[Federal Register: December 31, 2009 (Volume 74, Number 250)]
[Rules and Regulations]
[Page 69249-69252]
[DOCID:fr31de09-3]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0686; Directorate Identifier 2009-NM-044-AD;
Amendment 39-16155; AD 2009-26-16]
RIN 2120-AA64

Airworthiness Directives; McDonnell Douglas Corporation Model MD-
11 and MD-11F Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Model MD-11 and MD-11F airplanes. This AD requires a one-time
inspection to determine if wires touch the upper surface of the center
upper auxiliary fuel tank and marking the location, if necessary; a
one-time inspection of all wire bundles above the center upper
auxiliary fuel tank for splices and damage; a one-time inspection for
damage to the fuel vapor barrier seal and upper surface of the center
upper auxiliary fuel tank; and corrective actions, if necessary. This
AD also requires installation of nonmetallic barrier/shield sleeving,
new clamps, new attaching hardware, and a new extruded channel. This AD
results from fuel system reviews conducted by the manufacturer. We are
issuing this AD to reduce the potential of ignition sources inside fuel
tanks, which, in combination with flammable fuel vapors, could result

in fuel tank explosions and consequent loss of the airplane.

DATES: This AD is effective February 4, 2010.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of February 4,
2010.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
3855 Lakewood Boulevard, MC D800-0019, Long Beach, California 90846-
0001; telephone<PHONE_NUMBER>, extension 2; fax<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com.

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 address for the
Docket Office (telephone<PHONE_NUMBER>) is the Document Management
Facility, U.S. Department of Transportation, Docket Operations, M-30,
West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Samuel Lee, Aerospace Engineer,
Propulsion Branch, ANM-140L, FAA, Los Angeles Aircraft Certification
Office, 3960 Paramount Boulevard, Lakewood, California 90712-4137;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an airworthiness directive (AD) that would apply to
certain McDonnell Douglas Corporation Model MD-11 and MD-11F airplanes.
That NPRM was published in the Federal Register on August 19, 2009 (74
FR 41813). That NPRM proposed to require a one-time inspection to
determine if wires touch the upper surface of the center upper
auxiliary fuel tank and marking the location, if necessary; a one-time
inspection of all wire bundles above the center upper auxiliary fuel
tank for splices and damage; a one-time inspection for damage to the
fuel vapor barrier seal and upper surface of the center upper auxiliary
fuel tank; and corrective actions, if necessary. That NPRM also
proposed to require installation of nonmetallic barrier/shield
sleeving, new clamps, new attaching hardware, and a new extruded
channel.

Comments

    We gave the public the opportunity to participate in developing
this AD. We considered the comments received from the two commenters.

Request To Include Boeing Information Notice MD11-28-126 IN 02 in the
Final Rule

    FedEx requests that Boeing Information Notice MD11-28-126 IN 02,
dated July 1, 2009, be incorporated into the final rule. FedEx states
that without including the information notice, FedEx will not be able
to comply with the AD unless an Alternative Method of Compliance (AMOC)
is granted. We partially agree. Boeing issued Information Notice MD11-
28-126 IN 02 to clarify the group applicability. The information notice
is not approved by the FAA; therefore, we do not require the
information notice for accomplishment of work and it is not
incorporated into the requirements of this final rule. Note 1 has been
added to this AD to explain that the information notice provides
clarification of the airplane groups identified in the service
bulletin.

Request for Compliance Time Extension

    KLM requests that we extend the compliance time so that it will
fall during regularly scheduled maintenance periods. KLM states that
the 60-month compliance time specified in the NPRM does not take into
consideration the impact on operators of accessing the area above the
center upper auxiliary fuel tank, which is only opened during 72-month
intervals. KLM states the work-hours and costs specified in the NPRM
are unrealistic because the inspection is not done in the 72-month
period.
    We do not agree with the commenter's request to extend the
compliance time. We have determined that the compliance time, as
proposed, represents the maximum interval of time allowable for the
affected airplanes to continue to safely operate before the
modification is done. Since maintenance schedules vary among operators,
there would be no assurance that the airplane would be modified during
that maximum interval. However, operators may request an AMOC in
accordance with the procedures specified in paragraph (j) of this AD.
We have not changed the AD in this regard.

Explanation of Changes Made to This AD

    We have revised this AD to identify the legal name of the
manufacturer as published in the most recent type certificate data
sheet for the affected airplane models.

Conclusion

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

Costs of Compliance

    We estimate that this AD affects 111 airplanes of U.S. registry.
The following table provides the estimated costs for U.S. operators to
comply with this AD.

                                                                     Estimated Costs
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                                                                                Number of U.S.-
              Action                    Work hours        Average labor          Parts           Cost per product      registered         Fleet cost
                                                          rate per hour                                                airplanes
--------------------------------------------------------------------------------------------------------------------------------------------------------
Inspection/Installation \1\.       136 to 154..........             $80   $9,405 to $12,201..  $20,285 to $24,521.             111   $2,251,635 to
                                                                                $2,721,831.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Depending on airplane configuration.

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

    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.
    You can find our regulatory evaluation and the estimated costs of
compliance 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:

2009-26-16 McDonnell Douglas Corporation: Amendment 39-16155. Docket
No. FAA-2009-0686; Directorate Identifier 2009-NM-044-AD.

Effective Date

    (a) This airworthiness directive (AD) is effective February 4,
2010.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to McDonnell Douglas Corporation Model MD-11
and MD-11F airplanes; certificated in any category; as identified in
Boeing Service Bulletin MD11-28-126, Revision 1, dated June 18,
2009.

    Note 1: Boeing Information Notice MD11-28-126 IN 02, dated July
1, 2009, provides guidance that clarifies the airplane groups
identified in Boeing Service Bulletin MD11-28-126, Revision 1, dated
June 18, 2009.

Subject

    (d) Air Transport Association (ATA) of America Code 28: Fuel.

Unsafe Condition

    (e) This AD results from fuel system reviews conducted by the
manufacturer. The Federal Aviation Administration is issuing this AD
to reduce the potential of ignition sources inside fuel tanks,
which, in combination with flammable fuel vapors, could result in
fuel tank explosions and consequent loss of the airplane.

