[Federal Register: November 6, 2008 (Volume 73, Number 216)]
[Notices]
[Page 66082-66083]
[DOCID:fr06no08-79]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28482; 812-13548]

Wells Fargo Funds Trust, et al.; Notice of Application

October 31, 2008.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from rule 12d1-2(a)
under the Act.

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    Summary of Application: Applicants request an order to permit funds
of funds relying on rule 12d1-2 under the Act to invest in certain
financial instruments.
    Applicants: Wells Fargo Funds Trust (``Trust'') and Wells Fargo
Funds Management, LLC (``Advisor'').
    Filing Dates: The application was filed on July 21, 2008, and
amended on October 29, 2008.
    Hearing or Notification of Hearing: An order granting the
application will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on November 25, 2008, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090; Applicants, c/o Karin L. Brotman, Wells
Fargo Funds Management, LLC, 45 Fremont Street, 26th Floor, San
Francisco, CA 94105.

FOR FURTHER INFORMATION CONTACT: Lewis Reich, Senior Counsel, at (202)
551-6919, or Janet M. Grossnickle, Assistant Director, at (202) 551-
6821 (Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
Commission's Public Reference Room, 100 F Street, NE., Washington, DC
20549-1520 (telephone<PHONE_NUMBER>).
    Applicants' Representations:
    1. The Trust is organized as a Delaware statutory trust and is
registered under the Act as an open-end series management investment
company. The Advisor is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended, and provides investment
management advice and manages the business affairs of each Applicant
Fund (as defined below). Applicants request an exemption from rule
12d1-2(a) under the Act to the extent necessary to permit any existing
or future series of the Trust and any other registered open-end
investment company advised by the Advisor or any person controlling,
controlled by or under common control with the Advisor that operates as
a ``fund of funds'' (the ``Applicant Funds'') and invests in other
Wells Fargo funds in reliance on section 12(d)(1)(G) of the Act, and is
also eligible to invest in securities (as defined in section 2(a)(36)
of the Act) in reliance on rule 12d1-2 under the Act, to also invest,
to the extent consistent with its investment objective, policies,
strategies and limitations, in financial instruments that may not be
securities within the meaning of section 2(a)(36) of the Act (``Other
Investments'').\1\
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    \1\ Every existing entity that currently intends to rely on the
requested order is named as an applicant. Any existing or future
entity that relies on the order in the future will do so only in
accordance with the terms and condition in the application.
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    2. Consistent with its fiduciary obligations under the Act, each
Applicant Fund's board of trustees or directors will review the
advisory fees charged by the Applicant Fund's investment adviser to
ensure that they are based on services provided that are in addition
to, rather than duplicative of, services provided pursuant to the
advisory agreement of any investment company in which the Applicant
Fund may invest.
    Applicants' Legal Analysis:
    1. Section 12(d)(1)(A) of the Act provides that no registered
investment company (``acquiring company'') may acquire securities of
another investment company (``acquired company'') if such securities
represent more than 3% of the acquired company's outstanding voting
stock or more than 5% of the acquiring company's total assets, or if
such securities, together with the securities of other investment
companies, represent more than 10% of the acquiring company's total
assets. Section 12(d)(1)(B) of the Act provides that no registered
open-end investment company may sell its securities to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or cause more than
10% of the acquired company's voting stock to be owned by investment
companies.
    2. Section 12(d)(1)(G) of the Act provides that section 12(d)(1)
will not apply to securities of an acquired company purchased by an
acquiring company if: (i) The acquiring company and acquired company
are part of the same group of investment companies; (ii) the acquiring
company holds only securities of acquired companies that are part of
the same group of investment companies, government securities, and
short-term paper; (iii) the aggregate sales loads and distribution-
related fees of the acquiring company and the acquired company are not
excessive under rules adopted pursuant to section 22(b) or section
22(c) of the Act by a securities association registered under section
15A of the Exchange Act or by the Commission; and (iv) the acquired
company has a policy that prohibits it from acquiring securities of
registered open-end management investment companies or registered unit
investment trusts in reliance on section 12(d)(1)(F) or (G) of the Act.
    3. Rule 12d1-2 under the Act permits a registered open-end
investment company or a registered unit investment trust that relies on
section 12(d)(1)(G) of the Act to acquire, in addition to securities
issued by another registered investment company in the same group of
investment companies, government securities, and short-term paper: (1)
Securities issued by an investment company that is not in the same
group of investment companies, when the acquisition is in reliance on
section 12(d)(1)(A) or 12(d)(1)(F) of the Act; (2) securities (other
than securities issued by an investment company); and (3) securities
issued by a money market fund, when the investment is in reliance on
rule 12d1-1 under the Act. For the purposes of rule 12d1-2,
``securities'' means any security as defined in section 2(a)(36) of the
Act.
    4. Section 6(c) of the Act provides that the Commission may exempt
any person, security, or transaction from any provision of the Act, or
from any rule under the Act, if such exemption is

necessary or appropriate in the public interest and consistent with the
protection of investors and the purposes fairly intended by the
policies and provisions of the Act.
    5. Applicants state that the proposed arrangement would comply with
the provisions of rule 12d1-2 under the Act, but for the fact that the
Applicant Funds may invest a portion of their assets in Other
Investments. Applicants request an order under section 6(c) of the Act
for an exemption from rule 12d1-2(a) to allow the Applicant Funds to
invest in Other Investments. Applicants assert that permitting the
Applicant Funds to invest in Other Investments as described in the
application would not raise any of the concerns that the requirements
of section 12(d)(1) were designed to address.
    Applicants' Condition:
    Applicants agree that the order granting the requested relief will
be subject to the following condition:
    Applicants will comply with all provisions of rule 12d1-2 under the
Act, except for paragraph (a)(2) to the extent that it restricts any
Fund from investing in Other Investments as described in the
application.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26488 Filed 11-5-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 50 (Thursday, March 16, 2017)]
[Notices]
[Pages 14072-14074]
[FR Doc No: 2017-05218]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80211; File No. SR-ISEMercury-2017-04]

Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Harmonize
Liability Caps and Related Reimbursement Requirements

