[Federal Register: September 29, 2009 (Volume 74, Number 187)]
[Rules and Regulations]
[Page 49803-49805]
[DOCID:fr29se09-6]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0881; Directorate Identifier 2009-CE-050-AD;
Amendment 39-16027; AD 2009-20-04]
RIN 2120-AA64

Airworthiness Directives; Glaser-Dirks Flugzeugbau GmbH Model DG-
100 Gliders

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: We are adopting a new airworthiness directive (AD) for the
products listed above. This AD results from mandatory continuing
airworthiness information (MCAI) issued by the aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as:

    The Elevator control bearing stand RU19 was required to be
inspected for correct production in 1978 in accordance with
Technical Note (TN) No.301/6. In 2009, an accident occurred with a
DG-100. The suspension bolt was found torn out of the bearing stand
making the elevator uncontrollable. The investigation confirmed that
the bearing stand had not been produced correctly. It is therefore
assumed that the inspections per TN 301/6 did not produce reliable
results.

This AD requires actions that are intended to address the unsafe
condition described in the MCAI.

DATES: This AD becomes effective October 19, 2009.
    On October 19, 2009 the Director of the Federal Register approved
the incorporation by reference of certain publications listed in this
AD.
    We must receive comments on this AD by November 13, 2009.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
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: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.

Examining the AD Docket

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

FOR FURTHER INFORMATION CONTACT: Greg Davison, Glider Program Manager,
FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City,
Missouri 64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued
Emergency AD No.: 2009-0163-E, dated July 29, 2009 (referred to after
this as ``the MCAI''), to correct an unsafe condition for the specified
products. The MCAI states:

    The Elevator control bearing stand RU19 was required to be
inspected for correct production in 1978 in accordance with
Technical Note (TN) No.301/6. In 2009, an accident occurred with a
DG-100. The suspension bolt was found torn out of the bearing stand
making the elevator uncontrollable. The investigation confirmed that
the bearing stand had not been produced correctly. It is therefore
assumed that the inspections per TN 301/6 did not produce reliable
results.
    As a consequence, this new Airworthiness Directive (AD) mandates
replacement of the bearing stand with a reinforced version.

You may obtain further information by examining the MCAI in the AD
docket.

Relevant Service Information

    DG Flugzeugbau GmbH has issued Technical note No. 301/26 Rev. 1,
dated August 4, 2009. The actions described in this service information
are intended to correct the unsafe condition identified in the MCAI.

FAA's Determination and Requirements of the AD

    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, they
have notified us of the unsafe condition described in the MCAI and
service information referenced above. We are issuing this AD because we
evaluated all information provided by the State of Design Authority and
determined the unsafe condition exists and is likely to exist or
develop on other products of the same type design.

Differences Between This AD and the MCAI or Service Information

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

FAA's Determination of the Effective Date

    An unsafe condition exists that requires the immediate adoption of
this AD. The FAA has found that the risk to the flying public justifies
waiving notice and comment prior to adoption of this rule because a
recent accident occurred with a Glaser-Dirks Flugzeugbau GmbH Model DG-
100 Glider where the suspension bolt was found torn out of the bearing
stand. The investigation confirmed that the bearing stand had not been
produced correctly. On December 18, 1997, the FAA issued Special
Airworthiness Information Bulletin (SAIB) No. ACE-98-19 that
recommended an inspection of the elevator control bearing stand RU19
following DG Flugzeugbau Technical note No. 301/6. We have determined
that the SAIB recommended inspection was either not done or did not
produce reliable results. As a consequence, this AD requires an
immediate inspection of the bearing stand. Therefore, we determined
that notice and opportunity for public comment before issuing this AD
are impracticable and that good cause exists for making this amendment
effective in fewer than 30 days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not precede it by notice and opportunity for public
comment. We invite you to send any written relevant data, views, or
arguments about this AD. Send your comments to an address listed under
the ADDRESSES section. Include ``Docket No. FAA-2009-0881; Directorate
Identifier 2009-CE-050-AD'' at the beginning of your comments. We
specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this AD. We will consider all
comments received by the closing date and may amend this AD because of
those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this AD.

Authority for This Rulemaking

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

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979); and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new AD:

2009-20-04 Glaser-Dirks Flugzeugbau Gmbh: Amendment 39-16027; Docket
No. FAA-2009-0881; Directorate Identifier 2009-CE-050-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective October
19, 2009.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Model DG-100 gliders, serial numbers 5
and 21 through 103, certificated in any category.