Compliance

    (f) You are responsible for having the actions required by this
AD performed within the compliance times specified, unless the
actions have already been done.

Actions

    (g) Within 60 months after the effective date of this AD: Do the
actions specified in paragraphs (g)(1), (g)(2), (g)(3), (g)(4), and
(g)(5) of this AD, and do all applicable corrective actions, in
accordance with the Accomplishment Instructions of Boeing Service
Bulletin MD11-28-126, Revision 1, dated June 18, 2009, except as
required by paragraph (h) of this AD. Do all applicable corrective
actions before further flight.
    (1) Do a general visual inspection to determine if wires touch
the upper surface of the center upper auxiliary fuel tank, and mark
the location, as applicable.
    (2) Do a detailed inspection for splices and damage of all wire
bundles above the center upper auxiliary fuel tank.
    (3) Do a detailed inspection for damage (burn marks) on the
upper surface of the center upper auxiliary fuel tank.
    (4) Do a detailed inspection for damage (burn marks) on the fuel
vapor barrier seal.
    (5) Install nonmetallic barrier/shield sleeving, new clamps, new
attaching hardware, and a new extruded channel.
    (h) If damage (burn marks) is found on the upper surface of the
center upper auxiliary fuel tank during any inspection required by
paragraph (g)(3) of this AD, and Boeing Service Bulletin MD11-28-
126, Revision 1, dated June 18, 2009, specifies to contact The
Boeing Company for repair instructions: Before further flight,
repair the auxiliary fuel tank using a method approved in accordance
with the procedures specified in paragraph (j)(3) of this AD.

Actions Accomplished According to Previous Issue of Service Bulletin

    (i) Actions accomplished before the effective date of this AD
according to Boeing Service Bulletin MD11-28-126, dated March 3,
2009, are considered acceptable for compliance with the
corresponding actions specified in this AD.

Alternative Methods of Compliance (AMOCs)

    (j)(1) The Manager, Los Angeles Aircraft Certification Office
(ACO), 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: Samuel Lee, Aerospace Engineer, Propulsion
Branch, ANM-140L, FAA, Los Angeles Aircraft Certification Office,
3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone
(562) 627-5262; fax<PHONE_NUMBER>.
    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your principal maintenance inspector (PMI) or
principal avionics inspector (PAI), as appropriate, or lacking a
principal inspector, your local Flight Standards District Office.
The AMOC approval letter must specifically reference this AD.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair of the center upper auxiliary tank required by
this AD, if it is approved by a Structures Authorized Representative
for the Boeing Commercial Airplanes Delegation Option Authorization
Organization who has been authorized by the Manager, Los Angeles
ACO, to make those findings. For a repair method to be approved, the
repair must meet the certification basis of the airplane, and the
approval must specifically refer to this AD.

Material Incorporated by Reference

    (k) You must use Boeing Service Bulletin MD11-28-126, Revision
1, dated June 18, 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
Boeing Commercial Airplanes, Attention: Data & Services Management,
3855 Lakewood Boulevard, MC D800-0019, Long Beach, California 90846-
0001; telephone<PHONE_NUMBER>, extension 2; fax<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com.
    (3) You may review copies of the service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington. For information on the availability of this material at
the FAA, call<PHONE_NUMBER> or<PHONE_NUMBER>.
    (4) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call<PHONE_NUMBER>, or go

to: http://www.archives.gov/federal_register/code_of_federal_
regulations/ibr_locations.html.

    Issued in Renton, Washington, on December 16, 2009.
Stephen P. Boyd,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-30709 Filed 12-30-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50408-50409]
[FR Doc No: 2013-20133]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP13-1233-000.
    Applicants: Carolina Gas Transmission Corporation.
    Description: Carolina Gas Transmission Corporation submits tariff
filing per 154.203: ACA Compliance Filing to be effective 10/1/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5059.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1234-000.
    Applicants: Kern River Gas Transmission Company.
    Description: Kern River Gas Transmission Company submits tariff
filing per 154.204: 2013 Revisions to IT Agreements to be effective 9/
8/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5074.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1235-000.
    Applicants: Natural Gas Pipeline Company of America.
    Description: Amendment Filing--Renaissance Negotiated Rate LPS RO
to be effective 8/8/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5110.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1236-000.
    Applicants: Natural Gas Pipeline Company of America.
    Description: Amendment Filing--NJR Negotiated Rate LPS RO to be
effective 8/8/2013.

    Filed Date: 8/8/13.
    Accession Number: 20130808-5125.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1237-000.
    Applicants: Natural Gas Pipeline Company of America.
    Description: Amendment Filing--Castleton Negotiated Rate LPS RO to
be effective 8/8/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5151.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1238-000.
    Applicants: Midcontinent Express Pipeline LLC.
    Description: Quicksilver Negotiated Rate to be effective 8/10/2013
under RP13-1238.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5172.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1239-000.
    Applicants: Venice Gathering System, L.L.C.
    Description: Order No. 776 Compliance Filing (ACA Unit Surcharge)
to be effective 10/1/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5182.
    Comments Due: 5 p.m. ET 8/20/13.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.

Filings in Existing Proceedings

    Docket Numbers: RP13-1069-001.
    Applicants: Rockies Express Pipeline LLC.
    Description: Compliance to Neg Rate Filing RP13-1069 to be
effective 7/12/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5171.
    Comments Due: 5 p.m. ET 8/20/13.

    Docket Numbers: RP13-1222-001.
    Applicants: Millennium Pipeline Company, LLC.
    Description: ACA 2013 Errata to be effective 10/1/2013.
    Filed Date: 8/8/13.
    Accession Number: 20130808-5169.
    Comments Due: 5 p.m. ET 8/20/13.

