[Federal Register Volume 83, Number 14 (Monday, January 22, 2018)]
[Notices]
[Pages 3035-3037]
[FR Doc No: 2018-00977]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82506; File No. SR-NYSE-2018-01]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Amend the Complimentary
Products and Services Available to Certain Eligible New Listings
Pursuant to Section 907.00 of the Exchange's Listed Company Manual

January 16, 2018.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on January 3, 2018, New York Stock Exchange LLC (``NYSE''
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 self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend 907.00 of the Exchange's Listed
Company Manual (the ``Manual'') to provide that companies initially
listed on or after April 1, 2018 will no longer be eligible to receive
corporate governance tools under the Exchange's services offering. The
proposed rule change is available on the Exchange's website at
www.nyse.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 self-regulatory organization
included

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

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

1. Purpose
    The Exchange proposes to amend Section 907.00 of the Manual to
provide that companies initially listed on or after April 1, 2018 will
no longer be eligible to receive corporate governance tools under the
Exchange's services offering.
    Currently, all Eligible New Listings \4\ are entitled to receive
complimentary access to corporate governance tools for a period of 24
calendar months with a commercial value of approximately $50,000).\5\
In the Exchange's experience, companies that qualify as Eligible New
Listings have generally not been interested in utilizing the corporate
governance tools available as part of the Exchange's services offering.
Consequently, the Exchange proposes to amend Section 907.00 to
discontinue its provision of corporate governance tools. Eligible New
Listings with an initial listing date before April 1, 2018, will
continue to be eligible to avail themselves of complimentary corporate
governance tools on the same terms as such services are currently
offered. Companies whose initial listing date is on or after April 1,
2018 will no longer be eligible to receive any complimentary corporate
governance tools.\6\
---------------------------------------------------------------------------

    \4\ For the purposes of Section 907.00, the term ``Eligible New
Listing'' means (i) any U.S. company that lists common stock on the
Exchange for the first time and any non-U.S. company that lists an
equity security on the Exchange under Section 102.01 or 103.00 of
the Manual for the first time, regardless of whether such U.S. or
non-U.S. company conducts an offering and (ii) any U.S. or non-U.S.
company emerging from a bankruptcy, spinoff (where a company lists
new shares in the absence of a public offering), and carve-out
(where a company carves out a business line or division, which then
conducts a separate initial public offering).
    \5\ The period of complimentary products and services provided
to Eligible New Listing Companies begins on the date of listing on
the Exchange. Notwithstanding the foregoing, however, if an Eligible
New Listing begins to use a particular product or service provided
for under Section 907.00 within 30 days of its initial listing date,
the complimentary period will begin on the date of first use. The
Exchange's current offering of corporate governance services have a
commercial value of approximately $50,000 on an annual basis.
    \6\ This rule filing is subject to Commission approval. If the
Commission does not approve this rule filing prior to April 1, 2018,
the Exchange will amend this rule filing to propose that the
complimentary corporate governance services offering provided for in
Section 907.00 of the Manual will be terminated as of a later date.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) \7\ of the Act, in general, and furthers the
objectives of Section 6(b)(5) of the Act,\8\ in particular in that it
is designed 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.
The Exchange believes that the proposed amendment is not unfairly
discriminatory, as all companies listed on or after April 1, 2018 will
continue to be eligible to avail themselves of the same services
offering with the exception of the corporate governance tools offering
which will be discontinued. It is not unfairly discriminatory to
continue to offer corporate governance tools to companies listed prior
to April 1, 2018 on the same terms as they are currently offered, as
that benefit was part of the services offering that was available at
the time of those companies' initial listing and may have had some
influence over their listing decisions. The Exchange further believes
that the proposed rule change is consistent with Section 6(b)(4) of the
Act.\9\ In particular, the Exchange has found that companies that
qualify as Eligible New Listings have generally not been interested in
utilizing the corporate governance tools available as part of the
Exchange's services offerings and, therefore, the Exchange believes it
is reasonable to eliminate such offering.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The proposed rule change does
not impose any burden on competition, as all companies whose initial
listing occurs on or after April 1, 2018 will be eligible for an
identical services offering with the exception of the discontinued
corporate governance tools. In addition, all companies whole [sic]
initial listing occurs prior to April 1, 2018 will continue to be
eligible for corporate governance services on the same terms as they
are currently offered.

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

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or up to 90 days (i) as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or (ii) as to which the self-regulatory
organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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 protected]. Please include
File Number SR-NYSE-2018-01 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-NYSE-2018-01. 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-
NYSE-2018-01, and should be submitted on or before February 12, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00977 Filed 1-19-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: December 2, 2008 (Volume 73, Number 232)]
[Notices]
[Page 73368-73371]
[DOCID:fr02de08-112]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58983; File No. SR-NYSEArca-2008-126]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Order Granting Accelerated Approval of Proposed Rule Change by NYSE
Arca, Inc. Relating to Listing Shares of the GreenHaven Continuous
Commodity Index Fund

November 20, 2008.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on November 5, 2008, NYSE Arca, Inc. (``NYSE Arca'' 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 self-regulatory
organization. The Commission is publishing this notice and order to
solicit comments on the proposed rule change from interested persons
and to approve the proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange, through its wholly-owned subsidiary NYSE Arca
Equities, Inc. (``NYSE Arca Equities''), proposes to list and trade
shares (``Shares'') of the GreenHaven Continuous Commodity Index Fund
(``Fund'') pursuant to Commentary.02 to NYSE Arca Equities Rule 8.200.
The text of the proposed rule change is available on the Exchange's Web
site at http://www.nyse.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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    Pursuant to Commentary .02 to NYSE Arca Equities Rule 8.200, the
Exchange may approve for listing and trading trust issued receipts
(``TIRs'') investing in shares or securities (``Investment Shares'')
that hold investments in any combination of futures contracts, options
on futures contracts, forward contracts, commodities, swaps or high
credit quality short-term fixed income securities or other securities.
The Exchange proposes to list and trade the Shares under Commentary .02
to NYSE Arca Equities Rule 8.200. The Shares represent beneficial
ownership interests in the GreenHaven Continuous Commodity Index Master
Fund's (``Master Fund'') net assets, consisting solely of the common
units of beneficial interest of the Master Fund (``Master Fund
Units''). The Fund's primary objective is to reflect the performance of
the Continuous Commodity Total Return Index (``Index'').
    The Fund is currently listed on NYSE Alternext U.S. LLC (NYSE
Alternext U.S. (formerly, the American Stock Exchange LLC (``Amex''))
\4\ and is traded on the Exchange pursuant to unlisted trading
privileges (``UTP'').\5\ Prior to listing on the Exchange, the Fund
would be required to satisfy the applicable delisting procedures of
NYSE Alternext U.S. and applicable statutory and regulatory
requirements, including, without limitation, Section 12 of the
Securities Exchange Act of 1934 (``Act''),\6\ relating to listing the
Shares on the Exchange.\7\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 56969 (December 14,
2007), 72 FR 72424 (December 20, 2007) (SR-Amex-2007-53) (``Amex
Filing''). See e-mail from Michael Cavalier, Chief Counsel, NYSE
Euronext, to Christopher W. Chow, Special Counsel, Commission, dated
November 13, 2008 (``November 13 e-mail'').
    \5\ See Securities Exchange Act Release No. 57029 (December 21,
2007), 72 FR 74388 (December 31, 2007) (SR-NYSEArca-2007-68) (``UTP
Filing'').
    \6\ 15 U.S.C. 78(l).
    \7\ The Exchange will seek the voluntary consent of the issuer
of the Shares to be delisted from NYSE Alternext U.S. and listed on
the Exchange. The Exchange notes that its approval of the Fund's
listing application would be required prior to listing.
---------------------------------------------------------------------------