Subject

    (d) Air Transport Association of America (ATA) Code 27: Flight
Controls.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:

    The Elevator control bearing stand RU19 was required to be
inspected for correct production in 1978 in accordance with
Technical Note (TN) No. 301/6. In 2009, an accident occurred with a
DG-100. The suspension bolt was found torn out of the bearing stand
making the elevator uncontrollable. The investigation confirmed that
the bearing stand had not been produced correctly. It is therefore
assumed that the inspections per TN 301/6 did not produce reliable
results.
    As a consequence, this new Airworthiness Directive (AD) mandates
replacement of the bearing stand with a reinforced version.

Actions and Compliance

    (f) Unless already done, do the following actions.
    (1) Before further flight after October 19, 2009 (the effective
date of this AD), inspect the bearing stand RU19 following paragraph
1 of the Instructions section of DG Flugzeugbau Technical note No.
301/26, Rev. 1, dated August 4, 2009. You may take credit for this
paragraph if the bearing stand was inspected before October 19, 2009
(the effective date of this AD) following DG Flugzeugbau Technical
note No. 301/26, dated July 16, 2009.
    (2) If any discrepancy is found (crack, delamination, etc.),
before further flight replace the bearing stand RU19 following
paragraph 3 of the Instructions section of DG Flugzeugbau Technical
note No. 301/26, Rev. 1, dated August 4, 2009.
    (3) Within 3 months after October 19, 2009 (the effective date
of this AD) replace the bearing stand RU19 following paragraph 3 of
the Instructions section of DG Flugzeugbau Technical note No. 301/
26, Rev. 1, dated August 4, 2009. You may take credit for this
paragraph if the bearing stand RU19 has been replaced before October
19, 2009 (the effective date of this AD) following DG Flugzeugbau
Technical note No. 301/6, dated May 29, 1978, or following paragraph
3 of the Instructions section of DG Flugzeugbau Technical note No.
301/26, dated July 16, 2009.

FAA AD Differences

    Note: This AD differs from the MCAI and/or service information
as follows:
    (1) DG Flugzeugbau GmbH Technical Note No. 301/26, Rev. 1, dated
August 4, 2009, states that instruction 1 may be executed by the
pilot/owner. By FAA regulations, this AD requires all affected
gliders to have the required actions done by an appropriately rated
mechanic.
    (2) The MCAI states to do the actions following DG Flugzeugbau
GmbH Technical Note No. 301/26, dated July 16, 2009. DG Flugzeugbau
GmbH updated the technical note after the MCAI was issued. We are
requiring you use the updated technical note (DG Flugzeugbau GmbH
Technical Note No. 301/26, Rev. 1, dated August 4, 2009) to do the
actions of this AD, unless the AD specifies otherwise.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Standards Office, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. Send
information to ATTN: Greg Davison, Glider Program Manager, FAA,
Small Airplane Directorate, 901 Locust, Room 301, Kansas City,
Missouri 64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your appropriate principal inspector (PI) in the FAA
Flight Standards District Office (FSDO), or lacking a PI, your local
FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act (44
U.S.C. 3501 et.seq.), the Office of Management and Budget (OMB) has
approved the information collection requirements and has assigned
OMB Control Number 2120-0056.

Related Information

    (h) Refer to MCAI European Aviation Safety Agency (EASA)
Emergency AD No.: 2009-0163-E, dated July 29, 2009, DG Flugzeugbau
GmbH Technical Note No. 301/26, dated July 16, 2009; DG Flugzeugbau
GmbH Technical Note No. 301/26, Rev. 1, dated August 4, 2009; and DG
Flugzeugbau Technical note No. 301/6, dated May 29, 1978, for
related information.

Material Incorporated by Reference

    (i) You must use DG Flugzeugbau GmbH Technical Note No. 301/26,
Rev. 1, dated August 4, 2009, to do the actions required by this AD,
unless the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact DG
Flugzeugbau GmbH, Otto-Lilienthal-Weg 2, 76646 Bruchsal, Federal
Republic of Germany; telephone: + 49 (0) 7251 3020140; Fax: +49 (0)
7251 3020149; Internet: http://www.dg-flugzeugbau.de/index-e.html;
E-Mail<EMAIL_ADDRESS>    (3) You may review copies of the service information
incorporated by reference for this AD at the FAA, Central Region,
Office of the Regional Counsel, 901 Locust, Kansas City, Missouri
64106. For information on the availability of this material at the
Central Region, call<PHONE_NUMBER>.
    (4) You may also review copies of the service information
incorporated by reference for this AD at the National Archives and
Records Administration (NARA). For information on the availability
of this material at NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html.

