[Federal Register: September 5, 2008 (Volume 73, Number 173)]
[Notices]
[Page 51870-51872]
[DOCID:fr05se08-90]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58436; File No. SR-DTC-2008-11]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of a Proposed Rule Change To Implement a New Service
to Allow Issuers To Track and Limit the Number of Beneficial Owners for
an Individual CUSIP

 August 27, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 6, 2008, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
primarily by DTC. 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).
---------------------------------------------------------------------------

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

    The purpose of the rule change is to implement a new service that
will allow issuers, either themselves or through an issuer-designated
administrator, to track and limit the number of beneficial owners for
an individual CUSIP. This service would be called the Security Holder
Tracking Service (``SH Tracking Service'').

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

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

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

1. Background
    A group of investment banks requested that DTC assist them in
providing greater liquidity and access to capital for securities of
closely held

issuers that are traded in private equities markets.\2\ Specifically,
this group asked DTC to build a system that would allow these closely
held securities to be eligible for DTC's depository services while
allowing the issuer, typically through an agent, to monitor and control
the number and character (e.g., qualified institutional buyers or
``QIBs'') of beneficial owners of its securities.\3\ Currently, the
processing and settlement of transactions of such issues is
accomplished in a physical environment outside DTC.\4\
---------------------------------------------------------------------------

    \2\ Among the securities at issue are those that are commonly
referred to as ``Rule 144A securities.'' These securities are
transacted pursuant to the terms of Rule 144A (17 CFR 230.144A),
which provides a safe harbor from the registration requirements of
Section 5 of the Securities Act of 1933. 15 U.S.C. 77e.
    \3\ Issuers must control the number of beneficial owners
pursuant to certain regulatory registration and reporting
requirements. In order for issuers to be able to avoid the periodic
reporting requirements imposed by the Act they must not have more
than 500 beneficial owners. 15 U.S.C. 78l(g), 15 U.S.C. 78m(a), 15
U.S.C. 78o(d).
    \4\ DTC already allows Rule 144A securities that are not
investment grade rated debt to be eligible for deposit, book-entry
delivery, and other depository services only if the Rule 144A
securities are designated for inclusion in a system of a self-
regulatory organization approved by the Commission for the reporting
of quotation and trade information of Rule 144A transactions (``SRO
system''). Securities Exchange Act Release No. 33327 (Dec. 13,
1993); 58 FR 67878 (Dec. 22, 1993).
---------------------------------------------------------------------------

2. Proposed Rule Change
    DTC proposes to implement its new SH Tracking Service that would
facilitate the book-entry settlement and asset servicing for securities
that are privately transacted. This service would allow issuers to
track and limit the number of beneficial owners of its securities
(``Tracked Securities'').
    The eligibility process for a Tracked Security to be made and
remain DTC-eligible would not change from DTC's current process.
However, under the new proposed system, DTC would be requested in
writing to set up a specific CUSIP for tracking such securities \5\ and
would be notified who will perform the function of the issuer's
administrator for the CUSIP in the SH Tracking Service.\6\ Upon receipt
of all of such documentation, DTC would make the CUSIP DTC-eligible and
would activate the tracking indicator on its security master file.
Additionally, once it is made eligible, DTC would perform asset
servicing for the issue.
---------------------------------------------------------------------------

    \5\ DTC anticipates that this instruction will come from the
underwriter at the time of the initial distribution at DTC.
    \6\ DTC anticipates that the issuer's transfer agent will serve
as its administrator.
---------------------------------------------------------------------------

    The issuer's administrator would control movements of the
particular CUSIP for which it had been appointed. Once the tracking
indicator has been activated on the master file and the Administrator
has been appointed, no transfer of the securities would take place in
the Tracked Security without the approval of the administrator through
DTC's Inventory Management System (``IMS''). The administrator, based
on requirements of the issuer, would be solely responsible for
determining whether a transaction should be effected in DTC. Once
approved by the administrator, DTC would perform centralized book-entry
settlement. IMS would only allow an administrator access to view and
approve transactions for CUSIPs for which it had been appointed
administrator as reflected in DTC's records.
    Because DTC would be relying solely on the instructions of the
administrator in order to effect settlement in Tracked Securities and
would have no knowledge of the number or character of the underlying
beneficial owners, use of the SH Tracking Service by any party would
constitute an agreement that DTC shall not be liable for any loss or
damages related to the use of the SH Tracking System. Each user of the
SH Tracking Service would agree to indemnify and hold harmless DTC and
its affiliates from and against any and all losses, damages,
liabilities, costs, judgments, charges, and expenses arising out of or
relating to the use of the SH Tracking Service.
    The Tracked Securities would not be held as part of a Participant's
general free account and would not be considered eligible collateral in
DTC's settlement system.
    Although the SH Tracking Service was developed to address the
specific concerns of Rule144A securities, in practice DTC envisions
that it could be utilized for other types of securities for which the
number or character of the beneficial owners requires some level of
control.
3. Fees
    In an effort to recover the costs of building the SH Tracking
Service, DTC proposes the following fees to be added to its Fee
Schedule:
     $25,000 per CUSIP for SH Tracking Services.
     $5 per delivery and receive for Tracked Securities.
     $5 per receive and delivery for reclaims of Tracked
Securities.
    DTC believes that the proposed rule change is consistent with the
requirements of section 17A of the Act \7\ and the rules and
regulations thereunder as it allows for more efficient processing of
transactions that are currently being effected outside of DTC by
physical processing. Therefore, it will not adversely affect the
safeguarding of funds or securities in DTC's custody and control or for
which it is responsible.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

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

    DTC does not believe that the proposed rule change will have any
impact, or impose any burden, on competition.

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

    DTC has not solicited or received written comments relating to the
proposed rule change. DTC will notify the Commission of any written
comments it receives.