March 10, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 27, 2017, ISE Mercury, LLC (``ISE Mercury'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 705 (Limitation of Liability)
to harmonize its liability caps and related reimbursement requirements
with those of NASDAQ BX, Inc. (``BX''), NASDAQ PHLX LLC (``Phlx'') and
NASDAQ Stock Market LLC (``NSM'' and together with BX and Phlx, the
``Nasdaq Exchanges'').
    The text of the proposed rule change is available on the Exchange's
Web site at www.ise.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of this proposed rule change is to amend Rule 705
(Limitation of Liability) to harmonize the Exchange's existing
liability caps and related reimbursement requirements for claims under
Rule 705(d) with the caps and requirements set forth in the rules of
the Nasdaq Exchanges.\3\ The Exchange and its affiliates, International
Securities Exchange, LLC and ISE Gemini, LLC (together, the ``ISE
Exchanges''), were recently acquired (the ``Acquisition'') by Nasdaq,
Inc. (``HoldCo'').\4\ In the context of the Acquisition, the ISE
Exchanges are working to align certain rules with rules of the Nasdaq
Exchanges in order to provide consistent standards across the six
exchanges operated by HoldCo (the ``HoldCo Affiliated Exchanges''). As
part of this effort, the proposal set forth below harmonizes the
Exchange's liability caps and the related reimbursement requirements
with those of the Nasdaq Exchanges in order to provide uniform
standards and requirements for users of the HoldCo Affiliated
Exchanges.\5\
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    \3\ See BX Rule 4626(b) and Phlx Rule 1015. See also NSM Rule
4626(b).
    \4\ See Securities Exchange Act Release No. 78119 (June 21,
2016), 81 FR 41611 (June 27, 2016) (SR-ISE-2016-11; SR-ISEGemini-
2016-05; SR-ISEMercury-2016-10).
    \5\ International Securities Exchange, LLC and ISE Gemini, LLC
will each file a proposed rule change with the Commission to adopt
similar requirements.
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    Rule 705 in its current form generally states that the Exchange is
not liable for any losses due to the Exchange's negligence or
unintentional actions, but also provides in Rule 705(d) that
notwithstanding this general limitation on liability, the Exchange may
compensate its members for losses resulting directly from the
malfunction of the Exchange's physical equipment, devices and/or
programming. Subsections (d)(1)-(d)(3) of Rule 705 contains express
conditions governing the voluntary payments made by the Exchange under
these limited circumstances. Specifically, the Exchange's payments for
any and all system failures on a single trading day are capped at
$250,000 under subsection (d)(1). The rule text states that for the
aggregate of all claims made by all market participants related to the
use of the Exchange on a single trading day, the Exchange's payments
shall not exceed $250,000. Subsection (d)(2) further provides that if
the cumulative claims exceed the $250,000 cap, this amount would be
proportionally allocated among all such claims. Finally, subsection
(d)(3) specifies that in order for a member to be eligible to receive
payment under this Rule, claims for payment must be made in writing and
submitted no later than the opening of trading on the next business day
after the loss. Once in receipt of a claim, the Exchange is required to
verify that: (i) A valid order was accepted into the Exchange's
systems; and (ii) an Exchange system failure occurred during the
execution or handling of that order. A system failure will be deemed to
have occurred when there is a malfunction of the Exchange's physical
systems, devices or software.
    The Exchange now proposes to amend the existing rule text in Rule
705(d) to adopt the same liability caps and reimbursement requirements
as the Nasdaq Exchanges.\6\ Proposed Rule 705(d) would provide that the
Exchange may, notwithstanding the general limitations on liability
contained in Rule 705(a), compensate users of the Exchange for losses
directly resulting from the actual failure of the System,\7\ or any
other Exchange quotation, transaction reporting, execution, order
routing or other systems or facility to correctly process an order,
quote, message, or other data, provided that the Exchange has
acknowledged receipt of the order, quote, message, or data. This
limited exception in proposed Rule 705(d) would be subject to certain
conditions and requirements contained in proposed subsections (d)(1)-
(3).
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    \6\ See note 4 above.
    \7\ ``System'' means the electronic system operated by the
Exchange that receives and disseminates quotes, executes orders and
reports transactions. See the Constitution of ISE Mercury, Section
13.1(ee).
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    Subsection (d)(1) proposes that the aggregate payments for all
compensation claims made by all market participants

related to the use of the Exchange during a single calendar month would
not exceed the larger of $500,000, or the amount of the recovery
obtained by the Exchange under any applicable insurance policy.\8\
Under this proposal, the Exchange will eliminate the existing $250,000
daily cap on liability and consider all such claims on a monthly basis,
subject to proposed $500,000 monthly liability cap. Each Nasdaq
Exchange currently analyzes total eligible liability claims on a per-
month look-back basis. The Exchange's proposal to adopt an identical
claims process, in effect, would allow ISE Mercury an increased
capability to compensate a market participant up to the monthly cap of
$500,000 even though the losses occurred on a single day or were across
multiple days for a single participant.
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    \8\ See BX Rule 4626(b)(1), Phlx Rule 1015(1), and NSM Rule
4626(b)(1) for substantially similar provisions.
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    Proposed subsection (d)(2) specifies how the reimbursement funds
would be allocated in the event all of the compensation claims
submitted during a single calendar month exceed the $500,000 monthly
cap. Specifically, if all of the claims arising out of the use of the
Exchange cannot be fully satisfied because in the aggregate they exceed
the limitations provided for in the Rule ($500,000), then the maximum
permitted amount would be proportionally allocated among all such
claims arising during a single calendar month.\9\ This is substantially
similar to the existing process where the maximum amount is
proportionally allocated among all such claims, except it would be for
all claims arising during a one-month period under the proposed rule
change rather than during a single trading day under the existing Rule.
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    \9\ See BX Rule 4626(b)(2), Phlx Rule 1015(2), and NSM Rule
4626(b)(5) for substantially similar provisions.
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    Finally, proposed subsection (d)(3) specifies the requirements and
procedures applicable to the submission of reimbursement claims.
Specifically, all claims for compensation must be submitted in writing
no later than 12:00 p.m. ET on the next business day following the day
on which the use of the Exchange gave rise to such claims.\10\ As such,
the Exchange is proposing to extend the deadline to submit compensation
claims from the opening of trading on the next business day to 12:00
p.m. ET. The Exchange believes that the extension of time to make such
compensation claims increases the ability of market participants to
submit claims in a timely manner. Proposed subsection (d)(3) also
states that nothing in the Rule obligates the Exchange to seek recovery
under any applicable insurance policy. If the Exchange does seek and
receive an insurance recovery that is larger than $500,000, the amount
of that recovery would limit the reimbursement funds available for the
incident supporting the recovery to the greater recovery amount.\11\
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    \10\ See BX Rule 4626(b)(3) and Phlx Rule 1015(3) for
substantially similar provisions. See also NSM Rule 4626(b)(6).
    \11\ There are no other practical differences between the
Exchange's existing reimbursement rule and this proposal than as
described above. Specifically these differences are: The liability
caps (i.e. the greater of $500,000 or, if the Exchange opts to seek
recovery, the recovery amount under any applicable insurance
policy), the look-back analysis period of one month, and the later
claims deadline of 12:00 p.m. ET.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\12\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\13\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest. The proposal supports this policy by establishing a fair and
transparent process by which the Exchange can accommodate claims for
reimbursement for the failure of specified systems in specified
facilities and under specified conditions. The Exchange believes that
its proposal to amend Rule 705(d) will continue to promote fairness in
the marketplace in situations where one or more firm's claim results
from a problem in a function performed by the Exchange's trading system
that is solely the fault of the Exchange. As noted above, the proposal
would allow the Exchange an increased capability to compensate a market
participant up to the monthly cap of $500,000 even though the losses
occurred on a single day or were across multiple days for a single
participant. Furthermore, the proposed expansion of time to make such
compensation claims would increase the ability of market participants
to submit claims in a timely manner.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    Lastly, the proposed rule change is intended to align the liability
caps and compensation claims requirements with the caps and
requirements currently provided by the Nasdaq Exchanges in order to
provide consistent rules across the six HoldCo Affiliated
Exchanges.\14\ Consistent rules, in turn, would simplify the regulatory
requirements for members of the Exchange that are also participants on
the Nasdaq Exchanges. The Exchange believes that the proposed rule
change would provide greater harmonization among similar rules of the
HoldCo Affiliated Exchanges, resulting in greater uniformity and more
efficient regulatory compliance. 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.
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    \14\ See note 4 above.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act because all members would be
subject to the same liability caps and reimbursement requirements. The
proposed rule change is designed to provide greater harmonization among
similar rules across the six HoldCo Affiliated Exchanges, resulting in
more efficient regulatory compliance for common members.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \15\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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: (i) Necessary or appropriate in the public
interest; (ii) for the protection of investors; or (iii) otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-ISEMercury-2017-04 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISEMercury-2017-04. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISEMercury-2017-04, and
should be submitted on or before April 6, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05218 Filed 3-15-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 92 (Thursday, May 12, 2016)]
[Notices]
[Page 29559]
[FR Doc No: 2016-11226]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 12966-004]

