[Federal Register Volume 78, Number 79 (Wednesday, April 24, 2013)]
[Notices]
[Pages 24273-24276]
[FR Doc No: 2013-09625]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69396; File No. SR-ISE-2013-18]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Order Granting Approval of Proposed Rule Change To Address Order
Handling Under the Options Order Protection and Locked/Crossed Market
Plan, the Authority of the Exchange To Cancel Orders When a Technical
or Systems Issue Occurs, and To Describe the Operation of Linkage
Handler Error Accounts

April 18, 2013.

I. Introduction

    On March 7, 2013, the International Securities Exchange, LLC
(``Exchange'' or ``ISE'') 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 address: (i) Order handling
under the Options Order Protection and Locked/Crossed Market Plan; (ii)
the authority of the Exchange to cancel orders (or release routing-
related orders) when a technical or systems issue occurs; and (iii)
describe the operation of Linkage Handler (defined below) error
account(s), which may be used to liquidate unmatched executions that
may occur in the provision of the Exchange's routing service. The
proposed rule change was published for comment in the Federal Register
on March 18, 2013.\3\ The Commission received no comment letters
regarding the proposed rule change. This order approves the proposed
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 69114 (March 12, 2013),
78 FR 16733 (March 18, 2013) (SR-ISE-2013-18) (``Notice'').
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II. Description of the Proposal

New Supplementary Material .02 to ISE Rule 1901 (Order Protection) and
New ISE Rule 1903 (Order Routing to Other Exchanges)

    In its proposal, the Exchange states that, under the Options Order
Protection and Locked/Crossed Market Plan (``Plan''),\4\ it cannot
execute orders at a price that is inferior to the national best bid or
offer (``NBBO''), nor can ISE place an order on its book that would
cause the Exchange best bid or offer to lock or cross another
exchange's quote.\5\ The Exchange states that, in compliance with this
requirement, incoming orders are not automatically executed at a price
inferior to another exchange's protected bid or protected offer, nor
placed on the limit order book if they would lock or cross an away
market. ``Non-Customer Orders'' (orders for the account of a broker or
dealer) \6\ are rejected in these

