[Federal Register Volume 82, Number 1 (Tuesday, January 3, 2017)]
[Proposed Rules]
[Pages 52-54]
[FR Doc No: 2016-30951]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-9380; Directorate Identifier 2016-NE-21-AD]
RIN 2120-AA64

Airworthiness Directives; CFE Company Turbofan Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain CFE Company (CFE) turbofan engines. This proposed AD was
prompted by a quality escape for high-pressure compressor (HPC)
impellers made from forgings with nonconforming material grain size.
This proposed AD would require removal of the HPC impeller. We are
proposing this AD to correct the unsafe condition on these products.

DATES: We must receive comments on this proposed AD by February 17,
2017.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

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-2016-
9380; 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 proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Office (phone:<PHONE_NUMBER>) is in the ADDRESSES section. Comments will
be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Martin Adler, Aerospace Engineer,
Engine Certification Office, FAA, 1200 District Avenue, Burlington, MA
01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2016-9380;
Directorate Identifier 2016-NE-21-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD because of those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    We propose to adopt an AD for certain CFE CFE738-1-1B model
turbofan engines with HPC impeller, part number (P/N) 6079T77P07 or P/N
6079T77P09 installed. This proposed AD was prompted by a quality escape
for HPC impellers made from forgings with nonconforming material grain
size. This condition, if not corrected, could result in failure of the
HPC impeller, damage to the engine, and damage to the airplane.

Related Service Information Under 1 CFR Part 51

    We reviewed CFE Service Bulletin (SB) CFE738-72-8080, Revision 0,
dated August 18, 2016. The SB describes procedures for replacing
specific serial numbered HPC impellers, P/N 6079T77P07 or P/N
6079T77P09. 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.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of the same type design.

Proposed AD Requirements

    This proposed AD would require removal of affected HPC impellers
from service and replacement with a part eligible for installation.

Costs of Compliance

    We estimate that this proposed AD affects 176 engines installed on
airplanes of U.S. registry.
    We estimate the following costs to comply with this proposed AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                     Action                         Labor cost      Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Pro-rated HPC impeller..........................           $0.00         $42,240         $42,240      $7,434,240
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would 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 this proposed
regulation:
    (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.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 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):

CFE Company: Docket No. FAA-2016-9380; Directorate Identifier 2016-
NE-21-AD.

(a) Comments Due Date

    We must receive comments by February 17, 2017.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to CFE Company (CFE) CFE738-1-1B model turbofan
engines with a high-pressure compressor (HPC) impeller, part number
(P/N) 6079T77P07 or P/N 6079T77P09, with a serial number listed in
CFE Service Bulletin (SB) CFE738-72-8080, Revision 0, dated August
18, 2016, installed.

(d) Subject

    Joint Aircraft System Component (JASC) of America Code 7230,
Turbine Engine Compressor Section.

(e) Unsafe Condition

    This AD was prompted by a quality escape for HPC impellers made
from forgings with nonconforming material grain size. We are issuing
this AD to prevent uncontained failure of the HPC impeller, damage
to the engine, and damage to the airplane.

(f) Compliance

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

(g) Required Action

    Remove all affected HPC impellers from service at the next
piece-part exposure and replace with a part eligible for
installation.

(h) Definition

    For the purposes of this AD, ``piece-part exposure'' is defined
as separation of the impeller from the compressor rotor assembly.

(i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Engine Certification Office, FAA, may approve
AMOCs for this AD. Use the procedures found in 14 CFR 39.19 to make
your request. You may email your request to<EMAIL_ADDRESS>    (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.

(j) Related Information

    (1) For more information about this AD, contact Martin Adler,
Aerospace Engineer, Engine Certification Office, FAA, 1200 District
Avenue, Burlington, MA 01803; phone:<PHONE_NUMBER>; fax: 781-238-
7199; email<EMAIL_ADDRESS>    (2) For service information identified in this proposed AD,
contact CFE Company, 111 S. 34th Street, Phoenix, Arizona 85034-
2802; phone:<PHONE_NUMBER>; Internet: https://www.myaerospace.com.
    (3) You may view this service information at FAA, Engine &
Propeller Directorate, 1200 District Avenue, Burlington, MA. For
information on the availability of this material at the FAA, call
781-238-7125.

    Issued in Burlington, Massachusetts, on December 15, 2016.
Colleen M. D'Alessandro,
Manager, Engine & Propeller Directorate, Aircraft Certification
Service.
[FR Doc. 2016-30951 Filed 12-30-16; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 77, Number 226 (Friday, November 23, 2012)]
[Notices]
[Pages 70166-70167]
[FR Doc No: 2012-28431]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2012-N-1090]

Provisions of the Food and Drug Administration Safety and
Innovation Act Related to Medical Gases; Establishment of a Public
Docket

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is establishing a
public docket for information pertaining to FDA's implementation of the
provisions of the Food and Drug Administration Safety and Innovation
Act (FDASIA) related to medical gases. This action is intended to
ensure that information submitted to FDA on the implementation of the
medical gas provisions of FDASIA is available to all interested persons
in a timely fashion.

DATES: Submit electronic or written comments by November 25, 2013.

ADDRESSES: Submit electronic comments to http://www.regulations.gov.
Submit written comments to the Division of Dockets Management (HFA-
305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061,
Rockville, MD 20852. All comments should be identified with the docket
number found in brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: Patrick Raulerson, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 51, rm. 6368, Silver Spring, MD 20993-0002, 301-
796-3522<EMAIL_ADDRESS>or Germaine Connolly, Center
for Veterinary Medicine, Food and Drug Administration, 7500 Standish
Pl., MPN2, Rockville, MD 20855,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    On July 9, 2012, President Obama signed into law FDASIA (Pub. L.
112-144, 126 Stat. 993). Title XI, Subtitle B, section 1111 of FDASIA
added new sections 575, 576, and 577 to the Federal Food, Drug, and
Cosmetic Act (the FD&C Act) regarding medical gases. Among other
things, these new sections define the terms ``designated medical gas''
and ``medical gas'' and establish the process for the certification of
a medical gas as a designated medical gas. (See sections 575(1) and (2)
of the FD&C Act.) The sections describe the process for filing a
request for certification and describe the information that should be
included in the request for certification. (See section 576(a) of the
FD&C Act.) Under section 576(a)(3) of the FD&C Act, if a certification
is granted for a designated medical gas, the designated medical gas
will be deemed to have in effect an approved new human drug application
under section 505 (21 U.S.C. 355) or an approved new animal drug
application under section 512 (21 U.S.C. 360b) of the FD&C Act for
certain specified indications and subject to all applicable
postapproval requirements. Under section 576(a)(1) of the FD&C Act,
requests for certification may be submitted to FDA beginning 180 days
after the enactment of FDASIA, or January 5, 2013.
    FDA is establishing a public docket for information pertaining to
FDA's implementation of these new medical gas provisions. This action
is intended to ensure that information submitted to FDA on the
implementation of the medical gas provisions of FDASIA is available to
all interested persons in a timely fashion. The Compressed Gas

Association and the Gases and Welding Distributors Association
voluntarily submitted to the Agency its views on implementation of the
medical gas provisions of FDASIA. FDA plans to place these comments in
the public docket so they are readily available to all interested
members of the public. FDA expects to place all additional submissions
containing recommendations on how the Agency should implement the
medical gas provisions of FDASIA in this docket, and directs the public
to submit all comments related to these provisions to this docket. This
docket will be open for comments for 1 year from the date of
publication of this notice. In addition, as FDA implements the medical
gas provisions of FDASIA, FDA plans to open other dockets. For example,
we plan to issue a separate Federal Register notice in the future to
provide the public with an opportunity to submit comments on section
1112 of FDASIA. Section 1112(a)(1) of FDASIA provides that not later
than 18 months after the date of the enactment of FDASIA, the
Secretary, after obtaining input from medical gas manufacturers and any
other interested members of the public, must determine whether any
changes to the Federal drug regulations are necessary for medical
gases.