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

    Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date 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 such 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 e-mail to<EMAIL_ADDRESS>Please include
File No. SR-DTC-2008-11 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 No. SR-DTC-2008-11. 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. to 3 p.m. Copies of such filing also will be available for
inspection and copying at DTC's principal office and on DTC's Web site
at http://www.dtcc.com/legal/rule_filings/dtc/2008.php. 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 No. SR-DTC-2008-11 and should be
submitted on or before September 26, 2008.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-20612 Filed 9-4-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 80, Number 209 (Thursday, October 29, 2015)]
[Notices]
[Pages 66578-66579]
[FR Doc No: 2015-27605]

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

DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2015-0013]

National Advisory Committee on Occupational Safety and Health
(NACOSH)

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

ACTION: Announcement of a NACOSH meeting.

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

SUMMARY: NACOSH will meet December 2, 2015, in Washington, DC. In
conjunction with the committee meeting, the NACOSH Temporary Workers
Work Group will meet December 1, 2015.

DATES: NACOSH meeting: NACOSH will meet from 9 a.m. to 5 p.m.,
Wednesday, December 2, 2015.
    NACOSH Work Group meeting: The NACOSH Temporary Workers Work Group
will meet from 9 a.m. to 5 p.m., Tuesday, December 1.
    Comments, requests to speak, speaker presentations, and requests
for special accommodations: You must submit (postmark, send, transmit)
comments, requests to address NACOSH, speaker presentations, and
requests for special accommodations for the NACOSH and NACOSH Work
Group meetings by November 20, 2015.

ADDRESSES: NACOSH and NACOSH Work Group meetings: NACOSH and the NACOSH
Work Group will meet in Room C-5320, Conference Room 6, U.S. Department
of Labor, 200 Constitution Avenue NW., Washington, DC 20210.
    Submission of comments, requests to speak and speaker
presentations: You may submit comments and request to speak at the
NACOSH meeting, identified by the docket number for this Federal
Register notice (Docket No. OSHA-2015-0013), by one of the following
methods:
    Electronically: You may submit materials, including attachments,
electronically at http://www.regulations.gov, the Federal eRulemaking
Portal. Follow the online instructions for making submissions.
    Facsimile: If your submission, including attachments, does not
exceed 10 pages, you may fax it to the OSHA Docket Office at (202) 693-
1648.
    Regular mail, express mail, hand delivery, or messenger/courier
service (hard copy): You may submit your materials to the OSHA Docket
Office, Docket No. OSHA-2015-0013, Room N-2625, U.S. Department of
Labor, 200 Constitution Avenue NW., Washington, DC 20210; telephone
(202) 693-2350 (TTY<PHONE_NUMBER>). OSHA's Docket Office accepts
deliveries (hand deliveries, express mail, and messenger/courier
service) during normal business hours, 8:15 a.m. to 4:45 p.m. e.t.,
weekdays.
    Requests for special accommodations: Please submit requests for
special accommodations to attend the NACOSH and NACOSH Work Group
meetings by email, telephone, or hard copy to Ms. Gretta Jameson, OSHA,
Office of Communications, Room N-3647, U.S. Department of Labor, 200
Constitution Avenue NW., Washington, DC 20210; telephone<PHONE_NUMBER>
(TTY<PHONE_NUMBER>); email<EMAIL_ADDRESS>    Instructions: Your submissions must include the Agency name and the
docket number for this Federal Register notice (Docket No. OSHA-2015-
0013). Due to security-related procedures, receipt of submissions by
regular mail may experience significant delays. Please contact the OSHA
Docket Office for information about security procedures for making
submissions by hand delivery, express delivery, or messenger/courier
service. For additional information about submissions, see the
SUPPLEMENTARY INFORMATION section of this notice.
    OSHA will post in the NACOSH docket, without change, any comments,
requests to speak, and speaker presentations, including any personal
information that you provide. Therefore, OSHA cautions interested
parties about submitting personal information such as Social Security
numbers and birthdates.

FOR FURTHER INFORMATION CONTACT:  For press inquiries: Mr. Frank
Meilinger, Director, OSHA Office of Communications, U.S. Department of
Labor, Room N-3647, 200 Constitution Avenue NW., Washington, DC 20210;
telephone<PHONE_NUMBER> (TTY<PHONE_NUMBER>); email
<EMAIL_ADDRESS>    For general information: Ms. Michelle Walker, Director, OSHA
Technical Data Center, Directorate of Technical Support and Emergency
Management, U.S. Department of Labor, Room N-2625, 200 Constitution
Avenue NW., Washington, DC 20210; telephone<PHONE_NUMBER> (TTY (877)
889-5627); email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    NACOSH meeting: NACOSH will meet Wednesday, December 2, 2015, in
Washington, DC. Some NACOSH members may attend the meeting by
teleconference. NACOSH meetings are open to the public.
    NACOSH was established by Section 7(a) of the Occupational Safety
and Health Act of 1970 (OSH Act) (29 U.S.C. 651, 656) to advise,
consult with and make recommendations to the Secretary of Labor and the
Secretary of Health and Human Services on matters relating to the
administration of the OSH Act. NACOSH is a continuing advisory
committee of indefinite duration.
    NACOSH operates in accordance with the Federal Advisory Committee
Act (FACA) (5 U.S.C. App. 2), its implementing regulations (41 CFR part
102-3), and OSHA's regulations on NACOSH (29 CFR part 1912a).
    The tentative agenda for the NACOSH meeting includes:
     An update from the Assistant Secretary of Labor for
Occupational Safety and Health on key OSHA initiatives;
     Remarks from the Director of the National Institute for
Occupational Safety and Health;
     Report from NACOSH Emergency Response Subcommittee; and
     Report from and consideration of any recommendations
presented by the NACOSH Temporary Workers Work Group on developing best
practice language for protecting temporary workers as part of
employers' injury and illness prevention programs.
    OSHA transcribes and prepares detailed minutes of NACOSH meetings.
OSHA posts the transcripts and minutes in the public docket along with
written comments, speaker presentations, and other materials submitted
to NACOSH or presented at NACOSH meetings.
    NACOSH Work Group meeting: The NACOSH Temporary Workers Work Group
will meet Tuesday, December 1, 2015. The meeting is open to the public.
The purpose of the meeting is to discuss workplace safety and health
issues regarding temporary workers and to develop recommendations for
NACOSH's consideration. The issues include gaps in workplace
protections for temporary workers, and joint responsibility of host
employers and staffing agencies for temporary workers.