circumstances, while ``Public Customer Orders'' (orders for the account
of a person that is not a broker-dealer) \7\ are handled by the Primary
Market Maker.\8\ Currently, Primary Market Makers \9\ have the
responsibility of either executing the Public Customer Order at a price
that at least matches the NBBO or obtaining better prices from the away
market(s) by sending one or more intermarket sweep orders (``ISOs'') on
the Public Customer's behalf.\10\ The Exchange proposes to amend its
rules to remove the requirement that Primary Market Makers handle
Public Customer Orders in the circumstances described above,\11\ and to
instead provide a centralized process for sending ISOs to other
exchanges on behalf of Public Customer Orders. The Exchange proposes
that it will contract with one or more unaffiliated brokers to route
orders to other exchanges when necessary to comply with the linkage
rules (``Linkage Handlers''). Specifically, in circumstances where
marketable Public Customer Orders are received when the ISE is not at
the NBBO or orders are received that would lock or cross another
market, they will be exposed to ISE members for up to one second.\12\
Under the proposed rules if, after a Public Customer Order is exposed,
such order cannot be executed in full on the Exchange at the then-
current NBBO or better and is marketable, the lesser of the full
displayed size of the Protected Bid(s) or Protected Offer(s) that are
priced better than the ISE's quote or the balance of the order will be
sent to the Linkage Handler, and any additional balance of the order
that is not marketable against the then-current NBBO will be placed on
the ISE book.\13\
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    \4\ The Commission notes that the Plan is a national market
system plan proposed by the options exchanges and approved by the
Commission. See Securities Exchange Act Release No. 60405 (July 30,
2009), 74 FR 39362 (August 6, 2009) (File No. 4-546). ISE is a
participant in the Plan. Among other things, the Plan requires each
participant in the Plan to adopt rules that are reasonably designed
to prevent trade-throughs and establish, maintain and enforce
written rules that require its members to reasonably avoid
displaying locked and crossed markets. See Sections 5 and 6 of the
Plan.
    \5\ See Notice, 78 FR at 16733; see also, ISE Rules 1901 and
1902. The Commission notes that ISE Rules 1901 and 1902 were
designed to implement certain of the Plan's requirements with
respect to trade-throughs and locked and crossed markets. See
Securities Exchange Act Release No. 60559 (August 21, 2009), 74 FR
44425 (August 28, 2009) (SR-ISE-2009-27).
    \6\ ISE Rule 100(a)(28).
    \7\ ISE Rule 100(a)(39).
    \8\ ISE Rule 714(a).
    \9\ In addition to the obligations for market makers generally,
a ``Primary Market Maker'' has certain responsibilities for options
classes to which it is appointed as a Primary Market Maker. See ISE
Rule 803(c).
    \10\ See Notice, 78 FR at 16734; and ISE Rule 803(c)(2).
    \11\ The Exchange proposes to eliminate Rule 803(c)(1)-(3) and
Supplementary Material .02 to Rule 803, which addresses Primary
Market Makers' obligations in handling Public Customer Orders.
    \12\ The current process for exposure is being moved from
Supplementary Material .02 to Rule 803 to Supplementary Material .02
to Rule 1901.
    \13\ See Proposed Supplementary Material .02 to ISE Rule 1901.
Any additional balance of the order will be executed on the ISE if
it is marketable. Any additional balance of the order that is not
marketable against the then-current NBBO will be placed on the ISE
book.
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    The Exchange proposes to adopt new ISE Rule 1903 (Order Routing to
Other Exchanges), which would govern the Exchange's process for routing
ISOs to other markets. As discussed above, the Exchange intends to
contract with one or more Linkage Handlers that are not affiliated with
the Exchange to route ISOs to other exchanges. The Exchange represents
that any such contract will restrict the use of any confidential and
proprietary information that the Linkage Handler receives to legitimate
business purposes necessary for routing orders at the direction of the
Exchange.\14\ Routing services would be available to ISE members only
and are optional. Members that do not want orders routed can use the
``Do Not Route'' designation to avoid routing.\15\ Also, ISE is not
approved to be a designated examining authority.\16\
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    \14\ See Notice, 78 FR at 16734.
    \15\ See id.
    \16\ See Notice, 78 FR at 16734 n.14. The Commission notes that,
therefore, ISE is not the designated examining authority for any
Linkage Handlers. See also, email from Laura Clare, Assistant
General Counsel, ISE, to Theodore S. Venuti, Senior Special Counsel
(confirming (i) that neither the Exchange nor any of its affiliates
is approved to be a designated examining authority and therefore,
neither the Exchange nor any of its affiliates may be a designated
examining authority for any of the Linkage Handlers, as defined in
.03 of the Supplementary Material to Rule 1901; and (ii) to become a
designated examining authority, the Exchange would need Commission
approval and would also need to amend its rules governing linkage
handling).
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    New ISE Rule 1903 also provides that: (1) The Exchange shall
establish and maintain procedures and internal controls reasonably
designed to adequately restrict the flow of confidential and
proprietary information between the Exchange and the Linkage Handler,
and any other entity, including any affiliate of the Linkage Handler,
and, if the Linkage Handler or any of its affiliates engages in any
other business activities other than providing routing services to the
Exchange, between the segment of the Linkage Handler or affiliate that
provides the other business activities and the segment of the Linkage
Handler that provides the routing services; (2) the Exchange will
provide its routing services in compliance with the provisions of the
Act and the rules thereunder, including, but not limited to, the
requirements in Section 6(b)(4) and (5) of the Act that the rules of a
national securities exchange provide for the equitable allocation of
reasonable dues, fees, and other charges among its Members and other
persons using its facilities, and not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers; (3) the
Exchange will determine the logic that provides when, how, and where
orders are routed away to other exchanges; \17\ (4) the Linkage Handler
will receive routing instructions from the Exchange, to route orders to
other exchanges and report such executions back to the Exchange and the
Linkage Handler cannot change the terms of an order or the routing
instructions, nor does the Linkage Handler have any discretion about
where to route an order; and (5) any bid or offer entered on the
Exchange routed to another exchange via a Linkage Handler that results
in an execution shall be binding on the Member that entered such bid/
offer.\18\
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    \17\ The Exchange notes that this provision would not prohibit a
Linkage Handler from complying with its obligations under Rule 15c3-
5 under the Act. See Notice, 78 FR at 16734 n.15.
    \18\ Proposed Supplementary Material .01 to Rule 1903 states
that the rule does not prohibit a Linkage Handler from designating a
preferred market-maker (or equivalent market participant) at the
other exchange to which an outbound ISO is being routed. The
Exchange states that this proposed provision has no impact on
customer orders, and does not disadvantage customers in any way. See
Notice, 78 FR at 16734-35. The Exchange will still be making the
sole determination as to which exchange an order will be routed, as
well as when and how the order will be routed. See id.
    Proposed Supplementary Material .02 to Rule 1903 is designed to
address how the Exchange will handle orders in the event that there
are no operable Linkage Handlers to provide routing services. In
such circumstance, the Exchange will cancel orders that, if
processed by the Exchange, would violate Rules 1901 (prohibition on
trade-throughs) or 1902 (prohibition on locked and crossed markets).
See id. at 16735.
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New ISE Rule 1904 (Order Cancellation/Release)

    The Exchange is also proposing to adopt Rule 1904 (Order
Cancellation/Release) which, the Exchange states, is designed to
address the Exchange's authority to cancel orders (or release routing-
related orders) when a technical or systems issue occurs. The Exchange
states that paragraph (a) of Proposed Rule 1904 is designed to
authorize the Exchange to cancel orders as it deems to be necessary to
maintain fair and orderly markets if a technical or systems issue
occurs at the Exchange,\19\ the Linkage Handler, or another exchange to
which an Exchange order has been routed. Paragraph (a) also provides
that a Linkage Handler may only cancel orders being routed to another
exchange

