[Federal Register Volume 85, Number 248 (Monday, December 28, 2020)]
[Rules and Regulations]
[Pages 84201-84204]
[FR Doc No: 2020-28385]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0792; Project Identifier 2018-SW-049-AD; Amendment
39-21368; AD 2020-26-13]
RIN 2120-AA64

Airworthiness Directives; Sikorsky Aircraft Corporation
Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
Sikorsky Aircraft Corporation (Sikorsky) Model S-92A helicopters. This
AD was prompted by seven incidents of fatigue cracks in the horizontal
stabilizer root fitting FWD (forward root fitting). This AD requires
establishing the life limit of certain part-numbered forward root
fittings, establishing the life limit of certain part-numbered
stabilizer strut fittings, repetitively inspecting certain parts, and
depending on the inspection results, removing parts from service. The
FAA is issuing this AD to address the unsafe condition on these
products.

DATES: This AD is effective February 1, 2021.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of February 1,
2021.

ADDRESSES: For service information identified in this final rule,
contact your local Sikorsky Field Representative or Sikorsky's Service
Engineering Group at Sikorsky Aircraft Corporation, 124 Quarry Road,
Trumbull, CT 06611; telephone 1-800-946-4337 (1-800-Winged-S); email
<EMAIL_ADDRESS>Operators may also log on to the
Sikorsky 360 website at https://www.sikorsky360.com. You may view this
service information at the FAA, Office of the Regional Counsel,
Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort Worth, TX
76177. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>. It is also available on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0792.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0792; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, any comments received, and other information. The
address for Docket Operations is 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: Dorie Resnik, Aerospace Engineer,
Boston ACO Branch, 1200 District Avenue, Burlington, Massachusetts
01803; telephone<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to Sikorsky Model S-92A
helicopters with certain part-numbered horizontal stabilizer assemblies
(stabilizer assembly), certain part-numbered forward root fittings, or
certain part-numbered stabilizer strut fittings installed. The NPRM
published in the Federal Register on September 17, 2020 (85 FR 58007).
The NPRM was prompted by seven incidents of fatigue cracks in forward
root fittings. Fatigue cracking in a forward root fitting degrades the
load path and increases the load on other assembly parts, particularly
at the aft horizontal stabilizer attachment points.
    The NPRM proposed to require establishing the life limit of certain
part-numbered forward root fittings and certain part-numbered
stabilizer strut fittings. The NPRM also proposed to require
repetitively inspecting each stabilizer assembly attachment bolt and
barrel nut set, each forward root fitting, each attachment fitting
including the bolt holes and fastener holes, condition of the
fasteners, and each attachment fitting mating surface. Depending on the
inspection results, the NPRM proposed to require removing parts from
service. Finally, the NPRM proposed to prohibit installing certain
stabilizer assemblies on any helicopter. The FAA is issuing this AD to
address the unsafe condition on these products.

Comments

    The FAA gave the public the opportunity to participate in
developing this final rule, but the FAA did not receive any comments on
the NPRM or on the determination of the cost to the public.

Conclusion

    The FAA reviewed the relevant data and determined that air safety
and the public interest require adopting this final rule as proposed.

Related Service Information under 1 CFR Part 51

    The FAA reviewed S-92 Maintenance Manual, SA S92A-AMM-000,
Temporary Revision (TR) 55-33, dated March 24, 2020 (TR 55-33), which
adds additional part numbers (P/Ns) to the Horizontal Stabilizer--
Maintenance Practices and specifies procedures for inspecting each
forward root fitting and aft root fitting bolt holes and fasteners,
each forward and aft root fitting mating surface for wear of the
abrasion-resistant Teflon coating, procedures for chemically striping
the abrasion-resistant Teflon coating from the entire mounting pad,
applying alodine, and applying an abrasion-resistant Teflon coating.
This service information also describes procedures for removing and
installing a stabilizer (Tasks 55-11-01-900-001 and 55-11-01-900-002),
checking the torque stabilization (Task 55-11-01-280-001), and
inspecting the stabilizer and attaching hardware (Task 55-11-01-210-
004). This service information also provides assembly diagrams and
lists interchangeable stabilizer P/Ns and compatible strut P/Ns.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Other Related Service Information