    A description of the Fund is included in the Amex Filing, the UTP
Filing, and the Registration Statement for the Fund.\8\ The Exchange
represents that the Shares satisfy the applicable requirements of Rule
8.200, including Commentary .02 to Rule 8.200, and thereby qualify for
listing on the Exchange.\9\ The Exchange states that all of the facts
describing the Fund, the Master Fund, Master Fund Units and the Shares
contained in the Amex Filing are true and correct as of the date of
this filing. The Exchange states further that the representations
included in the Amex Filing relating to the dissemination and
availability of information regarding the Shares will apply to listing
and trading of the Shares on the Exchange. To the extent NYSE Alternext
U.S. has any affirmative obligations with respect to dissemination of
information or key values relating to the Shares, the Exchange
represents that it would take the place of NYSE Alternext U.S. in such
role and discharge such obligations.
---------------------------------------------------------------------------

    \8\ See the Fund's Registration Statement on Form S-1, dated
November 21, 2007 (No. 333-138424) (``Registration Statement'').
    \9\ See November 13 e-mail, supra, note 4.
---------------------------------------------------------------------------

    The Fund will comply with the requirements of Rule 10A-3 \10\ under
the Act.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Trading Rules

    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. Eastern time. The
Exchange has appropriate rules to facilitate transactions in the Shares
during all trading sessions. The minimum trading increment for Shares
on the Exchange will be $0.01.
    The trading of the Shares will be subject to Commentary .02(e)(1)-
(4) to NYSE Arca Equities Rule 8.200, which sets forth certain
restrictions on ETP Holders acting as registered Market Makers in TIRs
that invest in Investment Shares to facilitate surveillance. See
``Surveillance'' below for more information.
    With respect to trading halts, the Exchange may consider all
relevant

factors in exercising its discretion to halt or suspend trading in the
Shares. Trading may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the underlying Commodity Futures Contracts, or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. In addition,
trading in Shares could be halted pursuant to the Exchange's ``circuit
breaker'' rule \11\ or by the halt or suspension of trading of the
underlying Commodity Futures Contracts.
---------------------------------------------------------------------------

    \11\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

Surveillance

    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products, including Trust Issued
Receipts, to monitor trading in the Shares. The Exchange represents
that these procedures are adequate to properly monitor Exchange trading
of the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.
    The Exchange's current trading surveillances focus on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations. The Exchange is able to
obtain information regarding trading in the Shares, the physical
commodities included in, or options, futures or options on futures on,
the Index or any other derivatives based on the Index, through ETP
Holders, in connection with such ETP Holders' proprietary or customer
trades which they effect on any relevant market. With regard to the
Index components, the Exchange can obtain market surveillance
information, including customer identity information, with respect to
transactions occurring on the New York Mercantile Exchange, the
InterContinental Exchange and the London Metal Exchange, pursuant to
its comprehensive information sharing agreements with each of those
exchanges. All of the other trading venues on which current Index
components are traded are members of the Intermarket Surveillance Group
(``ISG'') and the Exchange therefore has access to all relevant trading
information with respect to those contracts without any further action
being required on the part of the Exchange. A list of ISG members is
available at http://www.isgportal.org.
    In addition, not more than 10% of the weight of the Index in the
aggregate shall consist of components whose principal trading market is
not a member of ISG or is a market with which the Exchange does not
have a comprehensive surveillance sharing agreement.
    The Exchange also has a general policy prohibiting the distribution
of material, non-public information by its employees.

Information Bulletin

    Prior to the commencement of trading, the Exchange will inform its
ETP Holders in an Information Bulletin (``Bulletin'') of the special
characteristics and risks associated with trading the Shares.
Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares in Baskets (and that
Shares are not individually redeemable); (2) NYSE Arca Equities Rule
9.2(a), which imposes a duty of due diligence on its ETP Holders to
learn the essential facts relating to every customer prior to trading
the Shares; (3) how information regarding the Indicative Fund Value is
disseminated; (4) the requirement that ETP Holders deliver a prospectus
to investors purchasing newly issued Shares prior to or concurrently
with the confirmation of a transaction; (5) the risks involved in
trading the Shares during the Opening and late Trading Sessions when an
updated Indicative Fund Value will not be calculated or publicly
disseminated; and (6) trading information.
    In addition, the Bulletin will reference that the Fund is subject
to various fees and expenses described in the registration statement
for the Fund.
    The Bulletin will also reference the fact that there is no
regulated source of last sale information regarding physical
commodities, that the Commission has no jurisdiction over the trading
of commodity futures contracts, and that the CFTC has regulatory
jurisdiction over the trading of commodity futures contracts.
    The Bulletin will also discuss any exemptive, no-action and
interpretive relief granted by the Commission from Section 11(d)(1) of
the Act \12\ and certain rules under the Act, including Rule 10b-10,
Rule 14e-5, Rule 10b-17, Rule 11d1-2, Rules 15c1-5 and 15c1-6, and
Rules 101 and 102 of Regulation M under the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78k(d)(1).
---------------------------------------------------------------------------

    The Bulletin will also disclose that the NAV for the Shares will be
calculated after 4 p.m. Eastern time each trading day.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and Section 6(b)(5),\14\
in particular, in that it is 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 facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. The Exchange believes that the
proposed rule change will permit the listing of the Fund on the
Exchange, to the benefit of investors and the marketplace. In addition,
the listing and trading criteria set forth in Rule 8.200 are intended
to protect investors and the public interest.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b). See November 13 e-mail, supra, note 4.
    \14\ 15 U.S.C. 78f(b)(5). See November 13 e-mail, supra, note 4.
---------------------------------------------------------------------------

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

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

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

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

III. 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-NYSEArca-2008-126 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-NYSEArca-2008-126.
This file number should be included on the subject line if e-mail is
used. To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference 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 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; 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-NYSEArca-2008-126 and should
be submitted on or before December 23, 2008.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\15\ In particular, the Commission believes that the proposal
is consistent with Section 6(b)(5) of the Act,\16\ which requires,
among other things, that the rules of a national securities exchange be
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 Commission notes that the Shares have been
approved for listing and trading on Amex,\17\ now known as NYSE
Alternext US, and trading pursuant to UTP on the Exchange.\18\
---------------------------------------------------------------------------

    \15\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ See Amex Filing, supra, note 4.
    \18\ See UTP Filing, supra, note 5.
---------------------------------------------------------------------------

    The Exchange proposes to list and trade the Shares pursuant to NYSE
Arca Equities Rule 8.200. NYSE Arca represents that the Shares satisfy
the applicable requirements of Rule 8.200, which includes initial and
continued listing criteria. The Exchange deems the Shares to be equity
securities, thus subjecting the Shares to the Exchange's existing rules
governing the trading of equity securities.
    The Commission believes that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Act,\19\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. The Exchange states
that: (1) The representations included in the Amex Filing relating to
the dissemination and availability of information regarding the Shares
will apply to listing and trading of the Shares on the Exchange; and
(2) to the extent NYSE Alternext U.S. has any affirmative obligations
with respect to dissemination of information or key values relating to
the Shares, the Exchange will assume the role of NYSE Alternext U.S.
and discharge such obligations. Accordingly, among other things:
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    1. Futures contract quotes and last-sale information for the
Commodity Futures Contracts are widely disseminated through a variety
of market data vendors worldwide, including Bloomberg and Reuters; \20\
---------------------------------------------------------------------------

    \20\ See Amex Filing, supra, note 4, 72 FR at 72425.
---------------------------------------------------------------------------