based on the Exchange's standing or specific instructions or as
otherwise provided in the Exchange rules.\20\ In addition, paragraph
(a) provides that the Exchange shall provide notice of the cancelation
of the Members' original order to affected Members as soon as
practicable.
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    \19\ The Exchange states that the authority to cancel orders to
maintain fair and orderly markets under proposed Rule 1904 would
apply to any technical or systems issue at the Exchange and would
include any orders at the Exchange (i.e., the authority to cancel
orders would apply to any orders that are subject to the Exchange's
routing service and any orders that are not subject to the
Exchange's routing service). By comparison, the routing service
error account provisions under proposed Rule 1905 (discussed below)
would apply to original and corresponding orders that are subject to
the Exchange routing service. See Notice, 78 FR at 16735.
    \20\ The Exchange states that, in addition to being unaffiliated
with the Exchange, the Linkage Handlers are not facilities of the
Exchange. For all routing services, the Exchange determines the
logic that provides when, how and where orders are routed away to
other exchanges. The Linkage Handler receives the routing
instructions from the Exchange to route orders to other exchanges
and to report executions back to the Exchange. The Linkage Handler
cannot change the terms of an order or the routing instructions, nor
does the Linkage Handler have any discretion about where to route an
order. See proposed Rule 1903(c), (d) and (e). Under paragraph (a)
to proposed Rule 1904, the decision to take action with respect to
orders affected by a technical or systems issue shall be made by the
Exchange. Depending on where those orders are located, a Linkage
Handler would be permitted to initiate a cancelation of an order(s)
pursuant to the Exchange's standing or specific instructions or as
otherwise provided in Exchange Rules (e.g., the Exchange's standing
instruction might provide, among other things, that the Linkage
Handler could initiate the cancelation of orders if the Linkage
Handler is experiencing technical or systems issues routing orders
to an away exchange). See Notice, 78 FR at 16735 n.20.
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    Paragraph (b) of Proposed Rule 1904 provides that the Exchange may
also determine to release orders being held on the Exchange awaiting an
away exchange execution as it deems to be necessary to maintain fair
and orderly markets if a technical or systems issue occurs at the
Exchange, a Linkage Handler, or another exchange to which an order has
been routed.

Proposed Rule 1905 (Routing Service Error Accounts)

    New ISE Rule 1905 provides that each Linkage Handler shall
maintain, in the name of the Linkage Handler, one or more accounts for
the purpose of liquidating unmatched trade positions that may occur in
connection with the routing service provided under new ISE Rule 1903
(``error positions'').
    Paragraph (a) of the rule provides that errors to which the rule
applies include any action or omission by the Exchange, a Linkage
Handler, or another exchange to which an Exchange order has been
routed, that results in an unmatched trade position due to the
execution of an order that is subject to the away market routing
service and for which there is no corresponding order to pair with the
execution (each a ``routing error''); and that such routing errors
would include, without limitation, positions resulting from
determinations by the Exchange to cancel or release an order pursuant
to new ISE Rule 1904.
    Paragraph (b) of the rule provides that error positions will be
liquidated in a Linkage Handler's error account. Paragraph (c) of new
ISE Rule 1905 requires that a Linkage Handler utilizing its error
account to liquidate error positions shall liquidate the positions as
soon as practicable. The Linkage Handler could determine to liquidate
the position itself or have a third-party broker-dealer liquidate the
position on the Linkage Handler's behalf. Paragraph (c)(i) provides
that the routing broker shall establish and enforce policies and
procedures reasonably designed to (1) adequately restrict the flow of
confidential and proprietary information associated with the
liquidation of the error position in accordance with Rule 1903 and (2)
prevent the use of information associated with other orders subject to
the routing services when making determinations regarding the
liquidation of error positions. In addition, paragraph (c)(ii) provides
that the Linkage Handler shall make and keep records associated with
the liquidation of such error positions and shall maintain such records
in accordance with Rule 17a-4 under the Act.\21\
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    \21\ 17 CFR 240.17a-4. Because a Linkage Handler will be
performing an Exchange function on a contractual basis and at the
direction of the Exchange, the Exchange also proposes to exclude
Linkage Handlers from the limits on compensation in ISE Rule 705(d).
Instead, the Exchange states that such liability matters will be
handled on a contractual basis as they are with other vendors or
services to the Exchange. See Notice, 78 FR at 16737.
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    Finally, paragraph (d) provides that the Exchange shall make and
keep records to document all determinations to treat positions as error
positions under the rule, and shall maintain such records in accordance
with Rule 17a-1 under the Act.\22\
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    \22\ 17 CFR 240.17a-1.
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III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6(b) of the Act
\23\ and the rules and regulations thereunder applicable to a national
securities exchange.\24\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\25\
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 foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest; and are not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Commission also believes
the proposed rule change is consistent with Section 11A(a)(1)(C) of the
Act \26\ in that it seeks to assure economically efficient execution of
securities transactions.
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    \23\ 15 U.S.C. 78f(b).
    \24\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \25\ 15 U.S.C. 78f(b)(5).
    \26\ 15 U.S.C. 78k-1(a)(1)(C).
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    The Commission finds that ISE's proposed rules governing the
routing of orders are consistent with the Act. As described above, the
Exchange would contract with one or more Linkage Handlers that are not
affiliated with the Exchange to route ISOs to other markets.\27\
Further, the routing of orders would be optional; \28\ and the Exchange
would be responsible for routing decisions and would retain control of
the routing logic.\29\ None of ISE or its affiliates is approved to be
a designated examining authority, and therefore, neither the Exchange,
nor any affiliate of the Exchange,\30\ may be the designated examining
authority for a Linkage Handler absent Commission approval and
amendment of ISE's rules governing the routing of orders by its Linkage
Handlers.\31\ The Commission also notes that the rule contemplates
procedures and internal controls designed to protect confidential and
proprietary information, which should help ensure that the Linkage
Handlers do not misuse routing information obtained from the Exchange.
In addition, the Exchange would provide its routing services in
compliance with the Act and the rules thereunder, including but not
limited to, the requirements in Sections 6(b)(4) and (5) of the Act
\32\ that the rules of a national securities exchange provide for the
equitable allocation of reasonable dues, fees, and other charges among
Exchange members and other persons using the Exchange's facilities, and
not be designed to permit unfair discrimination between customers,