II. Comments

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

    Dated: November 19, 2012.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2012-28431 Filed 11-21-12; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register Volume 79, Number 153 (Friday, August 8, 2014)]
[Notices]
[Pages 46494-46498]
[FR Doc No: 2014-18747]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72750; File No. SR-NYSE-2014-40]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change Establishing the NYSE Best
Quote & Trades Data Feed

August 4, 2014.
    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 July 21, 2014, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to establish the NYSE Best Quote & Trades
(``NYSE BQT'') data feed. The text of the proposed rule change is
available on the Exchange's Web site at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant 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 Exchange proposes to establish the NYSE BQT data feed. The NYSE
BQT data feed would provide a unified view of best bid and offer
(``BBO'') and

last sale information for the Exchange and its affiliates, NYSE Arca
Equities, Inc. (``NYSE Arca'') and NYSE MKT LLC (``NYSE MKT'').
Background
    In 2009, the Securities and Exchange Commission (the
``Commission'') approved the NYSE Trades data feed and certain fees for
it.\3\ NYSE Trades is an NYSE-only market data feed that distributes on
a real-time basis the same last sale information that the Exchange
reports under the Consolidated Tape Association (``CTA'') Plan for
inclusion in the CTA Plan's consolidated data streams.
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    \3\ See Securities Exchange Act Release Nos. 59290 (Jan. 23,
2009), 74 FR 5707 (Jan. 30, 2009) (SR-NYSE-2009-05); 59606 (Mar. 19,
2009), 74 FR 13293 (Mar. 26, 2009) (SR-NYSE-2009-04).
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    NYSE Arca established the NYSE Arca Trades data feed in 2009, and
NYSE MKT established the NYSE MKT Trades data feed in 2010.\4\ Similar
to NYSE Trades, NYSE Arca Trades is an NYSE Arca-only data feed and
NYSE MKT Trades is an NYSE MKT-only data feed. As with NYSE Trades, the
NYSE Arca Trades and NYSE MKT Trades data feeds each distribute on a
real-time basis the same last sale information that NYSE Arca and NYSE
MKT report, respectively, under the CTA Plan for inclusion in the CTA
Plan's consolidated data streams.
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    \4\ See Securities Exchange Act Release Nos. 59289 (Jan. 23,
2009), 74 FR 5711 (Jan. 30, 2009) (SR-NYSEArca-2009-06); 59598 (Mar.
18, 2009), 74 FR 12919 (Mar. 25, 2009) (SR-NYSEArca-2009-05); 62187
(May 27, 2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
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    In 2010, the Commission approved the NYSE BBO data feed and certain
fees for it.\5\ NYSE BBO is an NYSE-only market data feed that
distributes on a real-time basis the same BBO information that the
Exchange reports under the Consolidated Quotation (``CQ'') Plan for
inclusion in the CQ Plan's consolidated quotation information data
stream. The data feed includes the best bids and offers for all
securities that are traded on the Exchange and for which NYSE reports
quotes under the CQ Plan.
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    \5\ See Securities Exchange Act Release No. 62181 (May 26,
2010), 75 FR 31488 (June 3, 2010) (SR-NYSE-2010-30).
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    In 2010, the Commission also approved the NYSE Arca BBO and NYSE
MKT BBO data feeds and associated fees.\6\ As with NYSE BBO, NYSE Arca
BBO is an NYSE Arca-only market data feed and NYSE MKT BBO is an NYSE
MKT-only market data feed. Similar to NYSE BBO, NYSE Arca BBO and NYSE
MKT BBO each distribute on a real-time basis the same BBO information
that NYSE Arca and NYSE MKT report, respectively, under the CQ Plan for
inclusion in the CQ Plan's consolidated quotation information data
stream. NYSE Arca BBO includes the best bids and offers for all
securities that are traded on NYSE Arca and for which NYSE Arca reports
quotes under the CQ Plan. NYSE MKT includes the best bids and offers
for all securities that are traded on NYSE MKT and for which NYSE MKT
reports quotes under the CQ Plan.
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    \6\ See Securities Exchange Act Release Nos. 62188 (May 27,
2010), 75 FR 31484 (June 3, 2010) (SR-NYSEArca-2010-23); 62187 (May
27, 2010), 75 FR 31500 (June 3, 2010) (SR-NYSEAmex-2010-35).
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Proposed NYSE BQT Data Feed
    In response to customer requests, the Exchange proposes to
establish the NYSE BQT data feed, a data feed consisting of certain
data elements from six market data feeds--NYSE Trades, NYSE BBO, NYSE
Arca Trades, NYSE Arca BBO, NYSE MKT Trades, and NYSE MKT BBO. The
Exchange does not currently offer this product. The NYSE BQT data feed
would have three channels: One channel for the last sale data (the
``last sale channel''); another channel for the BBO data (the ``best
quotes channel''); and a third channel for consolidated volume data
(the ``consolidated volume channel'').
    The last sale channel provides an aggregation of the same data that
is available through NYSE Trades, NYSE Arca Trades, and NYSE MKT
Trades.
    The best quotes channel provides the NYSE BQT BBO, which is the
best quote from among the NYSE BBO, NYSE Arca BBO, and NYSE MKT BBO
based on the following criteria, in order:
     Price: the exchange with the highest bid or the lowest
offer has overall priority;
     Size: the largest size takes precedence when multiple
exchanges submit the same bid and/or offer price; and
     Time: the earliest time takes precedence when multiple
exchanges submit the same bid and/or offer price with the same sizes.
    For each security, the best quotes channel would only include one
best bid and one best offer from among the three exchanges. The NYSE
BQT BBO would be marked with a market center ID identifying the
exchange from which the BBO originated. For example, if XYZ stock were
traded on both NYSE and NYSE Arca, and the highest bid and lowest offer
according to the NYSE BBO were 1,000 shares at $10.00 and 1,000 shares
at $10.03, respectively, and the highest bid and lowest offer for XYZ
stock according to the NYSE Arca BBO were 1,200 shares at $9.99 and 900
shares at $10.02, respectively, then NYSE BQT would generate the best
bid for XYZ stock as 1,000 shares at $10.00 on NYSE and the best offer
at 900 shares at $10.02 on NYSE Arca.
    The consolidated volume channel will carry consolidated volume for
all listed equities in a manner consistent with the requirements for
redistributing such data as set forth in the securities information
processor plans.\7\
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    \7\ The ``securities information processor plans'' refer to the
CTA Plan and Nasdaq UTP Plan. See Telephone conversation between
Leah Mesfin, Special Counsel, Division of Trading & Markets,
Commission, and Marija Willen, Chief Counsel of NYSE Group Inc.,
NYSE (July 30, 2014).
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    NYSE BQT would also provide related data elements, such as trade
and security status updates (e.g., trade corrections and trading
halts).
    The Exchange proposes to offer NYSE BQT through the Exchange's
Secure Financial Transaction Infrastructure (``SFTI'') network and
market data vendors, as the Exchange does with its other proprietary
market data products.
    The Exchange believes that NYSE BQT would provide high-quality,
comprehensive last sale and BBO data for the Exchange, NYSE Arca, and
NYSE MKT in a unified view and respond to subscriber demand for such a
product. The Exchange notes that an anticipated end user might use NYSE
BQT for purposes of identifying an indicative price of Tape A, B, and C
securities through leveraging the depth and breadth of NYSE, NYSE Arca,
and NYSE MKT without having to purchase consolidated data and thus it
would not be a latency-sensitive product. The Exchange does not
anticipate that an end user would, or could, use the NYSE BQT data for
purposes of making order-routing or trading decisions. Rather, the
Exchange notes that under Rule 603 of Regulation NMS, NYSE BQT could
not be substituted for consolidated data in all instances in which
consolidated data is used and certain subscribers would still be
required to purchase consolidated data for trading and order-routing
purposes.\8\
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    \8\ 17 CFR 242.603(c).
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Exchange Not an Exclusive Distributor of NYSE BQT
    The Exchange proposes to offer the NYSE BQT data feed in a capacity
similar to that of a vendor. The Exchange, NYSE Arca, and NYSE MKT are
the exclusive distributors of the six BBO and Trades feeds \9\ from
which certain data elements would be taken to create the NYSE BQT. By
contrast, the Exchange would not be the exclusive