    2. Complete real-time data for the Commodity Futures Contracts is
available by subscription from Reuters and Bloomberg; \21\
---------------------------------------------------------------------------

    \21\ Id.
---------------------------------------------------------------------------

    3. The relevant futures exchanges also provide delayed futures
information on current and past trading sessions and market news free
of charge on their respective Web sites; \22\
---------------------------------------------------------------------------

    \22\ Id.
---------------------------------------------------------------------------

    4. The specific contract specifications for each Commodity Futures
Contract are also available from the various futures exchanges on their
Web sites as well as other financial informational sources; \23\
---------------------------------------------------------------------------

    \23\ Id.
---------------------------------------------------------------------------

    5. The Web sites for the Fund and/or the Exchange, which are
publicly accessible at no charge, will disseminate the following
information to everyone at the same time: (a) The current NAV per Share
daily and the prior business day's NAV per Share and the reported
closing price; (b) the mid-point of the bid-ask price in relation to
the NAV per Share as of the time it is calculated (the ``Bid-Ask
Price''); (c) calculation of the premium or discount of such price
against the NAV per Share; (d) data in chart form displaying the
frequency distribution of discounts and premiums of the Bid-Ask Price
against the NAV per Share, within appropriate ranges for each of the
four previous calendar quarters; (e) the Prospectus; (f) the
composition of the portfolio of the Fund; and (g) other applicable
quantitative information; \24\
---------------------------------------------------------------------------

    \24\ Id.
---------------------------------------------------------------------------

    6. On each business day, the Administrator will make available via
the facilities of the Consolidated Tape Association (``CTA'')
immediately prior to the opening of trading on the Exchange the most
recent Basket Amount for the creation of a Basket, and the Exchange
will disseminate at least every 15 seconds throughout the trading day,
via the CTA, an amount representing on a per Share basis, the current
value of the Basket Amount; \25\ and
---------------------------------------------------------------------------

    \25\ See Securities Exchange Act Release No. 56802 (November 16,
2007), 72 FR 65994, 65998 (November 26, 2007) (SR-Amex-2007-53)
(``Amex Filing Notice'').
---------------------------------------------------------------------------

    7. The Exchange will disseminate through the facilities of CTA, an
updated Indicative Fund Value (``IFV''), on a per Share basis, that
will be updated at least every 15 seconds between 9:30 a.m. and 4:15
p.m. Eastern Time.\26\
---------------------------------------------------------------------------

    \26\ See Amex Filing Notice, supra, note 25 at 65999.
---------------------------------------------------------------------------

    The Commission also believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. Only Reuters determines the composition of the Index, and
Reuters (1) considers information about changes to the Index and
related matters to be potentially market-moving, material, and
confidential; and (2) has policies and procedures in place to ensure to
prevent [sic] the use and dissemination of such information.\27\ With
respect to trading halts, the Exchange may consider all relevant
factors in exercising its

discretion to halt or suspend trading in the Shares.\28\ Specifically,
however, if the Exchange becomes aware that the NAV is not being
disseminated to all market participants at the same time, it will halt
trading in the Shares until such time as the NAV is available to all
market participants pursuant to NYSE Arca Equities Rule 7.34(a)(5).
Further, Commentary .02(e) to NYSE Arca Equities Rule 8.200 sets forth
certain restrictions (described above) on ETP Holders acting as
registered Market Makers in TIRs that invest in Investment Shares to
facilitate surveillance.
---------------------------------------------------------------------------

    \27\ See Amex Filing, supra, note 4, 72 FR at 72425.
    \28\ Trading may be halted because of market conditions or for
reasons that make trading in the Shares inadvisable, including: (1)
The extent to which trading is not occurring in the underlying
securities; or (2) whether other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly market are
present.
---------------------------------------------------------------------------

    In support of this proposal, the Exchange has made the following
representations:
    1. The Shares satisfy the requirements of NYSE Arca Equities Rule
8.200, Commentary .02, which includes the initial and continued listing
criteria for TIRs that invest in Investment Shares.
    2. The Exchange's surveillance procedures are adequate to properly
monitor trading of the Shares in all trading sessions and to deter and
detect violations of Exchange rules and applicable federal securities
laws.
    3. The Exchange will distribute an Information Bulletin, the
contents of which are more fully described above, to ETP Holders in
connection with the trading of the Shares.

This approval order is based on the Exchange's representations.

    The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\29\ for approving the proposed rule change prior to the 30th
day after the date of publication of notice in the Federal Register.
The Commission notes that it has previously approved the listing and
trading of the Shares on Amex \30\ and believes that the Exchange's
proposal to list and trade such Shares does not appear to present any
novel or significant regulatory issues. As such, the Commission
believes that accelerating approval of this proposal should benefit
investors by creating, without undue delay, additional competition in
the market for such products.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78s(b)(2).
    \30\ See Amex Filing, supra, note 4. The Shares have also been
approved for trading on the Exchange pursuant to UTP. See UTP
Filing, supra, note 5.
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\31\ that the proposed rule change (SR-NYSEArca-2008-126) be, and
it hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2).
    \32\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E8-28496 Filed 12-1-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 134 (Monday, July 13, 2020)]
[Notices]
[Pages 42023-42024]
[FR Doc No: 2020-15071]

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

DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2005-0022]

T[Uuml]V S[Uuml]D Product Services GmbH: Request for Renewal of
Recognition

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Notice.

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

SUMMARY: In this notice, OSHA announces the application of T[Uuml]V
S[Uuml]D Product Services GmbH requesting renewal of recognition as a
Nationally Recognized Testing Laboratory (NRTL).

DATES: Submit comments, information, and documents in response to this
notice, or requests for an extension of time to make a submission, on
or before July 28, 2020.

ADDRESSES: Submit comments by any of the following methods:
Electronically: You may submit comments and attachments electronically
at: https://www.regulations.gov, which is the Federal eRulemaking
Portal. Follow the instructions online for submitting comments.
    Facsimile: If your comments, including attachments, are not longer
than 10 pages, you may fax them to the OSHA Docket Office at (202) 693-
1648.
    Mail, hand delivery, express mail, messenger, or courier service:
When using this method, you must submit a copy of your comments and
attachments to the OSHA Docket Office, Docket No. OSHA-2005-0022,
Occupational Safety and Health Administration, U.S. Department of
Labor, Room N-3653, 200 Constitution Avenue NW, Washington, DC 20210.
Deliveries (hand, express mail, messenger, and courier service) are
accepted during the Docket Office's normal business hours, 10:00 a.m.
to 3:00 p.m., ET.
    Instructions: All submissions must include the agency name and the
OSHA docket number (OSHA-2005-0022). OSHA places comments and other
materials, including any personal information, in the public docket
without revision, and these materials will be available online at
http://www.regulations.gov. Therefore, the agency cautions commenters
about submitting statements they do not want made available to the
public, or submitting comments that contain personal information
(either about themselves or others) such as Social Security Numbers,
birth dates, and medical data.
    Docket: To read or download comments or other material in the
docket, go to https://www.regulations.gov or the OSHA Docket Office at
the above address. All documents in the docket (including this Federal
Register notice) are listed in the https://www.regulations.gov index;
however, some information (e.g., copyrighted material) is not publicly
available to read or download through the website. All submissions,
including copyrighted material, are available for inspection at the
OSHA Docket Office. Contact the OSHA Docket Office for assistance in
locating docket submissions.
    Extension of comment period: Submit requests for an extension of
the comment period on or before July 28, 2020 to the Office of
Technical Programs and Coordination Activities, Directorate of
Technical Support and Emergency Management, Occupational Safety and
Health Administration, U.S. Department of Labor, 200 Constitution
Avenue NW, Room N-3653, Washington, DC 20210, or by fax to (202) 693-
1644.