    Issued in Kansas City, Missouri, on September 17, 2009.
Kim Smith,
Manager, Small Airplane Directorate, Aircraft Certification Service.
[FR Doc. E9-23047 Filed 9-28-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register: November 9, 2010 (Volume 75, Number 216)]
[Notices]
[Page 68842-68844]
[DOCID:fr09no10-95]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63235; File No. SR-CBOE-2010-099]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to Short Sell Order Handling

November 3, 2010.
    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 October 26, 2010, the Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and
Exchange Commission (the ``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange has designated the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is proposing to amend CBOE Stock Exchange, LLC's
(``CBSX,'' the CBOE's stock trading facility) rules to describe the
manner in which the CBSX System \5\ will handle short sell orders in
relation to Rule 201 of Regulation SHO,\6\ and CBOE's rules to include
order marking requirements for stock-option orders. The text of the
proposed rule change is available on the Exchange's Web site (http://
www.cboe.org/Legal ), at the Exchange's Office of the Secretary and at
the Commission.
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    \5\ The ``CBSX System'' means the electronic system which
performs the functions set out in the CBSX rules including
controlling, monitoring, and recording trading by CBSX Traders
through CBSX Workstations and trading between CBSX Traders. See Rule
50.1(a). A ``CBSX Trader'' means an individual who or organization
which has the right to trade on CBSX. See Rules 50.1(f) and 50.3. A
``CBSX Workstation'' means a computer connected to CBSX for the
purposes of trading pursuant to the CBSX rules. See Rule 50.1(d).
    \6\ 17 CFR 242.201. See Securities Exchange Act Release No.
61595 (February 26, 2010), 75 FR 11232 (March 10, 2010). In
connection with the adoption of Rule 201, Rule 200(g) of Regulation
SHO, 17 CFR 242.200(g), was amended to include a ``short exempt''
marking requirement. The amendments to Rule 201 and Rule 200(g) have
a compliance date of November 10, 2010.
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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 those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.

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

1. Purpose
    Rule 201 of Regulation SHO under the Act \7\ sets forth a short
sale-related circuit breaker that, if triggered, will impose a
restriction on the prices at which NMS stocks \8\ may be sold short. In
anticipation of the upcoming November 10, 2010 compliance date for Rule
201,\9\ the Exchange is proposing to amend CBSX's rules to describe the
manner in which the CBSX System will handle short sell orders when a
circuit breaker is triggered under Rule 201 of Regulation SHO.
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    \7\ Id.
    \8\ 17 CFR 242.201(a)(1).
    \9\ See supra note 6.
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    In particular, the Exchange is proposing to adopt Interpretation
and Policy .02 to its Rule 51.8, Types of Orders Handled, to provide
that orders in equity securities that are submitted to the CBSX System
must be marked ``long,'' ``short,'' or ``short exempt'' in compliance
with Regulation SHO.\10\ The Interpretation and Policy will also
provide that, if a short sale-related circuit breaker is triggered
under Regulation SHO, orders marked ``short'' will be handled by the
CBSX System as follows: First, short sell orders that are resting in
the CBSX Book \11\ at the time a circuit breaker is triggered will be
permitted to continue resting and/or execute. The Exchange believes
this handling of resting short sell orders is consistent with Rule 201
because resting orders by definition are priced above the National Best
Bid.\12\ Second, short sell orders that are received by the CBSX System
after the time a circuit breaker is triggered that are priced above the
National Best Bid will be permitted to rest and/or execute. The
Exchange believes this handling of incoming short sell orders is
consistent with Rule 201 because the orders are priced above the
National Best Bid.\13\ Third, short sell orders that are received by
the CBSX System after the time a circuit breaker is triggered that are
priced at or below