distributor of the aggregated and consolidated information that would
compose the proposed NYSE BQT data feed. Other vendors would be able,
if they chose, to create a data feed with the same information as
proposed for inclusion in NYSE BQT, and to distribute it to clients
with no greater latency than the Exchange would be able to distribute
NYSE BQT. In addition, the pricing the Exchange would charge clients
for NYSE BQT would not be lower than the cost to a vendor of receiving
the underlying data feeds and of maintaining co-located operations to
receive such data feeds with no greater latency than the Exchange.
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    \9\ These other data feeds are offered pursuant to pre-existing
and already effective rules filed with the Commission; those rules
will not be altered by this filing.
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    After creating the NYSE BQT, the Exchange would distribute this
data feed through SFTI and market data vendors. The path for
distribution by the Exchange of this data would not be faster than a
vendor that independently created an NYSE BQT-like product could
distribute its own product. As such, the proposed NYSE BQT data feed is
a data product that a competing vendor could create and sell without
being in a disadvantaged position relative to the Exchange. In
recognition that the Exchange is the source of its own market data and
is affiliated with NYSE Arca and NYSE MKT, the Exchange represents that
the source of the market data it uses to create the proposed NYSE BQT
is the same as the source available to other vendors.
    With respect to latency, the Exchange, NYSE Arca, and NYSE MKT are
located in the same data center in Mahwah, New Jersey. The system
creating and supporting the proposed NYSE BQT data feed would need to
obtain the six underlying data feeds from these three exchanges before
it could aggregate and consolidate information to create NYSE BQT and
then distribute it to end users. The Exchange also offers third parties
access to its data center through co-location. Accordingly, a competing
market data vendor co-located in the Exchange's Mahwah, New Jersey
facility offering a similar competing product would similarly need to
obtain the six underlying data feeds.
    The Exchange has designed the NYSE BQT data feed so that it would
not have a competitive advantage over a competing vendor with respect
to the speed of access to those six underlying data feeds. Likewise,
the NYSE BQT data feed would not have a speed advantage vis-[agrave]-
vis competing vendors co-located in the data center with respect to
access to end user customers, whether those end users are also co-
located or not. As such, a market data vendor could perform the
aggregation and consolidation function in the Mahwah facility and
redistribute a competing product from that location to similarly
situated customers on a level playing field with respect to the speed
that the Exchange could create and redistribute the NYSE BQT data feed.
    With respect to cost, the Exchange will file a separate rule filing
to establish the fees for NYSE BQT. To ensure that vendors could
compete with the Exchange by creating the same product as NYSE BQT and
sell it to their clients, the Exchange would charge its clients for the
NYSE BQT feed an amount that represents the cost to a market data
vendor to obtain the six underlying data feeds, plus $1,000 per month
to reflect the value of the aggregation and consolidation function. The
Exchange notes that a competing vendor might engage in a different
analysis of assessing the cost of a competing product, which may
incorporate passing through fees associated with co-location at the
Mahwah, New Jersey data center. However, the incremental co-location
costs to a particular vendor might be inconsequential if such vendor is
already co-located and is able to allocate its co-location costs over
numerous product and customer relationships. The Exchange therefore
believes that a competing vendor could create and offer a product
similar to the proposed NYSE BQT data feed at a similar cost. For these
reasons, the Exchange believes that vendors could readily offer a
product similar to NYSE BQT on a competitive basis.
    The Exchange will announce the effective date of the proposed rule
change in a notice to be published as soon as practicable following
approval of the proposed rule change by the Commission. The Exchange
anticipates making available the NYSE BQT data feed as soon as
practicable after approval of the proposed rule change by the
Commission.
2. Statutory Basis
    As noted above, the Exchange would be acting in the capacity of a
vendor with respect to the proposed NYSE BQT data feed. The proposed
NYSE BQT data feed is a product that relies on the Exchange's receipt
of underlying data, which is available to all market participants,
before it can aggregate and consolidate information to create the NYSE
BQT; this is a process that a competing vendor could also perform.
Accordingly, although the Exchange might be the only distributor of the
NYSE BQT data feed initially, it is not an exclusive position to
provide a product like the NYSE BQT data feed. Because the Exchange is
acting in a vendor capacity, the Exchange does not believe that its
proposed NYSE BQT data feed is subject to review under the Act.\10\
Nonetheless, the Exchange believes that the proposed rule change is
consistent with Section 6(b) \11\ of the Act, in general, and furthers
the objectives of Section 6(b)(5) \12\ of the Act, in particular, in
that it is designed 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 it is not designed to
permit unfair discrimination among customers, brokers, or dealers.
---------------------------------------------------------------------------

    \10\ The Exchange reserves the right to argue, with respect to
the NYSE BQT data feed or any other product, that there is no
requirement for a filing under Section 19 of the Act to enable the
Exchange to offer such products.
    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the Exchange has taken into consideration its
affiliated relationship with NYSE Arca and NYSE MKT in its design of
the NYSE BQT data feed to assure that similarly situated competing
vendors would be able to offer a similar product on the same terms as
the Exchange, both from the perspective of latency and cost. As
discussed in detail above, the Exchange proposes to begin offering the
NYSE BQT data feed voluntarily in response to demand from vendors and
subscribers that are interested in receiving BBO and last sale
information from the Exchange, NYSE Arca, and NYSE MKT in a unified
view. Specifically, portfolio managers, wealth managers, back-office
employees, and others are looking for a cost-effective, easy-to-
administer, high-quality market data product with the characteristics
of the NYSE BQT data feed. The NYSE BQT data feed will help to protect
a free and open market by providing vendors and subscribers with
additional choices in receiving this type of market data, thus
promoting competition and innovation.
    The Exchange believes that NYSE BQT will offer an alternative to
the use of consolidated data products and proprietary data products
such as NASDAQ Basic and NLS Plus in certain circumstances. NASDAQ
Basic, which is offered by The NASDAQ Stock Market, Inc. (``NASDAQ'')
pursuant to NASDAQ Rule 7047, provides best bid and offer and last sale
information for all U.S. exchange-listed securities (including NYSE and
its affiliates) based on liquidity within NASDAQ, as well as trades
reported to the FINRA/NASDAQ Trade Reporting Facility (``TRF''),
including NASDAQ last sale, NASDAQ