Public Participation, Submissions and Access to Public Record

    NACOSH and NACOSH Work Group meetings: All NACOSH and NACOSH Work
Group meetings are open to the public. Individuals attending NACOSH
meetings at the U.S. Department of Labor must enter the building at the
Visitors' Entrance at 3rd and C Streets NW., and pass through building
security. Attendees must have valid government-issued photo
identification (e.g., driver's license) to enter the building. For
additional information about building security measures for attending
the NACOSH and NACOSH

Work Group meetings, please contact Ms. Jameson (see ADDRESSES
section).
    Individuals requesting special accommodations to attend the NACOSH
and NACOSH Work Group meetings should contact Ms. Jameson.
    Submission of comments: You may submit comments using one of the
methods listed in the ADDRESSES section. Your submission must include
the Agency name and docket number for this Federal Register notice
(Docket No. OSHA-2015-0013). OSHA will provide copies of any
submissions to the NACOSH members.
    Because of security-related procedures, receipt of submissions by
regular mail may experience significant delays. For information about
security procedures for submitting materials by hand delivery, express
mail, and messenger/courier service, please contact the OSHA Docket
Office.
    Requests to speak and speaker presentations: If you want to address
NACOSH at the meeting you must submit a request to speak, as well as
any written or electronic presentation, by November 20, 2015, using one
of the methods listed in the ADDRESSES section. Your request must
state:
     The amount of time requested to speak;
     The interest you represent (e.g., business, organization,
affiliation), if any; and
     A brief outline of the presentation.
    PowerPoint presentations and other electronic materials must be
compatible with PowerPoint 2010 and other Microsoft Office 2010
formats. The NACOSH Chair may grant requests to address NACOSH as time
and circumstances permit.
    Public docket of NACOSH meetings: OSHA places comments, requests to
speak, and speaker presentations, including any personal information
you provide, in the NACOSH docket, without change. Those documents also
may be available online at http://www.regulations.gov. Therefore, OSHA
cautions you about submitting certain personal information such as
Social Security numbers and birthdates.
    OSHA also places in the NACOSH docket meeting transcripts, meeting
minutes, documents presented at the NACOSH meeting, and other documents
pertaining to the NACOSH and NACOSH Work Group meetings. These
documents may be available online at http://www.regulations.gov.
    Access to the public record of NACOSH meetings: To read or download
documents in the NACOSH docket, go to Docket No. OSHA-2015-0013 at
http://www.regulations.gov. The index for that Web page lists all of
the documents in the docket; however, some documents (e.g., copyrighted
materials) are not publicly available through that Web page. All
documents in the NACOSH docket, including materials not available
through http://www.regulations.gov, are available in the OSHA Docket
Office. Please contact the OSHA Docket Office for assistance in making
submissions to, or obtaining materials from, the NACOSH docket.
    Electronic copies of this Federal Register notice are available at
http://www.regulations.gov. This notice, as well as news releases and
other relevant information, also are available on OSHA's Web page at
http://www.osha.gov.

Authority and Signature

    David Michaels, Ph.D., MPH, Assistant Secretary of Labor for
Occupational Safety and Health, directed the preparation of this notice
under the authority granted by 29 U.S.C. 656; 5 U.S.C. App. 2; 29 CFR
part 1912a; 41 CFR part 102-3; and Secretary of Labor's Order No. 1-
2012 (77 FR 3912 (1/25/2012)).

    Signed at Washington, DC, on October 26, 2015.
David Michaels,
Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. 2015-27605 Filed 10-28-15; 8:45 am]
 BILLING CODE 4510-26-P


[Federal Register: December 31, 2009 (Volume 74, Number 250)]
[Rules and Regulations]
[Page 69268-69271]
[DOCID:fr31de09-9]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2007-0186; Directorate Identifier 2007-NM-226-AD;
Amendment 39-16156; AD 2009-26-17]
RIN 2120-AA64

Airworthiness Directives; McDonnell Douglas Corporation Model DC-
10-10, DC-10-10F, DC-10-15, DC-10-30, DC-10-30F (KC-10A and KDC-10),
DC-10-40, DC-10-40F, MD-10-10F, and MD-10-30F Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: The FAA is superseding an existing airworthiness directive
(AD), which applies to certain Model DC-10-10, DC-10-10F, DC-10-15, DC-
10-30, DC-10-30F (KC-10A and KDC-10), DC-10-40, and DC-10-40F
airplanes. That AD currently requires installing or replacing with
improved parts, as applicable, the bonding straps between the metallic
frame of the fillet and the wing leading edge ribs, on both the left
and right sides of the airplane. This new AD revises the applicability
by adding and removing certain airplanes. This new AD requires, for
certain airplanes, repositioning or replacing two bonding straps, and
doing a bonding-resistance check and an inspection to determine correct
installation of certain bonding straps, and applicable corrective
actions. 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 in the event of a severe lightning
strike, which, in combination with flammable fuel vapors, could result
in fuel tank explosions and consequent loss of the airplane.

DATES: This AD becomes effective February 4, 2010.
    The Director of the Federal Register approved the incorporation by
reference of certain publications 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.comd.

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

    The FAA issued a second supplemental notice of proposed rulemaking
(NPRM) to amend 14 CFR part 39 to include an AD that supersedes AD
2006-16-03, Amendment 39-14703 (71 FR 43962, August 3, 2006). The
existing AD applies to certain Model DC-10-10, DC-10-10F, DC-10-15, DC-
10-30, DC-10-30F (KC-10A and KDC-10), DC-10-40, and DC-10-40F
airplanes. The existing AD requires installing or replacing with
improved parts, as applicable, the bonding straps between the metallic
frame of the fillet and the wing leading edge ribs, on both the left
and right sides of the airplane. That second supplemental NPRM was
published in the Federal Register on September 1, 2009 (74 FR 45135).
That second supplemental NPRM proposed to add a requirement to
reposition or replace bonding straps for certain airplanes, and for
certain airplanes, a bonding-resistance check and an inspection to
determine correct installation of certain bonding straps, and
applicable corrective actions. The second supplemental NPRM also
proposed to revise the applicability by adding and removing certain
airplanes.