brokers, or dealers.\33\ The Commission notes that such rules governing
the routing of orders by Linkage Handlers should help ISE comply with
its responsibility under the Plan.\34\
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    \27\ The Commission notes that Linkage Handlers would be
required to comply with Rule 15c3-5 under the Act. See supra note
17.
    \28\ Members may choose to avoid routing by using the Do Not
Route designation. See supra note 15 and accompanying text.
    \29\ See proposed ISE Rule 1903(d) and (e).
    \30\ See supra note 16 and accompanying text.
    \31\ See id.
    \32\ 15 U.S.C. 78f(b)(4) and (5).
    \33\ See proposed ISE Rule 1903(c).
    \34\ See supra note 4.
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    The Commission recognizes that technical or systems issues may
occur, and believes that new ISE Rule 1904, in allowing ISE to cancel
or release orders affected by technical or systems issues, should
provide a reasonably efficient means for ISE to handle such orders, and
appears reasonably designed to permit ISE to maintain fair and orderly
markets.\35\
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    \35\ The Commission notes that ISE states that it believes that
allowing the Exchange to cancel or release orders under such
circumstances would allow the Exchange to maintain fair and orderly
markets, and that new ISE Rule 1905 is designed ensure full trade
certainty for market participants and avoid disrupting the clearance
and settlement process. See Notice, 78 FR at 16737. The Commission
also notes that ISE states that a decision to cancel or release
orders due to a technical or systems issue is not equivalent to the
Exchange declaring self-help against another exchange pursuant to
ISE Rule 1905. See 17 CFR 242.611(b). See also Notice, 78 FR at
16735 n.21.
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    The Commission also believes that allowing the Exchange to resolve
error positions through the use of error accounts maintained by each
Linkage Handler pursuant to the procedures set forth in the rule, and
as described above, is consistent with the Act.\36\ The Commission
notes that the rule establishes criteria for determining which
positions are error positions to which the rule applies, and the
procedures for the handling of such positions. In particular, the
Commission notes that Proposed ISE Rule 1905 only applies to error
positions that result from the Linkage Handler's routing service, and
that such positions shall be liquidated by the Linkage Handler, as
applicable, as soon as practicable.\37\ In this regard, the Commission
believes that the new rule appears reasonably designed to further just
and equitable principles of trade and the protection of investors and
the public interest, and to help prevent unfair discrimination, in that
it should help assure the handling of error positions will be based on
clear and objective criteria, and that the resolution of those
positions will occur promptly through a transparent process.
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    \36\ The Commission notes that ISE states that it believes that
it is reasonable and appropriate to address routing errors through
the error account of a Linkage Handler in the manner proposed
because, among other reasons, the Linkage Handler is the executing
broker associated with such transactions. See Notice, 78 FR at
16736.
    \37\ See ISE Rule 1905(c).
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    The Commission is also concerned about the potential for misuse of
confidential and proprietary information. The Commission notes that
Linkage Handlers will be required to establish and enforce policies and
procedures reasonably designed to (1) adequately restrict the flow of
confidential and proprietary information associated with the
liquidation of the error positions, and (2) prevent the use of
information associated with other orders subject to the routing
services when making determinations regarding the liquidation of error
positions.\38\ The Commission believes that these requirements should
help mitigate the Commission's concerns. In particular, the Commission
believes that these requirements should help assure that none of ISE,
its Linkage Handlers, or any third-party broker-dealer is able to
misuse confidential or proprietary information obtained in connection
with the liquidation of error positions for its own benefit. The
Commission also notes that each Linkage Handler would be required to
make and keep records associated with the liquidation of error
positions \39\ and ISE would be required to make and keep records to
document all determinations to treat positions as error positions under
this Rule.\40\
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    \38\ See ISE Rule 1905(c)(i).
    \39\ See ISE Rule 1905(c)(ii).
    \40\ See ISE Rule 1905(d). The Commission notes that the
Exchange will transition options classes from the current process to
the new proposed process using Linkage Handlers over a period of
time and will notify its members via information circular as
products are transitioned.
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    Finally, the Commission notes that the proposed procedures for
routing orders, canceling orders and the handling of error positions
are similar to procedures the Commission has approved for other
exchanges.\41\
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    \41\ See, e.g., Securities Exchange Act Release Nos. 68583
(January 4, 2013), 78 FR 2302 (January 10, 2013) (SR-C2-2012-038);
68584 (January 4, 2013), 78 FR 2304 (January 10, 2013) (SR-CBOE-
2012-109); 68585 (January 4, 2013), 78 FR 2308 (January 10, 2013)
(SR-CBOE-2012-108); and 60551 (August 20, 2009), 74 FR 43196 (August
26, 2009) (SR-CBOE-2009-040).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\42\ that the proposed rule change (SR-ISE-2013-18) be, and it
hereby is, approved.
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    \42\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\43\
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    \43\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-09625 Filed 4-23-13; 8:45 am]
BILLING CODE 8011-01-P