BBO, NASDAQ opening and closing prices, and other market status
information. According to NASDAQ, seven vendors offer and more than
1,000 firms subscribe to NASDAQ Basic, including 9 of the 10 largest
banks.\13\
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    \13\ See NASDAQ Basic, Doing More with Less, available at http://www.brainshark.com/nasdaqomx/vu?pi=zG8z33O6ozAgBpz0&tx=preview&preview=1 and http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic#vendors.
---------------------------------------------------------------------------

    NLS Plus is a data product that is offered by NASDAQ OMX
Information, LLC, a NASDAQ affiliate that is not a self-regulatory
organization (``SRO''); neither NLS Plus nor its pricing was subject to
the rule filing process. NLS Plus provides all trade data from NASDAQ,
the FINRA/NASDAQ TRF, NASDAQ OMX BX, and NASDAQ OMX PSX, as well as
consolidated volume information as part of each trade message.\14\
---------------------------------------------------------------------------

    \14\ See NLS Product page, available at http://www.nasdaqtrader.com/Trader.aspx?id=NLSplus. BATS Exchange, Inc. has
announced its intention to offer the BATS One Feed, which will
deliver aggregated quote, trade, and optional depth information for
all four U.S. equity exchanges operated by BATS, as of August 1,
2014, available at http://cdn.batstrading.com/resources/market_data/products/bats_bats-one-feed.pdf.
---------------------------------------------------------------------------

    BATS Global Markets (``BATS'') has announced that it intends to
offer a market data product that provides a unified view of the
aggregated best bid and offer, last sale, and optional depth
information (five levels), including size, for all four equity
exchanges operated by BATS.\15\ The Exchange believes that NYSE BQT
will offer a competitive alternative to the two existing NASDAQ
products and the proposed BATS product, but notes that, unlike BATS, it
is offering NYSE BQT in the capacity of a vendor.
---------------------------------------------------------------------------

    \15\ See http://cdn.batstrading.com/resources/press_releases/BATS-One-Announcement-FINAL.pdf. BATS has also submitted rule
filings on behalf it its four exchanges to the Commission on the
basis that its proposed unified feed is a proprietary market data
product. See also SR-BATS-2014-028, SR-BYX-2014-011, SR-EDGA-2014-
16, and SR-EDGX-2014-19.
---------------------------------------------------------------------------

    In addition, the proposal would not permit unfair discrimination
because the product will be available to all of the Exchange's
customers through SFTI and market data vendors on an equivalent basis.
In addition, any customer that wished to continue to be able to
purchase one or more of the individual underlying data feeds would be
able to do so.
    In addition, the Exchange does not believe that the proposal would
permit unfair discrimination among customers, brokers, or dealers and
thus is consistent with the Act because the Exchange will be offering
the product on terms that a competing vendor could offer a competing
product. Specifically, the proposed data feed does not represent
Exchange core data, but rather a new product that represents an
aggregation and consolidation of existing, previously filed market data
products of the Exchange, NYSE Arca, and NYSE MKT. As such, a competing
vendor could similarly obtain the six underlying data feeds and perform
a similar aggregation and consolidation function to create the same
data product with the same latency. More specifically, a competing
vendor that is co-located in the Exchange's Mahwah, New Jersey data
center could obtain the six underlying data feeds from the Exchange,
NYSE Arca, and NYSE MKT on the same latency basis as the system that
would be performing the aggregation and consolidation of the proposed
NYSE BQT data feed and provide the same type of product to its
customers with the same latency they could achieve by purchasing the
NYSE BQT product from the Exchange. As such, the Exchange would not
have any unfair advantage over competing vendors with respect to
obtaining data from NYSE Arca and NYSE MKT; in fact, the technology
supporting the NYSE BQT data feed would similarly need to obtain the
Exchange's data feed as well and even this connection would be on a
level playing field with a competing vendor co-located at the data
center. In addition, the Exchange would be charging for the proposed
NYSE BQT data feed competitively with the price that a competing vendor
could assess for a competing product.

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

    In accordance with Section 6(b)(8) of the Act,\16\ 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. As noted above, the Exchange proposes to offer
the NYSE BQT data feed in a capacity similar to that of a vendor.
Although the Exchange, NYSE Arca, and NYSE MKT are the exclusive
distributors of the six BBO and Trades feeds from which certain data
elements would be taken to create the NYSE BQT, the Exchange would not
be the exclusive distributor of the aggregated and consolidated
information that would compose the proposed NYSE BQT data feed. Vendors
would be able, if they chose, to create a data feed with the same
information as the NYSE BQT and distribute it to their clients on a
level-playing field with respect to latency and cost as compared to the
Exchange's proposed BQT data feed. In addition, the pricing the
Exchange would charge clients for NYSE BQT would not be lower than the
cost to a vendor of receiving the underlying data feeds and of
maintaining co-located operations to receive and distribute such data
feeds with no greater latency than the Exchange.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    With respect to latency, the Exchange, NYSE Arca, and NYSE MKT are
located in the same data center in Mahwah, New Jersey. The system
creating and supporting the proposed NYSE BQT data feed would need to
obtain the six underlying data feeds from these three exchanges before
it could aggregate and consolidate information to create NYSE BQT and
then distribute it to end users. A competing market data vendor co-
located at the Exchange's Mahwah, New Jersey facility offering a
similar competing product would similarly need to obtain the six
underlying data feeds.
    The Exchange has designed the NYSE BQT data feed so that it would
not have a competitive advantage over a competing vendor with respect
to the speed of access to those six underlying data feeds. Likewise,
the NYSE BQT data feed would not have a speed advantage vis-[agrave]-
vis competing vendors co-located in the data center with respect to
access to end user customers, whether those end users are also co-
located or not. As such, a market data vendor could perform the
aggregation and consolidation function in the Mahwah facility and
redistribute a competing product from that location to similarly
situated customers on a level-playing field with respect to the speed
that the Exchange could create and redistribute the NYSE BQT data feed.
    With respect to cost, the Exchange will file a separate rule filing
to establish the fees for NYSE BQT. To ensure that vendors could
compete with the Exchange by creating the same product as NYSE BQT and
sell it to their clients, the Exchange would charge its clients for the
NYSE BQT feed an amount that represents the cost to a market data
vendor to obtain the six underlying data feeds, plus $1,000 per month
to reflect both the value of the aggregation and consolidation
function. The Exchange notes that a competing vendor might engage in a
different analysis of assessing the cost of a competing product, which
may incorporate passing through fees associated with co-location at the
Mahwah, New Jersey data center. However, the incremental co-location
costs to a particular vendor may be inconsequential if such vendor is
already co-located and is able to allocate

its co-location costs over numerous product and customer relationships.
The Exchange therefore believes that a competing vendor could create
and offer a product similar to the proposed NYSE BQT data feed at a
similar cost. For these reasons, the Exchange believes that vendors
could readily offer a product similar to NYSE BQT on a competitive
basis.
    The Exchange further believes that NYSE BQT will promote
competition among exchanges by offering an alternative to NASDAQ Basic
and NLS Plus, which are already offered by NASDAQ. As noted above,
seven vendors are already offering and more than 1,000 firms are
already subscribing to NASDAQ Basic, including 9 of the 10 largest
banks.\17\ BATS also has announced that it intends to offer a market
data product that is similar to the NASDAQ products and NYSE BQT.\18\
For these reasons, the Exchange believes that offering NYSE BQT will
promote, rather than unnecessarily or inappropriately burden,
competition for market data products that are offered in the capacity
as a vendor and are not core exchange market data products.
---------------------------------------------------------------------------

