[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Proposed Rules]
[Pages 33576-33579]
[FR Doc No: 2021-13463]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0502; Project Identifier 2018-CE-043-AD]
RIN 2120-AA64

Airworthiness Directives; B-N Group Ltd. Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain B-N Group Ltd. Models BN-2, BN-2A, BN-2A-2, BN-2A-3, BN-2A-
6, BN-2A-8, BN-2A-9, BN-2A-20, BN-2A-21, BN-2A-26, BN-2A-27, BN-2B-20,
BN-2B-21, BN-2B-26, BN-2B-27, BN-2T, and BN-2T-4R airplanes. This
proposed AD results from mandatory continuing airworthiness information
(MCAI) originated by an aviation authority of another country to
identify and correct an unsafe condition on an aviation product. The
MCAI identifies the unsafe condition as failure of the rudder final
drive rod because of cracks in the region of the taper pins. This
proposed AD would require repetitively inspecting the rudder final
drive rod assembly and replacing the rudder final drive assembly, if
necessary. The FAA is proposing this AD to address the unsafe condition
on these products.

DATES: The FAA must receive comments on this proposed AD by August 9,
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 NPRM, contact Britten-
Norman Aircraft Limited, Commodore House, Mountbatten Business Centre,
Millbrook Road East, Southampton SO15 1HY, United Kingdom; phone: +44
20 3371 4000; fax: +44 20 3371 4001; email<EMAIL_ADDRESS>
website: https://britten-norman.com/approvals-technical-publications/.
You may view this service information at the FAA, Airworthiness
Products Section, Operational Safety Branch, 901 Locust, Kansas City,
MO 64106. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2021-0502; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this NPRM, any comments
received, and other information. The street address for Docket
Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Penelope Trease, Aviation Safety
Engineer, General Aviation & Rotorcraft Section, International
Validation Branch, FAA, 26805 E 68th Avenue, Denver, CO 80249; phone:
(303) 342-1094; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2021-0502; Project Identifier
2018-CE-043-AD'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, 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 proposal 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 NPRM.

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 NPRM 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 NPRM, 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 NPRM. Submissions containing CBI should be sent to
Penelope Trease, Aviation Safety Engineer, General Aviation &
Rotorcraft Section, International Validation Branch, FAA, 26805 E 68th
Avenue, Denver, CO 80249. Any commentary that the FAA receives which is
not specifically designated as CBI will be placed in the public docket
for this rulemaking.

Background

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA AD
2018-0153, dated July 19, 2018 (referred to after this as ``the
MCAI''), to correct an unsafe condition for B-N Group Ltd. (Britten-
Norman Aircraft Ltd., or ``BNA'') Models BN-2, BN-2A, BN-2B, BN-2T, BN-
2T-2, BN-2T-2R, and BN-2T-4R airplanes. The MCAI states:

    Occurrences have been reported of failures of the rudder final
drive rod, [part number] P/N NB-45-0991. Cracks were found in the
region of the taper pins. There is evidence that replacing the taper
pins could be a significant factor contributing to the failure of
this rod.
    This condition, if not detected and corrected, could lead to
failure of the affected part, possibly resulting in reduced control
of the aeroplane.
    To address this potential unsafe condition, BNA issued the
applicable SB [service bulletin], providing inspection instructions.
Prompted by operator comments, BNA revised the applicable SB (issue
3) to introduce repetitive inspections.
    For the reason described above, this [EASA] AD requires
repetitive inspections of the affected part and, depending on
findings, replacement. This AD also prohibits replacement of taper
pins on an affected part. BNA will amend the applicable Maintenance
Manuals accordingly.

    You may examine the MCAI in the AD docket at https://www.regulations.gov by searching for and locating Docket No. FAA-2021-
0502.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Britten-Norman Aircraft Limited Service Bulletin
Number SB 363, Issue 3, dated May 23, 2018, and Service Bulletin Number
SB 364, Issue 3, dated May 23, 2018. For the applicable airplane models
identified on each document, this service information contains
procedures for repetitively inspecting the rudder final drive rod
assembly and replacing the rudder final drive assembly, if necessary.
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 ADDRESSES.