    The FAA also reviewed S-92 Maintenance Manual SA S92A-AWL-000, TR
No. 4-58, dated October 2, 2017 (TR 4-58), and S-92 Maintenance Manual
SA S92A-AWL-000, TR No. 4-66 dated November 20, 2019 (TR 4-66). This
service information revises Task 4-00-00-200-000, Table 1 Replacement
Schedule, dated November 30, 2015. Both TR 4-58 and 4-66 revise the
Airworthiness Limitations Schedule by removing certain part-numbered
components, introducing new part-

numbered components, and establishing replacement intervals and
recurring inspections for the forward root fitting and the horizontal
stabilizer strut fitting. TR 4-58 also specifies inspecting the
horizontal stabilizer and attaching hardware at a recurring interval of
250 hours time in service (TIS).

Differences Between This AD and the Service Information

    The service information requires returning affected parts to a
Sikorsky specialist; this AD does not.

Costs of Compliance

    The FAA estimates that this AD affects 85 helicopters of U.S.
registry. Labor costs are estimated at $85 per work-hour. Based on
these numbers, the FAA estimates the following costs to comply with
this AD.
    Visually inspecting the stabilizer assembly and attached hardware
will take about 3 work-hours for an estimated cost of $255 per
helicopter and $21,675 for the U.S. fleet per inspection cycle.
    If required, replacing a hat bushing and both upper fittings and
lower fittings will take about 1 work-hour and parts will cost about
$10,000 for an estimated cost of $10,085 per replacement.
    If required, replacing the upper and lower support strut rod ends,
including lug and conical fitting, will take about 1 work-hour and
parts will cost about $10,000 for an estimated cost of $10,085 per
replacement.
    If required, performing a fluorescent penetrant inspection will
take about 3 work-hours for an estimated cost of $255 per inspection.
    If required, replacing a stabilizer assembly will take about 6
work-hours and parts will cost about $312,000 for an estimated cost of
$312,510 per replacement.
    If required, replacing a forward root fitting will take about 10
work-hours and parts will cost about $25,000 for an estimated cost of
$25,850 per replacement.
    If required, replacing a stabilizer strut fitting will take about
10 work-hours and parts will cost about $10,000 for an estimated cost
of $10,850 per replacement.
    If required, replacing a forward root fitting and an aft attachment
fitting will take about 20 work-hours and parts will cost about $50,000
for an estimated cost of $51,700 per replacement.
    If required, removing wear or corrosion and applying corrosion
preventative compound will take about 0.5 work-hour and parts will cost
a nominal amount for an estimated cost of $43 per action.
    If required, replacing a stabilizer attachment bolt and barrel nut
set will take about 1 work-hour and parts will cost about $500 for an
estimated cost of $585 per replacement.
    If required, replacing a fastener will take about 0.1 work-hour and
parts will cost a nominal amount for an estimated cost of $9 per
fastener.
    If required, removing the abrasion-resistant Teflon coating to
inspect each forward and aft attachment fitting mating surface will
take about 5 work-hours for an estimated cost of $425 per inspection.
    If required, applying alodine or equivalent and applying abrasion-
resistant Teflon coating will take about 5 work hours with minimal
parts cost for an estimated cost of $425 per application.
    According to Sikorsky, some of the costs of this AD may be covered
under warranty, thereby reducing the cost impact on affected
individuals. The FAA does not control warranty coverage for affected
individuals. As a result, the FAA has included all costs in this cost
estimate.

Authority for This Rulemaking

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

Regulatory Findings

    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) Will not affect intrastate aviation in Alaska, 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.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

    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 airworthiness
directive:

2020-26-13 Sikorsky Aircraft Corporation: Amendment 39-21368; Docket
No. FAA-2020-0792; Project Identifier 2018-SW-049-AD.

