[Federal Register: August 4, 2006 (Volume 71, Number 150)]
[Notices]
[Page 44328-44336]
[DOCID:fr04au06-114]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54239; File No. 4-524]

Joint Industry Plan; Notice of Filing of the NMS Linkage Plan by
the American Stock Exchange LLC, Boston Stock Exchange, Inc., Chicago
Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., The
NASDAQ Stock Market LLC, National Stock Exchange, New York Stock
Exchange LLC, and NYSE Arca, Inc.

July 28, 2006.

I. Introduction

    On July 17, 2006, pursuant to Rule 608 of the Securities Exchange
Act of 1934 (``Act''),\1\ the American Stock Exchange LLC, (``Amex''),
the Boston Stock Exchange, Inc., the Chicago Board Options Exchange,
Incorporated., the Chicago Stock Exchange, Inc., The NASDAQ Stock
Market LLC, the National Stock Exchange, the New York Stock Exchange
LLC, (``NYSE''), and NYSE Arca, Inc. (``Participants'') filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'') an
executed copy of the NMS Linkage Plan (``Linkage Plan'' or ``Plan''), a
national market system plan to create and operate an intermarket
communications linkage pursuant to Section 11A(a)(3)(B) of the Act.\2\
The Linkage Plan, as stated in section 13 of the Plan, is to become
operative on October 1, 2006. The Linkage Plan was executed by the
eight self-regulatory organizations listed above. According to the Plan
Participants, the Philadelphia Stock Exchange, Inc. (``Phlx'') is in
general agreement with the policy and rules associated with the
proposed Linkage Plan and may become a Participant before the Plan's
operative date of October 1, 2006. Pursuant to Rule 608(b)(1),\3\ the
Commission is publishing this notice of, and soliciting comments on,
the Linkage Plan.
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    \1\ 17 CFR 242.608.
    \2\ This submission supersedes earlier submissions dated April
10, 2006 and June 12, 2006.
    \3\ 17 CFR 240.608(b)(1).
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II. NMS Linkage Plan

    In the following paragraphs, the Linkage Plan Participants respond
to the requirements of Rule 608 under the Act.

1. Purpose of Linkage Plan

    The purpose of the proposed Linkage Plan is to enable the Plan
Participants to act jointly in planning, developing, operating and
regulating the NMS Linkage System (``Linkage'' or ``System'') that will
electronically link the Participant Markets to one another, as
described in the Linkage Plan, so as to further the objectives of
Congress as set forth in Section 11A of the Act and to facilitate
compliance by the Participants and their respective members with Rules
610 and 611 under Regulation NMS.

2. Governing or Constitutional Documents

    The governing document is the Linkage Plan.

3. Implementation of Plan

    The proposed Linkage Plan will become effective on October 1,
2006.\4\
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    \4\ As the ITS Plan is still in effect, SROs may need exemptions
from certain provisions of the ITS Plan, in conjunction with the
implementation of the Linkage Plan. SROs should request, and the
Commission will consider, appropriate exemptions from the provisions
of the ITS Plan.
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4. Development and Implementation Phases

    As provided in section 13 of the proposed Plan, the Plan will
become effective on October 1, 2006.
    As provided in section 11 of the proposed Plan, the Plan will
terminate on June 30, 2007. Participants that wish to extend the term
may agree to do so, subject to Commission approval. During the term of
the Plan, a Participant may withdraw on 30 days' notice if it continues
to maintain connectivity to all other Participants and accepts orders
through the Linkage until June 30, 2007. A withdrawing Participant's
right to send orders through the Linkage would terminate on the date
the withdrawal is effective.

5. Analysis of Impact on Competition

    According to the Participants, the Plan imposes no burden on
competition. Rather, it enhances intermarket competition by providing a
means, in addition to any private linkages established among
Participants, by which orders entered in any Participant Market may
access interest displayed in other Participant Markets electronically
and in compliance with Rule 611. The Linkage Plan imposes no fees or
charges in connection with order executions. Further, the Plan provides
that any fee imposed by a Participant on its members in connection with
use of or access to the System must not discourage use of the System.

6. Written Understandings or Agreements Relating to Interpretation of,
or Participation in, Plan

    According to the Participants, other than the Plan itself, there
are no written understandings or agreements between or among Plan
Participants relating to interpretations of the Plan or conditions for
becoming a participant in the Plan.

7. Approval of Amendment by Sponsors in Accordance With Plan

    Not applicable.