    Any person desiring to protest in any of the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR Sec.  385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: August 12, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-20133 Filed 8-16-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35425-35432]
[FR Doc No: 2016-13040]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77941; File No. SR-NYSEArca-2016-63]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to the Listing and Trading of Shares
of BlackRock Government Collateral Pledge Unit Under NYSE Arca Equities
Rule 8.600

May 27, 2016.
    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 May 19, 2016, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the following
under NYSE Arca Equities Rule 8.600 (``Managed Fund Shares''):
BlackRock Government Collateral Pledge Unit under NYSE Arca Equities
Rule 8.600 [sic]. The proposed rule change is available on the
Exchange's Web site 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 list and trade shares (``Shares'') of the
following under NYSE Arca Equities Rule 8.600,\4\ which governs the
listing and trading of Managed Fund Shares: \5\ BlackRock

Government Collateral Pledge Unit (``Fund''). The Fund is a series of
the BlackRock Collateral Trust (the ``Trust''), a Delaware statutory
trust.\6\ BlackRock Fund Advisors is the investment advisor for the
Fund (``Adviser''). State Street Bank and Trust Company (``State
Street'') is the administrator, custodian and transfer agent for the
Fund. BlackRock Investments, LLC will be the Fund's distributor
(``Distributor'').
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    \4\ The Commission has previously approved listing and trading
on the Exchange of actively managed funds under Rule 8.600. See,
e.g., Securities Exchange Act Release Nos. 57801 (May 8, 2008), 73
FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) (order approving
Exchange listing and trading of twelve actively-managed funds of the
WisdomTree Trust); 66321 (February 3, 2012), 77 FR 6850 (February 9,
2012) (SR-NYSEArca-2011-95) (order approving listing and trading of
PIMCO Total Return Exchange Traded Fund); 66670 (March 28, 2012), 77
FR 20087 (April 3, 2012) (SR-NYSEArca-2012-09) (order approving
listing and trading of PIMCO Global Advantage Inflation-Linked Bond
Strategy Fund).
    \5\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
    \6\ The Trust is registered under the 1940 Act. On April 7,
2016, the Trust filed with the Commission its registration statement
on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a)
(``Securities Act'') and the 1940 Act relating to the Fund (File
Nos. 333-210648 and 811-23154) (the ``Registration Statement''). The
description of the operation of the Trust and the Fund herein is
based, in part, on the Registration Statement. In addition, the
Commission has issued an order granting certain exemptive relief to
the Trust and the Adviser (as defined below) under the 1940 Act. See
Investment Company Act Release No. 29571 (January 24, 2011) (File
No. 812-13601) (``Exemptive Order''). The Fund will be offered in
reliance upon the Exemptive Order issued to the Trust and the
Adviser.
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    Commentary .06 to Rule 8.600 provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio.\7\ In addition,
Commentary .06 further requires that personnel who make decisions on
the open-end fund's portfolio composition must be subject to procedures
designed to prevent the use and dissemination of material nonpublic
information regarding the open-end fund's portfolio. The Adviser is not
registered as a broker-dealer but is affiliated with two broker-
dealers. The Adviser has implemented and will maintain a fire wall with
respect to its affiliated broker-dealers regarding access to
information concerning the composition and/or changes to the Fund's
portfolio. In the event (a) the Adviser becomes registered as a broker-
dealer or newly affiliated with a broker-dealer, or (b) any new adviser
or sub-adviser becomes registered as a broker-dealer or newly
affiliated with a broker-dealer, it will implement a fire wall with
respect to its relevant personnel or such broker-dealer affiliate
regarding access to information concerning the composition and/or
changes to the portfolio, and will be subject to procedures designed to
prevent the use and dissemination of material non-public information
regarding such portfolio.
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    \7\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and its related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act
relating to codes of ethics. This Rule requires investment advisers
to adopt a code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
The Exchange represents that the Adviser and its related personnel
are subject to Investment Advisers Act Rule 204A-1. In addition,
Rule 206(4)-7 under the Advisers Act makes it unlawful for an
investment adviser to provide investment advice to clients unless
such investment adviser has (i) adopted and implemented written
policies and procedures reasonably designed to prevent violation, by
the investment adviser and its supervised persons, of the Advisers
Act and the Commission rules adopted thereunder; (ii) implemented,
at a minimum, an annual review regarding the adequacy of the
policies and procedures established pursuant to subparagraph (i)
above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
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BlackRock Government Collateral Pledge Unit
Principal Investments
    According to the Registration Statement, the Fund's investment
objective will be to seek to provide as high a level of current income
as is consistent with liquidity and minimum volatility of principal.
The Fund will seek to achieve its investment objective by investing,
under normal circumstances,\8\ at least 80% of its net assets in a
portfolio of U.S. dollar-denominated short-term government securities
and other money market securities eligible for investment by U.S.
government money market funds that seek to maintain a stable net asset
value (including indirect investments through the ``Underlying Funds'',
as defined below).
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    \8\ The term ``under normal circumstances'' includes, but is not
limited to, the absence of extreme volatility or trading halts in
the fixed income securities markets or the financial markets
generally; circumstances under which the Fund's investments are made
for temporary defensive purposes; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance.
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    Under normal circumstances, the Fund intends to invest a
substantial portion of its assets in the following government money
market funds (each, an ``Underlying Fund'' and collectively, the
``Underlying Funds''), which principally invest in short-term U.S.
Treasury bills, notes and other obligations issued or guaranteed as to
principal and interest by the U.S. Government or its agencies or
instrumentalities, and repurchase agreements secured by such
obligations or cash: \9\ FedFund and T-Fund (each, a series of
BlackRock Liquidity Funds); and BlackRock Premier Government
Institutional Fund and BlackRock Select Treasury Strategies
Institutional Fund (each, a series of Funds For Institutions Series).
The Adviser may add, eliminate or replace any or all Underlying Funds
at any time. Any additions to or replacements for the Underlying Funds
will also be government money market funds with substantially similar
investment characteristics as those described herein applicable to the
Underlying Funds. The Adviser or its affiliates may advise the
Underlying Funds. The Fund generally will allocate and reallocate its
assets among the Underlying Funds on a monthly basis on an approximate
pro rata basis based on the amount of net assets of each Underlying
Fund, subject to minimum investment amounts or other constraints on the
Underlying Funds.
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    \9\ Each Underlying Fund is a ``government money market fund,''
as defined in Rule 2a-7 under the 1940 Act and seeks to maintain a
stable NAV of $1.00. The Fund, however, will not be a money market
fund and will not seek to maintain a stable NAV of $1.00.
---------------------------------------------------------------------------