(a) Effective Date

    This airworthiness directive (AD) is effective February 1, 2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Sikorsky Aircraft Corporation Model S-92A
helicopters, certificated in any category, with the following
installed: Horizontal stabilizer root fitting FWD (forward root
fitting) part number (P/N) 92209-07111-101 or 92070-20125-101; or
stabilizer strut fitting P/N 92209-07404-041, 92209-07403-041, or
92070-20117-041 installed on horizontal stabilizer assembly
(stabilizer assembly) P/N 92070-20117-045, 92070-20117-046, 92070-
20125-041, 92070-20125-042, 92070-20125-043, 92070-20125-044, 92205-
07400-043, or 92205-07400-045.

(d) Subject

    Joint Aircraft System Component (JASC) Code: 5510, Horizontal
Stabilizer Structure.

(e) Unsafe Condition

    This AD was prompted by incidents of fatigue cracks in a forward
root fitting and life limit recalculations for forward root fitting
P/N 92209-07111-101 and 92070-20125-101. The FAA is issuing this AD
to prevent a forward root fitting from remaining in service beyond
its life limit, detect fatigue cracking in a forward root fitting,
and prevent

increased load and stress cracking in the stabilizer root fitting
aft. The unsafe condition, if not addressed, could result in failure
of a stabilizer root fitting, separation of the stabilizer assembly
from the helicopter, and subsequent loss of control of the
helicopter.