FOR FURTHER INFORMATION CONTACT: Information regarding this notice is
available from the following sources:
    Press inquiries: Contact Mr. Frank Meilinger, Director, OSHA Office
of Communications, U.S. Department of Labor, telephone:<PHONE_NUMBER>;
email<EMAIL_ADDRESS>    General and technical information: Contact Mr. Kevin Robinson,
Director, Office of Technical Programs and Coordination Activities,
Directorate of Technical Support and Emergency Management, Occupational
Safety and

Health Administration, U.S. Department of Labor, phone:<PHONE_NUMBER>
or email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    OSHA recognition of a NRTL signifies that the organization meets
the requirements in Section 1910.7 of Title 29, Code of Federal
Regulations (29 CFR 1910.7). Recognition is an acknowledgment that the
organization can perform independent safety testing and certification
of the specific products covered within its scope of recognition and is
not a delegation or grant of government authority. As a result of
recognition, employers may use products properly approved by the NRTL
to meet OSHA standards that require testing and certification. OSHA
maintains an informational web page for each NRTL that details its
scope of recognition available at http://www.osha.gov/dts/otpca/nrtl/index.html.
    The agency processes applications by a NRTL for renewal of
recognition following requirements in Appendix A to 29 CFR 1910.7. OSHA
conducts renewals in accordance with the procedures in 29 CFR 1910.7,
Appendix A, Section II.C. In accordance with these procedures, NRTLs
would submit a renewal request to OSHA, not less than nine months or no
more than one year, before the expiration date of its current
recognition. A request would include a request for renewal and any
additional information the NRTL wishes to submit to demonstrate its
continued compliance with the terms of its recognition and 29 CFR
1910.7. If OSHA has not conducted an on-site assessment of the NRTL
headquarters and any key sites within the past 18 months, it will
schedule the necessary on-site assessments prior to the expiration date
of the NRTL's recognition. Upon review of the submitted material and,
as necessary, the successful completion of the on-site assessment, OSHA
announces its preliminary decision to grant or deny renewal in the
Federal Register and solicit comments from the public. OSHA then
publishes a final Federal Register notice responding to any comments
and renewing the NRTL's recognition for a period of five years, or
denying the renewal of recognition.
    T[Uuml]V S[Uuml]D Product Services GmbH (TUVPSG) initially received
OSHA recognition as a NRTL on July 20, 2001 (66 FR 38032). TUVPSG's
most recent renewal was granted on January 30, 2014, for a five year
period ending on January 30, 2019. TUVPSG submitted a timely request
for renewal, dated April 16, 2018 (OSHA-2005-0022-0012), and retains
its recognition pending OSHA's final decision in this renewal process.
The current addresses of TUVPSG facilities recognized by OSHA and
included as part of the renewal request are:
    1. T[Uuml]V S[Uuml]D Product Services GmbH Munich, Ridlerstrasse 65
D-80339 Munich, Germany; and
    2. T[Uuml]V S[Uuml]D Product Services GmbH, Daimlerstrasse 11 D-
85748 Garching, Germany.

II. Notice of Preliminary Findings

    OSHA is providing notice that TUVPSG is applying for renewal of its
recognition as a NRTL. This renewal covers TUVPSG's existing NRTL scope
of recognition. TUVPSG submitted an acceptable application for renewal
of its recognition as a NRTL on April 16, 2018. OSHA evaluated TUVPSG's
application for renewal and preliminarily determined that TUVPSG can
continue to meet the requirements prescribed by 29 CFR 1910.7 for
recognition. Accordingly, OSHA is making a determination that it does
not need to conduct an additional on-site review of TUVPSG's facilities
based on its evaluations of TUVPSG's application and all other
available information. This information includes OSHA's audits of
TUVPSG's recognized NRTL sites during this recognition period, and the
satisfactory resolution of non-conformances with the requirements of 29
CFR 1910.7. This preliminary finding does not constitute an interim or
temporary approval of the request.
    OSHA welcomes public comment as to whether TUVPSG meets the
requirements of 29 CFR 1910.7 for renewal of their recognition as a
NRTL. Comments should consist of pertinent written documents and
exhibits. Commenters needing more time to comment must submit a request
in writing, stating the reasons for the request. OSHA must receive the
written request for an extension by the due date for comments. OSHA
will limit any extension to 30 days unless the requester justifies a
longer period. OSHA may deny a request for an extension if it is not
adequately justified. To obtain or review copies of the publicly
available information in TUVPSG's application and other pertinent
documents (including exhibits), as well as all submitted comments,
contact the Docket Office, Room N-3653, Occupational Safety and Health
Administration, U.S. Department of Labor, at the above address; these
materials also are available online at http://www.regulations.gov under
Docket No. OSHA-2005-0022.
    OSHA staff will review all comments to the docket submitted in a
timely manner and, after addressing the issues raised by these
comments, will make a recommendation to the Assistant Secretary on
whether to grant TUVPSG's application for renewal. The Assistant
Secretary will make the final decision on granting the application and,
in making this decision, may undertake other proceedings prescribed in
Appendix A to 29 CFR 1910.7.
    OSHA will publish a public notice of this final decision in the
Federal Register.

III. Authority and Signature

    Loren Sweatt, Principal Deputy Assistant Secretary of Labor for
Occupational Safety and Health, U.S. Department of Labor, Washington,
DC 20210, authorized the preparation of this notice. Accordingly, the
agency is issuing this notice pursuant to Section 8(g)(2) of the
Occupational Safety and Health Act of 1970 (29 U.S.C. 657(g)(2)),
Secretary of Labor's Order No. 1-2012 (77 FR 3912, Jan. 25, 2012), and
29 CFR 1910.7.

    Signed at Washington, DC, on July 7, 2020.
Loren Sweatt,
Principal Deputy Assistant Secretary of Labor for Occupational Safety
and Health.
[FR Doc. 2020-15071 Filed 7-10-20; 8:45 am]
BILLING CODE 4510-26-P


[Federal Register Volume 85, Number 206 (Friday, October 23, 2020)]
[Rules and Regulations]
[Pages 67436-67438]
[FR Doc No: 2020-22618]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2020-0927; Special Conditions No. 25-776-SC]

Special Conditions: Chicago Jet Group, Dassault Aviation Model
Falcon 900 Airplane; Rechargeable Lithium Batteries

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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

SUMMARY: These special conditions are issued for the Dassault Aviation
(Dassault) Model Falcon 900 airplane. This airplane, as modified by
Chicago Jet Group, will have a novel or unusual design feature when
compared to the state of technology envisioned in the airworthiness
standards for transport category airplanes. This design feature is
Midcontinent Instrument TS835 Standby Batteries that contain
rechargeable lithium batteries. 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: This action is effective on Chicago Jet Group on October 23,
2020. Send comments on or before December 7, 2020.

ADDRESSES: Send comments identified by Docket No. FAA-2020-0927 using
any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket website, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478).
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Nazih Khaouly, Airplane & Flight Crew
Interface Section, AIR-671, Transport Standards Branch, Policy and
Innovation Division, Aircraft Certification Service, Federal Aviation
Administration, 2200 South 216th Street, Des Moines, Washington 98198;
telephone and fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The substance of these special conditions
has been published in the Federal Register for public comment in
several prior instances with no substantive comments received.
Therefore, the FAA has determined that prior public notice and comment
are unnecessary, and finds that, for the same reason, good cause exists
for adopting these special conditions upon publication in the Federal
Register.