Utah Board of Water Resources; Notice of Application Tendered for
Filing With the Commission and Establishing Procedural Schedule for
Licensing and Deadline for Submission of Final Amendments

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: Major Unconstructed License.
    b. Project No.: 12966-004.
    c. Date Filed: May 2, 2016.
    d. Applicant: Utah Board of Water Resources.
    e. Name of Project: Lake Powell Pipeline Project.
    f. Location: In Washington and Kane counties, Utah, and in Coconino
and Mohave counties, Arizona. The project would occupy 449 acres of
federal land managed by the Bureau of Land Management.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact: Bill Leeflang, Project Manager, Utah Division
of Water Resources; Telephone<PHONE_NUMBER> or<EMAIL_ADDRESS>    i. FERC Contact: Jim Fargo,<PHONE_NUMBER> or<EMAIL_ADDRESS>    j. This application is not ready for environmental analysis at this
time.
    k. The proposed Lake Powell Pipeline Project would consist of: (1)
140 miles of 69-inch-diameter pipeline and penstock, (2) a combined
conventional peaking and pumped storage hydro station, (3) four
conventional in-pipeline hydro stations, (4) a conventional hydro
station, and (4) transmission lines.
    The proposed project's water intake would convey water from the
Bureau of Reclamation's Lake Powell up to a high point within the Grand
Staircase-Escalante National Monument, after which it would flow
through a series of hydroelectric turbines, ending at Sand Hollow
reservoir, near St. George, Utah.
    The energy generation components of the proposed project would
include: (1) An inline single-unit, 1-megawatt (MW) facility at Hydro
Station 1 in the Grand Staircase-Escalante National Monument; (2) an
inline single-unit, 1.7-MW facility at Hydro Station 2 east of Colorado
City, Arizona; (3) an inline single-unit, 1-MW facility in Hildale
City, Utah; (4) an inline single-unit, 1.7-MW facility above the
Hurricane Cliffs forebay reservoir; (5) a 2-unit, 300-MW (150-MW each
unit) hydroelectric pumped storage development at Hurricane Cliffs,
with the forebay and afterbay sized to provide ten hours of continuous
300-MW output; (6) a single-unit, 35-MW conventional energy recovery
generation unit built within the Hurricane Cliffs development; and (7)
a single-unit, 5-MW facility at the existing Sand Hollow Reservoir.
    l. Locations of the Application: A copy of the application is
available for review at the Commission in the Public Reference Room or
may be viewed on the Commission's Web site at http://www.ferc.gov using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>(866) 208-3676 (toll free), or (202) 502-
8659 (TTY). A copy is also available for inspection and reproduction at
the address in item (h) above.
    m. You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    n. Procedural Schedule:
    The application will be processed according to the following
preliminary Hydro Licensing Schedule. Revisions to the schedule may be
made as appropriate.

------------------------------------------------------------------------
             Milestone                           Target date
------------------------------------------------------------------------
Notice of Acceptance/Notice of      January 2017.
 Ready for Environmental Analysis.
Filing of recommendations,          March 2017.
 preliminary terms and conditions.
Commission issues Draft             September 2017.
 Environmental Impact Statement
 (DEIS).
Comments on DEIS..................  November 2017.
Modified terms and conditions.....  January 2018.
Commission issues Final EIS.......  April 2018.
------------------------------------------------------------------------

    o. Final amendments to the application must be filed with the
Commission no later than 30 days from the issuance date of the notice
of ready for environmental analysis.

    Dated: May 6, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-11226 Filed 5-11-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 92 (Friday, May 14, 2021)]
[Rules and Regulations]
[Pages 26367-26370]
[FR Doc No: 2021-10259]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0342; Project Identifier MCAI-2020-01547-T;
Amendment 39-21530; AD 2021-09-16]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
certain Bombardier, Inc., Model BD-100-1A10 airplanes. This AD was
prompted by a report of a number of low altitude engine surge incidents
during takeoff. This AD requires revising the existing airplane flight
manual and applicable corresponding operational procedures to provide
the flightcrew with procedures to require the engine bleeds to be
``ON'' during takeoff. The FAA is issuing this AD to address the unsafe
condition on these products.

DATES: This AD becomes effective June 1, 2021.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of June 1, 2021.
    The FAA must receive comments on this AD by June 28, 2021.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this final rule, contact
Bombardier, Inc., 200 C[ocirc]te Vertu Road West, Dorval, Qu[eacute]bec
H4S 2A3, Canada; North America toll-free telephone 1-866-538-1247 or
direct-dial telephone 1-514-855-2999; email<EMAIL_ADDRESS>
internet https://www.bombardier.com. You may view this referenced
service information at the FAA, Airworthiness Products

Section, Operational Safety Branch, 2200 South 216th St., Des Moines,
WA. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>. It is also available on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2021-
0342.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2021-
0342; 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 this AD, any comments received, and other information. The
street address for the Docket Operations office is listed above.

FOR FURTHER INFORMATION CONTACT: Jiwan Karunatilake, Aerospace
Engineer, Airframe and Propulsion Section, FAA, New York ACO Branch,
1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-
7300; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    Transport Canada Civil Aviation (TCCA) which is the aviation
authority for Canada, has issued TCCA AD CF-2020-47, dated November 18,
2020 (TCCA AD CF-2020-47) (referred to after this as the Mandatory
Continuing Airworthiness Information, or the MCAI), to correct an
unsafe condition for certain Bombardier, Inc., Model BD-100-1A10
airplanes. You may examine the MCAI on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2021-
0342.
    This AD was prompted by a report of a number of low altitude engine
surge incidents during takeoff. Under certain environmental conditions
(e.g., temperature/thermal inversion), the existing engine control
features can lead to engine surge. The FAA is issuing this AD to
address engine surges during takeoff, which can result in significant
loss of engine thrust or even engine shutdown and can occur on both
engines at the same time. See the MCAI for additional background
information.

