listed in Table 1 of this AD and
according to the Accomplishment Instructions of the applicable
service bulletin, except as provided by paragraphs (f)(1)(i),
(f)(1)(ii), and (f)(1)(iv) of this AD.
    (4) Within 30 days after doing the inspection required by
paragraph (f)(1) of this AD or within 30 days after the effective
date of this AD, whichever occurs later, report the first inspection
results, whatever they may be, to Airbus as specified in the
applicable service bulletin listed in Table 1 of this AD.
    (5) Actions accomplished before the effective date of this AD
according to the applicable service bulletin specified in Table 3 of
this AD are considered acceptable for compliance with the
corresponding action specified in this AD.

                   Table 3.--Credit Service Bulletins
------------------------------------------------------------------------
         Airbus Service Bulletin                       Date
------------------------------------------------------------------------
A300-53-0381............................  Jan. 15, 2007.
A300-53-0383............................  Jan. 11, 2007.
A300-57-6102............................  Jan. 12, 2007.
------------------------------------------------------------------------

FAA AD Differences

    Note: This AD differs from the MCAI and/or service information
as follows: The MCAI and service bulletin did not provide adequate
descriptions for certain compliance requirements. We have clarified
the compliance requirements in paragraphs (f)(1)(i), (f)(1)(ii),
(f)(1)(iii), and (f)(1)(iv) of this AD.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19. Send information to ATTN: Dan
Rodina, Aerospace Engineer, International Branch, ANM-116, Transport
Airplane Directorate, FAA, 1601 Lind Avenue, SW., Renton, Washington
98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before
using any approved AMOC on any airplane to which the AMOC applies,
notify your appropriate principal inspector (PI) in the FAA Flight
Standards District Office (FSDO), or lacking a PI, your local FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI European Aviation Safety Agency (EASA)
Airworthiness Directive 2007-0150, dated May 22, 2007 [corrected May
23, 2007], and the Airbus service bulletins listed in Table 1 of
this AD, for related information.

Material Incorporated by Reference

    (i) You must use the applicable service information specified in
Table 4 of this AD to do the actions required by this AD, unless the
AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France.
    (3) You may review copies at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue, SW., Renton, Washington; or 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.

                                  Table 4.--Material Incorporated by Reference
----------------------------------------------------------------------------------------------------------------
           Airbus Service Bulletin                Revision                            Date
----------------------------------------------------------------------------------------------------------------
A300-53-0381, including Appendix 1...........              01  May 27, 2008.
A300-53-0383, including Appendix 1...........              01  May 27, 2008.
A300-57-6102, including Appendix 1...........              01  May 27, 2008.
----------------------------------------------------------------------------------------------------------------

    Issued in Renton, Washington, on June 26, 2008.
Dionne Palermo,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E8-15265 Filed 7-9-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Notices]
[Page 14176]
[FR Doc No: 2016-05865]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. 2016-04]

Petition for Exemption; Summary of Petition Received; Burlington
Northern Santa Fe Railway

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14 of the Code of Federal
Regulations. The purpose of this notice is to improve the public's
awareness of, and participation in, the FAA's exemption process.
Neither publication of this notice nor the inclusion or omission of
information in the summary is intended to affect the legal status of
the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before April 5, 2016.

ADDRESSES: Send comments identified by docket number FAA-2016-0734
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: 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.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this action, contact Jake Troutman,<PHONE_NUMBER>), 800 Independence
Avenue SW, Washington, DC, 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on March 8, 2016.
Lirio Liu,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2016-0734
    Petitioner: Burlington Northern Santa Fe Railway
    Section(s) of 14 CFR Affected: 61.113(a), 91.119(c), 91.121 and
91.151
    Description of Relief Sought: Burlington Northern Santa Fe Railway
(BNSF) seeks relief from the requirements of 14 CFR 61.113(a),
91.119(c), 91.121 and 91.151 to permit it to conduct sUAS operations
beyond visual line of sight as part of the FAA/BNSF UAS Focus Area
Pathfinder program. The purpose of the Pathfinder program \1\ is to
explore command-and-control challenges of using sUAS beyond visual line
of sight for inspection of rail system infrastructure in rural/isolated
areas.
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    \1\ https://www.faa.gov/uas/legislative_programs/pathfinders/.