Comments Invited

    The FAA invites interested people to take part in this rulemaking
by sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.
    The FAA will consider all comments received by the closing date for
comments. The FAA may change these special conditions based on the
comments received.

Background

    On April 27, 2020, Chicago Jet Group applied for a supplemental
type certificate to install, in the Dassault Model Falcon 900 airplane,
Midcontinent Instrument TS835 Standby Batteries that contain
rechargeable lithium batteries. The Dassault Model Falcon 900 airplane
is a three-engine, transport category business jet, with capacity for
19 passengers, and a maximum takeoff weight of 45,500 lbs.

Type Certification Basis

    Under the provisions of title 14, Code of Federal Regulations (14
CFR) 21.101, Chicago Jet Group must show that the Dassault Model Falcon
900 airplane, as changed, continues to meet the applicable provisions
of the regulations listed in Type Certificate No. A46EU or the
applicable regulations in effect on the date of application for the
change, except for earlier amendments as agreed upon by the FAA.
    If the Administrator finds that the applicable airworthiness
regulations (e.g., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Dassault Model Falcon 900 airplane
because of a novel or unusual design feature, special conditions are
prescribed under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the applicant apply for a supplemental type
certificate to modify any other model included on the same type
certificate to incorporate the same novel or unusual design feature,
these special conditions would also apply to the other model under
Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Dassault Model Falcon 900 airplane 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.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type
certification basis under Sec.  21.101.

Novel or Unusual Design Features

    The Dassault Model Falcon 900 airplane will incorporate the
following novel or unusual design features:
    Midcontinent Instrument TS835 Standby Batteries that contain
rechargeable lithium batteries.

Discussion

    Rechargeable lithium batteries are considered to be a novel or
unusual design feature in transport category airplanes, with respect to
the requirements in Sec.  25.1353. This type of battery has certain
failure, operational, and maintenance characteristics that differ
significantly from those of the nickel-cadmium and lead-acid
rechargeable batteries currently approved for installation on transport
category airplanes. These batteries introduce higher energy levels into
airplane systems through new chemical compositions in various battery-
cell sizes and construction. Interconnection of these cells in battery
packs introduces failure modes that require unique design
considerations, such as provisions for thermal management.
    Known uses of rechargeable and non-rechargeable lithium batteries
on airplanes include:
     Flightdeck and avionics systems such as displays, global
positioning systems, cockpit voice recorders, flight data recorders,
underwater-locator-beacons, navigation computers,

integrated avionics computers, satellite network/communication systems,
communication management units, and remote monitor electronic line
replaceable units;
     Cabin safety, entertainment and communications equipment
including emergency locator transmitters, life rafts, escape slides,
seat belt air bags, cabin management systems, Ethernet switches,
routers and media servers, wireless systems, internet/in-flight
entertainment systems, satellite televisions, remotes and handsets; and
     Systems in cargo areas including door controls, sensors,
video surveillance equipment and security systems.
    Special Condition 1 requires that each individual cell within a
battery be designed to maintain safe temperatures and pressures.
Special Condition 2 addresses these same issues but for the entire
battery. Special Condition 2 requires that the battery be designed to
prevent propagation of a thermal event, such as self-sustained,
uncontrolled increases in temperature or pressure from one cell to
adjacent cells.
    Special Conditions 1 and 2 are intended to ensure that the cells
and battery are designed to eliminate the potential for uncontrollable
failures. However, a certain number of failures will occur due to
various factors beyond the control of the designer. Therefore, other
special conditions are intended to protect the airplane and its
occupants if failure occurs.
    Special Conditions 3, 7, and 8 are self-explanatory, and the FAA
does not provide further explanation for them at this time.
    Special Condition 4 clarifies that the flammable-fluid fire-
protection requirements of Sec.  25.863 apply to rechargeable lithium
battery installations. Section 25.863 is applicable to areas of the
airplane that could be exposed to flammable fluid leakage from airplane
systems. Rechargeable lithium batteries contain electrolyte that is a
flammable fluid.
    Special Condition 5 requires each rechargeable lithium battery
installation to not damage surrounding structure or adjacent systems,
equipment, or electrical wiring from corrosive fluids or gases that may
escape in such a way as to cause a major or more severe failure
condition. Special Condition 6 requires each rechargeable lithium
battery installation to have provisions to prevent any hazardous effect
on airplane structure or systems caused by the maximum amount of heat
it can generate due to any failure of it or its individual cells. The
means of meeting special conditions 5 and 6 may be the same, but they
are independent requirements addressing different hazards. Special
Condition 5 addresses corrosive fluids and gases, whereas special
condition 6 addresses heat.
    Special Condition 9 requires rechargeable lithium batteries to have
``automatic'' means, for charge rate and disconnect, due to the fast-
acting nature of lithium battery chemical reactions. Manual
intervention would not be timely or effective in mitigating the hazards
associated with these batteries.
    These special conditions apply to all rechargeable lithium battery
installations in lieu of Sec.  25.1353(b)(1) through (4) at Amendment
25-123 or Sec.  25.1353(c)(1) through (4) at earlier amendments. Those
regulations remain in effect for other battery installations.
    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
Dassault Model Falcon 900 airplane. Should Chicago Jet Group apply at a
later date for a supplemental type certificate to modify any other
model included on Type Certificate No. A46EU to incorporate the same
novel or unusual design feature, these special conditions would apply
to that model as well.

Conclusion

    This action affects only a certain novel or unusual design feature
on one model of airplane, as modified by Chicago Jet Group. It is not a
rule of general applicability and affects only the applicant who
applied to the FAA for approval of this feature on the airplane.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

Authority Citation

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(f), 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 Dassault Model Falcon 900 airplanes,
as modified by Chicago Jet Group.
    In lieu of Sec.  25.1353(b)(1) through (b)(4) at amendment 25-123
or Sec.  25.1353(c)(1) through (c)(4) at earlier amendments, each
rechargeable lithium battery installation must:
    1. Be designed to maintain safe cell temperatures and pressures
under all foreseeable operating conditions to prevent fire and
explosion.
    2. Be designed to prevent the occurrence of self-sustaining,
uncontrollable increases in temperature or pressure, and automatically
control the charge rate of each cell to protect against adverse
operating conditions, such as cell imbalance, back charging,
overcharging and overheating.
    3. Not emit explosive or toxic gases, either in normal operation or
as a result of its failure, that may accumulate in hazardous quantities
within the airplane.
    4. Meet the requirements of Sec.  25.863.
    5. Not damage surrounding structure or adjacent systems, equipment,
or electrical wiring from corrosive fluids or gases that may escape in
such a way as to cause a major or more-severe failure condition.
    6. Have provisions to prevent any hazardous effect on airplane
structure or systems caused by the maximum amount of heat it can
generate due to any failure of it or its individual cells.
    7. Have a failure sensing and warning system to alert the
flightcrew if its failure affects safe operation of the airplane.
    8. Have a monitoring and warning feature that alerts the flightcrew
when its charge state falls below acceptable levels if its function is
required for safe operation of the airplane.
    9. Have a means to automatically disconnect from its charging
source in the event of an over-temperature condition, cell failure, or
battery failure.
    Note: A battery system consists of the battery, battery charger,
and any protective monitoring and alerting circuitry or hardware inside
or outside of the battery. It also includes vents (where necessary) and
packaging. For the purpose of these special conditions, a battery and
the battery system is referred to as a battery.