Bill Harnett/ RTP/ USEPA/ US 02/ 04/ 2005 04: 48 PM To Arthur_ G._ Fraas@ omb. eop. gov, amy_ e._ flynn@ omb. eop. gov cc Bill Wehrum/ DC/ USEPA/ US@ EPA, Jeff Herring/ RTP/ USEPA/ US@ EPA, Kerry Rodgers/ DC/ USEPA/ US@ EPA Subject ANPR Final Version and Redline Embedded file: ANPR 02 04 05 version. wpd and ANPR 02 04 05 version. wpd


[Federal Register: May 22, 2006 (Volume 71, Number 98)]
[Notices]
[Page 29370-29371]
[DOCID:fr22my06-103]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53809; File No. SR-BSE-2006-13]

Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Correction of Erroneous Cross References in the Rules of
the Boston Options Exchange Facility

May 16, 2006.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 24, 2006, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') 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 by the BSE. The BSE has
filed the proposed rule change pursuant to section 19(b)(3)(A) of the
Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(1)
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Section 20 (Obvious Errors) of
Chapter V, Section 10 (Limitations on Dealings) and Section 11 (Short
Sales in Nasdaq National Market Securities) of Chapter VI, and Section
2 (Penalty for Rule Violations) of Chapter X of the Rules of the Boston
Options Exchange (``BOX'') to correct erroneous cross references. The
text of the proposed rule change is available on the Exchange's
Internet Web site (http://bostonstock.com), at the principal office of

the BSE, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the BSE included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in Item IV below.
The BSE 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. Purpose
    The BSE is proposing several changes in Section 20 (Obvious Errors)
of Chapter V, Section 10 (Limitations on Dealings) and Section 11
(Short Sales in Nasdaq National Market Securities) of Chapter VI, and
Section 2 (Penalty for Rule Violations) of Chapter X of the BOX Rules.
These rule sections contain erroneous cross references to both BSE and
BOX Rules. The Exchange proposes to correct these cross references to
reflect the correct corresponding rule(s) of the BOX or BSE Rules so
that the Exchange's rules are accurate, comprehendible, and transparent
to the marketplace.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\5\ in general, and section
6(b)(5) of the Act,\6\ in particular, in that it is designed to promote
just and equitable principles of trade, and to protect investors and
the public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    The Exchange has neither solicited nor received comments on the
proposed rule change.

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

    Because the foregoing proposed rule change constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, it has become
effective pursuant to section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(1) \8\ thereunder. At any time within 60 days of the filing of the
proposed rule change the Commission may summarily abrogate such
proposed 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 19b-4(f)(1).
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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

SR-BSE-2006-13 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-BSE-2006-13. 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. Copies of the filing
also will be available for inspection and copying at the principal
office of the Exchange. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-BSE-2006-13 and should be submitted on or before June 12, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E6-7719 Filed 5-19-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 80, Number 74 (Friday, April 17, 2015)]
[Notices]
[Pages 21237-21239]
[FR Doc No: 2015-08926]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9926-39-OEI; EPA-HQ-OEI-2014-0465]

Establishment of a New System of Records Notice for the Superfund
Enterprise Management System

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: The U.S. Environmental Protections Agency's (EPA) Office of
Solid Waste and Emergency Response, Office of Superfund Remediation and
Technology Innovation (OSRTI), is giving notice that it proposes to
create a new system of records pursuant to the provisions of the
Privacy Act of 1974 (5 U.S.C. 552(a)). The EPA is implementing the
Superfund Enterprise Management System (SEMS) system of records to
provide project and program managers the ability to plan, manage, track
and report on clean-up and enforcement activities taking place at
Superfund sites. SEMS represents a joint development and ongoing
collaboration between Superfund's Remedial, Removal, Federal
Facilities, Enforcement, and Emergency Response programs.

DATES: Persons wishing to comment on this system of records notice must
do so by May 27, 2015.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OEI-2014-0465, by one of the following methods:
     www.regulations.gov: Follow the online instructions for
submitting comments.
     Email<EMAIL_ADDRESS>     Fax:<PHONE_NUMBER>.
     Mail: OEI Docket, Environmental Protection Agency, Mail
Code: 2822T, 1200 Pennsylvania Ave. NW., Washington, DC 20460.
     Hand Delivery: OEI Docket, EPA/DC, WJC West Building, Room
3334, 1301 Constitution Ave. NW., Washington, DC. Such deliveries are
only accepted during the Docket's normal hours of operation, and
special arrangements should be made for deliveries of boxed
information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OEI-
2014-0465. The EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information for which
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through www.regulations.gov.
The www.regulations.gov Web site is an ``anonymous access'' system,
which means the EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an email
comment directly to the EPA without going through www.regulations.gov
your email address will be automatically captured and included as part
of the comment that is placed in the public docket and made available
on the Internet. If you submit an electronic comment, the EPA
recommends that you include your name and other contact information in
the body of your comment and with any disk or CD-ROM you submit. If the
EPA cannot read your comment due to technical difficulties and cannot
contact you for clarification, the EPA may not be able to consider your
comment. Electronic files should avoid the use of special characters,
any form of encryption, and be free of any defects or viruses. For
additional information about the EPA's public docket visit the EPA
Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.