Comments

    We provided the public the opportunity to participate in the
development of this AD. We have considered the comments from the sole
commenter, FedEx, that have been received on the second supplemental
NPRM.

Request for Credit for Actions Previously Accomplished

    FedEx requests credit for the actions previously accomplished.
FedEx notes that under its alternative method of compliance (AMOC)
previously approved by the FAA it has already accomplished resistance
checks required by paragraphs (i)(2) and (j)(2) of the second
supplemental NPRM on its airplanes. FedEx notes that they performed
resistance checks in accordance with the AMOC previously granted by the
FAA. FedEx states that it will accomplish a resistance check of any
bonding straps replaced.
    FedEx also requests credit for correctly installing the braided
bonding straps mentioned in paragraph (j)(1) of the second supplemental
NPRM, which it accomplished in accordance with the AMOC previously
granted.
    We agree to provide credit for accomplishing the actions required
by paragraphs (i)(2), (j)(1), and (j)(2) of this final rule for the
reasons that the commenter provided. Paragraph (l)(3) of the second
supplemental NPRM already states that AMOCs approved previously in
accordance with AD 2006-16-03 are approved as AMOCs for the
corresponding provisions of this AD. Therefore, no change to this final
rule is necessary.

Request To Change Applicability of Paragraph (h) of the Second
Supplemental NPRM

    FedEx requests that we change the identification of airplanes
subject to paragraph (h) of the second supplemental NPRM. FedEx notes
that paragraph (h) of the second supplemental NPRM specifies
``airplanes with fuselage numbers not identified in Table 2 of this AD
except for airplanes identified in paragraph (i) or (j) of this AD.''
FedEx notes that its fuselage 317 does not appear in the effectivity of
either Boeing Service Bulletin DC10-53-111, Revision 6, dated March 3,
2009; or Boeing Service Bulletin DC10-53-109, Revision 7, dated March
3, 2009 (the airplane groups identified in those service bulletins are
referenced in paragraphs (i) and (j) of this AD). FedEx assumes that
paragraph (h) was added to address this airplane and other airplanes
that did not appear in either service bulletin. FedEx notes that the
effectivity issues as they pertained to its fleet were sorted out in
its AMOC request.
    We disagree that it is necessary to address fuselage number 317 and
the other airplane fuselage numbers in this final rule because the
effectivity has been corrected in the effectivity sections

of the Boeing service bulletins listed in Table 1 of this AD and/or
previously approved AMOCs. We have not changed the AD in regard to this
issue.

Request To Revise Paragraph (h) of the Second Supplemental NPRM

    FedEx requests that we remove the phrase ``and reposition two
bonding straps'' from paragraph (h) of the second supplemental NPRM.
FedEx states that if airplanes have not been modified to comply with
the intent of the applicable service bulletin referenced in paragraph
(h) of the second supplemental NPRM, then they would not have any
bonding straps that require only repositioning.
    We agree to remove the phrase ``and reposition two bonding straps''
from paragraph (h) of the second supplemental NPRM in this final rule
for the reason stated by the commenter.

Request To Clarify Paragraph (j)(1) of the Second Supplemental NPRM

    FedEx requests that we clarify paragraph (j)(1) of the second
supplemental NPRM to help operators determine the correct braided
bonding strap. FedEx suggests changing paragraph (j)(1) to state: ``Do
a general visual inspection to verify correct installation of two
braided bonding straps (one LH wing and one RH wing) as shown [in]
Boeing Service Bulletin DC-10-53-111, Revision 6, Figure 3, Sheet 7 of
9.''
    We agree that this change provides additional beneficial
information to operators. We have revised paragraph (j)(1) of the final
AD accordingly.

Request To Clarify Effectivity Sections of the Service Bulletins in
Table 2

    FedEx requests that we note that the effectivity sections in the
service bulletins identified in Table 2 of the second supplemental NPRM
have 25 fuselage numbers that appear in both service bulletins. FedEx
states that we may wish to address these fuselage numbers in some
manner in the proposed rule.
    We agree that clarification may be necessary. Boeing has corrected
Table 1 in the effectivity sections of the service bulletins referenced
in Table 2 of this AD. We have not changed this AD in this regard.

Conclusion

    We have carefully reviewed the available data, including the
comments that have been received, and determined that air safety and
the public interest require adopting the AD with the changes described
previously. We have determined that these changes will neither increase
the economic burden on any operator nor increase the scope of the AD.

Costs of Compliance

    There are about 457 airplanes of the affected design in the
worldwide fleet. The following table provides the estimated costs for
U.S. operators to comply with this AD.

                                                                     Estimated Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Number of  U.S.-
         Work hours           Average labor rate           Parts              Cost per airplane        registered                  Fleet cost
                                   per hour                                                             airplanes
--------------------------------------------------------------------------------------------------------------------------------------------------------
2-17........................                $80   Up to $4,169...........  Up to $5,529..........                281   Up to $1,553,649.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

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

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 Federal Aviation Administration (FAA) amends Sec.  39.13 by
removing amendment 39-14703 (71 FR 43962, August 3, 2006) and by adding
the following new airworthiness directive (AD):

2009-26-17 McDonnell Douglas Corporation: Amendment 39-16156. Docket
No. FAA-2007-0186; Directorate Identifier 2007-NM-226-AD.

Effective Date

    (a) This AD becomes effective February 4, 2010.

Affected ADs

    (b) This AD supersedes AD 2006-16-03, Amendment 39-14703.

Applicability

    (c) This AD applies to McDonnell Douglas Corporation Model DC-
10-10, DC-10-10F, DC-10-15, DC-10-30, DC-10-30F (KC-10A and KDC-10),
DC-10-40, and DC-10-40F airplanes, and MD-10-10F and MD-10-30F
airplanes that have been converted from Model DC-10 series
airplanes; certificated in

any category; with manufacturer's fuselage numbers as identified in
the applicable service bulletin listed in Table 1 of this AD.