    \17\ See supra note 12.
    \18\ See http://cdn.batstrading.com/resources/press_releases/BATS-One-Announcement-FINAL.pdf, supra note 15.
---------------------------------------------------------------------------

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

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days of such
date (i) as the Commission may designate if it finds such longer period
to be appropriate and publishes its reasons for so finding or (ii) as
to which the Exchange consents, the Commission shall:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2014-40 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2014-40. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of NYSE. 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-NYSE-2014-40 and should be
submitted on or before August 29, 2014.
    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-18747 Filed 8-7-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 30, 2010 (Volume 75, Number 146)]
[Proposed Rules]
[Page 44930-44932]
[DOCID:fr30jy10-20]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 131

[EPA-HQ-OW-2010-0606; FRL-9182-1]

Stakeholder Input; Revisions to Water Quality Standards
Regulation

AGENCY: Environmental Protection Agency.

ACTION: Listening sessions.

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SUMMARY: The Environmental Protection Agency (EPA) is announcing its
plans to initiate national rulemaking to make a limited set of targeted
changes to EPA's water quality standards regulation. EPA expects to
publish such proposed rule changes in the Federal Register in Summer
2011. EPA's intent is to improve the regulation's effectiveness in
helping to restore and maintain the chemical, physical, and biological
integrity of the Nation's waters. The purpose of this notice is to
announce EPA's intent to hold two informal public ``listening
sessions'' in August 2010. The sessions will allow EPA to inform the
public about the rulemaking, and will offer an opportunity for the
public to express views on the general direction of the rulemaking,
including the six specific elements of the rulemaking.

DATES: The two public listening sessions will be held as audio
teleconferences on August 24 and 26, 2010, from 1 to 2:30 p.m. EDT.

FOR FURTHER INFORMATION CONTACT: Thomas J. Gardner, EPA Headquarters,
Office of Water, Office of Science and Technology, at<PHONE_NUMBER> or
e-mail<EMAIL_ADDRESS>    In order to provide an adequate number of telephone lines for those
wishing to attend EPA's sessions, interested individuals should
register in advance following instructions on the Internet at http://
www.epa.gov/waterscience/standards/rules/wqs. Although you may register
at any time prior to the session of your choice, EPA prefers that you
register at least three days in advance.
    The agenda and resource materials will be identical for the two
sessions. You do not need to attend both sessions.
    If you do not have Internet access, please contact the person named
in the FOR FURTHER INFORMATION CONTACT section above.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Public Listening Sessions

    EPA will hold two informal public listening sessions via audio
teleconference in August 2010 to inform the public about the
rulemaking, and to hear views from the public regarding possible
changes to EPA's water quality standards regulation at 40 CFR part 131
that are under consideration. The sessions will provide a review of
EPA's current water quality standards regulation and a summary of the
clarifications that EPA is considering. Clarifying questions and brief
oral

comments (three minutes or less) will be accepted at the sessions, as
time permits.

B. How can I get copies of this document and other related information?

    1. Docket. EPA has established an official public docket for this
action under Docket ID No. EPA-HQ-OW-2010-0606. The official public
docket is the collection of materials that is available for public
viewing at the Water Docket in the EPA Docket Center, (EPA/DC) EPA
West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. Although
all documents in the docket are listed in an index, some information is
not publicly available, i.e., CBI or other information whose disclosure
is restricted by statute. Publicly available docket materials are
available in hard copy at the EPA Docket Center Public Reading Room,
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
(202) 566-1744, and the telephone number for the Water Docket is (202)
566-2426. The docket can also accessed electronically at EPA Dockets at
http://www.epa.gov/edocket/. Once in the system, select ``search'',
then key in the appropriate docket identification number.
    2. Electronic Access. You may access this Federal Register document
electronically through the EPA Internet under the ``Federal Register''
listings at http://www.epa.gov/fedrgstr/.
    Electronic versions of this notice and other water quality
standards documents are available at EPA's water quality standards Web
site http://www.epa.gov/waterscience/standards.

II. Background

Statutory and Regulatory Overview

    Water quality standards serve as the foundation for the water
quality-based approach to pollution control and are a fundamental
component of watershed management. Water quality standards are
provisions of state, tribal, or federal law that define the water
quality goals of a water body, or segment thereof, by designating the
use or uses to be made of the water body; establishing criteria based
on sound science that are protective of applicable uses; and protecting
water quality through antidegradation requirements. See 40 CFR part
131. States and tribes adopt water quality standards to protect public
health or welfare, enhance the quality of water, and serve the purposes
of the Act. See Clean Water Act (CWA or Act) 303(c). ``Serve the
purposes of the Act'' (as defined in sections 101(a)(2), and 303(c) of
the CWA) means that water quality standards should: (1) Include
provisions for restoring and maintaining chemical, physical, and
biological integrity of state and tribal waters; (2) provide, wherever
attainable, water quality for the protection and propagation of fish,
shellfish, and wildlife and recreation in and on the water; and (3)
consider the use and value of state and tribal waters for public water
supplies, propagation of fish and wildlife, recreation, agricultural
and industrial purposes, and navigation. See 40 CFR 131.2.
    The statutory basis for water quality standards and EPA's
regulation is section 303(c) of the CWA. Section 303(c)(2) of the CWA
directs states to consider the use and value of waters for specific
purposes, including public water supply, propagation of fish and
wildlife, recreational purposes, agricultural and industrial water
supplies and other purposes including navigation. Section 303(c)(2)
also requires that standards protect public health or welfare, enhance
the quality of water and serve the purposes of the Act. CWA section
303(c)(1) requires that states review their standards at least once
every three years. CWA section 303(c)(3) establishes timelines for EPA
review and approval or disapproval of new or revised standards, and CWA
section 303(c)(4) specifies requirements regarding promulgation of
federal water quality standards in cases where a new or revised
standard is found by EPA not to be consistent with the CWA or in any
case where the Administrator determines that a new or revised standard
is necessary to meet the requirements of the CWA.
    EPA's Water Quality Standards regulation is at 40 CFR part 131. The
regulation implements the requirements of section 303(c) of the CWA.
Fundamentally, the regulation: (1) Defines when and how designated uses
may be revised; (2) requires criteria to protect those uses and be
based on sound science; (3) requires EPA and states to prevent the
degradation of water quality, except under certain circumstances; (4)
requires states/tribes to review their water quality standards at least
every three years and engage the public in any revisions to water
quality standards; and (5) specifies roles of states and EPA and
provides administrative procedures for EPA's review and approval or
disapproval of any new or revised state water quality standards.