    Docket: All documents in the docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
for which disclosure is restricted by statute. Certain other material,
such as copyrighted material, will be publicly available only in hard
copy. Publicly available docket materials are available either
electronically in www.regulations.gov or in hard copy at the OEI
Docket, EPA/DC, WJC West Building, Room 3334, 1301 Constitution Ave.
NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to
4:30 p.m., Monday through Friday, excluding legal holidays. The
telephone number for the Public Reading Room is<PHONE_NUMBER>, and the
telephone number for the OEI Docket is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Steven Wyman, Office of Solid Waste
and Emergency Response (OSWER), Office of Superfund Remediation and
Technology Information (OSRTT), Mail Code 5202P, 1200 Pennsylvania Ave.
NW., Washington, DC 20460; telephone number<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    General Information: EPA proposes to create a new system of records
under the Privacy Act to integrate the legacy Superfund data
collection, reporting and tracking modules into one single system. This
single system will transform the Superfund program by improving
operational effectiveness, reducing costs, streamlining business
processes, and enhancing information management capabilities. The
Superfund Enterprise Management System (SEMS) is an electronic
repository of Superfund documents routinely used to disseminate records
in response to Freedom of Information Act (FOIA) requests,
establishment of Administrative Records (ARs), and litigation support.
The SEMS database application supports the electronic capture, imaging,
indexing and tracking of records which document investigation, cleanup,
and enforcement activities at potential and existing hazardous waste
sites, as mandated by CERCLA, as amended by the Superfund Amendments
and Reauthorization Act (SARA) of 1986.
    The types of information in the system include data and information
that support program activities and decisions regarding the cleanup of
specific Superfund sites. The system is intended to provide
repositories of or access to a variety of programmatic information
regarding site management, cost recovery, site financial resources,
enforcement actions, and supporting documentation. The information is
collected to ensure that supporting documentation for activities and
decisions related to the Superfund site cleanup are well maintained and
readily accessible as needed. The program utilizes this information in
a variety of ways, including but not limited to research, enforcement,
litigation support, responses to congressional and FOIA requests,
public participation in the Superfund process, electronic archiving,
cost recovery, disaster recovery, and support of the program and Agency
missions.
    Records protected under the Privacy Act are subject to Agency-wide
security requirements governing all database systems at EPA. Privacy is
maintained by limiting access to the database containing confidential
business and personal information. Access to the database is limited to
individuals designated as System Administrators, Remedial Project
Managers (RPMs), Data Sponsors, On-Scene Coordinators (OSCs),
Information Management Coordinators (IMCs), Budget Coordinators (BCs),
Regional Attorneys, Regional Managers, Data Entry Support Staff,
Support Contractors, and any other staff with assigned data management
responsibilities.
    Physical access to the building (EPA's National Computer Center
(NCC) at Research Triangle Park, NC) is limited to EPA employees and
their contractors with key cards. The building is equipped with cameras
and sign-in sheets are utilized to monitor employee activities, traffic
flow, and access to the computer room where the file servers and
storage networks are located.

    Dated: April 8, 2015.
Ann Dunkin,
Chief Information Officer.
EPA-69

System Name:
    Superfund Enterprise Management System (SEMS)

System Location:
    The system is hosted at the National Computer Center (NCC) located
at Research Triangle Park (RTP), North Carolina. Address: 109 T.W.
Alexander Drive, RTP NC 27711.

Categories of Individuals Covered by the System:
    This system covers potentially responsible parties, EPA employees
with responsibilities at specific Superfund sites, members of the
public who have made public comments on program decisions or who have
environmental sampling results reported for their personal business or
residence, and contractor and analytical laboratory staff with
responsibilities on specific Superfund sites.

Categories of Records Covered by the System:
    Site location and basic descriptive information; contact
information (e.g., name, address, telephone number, email address) for
key individuals with responsibilities on specific Superfund sites; data
generated by EPA in regards to site information and actions conducted
at the site; planned and actual site financial and enforcement
information; potentially responsible parties (PRP); negotiation data;
litigation/referral data; lien data; alternative dispute resolution
data; litigation history; correspondence tracking; community
involvement data (i.e., location, contact data, technical assistance
grant data); and medical information pertaining to environmental
sampling results or public complaints.

Authority for Maintenance of the System:
    42 U.S.C. Chapter 103; 40 CFR 300

Purpose(s):
    The purpose of SEMS is to provide project and program managers with
data and information needed to plan, manage, track and report on
cleanup and enforcement activities taking place at Superfund sites.
SEMS is an electronic repository of Superfund documents and data used
to disseminate records in response to FOIA and other external requests,
and in support of litigation, investigation, cleanup, program planning,
and enforcement activities. SEMS tracks activities at each Superfund
site which include removal, risk characterization, remedy selection,
post construction, enforcement activities, financial resources, and
community involvement.

Routine Uses of Records Maintained in the System, Including Categories
of Users, and Purposes of Such Uses:
    General Routine Uses A, E, F, G, H, K and L apply to this system.

Policies and Practices for Storing, Retrieving, Accessing, Retaining,
and Disposing of Records in the System:
     Storage: Records will be stored electronically in an
Agency-approved database (Oracle) and managed by system developers and
administrators, along with EPA Office of Superfund Remediation and
Technology Information (OSRTI) personnel. Incremental system backups
are performed nightly and monthly. Actual files are stored in a Windows
file server.