8. Description of Operation of Facility Contemplated by the Proposed
Plan

    The System includes the data processing hardware, software and
communications network that electronically links the Participant
Markets to one another. The System accommodates only regular way
trading. All System trades must be compared, cleared and settled
through SEC-registered clearing corporations. The System is designed to
accommodate

trading in any Eligible Security, as defined in section VII of the
Consolidated Tape Association (``CTA'') Plan. Section VII of the CTA
Plan provides generally that Eligible Securities include equity
securities registered on the NYSE, the Amex or another national
securities exchange whose original listing requirements substantially
meet those of NYSE or Amex. Eligible Securities do not include
securities listed on the Nasdaq Stock Market.
    The Securities Industry Automation Corporation (``SIAC'') serves as
the System's facilities manager and has responsibility for the
operation and maintenance of the System. SIAC performs its function as
facilities manager in accordance with Plan provisions and subject to
the administrative oversight of the Supervisory Committee. (Section
5(d)).
    The System accepts immediate or cancel limit orders. Orders must be
sent to a Participant Market through the auspices of a member of that
Participant, known as a Sponsoring Member.\5\ Section 6(a)(ii) states
the minimum information that must be specified in an order, including
the member of the destination market (the Sponsoring Member); the
``give-up'' in the originating Participant Market; the security; the
side (buy or sell); the amount to be bought or sold (which must be for
one unit of trading (i.e., 100 shares) or any multiple thereof); and
the price. The price must be equal to the bid or offer then being
furnished by the destination Participant Market. An order must specify
a ``time in force'' of 5, 15 or 120 seconds, after which the order will
expire if unexecuted.
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    \5\ The Sponsoring Member will be responsible for paying
applicable transaction fees of the destination market. In the event
that the Participants are unable to implement Sponsoring Member
billing on October 1, 2006, the Participants have agreed to accept
direct exchange-to-exchange billing.
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    After February 5, 2007, all routed limit orders will be presumed by
the executing market to be intermarket sweep orders sent in accordance
with Rule 611(b) of Regulation NMS. (Section 6(a)(vi)). The trading
rules applicable in destination Participant Markets will apply to
orders received in the market and the execution of those orders in the
market. (Section 6(b)).

9. Terms and Conditions of Access

    Section 3(c) of the Plan provides that any national securities
exchange or national securities association may become a Plan
Participant by agreeing, in an amendment to the Plan adopted in
accordance with its provisions, to comply, and to enforce compliance,
with the Plan as provided in section 3(b) of the Plan. An applicant for
Plan participation is required to pay SIAC an amount estimated by SIAC
to cover development costs to be incurred to accommodate the new
Participant. In addition, before the SEC approves the applicant as a
Plan Participant, the applicant must pay SIAC actual development costs
in excess of estimated development costs, if any, or SIAC will
reimburse the applicant estimated development costs that were paid and
are in excess of actual development costs, if any. A new Participant
shares in development costs incurred after it becomes a Participant in
accordance with section 10(a)(iii)(A). (Section 10(a)(iii)(C)). As
noted in Item 8, above, orders sent through the System must be sent
through a Sponsoring Member in the executing market. There are no other
limitations or conditions to access to the System.

10. Method of Determination and Imposition, and Amount of, Fees and
Charges

    The Linkage Plan imposes no fees or charges in connection with
orders executed through the Linkage. A Sponsoring Member is subject to
applicable transaction charges imposed by the executing market.
    Section 10 (Financial Matters) provides for sharing by Participants
of ``development costs'' and ``production costs,'' as defined in
section 10(a). Development costs must be agreed to by all Participants.
Each Participant must pay a fraction equal to its share of the
``transactions base'' (as defined in section 10(a)(i)(I)) for the
calendar quarter preceding the calendar quarter during which the
Participants agree to incur such cost. The Plan provides that any
development costs incurred for the benefit of less than all
Participants will be shared by the Participants that benefit from the
costs as they mutually agree.
    Production costs are shared by Participants such that each
Participant, except the NYSE, pays 50% of the fraction of production
costs for a calendar quarter equal to its share of the ``routed orders
base'' defined in section 10(a)(i)(F), as computed for the quarter, but
subject to a cap (the ``Production Costs Sharing Cap'', defined in
section 10(a)(iv)(A)). The NYSE will pay the production costs in excess
of the costs that section 10(a)(iv)(A) requires other Participants to
pay.
    Each Participant is required to bear 100% of the costs to provide
the communication connection from the Participant's facilities to the
System's communications facilities maintained by SIAC. (Section
10(a)(v)).
    Each Participant is free to determine whether or not to impose, and
the amount of, a fee or charge on its members in connection with use of
its facilities to access the System. Any such fee or charge must not be
of such size, or so structured, as to discourage use of the System.
(Section 10(b)).\6\
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    \6\ Any fees charged by Participants must be filed with the
Commission pursuant to Section 19(b) of the Act.
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    In consideration of the NYSE's making available a designated NYSE
operating system to assume the functions of the System in the event of
a disaster, Participants other than NYSE have agreed to pay the NYSE
certain fees as set forth in section 12(d) of the Plan.