III. Changes to EPA's Water Quality Standards Regulation Under
Consideration

    EPA is planning to propose a limited set of targeted changes to its
water quality standards regulation to improve its effectiveness in
helping restore and maintain the chemical, physical, and biological
integrity of the Nation's waters. EPA expects to publish a proposed
rule in the Federal Register in Summer 2011.
    The core requirements of the current regulation have been in place
since 1983. These requirements have provided a solid foundation for
water quality-based controls, including CWA section 303(d) assessments,
listings, and Total Maximum Daily Loads (TMDLs), as well as discharge
permits issued under the National Pollutant Discharge Elimination
System (NPDES). The intent of the changes EPA is considering is to add
or modify a limited number of provisions to address the specific areas
described below.
    The following is a brief summary of the clarifications to the water
quality standards regulation that EPA is considering.

A. Antidegradation Implementation Methods

    The current regulation specifies that states and authorized tribes
must identify the methods to implement the antidegradation policies
that they are required to adopt in their water quality standards. 40
CFR 131.12(a). The regulation does not specify what the implementation
methods must include, but only states that such methods must be, as the
policies must be, ``consistent with'' 40 CFR 131.12(a). EPA is
considering modifying the regulation to specify that antidegradation
implementation methods must meet specific minimum requirements.
Specifically, EPA is considering adding a subparagraph (b) to 40 CFR
131.12 (which currently has a subparagraph (a) but not (b)) that would
specify minimum elements to be included in state or authorized tribe
antidegradation implementation methods. EPA is also considering
requiring that antidegradation implementation methods be adopted into
state and tribal water quality standards, and thus be subject to EPA
review and approval under CWA section 303(c), rather than having them
simply be identified. In the listening sessions, EPA will invite views
from the public on these potential changes, including what the minimum
requirements should include.

B. Administrator's ``Determination''

    The CWA provides that the Administrator may determine that a
revised or new standard is necessary to meet the requirements of the
CWA. Section 303(c)(4)(B). If such a determination is made, EPA must
promptly propose a revised or new federal standard to augment or
replace the state's or authorized tribe's water quality standards, and
promulgate the proposed standard within 90 days of proposal. See CWA
303(c)(4). Since this provision was enacted by Congress in 1972, there
have been recurring instances of confusion or misunderstanding about
what constitutes such a determination. EPA is considering clarifying in
the water quality standards regulation that an Administrator's
determination must be signed by the Administrator or his/her duly
authorized designee, and must include a statement that the document
constitutes a determination under section 303(c)(4)(B) of the CWA. In
the listening sessions, EPA will invite views from the public on these
changes.

C. Designated Uses

    Section 101(a)(2) of the Act establishes a goal, wherever
attainable, of water quality that provides for the protection and
propagation of fish, shellfish, and wildlife and recreation in and on
the water. The water quality standards regulation requires that the
state or authorized tribe perform a use attainability analysis (that
is, a structured scientific assessment of factors affecting attainment
of designated uses) and submit this assessment to EPA in order to
remove certain designated uses, including any designated use that is
specified as a national goal in section 101(a)(2) of the CWA. See 40
CFR 131.10. The regulation does not, however, specify which uses, if
any, must be adopted to replace the use that is being removed. EPA is
considering clarifying that designated uses reflecting the CWA
101(a)(2) goals of the CWA are presumed attainable unless otherwise
demonstrated and that states and authorized tribes must designate such
uses unless they have conducted a use attainability analysis to support
a lesser designated use and EPA has approved that action. EPA is also
considering clarifying that the highest attainable use(s) closest to
the section 101(a)(2) goal must be adopted if a CWA 101(a)(2) goal use
is unattainable. In the listening sessions, EPA will invite views from
the public on these changes.

D. Variances

    The current regulation allows states and authorized tribes to adopt
variances as general policies for applying and implementing their water
quality standards. See 40 CFR 131.13. The regulation does not provide a
definition of, a description of, or any requirements for the use of
variances. EPA is considering establishing regulatory requirements for
variances to ensure proper use of variances and reduce the possibility
of inappropriate use. In the listening sessions, EPA will invite views
from the public on these clarifications, and what the regulatory
requirements should include.

E. Triennial Reviews

    The CWA and the current water quality standards regulation require
states and authorized tribes to review their water quality standards at
least once every three years, and modify standards or adopt new
standards as appropriate. CWA 303(c); 40 CFR 131.20. EPA is considering
revising the regulatory requirements to clarify that states and
authorized tribes must solicit and consider public comments in
determining the scope of each such triennial review. EPA is also
considering establishing a new triennial review requirement that states
and authorized tribes must evaluate whether their existing water
quality criteria continue to be protective of designated uses, taking
into consideration any new information, including EPA's most recent
national recommended CWA 304(a) water quality criteria, that has become
available since the state or tribal criteria were adopted or last
revised. In the listening sessions, EPA will invite views from the
public on these changes.

F. Updates To Reflect Court Decisions

    EPA is considering making three clarifications to the water quality
standards regulation to codify the results of court decisions over the
years.
    First, EPA is considering revising the definition of ``water
quality standards'' in 40 CFR 131.3 to reflect the results of and EPA's
actions on remand from Florida Public Interest Research Group Citizen
Lobby, Inc., Save our Suwannee, Inc., et al. v. EPA, et al., 386 F.3d
1070 (11th Cir. 2004) concerning Florida's Impaired Water Rule (IWR).
That court decision and EPA's response to it more clearly define which
of state or tribal provisions constitute water quality standards that
need to be submitted to EPA for review and approval. EPA is considering
revising 40 CFR part 131 to reflect these developments.
    Second, EPA is considering specifying that authorizing provisions
for compliance schedules for implementing water quality-based effluent
limits in NPDES permits must be adopted as part of a state's or tribe's
water quality standards, and therefore be submitted to EPA for review
and approval. See In the Matter of Star-Kist Caribe, Inc., 1990 WL
324290 (EPA), 3 EAD 172 (April 16, 1990).
    Third, EPA is considering clarifying that states and authorized
tribes must submit to EPA records of public participation that has
occurred in reviewing and revising state or tribal water quality
standards. These records would include public comments, and the state's
or tribe's responses to the comments. This change would reflect the
results of City of Albuquerque v. Browner, 97 F.3d 415 (10th Cir.
1996).
    In the listening sessions, EPA will invite views from the public on
these changes.

IV. Other EPA Outreach

    EPA expects to conduct outreach with additional stakeholders as
well as local, state, and tribal governments before proposing any
revisions to the water quality standards regulation. This outreach
includes discussions and consultation with federally-recognized Indian
tribes, consistent with Executive Order 13175 (Tribal Consultation);
consultation with representatives of elected officials of state and
local government, consistent with Executive Order 13132 (Federalism);
and consultation with state water quality program officials as co-
regulators. EPA will continue outreach efforts prior to finalizing any
revisions.