    According to the Registration Statement, the Underlying Funds
invest in securities maturing in 397 days (13 months) or less (with
certain exceptions) and their portfolios will have a dollar-weighted
average maturity of 60 days or less and a dollar-weighted average life
of 120 days or less.
    The Fund and certain Underlying Funds may invest in various types
of U.S. government obligations. U.S. government obligations are a type
of bond and include securities issued or guaranteed as to principal and
interest by the U.S. government, its agencies or instrumentalities.
Payment of principal and interest on U.S. government obligations (i)
may be backed by the full faith and credit of the United States or (ii)
may be backed solely by the issuing or guaranteeing agency or
instrumentality itself (as with Federal National Mortgage Association
(``Fannie Mae''), Federal Home Loan Mortgage Corporation (``Freddie
Mac'') and Federal Home Loan Bank (``FHLB'') notes). In the latter
case, the Fund or an Underlying Fund must look principally to the
agency or instrumentality issuing or guaranteeing the obligation for
ultimate repayment, which agency or instrumentality may be privately
owned.
    The Fund and the Underlying Funds may invest in variable and
floating rate instruments.

    The Fund and the Underlying Funds may transact in securities on a
when-issued, delayed delivery or forward commitment basis. The purchase
or sale of securities on a when-issued or delayed delivery basis or
through a forward commitment involves the purchase or sale of
securities at an established price with payment and delivery taking
place in the future.
    The Fund and the Underlying Funds may invest in repurchase
agreements that are secured by either obligations issued or guaranteed
as to principal and interest by the U.S. government or agencies or
instrumentalities, or by cash.
    The securities purchased by the Fund will comply with the quality
and eligibility requirements of Rule 2a-7 under the 1940 Act. The
securities purchased by the Underlying Funds will comply with all
requirements of Rule 2a-7 and other rules of the Commission applicable
to money market funds that seek to maintain a stable net asset value
per share (``NAV''). The Fund itself will invest only in money market
securities eligible for investment for funds that comply with Rule 2a-7
but will not be subject to other requirements of Rule 2a-7 applicable
to money market funds that seek to maintain a stable NAV.
Other Investments
    While the Fund, under normal circumstances, will invest at least
80% of its net assets in the securities and financial instruments
described above, the Fund may invest its remaining assets in other
assets and financial instruments, as described below.
    The Fund and the Underlying Funds may also invest in certain U.S.
government obligations other than those referenced in Principal
Investments above, namely Treasury receipts where the principal and
interest components are traded separately under the Separate Trading of
Registered Interest and Principal of Securities (STRIPS) program.
    The Fund and certain Underlying Funds may invest in reverse
repurchase agreements.
    The Fund may invest in the securities of other investment companies
(including money market funds) to the extent permitted by law,
regulation, exemptive order or Commission staff guidance.
Investment Restrictions
    The Fund will be classified as ``diversified.'' \10\ With respect
to 75% of the Fund's total assets, a ``diversified'' fund is limited by
the 1940 Act such that it does not invest more than 5% of its total
assets in securities of any one issuer and does not acquire more than
10% of the outstanding voting securities of any one issuer (excluding
cash and cash items, government securities, and securities of other
investment companies). The remaining 25% of the Fund's total assets may
be invested in a single issuer or a number of issuers.
---------------------------------------------------------------------------

    \10\ The diversification standard is set forth in Section
5(b)(1) of the 1940 Act.
---------------------------------------------------------------------------

    The Fund intends to maintain the required level of diversification
and otherwise conduct its operations so as to qualify as a regulated
investment company for purposes of the U.S. Internal Revenue Code of
1986, as amended.\11\
---------------------------------------------------------------------------

    \11\ 26 U.S.C. 851.
---------------------------------------------------------------------------

    The Fund may invest up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment). Each
Underlying Fund may invest up to an aggregate amount of 5% of its net
assets in illiquid securities. The Fund will monitor its portfolio
liquidity on an ongoing basis to determine whether, in light of current
circumstances, an adequate level of liquidity is being maintained, and
will consider taking appropriate steps in order to maintain adequate
liquidity if, through a change in values, net assets, or other
circumstances, more than 15% of the Fund's net assets are held in
illiquid assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.\12\
---------------------------------------------------------------------------

    \12\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the Securities Act).
---------------------------------------------------------------------------

    The Fund will not invest in futures, options, swaps or forward
contracts.
    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to enhance leverage. That is,
while the Fund will be permitted to borrow as permitted under the 1940
Act, the Fund's investments will not be used to seek performance that
is the multiple or inverse multiple (e.g., 2Xs and 3Xs) of the Fund's
primary broad-based securities benchmark index (as defined in Form N-
1A).\13\
---------------------------------------------------------------------------

    \13\ The Fund's broad-based securities benchmark index will be
identified in a future amendment to the Registration Statement
following the Fund's first full calendar year of performance.
---------------------------------------------------------------------------

Net Asset Value
    According to the Registration Statement, the NAV for the Fund's
Shares will generally be calculated as of 12:00 p.m., Eastern time, on
each day the New York Stock Exchange (``NYSE'') is open for trading.
Valuation of securities held by the Fund will be as follows.
    Shares of the Underlying Funds normally will be valued at fair
value based on their NAV from the prior business day, which is the most
recent observable valuation of the Underlying Funds as of the time the
NAV for the Fund's Shares is determined [sic]
    Fixed-income securities normally will be valued based on current
bid-side market quotations (if readily available), last available bid
prices, or evaluated prices as of 12:00 p.m., Eastern time supplied by
the Fund's approved independent third-party pricing services, each in
accordance with policies and procedures approved by the Board (the
``Valuation Procedures''). The amortized cost method of valuation may
be used with respect to debt obligations with sixty days or less
remaining to maturity unless BlackRock determines in good faith that
such method does not represent fair value. Certain fixed-income
investments may be valued based on valuation models that consider the
estimated cash flows of each tranche of the entity, establish a
benchmark yield and develop an estimated tranche-specific spread to the
benchmark yield based on the unique attributes of the tranche.
    Variable and floating rate instruments, repurchase agreements and
reverse repurchase agreements will be valued at prices supplied by
approved pricing services which is generally based on bid-side
quotations.
    Prices obtained from independent third-party pricing services,
broker-dealers or market makers to value the Fund's securities and
other assets and liabilities will be based on information available at
the time the Fund values its assets and liabilities.
    In the event that application of the methods of valuation discussed
above result in a price for a security which is deemed not to be
representative of the