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
our bilateral agreement with this State of Design Authority, it has
notified the FAA of the unsafe condition described in the MCAI and
service information referenced above. The FAA is issuing this NPRM
after determining the unsafe condition described previously is likely
to exist or develop on other products of the same type design.

Proposed AD Requirements in This NPRM

    This AD requires accomplishing the actions specified in the service
information already described.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 76 airplanes of U.S. registry. The FAA also estimates that
inspecting the rudder final drive assembly would take about 1 work-hour
at the average labor rate of $85 per work-hour.
    Based on these figures, the FAA estimates the cost of this proposed
AD on U.S. operators to be $6,460, or $85 per product, each inspection
cycle.
    In addition, the FAA estimates that any necessary follow-on actions
to replace the rudder final drive assembly would take about 5 work-
hours and require parts costing $1,200, for a cost of $1,625 per
product. The FAA has no way of determining the number of airplanes that
may need these actions.

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 proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 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:

B-N Group Ltd.: Docket No. FAA-2021-0502; Project Identifier 2018-
CE-043-AD.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by August 9, 2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to B-N Group Ltd. Models BN-2, BN-2A, BN-2A-2,
BN-2A-3, BN-2A-6, BN-2A-8, BN-2A-9, BN-2A-20, BN-2A-21, BN-2A-26,
BN-2A-27, BN-2B-20, BN-2B-21, BN-2B-26, BN-2B-27, BN-2T, and BN-2T-
4R airplanes, all serial numbers, certificated in any category, with
a rudder final drive rod part number (P/N) NB-45-0991 installed.

(d) Subject

    Joint Aircraft System Component (JASC) Code 2720, Rudder Control
System.

(e) Unsafe Condition

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) originated by an aviation authority of another
country to identify and correct an unsafe condition on an aviation
product. The MCAI describes the unsafe condition as failure of the
rudder final drive rod because of cracks in the region of the taper
pins. The FAA is issuing this AD to detect and correct defects on
the rudder final drive rod assembly to prevent failure of the
assembly. The unsafe condition, if not addressed, could result in
loss of rudder control and reduced airplane control.

(f) Compliance

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

(g) Inspection and Corrective Action

    (1) Inspect the rudder final drive rod assembly for loose taper
pins, loose end connections, bending, and cracks within the
applicable compliance times for your airplane specified in paragraph
(g)(1)(i) or (ii) of this AD.
    (i) For Models BN-2, BN-2A, BN-2A-2, BN-2A-3, BN-2A-6, BN-2A-8,
BN-2A-9, BN-2A-20, BN-2A-21, BN-2A-26, BN-2A-27, BN-2B-20, BN-2B-21,
BN-2B-26, and BN-2B-27 airplanes, within 100 hours time-in-service
(TIS) after the effective date of this AD and thereafter at
intervals not to exceed 1,000 hours TIS.
    (ii) For Models BN-2T and BN-2T-4R airplanes, within 200 hours
TIS after the effective date of this AD and thereafter at intervals
not to exceed 1,000 hours TIS.
    (2) If a loose taper pin, a loose end connection, any bending,
or a crack is found during any inspection required by paragraph
(g)(1) of this AD, before further flight, replace the rudder final
drive rod assembly by following section 7, Removal and Installation
Instructions for Unserviceable Units, of Britten-Norman Service
Bulletin Number SB 363, Issue 3, dated May 23, 2018 (SB 363, Issue
3) or Britten-Norman Service Bulletin Number SB 364, Issue 3, dated
May 23, 2018 (SB 364, Issue 3), as applicable to your model
airplane.
    (3) If no loose taper pins, no loose end connections, no
bending, and no cracks are found during the initial inspection
required by paragraph (g)(1) of this AD, review the airplane
maintenance records to determine whether any taper pins have been
replaced or reworked on the rudder final drive rod assembly.
    (4) If a taper pin has ever been replaced or reworked, without
exceeding the initial compliance time in paragraph (g)(1)(i) or (ii)
of this AD, replace the rudder final drive rod assembly by following
section 7, Removal and Installation Instructions for Unserviceable
Units, of SB 363, Issue 3 or SB 364, Issue 3, as applicable to your
model airplane.
    (5) As of the effective date of this AD, do not install a rudder
final drive rod assembly P/N NB-45-0991 on any airplane unless:
    (i) The rudder final drive rod assembly is unused (zero hours
TIS); or
    (ii) The taper pins in the rudder final drive rod assembly have
never been replaced.
    (6) As of the effective date of this AD, do not replace any
taper pin on a rudder final drive rod assembly P/N NB-45-0991
installed on any airplane.