    Issued in Des Moines, Washington, on October 7, 2020.
James E. Wilborn,
Acting Manager, Transport Standards Branch, Policy and Innovation
Division, Aircraft Certification Service.
[FR Doc. 2020-22618 Filed 10-22-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 159 (Wednesday, August 17, 2011)]
[Notices]
[Pages 51099-51103]
[FR Doc No: 2011-20912]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65116; File No. SR-CBOE-2011-055]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Approval of Proposed Rule Change to Trade
Options on the CBOE Silver ETF Volatility Index

August 11, 2011.

I. Introduction

    On June 15, 2011, Chicago Board Options Exchange, Incorporated (the
``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the ``Act''),\1\ a proposed rule
change to trade options on the CBOE Silver ETF Volatility Index
(``VXSLV''). The proposed rule change was published for comment in the
Federal Register on June 28, 2011.\2\ The Commission received no
comment letters on the proposed rule change. This order approves the
proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ See Securities Exchange Act Release No. 64722 (June 22,
2011), 76 FR 37868.
---------------------------------------------------------------------------

II. Description

    The Exchange proposes to amend certain of its rules to allow the
listing and trading of cash-settled, European-style options on VXSLV.
    The Exchange has previously received approval orders to trade
options on other volatility indexes that are calculated using certain
individual stock and exchange-traded fund (``ETF'') options listed on
CBOE.\3\ In the most recent approval order, the Exchange genericized
certain of its rules to collectively refer to these indexes as
``Individual Stock Based Volatility Indexes,'' ``ETF Based Volatility
Indexes,'' and ``Volatility Indexes,'' as applicable.\4\ The specific
Individual Stock Based Volatility Indexes and ETF Based Volatility
Indexes that have been approved for options trading are listed in Rule
24.1(bb). This filing layers VXSLV into CBOE's existing rule framework
for ``ETF Based Volatility

Indexes'' and ``Volatility Indexes,'' since VXSLV is comprised of ETF
options.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 62139 (May 19,
2010), 75 FR 29597 (May 26, 2010) (order approving proposal to list
and trade CBOE Gold ETF Volatility Index (``GVZ'') options on CBOE)
and 64551 (May 26, 2011), 76 FR 32000 (June 2, 2011) (order
approving proposal to list and trade options on certain individual
stock based volatility indexes and ETF based volatility indexes).
    \4\ See Rules 12.3, 24.1(bb), 24.4C, 24.5.04, 24.6, 24.9, 24A.7,
24A.8, 24B.7 and 24B.8.
---------------------------------------------------------------------------

Index Design and Calculation

    The calculation of VXSLV is based on the VIX methodology applied to
options on the iShares Silver Trust (``SLV''). The VXSLV index was
introduced by CBOE on March 16, 2011 and has been disseminated in real-
time on every trading day since that time.\5\
---------------------------------------------------------------------------

    \5\ CBOE maintains a micro-site for VXSLV: http://www.cboe.com/micro/VIXETF/VXSLV/.
---------------------------------------------------------------------------

    VXSLV is an up-to-the-minute market estimate of the expected
volatility of SLV calculated by using real-time bid/ask quotes of CBOE
listed SLV options. VXSLV uses nearby and second nearby options with at
least 8 days left to expiration and then weights them to yield a
constant, 30-day measure of the expected (implied) volatility.
    For each contract month, CBOE will determine the at-the-money
strike price. The Exchange will then select the at-the-money and out-
of-the money series with non-zero bid prices and determine the midpoint
of the bid-ask quote for each of these series. The midpoint quote of
each series is then weighted so that the further away that series is
from the at-the-money strike, the less weight that is accorded to the
quote. Then, to compute the index level, CBOE will calculate a
volatility measure for the nearby options and then for the second
nearby options. This is done using the weighted mid-point of the
prevailing bid-ask quotes for all included option series with the same
expiration date. These volatility measures are then interpolated to
arrive at a single, constant 30-day measure of volatility.\6\
---------------------------------------------------------------------------

    \6\ See proposed amendment to Interpretation and Policy .01 to
Rule 24.1 (designating CBOE as the reporting authority for VXSLV).
---------------------------------------------------------------------------

    CBOE will compute values for VXSLV underlying option series on a
real-time basis throughout each trading day, from 8:30 a.m. until 3
p.m. (Chicago time).\7\ VXSLV levels will be calculated by CBOE and
disseminated at 15-second intervals to major market data vendors.
---------------------------------------------------------------------------

    \7\ Trading in SLV options (the index components of VXSLV) on
CBOE closes at 3 p.m. (Chicago time). See Rule 24.6.02. The Exchange
proposes to make non-substantive changes to this rule.
---------------------------------------------------------------------------

Options Trading

    VXSLV options will trade pursuant to the existing trading rules for
other Volatility Index options. VXSLV options will be quoted in index
points and fractions and one point will equal $100. The minimum tick
size for series trading below $3 will be 0.05 ($5.00) and above $3 will
be 0.10 ($10.00). Initially, the Exchange will list in-, at- and out-
of-the-money strike prices and the procedures for adding additional
series are provided in Rule 5.5.\8\ Dollar strikes (or greater) will be
permitted for VXSLV options where the strike price is $200 or less and
$5 or greater strikes will be permitted where the strike price is
greater than $200. The Exchange will not be permitted to list LEAPS on
VXSLV options at strike price intervals less than $1.\9\
---------------------------------------------------------------------------

    \8\ See Rule 5.5(c). ``Additional series of options of the same
class may be opened for trading on the Exchange when the Exchange
deems it necessary to maintain an orderly market, to meet customer
demand or when the market price of the underlying * * * moves
substantially from the initial exercise price or prices.'' For
purposes of this rule, ``market price'' shall mean the implied
forward level based on any corresponding futures price or the
calculated forward value of VXSLV.
    \9\ See Rule 24.9.01(l). The Exchange proposes to amend Rule
24.9.01(l) by expressly providing that ``[t]he Exchange shall not
list LEAPS on Volatility Index options at strike price intervals
less than $1.'' The Exchange notes that when GVZ options were
approved for trading, a substantially similar provision regarding
the strike price intervals for LEAPS was adopted. See Securities
Exchange Act Release No. 62139 (May 19, 2010) 75 FR 29597 (May 26,
2010). However, when the Exchange filed to list options on certain
individual stock based volatility indexes and ETF based volatility
indexes, the Exchange revised the strike setting parameters for
Volatility Index options to permit $1 strikes where the strike price
is $200 or less. The LEAPS strike setting provision was
inadvertently not carried forward at the time Rule 24.9.01(l) was
adopted, but should have been.
---------------------------------------------------------------------------

    Transactions in VXSLV may be effected on the Exchange between the
hours of 8:30 a.m. (Chicago time) and 3 p.m. (Chicago time). The
Exchange proposes to close trading at 3 p.m. (Chicago time) for VXSLV
options because trading in SLV options on CBOE closes at 3 p.m.
(Chicago time).\10\
---------------------------------------------------------------------------

    \10\ See Rule 24.6.02.
---------------------------------------------------------------------------

Exercise and Settlement

    The proposed options will typically expire on the Wednesday that is
30 days prior to the third Friday of the calendar month immediately
following the expiration month (the expiration date of the options used
in the calculation of the index). If the third Friday of the calendar
month immediately following the expiring month is a CBOE holiday, the
expiration date will be 30 days prior to the CBOE business day
immediately preceding that Friday.\11\ For example, November 2011 Vol
VXSLV options would expire on Wednesday, November 16, 2011, exactly 30
days prior to the third Friday of the calendar month immediately
following the expiring month.
---------------------------------------------------------------------------

    \11\ See Rule 24.9(a)(5).
---------------------------------------------------------------------------

    Trading in the expiring contract month will normally cease at 3
p.m. (Chicago time) on the business day immediately preceding the
expiration date. Exercise will result in delivery of cash on the
business day following expiration. VXSLV options will be A.M.-
settled.\12\ The exercise settlement value will be determined by a
Special Opening Quotations (``SOQ'') of VXSLV calculated from the
sequence of opening prices of a single strip of options expiring 30
days after the settlement date. The opening price for any series in
which there is no trade shall be the average of that options' bid price
and ask price as determined at the opening of trading.\13\
---------------------------------------------------------------------------

    \12\ See proposed amendment to Rule 24.9(a)(4) (adding VXSLV to
the list of A.M.-settled index options approved for trading on the
Exchange).
    \13\ See Rule 24.9(a)(5).
---------------------------------------------------------------------------

    The exercise-settlement amount will be equal to the difference
between the exercise-settlement value and the exercise price of the
option, multiplied by $100. When the last trading day is moved because
of a CBOE holiday, the last trading day for expiring options will be
the day immediately preceding the last regularly-scheduled trading day.