11. Method and Frequency of Processor Evaluation

    Not applicable.

12. Dispute Resolution

    The Linkage Plan does not include specific provisions regarding
resolution of disputes between or among Participants. Section 4(d) of
the Plan provides that no action or inaction by the Supervisory
Committee shall prejudice any Participant's right to present its views
to the SEC or any other person with respect to any matter relating to
the System or to seek to enforce its views in any other forum it deems
appropriate. In addition, section 6(b) provides that the destination
market's trading rules apply to orders received in the destination
market and executions of orders therein. Each Participant determines
the extent to which its trading rules apply to members in its market
insofar as such members' issuance of orders from such market and
resulting executions are concerned.

III. Solicitation of Comments

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

Electronic Comments

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

File Number 4-524 on the subject line.

Paper Comments

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

All submissions should refer to File Number 4-524. 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 Linkage Plan that are filed with the
Commission, and all written communications relating to the Linkage Plan
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. A copy of the Linkage Plan is attached to this
Release as Exhibit A. Copies of the Plan also will be available for
inspection and copying at http://www.itsplan.com. All comments received

will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number 4-524 and should be submitted on or before
August 25, 2006.
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    \7\ 17 CFR 200.30-3(a)(27).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.

Exhibit A--Plan for the Purpose of Creating and Operating an
Intermarket Communications Linkage Pursuant to Section 11a(A)(3)(B) of
the Securities Exchange Act of 1934

    Agreement made as of June 12, 2006, among American Stock Exchange
LLC, Boston Stock Exchange, Inc., Chicago Board Options Exchange, Inc.,
Chicago Stock Exchange, Inc., Nasdaq Stock Market LLC, National Stock
Exchange, New York Stock Exchange LLC, and NYSE Arca, Inc.
    Whereas, the undersigned national securities exchanges are parties
to the plan submitted to the Securities and Exchange Commission (the
``SEC'') for the purpose of creating and operating an intermarket
communications linkage pursuant to section 11A(a)(3)(B) of the
Securities Exchange Act of 1934 (the ``Act'').
    Now, therefore, in consideration of the premises and the mutual
covenants and agreements contained herein, the parties agree to submit
this Agreement called the NMS Linkage Plan to the SEC for approval
pursuant to section 11A(a)(3)(B) of the Act and Rule 608 thereunder.

Definitions

    (1) ``Application'' means any use of the System to facilitate
trades between Participant Markets that is described in the NMS Linkage
Plan.
    (2) ``CTA Plan'' means the plan filed with the SEC pursuant to SEC
Rule 17a-15 (subsequently amended and redesignated as Rule 11Aa3-1, and
subsequently amended and redesignated as Rule 601), approved by the SEC
and declared effective as of May 17, 1974, as from time to time
amended.
    (3) ``CTA Plan Processor'' means the organization serving as
recipient and processor of last sale prices under the CTA Plan.
    (4) ``Eligible Security'' has the meaning assigned to that term in
the CTA Plan.
    (5) ``NMS Linkage Plan'' or ``Linkage Plan'' means the plan amended
and restated in this instrument as from time to time amended in
accordance with the provisions hereof.
    (6) ``NMS Linkage System'' (``Linkage'' or ``Linkage System'')
means the system described in section 5.
    (7) ``Network A Eligible Security'' has the meaning assigned to
that term in the CTA Plan.
    (8) ``Network B Eligible Security'' has the meaning assigned to
that term in the CTA Plan.
    (9) ``Participant'' means a party to the Linkage Plan with respect
to which such plan has become effective pursuant to section 13.
    (10) ``Participant('s) Market'' means each Exchange Market.
    (11) ``System'' means the data processing hardware, software and
communications network that links electronically the Participant
Markets to one another. The System includes (a) computers that perform
such functions as message validation, processing, logging and switching
and (b) from a functional standpoint, (i) high speed communications
lines that link such computers with the Participant Markets (either
directly or through Participant Switches), and (ii) Linkage System
stations.
    (12) ``System security (stock)'' means a security (stock) selected
for trading through the Applications in accordance with section
5(b)(ii).
    (13) ``System trade'' means any trade made through any Application.