(h) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, International Validation 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 principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the manager of the certification office, send it to the
attention of the person identified in Related Information or email:
<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(i) Related Information

    (1) For more information about this AD, contact Penelope Trease,
Aviation Safety Engineer, General Aviation & Rotorcraft Section,
International Validation Branch, FAA, 26805 E 68th Avenue, Denver,
CO 80249; phone:<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) Refer to European Aviation Safety Agency (EASA) AD 2018-
0153, dated July 19, 2018, for more information. You may examine the
EASA AD in the AD docket at https://www.regulations.gov by searching
for and locating it in Docket No. FAA-2021-0502.
    (3) For service information identified in this AD, contact
Britten-Norman Aircraft Limited, Commodore House, Mountbatten
Business Centre, Millbrook Road East, Southampton SO15 1HY, United
Kingdom; phone: +44 20 3371 4000; fax: +44 20 3371 4001; email:
<EMAIL_ADDRESS>website: https://britten-norman.com/approvals-technical-publications/. You may review this referenced service
information at the FAA, Airworthiness Products Section, Operational
Safety Branch, 901 Locust, Kansas City, MO

64106. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>.

    Issued on June 11, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-13463 Filed 6-24-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 169 (Friday, August 30, 2013)]
[Notices]
[Pages 53797-53799]
[FR Doc No: 2013-21230]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70258; File No. SR-BX-2013-050]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Change
the Expiration Date For Most Option Contracts to the Third Friday of
the Expiration Month Instead of the Saturday Following the Third Friday