                                                                 Table 1--Applicability
--------------------------------------------------------------------------------------------------------------------------------------------------------
       Boeing Service Bulletin--           Revision--              Dated--                                   For airplanes with--
--------------------------------------------------------------------------------------------------------------------------------------------------------
DC10-53-109............................               7  March 3, 2009.............  Extended wing-to-fuselage fillets.
DC10-53-111............................               6  March 3, 2009.............  Conventional wing-to-fuselage fillets.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Subject

    (d) Air Transport Association (ATA) of America Code 53:
Fuselage.

Unsafe Condition

    (e) 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 in the event of a severe
lightning strike, 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.

Restatement of Requirements of AD 2006-16-03, With New Service
Information

Installation or Replacement

    (g) For airplanes with manufacturer's fuselage numbers
identified in the applicable service bulletin listed in Table 2 of
this AD: Within 7,500 flight hours or 60 months after September 7,
2006 (the effective date of AD 2006-16-03), whichever occurs
earlier: Install or replace with improved parts, as applicable, the
bonding straps between the metallic frame of the fillet and the wing
leading edge ribs, on both the left and right sides of the airplane,
in accordance with the Accomplishment Instructions of the applicable
service bulletin identified in Table 2 of this AD or Table 1 of this
AD. After the effective date of this AD, use the applicable service
bulletin identified in Table 1 of this AD.

                                                   Table 2--Fuselage Numbers Affected by AD 2006-16-03
--------------------------------------------------------------------------------------------------------------------------------------------------------
    McDonnell Douglas DC-10 Service
               Bulletin--                  Revision--              Dated--                                   For airplanes with--
--------------------------------------------------------------------------------------------------------------------------------------------------------
53-109.................................               4  October 7, 1992...........  Extended wing-to-fuselage fillets.
53-111.................................               3  August 24, 1992...........  Conventional wing-to-fuselage fillets.
--------------------------------------------------------------------------------------------------------------------------------------------------------

New Requirements of This AD

Installation or Replacement

    (h) For airplanes with fuselage numbers not identified in Table
2 of this AD except for airplanes identified in paragraph (i) or (j)
of this AD: Within 7,500 flight hours or 60 months, whichever occurs
first after the effective date of this AD, install or replace with
improved parts, as applicable, the bonding straps between the
metallic frame of the fillet and the wing leading edge ribs, on both
the left and right sides of the airplane. Do the actions in
accordance with the Accomplishment Instructions of the applicable
service bulletin identified in Table 1 of this AD.

Strap Repositioning for Certain Airplanes

    (i) For Group 1-4, Configuration 3 airplanes, as identified in
Boeing Service Bulletin DC10-53-109, Revision 7, dated March 3,
2009: Within 7,500 flight hours or 60 months after the effective
date of this AD, whichever occurs first, do the actions specified in
paragraphs (i)(1) and (i)(2) of this AD.
    (1) Remove two braided bonding straps and install two longer
braided bonding straps between the metallic frame of the fillet and
the wing leading edge ribs, in accordance with the Accomplishment
Instructions of Boeing Service Bulletin DC10-53-109, Revision 7,
dated March 3, 2009.
    (2) Measure the resistance of the previously installed bonding
straps and, before further flight, do all applicable corrective
actions, in accordance with the Accomplishment Instructions of
Boeing Service Bulletin DC10-53-109, Revision 7, dated March 3,
2009.

Inspection and Corrective Action for Certain Airplanes

    (j) For Group 1-2, Configuration 2 airplanes, as identified in
Boeing Service Bulletin DC10-53-111, Revision 6, dated March 3,
2009: Within 7,500 flight hours or 60 months after the effective
date of this AD, whichever occurs first, do the actions specified in
paragraphs (j)(1) and (j)(2) of this AD.
    (1) Do a general visual inspection to verify correct
installation of the braided bonding straps (one left-hand wing and
one right-hand wing) as shown in Sheet 7 in Figure 3 of Boeing
Service Bulletin DC10-53-111, Revision 6, dated March 3, 2009, and,
before further flight, do all applicable corrective actions, in
accordance with the Accomplishment Instructions of Boeing Service
Bulletin DC10-53-111, Revision 6, dated March 3, 2009.
    (2) Measure the resistance of the previously installed bonding
straps and, before further flight, do all applicable corrective
actions, in accordance with the Accomplishment Instructions of
Boeing Service Bulletin DC10-53-111, Revision 6, dated March 3,
2009.

Credit for Actions Accomplished in Accordance With Previous Service
Information

    (k) Actions accomplished before the effective date of this AD
according to Boeing Service Bulletin DC10-53-111, Revision 5, dated
March 19, 2008; and Boeing Service Bulletin DC10-53-109, Revision 6,
dated July 10, 2008; are considered acceptable for compliance with
the corresponding action specified in this AD.

Alternative Methods of Compliance (AMOCs)

    (l)(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) AMOCs approved previously in accordance with AD 2006-16-03
are approved as AMOCs for the corresponding provisions of this AD.

Material Incorporated by Reference

    (m) You must use Boeing Service Bulletin DC10-53-109, Revision
7, dated March 3, 2009; and Boeing Service Bulletin DC10-53-111,
Revision 6, dated March 3, 2009; as applicable; 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 17, 2009.
Stephen P. Boyd,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-30698 Filed 12-30-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register: September 22, 2009 (Volume 74, Number 182)]
[Notices]
[Page 48253-48254]
[DOCID:fr22se09-61]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

September 15, 2009.
    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER98-1643-014.
    Applicants: Portland General Electric Company.
    Description: Application of Portland General Electric Company--
Notice of Change in Status Eratta Appendix B.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-5203.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Docket Numbers: ER01-1822-006.
    Applicants: Indigo Generation LLC, Larkspur Energy LLC, Wildflower
Energy LP.
    Description: Indigo Generation, LLC et al. submits supplement to
the August 12 Notice containing a request for waiver of the requirement
that the Wildflower Entities file the 2007 Triennial Update et al.
    Filed Date: 09/11/2009.
    Accession Number: 20090915-0025.
    Comment Date: 5 p.m. Eastern Time on Friday, October 2, 2009.