Related Service Information Under 1 CFR Part 51

    Bombardier has issued Section 02-04, ``Systems Limitations,'' of
Chapter 02, ``LIMITATIONS''; and Section 04-03 of Chapter 04, ``NORMAL
PROCEDURES''; of Challenger 300 Airplane Flight Manual (Imperial
Version), Publication No. CSP 100-1, Revision 63, dated April 1, 2021.
Section 02-04, ``Systems Limitations,'' of Chapter 02, ``LIMITATIONS''
provides a procedure for ``Air Conditioning and Pressurization''; and
Section 04-03 of Chapter 04, ``NORMAL PROCEDURES'' provides a procedure
for ``Taxi and Before Takeoff.'' The procedures require the left and
right engine bleeds to be ``ON'' during takeoff. (For obtaining the
procedures for Bombardier Challenger 300 Airplane Flight Manual
(Imperial Version), Publication No. CSP 100-1, use Document
Identification No. CH 300 AFM-I.) 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.

FAA's Determination

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with the State of Design Authority,
the FAA has been notified of the unsafe condition described in the MCAI
and service information referenced above. The FAA is issuing this AD
because the FAA evaluated all pertinent information and determined the
unsafe condition exists and is likely to exist or develop on other
products of the same type design.

Requirements of This AD

    This AD requires revising the existing airplane flight manual and
applicable corresponding operational procedures to provide the
flightcrew with procedures that require the engine bleeds to be ``ON''
during takeoff.

Explanation of Incorporating Information Specified in an AFM Revision

    This AD requires including the information that is provided in the
referenced AFM revision in paragraph (g) of this AD. The language in
paragraph (g) of this AD is designed to allow incorporating the
specific information, regardless of the revision level of the AFM in
use, provided the language is identical to the referenced AFM revisions
specified in paragraph (g) of this AD. The language in a later revision
of the Challenger 300 Airplane Flight Manual, Publication No. CSP 100-1
that is the same as the language in Challenger 300 Airplane Flight
Manual, Publication No. CSP 100-1, Revision 63, dated April 1, 2021,
may be incorporated.

FAA's Justification and Determination of the Effective Date

    An unsafe condition exists that requires the immediate adoption of
this AD without providing an opportunity for public comments prior to
adoption. The FAA has found that the risk to the flying public
justifies waiving notice and comment prior to adoption of this rule
because engine surges during takeoff can result in significant loss of
engine thrust or even engine shutdown and can occur on both engines at
the same time. In addition, the compliance time for the required action
is shorter than the time necessary for the public to comment and for
publication of the final rule. Therefore, the FAA finds good cause that
notice and opportunity for prior public comment are impracticable. In
addition, for the reasons stated above, the FAA finds that good cause
exists for making this amendment effective in less than 30 days.

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this AD. Send your comments to an address listed under
ADDRESSES. Include ``Docket No. FAA-2021-0342; Project Identifier MCAI-
2020-01547-T'' at the beginning of your comments. The most helpful
comments reference a specific portion of the final rule, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
this final rule because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this final rule.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this AD contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this AD, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission

containing CBI as ``PROPIN.'' The FAA will treat such marked
submissions as confidential under the FOIA, and they will not be placed
in the public docket of this AD. Submissions containing CBI should be
sent to Jiwan Karunatilake, Aerospace Engineer, Airframe and Propulsion
Section, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>Any commentary that the FAA receives which is
not specifically designated as CBI will be placed in the public docket
for this rulemaking.

Interim Action

    The FAA considers this AD interim action. The engine manufacturer
is in the process of developing new engine control software to address
the problem of low altitude engine surges occurring under certain
environmental conditions. Once this software is developed, approved,
and available, the FAA might consider additional rulemaking.

Regulatory Flexibility Act (RFA)

    The requirements of the RFA do not apply when an agency finds good
cause pursuant to 5 U.S.C. 553 to adopt a rule without prior notice and
comment. Because the FAA has determined that it has good cause to adopt
this rule without notice and comment, RFA analysis is not required.

Costs of Compliance

    The FAA estimates that this AD affects 356 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
                          Labor cost                              Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
1 work-hour x $85 per hour = $85.............................              $0              $85          $30,260
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

    The FAA 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, and
    (2) Will not affect intrastate aviation in Alaska.

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 adding the following new airworthiness
directive:

2021-09-16 Bombardier, Inc.: Amendment 39-21530; Docket No. FAA-
2021-0342; Project Identifier MCAI-2020-01547-T.

(a) Effective Date

    This airworthiness directive (AD) becomes effective June 1,
2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Bombardier, Inc., Model BD-100-1A10
airplanes, certificated in any category, serial numbers 20003
through 20457 inclusive.

(d) Subject

    Air Transport Association (ATA) of America Code 36, Pneumatic;
73, Engine Fuel and Control.

(e) Reason

    This AD was prompted by a report of a number of low altitude
engine surge incidents during takeoff. The FAA is issuing this AD to
address engine surges during takeoff, which can result in
significant loss of engine thrust or even engine shutdown and can
occur on both engines at the same time.

(f) Compliance

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

(g) Revision of the Airplane Flight Manual (AFM)

    Within 60 days after the effective date of this AD: Revise the
existing AFM and applicable corresponding operational procedures to
include the information in the ``Air Conditioning and
Pressurization'' procedure in Section 02-04, ``Systems
Limitations,'' of Chapter 02, ``LIMITATIONS''; and the ``Taxi and
Before Takeoff'' procedure in Section 04-03 of Chapter 04, ``NORMAL
PROCEDURES''; of the Bombardier Challenger 300 Airplane Flight
Manual (Imperial Version), Publication No. CSP 100-1, Revision 63,
dated April 1, 2021.

    Note 1 to paragraph (g):  For obtaining the procedures for
Bombardier Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, use Document Identification No. CH 300
AFM-I.

(h) Credit for Previous Actions

    This paragraph provides credit for the actions specified in
paragraph (g) of this AD, if those actions were performed before the
effective date of this AD using the information in Section 02-04,
``Systems Limitations,'' of Chapter 02, ``LIMITATIONS''; and Section
04-03 of Chapter 04, ``NORMAL PROCEDURES''; of any airplane flight
manual specified in paragraphs (h)(1) through (3) of this AD.
    (1) Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, Revision 60, dated July 1, 2020.

    Note 2 to paragraph (h)(1):  For obtaining the procedures for
Bombardier Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, use Document Identification No. CH 300
AFM-I.