[FR Doc. 2016-05865 Filed 3-15-16; 8:45 am]
 BILLING CODE 4910-13-P


the proposed rule change would foster cooperation and coordination with
persons engaged in facilitating transactions in securities and would
remove impediments to and perfect the mechanism of a free and open
market and a national market system. The Exchange also believes that
the proposed amendments will contribute to the protection of investors
and the public interest by making the Exchange's Rules easier to
understand.
    The proposed rule change clearly identifies the ways in which
trading during Regular Trading Hours will different from trading during
Global Trading Hours (such as identifying order types and instructions
that will not be available during Global Trading Hours). This ensures
that investors will continue to be aware of any differences among
trading sessions. The flexibility the Exchange maintains to make
determinations for each trading session will allow the Exchange to
apply settings and parameters to address the different market
conditions that may be present during each trading session.
    The proposed All Sessions order and RTH Only order will protect
investors by permitting investors who do not wish to trade during
Global Trading Hours from having orders or quotes execute during those
orders. Consistent with the goal of investor protection, the Exchange
will not allow market orders during Global Trading Hours due to the
expected increased volatility and decreased liquidity during these
hours. The other proposed Order Instructions and Times-in-Force not
currently available on the Exchange add functionality currently offered
by Cboe Affiliated Exchanges in order to provide consistent order
handling options across the Cboe Affiliated Exchanges. The proposed
rule changes would also provide Users with access to optional
functionality that may result in the efficient execution of such orders
and will provide additional flexibility as well as increased
functionality to the Exchange's System and its Users. As explained
above, the proposed functionality is substantially similar to
functionality on Cboe Affiliated Exchanges, and is optional for Users.
The proposed rule change would provide greater harmonization between
the order handling instructions available amongst the Cboe Affiliated
Exchanges, resulting in greater uniformity and less burdensome and more
efficient regulatory compliance. With respect to the proposed MTP
modifier functionality, the Exchange believes the various proposed
modifier options would allow firms to better manage order flow and
prevent undesirable executions against themselves, and the proposed
change described herein enhances the choices available to such firms in
how they do so. The proposed rule change also is designed to support
the principles of Section 11A(a)(1) of the Act \47\ in that it seeks to
assure fair competition among brokers and dealers and among exchange
markets. The proposed rule change would also provide Users with access
to functionality that may result in the efficient execution of such
orders and will provide additional flexibility as well as increased
functionality to the Exchange's System and its Users.
---------------------------------------------------------------------------

    \47\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------

    The Exchange believes not permitting Users to apply the Post Only
instruction to AON orders will protect investors, because it will
maximize execution opportunities for AON orders. An AON order's size
contingency, and the fact

that AON orders will have last priority while resting in the Book, will
provide AON orders resting on the Book with few opportunities for AON
orders to receive an execution. Additionally, Post Only orders are
intended to add displayed liquidity to the Book; because AON orders are
not displayed, the purpose of a Post Only instruction conflicts with
AON functionality. For these reasons, the Exchange believes there will
be minimal investor demand for Post Only AON orders. This ensures that
an AON order may execute upon entry if there is sufficient size resting
on the Book. Additionally, as noted above, other exchanges do not
permit AON orders to rest in the book at all (as they are required to
be IOC).\48\ Unlike those exchanges, the Exchange will permit AON
orders to rest in the Book, and will merely not permit AON orders to
only rest in the book. Cboe Options does not currently offer a Post
Only instruction, and therefore, an AON order submitted to Cboe Options
pursuant to the proposed rule change will be handled in the same manner
as it is handled today, as such an order would execute upon entry (if
possible), route (if eligible), or enter the Book (subject to any User
instructions).
---------------------------------------------------------------------------