August 26, 2013.
    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 August 21, 2013, NASDAQ OMX PHLX LLC (``BX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The 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 Exchange rules to change the
expiration date for most option contracts to the third Friday of the
expiration month instead of the Saturday following the third Friday.
The text of the proposed rule change is available at http://nasdaqomxbx.cchwallstreet.com/, at the Exchange's principal office, 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 Exchange is proposing to change the expiration date for most
option contracts to the third Friday of the expiration month instead of
the Saturday following the third Friday. More specifically, the
Exchange is proposing to amend rule text referencing Saturday
expirations. The Exchange notes, however, that this change will apply
to all standard expiration contracts including those in which the rules
are silent on the expiration date. The Exchange is making this filing
to harmonize its rules in connection with a recently approved rule
filing made by The Options Clearing Corporation (``OCC'') which made
substantially similar changes.\3\ The Exchange believes that the
industry must remain consistent in expiration dates, and, thus, is
proposing to update its rules to remain consistent with those of OCC.
In addition, the Exchange understands that other exchanges have and
will be filing similar rules to effect this industry-wide
initiative.\4\
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    \3\ See Securities Exchange Act Release No. 34-69772 (June 17,
2013), 78 FR 37645 (June 21, 2013) (order approving SR-OCC-2013-
004).
    \4\ See Securities Exchange Act Release Nos. 70091 (August 1,
2013), 78 FR 48212 (August 7, 2013) (SR-CBOE-2013-073) and 69996
(July 17, 2013), 78 FR 44183 (July 23, 2013) (SR-MIAX-2013-32).
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    Most option contracts (``standard expiration contracts'') currently
expire at the ``expiration time'' (11:59 p.m. Eastern Time) on the
Saturday following the third Friday of the specified expiration month
(the ``expiration date'').\5\ With this filing, the Exchange is
proposing to give advance notice to its members and member
organizations that the expiration date for standard expiration
contracts is changing to the third Friday of the expiration month.\6\
(The expiration time would continue to be 11:59 p.m. Eastern Time on
the expiration date.) The change would apply only to standard
expiration contracts expiring after February 1, 2015, and the Exchange,
similar to OCC, does not propose to change the expiration date for any
outstanding option contracts. The change will apply only to series of
option contracts opened for trading after the effective date of the OCC
rule change and having expiration dates later than February 1, 2015.
Option contracts having non-standard expiration dates (``non-standard
expiration contracts'') will be unaffected by this proposed rule
change, except that FLEX options having expiration dates later than
February 1, 2015 cannot expire on a Saturday unless they are specified
by OCC as grandfathered.\7\
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    \5\ Examples of options with non-standard expiration contracts
include: Quarterly Equity and Exchange-Traded Fund Shares (``ETFs'')
Option Series (Chapter IV, Section 6, Commentary .04), Quarterly
Options Series for indexes (Chapter XIV, Section 11(g)), Short Term
Option Series (Chapter IV, Section 6, Commentary .07) and Short Term
Option Series for indexes (Chapter XIV, Section 11(h)).
    \6\ The Exchange will provide notice to members and member
organizations regarding the anticipated change by issuing an Options
Trader Alert.
    \7\ See note 5 supra.
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    In order to provide a smooth transition to the Friday expiration
OCC has begun to move the expiration exercise procedures to Friday for
all standard expiration contracts even though the contracts would
continue to expire on Saturday.\8\ After February 1, 2015, virtually
all standard expiration contracts will actually expire on Friday. The
only standard expiration contracts that will expire on a Saturday after
February 1, 2015 are certain options that were listed prior to the
effectiveness of the OCC rule change, and a limited number of options
that may be listed prior to necessary systems changes of the options
exchanges, which are expected to be completed in August 2013. After
these systems changes are made, BX will not list any additional options
with Saturday expiration dates falling after February 1, 2015. BX
understands that the other exchanges are committed to the same listing
schedule.\9\
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    \8\ See SR-OCC-2013-04.
    \9\ See note 4 supra.
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    The Exchange notes that OCC, industry groups, clearing members and
the other exchanges have been active participants in planning for the
transition to the Friday expiration.\10\ In March 2012, OCC began to
discuss moving standard contract expirations to Friday expiration dates
with industry groups, including two Securities Industry and Financial
Markets Association (``SIFMA'') committees, the Operations and
Technology Steering Committee and the Options Committee, and at two
major industry conferences, the SIFMA Operations Conference and the
Options Industry Conference.\11\ OCC also discussed the project with
the Intermarket Surveillance Group and at an OCC Operations Roundtable.
In each case, there was broad support for the initiative.\12\
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    \10\ See note 8 supra.
    \11\ Id.
    \12\ Id.
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    Certain option contracts have already been listed with Saturday
expiration dates as distant as December 2015

(which is the furthest out expiration as of the date of this filing).
Additionally, until BX completes certain systems enhancements in August
2013, it remains possible that additional option contracts may be
listed with Saturday expiration dates beyond February 1, 2015. For
these contracts, transitioning to a Friday expiration for newly listed
option contracts expiring after February 1, 2015 would create a
situation under which certain options with open interest would expire
on a Saturday while other options with open interest would expire on a
Friday in the same expiration month.
    Clearing members have expressed a clear preference to not have a
mix of options with open interest that expire on different days in a
single month.\13\ Accordingly, OCC represented in its recently approved
filing that it will not issue and clear any new option contract with a
Friday expiration if existing option contracts of the same options
class expire on the Saturday following the third Friday of the same
month. However, Friday expiration processing will be in effect for
these Saturday expiration contracts. As with standard expiration
options during the transition period, exercise requests received after
Friday expiration processing is complete but before the Saturday
contract expiration time will continue to be processed without fines or
penalties.
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    \13\ Id.
---------------------------------------------------------------------------