fair market value of such security, the security will be valued by,
under the direction of or in accordance with a method approved by the
Board, and in accordance with the 1940 Act, as reflecting fair value.
    When market quotations are not readily available or are believed in
good faith by BlackRock to be unreliable, the Fund's investments will
be valued at fair value (``Fair Value Assets''). Fair Value Assets will
be valued by BlackRock in accordance with the Valuation Procedures.
BlackRock may reasonably conclude that a market quotation is not
readily available or is unreliable if, among other things, a security
or other asset or liability does not have a price source due to its
complete lack of trading, if BlackRock believes in good faith that a
market quotation from a broker-dealer or other source is unreliable
(e.g., where it varies significantly from a recent trade, or no longer
reflects the fair value of the security or other asset or liability
subsequent to the most recent market quotation), or where the security
or other asset or liability is only thinly traded or due to the
occurrence of a significant event subsequent to the most recent market
quotation. For this purpose, a ``significant event'' is deemed to occur
if BlackRock determines, in its reasonable business judgment, that an
event has occurred after the close of trading for an asset or liability
but prior to or at the time of pricing the Fund's assets or
liabilities, and that the event is likely to cause a material change to
the closing market price of the assets or liabilities held by the Fund.
    BlackRock, with input from the BlackRock Investment Strategy Group,
will submit its recommendations regarding the valuation and/or
valuation methodologies for Fair Value Assets to BlackRock's Valuation
Committee. The BlackRock Valuation Committee may accept, modify or
reject any recommendations. In addition, the Fund's accounting agent
periodically endeavors to confirm the prices it receives from all
third-party pricing services, index providers and broker-dealers, and,
with the assistance of BlackRock, to regularly evaluate the values
assigned to the securities and other assets and liabilities of the
Fund. The pricing of all Fair Value Assets is subsequently reported to
and, where appropriate, ratified by the Board. When determining the
price for a Fair Value Asset, the BlackRock Valuation Committee (or
BlackRock's Pricing Group) will seek to determine the price that the
Fund might reasonably expect to receive upon the current sale of that
asset or liability in an arm's-length transaction on the date on which
the assets or liabilities are being valued, and does not seek to
determine the price that the Fund might expect to receive for selling
the asset, or the cost of extinguishing a liability, at a later time or
if it holds the asset or liability to maturity. Fair value
determinations will be based upon all available factors that the
BlackRock Valuation Committee (or BlackRock's Pricing Group) deems
relevant at the time of the determination, and may be based on
analytical values determined by BlackRock using proprietary or third-
party valuation models.
    Fair value represents a good faith approximation of the value of an
asset or liability. When determining the fair value of an asset, one or
more of a variety of fair valuation methodologies may be used
(depending on certain factors, including the asset type). For example,
the asset may be priced on the basis of the original cost of the
investment or, alternatively, using proprietary or third-party models
(including models that rely upon direct portfolio management pricing
inputs and which reflect the significance attributed to the various
factors and assumptions being considered). Prices of actual, executed
or historical transactions in the relevant asset and/or liability (or
related or comparable assets and/or liabilities) or, where appropriate,
an appraisal by a third-party experienced in the valuation of similar
assets and/or liabilities, may also be used as a basis for establishing
the fair value of an asset or liability.
Creation and Redemption of Shares
    According to the Registration Statement, the Trust will issue and
sell Shares of the Fund only in Creation Units of 50,000 Shares (though
this number may change from time to time, including prior to the
listing of the Fund) on a continuous basis through the Distributor or
its agent, without a sales load, at a price based on the Fund's NAV
next determined after receipt, on any business day, of an order
received by the Distributor or its agent in proper form. On days when
the Exchange or the bond markets close earlier than normal, the Fund
may require orders to be placed earlier in the day.
    The consideration for purchase of Creation Units of the Fund will
generally be cash. However, in some cases the consideration consists of
an in-kind deposit of a designated portfolio of securities (including
any portion of such securities for which cash may be substituted)
(``Deposit Securities'') and the Cash Component computed as described
below. Together, the Deposit Securities and the Cash Component will
constitute the ``Fund Deposit,'' which will be applicable (subject to
possible amendment or correction) to creation requests received in
proper form. The Fund Deposit represents the minimum initial and
subsequent investment amount for a Creation Unit of the Fund.
    The ``Cash Component'' will be an amount equal to the difference
between the NAV of the Shares (per Creation Unit) and the ``Deposit
Amount,'' which will be an amount equal to the market value of the
Deposit Securities, and serve to compensate for any differences between
the NAV per Creation Unit and the Deposit Amount.
    The Adviser will make available through the NSCC on each business
day prior to the opening of business on the Exchange, the list of names
and the required number or par value of each Deposit Security and the
amount of the Cash Component to be included in the current Fund Deposit
(based on information as of the end of the previous business day for
the Fund). Such Fund Deposit will be applicable, subject to any
adjustments as described below, to purchases of Creation Units of
Shares of the Fund until the Fund's deadline for the submission of
purchase orders (the Fund's ``Cutoff Time'').
    The Fund reserves the right to permit or require the substitution
of a ``cash in lieu'' amount to be added to the Cash Component to
replace any Deposit Security that may not be available in sufficient
quantity for delivery or that may not be eligible for transfer through
the Depository Trust Company (``DTC'') or the clearing process (as
discussed below) or that the Authorized Participant is not able to
trade due to a trading restriction. The Fund also reserves the right to
permit or require a ``cash in lieu'' amount in certain circumstances,
including circumstances in which the delivery of the Deposit Security
by the ``Authorized Participant'' (as defined below) would be
restricted under applicable securities or other local laws or in
certain other situations. As noted above, Creation Units currently will
be available only for cash purchases.
    To be eligible to place orders with the Distributor and to create a
Creation Unit of the Fund, an entity must be: (i) A ``Participating
Party,'' i.e., a broker-dealer or other participant in the clearing
process through the Continuous Net Settlement System of the NSCC (the
``Clearing Process''), a clearing agency that is registered with the
Commission, or (ii) a DTC Participant, and must have executed an
agreement with the Distributor, with respect to creations