    (2) Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, Revision 61, dated September 25, 2020.
    (3) Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, Revision 62, dated December 22, 2020.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO Branch, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. In
accordance with 14 CFR 39.19, send your request to your responsible
Flight Standards Office, as appropriate. If sending information
directly to the manager of the certification office, send it to
ATTN: Program Manager, Continuing Operational Safety, FAA, New York
ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before using any approved
AMOC, notify your appropriate principal inspector, or lacking a
principal inspector, the manager of the responsible Flight Standards
Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, New York ACO
Branch, 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.

(j) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) TCCA AD CF-2020-47, dated November 18, 2020, for related
information. This MCAI may be found in the AD docket on the internet
at https://www.regulations.gov by searching for and locating Docket
No. FAA-2021-0342.
    (2) For more information about this AD, contact Jiwan
Karunatilake, Aerospace Engineer, Airframe and Propulsion Section,
FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury,
NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (3) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (k)(3) and (4) of this AD.

(k) 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) Section 02-04, ``Systems Limitations,'' of Chapter 02,
``LIMITATIONS,'' of the Bombardier Challenger 300 Airplane Flight
Manual (Imperial Version), Publication No. CSP 100-1, Revision 63,
dated April 1, 2021.
    (ii) Section 04-03 of Chapter 04, ``NORMAL PROCEDURES,'' of the
Bombardier Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, Revision 63, dated April 1, 2021.
    (3) For service information identified in this AD, contact
Bombardier, Inc., 200 C[ocirc]te Vertu Road West, Dorval,
Qu[eacute]bec H4S 2A3, Canada; North America toll-free telephone 1-
866-538-1247 or direct-dial telephone 1-514-855-2999; email
<EMAIL_ADDRESS>internet https://www.bombardier.com.

    Note 2 to paragraph (j)(3):  For obtaining the procedures for
Bombardier Challenger 300 Airplane Flight Manual (Imperial Version),
Publication No. CSP 100-1, use Document Identification No. CH 300
AFM-I.

    (4) You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>.
    (5) 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, email<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on April 23, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-10259 Filed 5-11-21; 4:15 pm]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 116 (Thursday, June 16, 2016)]
[Rules and Regulations]
[Pages 39193-39194]
[FR Doc No: 2016-14273]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2016-0408]

Safety Zone; Annual Firework Events on the Colorado River,
Between Davis Dam (Bullhead City, Arizona) and Headgate Dam (Parker,
Arizona) Within the San Diego Captain of the Port Zone

AGENCY: Coast Guard, DHS.

ACTION: Notice of enforcement of regulation.

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SUMMARY: The Coast Guard will enforce the safety zone for the Avi
Resort and Casino Independence Day Fireworks display on the Colorado
River in Laughlin, Nevada on Monday, July 4, 2016. This safety zone is
necessary to provide for the safety of the participants, spectators,
official vessels of the event, and general users of the waterway. Our
regulation for annual firework events on the Colorado River within the
San Diego Captain of the Port Zone identifies the regulated area for

this event. During the enforcement period, no spectators shall anchor,
block, loiter in, or impede the transit of official patrol vessels in
the regulated area without the approval of the Captain of the Port, or
a designated representative.

DATES: The regulations in 33 CFR 165.1124 will be enforced from 8 p.m.
through 10 p.m. on July 4, 2016, for Item 3 in Table 1 of Sec.
165.1124.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
publication, call or email Petty Officer Randolph Pahilanga, Waterways
Management, U.S. Coast Guard Sector San Diego, CA; telephone 619-278-
7656, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the regulations
in 33 CFR 165.1124 for a safety zone on the Colorado River in Laughlin,
Nevada for the Avi Resort and Casino Independence Day Fireworks in 33
CFR 165.1124, Table 1, Item 3 of that section, from 8 p.m. through 10
p.m. on July 4, 2016. This enforcement action is being taken to provide
for the safety of life on navigable waterways during the fireworks
event. Our regulation for annual fireworks events on the Colorado River
within the San Diego Captain of the Port Zone identifies the regulated
entities for the this event. Under the provisions of 33 CFR 165.1124, a
vessel may not enter the regulated area, unless it receives permission
from the Captain of the Port, or his designated representative.
Spectator vessels may safely transit outside the regulated area but may
not anchor, block, loiter, or impede the transit of participants or
official patrol vessels. The Coast Guard may be assisted by other
Federal, State, or Local law enforcement agencies in enforcing this
regulation.
    This document is issued under authority of 33 CFR 165.1124 and 5
U.S.C. 552(a). In addition to this document in the Federal Register,
the Coast Guard will provide the maritime community with advance
notification of this enforcement period via the Local Notice to
Mariners and local advertising by the event sponsor.
    If the Captain of the Port or his designated representative
determines that the regulated area need not be enforced for the full
duration stated on this document, he or she may use a Broadcast Notice
to Mariners or other communications coordinated with the event sponsor
to grant general permission to enter the regulated area.

    Dated: June 2, 2016.
E.M. Cooper,
Commander, U.S. Coast Guard, Acting Captain of the Port San Diego.
[FR Doc. 2016-14273 Filed 6-15-16; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 78, Number 222 (Monday, November 18, 2013)]
[Rules and Regulations]
[Pages 68985-68986]
[FR Doc No: 2013-27343]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2013-0958; Special Conditions No. 25-503-SC]

Special Conditions: Boeing Model 777-200, -300, and -300ER Series
Airplanes; Aircraft Electronic System Security Protection From
Unauthorized Internal Access

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions.

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

SUMMARY: These special conditions are issued for the Boeing Model 777-
200, -300, and -300ER series airplanes. These airplanes, as modified by
the Boeing Company, will have novel or unusual design features
associated with the architecture and connectivity of the passenger
service computer network systems to the airplane critical systems and
data networks. This onboard network system will be composed of a
network file server, a network extension device, and additional
interfaces configured by customer option. The applicable airworthiness
regulations do not contain adequate or appropriate safety standards for
this design feature. These special conditions contain the additional
safety standards that the Administrator considers necessary to
establish a level of safety equivalent to that established by the
existing airworthiness standards.

DATES: Effective Date: The effective date of these special conditions
is November 18, 2013.

FOR FURTHER INFORMATION CONTACT: Varun Khanna, FAA, Airplane and Flight
Crew Interface Branch, ANM-111, Transport Airplane Directorate,
Aircraft Certification Service, 1601 Lind Avenue SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; facsimile<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    On August 21, 2012, The Boeing Company applied for a change to Type
Certificate No. T00001SE Rev. 30 dated June 6, 2012 for installation of
an onboard network system, associated line replaceable units (LRUs) and
additional software functionality in the Boeing Model 777-200, -300,
and -300ER Series Airplanes. The Boeing Model 777-200 airplanes are
long-range, wide-body, twin-engine jet airplanes with a maximum
capacity of 440 passengers. The Boeing Model 777-300 and 777-300ER
series airplanes have a maximum capacity of 550 passengers. The Model
777-200, -300, and -300ER series airplanes have fly-by-wire controls,
software-configurable avionics, and fiber-optic avionics networks.
    The proposed architecture is novel or unusual for commercial
transport airplanes by enabling connection to previously isolated data
networks connected to systems that perform functions required for the
safe operation of the airplane. This proposed data network and design
integration may result in security vulnerabilities from intentional or
unintentional corruption of data and systems critical to the safety and
maintenance of the airplane. The existing regulations and guidance
material did not anticipate this type of system architecture or
electronic access to aircraft systems. Furthermore, regulations and
current system safety assessment policy and techniques do not address
potential security vulnerabilities, which could be caused by
unauthorized access to aircraft data buses and servers.