(f) Compliance

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

(g) Required Actions

    (1) Within 50 hours time-in-service (TIS):
    (i) Determine the total hours TIS of the forward root fitting P/
N 92209-07111-101 or 92070-20125-101. If the hours TIS of the
forward root fitting is unknown, use the hours TIS of the stabilizer
assembly instead.
    (A) If the forward root fitting has accumulated 7,900 or more
total hours TIS, before further flight, remove the forward root
fitting from service.
    (B) If the forward root fitting has accumulated less than 7,900
total hours TIS, before exceeding 7,900 hours TIS, remove the
forward root fitting from service.
    (ii) Thereafter following paragraph (g)(1)(i) of this AD, remove
the forward root fitting from service before accumulating 7,900
total hours TIS.
    (iii) For stabilizer assemblies with stabilizer strut fitting P/
N 92070-20117-041 installed, perform the following actions:
    (A) Determine the total hours TIS of stabilizer strut fitting P/
N 92070-20117-041.
    (B) If the stabilizer strut fitting has accumulated 19,100 or
more total hours TIS, before further flight, remove the stabilizer
strut fitting from service.
    (C) If the stabilizer strut fitting has accumulated less than
19,100 total hours TIS, before exceeding 19,100 total hours TIS,
remove the stabilizer strut fitting from service.
    (iv) Thereafter following paragraph (g)(1)(iii) of this AD,
remove the stabilizer strut fitting from service before accumulating
19,100 total hours TIS.
    (2) For helicopters with stabilizer strut fitting P/N 92209-
07404-041 or 92209-07403-041 installed, within 50 hours TIS and
thereafter at intervals not to exceed 50 hours TIS:
    (i) Remove the support strut and using a cheese cloth (or
similar cloth) and isopropyl alcohol, clean the upper and lower
support strut rod ends, horizontal stabilizer attachment fitting,
and the tail rotor pylon attachment fitting.
    (ii) Using a 10X or higher power magnifying glass, a flashlight,
and a mirror, visually inspect the hat bushing and both upper
fittings and lower fittings for a crack, corrosion, fretting,
deformation, and wear. If there is a crack, corrosion, fretting,
deformation, or wear, before further flight, remove the hat bushing
and both upper fittings and lower fittings from service.
    (iii) Using a 10X or higher power magnifying glass, a
flashlight, and a mirror, visually inspect both upper and lower
support strut rod ends, including lug and conical fitting, and both
upper and lower attachment fittings on the stabilizer and pylon
including the bushings for a crack, corrosion, fretting,
deformation, and wear. If there is a crack, corrosion, fretting,
deformation, or wear, before further flight, remove the upper and
lower support strut rod ends, including lug and conical fitting, and
both upper and lower attachment fittings on the stabilizer from
service.
    (3) Within 250 hours TIS or one year, whichever occurs first,
and thereafter at intervals not to exceed 250 hours TIS or one year,
whichever occurs first:
    (i) Remove the stabilizer assembly and visually inspect each
stabilizer attachment bolt and barrel nut set for corrosion, a
crack, and damage to the threads. For the purposes of this
inspection, damage may be indicated by uneven threads, missing
threads, or cross-threading.
    (A) If there is corrosion within allowable limits, before
further flight, treat for corrosion in accordance with FAA-approved
procedures.
    (B) If there is corrosion that exceeds allowable limits, or a
crack or damage to the threads, before further flight, remove the
bolt and barrel nut set from service.
    (ii) Inspect the forward root fitting and the aft attachment
fitting by:
    (A) Gaining access to the inside of the horizontal stabilizer.
    (B) Using Brulin Cleaner SD 1291 (or equivalent) and a low-lint
cloth, remove all traces of sealing compound, oil, and dirt from the
stabilizer mounting surfaces.
    (C) Using a 10X magnifying glass, inspect for any crack, wear,
and corrosion.
    (1) If there is a crack, before further flight, remove the
affected forward root fitting and the affected aft attachment
fitting from service.
    (2) If there is wear or corrosion that exceeds allowable limits,
before further flight, remove the affected forward root fitting and
the affected aft attachment fitting from service.
    (3) If there is wear or corrosion within allowable limits,
before further flight, treat for corrosion in accordance with FAA-
approved procedures.
    (D) Visually inspect each attachment fitting bolt hole and
fastener hole for a crack, wear, and corrosion.
    (1) If there is a crack, before further flight, remove the
affected forward root fitting and the affected aft attachment
fitting from service.
    (2) If there is wear or corrosion that exceeds allowable limits,
before further flight, remove the affected forward root fitting and
the affected aft attachment fitting from service.
    (3) If there is wear or corrosion within allowable limits,
before further flight, treat for corrosion in accordance with FAA
approved procedures.
    (E) Inspect for loose or working fasteners. If there is a loose
or working fastener, before further flight, remove the fastener from
service.
    (iii) As an alternative means to inspect for cracks in
paragraphs (g)(3)(i) and (ii) of this AD, perform a florescent
penetrate inspection (FPI).
    (iv) Visually inspect each forward and aft attachment fitting
mating surface for wear of the abrasion-resistant Teflon coating and
degradation. For the purposes of this inspection, degradation may be
indicated by fretting. Refer to Figure 204, of S-92 Maintenance
Manual, SA S92A-AMM-000, Temporary Revision 55-33, Task 55-11-01-
210-004, dated March 24, 2020 (TR 55-33), for a depiction of the
area to be inspected. For the purposes of this inspection, wear may
be indicated by less than 100% coverage of the abrasion-resistant
Teflon coating. If there is wear to the abrasion-resistant Teflon
coating or degradation, before further flight:
    (A) Chemically strip the abrasion-resistant Teflon coating from
the entire mounting pad in accordance with paragraph 7.A.(7)(a) of
TR 55-33.
    (B) FPI or eddy current inspect for a crack. If there is a
crack, before further flight, remove the stabilizer assembly from
service.
    (C) If there is no crack, treat the affected area by applying
alodine or equivalent. Apply abrasion-resistant Teflon coating in
accordance with paragraphs 7.A.(7)(d) through (e) of TR 55-33.
    (4) Installing stabilizer strut fitting P/N 92070-20117-041 is a
terminating action for the 50 hour TIS repetitive requirements in
paragraph (g)(2) of this AD.
    (5) As of the effective date of this AD, do not install
stabilizer assembly P/N 92205-07400-043, 92205-07400-045, or 92205-
07400-047 on any helicopter.

(h) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Boston ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request
to your principal inspector or local Flight Standards District
Office, as appropriate. If sending information directly to the
manager of the certification office, send it to the attention of the
person identified in paragraph (j) of this AD.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(i) Related Information

    For more information about this AD, contact Dorie Resnik,
Aerospace Engineer, Boston ACO Branch, 1200 District Avenue,
Burlington, Massachusetts 01803; telephone<PHONE_NUMBER>; email
<EMAIL_ADDRESS>
(j) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) S-92 Maintenance Manual, SA S92A-AMM-000, Temporary Revision
(TR) 55-33, dated March 24, 2020.
    (ii) [Reserved]
    (3) For Sikorsky Aircraft Corporation service information
identified in this AD, contact your local Sikorsky Field
Representative or Sikorsky's Service