    Dated: July 22, 2010.
Ephraim S. King,
Director, Office of Science and Technology.
[FR Doc. 2010-18557 Filed 7-29-10; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Proposed Rules]
[Pages 35413-35416]
[FR Doc No: 2021-14269]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0545; Project Identifier MCAI-2021-00071-T]
RIN 2120-AA64

Airworthiness Directives; Airbus SAS Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for all Airbus SAS Model A350-941 and -1041 airplanes. This proposed AD
was prompted by a report of a broken forward guide arm found during a
passenger door emergency opening test. Investigation results indicated
that the opening speed of the door was higher than expected, likely
caused by a reduced damping due to oil leakage of the passenger door
damper emergency opening actuator (DEOA). This proposed AD would
require repetitively replacing certain forward and aft guide arms on
the passenger door, inspecting the forward and aft guide arm support
brackets for damage, modifying certain DEOAs, and repair if necessary.
This proposed AD would also provide an optional terminating action for
the repetitive replacements, as specified in a European Union Aviation
Safety Agency (EASA) AD, which is proposed for incorporation by
reference. The FAA is proposing this AD to address the unsafe condition
on these products.

DATES: The FAA must receive comments on this proposed AD by August 20,
2021.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For material that will be incorporated by reference (IBR) in this
AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany;
telephone +49 221 8999 000; email<EMAIL_ADDRESS>internet
www.easa.europa.eu. You may find this IBR material on the EASA website
at https://ad.easa.europa.eu. You may view this IBR material at the
FAA, Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>. It is also available in
the AD docket on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2021-0545.

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-2021-
0545; 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 NPRM, any comments received, and other information. The street
address for Docket Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Kathleen Arrigotti, Aerospace
Engineer, Large Aircraft Section, International Validation Branch, FAA,
2200 South 216th St., Des Moines, WA 98198; telephone and fax 206-231-
3218; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2021-0545; Project Identifier
MCAI-2021-00071-T'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
the proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any

personal information you provide. The agency will also post a report
summarizing each substantive verbal contact received about this
proposed AD.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to
Kathleen Arrigotti, Aerospace Engineer, Large Aircraft Section,
International Validation Branch, FAA, 2200 South 216th St., Des Moines,
WA 98198; telephone and fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Any commentary that the FAA receives which
is not specifically designated as CBI will be placed in the public
docket for this rulemaking.

Background

    EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2021-0085, dated March 19, 2021
(EASA AD 2021-0085) (also referred to as the Mandatory Continuing
Airworthiness Information, or the MCAI), to correct an unsafe condition
for all Airbus SAS Model A350-941 and -1041 airplanes. EASA AD 2021-
0085 supersedes EASA AD 2021-0018 dated 15 January 2021, retains all
requirements and adds terminating action for the repetitive
replacements.
    This proposed AD was prompted by a report of a broken forward guide
arm found during a passenger door emergency opening test. Investigation
results indicated that the opening speed of the door was higher than
expected, likely caused by a reduced damping due to oil leakage of the
passenger door DEOA. The FAA is proposing this AD to address failure of
a passenger door to perform its intended function during an emergency
opening, which could result in reduced evacuation capacity from the
airplane and injury to occupants. See the MCAI for additional
background information.

Related Service Information Under 1 CFR Part 51

    EASA AD 2021-0085 describes procedures for repetitively replacing
the forward and aft guide arms following any passenger door emergency
opening, modifying the airplane so that there is a maximum of one
affected DEOA per door pair (left- and right-hand sides), inspecting
the forward and aft guide arm support brackets for damage, and repair.
EASA AD 2021-0085 also describes procedures for replacement of each
affected DEOA having part number FE396001001, which is terminating
action for the repetitive replacements.
    This material 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.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with the State of Design Authority,
the FAA has been notified of the unsafe condition described in the MCAI
referenced above. The FAA is proposing this AD because the FAA
evaluated all the relevant information and determined the unsafe
condition described previously is likely to exist or develop in other
products of the same type design.

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in EASA AD 2021-0085 described previously, as incorporated by
reference, except for any differences identified as exceptions in the
regulatory text of this AD.

Explanation of Required Compliance Information

    In the FAA's ongoing efforts to improve the efficiency of the AD
process, the FAA initially worked with Airbus and EASA to develop a
process to use certain EASA ADs as the primary source of information
for compliance with requirements for corresponding FAA ADs. The FAA has
since coordinated with other manufacturers and civil aviation
authorities (CAAs) to use this process. As a result, EASA AD 2021-0085
will be incorporated by reference in the FAA final rule. This proposed
AD would, therefore, require compliance with EASA AD 2021-0085 in its
entirety, through that incorporation, except for any differences
identified as exceptions in the regulatory text of this proposed AD.
Using common terms that are the same as the heading of a particular
section in the EASA AD does not mean that operators need comply only
with that section. For example, where the AD requirement refers to
``all required actions and compliance times,'' compliance with this AD
requirement is not limited to the section titled ``Required Action(s)
and Compliance Time(s)'' in the EASA AD. Service information specified
in EASA AD 2021-0085 that is required for compliance with EASA AD 2021-
0085 will be available on the internet at https://www.regulations.gov
by searching for and locating Docket No. FAA-2021-0545 after the FAA
final rule is published.

Costs of Compliance

    The FAA estimates that this proposed AD affects 15 airplanes of
U.S. registry. The FAA estimates the following costs to comply with
this proposed AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
             Labor cost                    Parts cost           Cost per product       Cost on U.S.  operators
----------------------------------------------------------------------------------------------------------------
Up to 93 work-hours x $85 per hour   Up to $13,600.........  Up to $21,505........  Up to $322,575.
 = Up to $7,905.
Modification.......................  $0....................  Up to $935...........  Up to $14,025.
----------------------------------------------------------------------------------------------------------------

    The FAA has received no definitive data on which to base the cost
estimates for the on-condition repairs specified in this proposed AD.
    According to the manufacturer, some or all of the costs of this
proposed AD may be covered under warranty, thereby

reducing the cost impact on affected operators. The FAA does not
control warranty coverage for affected operators. As a result, the FAA
has included all known costs in the 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

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would 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 this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would 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.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 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:

Airbus SAS: Docket No. FAA-2021-0545; Project Identifier MCAI-2021-
00071-T.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by August 20, 2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all Airbus SAS Model A350-941 and -1041
airplanes, certificated in any category.

(d) Subject

    Air Transport Association (ATA) of America Code 52, Doors.

(e) Reason

    This AD was prompted by a report of a broken forward guide arm
found during a passenger door emergency opening test. Investigation
results indicated that the opening speed of the door was higher than
expected, likely caused by a reduced damping due to oil leakage of
the passenger door damper emergency opening actuator (DEOA). The FAA
is issuing this AD to address failure of a passenger door to perform
its intended function during an emergency opening, which could
result in reduced evacuation capacity from the airplane and injury
to occupants.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, European Union Aviation Safety Agency (EASA) EASA
AD 2021-0085, dated March 19, 2021 (EASA AD 2021-0085).