Type Certification Basis

    Under Title 14, Code of Federal Regulations (14 CFR) 21.17, The
Boeing Company must show that the Model 777-200, -300, and -300ER
series airplanes meet the applicable provisions of 14 CFR part 25, as
amended by Amendments 25-1 through 25-128.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Boeing Model 777-200, -300, and -
300ER series airplanes because of a novel or unusual design feature,
special conditions are prescribed under Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same novel or
unusual design feature, the proposed special conditions would also
apply to the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and
proposed special conditions, the Boeing Model 777-200, -300, and -300ER
series airplanes must comply with the fuel vent and exhaust emission
requirements of 14 CFR part 34 and the noise certification requirements
of 14 CFR part 36 and the FAA must issue a finding of regulatory
adequacy under Sec.  611 of Public Law 92-574, the ``Noise Control Act
of 1972.''
    The FAA issues special conditions, as defined in 14 CFR 11.19,
under Sec.  11.38, and they become part of the type-certification basis
under Sec.  21.17(a)(2).

Novel or Unusual Design Features

    The Boeing Model 777-200, -300, -300ER series airplanes will
incorporate the following novel or unusual design features: An onboard
computer network system, and a network extension device. The network
extension device will improve domain separation between the airplane
information services domain and the aircraft control domain. The
proposed architecture and network configuration may be used for, or
interfaced with, a diverse set of functions, including:
    1. Flight-safety related control and navigation systems,
    2. Operator business and administrative support (operator
information services),
    3. Passenger information systems, and,
    4. Access by systems internal to the airplane.

Discussion

    The integrated network configurations in the Boeing Model 777-200,
-300, and -300ER series airplanes may enable increased connectivity
with external network sources and will have more interconnected
networks and systems, such as passenger entertainment and information
services than previous airplane models. This may enable the
exploitation of network security vulnerabilities and increased risks
potentially resulting in unsafe conditions for the airplanes and
occupants. This potential exploitation of security vulnerabilities may
result in intentional or unintentional destruction, disruption,
degradation, or exploitation of data and systems critical to the safety
and maintenance of the airplane. The existing regulations and guidance
material did not anticipate these types of system architectures.
Furthermore, 14 CFR regulations and current system safety assessment
policy and techniques do not address potential security vulnerabilities
which could be exploited by unauthorized access to airplane networks
and servers. Therefore, these special conditions are being issued to
ensure that the security (i.e., confidentiality, integrity, and
availability) of airplane systems is not compromised by unauthorized
wired or

wireless electronic connections between the airplane information
services domain, aircraft control domain, and the passenger
entertainment services.
    For the reasons discussed above, these special conditions contain
the additional safety standards that the Administrator considers
necessary to establish a level of safety equivalent to that established
by the existing airworthiness standards.

Applicability

    As discussed above, these special conditions are applicable to the
Boeing Model 777-200, -300, -300ER series airplanes. Should The Boeing
Company apply at a later date for a change to the type certificate to
include another model on the same type certificate incorporating the
same novel or unusual design feature, the special conditions would
apply to that model as well.

Conclusion

    This action affects only certain novel or unusual design features
on Boeing Model 777-200, -300, -300ER series airplanes. It is not a
rule of general applicability.
    The substance of these special conditions has been subjected to the
notice and comment period in several prior instances and has been
derived without substantive change from those previously issued. It is
unlikely that prior public comment would result in a significant change
from the substance contained herein. Therefore, the FAA has determined
that prior public notice and comment are unnecessary, and good cause
exists for adopting these special conditions upon publication in the
Federal Register.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701, 44702, 44704.

The Special Conditions

    Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for Boeing Model 777-200, -300, -300ER
series airplanes modified by The Boeing Company.
    1. The applicant must ensure that the design provides isolation
from, or airplane electronic system security protection against, access
by unauthorized sources internal to the airplane. The design must
prevent inadvertent and malicious changes to, and all adverse impacts
upon, airplane equipment, systems, networks, or other assets required
for safe flight and operations.
    2. The applicant must establish appropriate procedures to enable
the operator to ensure that continued airworthiness of the aircraft is
maintained, including all post STC modifications that may have an
impact on the approved electronic system security safeguards.

Jeffrey E. Duven,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2013-27343 Filed 11-15-13; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: April 25, 2006 (Volume 71, Number 79)]
[Notices]
[Page 23911-23912]
[DOCID:fr25ap06-59]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP06-303-000]

Stingray Pipeline Company, L.L.C.; Notice of Proposed Changes in
FERC Gas Tariff

April 18, 2006.
    Take notice that on April 10, 2006, Stingray Pipeline Company,
L.L.C. (Stingray) tendered for filing as part of its FERC Gas Tariff,
Third Revised Volume No. 1, the following tariff sheets to become
effective May 10, 2006:

Ninth Revised Sheet No. 2
Fifth Revised Sheet No. 301
Original Sheet No. 301A
Third Revised Sheet No. 302
First Revised Sheet No. 302A
First Revised Sheet No. 302B
Original Sheet No. 302C
First Revised Sheet No. 304
Second Revised Sheet No. 305
First Revised Sheet No. 305A
First Revised Sheet No. 305B
Original Sheet No. 305C
Second Revised Sheet No. 314
Second Revised Sheet No. 316
First Revised Sheet No. 317
Original Sheet No. 318
Original Sheet No. 319
Original Sheet No. 320
Original Sheet No. 321
Original Sheet No. 322
Original Sheet No. 323
Original Sheet No. 324
Original Sheet No. 325
Original Sheet No. 326
Original Sheet No. 327
Original Sheet No. 328

    Any person desiring to intervene or to protest this filing 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). 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. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing an intervention or protest must serve a copy of that
document on the Applicant. Anyone filing an intervention or protest on
or before the intervention or protest date need not serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible online at http://www.ferc.gov, using the

``eLibrary'' link and is 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 docket(s). For assistance with any
FERC Online service, please e-mail<EMAIL_ADDRESS>or call
(866) 208-3676 (toll free). For TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-6170 Filed 4-24-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 244 (Friday, December 18, 2020)]
[Notices]
[Pages 82557-82560]
[FR Doc No: 2020-27841]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90660; File No. SR-MEMX-2020-15]

Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Amend the
Exchange's Fee Schedule

December 14, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 4, 2020, MEMX LLC (``MEMX'' or the ``Exchange'') filed
with the Securities and Exchange Commission (the ``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing with the Commission a proposed rule change
to amend the fee schedule applicable to Members \3\ pursuant to
Exchange Rules 15.1(a) and (c) in order to modify its pricing for
transactions in securities priced below $1.00 per share that are
executed on the Exchange. The text of the proposed rule change is
provided in Exhibit 5.
---------------------------------------------------------------------------

    \3\ See Exchange Rule 1.5(p).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

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

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

1. Purpose
    The Exchange proposes to modify its fee schedule to modify the fees
and rebates applicable to transactions in securities priced below $1.00
per share (``Sub-Dollar Securities'') that are executed on the
Exchange, effective as of December 4, 2020.
    The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 16 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues, to
which market participants may direct their order flow. Based on
publicly available information, no single registered equities exchange
currently has more than approximately 16% of the total market share of
executed volume of equities trading.\4\ Thus, in such a low-
concentrated and highly competitive market, no single equities exchange
possesses significant pricing power in the execution of order flow.
---------------------------------------------------------------------------

    \4\ Market share percentage calculated as of December 3, 2020.
The Exchange receives and processes data made available through
consolidated data feeds (i.e., CTS and UTDF).
---------------------------------------------------------------------------

    The Exchange recently adopted a proposal \5\ to charge a standard
fee of 0.30% of the total dollar value of any transaction in Sub-Dollar
Securities that removes liquidity from the Exchange (``Removed Sub-
Dollar Volume'').\6\ The Exchange also adopted pricing to provide a
standard rebate of 0.30% of the total dollar value of any transaction
in Sub-Dollar Securities that adds liquidity, displayed or non-
displayed, to the Exchange (``Added Sub-Dollar Volume'').\7\
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    \5\ See Securities Exchange Act Release No. 90555 (December 3,
2020) (SR-MEMX-2020-13) [sic].
    \6\ This pricing is referred to by the Exchange on the fee
schedule under the existing description ``Removed volume from MEMX
Book'' with a fee code of ``RB'' or ``RrB'', as applicable, assigned
by the Exchange.
    \7\ This pricing is referred to by the Exchange on the fee
schedule under ``Added displayed volume'', ``Added non-displayed
volume'' or ``Added displayed volume, Retail Order'', as applicable,
with a fee code of ``BB'', ``BrB'', ``DB'', ``DrB'', ``JB'',
``JrB'', ``HB'', ``HrB'', ``MB'' or ``MrB'', as applicable, assigned
by the Exchange.
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    The current rebate for executions of Added Sub-Dollar Volume was
adopted to increase order flow in Sub-Dollar Securities to the Exchange
by incentivizing Members to increase the liquidity-providing orders in
Sub-Dollar Securities they submit to the Exchange, which would support
price discovery on the Exchange and provide additional liquidity for
incoming orders. The current fee for executions of Removed Sub-Dollar
Volume, in turn, was intended to be a direct offset of the

rebate provided for Added Sub-Dollar Volume so that the Exchange could
remain revenue neutral with respect to such transactions while
attempting to compete with other venues to attract this order flow.
While the pricing adopted by the Exchange was successful in attracting
liquidity, based on activity that has occurred on the Exchange in the
first several days of such pricing, the Exchange believes that a rebate
of 0.30% of the total dollar value of any transaction might provide an
out-sized incentive to trade certain high-volume Sub-Dollar Securities,
particularly those with a lower bid-ask spread. Accordingly, the
Exchange is proposing to modify its rebate for Added Sub-Dollar Volume
to provide a rebate of 0.05% of the total dollar value of any
transaction. The Exchange still believes that providing a rebate is
important to attract displayed liquidity in Added Sub-Dollar Volume but
is reducing the amount of the rebate in order to further analyze the
optimal way to attract on-exchange order flow in Sub-Dollar Securities.
In connection with this change, the Exchange proposes to maintain a
revenue-neutral fee structure for executions in Sub-Dollar Securities,
and thus proposes to reduce the fee to for Removed Sub-Dollar Volume to
0.05% of the total dollar value of any transaction.
    The proposed pricing for Removed Sub-Dollar Volume and Added Sub-
Dollar Volume would only apply to transactions that are executed on the
Exchange, and as such there would continue to be no fee charged or
rebate provided for transactions in Sub-Dollar Securities that are
routed to and executed at another market center. The proposed rule
change does not include different fees or rebates for Sub-Dollar
Securities that depend on the amount of orders submitted to, and/or
transactions executed on or through, the Exchange. Accordingly, all
fees and rebates described above are applicable to all Members,
regardless of the overall volume of a Member's trading activities on
the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\8\ in general, and
furthers the objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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 and is not designed to unfairly
discriminate between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    As discussed above, the Exchange operates in a highly fragmented
and competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive or incentives to be insufficient, and the
Exchange represents only a small percentage of the overall market. The
Commission and the courts have repeatedly expressed their preference
for competition over regulatory intervention in determining prices,
products, and services in the securities markets. In Regulation NMS,
the Commission highlighted the importance of market forces in
determining prices and SRO revenues and also recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \10\
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    \10\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005).
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    The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow or discontinue to reduce use of certain categories of
products, in response to new or different pricing structures being
introduced into the market. Accordingly, competitive forces constrain
the Exchange's transaction fees and rebates, including with respect to
transactions in Sub-Dollar Securities, and market participants can
readily trade on competing venues if they deem pricing levels at those
other venues to be more favorable. The Exchange believes the proposed
rule change reflects a reasonable and competitive pricing structure
designed to incentivize market participants to direct order flow to the
Exchange, which the Exchange believes would enhance market quality to
the benefit of all Members and investors. The Exchange notes that the
proposal does not include different fees or rebates for transactions in
Sub-Dollar Securities depending on the amount of orders submitted to,
and/or transactions executed on or through, the Exchange. Accordingly,
the proposed pricing structure is applicable to all Members, regardless
of the overall volume of a Member's trading activities on the Exchange.
    The Exchange believes that the proposed changes with respect to
pricing for executions of transactions in Sub-Dollar Securities would
continue to incentivize submission of additional liquidity in Sub-
Dollar Securities to the Exchange through the proposed rebate of 0.05%
of the total dollar value of any Added Sub-Dollar Volume transactions,
thereby promoting price discovery and transparency, and enhancing order
execution opportunities for all Members. The Exchange believes that the
proposed rebate for Added Sub-Dollar Volume is reasonable because it
would continue to incentivize Members to direct order flow in Sub-
Dollar Securities to the Exchange. The Exchange notes that at least one
other exchange provides tiered rebates for liquidity-adding
transactions in Sub-Dollar Securities equal to and better than the
proposed rebate.\11\
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    \11\ See the NYSE Arca, Inc. (``NYSE Arca'') equities trading
fee schedule on its public website (available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf), which reflects a standard rebate of
$0.00004 per share for liquidity-adding transactions in securities
priced below $1.00 per share; the NYSE Arca equities trading fee
schedule also permits participants to qualify for tiered rebates
reflected as a percentage of the total dollar value of such
transactions enabling participants to receive a rebate of 0.05% of
the total dollar value per transaction (i.e., the same rebate
proposed by the Exchange) or higher rebates ranging from 0.10% to
0.15% of the total dollar value per transaction.
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    The Exchange also believes that the proposed fee for Removed Sub-
Dollar Volume is reasonable because it is in lower than \12\ or within
the range of \13\ fees charged by other exchanges for liquidity-
removing transactions in Sub-Dollar Securities. The Exchange believes
that, given the competitive environment in which the Exchange currently
operates, the proposed pricing structure,