     Retrievability: Records can be retrieved by Site Name,
Site ID Number, Author, Addressee, Document Title, Document Date, and
Document ID Number.
     Safeguards: The following safeguards are in place:
    (a) Information is maintained in a secure username/password
protected environment. Permission-level assignments allow users access
only to those functions for which they are authorized. Access to all
information and hardware is maintained in a secure, access controlled
facility at the NCC.
    (b) The system has a single point of access via a front-end Portal.
All users are required to complete a new user form (signed by their
supervisor) and take online security training before they are provided
with access.
    (c) All authorized users of the SEMS application are required to
take an annual security training identifying the user's role and
responsibilities for protecting the Agency's information resources, as
well as, consequences for not adhering to the policy.
    (d) Audit logs are reviewed on a monthly basis to identify system
access outside of normal business hours, anomalous user accounts or
server names, or login failures.
    (e) No external access to SEMS is provided.
     Retention and Disposal: Records stored in this system are
subject to record schedule 0755, which is still being finalized.

System Manager(s) and Address:
    Steven Wyman, Office of Solid Waste and Emergency Response (OSWER),
Office of Superfund Remediation and Technology Information (OSRTI),
Mail Code 5202P, 1200 Pennsylvania Ave. NW., Washington, DC 20460;
telephone number<PHONE_NUMBER>.

Notification Procedure:
    Any individual who wants to know whether this system of records
contains a record about him or her, who wants access to his or her
record, or who wants to contest the contents of a record, should make a
written request to the EPA FOIA Office, Attn: Privacy Act Officer, MC
2822D, 1200 Pennsylvania Avenue NW., Washington, DC 20460.

Record Access Procedure:
    Request for access must be made in accordance with the procedures
described in EPA's Privacy Act regulations at 40 CFR part 16.
Requesters will be required to provide adequate identification, such as
driver's license, employee identification card, or other identifying
document. Additional identification procedures may be required in some
instances.

Contesting Record Procedure:
    Requests for correction or amendment must identify the record to be
changed and the corrective action sought. Complete EPA Privacy Act
procedures are described in EPA's Privacy Act regulations at 40 CFR
part 16.

Record Source Categories:
    Information captured in SEMS is derived from existing programmatic
records, EPA employees, contractors, civil investigators and attorneys,
analytical laboratories, the public and State cleanup programs.

System Exempted from Certain Provisions of the Act:
    None.

[FR Doc. 2015-08926 Filed 4-16-15; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 82, Number 160 (Monday, August 21, 2017)]
[Rules and Regulations]
[Pages 39518-39520]
[FR Doc No: 2017-17086]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0477; Product Identifier 2016-NM-112-AD; Amendment
39-18990; AD 2017-16-13]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

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

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Bombardier, Inc., Model CL-600-2B16 (CL-601-3A, CL-601-3R, and CL-604
Variants) airplanes. This AD was prompted by a report indicating that
the lanyard length of the passenger drop down oxygen masks is too long.
This AD requires replacing the existing oxygen mask lanyards with
lanyards of the correct length. We are issuing this AD to address the
unsafe condition on these products.

DATES: This AD is effective September 25, 2017.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of September
25, 2017.

ADDRESSES: For service information identified in this final rule,
contact Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 1Y9, Canada; Widebody Customer Response Center North
America toll-free telephone 1-866-538-1247 or direct-dial telephone 1-
514-855-2999; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
Internet http://www.bombardier.com. You may view this referenced
service information at the FAA, Transport Standards Branch, 1601 Lind
Avenue SW., Renton, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available on the
Internet at http://www.regulations.gov by searching for and locating
Docket No. FAA-2017-0477.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0477; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, the regulatory evaluation, any comments received, and
other information. The street address for the Docket Office (telephone
800-647-5527) is Docket 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: Cesar A. Gomez, Aerospace Engineer,
Airframe and Mechanical Systems Section, FAA, New York ACO Branch, 1600
Stewart Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain Bombardier, Inc.,
Model CL-600-2B16 (CL-601-3A, CL-601-3R, and CL-604 Variants)
airplanes. The NPRM published in the Federal Register on May 22, 2017
(82 FR 23156) (``the NPRM''). The NPRM was prompted by a report
indicating that the lanyard length of the passenger drop down oxygen
masks is too long. The NPRM proposed to require replacing the existing
oxygen mask lanyards with lanyards of the correct length. We are
issuing this AD to prevent improper oxygen flow functionality to the
passenger oxygen masks in the event of an emergency.
    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian Airworthiness Directive CF-
2016-15, dated May 18, 2016 (referred to after this as the Mandatory
Continuing Airworthiness Information, or ''the MCAI''), to correct an
unsafe condition for certain Bombardier, Inc., Model CL-600-2B16 (CL-
601-3A, CL-601-3R, and CL-604 Variants) airplanes. The MCAI states:

    Bombardier (BA) has determined that the lanyard length of the
passenger drop down oxygen masks is too long and may cause the
safety pin tethered to the opposite end of the lanyard to remain
engaged in the oxygen flow mechanism when the mask is pulled to the
passenger's face. In an emergency situation where oxygen is
required, it is possible that certain passengers may not receive
oxygen supply due to the increased length of the lanyard.
    BA has issued service bulletin (SB) 605-35-003 to replace the
existing lanyards in the passenger oxygen box assemblies with
lanyards of the correct length. Incorporation of this BA SB will
restore the proper oxygen flow functionality to the passenger oxygen
masks in the event of an emergency.
    This [Canadian] AD mandates the incorporation of [Bombardier] SB
605-35-003.

    You may examine the MCAI in the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0477.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the NPRM or on the determination of
the cost to the public.