Engineering Group at Sikorsky Aircraft Corporation, 124 Quarry Road,
Trumbull, CT 06611; telephone 1-800-946-4337 (1-800-Winged-S); email
<EMAIL_ADDRESS>Operators may also log on to
the Sikorsky 360 website at https://www.sikorsky360.com.
    (4) You may view this service information at the FAA, Office of
the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room
6N-321, Fort Worth, TX 76177. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this 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, email<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on December 10, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-28385 Filed 12-23-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: April 3, 2006 (Volume 71, Number 63)]
[Notices]
[Page 16604-16605]
[DOCID:fr03ap06-85]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53530; File No. SR-OCC-2006-02]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the Definition of Non-Customer

March 21, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 14, 2006, The
Options Clearing Corporation (``OCC'') 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 OCC. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The proposed rule change would clarify the definition of non-
customer as it relates to member affiliates.

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

    In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    The proposed rule change clarifies that a broker-dealer member
affiliate of a clearing member neither needs to consent to being
treated as a non-customer nor to execute a non-conforming subordination
agreement in order to be treated as a non-customer for purposes of
OCC's By-Laws and Rules.
    In File No. SR-OCC-99-5, OCC changed its rules to allow an
affiliate of a clearing member to designate itself as a non-customer
under the Commission's hypothecation rules and OCC's By-Laws and Rules
in order for the affiliate's transactions and positions to be
commingled in its clearing member's firm and/or proprietary cross-
margin account, in order to make more favorable margin treatment of
such positions possible.\3\ The purpose of File No. SR-OCC-99-5 was to
conform OCC's Rules to the terms of a no-action letter issued by the
Division of Market Regulation, which set forth requirements for a
member affiliate to designate itself as a non-customer.\4\
Specifically, that letter required each non-broker-dealer member
affiliate whose securities positions would be hypothecated to consent
to being treated as a non-customer and to execute a non-conforming
subordination agreement meeting certain criteria accompanied by an
opinion of counsel regarding the legal authority of the member
affiliate to so subordinate its claims. The requirement that a non-
broker-dealer member affiliate provide its clearing member with an
executed non-conforming subordination agreement was intended to ensure
that such member affiliate would not be a customer for purposes of SEC
Rule 15c3-3. Because broker-dealers are already excluded from the
definition of customer in Rule 15c3-3, there was no need to require
broker-dealer affiliates to execute such a subordination agreement. OCC
is filing this rule change to clarify the definition of non-customer as
it relates to member affiliates so that it more closely conforms to the
terms of the no-action letter.
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    \3\ Securities Exchange Act Release No. 43668 (December 4,
2000), 66 FR 77413 (December 11, 2000).
    \4\ Letter from Michael A. Macchiaroli, Associate Director,
Division of Market Regulation, to William H. Navin, EVP and General
Counsel, OCC (June 15, 2000).
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    OCC believes that the proposed change is consistent with Section
17A of the Act because it clarifies an existing OCC rule to allow the
positions of broker-dealer member affiliates to be included in a
clearing member's firm account and/or proprietary cross-margining
account, which will result in more favorable margin treatment and
encourage participation in cross-margining. The proposed rule change is
not inconsistent with the existing rules of OCC, including any other
rules proposed to be amended.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose any
burden on competition.

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

    Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ promulgated
thereunder because the proposal effects a change in an existing service
of OCC that (A) does not adversely affect the safeguarding of
securities or funds in the custody or control of OCC or for which it is
responsible and (B) does not significantly affect the respective rights
or obligations of OCC or persons using the service. At any time within
sixty days of the filing of the proposed rule change, the Commission
may summarily abrogate such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19-4(f)(4).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-OCC-2006-02 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2006-02. 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 Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of OCC and on OCC's
Web site at http://www.optionsclearing.com.

    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-OCC-2006-02
and should be submitted on or before April 24, 2006.

    For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-4756 Filed 3-31-06; 8:45 am]

BILLING CODE 8010-01-P