    \48\ See, e.g., ISE Rule 715(c); NOM Chapter VI, section
1(e)(10); and Phlx Rule 1066(c)(4).
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change to offer use of the
MCN Modifier (and not the other MTP Modifiers) for AON orders protects
investors, because it provides all investors with the option to apply
match-trade prevention functionality to AON orders. The Exchange
believes there will be little demand for the use of any MTP Modifiers
on AON orders given that primarily retail investors submit AONs, and
retail investors are unlikely to have interest on both sides of the
market. Therefore, orders of different retail investors would have the
opportunity to execute against each other, unlike a broker who may have
orders resting on both sides of the market and may want to avoid those
orders executing against each other. Therefore, the Exchange believes
offering one MTP Modifier for AON orders is sufficient. Given this
expected minimal demand, the Exchange believes offering one MTP
Modifier for AON orders is sufficient. Additionally, the Exchange
believes that MCN is the most appropriate MTP modifier for AON orders
because an offering of other MTP modifier for investors would present
significant technical complexities given the size contingency of AON
orders and that MCN is the simplest modifier to implement from a System
perspective.\49\ The proposed rules provide investors with sufficient
transparency regarding how the System will handle AON orders with MTP
Modifiers, and Users may achieve other results manually if so desired.
For example, if a User were to prefer to have a resting order with an
MTP Modifier cancel and let the newer AON order rest, it could manually
cancel the resting order and then resubmit the AON order. The Exchange
has determined to handle an AON order with any other MTP Modifier as an
MCN rather than cancel the AON, and the Exchange believes the proposed
rules will protect investors because they provide investors with
sufficient transparency regarding how the System will handle AON orders
with MTP Modifiers. Additionally, Users may achieve other results
manually if so desired.
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    \49\ Additionally, the Decrement and Cancel MTP Modifier is
inconsistent with an AON order, because it may result in partial
execution of an order.
---------------------------------------------------------------------------

    The proposed changes to the definitions of MOC and LOC orders will
benefit investors, as they provide additional transparency in the Rules
regarding how the System handles these orders. The proposed changes are
consistent with current functionality.
    The proposed rule change makes no substantive changes to the other
current Rules being moved from the current Rulebook to the shell
Rulebook. The proposed rule change makes various nonsubstantive changes
throughout the Rules, which the Exchange believes will protect
investors and benefit market participants, as these changes simplify or
clarify rules, update defined terms, use plain English, and conform
language to corresponding Cboe Affiliated Exchange rules as
appropriate.
    As described above, the basis for the majority of the substantive
proposed rule changes in this filing are the approved rules of Cboe
Affiliated Exchanges, which have already been found to be consistent
with the Act. For instance, the Exchange does not believe that any of
the proposed Order Instructions or Times-in-Force raise any new or
novel issues that have not previously been considered by the
Commission.
    Thus, the Exchange further believes that the functionality that it
proposes to offer is consistent with Section 6(b)(5) of the Act,
because the System upon the technology migration is designed to
continue to be efficient and its operation transparent, thereby
facilitating transactions in securities, removing impediments to and
perfecting the mechanism of a free and open market and a national
market system.
    When Cboe Options migrates to the same technology as that of the
Cboe Affiliated Exchanges, Users of the Exchange and other Cboe
Affiliated Exchanges will have access to similar functionality on all
Cboe Affiliated Exchanges and similar language can be incorporated into
the rules of all Cboe Affiliated Exchanges. As such, the proposed rule
change would foster cooperation and coordination with persons engaged
in facilitating transactions in securities and would remove impediments
to and perfect the mechanism of a free and open market and a national
market system.

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. The Exchange reiterates that
the proposed rule change is being proposed in the context of the
technology integration of the Cboe Affiliated Exchanges. Thus, the
Exchange believes this proposed rule change is necessary to permit fair
competition among national securities exchanges. In addition, the
Exchange believes the proposed rule change will benefit Exchange
participants in that it will provide a consistent technology offering
for Users by the Cboe Affiliated Exchanges. Following the technology
migration, the proposed Rules being added to the shell Rulebook will
apply to all Users and orders submitted by Users in the same manner. As
discussed above, the basis for most of the substantive proposed rule
changes in this filing are the approved rules of Cboe Affiliated
Exchanges, which have already been found to be consistent with the Act.

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

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

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

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was
filed, or such

shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \50\ and Rule 19b-4(f)(6)
\51\ thereunder.\52\
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    \50\ 15 U.S.C. 78s(b)(3)(A).
    \51\ 17 CFR 240.19b-4(f)(6).
    \52\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2019-027 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2019-027. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2019-027 and should be submitted on
or before July 17, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\53\
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    \53\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13541 Filed 6-25-19; 8:45 am]
BILLING CODE 8011-01-P