    Docket Numbers: ER00-1372-005; ER07-496-002.
    Applicants: Alcoa Power Generating Inc., Alcoa Power Marketing LLC.
    Description: Alcoa Power Marketing LLC and Alcoa Power Generating
Inc. submit Updated Market Power Analysis for Continued Market-Based
Rate Authority in Compliance with Order No. 697.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-5200.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Docket Numbers: ER09-1473-001.
    Applicants: NorthWestern Corporation.
    Description: NorthWestern Corporation submits supplement to the
executed Large Generator Interconnection Agreement between NorthWestern
and NaturEner Glacier Wind Energy 2, LLC.
    Filed Date: 09/11/2009.
    Accession Number: 20090914-0074.
    Comment Date: 5 p.m. Eastern Time on Friday, October 2, 2009.

    Docket Numbers: ER09-1574-001.
    Applicants: MidAmerican Energy Company.
    Description: MidAmerican Energy Company submits Substitute First
Revised Rate Schedule No 42 et al.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-0077.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Docket Numbers: ER09-1697-000.
    Applicants: Ameren Services Company.
    Description: Ameren Services Company submits revised executed
service agreement for Wholesale Distribution Service with the Hannibal
Board of Public Works.
    Filed Date: 09/11/2009.
    Accession Number: 20090914-0075.
    Comment Date: 5 p.m. Eastern Time on Friday, October 2, 2009.

    Docket Numbers: ER09-1698-000.
    Applicants: Prime Power Sales I, LLC.
    Description: Prime Power Sales I, LLC submits notice of
cancellation of its FERC Electric Tariff, Original Rate Schedule FERC
No 1.
    Filed Date: 09/11/2009.
    Accession Number: 20090914-0076.
    Comment Date: 5 p.m. Eastern Time on Friday, October 2, 2009.

    Docket Numbers: ER09-1700-000; ER09-1701-000; ER09-1702-000; ER09-
1703-000; ER09-1704-000; ER09-1705-000.
    Applicants: Deseret Generation & Transmission Co-op.; Idaho Power
Company; NorthWestern Corporation; PacifiCorp; Portland General
Electric Company; Black Hills Power, Inc.
    Description: Deseret Generation & Transmission Co-operative, Inc et
al. submits a revised Attachment K to simplify the process of
stakeholders to join the Northern Tier Transmission Group Planning
Committee.
    Filed Date: 09/14/2009.
    Accession Number: 20090915-0059.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Take notice that the Commission received the following open access
transmission tariff filings:

    Docket Numbers: OA08-25-003.
    Applicants: Avista Corporation.
    Description: Attachment K Compliance Filing of Avista Corporation.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-5198.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Docket Numbers: OA08-26-003.
    Applicants: Puget Sound Energy, Inc.
    Description: Attachment K Compliance Filing of Puget Sound Energy,
Inc.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-5199.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Docket Numbers: OA08-33-002.
    Applicants: Arizona Public Service Company.
    Description: Compliance Filing of Arizona Public Service Company.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-5201.
    Comment Date: 5 p.m. Eastern Time on Monday, October 5, 2009.

    Take notice that the Commission received the following electric
reliability filings:

    Docket Numbers: RR09-9-000; RR08-6-004; RR07-14-004.
    Applicants: North American Electric Reliability Corp.

    Description: North American Electric Reliability Corporation
(Attachment 15) in Support of its Request for Acceptance of its 2010
Business Plan and Budget and the 2010 Business Plans and Budgets of
Regional Entities.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-5166.
    Comment Date: 5 p.m. Eastern Time on Monday, September 21, 2009.
    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St., NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed dockets(s). For assistance
with any FERC Online service, please e-mail<EMAIL_ADDRESS>
or call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. E9-22721 Filed 9-21-09; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 151 (Monday, August 6, 2012)]
[Notices]
[Pages 46781-46783]
[FR Doc No: 2012-19145]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67547; File No. SR-CBOE-2012-048]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Approving a Proposed Rule Change Relating to
Distribution of Auction Messages

July 31, 2012.

I. Introduction

    On June 6, 2012, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``Exchange''), filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend rules regarding the
universe of eligible responders to certain Exchange auctions and the
redistribution of auction messages. The proposed rule change was
published for comment in the Federal Register on June 22, 2012.\3\ The
Commission received no comment letters regarding the proposed rule
change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 67209 (June 18,
2012), 77 FR 37724 (``Notice'').
---------------------------------------------------------------------------

II. Description

    The Exchange proposes to amend several rules that govern its
auction mechanisms to, among other things, permit it to broaden the
class of persons that may respond to auction messages as well as
specifically allow such participants to rebroadcast auction messages in
options classes that have been opened to such responders. The proposed
changes would amend Rule 6.13A, relating to the Simple Auction Liaison
(``SAL''); Rule 6.14A, relating to the Hybrid Agency Liaison 2 system
(``HAL2''); and Rule 6.53C, relating to Complex Orders on the Hybrid
System, each of which are described in more detail below. In addition,
CBOE also proposes to delete Rule 6.14, relating to the Hybrid Agency
Liaison system (``HAL''), because, since the rollout of HAL2 in 2009,
the Exchange has phased out HAL and no longer uses it for any
classes.\4\
---------------------------------------------------------------------------

    \4\ See id. at 37725. Further, the Exchange proposes to rename
``HAL2'' as ``HAL'' in the CBOE Rules to eliminate any potential
confusion investors may have if there was a HAL2 but no HAL. For
purposes of this order, however, the Commission is using the current
terms to distinguish between ``HAL2'' and ``HAL.'' In addition, the
Exchange proposes to amend Rules 6.2B, 6.13, 6.14A, 6.25, and 6.53
to delete cross-references to Rule 6.14 and HAL and to correct other
cross-references to conform to numbering changes in this proposal
throughout the rules. See id.
---------------------------------------------------------------------------