with an offsetting fee and rebate with respect to executions of
transactions in Sub-Dollar Securities, is a reasonable attempt to
encourage liquidity in Sub-Dollar Securities on the Exchange while
remaining revenue neutral with respect to such transactions.
---------------------------------------------------------------------------

    \12\ See, e.g., the Cboe EDGX Exchange, Inc. equities trading
fee schedule on its public website (available at https://markets.cboe.com/us/equities/membership/fee_schedule/edgx/), which
reflects a fee of 0.30% of the total dollar value of the transaction
for liquidity-removing transactions in securities priced below $1.00
per share; the NYSE Arca equities trading fee schedule on its public
website (available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf), which reflects a fee of
0.295% of the total dollar value of the transaction for liquidity-
taking transactions in securities priced below $1.00 per share.
    \13\ See, e.g., the Cboe BYX Exchange, Inc. equities trading fee
schedule on its public website (available at https://markets.cboe.com/us/equities/membership/fee_schedule/byx/), which
reflects a fee of 0.10% of the total dollar value of the transaction
for liquidity-removing transactions in securities priced below $1.00
per share; the Cboe EDGA Exchange, Inc. equities trading fee
schedule on its public website (available at https://markets.cboe.com/us/equities/membership/fee_schedule/edga/), which
reflects no fee or rebate for liquidity-removing transactions in
securities priced below $1.00 per share; the NYSE National, Inc.
equities trading fee schedule on its public website (available at
https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf), which reflects no fee or rebate for
liquidity-removing transactions in securities priced below $1.00 per
share.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed fee and rebate
structure applicable to executions of transactions in Sub-Dollar
Securities is equitably allocated and not unfairly discriminatory
because it applies equally to all Members and is reasonably related to
the value of the Exchange's market quality associated with higher
volume. A number of Members currently transact in Sub-Dollar Securities
and they, along with additional Members that choose to direct order
flow in Sub-Dollar Securities to the Exchange, would all qualify for
the proposed fee and rebate. The Exchange still believes that providing
a rebate is important to attract displayed liquidity in Added Sub-
Dollar Volume but is reducing the amount of the rebate in order to
further analyze the optimal way to attract on-exchange order flow in
Sub-Dollar Securities. The Exchange believes that maintaining
competitive pricing for transactions in Sub-Dollar Securities would
benefit all investors by deepening the Exchange's liquidity pool, which
would support price discovery, promote market transparency and improve
investor protection, further rendering the proposed changes reasonable
and equitable.
    In conclusion, the Exchange also submits that its proposed fee
structure satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of
the Act for the reasons discussed above in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
its Members and other persons using its facilities and is not designed
to unfairly discriminate between customers, issuers, brokers, or
dealers. As described more fully below in the Exchange's statement
regarding the burden on competition, the Exchange believes that its
transaction pricing, including with respect to transactions in Sub-
Dollar Securities, is subject to significant competitive forces, and
that the proposed fees and rebates described herein are appropriate to
address such forces.

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

    The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Instead, as
discussed above, the Exchange believes that the proposed change would
encourage the continued submission of orders in Sub-Dollar Securities
to the Exchange, thereby promoting market depth, enhanced execution
opportunities, as well as price discovery and transparency for all
Members. Furthermore, the Exchange believes that the proposed changes
would allow the Exchange to continue to compete with other execution
venues by providing competitive pricing for transactions in Sub-Dollar
Securities, thereby making it a desirable destination venue for its
customers. As a result, the Exchange believes that the proposed change
furthers the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.'' \14\
---------------------------------------------------------------------------

    \14\ See supra note 10.
---------------------------------------------------------------------------

Intramarket Competition
    The Exchange believes that the proposed changes would continue to
incentivize market participants to direct order flow to the Exchange.
Greater liquidity benefits all Members by providing more trading
opportunities and encourages Members to send orders to the Exchange,
thereby contributing to robust levels of liquidity, which benefits all
Members. The proposed fees and rebates for transactions in Sub-Dollar
Securities would be available to all market participants, and, as such,
the proposed change would not impose a disparate burden on competition
among market participants on the Exchange. As such, the Exchange
believes the proposed changes would not impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
Intermarket Competition
    The Exchange operates in a highly competitive market. Members have
numerous alternative venues that they may participate on and direct
their order flow to, including 15 other equities exchanges and numerous
alternative trading systems and other off-exchange venues. As noted
above, no single registered equities exchange currently has more than
approximately 16% of the total market share of executed volume of
equities trading. Thus, in such a low-concentrated and highly
competitive market, no single equities exchange possesses significant
pricing power in the execution of order flow. Moreover, the Exchange
believes that the ever-shifting market share among the exchanges from
month to month demonstrates that market participants can shift order
flow or discontinue to reduce use of certain categories of products, in
response to new or different pricing structures being introduced into
the market. Accordingly, competitive forces constrain the Exchange's
transaction fees and rebates, including with respect to transactions in
Sub-Dollar Securities, and market participants can readily choose to
send their orders to other exchange and off-exchange venues if they
deem fee levels at those other venues to be more favorable. As
described above, the proposed changes are competitive proposals through
which the Exchange is seeking to encourage certain order flow to be
sent to the Exchange.
    Additionally, the Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \15\ The fact
that this market is competitive has also long been recognized by the
courts. In NetCoalition v. SEC, the D.C. Circuit stated as follows:
``[n]o one disputes that competition for order flow is `fierce.' . . .
As the SEC explained, `[i]n the U.S. national market system, buyers and
sellers of securities, and the broker-dealers that act as their order-
routing agents, have a wide range of choices of where to route orders
for execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . ..''.\16\ Accordingly, the Exchange does not believe its
proposed fee change imposes any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \15\ See supra note 10.
    \16\ NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSE-2006-21)).

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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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \17\ and Rule 19b-4(f)(2) \18\ thereunder.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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 shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number
    SR-MEMX-2020-15 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-MEMX-2020-15. 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-MEMX-2020-15 and should be submitted on
or before January 8, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-27841 Filed 12-17-20; 8:45 am]
BILLING CODE 8011-01-P