and redemptions of Creation Units (``Authorized Participant
Agreement''). A Participating Party or DTC Participant who has executed
an Authorized Participant Agreement is referred to as an ``Authorized
Participant.''
    Creation Units may be purchased only by or through an Authorized
Participant.
    To initiate an order for a Creation Unit, an Authorized Participant
must submit to the Distributor or its agent an irrevocable order to
purchase Shares of the Fund, in proper form, generally before 12:00
p.m., Eastern time on any business day to receive that day's NAV.
    Shares of the Fund may be redeemed by Authorized Participants only
in Creation Units at their NAV next determined after receipt of a
redemption request in proper form by the Distributor or its agent and
only on a business day.
    The Fund generally will redeem Creation Units solely for cash;
however, the Fund reserves the right to distribute securities in-kind
as payment for Creation Units being redeemed.
    Redemption requests for Creation Units of the Fund must be
submitted to the Distributor by or through an Authorized Participant.
An Authorized Participant must submit an irrevocable request to redeem
shares of the Fund generally before 12:00 p.m., Eastern time on any
business day in order to receive that day's NAV.
    The Adviser will make available through the NSCC, prior to the
opening of business on the Exchange on each business day, the
designated portfolio of securities (including any portion of such
securities for which cash may be substituted) that will be applicable
(subject to possible amendment or correction) to redemption requests
received in proper form on that day (``Fund Securities''), and an
amount of cash (the ``Cash Amount''). Such Fund Securities and the
corresponding Cash Amount (each subject to possible amendment or
correction) are applicable in order to effect redemptions of Creation
Units of the Fund until the Fund's Cutoff Time. Fund Securities
received on redemption may not be identical to Deposit Securities that
are applicable to creations of Creation Units.
    If redemptions are not paid in cash, the redemption proceeds for a
Creation Unit generally will consist of Fund Securities, plus the Cash
Amount, which is an amount equal to the difference between the NAV of
the Shares being redeemed, as next determined after the receipt of a
redemption request in proper form, and the value of Fund Securities,
less a redemption transaction fee.
    The right of redemption may be suspended or the date of payment
postponed with respect to the Fund: (i) For any period during which the
Exchange is closed (other than customary weekend and holiday closings);
(ii) for any period during which trading on the Exchange is suspended
or restricted; (iii) for any period during which an emergency exists as
a result of which disposal of the shares of the Fund's portfolio
securities or determination of its net asset value is not reasonably
practicable; or (iv) in such other circumstance as is permitted by the
Commission.
Availability of Information
    The Fund's Web site (www.blackrock.com), which will be publicly
available prior to the public offering of Shares, will include a form
of the prospectus for the Fund that may be downloaded. The Fund's Web
site will include additional quantitative information updated on a
daily basis, including, for the Fund, (1) daily trading volume, the
prior business day's reported closing price, NAV and mid-point of the
bid/ask spread at the time of calculation of such NAV (the ``Bid/Ask
Price''),\14\ and a calculation of the premium and discount of the Bid/
Ask Price against the NAV, and (2) data in chart format displaying the
frequency distribution of discounts and premiums of the daily Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. On each business day, before commencement
of trading in Shares in the Core Trading Session on the Exchange, the
Fund will disclose on its Web site the Disclosed Portfolio as defined
in NYSE Arca Equities Rule 8.600(c)(2) that will form the basis for the
Fund's calculation of NAV at the end of the business day.\15\
---------------------------------------------------------------------------

    \14\ The Bid/Ask Price of the Fund's Shares will be determined
using the mid-point of the highest bid and the lowest offer on the
Exchange as of the time of calculation of the Fund's NAV. The
records relating to Bid/Ask Prices will be retained by the Fund and
its service providers.
    \15\ Under accounting procedures to be followed by the Fund,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T+1''). Accordingly,
the Fund will be able to disclose at the beginning of the business
day the portfolio that will form the basis for the NAV calculation
at the end of the business day.
---------------------------------------------------------------------------

    On a daily basis, the Adviser will disclose on the Fund's Web site
the following information regarding each portfolio holding of the Fund
and the Underlying Funds, as applicable to the type of holding: Ticker
symbol, CUSIP number or other identifier, if any; a description of the
holding (including the type of holding); the identity of the security
or other asset or instrument underlying the holding, if any; quantity
held (as measured by, for example, par value, notional value or number
of shares, contracts or units); maturity date, if any; coupon rate, if
any; effective date, if any; market value of the holding; and the
percentage weighting of the holding in the Fund's or Underlying Fund's
portfolio. The Web site information will be publicly available at no
charge.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and Form N-CSR
and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder
Reports will be available free upon request from the Trust, and those
documents and the Form N-CSR and Form N-SAR may be viewed on-screen or
downloaded from the Commission's Web site at www.sec.gov. Information
regarding market price and trading volume for the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. Quotation and last sale information for the
Shares will be available via the Consolidated Tape Association
(``CTA'') high-speed line. Price information for the Underlying Funds,
other money market funds, STRIPS, U.S. government obligations, variable
and floating rate instruments, repurchase agreements and reverse
repurchase agreements will be available from major market data vendors.
In addition, the Portfolio Indicative Value (``PIV''), as defined in
NYSE Arca Equities Rule 8.600 (c)(3), will be widely disseminated by
one or more major market data vendors at least every 15 seconds during
the Core Trading Session.\16\ The dissemination of the PIV, together
with the Disclosed Portfolio, will allow investors to determine the
value of the underlying portfolio of the Fund on a daily basis and
provide a close estimate of that value throughout the trading day.
---------------------------------------------------------------------------

    \16\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available PIVs
taken from CTA or other data feeds.
---------------------------------------------------------------------------

Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to

halt or suspend trading in the Shares of the Fund. Trading in Shares of
the Fund will be halted if the circuit breaker parameters in NYSE Arca
Equities Rule 7.12 have been reached.\17\ Trading also 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 securities and/
or the financial instruments comprising the Disclosed Portfolio of the
Fund; or (2) whether other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly market are
present. Trading in the Shares will be subject to NYSE Arca Equities
Rule 8.600(d)(2)(D), which sets forth circumstances under which Shares
of the Fund may be halted [sic]
---------------------------------------------------------------------------

    \17\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

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 in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. As provided in
NYSE Arca Equities Rule 7.6, the minimum price variation (``MPV'') for
quoting and entry of orders in equity securities traded on the NYSE
Arca Marketplace is $0.01, with the exception of securities that are
priced less than $1.00 for which the MPV for order entry is $0.0001.
    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600. The Exchange represents
that, for initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 \18\ under the Act, as provided by NYSE Arca
Equities Rule 5.3. A minimum of 100,000 Shares of the Fund will be
outstanding at the commencement of trading on the Exchange. The
Exchange will obtain a representation from the issuer of the Shares
that the NAV per Share will be calculated daily and that the NAV and
the Disclosed Portfolio of the Fund will be made available to all
market participants at the same time.
---------------------------------------------------------------------------

    \18\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances administered by the Exchange, as
well as cross-market surveillances administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange,
which are designed to detect violations of Exchange rules and
applicable federal securities laws. 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 federal securities laws applicable to trading on the
Exchange.\19\
---------------------------------------------------------------------------

    \19\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. 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 or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares with other
markets or other entities that are members of the Intermarket
Surveillance Group (``ISG''),\20\ and the Exchange or FINRA, on behalf
of the Exchange, or both, may obtain trading information regarding
trading in the Shares from such markets or entities. In addition, the
Exchange may obtain information regarding trading in the Shares from
markets or other entities that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
FINRA, on behalf of the Exchange, is able to access, as needed, trade
information for certain fixed income securities held by the Fund
reported to FINRA's Trade Reporting and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

    \20\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding
(a) the description of the portfolio, (b) limitations on portfolio
holdings or reference assets, or (c) the applicability of Exchange
rules and surveillance procedures shall constitute continued listing
requirements for listing the Shares of the Fund on the Exchange.
    The issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. If the Fund is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Equities Rule 5.5(m).
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit (``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 Creation Units (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) the risks involved in
trading the Shares during the Opening and Late Trading Sessions when an
updated PIV will not be calculated or publicly disseminated; (4) how
information regarding the PIV and the Disclosed Portfolio is
disseminated; (5) the requirement that ETP Holders deliver a prospectus
to investors purchasing newly issued Shares prior to or concurrently
with the confirmation of a transaction; 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.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. The
Bulletin will also disclose that the NAV for the Shares will generally
be calculated as of 12:00 p.m., Eastern time, on each day the NYSE is
open for trading.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \21\ that an exchange have rules that
are 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, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. The Exchange has in place surveillance procedures that are
adequate to properly monitor trading in the Shares in all trading
sessions and to deter and detect violations of Exchange rules and
federal securities laws applicable to trading on the Exchange.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest.
The Adviser is not registered as a broker-dealer but is affiliated with
a broker-dealer. The Adviser has implemented and will maintain a fire
wall with respect to its affiliated broker-dealers regarding access to
information concerning the composition and/or changes to the Fund's
portfolio. The Exchange will obtain a representation from the issuer of
the Shares that the NAV per Share will be calculated daily and that the
NAV and the Disclosed Portfolio will be made available to all market
participants at the same time.
    The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares with other
markets or other entities that are members of the ISG, and the Exchange
or FINRA, on behalf of the Exchange, or both, may obtain trading
information regarding trading in the Shares from such markets or
entities. In addition, the Exchange may obtain information regarding
trading in the Shares from markets or other entities that are members
of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. FINRA, on behalf of the Exchange, is
able to access, as needed, trade information for certain fixed income
securities held by the Fund reported to FINRA's TRACE.
    Information regarding market price and trading volume for the
Shares will be continually available on a real-time basis throughout
the day on brokers' computer screens and other electronic services.
Information regarding the previous day's closing price and trading
volume information for the Shares will be published daily in the
financial section of newspapers. Quotation and last sale information
for the Shares will be available via the CTA high-speed line. Price
information for the Underlying Funds, investment company securities,
STRIPS, U.S. government obligations, variable and floating rate
instruments, repurchase agreements, and reverse repurchase agreements
will be available from major market data vendors. In addition, the PIV,
as defined in NYSE Arca Equities Rule 8.600 (c)(3), will be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Core Trading Session. Moreover, prior to the
commencement of trading, the Exchange will inform its ETP Holders in an
Information Bulletin of the special characteristics and risks
associated with trading the Shares. Trading in Shares of the Fund will
be halted if the circuit breaker parameters in NYSE Arca Equities Rule
7.12 have been reached or because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable, and trading in the Shares will be subject to NYSE Arca
Equities Rule 8.600(d)(2)(D), which sets forth circumstances under
which Shares of the Fund may be halted. In addition, as noted above,
investors will have ready access to information regarding the Fund's
holdings, the PIV, the Disclosed Portfolio, and quotation and last sale
information for the Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an additional type of actively-managed exchange-traded product that
principally holds U.S. government securities and other money market
securities that will enhance competition among market participants, to
the benefit of investors and the marketplace. As noted above, the
Exchange has in place surveillance procedures relating to trading in
the Shares and may obtain information via ISG from other exchanges that
are members of ISG or with which the Exchange has entered into a
comprehensive surveillance sharing agreement. In addition, as noted
above, investors will have ready access to information regarding the
Fund's holdings, the PIV, the Disclosed Portfolio, and quotation and
last sale information for the Shares.

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 Exchange notes that the
proposed rule change will facilitate the listing and trading of an
additional type of actively-managed exchange-traded product that
principally holds U.S. government securities and other money market
securities as discussed above, which will enhance competition among
market participants, to the benefit of investors and the marketplace.