2. Purpose of Linkage Plan

    The purpose of the Linkage Plan is to enable the Participants to
act jointly in planning, developing, operating and regulating the
system as described in the Linkage Plan so as to further the objectives
of Congress as set forth in section 11A(a) of the Act and to facilitate
compliance by the Participants and their respective members with SEC
Rules 610 and 611.

3. Parties

    (a) List of Parties. The parties to the Linkage Plan are as
follows:

American Stock Exchange LLC (``AMEX''), registered as a national
securities exchange under the Act and having its principal place of
business at 86 Trinity Place, New York, New York 10006.
Boston Stock Exchange, Inc. (``BSE''), registered as a national
securities exchange under the Act and having its principal place of
business at as 100 Franklin Street, Boston, Massachusetts 02110.
Chicago Board Options Exchange, Inc. (``CBOE''), registered as a
national securities exchange under the Act and having its principal
place of business at 400 South LaSalle Street, Chicago, Illinois 60605.
Chicago Stock Exchange, Inc. (``CHX''), registered as a national
securities exchange under the Act and having its principal place of
business at One Financial Place, 440 South LaSalle Street, Chicago,
Illinois 60605.
Nasdaq Stock Market LLC (``Nasdaq''), registered as a national
securities exchange under the Act and having its principal place of
business at 1 Liberty Plaza, 165 Broadway, New York, NY 10006.
National Stock Exchange (``NSX''), registered as a national securities
exchange under the Act and having its principal place of business at
440 South LaSalle Street, Suite 2600, Chicago, Illinois 60605.
New York Stock Exchange LLC (``NYSE''), registered as a national
securities exchange under the Act and having its principal place of
business at 11 Wall Street, New York, New York 10005.
NYSE Arca , Inc. (``Arca''), registered as a national securities
exchange under the Act and having its principal place of business at
100 S. Wacker Drive, Chicago, IL 60606.

    (b) Compliance Undertaking. By subscribing to and submitting the

Linkage Plan for filing with the SEC, each undersigned party agrees to
comply to the best of its ability and, absent reasonable justification
or excuse, to enforce compliance by its members in their use of the
Linkage through its facilities with the provisions of the Linkage Plan.
    (c) New Participants. The Participants agree that any other
national securities exchange or national securities association may
subscribe to the Linkage Plan and become a Participant by agreeing, in
an amendment to the Linkage Plan adopted in accordance with its
provisions, to comply and to enforce compliance with the provisions of
the Linkage Plan as provided in section 3(b).

4. Administration of Linkage Plan

    (a) Supervisory Committee: Composition, Voting. Each Participant
shall select from its staff one individual to represent such
Participant as a member of the Supervisory Committee under the Linkage
Plan. Except as may be specifically otherwise provided herein, action
taken pursuant to the vote of a majority of the members of the
Supervisory Committee present at a meeting of the committee at which a
majority of the full committee is present shall be deemed to be the
action of the Supervisory Committee.
    (b) Supervisory Committee: Authority. The Supervisory Committee
shall not be a policy-making or a rule-making body, but shall, either
directly or by delegating its functions to individuals, subcommittees
established by it from time to time or others, (i) oversee development
of the System in accordance with the specifications therefore agreed
upon by each Participant, (ii) monitor the operation of the System and
(iii) advise the Participants with respect to any deficiencies,
problems or recommendations as the Supervisory Committee may deem
appropriate in its administration of the Linkage Plan. In this
connection, the Supervisory Committee shall have authority to develop
procedures and make administrative decisions necessary to facilitate
the operation of the System in accordance with the provisions of the
Linkage Plan.
    (c) Amendments to Linkage Plan. Any proposed change in, addition
to, or deletion from the Linkage Plan may be effected only by means of
a written amendment to the Linkage Plan which sets forth the change,
addition or deletion, is executed on behalf of each Participant and is
approved by the SEC or otherwise becomes effective pursuant to section
11A of the Act and Rule 608(b).
    (d) Participant's Rights. No action or inaction by the Supervisory
Committee shall prejudice any Participant's right to present its views
to the SEC or any other person with respect to any matter relating to
the System or to seek to enforce its views in any other forum it deems
appropriate.