A. SAL

    SAL is a feature within CBOE's Hybrid System designed to provide
price improvement over the national best bid or offer (``NBBO'') by
automatically initiating an auction process for an order that is
eligible for automatic execution by the Hybrid System (``Agency
Order'').\5\ Currently, to the extent CBOE has activated SAL for a
particular class, Market-Makers with an appointment in the relevant
option class and Trading Permit Holders acting as agent for orders
resting at the top of the Exchange's book opposite the Agency Order
(``Qualifying Trading Permit Holders'') are permitted to submit auction
responses.\6\ However, the Exchange may determine, on a class-by-class
basis, to permit SAL responses by all CBOE Market-Makers in addition to
Qualifying Trading Permit Holders.\7\
---------------------------------------------------------------------------

    \5\ See id. at 37724. The Exchange determines the eligible order
size, eligible order types, eligible order origin code (i.e., public
customer orders, non-Market-Maker broker-dealer orders, and Market-
Maker broker-dealer orders), and classes in which SAL is activated.
See CBOE Rule 6.13A(a).
    \6\ See CBOE Rule 6.13A(b).
    \7\ See CBOE Rule 6.13A, Interpretation and Policy .05.
---------------------------------------------------------------------------

    CBOE now proposes to eliminate the concept of Qualifying Trading
Permit Holders under Interpretation and Policy .05 to Rule 6.13A, and
instead provide more broadly that it may determine on a class-by-class
basis to permit all Trading Permit Holders,\8\ rather than just CBOE
Market-Makers and Qualifying Trading Permit Holders, to respond to SAL
auction messages.\9\ The Exchange also proposes to amend Interpretation
and Policy .02 to Rule 6.13A to allow Trading Permit Holders to
redistribute auction messages in classes in which the Exchange allows
all Trading Permit Holders to submit SAL auction responses.\10\
Finally, CBOE proposes a new Interpretation and Policy .05 to Rule
6.13A to provide that all pronouncements regarding determinations by
the Exchange pursuant to Rule 6.13A and the Interpretations and
Policies thereunder will be announced to Trading Permit Holders via
Regulatory Circular.\11\
---------------------------------------------------------------------------

    \8\ According to CBOE, by definition, all Market-Makers are
Trading Permit Holders; therefore, references to ``Trading Permit
Holders'' include all Market-Makers. See Notice, supra note 3, at
37724 n. 3.
    \9\ See id. at 37724. The Exchange also proposes to move this
language from Interpretation and Policy .05 to Rule 6.13A to
paragraph (b) of Rule 6.13A.
    \10\ See id.
    \11\ See id. at 37725.
---------------------------------------------------------------------------

B. HAL2

    HAL2 is a feature within CBOE's Hybrid System that provides
automated order handling in designated classes trading on Hybrid for
qualifying electronic orders that are not automatically executed by the
Hybrid System.\12\ For those classes, HAL2 will process (1) an eligible
order that is marketable against the Exchange's disseminated quotation
while that quotation is not the NBBO; \13\ (2) an eligible order that
would improve the Exchange's disseminated quotation and that is
marketable against quotations by other exchanges that are participants
in the Options Order Protection and Locked/Crossed Plan; (3) for Hybrid
3.0 classes, an eligible order that would improve the Exchange's
disseminated quotation; and (4) an order submitted to HAL2 as a result
of the price check parameters of Rule 6.13(b)(v).\14\ HAL2
electronically exposes these orders at the NBBO price to allow Market-
Makers appointed in that class as well as Trading Permit Holders acting
as agent for orders at the top of the Exchange's book in the relevant
series to step-up to the NBBO price.\15\ Alternatively, the Exchange
may determine on a class-by-class basis to make the exposure

message available to all Market-Makers or to all Trading Permit
Holders.\16\
---------------------------------------------------------------------------

    \12\ See CBOE Rule 6.14A. The Exchange determines the eligible
order size, eligible order types, eligible order origin code (i.e.,
public customer orders, non-Market-Maker broker-dealer orders, and
Market-Maker broker-dealer orders), and classes in which HAL2 is
activated. See CBOE Rule 6.14A(a).
    \13\ Except that HAL2 will not be used to process such an order
when the Exchange's quotation contains resting orders and does not
contain sufficient Market-Maker quotation interest to satisfy the
entire order. See CBOE Rule 6.14A(a)(i).
    \14\ See CBOE Rule 6.14A(a)(i)-(iv).
    \15\ See Notice, supra note 3, at 37725; CBOE Rule 6.14A(b). The
duration of the exposure period may not exceed one second. See CBOE
Rule 6.14A(b).
    \16\ See CBOE Rule 6.14A(b).
---------------------------------------------------------------------------

    Without making a substantive change to this provision, the Exchange
now proposes to amend the HAL2 rule to conform the language to the new
SAL and COA provisions that it has proposed in this filing. In other
words, CBOE would continue to be able to allow all Trading Permit
Holders to submit responses to the HAL2 exposure message.\17\ CBOE also
proposes to amend Interpretation and Policy .01 to Rule 6.14A to allow
Trading Permit Holders to redistribute HAL2 exposure messages in
classes in which the Exchange allows all Trading Permit Holders to
submit HAL2 auction responses.\18\
---------------------------------------------------------------------------

    \17\ See id.
    \18\ See Notice, supra note 3, at 37725.
---------------------------------------------------------------------------

    In addition, the Exchange proposes a new Interpretation and Policy
.03 to Rule 6.14A to provide that all pronouncements regarding
determinations by the Exchange pursuant to Rule 6.14A and the
Interpretations and Policies thereunder will be announced via
Regulatory Circular.\19\ Further, CBOE proposes to clarify that the
existing provision that allows Trading Permit Holders acting as agent
for orders at the top of the Exchange's book in the relevant option
series to respond to exposure messages applies to such Trading Permit
Holders that are representing orders on the opposite side of the order
submitted to HAL. According to CBOE, the Hybrid System currently only
accepts responses that are on the opposite side of the exposed order,
and the proposed rule change amends Rule 6.14A to reflect this current
practice.\20\ Finally, the Exchange proposes to amend Rule 6.14A(b) to
change the word ``flashed'' to ``exposed'' to create consistency of
terminology in the Rule.
---------------------------------------------------------------------------