Conclusion

    We reviewed the relevant data and determined that air safety and
the public interest require adopting this AD as proposed except for
minor editorial changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    Bombardier, Inc., has issued Service Bulletin 605-35-003, Revision
02, dated April 18, 2016. This service information describes procedures
for replacing the existing oxygen mask lanyards with lanyards of the
correct length. 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.

Costs of Compliance

    We estimate that this AD affects 120 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
              Action                      Labor cost              Parts cost          product        operators
----------------------------------------------------------------------------------------------------------------
Replacement......................  4 work-hours x $85 per    Not available......            $340         $40,800
                                    hour = $340.
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some of the costs of this AD may be
covered under warranty, thereby reducing the cost impact on affected
individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our 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.
    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.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to transport category airplanes to
the Director of the System Oversight Division.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    3. Will not affect intrastate aviation in Alaska; and
    4. 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 (AD):

2017-16-13 Bombardier, Inc.: Amendment 39-18990; Docket No. FAA-
2017-0477; Product Identifier 2016-NM-112-AD.

(a) Effective Date

    This AD is effective September 25, 2017.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Bombardier, Inc., Model CL-600-2B16 (CL-601-
3A, CL-601-3R, and CL-604 Variants) airplanes, certificated in any
category, serial numbers 5702 through 5705 inclusive, 5707, 5709,
5710, 5712, 5714, 5715, 5718, 5719, 5722, 5723, 5725, 5727, 5728,
5731 through 5733 inclusive, 5735, 5736, 5740, 5742, 5743, 5745,
5746, 5748 through 5750 inclusive, 5752 through 5754 inclusive, 5756
through 5758 inclusive, 5760 through 5762 inclusive, 5764 through
5766 inclusive, 5768 through 5770 inclusive, 5772 through 5774
inclusive, 5776 through 5780 inclusive, 5782 through 5787 inclusive,
5790, 5791, 5793, 5794, 5796, 5797, 5799, 5800, 5802, 5803, 5805
through 5814 inclusive, 5816, 5818 through 5820 inclusive, 5823
through 5829 inclusive, 5831 through 5853 inclusive, 5856, 5857,
5859 through 5863 inclusive, 5865 through 5874 inclusive, 5876
through 5881 inclusive, 5883 through 5888 inclusive, 5890 through
5894 inclusive, 5896 through 5898 inclusive, 5900 through 5906
inclusive, 5908 through 5911 inclusive, 5913 through 5938 inclusive,
5940 through 5947 inclusive, 5949 through 5980 inclusive, 5982
through 5985 inclusive, 5987, and 5988.

(d) Subject

    Air Transport Association (ATA) of America Code 35, Oxygen.

(e) Reason

    This AD was prompted by a report indicating that the lanyard
length of the passenger drop down oxygen masks is too long. The
length of the oxygen mask lanyard might cause the safety pin
tethered to the opposite end of the lanyard to remain engaged in the
oxygen flow mechanism when the mask is pulled to the passenger's
face. We are issuing this AD to prevent improper oxygen flow
functionality to the passenger oxygen masks in the event of an
emergency.

(f) Compliance

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

(g) Replacement of Oxygen Mask Lanyards

    Within 2,400 flight hours or 60 months, whichever occurs first
after the effective date of this AD, replace the existing lanyards
in the passenger oxygen box assemblies with lanyards of the correct
length, in accordance with the Accomplishment Instructions of
Bombardier Service Bulletin 605-35-003, Revision 02, dated April 18,
2016.

(h) Credit for Previous Actions

    This paragraph provides credit for actions required by paragraph
(g) of this AD, if those actions were performed before the effective
date of this AD using Bombardier Service Bulletin 605-35-003, dated
January 28, 2016; or Bombardier Service Bulletin 605-35-003,
Revision 01, dated February 10, 2016.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York 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 ACO, send it
to ATTN: Program Manager, Continuing Operational Safety, FAA, New
York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. 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.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, New York ACO,
FAA; or Transport Canada Civil Aviation (TCCA); or Bombardier,
Inc.'s TCCA Design Approval Organization (DAO). If approved by the
DAO, the approval must include the DAO-authorized signature.

(j) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian Airworthiness Directive CF-2016-15, dated May 18,
2016, for related information. This MCAI may be found in the AD
docket on the Internet at http://www.regulations.gov by searching
for and locating Docket No. FAA-2017-0477.
    (2) For more information about this AD, contact Cesar A. Gomez,
Aerospace Engineer,

Airframe and Mechanical Systems Section, FAA, New York ACO Branch,
1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-
228-7318; fax<PHONE_NUMBER>.
    (3) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (k)(3) and (k)(4) of this AD.

(k) 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 this AD specifies otherwise.
    (i) Bombardier Service Bulletin 605-35-003, Revision 02, dated
April 18, 2016.
    (ii) Reserved.
    (3) For service information identified in this AD, contact
Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 1Y9, Canada; Widebody Customer Response Center
North America toll-free telephone 1-866-538-1247 or direct-dial
telephone 1-514-855-2999; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Internet http://www.bombardier.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 1601 Lind Avenue SW., Renton, WA. 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, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on August 4, 2017.
Jeffrey E. Duven,
Director, System Oversight Division, Aircraft Certification Service.
[FR Doc. 2017-17086 Filed 8-18-17; 8:45 am]
 BILLING CODE 4910-13-P