(h) Exceptions to EASA AD 2021-0085

    (1) Where EASA AD 2021-0085 refers to January 29, 2021 (the
effective date of EASA AD 2021-0018), this AD requires using the
effective date of this AD.
    (2) Where EASA AD 2021-0085 refers to its effective date, this
AD requires using the effective date of this AD.
    (3) The ``Remarks'' section of EASA AD 2021-0085 does not apply
to this AD.
    (4) Where paragraphs (4) and (5) of EASA AD 2021-0085 refer to
``the limits as defined in the inspection SB [service bulletin],''
for this AD use ``the limits as defined in ASR [aircraft structural
repair] A350-A-51-73-11-01ZZZ-667Z-A.''
    (5) Where paragraphs (1) and (2) of EASA AD 2021-0085 specify to
``replace the forward and aft guide arms on that door in accordance
with the instructions of the inspection SB,'' this AD requires
``removing the forward and aft guide arms on that door, in
accordance with the instructions of the inspections SB; doing a
detailed inspection of the forward and aft guide arm support bracket
on that door and all applicable corrective actions as specified in
paragraphs (3) through (5) of EASA AD 2021-0085; and installing new
forward and aft guide arms on that door, in accordance with the
instructions of the inspections SB.''

(i) No Reporting Requirement

    Although the service information referenced in EASA AD 2021-0085
specifies to submit certain information to the manufacturer, this AD
does not include that requirement.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Large Aircraft Section, International Validation 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 responsible Flight
Standards Office, as appropriate. If sending information directly to
the Large Aircraft Section, International Validation Branch, send it
to the attention of the person identified in paragraph (k)(2) of
this AD. Information may be emailed to<EMAIL_ADDRESS>
Before using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, Large Aircraft
Section, International Validation Branch, FAA; or EASA; or Airbus
SAS's EASA Design Organization Approval (DOA). If approved by the
DOA, the approval must include the DOA-authorized signature.
    (3) Required for Compliance (RC): Except as required by
paragraph (j)(2) of this AD, if any service information contains
procedures or tests that are identified as RC, those procedures and
tests must be done to comply with this AD; any procedures or tests
that are not identified as RC are recommended. Those procedures and
tests that are not identified as RC may be deviated from using
accepted methods in accordance with the operator's maintenance or
inspection program without obtaining approval of an AMOC, provided
the procedures and tests identified as RC can be done and the
airplane can be put back in an airworthy condition. Any
substitutions or changes to procedures or tests identified as RC
require approval of an AMOC.

(k) Related Information

    (1) For information about EASA AD 2021-0085, contact EASA,
Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email<EMAIL_ADDRESS>internet www.easa.europa.eu. You
may find this EASA AD on the EASA website at https://ad.easa.europa.eu. You may view this material at the FAA,
Airworthiness Products

Section, Operational Safety Branch, 2200 South 216th St., Des
Moines, WA. For information on the availability of this material at
the FAA, call<PHONE_NUMBER>. This material may be found in the AD
docket on the internet at https://www.regulations.gov by searching
for and locating Docket No. FAA-2021-0545.
    (2) For more information about this AD, contact Kathleen
Arrigotti, Aerospace Engineer, Large Aircraft Section, International
Validation Branch, FAA, 2200 South 216th St., Des Moines, WA 98198;
telephone and fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
    Issued on June 29, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-14269 Filed 7-2-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: March 1, 2006 (Volume 71, Number 40)]
[Notices]
[Page 10582-10583]
[DOCID:fr01mr06-128]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53350; File No. SR-PCX-2006-08]

Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
the Exchange's Standard Position and Exercise Limit Pilot Program

February 22, 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 February 14, 2006, the Pacific Exchange, Inc. (``PCX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the PCX. The Exchange has
filed the proposal as a ``non-controversial'' rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders it effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The PCX proposes to amend its rules to extend the time period in
PCX Rule 6.8(a), which covers the position limit and exercise limits
pilot program for equity option contracts and options on the Nasdaq-100
Tracking Stock (``QQQQ'') (``Pilot Program''). The text of the proposed
rule change is available on the PCX's Web site (http://www.pacificex.com
), at the PCX's principal office, and at the

Commission's Public Reference Room.

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

    In its filing with the Commission, the PCX 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. The Exchange 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 purpose of this proposal is to extend the period for the
Exchange's Pilot Program relating to standard position and exercise
limits for equity option contracts and for options on QQQQs until
September 1, 2006.\5\ Specifically, the Pilot Program increased the
applicable position and exercise limits for equity options and options
on the QQQQ in accordance with the following levels:
---------------------------------------------------------------------------

    \5\ The Pilot Program, which was effective upon filing on
February 25, 2005 and subsequently extended, is set to expire on
February 26, 2006. See Securities Exchange Act Release No. 51286
(March 1, 2005), 70 FR 11297 (March 8, 2005) (notice of filing and
immediate effectiveness of File No. SR-PCX-2003-55, as amended)
(``Pilot Program Notice''). See also Securities Exchange Act Release
No. 52263 (August 15, 2005), 70 FR 49003 (August 22, 2005) (notice
of filing and immediate effectiveness of File No. SR-PCX-2005-95).
    \6\ Except when the Pilot Program is in effect.

------------------------------------------------------------------------
   Current equity option contract        Pilot program equity option
             limit \6\                          contract limit
------------------------------------------------------------------------
                         13,500                               25,000
                         22,500                               50,000
                         31,500                               75,000
                         60,000                              200,000
                         75,000                              250,000
------------------------------------------------------------------------
 Current QQQQ option contract limit  Pilot program QQQQ option contract
                                                               limit
------------------------------------------------------------------------
                        300,000                              900,000
------------------------------------------------------------------------

    The Exchange believes that extending the Pilot Program until
September 1, 2006 is warranted due to the positive feedback from OTP
Holders and for the reasons cited in the original rule filing that
proposed the Pilot Program.\7\ While previously the Pilot Program was
extended for a ``six-month period'' this proposal actually calls for an
extension of six months and four days. This slight change to the time
period, which makes no material change to the Pilot Program itself, is
being proposed in order to coordinate the expiration of the Pilot
Program with the end of the calendar month. The Exchange has not
encountered any problems or difficulties relating to the Pilot Program
since its inception. For these reasons, the Exchange requests that the
Commission extend the Pilot Program until September 1, 2006.
---------------------------------------------------------------------------

    \7\ See Pilot Program Notice, supra note 5.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder and, in particular,
the requirements of section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(5) of the Act \9\ that requires that the rules of an exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, to remove impediments to and perfect
the mechanism for a free and open market and a national market system,
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

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

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

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

    Written comments on the proposed rule change were neither solicited
nor received.

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

    Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to Section 19(b)(3)(A)
of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange provided the Commission
with written notice of its intent to file this proposed rule change at
least five business days prior to the date of filing the proposed rule
change. In addition, the Exchange has requested that the Commission
waive the 30-day pre-operative delay. The Commission believes that
waiving the 30-day pre-operative delay is consistent with the
protection of investors and in the public interest because it will
allow the Pilot Program to continue uninterrupted.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ Id.
    \14\ For the purposes only of waiving the pre-operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 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 Act.

IV. Solicitation of Comments

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

Electronic Comments

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

File No. SR-PCX-2006-08 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-PCX-2006-08. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the PCX. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File No. SR-PCX-2006-08 and should be
submitted on or before March 22, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).

Nancy M. Morris,
Secretary.
[FR Doc. E6-2845 Filed 2-28-06; 8:45 am]

BILLING CODE 8010-01-P