    \19\ See id.
    \20\ See id.
---------------------------------------------------------------------------

C. COA

    COA is the automated complex order request for responses (``RFR'')
auction process by which eligible complex orders \21\ may be given an
opportunity for price improvement before being booked in the electronic
complex order book (``COB'') or on a PAR workstation.\22\ To the extent
COA is activated in a particular class, Market-Makers with an
appointment in the relevant option class and Trading Permit Holders
acting as agent for orders resting at the top of the COB in the
relevant option series may submit responses to the RFR messages during
the Response Time Interval.\23\ The Exchange may determine on a class-
by-class basis to permit COA responses by all CBOE Market-Makers in
addition to Qualifying Trading Permit Holders.\24\
---------------------------------------------------------------------------

    \21\ The Exchange determines, on a class-by-class-basis, complex
orders eligible for a COA considering the order's marketability
(defined as a number of ticks away from the current market), size,
complex order type, and complex order origin types (i.e., non-
broker-dealer public customer; broker-dealers that are not Market-
Makers or specialists on an options exchange; and Market-Makers or
specialists on an options exchange). See CBOE Rule 6.53C(d)(i)(2).
    \22\ See Notice, supra note 3, at 37725-26; CBOE Rule 6.53C(d).
CBOE determines whether to activate COA on a class-by-class basis.
See Notice, supra note 3, at 37725.
    \23\ See CBOE Rule 6.53C(d)(iii). ``Response Time Interval''
means the period of time during which responses to the RFR may be
entered, the length of which is determined by the Exchange on a
class-by-class basis, but which shall not exceed three seconds. See
CBOE Rule 6.53C(d)(ii).
    \24\ See CBOE Rule 6.53C, Interpretation and Policy .07.
---------------------------------------------------------------------------

    CBOE now proposes changes to the COA rules that mirror the changes,
discussed above, that it is proposing for SAL. Specifically, CBOE now
proposes to eliminate the concept of Qualifying Trading Permit Holders
under Interpretation and Policy .07 to Rule 6.53C, and instead allow
the Exchange to determine on a class-by-class basis to permit all
Trading Permit Holders to respond to RFR messages.\25\ In addition, the
proposed rule change clarifies that only Trading Permit Holders acting
as agent for orders at the top of the Exchange's book in the relevant
option series may respond to RFR messages if they represent orders on
the opposite side of the order submitted to COA.\26\ Finally, the
Exchange proposes to amend Interpretation and Policy .05 to Rule 6.53C
to allow Trading Permit Holders to redistribute RFR messages in classes
in which the Exchange allows all Trading Permit Holders to submit RFR
responses.\27\
---------------------------------------------------------------------------

    \25\ See Notice, supra note 3, at 37726. The Exchange also
proposes to move this language from Interpretation and Policy .07 to
Rule 6.53C to paragraph (d)(iii) of Rule 6.53C.
    \26\ According to the Exchange, the CBOE Hybrid System currently
only accepts responses that are on the opposite side of the Agency
Order, and the proposed rule change amends Rule 6.53C to reflect
this current practice. See id.
    \27\ See id.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful review, 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.\28\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\29\ 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.
---------------------------------------------------------------------------

    \28\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
    \29\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the Commission believes the Exchange's proposal to
permit it to open up SAL and COA auctions in specified classes to all
Trading Permit Holders and allow redistribution of SAL, HAL2, and COA
auction messages in those classes where the Exchange has broadened the
universe of participation could protect investors and the public
interest by enhancing competition in these auctions. CBOE's stated
purpose in opening these auctions is to allow a greater number of
market participants to submit responses to SAL auctions and COA RFRs,
which CBOE believes has the potential to result in better prices for
customers as responses to exposure or RFR messages could be at prices
better than the NBBO.\30\ The Commission agrees that broadening the
universe of participants that receive these auction messages and that
may respond to those messages is consistent with the protection of
investors and the public interest. Among other things, if CBOE takes
advantage of these new provisions to open up the SAL and COA auctions
to more participants, these changes should promote broader awareness
of, and provide increased opportunities for greater participation in,
these auctions and, consequentially, facilitate the ability of CBOE to
bring together participants and encourage more robust competition for
price improvement in these auctions. Consistent with the protection of
investors and the public interest, increased opportunities for
participation and competition in these auctions could result in better
prices for customers and participants
---------------------------------------------------------------------------

    \30\ See Notice, supra note 3, at 37726.
---------------------------------------------------------------------------

    In addition, CBOE proposes to reorganize provisions of Rules 6.13A,
6.14A, and 6.53C regarding which Trading Permit Holders are eligible to
respond to auction messages so that the requirements related to auction
responses for SAL auctions, HAL2 auctions, and COAs all use similar
language. These changes should make

these substantially similar provisions easier to understand. CBOE also
proposes to delete Rule 6.14, relating to HAL, while renaming ``HAL2''
as ``HAL.'' The Exchange has indicated that HAL is outdated and no
longer in use.\31\ The Commission believes that the deletion of the
obsolete HAL rule and the renaming of ``HAL2'' as ``HAL'' should
alleviate any potential confusion by CBOE Trading Permit Holders as
well as investors.
---------------------------------------------------------------------------

    \31\ See id. at 37725.
---------------------------------------------------------------------------

    For the reasons stated above, the Commission believes that the
proposed changes to the SAL, COA, HAL, and HAL2 rules, discussed above,
are consistent with Section 6(b)(5) of the Act.\32\
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\33\ that the proposed rule change (SR-CBOE-2012-048) is approved.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
---------------------------------------------------------------------------

    \34\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19145 Filed 8-3-12; 8:45 am]
BILLING CODE 8011-01-P