Position and Exercise Limits

    The Exchange proposes that the existing position limits for ETF
Based Volatility Index options apply to VXSLV options.\14\ For regular
options trading, the position limit for VXSLV options will be 50,000
contracts on either side of the market and no more than 30,000
contracts in the nearest expiration month. CBOE believes that a 50,000
contract position limit is appropriate due to the fact that SLV
options, which are the underlying components for VXSLV, are among the
most actively traded option classes currently listed. In determining
compliance with these proposed position limits, VXSLV options will not
be aggregated with the SLV options.\15\ Positions in Short Term Options
Series, Quarterly Options Series, and Delayed Start Options Series will
be aggregated with position in options contracts in the same VXSLV
class.\16\ Exercise limits will be

equivalent to the proposed position limits.\17\ VXSLV options will be
subject to the same reporting requirements triggered for other options
dealt in on the Exchange.
---------------------------------------------------------------------------

    \14\ See Rule 24.4C (Position Limits for Individual Stock or ETF
Based Volatility Index Options).
    \15\ See Rule 24.4C(b).
    \16\ See proposed new subparagraph (c) to Rule 24.4C. The
Exchange proposes to add new subparagraph (c) regarding aggregation
to Rule 24.4C. The Exchange notes that when GVZ options were
approved for trading, the position limits for GVZ options were
layered into existing Rule 24.4 (Position Limits for Broad-Based
Index Options). Rule 24.4(e) sets forth an aggregation requirement
substantially similar to proposed new subparagraph (c) to Rule
24.4C. See Securities Exchange Act Release No. 62139 (May 19, 2010),
75 FR 29597 (May 26, 2010). When the Exchange filed to list options
on certain individual stock based volatility indexes and ETF based
volatility indexes, the Exchange removed GVZ from Rule 24.4 and
proposed a new rule setting forth positions limits for these
products. The aggregation requirement from Rule 24.4(e) was
inadvertently not carried forward at the time Rule 24.4C was
adopted, but should have been.
    \17\ See Rule 24.5.
---------------------------------------------------------------------------

    The Exchange proposes that the existing position limits for FLEX
ETF Based Volatility Index options apply to VXSLV options.
Specifically, the position limits for FLEX VXSLV options will be equal
to the position limits for Non-FLEX VXSLV options.\18\ Similarly, the
exercise limits for FLEX VXSLV options will be equivalent to the
position limits set forth in Rule 24.4C. As provided for in Rules
24A.7(d) and 24B.7(d), as long as the options positions remain open,
positions in FLEX VXSLV options that expire on the same day as Non-FLEX
VXSLV Index options, as determined pursuant to Rule 24.9(a)(5), shall
be aggregated with positions in Non-FLEX VXSLV options and shall be
subject to the position limits set forth in Rules 4.11, 24.4, 24.4A,
24.4B, and 24.4C, and the exercise limits set forth in Rules 4.12 and
24.5.
---------------------------------------------------------------------------

    \18\ See Rules 24A.7(a)(5) and 24B.7(a)(5).
---------------------------------------------------------------------------

    The Exchange proposes that the existing Hedge Exemption for ETF
Based Volatility Index options apply to VXSLV options, which would be
in addition to the standard limit and other exemptions available under
Exchange rules, interpretations and policies. The following procedures
and criteria must be satisfied to qualify for an ETF Based Volatility
Index hedge exemption:
     The account in which the exempt option positions are held
(``hedge exemption account'') has received prior Exchange approval for
the hedge exemption specifying the maximum number of contracts which
may be exempt. The hedge exemption account has provided all information
required on Exchange-approved forms and has kept such information
current. Exchange approval may be granted on the basis of verbal
representations, in which event the hedge exemption account shall
within two (2) business days or such other time period designated by
the Department of Market Regulation furnish the Department of Market
Regulation with appropriate forms and documentation substantiating the
basis for the exemption. The hedge exemption account may apply from
time to time for an increase in the maximum number of contracts exempt
from the position limits.
     A hedge exemption account that is not carried by a CBOE
member organization must be carried by a member of a self-regulatory
organization participating in the Intermarket Surveillance Group.
     The hedge exemption account maintains a qualified
portfolio, or will effect transactions necessary to obtain a qualified
portfolio concurrent with or at or about the same time as the execution
of the exempt options positions, of a net long or short position in ETF
Based Volatility Index futures contracts or in options on ETF Based
Volatility Index futures contracts, or long or short positions in ETF
Based Volatility Index options, for which the underlying ETF Based
Volatility Index is included in the same margin or cross-margin product
group cleared at the Clearing Corporation as the ETF Based Volatility
Index option class to which the hedge exemption applies. To remain
qualified, a portfolio must at all times meet these standards
notwithstanding trading activity.
     The exemption applies to positions in ETF Based Volatility
Index options dealt in on the Exchange and is applicable to the
unhedged value of the qualified portfolio. The unhedged value will be
determined as follows: (1) The values of the net long or short
positions of all qualifying products in the portfolio are totaled; (2)
for positions in excess of the standard limit, the underlying market
value (a) of any economically equivalent opposite side of the market
calls and puts in broad-based index options, and (b) of any opposite
side of the market positions in ETF Based Volatility Index futures,
options on ETF Based Volatility Index futures, and any economically
equivalent opposite side of the market positions, assuming no other
hedges for these contracts exist, is subtracted from the qualified
portfolio; and (3) the market value of the resulting unhedged portfolio
is equated to the appropriate number of exempt contracts as follows--
the unhedged qualified portfolio is divided by the correspondent
closing index value and the quotient is then divided by the index
multiplier or 100.
     Only the following qualified hedging transactions and
positions will be eligible for purposes of hedging a qualified
portfolio (i.e., futures and options) pursuant to Interpretation .01 to
Rule 24.4C:
    [cir] Long put(s) used to hedge the holdings of a qualified
portfolio;
    [cir] Long call(s) used to hedge a short position in a qualified
portfolio;
    [cir] Short call(s) used to hedge the holdings of a qualified
portfolio; and
    [cir] Short put(s) used to hedge a short position in a qualified
portfolio.
     The following strategies may be effected only in
conjunction with a qualified stock portfolio:
    [cir] A short call position accompanied by long put(s), where the
short call(s) expires with the long put(s), and the strike price of the
short call(s) equals or exceeds the strike price of the long put(s) (a
``collar''). Neither side of the collar transaction can be in-the-money
at the time the position is established. For purposes of determining
compliance with Rule 4.11 and Rule 24.4C, a collar position will be
treated as one (1) contract;
    [cir] A long put position coupled with a short put position
overlying the same ETF Based Volatility Index and having an equivalent
underlying aggregate index value, where the short put(s) expires with
the long put(s), and the strike price of the long put(s) exceeds the
strike price of the short put(s) (a ``debit put spread position''); and
    [cir] A short call position accompanied by a debit put spread
position, where the short call(s) expires with the put(s) and the
strike price of the short call(s) equals or exceeds the strike price of
the long put(s). Neither side of the short call, long put transaction
can be in-the-money at the time the position is established. For
purposes of determining compliance with Rule 4.11 and Rule 24.4C, the
short call and long put positions will be treated as one (1) contract.
     The hedge exemption account shall:
    [cir] liquidate and establish options, their equivalent or other
qualified portfolio products in an orderly fashion; not initiate or
liquidate positions in a manner calculated to cause unreasonable price
fluctuations or unwarranted price changes.
    [cir] liquidate any options prior to or contemporaneously with a
decrease in the hedged value of the qualified portfolio which options
would thereby be rendered excessive.
    [cir] promptly notify the Exchange of any material change in the
qualified portfolio which materially affects the unhedged value of the
qualified portfolio.
     If an exemption is granted, it will be effective at the
time the decision is communicated. Retroactive exemptions will not be
granted.