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_ADDRESS>Please include
File Number SR-NYSEArca-2016-63 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2016-63. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the

Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of 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-2016-63 and should
be submitted on or before June 23, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-13040 Filed 6-1-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 115 (Friday, June 14, 2013)]
[Notices]
[Pages 35940-35942]
[FR Doc No: 2013-14168]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2010-D-0616]

Guidance for Industry on Codevelopment of Two or More New
Investigational Drugs for Use in Combination; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The FDA is announcing the availability of a guidance for
industry entitled ``Codevelopment of Two or More New Investigational
Drugs for Use

in Combination.'' This guidance is intended to assist sponsors in the
codevelopment of two or more investigational drugs that have not been
previously developed for any indication (i.e., ``new investigational
drugs'') to be used in combination to treat a disease or condition. The
guidance provides recommendations and advice on how to address certain
scientific and regulatory issues that may arise during codevelopment of
two or more new investigational drugs. It is not intended to apply to
development of combinations of already approved drugs or to development
of a single new investigational drug to be used in combination with an
already approved drug or drugs. The guidance is not intended to apply
to biological products regulated by the Center for Biologics Evaluation
and Research or medical devices.

DATES: Submit either electronic or written comments on Agency guidance
at any time.

ADDRESSES: Submit written requests for single copies of the guidance to
the Division of Drug Information, Center for Drug Evaluation and
Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg.
51, Rm. 2201, Silver Spring, MD 20993-0002. Send one self-addressed
adhesive label to assist that office in processing your requests. See
the SUPPLEMENTARY INFORMATION section for electronic access to the
draft guidance document.
    Submit electronic comments on the draft guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Colleen Locicero, Center for Drug
Evaluation and Research, Food and Drug Administration, Bldg. 22, Rm.
4216, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002, 301-796-
1114.

SUPPLEMENTARY INFORMATION:

I. Background

    The FDA is announcing the availability of a guidance for industry
entitled ``Codevelopment of Two or More New Investigational Drugs for
Use in Combination.'' The guidance is intended to assist sponsors in
the codevelopment \1\ of two or more investigational drugs that have
not been previously developed for any indication (i.e., ``new
investigational drugs'') to be used in combination to treat a disease
or condition. Recent scientific advances have increased our
understanding of the pathophysiological processes that underlie many
complex diseases, such as cancer, cardiovascular disease, and
infectious diseases. This increased understanding has provided further
impetus to develop therapeutic approaches that rely primarily or
exclusively on combinations of drugs directed at multiple therapeutic
targets to improve treatment response and minimize development of
resistance. In settings in which combination therapy provides
significant therapeutic advantages, there is growing interest in the
development of combinations of investigational drugs not previously
developed for any indication.
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    \1\ The term codevelopment as used in the guidance refers to the
concurrent development of two or more new investigational drugs that
are intended to be used in combination to treat a disease or
condition. A sponsor may elect to codevelop two or more new
investigational drugs intended to be marketed as individual agents
or to be used in combination as a fixed-combination or copackaged
drug.
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    Because existing developmental and regulatory pathways focus
primarily on assessment of the safety and effectiveness of a single new
investigational drug acting alone, or in combination with an already
approved drug, FDA believes guidance is needed to assist sponsors in
the codevelopment of two or more new investigational drugs. This
guidance is intended to describe a high-level, generally applicable
approach. It describes the criteria for determining when codevelopment
may be an appropriate option, makes recommendations about nonclinical
and clinical development strategies, and addresses certain regulatory
process issues. The guidance is not intended to apply to biological
products regulated by the Center for Biologics Evaluation and Research
or medical devices.
    In the Federal Register of December 15, 2010 (75 FR 78259), FDA
announced the availability of a draft of this guidance. FDA received a
number of comments, including multiple comments seeking clarification
of the scope and applicability of the guidance, the criteria for
determining when codevelopment is appropriate, the evidentiary
expectations for the individual new investigational drugs and their use
in combination, and the types of regulatory submissions needed for
codeveloped products. FDA has carefully considered these comments. The
final guidance clarifies the criteria for determining when
codevelopment is appropriate and elaborates on strategies for clinical
development of the individual new investigational drugs and their use
in combination. It also provides a detailed discussion of
considerations for submitting Investigational New Drug Applications
(INDs) and New Drug Applications (NDAs) . The final guidance clarifies
the scope of the drugs to which it applies; it uses the term ``new
investigational drug'' to refer to drugs that have not previously been
developed for any indication. We have also revised the title of the
guidance to reflect this term.
    This guidance is being issued consistent with FDA's good guidance
practices regulation (21 CFR 10.115). The guidance represents the
Agency's current thinking on development of two or more new
investigational drugs for use in combination. It does not create or
confer any rights for or on any person and does not operate to bind FDA
or the public. An alternative approach may be used if such approach
satisfies the requirements of the applicable statutes and regulations.

II. Comments

    Interested persons may submit either electronic comments regarding
this document to http://www.regulations.gov or written comments to the
Division of Dockets Management (see ADDRESSES). It is only necessary to
send one set of comments. Identify comments with the docket number
found in brackets in the heading of this document. Received comments
may be seen in the Division of Dockets Management between 9 a.m. and 4
p.m., Monday through Friday, and will be posted to the docket at http://www.regulations.gov.

III. The Paperwork Reduction Act of 1995

    This guidance refers to previously approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
collections of information in 21 CFR part 312 have been approved under
OMB control number 0910-0014. The collections of information in 21 CFR
part 314 have been approved under OMB control number 0910-0001. The
collections of information in 21 CFR 201.56 and 201.57 have been
approved under OMB control number 0910-0572. The collections of
information in 21 CFR 310.305 and 314.80 have been approved under OMB
control number 0910-0230. The collections of information in 21 CFR
208.20, 208.24, and 314.70(b) have been approved under OMB control
number 0910-0393.

IV. Electronic Access

    Persons with access to the Internet may obtain the document at
either http://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/default.htm or http://www.regulations.gov.

    Dated: June 11, 2013.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2013-14168 Filed 6-13-13; 8:45 am]
BILLING CODE 4160-01-P