    Thus, the Exchange is proposing to update its rules to reflect the
above discussed change. More specifically, the Exchange is proposing to
add Section 2(p) to Chapter XIV, Index Rules to define ``expiration
date'' to be consistent with the revised OCC definition.\14\ Thus,
consistent with the OCC filing, the Exchange is proposing to add
language to these rules stating that any series expiring prior to
February 1, 2015 will have a Saturday expiration date while any series
expiring on or after February 1, 2015 will have a Friday expiration
date.\15\
---------------------------------------------------------------------------

    \14\ Id.
    \15\ With the exception of expirations that were listed prior to
the effective date of the OCC filing and have open interest.
---------------------------------------------------------------------------

    The Exchange also is proposing to adopt changes to Chapter XIV,
Index Rules, Sections 11(a)(5) and 11(d) for consistency to reflect the
change in the expiration date definition. To the extent applicable to
the timeframes herein, the Exchange is also proposing, with this
filing, to replace any reference in the purpose section of any past
Exchange rule filings or alerts to any expiration date other than
Friday for a standard options contract with the new Friday standard.
Essentially, the Exchange is now proposing to replace any relevant
historic references to expiration dates to be replaced with the
proposed Friday expiration. As stated above, the Exchange believes the
proposed change will keep the Exchange consistent with the processing
at OCC and will enable the Exchange to give effect to the industry-wide
initiative. In addition, the Exchange understands that other exchanges
will be filing similar rules, thus creating a uniform expiration date
for standard options on listed classes.\16\
---------------------------------------------------------------------------

    \16\ See note 4 supra.
---------------------------------------------------------------------------

    The Exchange plans to release an Options Trader Alert to its
members and member organizations to inform them of this change prior to
the implementation of the rule.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\17\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \18\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \19\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
    \19\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that keeping its rules
consistent with those of the industry will protect all participants in
the market by eliminating confusion. The proposed changes thus allow
for a more orderly market by allowing all options markets, including
the clearing agencies, to have the same expiration date for standard
options.
    In addition, the proposed changes will foster cooperation and
coordination with persons engaged in regulating clearing, settling,
processing information with respect to, and facilitating transactions
in securities by aligning a pivotal part of the options processing to
be consistent industry wide. If the industry were to differ, investors
would suffer from confusion and be more vulnerable to violate different
exchange rules. The proposed changes do not permit unfair
discrimination between any members because they are applied to all
members equally. In the alternative, the Exchange believes that it
helps all members by keeping the Exchange consistent with OCC practices
and those of other Exchanges.

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

    BX 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, as amended. Specifically, the
Exchange does not believe the proposed rule change will impose a burden
on intramarket competition because it will be applied to all members
equally. In addition, the Exchange does not believe the proposed rule
change will impose any burden to intermarket competition because it
will be applied industry wide and apply to all market participants. The
proposed rule change is structured to enhance competition because the
shift from an expiration date of the Saturday following the third
Friday to the third Friday is anticipated to be adopted industry-wide
and will apply to all multiply listed classes. This in turn will allow
BX to compete more effectively with other exchanges making similar rule
changes.

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

    Written comments were neither solicited nor received. The Exchange
notes, however, that a favorable comment was submitted to the OCC
filing.

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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A)

of the Act \20\ and Rule 19b-4(f)(6) \21\ thereunder.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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 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-BX-2013-050 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-BX-2013-050. 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 publicly available. All
submissions should refer to File Number SR-BX-2013-050 and should be
submitted on or before September 20, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-21230 Filed 8-29-13; 8:45 am]
BILLING CODE 8011-01-P