Exchange Rules Applicable

    Except as modified herein, the rules in Chapters I through XIX,
XXIV, XXIVA, and XXIVB will equally apply to VXSLV options.
    The Exchange proposes that the margin requirements for VXSLV
options be set at the same levels that apply to ETF Based Volatility
Index options

under Exchange Rule 12.3. Margin of up to 100% of the current market
value of the option, plus 20% of the underlying volatility index value
must be deposited and maintained. Additional margin may be required
pursuant to Exchange Rule 12.10.
    As with other ETF Based Volatility Index options, the Exchange
designates VXSLV options as eligible for trading as Flexible Exchange
Options as provided for in Chapters XXIVA (Flexible Exchange Options)
and XXIVB (FLEX Hybrid Trading System). The Exchange notes that FLEX
VXSLV options will only expire on business days that non-FLEX VXSLV
options expire. This is because the term ``exercise settlement value''
in Rules 24A.4(b)(3) and 24B.4(b)(3), Special Terms for FLEX Index
Options, has the same meaning set forth in Rule 24.9(a)(5). As is
described earlier, Rule 24.9(a)(5) provides that the exercise
settlement value of VXSLV options for all purposes under CBOE Rules
will be calculated as the Wednesday that is thirty days prior to the
third Friday of the calendar month immediately following the month in
which a VXSLV option expires.

Capacity

    CBOE has analyzed its capacity and represents that it believes the
Exchange and the Options Price Reporting Authority have the necessary
systems capacity to handle the additional traffic associated with the
listing of new series that would result from the introduction of VXSLV
options.

Surveillance

    The Exchange will use the same surveillance procedures currently
utilized for each of the Exchange's other Volatility Index and index
options to monitor trading in VXSLV options. The Exchange further
represents that these surveillance procedures shall be adequate to
monitor trading in VXSLV options. For surveillance purposes, the
Exchange will have complete access to information regarding trading
activity in the pertinent underlying securities.

III. Discussion

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\19\
Specifically, the Commission finds that the proposal is consistent with
Section 6(b)(5) of the Act,\20\ which requires, among other things,
that the rules of a national securities exchange be designed to prevent
fraudulent and manipulative acts and practices, 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.
---------------------------------------------------------------------------

    \19\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation.
    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that it has previously approved the listing
and trading of options on volatility indexes that are calculated using
certain individual stock and ETF options listed on CBOE, and CBOE has
genericized certain of its rules to collectively refer to these indexes
as ``Individual Stock Based Volatility Indexes,'' ``ETF Volatility
Based Indexes,'' and ``Volatility Indexes.'' \21\ The Commission notes
that this filing layers VXSLV into CBOE's existing framework for ``ETF
Volatility Based Indexes'' and ``Volatility Indexes,'' since VXSLV is
comprised of ETF options.
---------------------------------------------------------------------------

    \21\ See supra note 3.
---------------------------------------------------------------------------

    As a national securities exchange, CBOE is required under Section
6(b)(1) of the Act \22\ to enforce compliance by its members, and
persons associated with its members, with the provisions of the Act,
Commission rules and regulations thereunder, and its own rules. In
addition, brokers that trade VXSLV options will also be subject to best
execution obligations and FINRA rules.\23\ Applicable Exchange rules
also require that customers receive appropriate disclosure before
trading VXSLV options.\24\ Furthermore, brokers opening accounts and
recommending options transactions must comply with relevant customer
suitability standards.\25\
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f(b)(1).
    \23\ See NASD Rule 2320.
    \24\ See CBOE Rule 9.15.
    \25\ See FINRA Rule 2360(b) and CBOE Rules 9.7 and 9.9.
---------------------------------------------------------------------------

    VXSLV options will trade pursuant to the existing rules for other
Volatility Index options. The Commission believes that the listing
rules proposed by CBOE for VXSLV options are consistent with the Act.
Dollar or greater strikes for VXSLV options where the strike price is
$200 or less and $5 or greater strikes when the strike price is greater
than $200 should provide investors with greater flexibility in the
trading of VXSLV options and further the public interest by allowing
investors to establish positions that are better tailored to meet their
investment objectives.
    The Commission notes that CBOE will compute values for VXSLV
underlying option series on a real-time basis throughout each trading
day, and that VXSLV levels will be calculated by CBOE and disseminated
at 15-second intervals to major market data vendors.
    The Commission believes that the Exchange's proposed position
limits and exercise limits for VXSLV options are appropriate and
consistent with the Act. The Commission notes that the Exchange
proposed that the existing position limits for ETF Based Volatility
Index options will apply to VXSLV options. The Commission also notes
the Exchange stated that SLV options, which are the underlying
components for VXSLV, are among the most actively traded option classes
currently listed. In addition, the Commission notes that the existing
position limits for FLEX ETF Based Volatility Index options will apply
to VXSLV options, and the position and exercise limits for FLEX VXSLV
options will be equal to the position and exercise limits for Non-FLEX
VXSLV options. Further, positions in FLEX VXSLV options that expire on
the same day as Non-FLEX VXSLV options will be aggregated with
positions in Non-FLEX VXSLV options.
    The Commission also notes that the margin requirements for ETF
Based Volatility Index options will apply to options on VXSLV. The
Commission finds this to be reasonable and consistent with the Act.
    Further, the Commission believes that the Exchange's proposal to
allow VXSLV options to be eligible for trading as FLEX options is
consistent with the Act. The Commission previously approved rules
relating to the listing and trading of FLEX options on CBOE, which give
investors and other market participants the ability to individually
tailor, within specified limits, certain terms of those options.\26\
The Commission has also previously approved the listing and trading of
FLEX options on ETF Based Volatility Indexes. The current proposal
incorporates VXSLV options that trade as FLEX options into these
existing rules and regulatory framework.
---------------------------------------------------------------------------

    \26\ See Securities Exchange Act Release No. 31920 (February 24,
1993), 58 FR 12280 (March 3, 1993).
---------------------------------------------------------------------------

    The Commission notes that CBOE represented that it has an adequate
surveillance program to monitor trading of VXSLV options and intends to
apply its existing surveillance program to support the trading of these
options. Finally, in approving the proposed rule change, the Commission
has relied upon the Exchange's representation that it has the necessary
systems capacity to

support new options series that will result from this proposal.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\27\ that the proposed rule change (SR-CBOE-2011-055) be, and
hereby is, approved.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-20912 Filed 8-16-11; 8:45 am]
BILLING CODE 8011-01-P