the National Best Bid will be rejected/cancelled by the CBSX System.
The Exchange believes this handling of incoming short sell orders is
consistent with Rule 201 because the orders are not priced above the
National Best Bid.\14\
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    \10\ 17 CFR 242.200(g).
    \11\ The ``CBSX Book'' means all unexecuted orders currently
held by the CBSX System. See Rule 50.1(c). The Exchange notes that
additional size cannot be added to an order resting in the CBSX
Book. The Exchange also notes that it currently does not make
available any resting order types that are to be completely un-
displayed in the CBSX Book. To the extent the Exchange may determine
to make available such an un-displayed resting order type, it would
be subject to a rule filing submitted pursuant to Section 19(b) of
the Act, 15 U.S.C. 78s(b).
    \12\ 17 CFR 242.201(b)(1).
    \13\ Id.
    \14\ Id.
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    The Exchange notes that, under these procedures, a reserve sell
order \15\ that is marked ``short'' will be handled the same as any
other sell order marked ``short.'' Thus, an incoming reserve sell order
that is received by the CBSX System after the time a circuit breaker is
triggered that is marked ``short'' and that is priced at or below the
National Best Bid will be rejected/cancelled by the CBSX System. An
incoming reserve sell order that is received by the CBSX System after
the time a circuit breaker is triggered that is marked ``short'' and
that is priced above the National Best Bid will be permitted to rest
and/or execute. The Exchange also notes that the entire size of a
reserve sell order that is marked ``short'' and resting in the CBSX
Book--both the displayed portion and the reserve portion at the same
price that is not displayed--will be permitted to rest and/or execute.
This handling will apply to reserve orders resting in the CBSX Book at
the time a circuit breaker is triggered or to incoming reserve orders
that rest in the CBSX Book after a circuit breaker is triggered. The
Exchange believes this handling of reserve orders marked ``short'' is
consistent with Rule 201 because resting reserve orders that are marked
``short'' by definition are priced above the National Best Bid at the
time of initial display.\16\
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    \15\ A ``reserve order'' is a limit order with a portion of the
size that is to be displayed and with a reserve portion of the size
at the same price that is not to be displayed, but is to be used to
refresh the displayed size when the displayed size is executed in
full. See Rule 51.8(o).
    \16\ 17 CFR 242.201(b)(1)(iii)(A).
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    Sell orders marked ``short exempt'' will be permitted to rest and/
or execute without regard to when the order is received or whether the
order is priced above, at or below the National Best Bid. This handling
of sell orders marked ``short exempt'' would be applied by the CBSX
System at all times--without regard to whether a circuit breaker is
triggered. The Exchange believes this handling by CBSX of sell orders
marked ``short exempt'' is consistent with Rule 201, which permits the
execution or display of a short sell order in an NMS stock marked
``short exempt'' without regard to whether the order is at a price that
is less than or equal to the current National Best Bid.\17\
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    \17\ See Rule 201(b)(1)(iii)(B) of Regulation SHO, 17 CFR
242.201(b)(1)(iii)(B). The Exchange notes that a broker or dealer
may mark a sell order ``short exempt'' only if the provisions of
Rule 242.201(c) or (d) are met. See Rule 200(g)(2) of Regulation
SHO, 17 CFR 242.200(g)(2).
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    The Exchange is also proposing to amend Interpretation and Policy
.06 to its Rule 6.53C, Complex Orders on the Hybrid System, to include
an order marking requirement for stock-option orders. In particular,
the Exchange is proposing to provide that, if the stock leg of a stock-
option order submitted to CBOE's electronic complex order book
(referred to in the rules as ``COB'') \18\ or electronic complex order
request for response auction (referred to in the rules as ``COA'') \19\
is a sell order, then the stock leg must be marked ``long, ``short,''
or ``short exempt'' in compliance with Regulation SHO.\20\
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    \18\ See Rule 6.53C(c).
    \19\ See Rule 6.53C(d).
    \20\ 17 CFR 242.200(g).
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    Finally, the Exchange is proposing to make non-substantive
technical updates to its Rule 53.5, ``Long'' and ``Short'' Sales. In
particular, the Exchange is proposing to change the title of the rule
to ```Long,' `Short' and `Short Exempt' Sales'' and to delete an
outdated reference to SEC Rule 10a-1 (which no longer exists and has
been superseded by Regulation SHO).
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\21\ in general, and, in particular, furthers
the objectives of Section 6(b)(5) of the Act,\22\ which requires that
an exchange have rules that are designed to promote just and equitable
principles of trade and, in general, to protect investors and the
public interest. In particular, the Exchange believes the proposed
change will provide clarity on the short sell order handling procedures
that the CBSX System will apply when a short sale-related circuit
breaker is triggered under Rule 201 of Regulation SHO in a manner that
the Exchange believes is consistent with Regulation SHO.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    The Exchange neither solicited nor received comments on the
proposal.

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

    Because the foregoing proposed rule change does not: (1)
Significantly affect the protection of investors or the public
interest; (2) impose any significant burden on competition; and (3)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \23\ and Rule 19b-
4(f)(6) thereunder.\24\
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f)(6). In addition, CBOE has given the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date on which the
Exchange filed the proposed rule change.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\25\
However, Rule 19b-4(f)(6) \26\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay to allow updating of its
rules before the November 10, 2010 compliance date of the amendments to
Rule 200(g) and 201 of Regulation SHO \27\ and thereby provide clarity
on the short sell order handling procedures that the CBSX System will
apply when a short sale-related circuit breaker is triggered under Rule
201 of Regulation SHO. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because the waiver will provide clarity to market
participants that trade on CBSX System on the handling of certain
orders in light of the amendments to Regulation SHO.\28\ The Commission
also believes that the proposed rule change does not raise any new or
novel issues. Accordingly, the Commission designates the proposed rule
change

operative upon filing with the Commission.\29\
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    \25\ 17 CFR 240.19b-4(f)(6)(iii).
    \26\ Id.
    \27\ 17 CFR 242.200(g); 17 CFR 242.201.
    \28\ Id.
    \29\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml ); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2010-099 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-CBOE-2010-099. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the CBOE. 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-CBOE-2010-099 and should be
submitted on or before November 30, 2010 in the Federal Register.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28244 Filed 11-8-10; 8:45 am]
BILLING CODE 8011-01-P