5. The System

    (a) System Monitoring.
    (i) Linkage Supervisory Stations. Each Participant will maintain a
Linkage supervisory station where supervisors appointed by such
Participant will be able to coordinate trade adjustments.
    (ii) Linkage Control Center. The System also includes the Linkage
control center (``LCC''), which monitors and controls communications
within the System, including the processing of error conditions. The
LCC staff is able to display and, when authorized by any Participant,
to modify the security and market records of that Participant's Market
as such records relate to the System. The LCC staff is also able to
indicate whether or not any Participant Market is open for System
trades. In addition, the LCC may be used as ``back-up'' for the Linkage
supervisory system-wide broadcasts. Finally, the LCC staff is able to
enter adjustments of any trade pursuant to the procedures specified in
section 6(a)(iv) and to perform data base control after trading hours.
    (b) General Operation.
    (i) Registered Clearing Corporations. The System accommodates only
regular way trading, and all System trades must be compared, cleared
and settled through clearing corporations registered with the SEC that
maintain facilities through which such transactions may be compared and
settled and that agree to supply each Participant with data reasonably
requested in order to permit such Participant to enforce compliance by
its members with its rules, the provisions of the Act, the rules and
regulations thereunder, and the Linkage Plan.
    (ii) Selection of System Securities. The System is designed to
accommodate trading in any Eligible Security. The particular securities
that may be traded through the System at any time (``System
securities'') shall be selected by the Supervisory Committee. The
Supervisory Committee may add or delete System securities as it deems
appropriate and may delay the commencement of trading in any Eligible
Security if capacity or other operational considerations shall require
such delay.
    (c) Administrative Messages. Administrative messages, as
distinguished from orders, responses thereto and trade adjustment
inputs (including names later information), may also be sent through
the System.
    There are two categories of administrative messages that can be
sent by Participant members: Single destination and security broadcast.
Another category of administrative message, a ``system-wide
broadcast'', may be sent through the System only from the Linkage
control center.
    (d) Facilities Manager. The Securities Industry Automation
Corporation (``SIAC'') serves as the System's facilities manager and
has responsibility for the operation and maintenance of the System.
SIAC performs its function as facilities manager in accordance with the
provisions of the Linkage Plan and subject to the administrative
oversight of the Supervisory Committee.

6. Linkage System

    (a) Technical Matters.
    (i) The System shall accept immediate or cancel (``IOC'') orders,
provided however, that, upon the request of a Participant or
Participants, and in accordance with Section 10(a)(iii)(A) relating to
New Development Costs Sharing, the System shall accommodate additional
order types to be utilized by such Participant or Participants. Orders
must be sent to a Participant market through the auspices of a member
of that Participant, known as a Sponsoring Member. Each market will
maintain within SIAC a database of default Sponsoring Members (not to
exceed 10) for after hours processing and billing for orders sent to a
market where the originating firm is not a member of the destination
market.
    (ii) Order Information. An order shall, at a minimum, specify the
following:
    (A) The member of the destination market (either clearing member or
Sponsoring Member); \8\
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    \8\ The member of the destination market will be identified by a
unique clearing number. If the clearing number provided by the
originating Participant Market does not identify a member of the
destination market, SIAC will identify the default Sponsoring Member
of the originating market at the destination market for the security
in question and that Sponsoring Member's identification information
will be included on the order to the destination market on all
reports sent to the destination market, including any report for
billing purposes. The member identified on the order will be
responsible for any fees in the destination market. SIAC will
provide to Participants a key to match the clearing number to the
member's name.
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    (B) Original Clearing member or Omnibus clearing account of the
originating Participant Market, commonly referred to as the Give-Up,

    (C) The receiving Participant Market,
    (D) The security that is the subject of the order,
    (E) Designation of the order as an order to buy or to sell,
    (F) The amount of the security to be bought or sold, which amount
shall be for one unit of trading or any multiple thereof,
    (G) A price equal to the offer or bid price then being furnished by
the destination Participant Market, which price shall represent the
price at or below which the security is to be bought or the price at or
above which the security is to be sold, respectively,
    (H) To facilitate application of the short sale rule in effect in
the destination Participant Market, a designation of the order as
``short'' or ``short exempt'' whenever it is a order to sell short, and
    (I) Time in force as 5, 15 or 120 seconds.\9\
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    \9\ A Participant Market may prevent the execution, through its
facilities, of an otherwise marketable System order, prior to the 5,
15 or 120 second time in force parameter assigned to that order, if
the time in force parameter would result in the issuance of an
expiration notice to the sending market before execution of such
order could be reported to SIAC. Any such procedure must be
effective pursuant to a filing with the SEC.
    No order with a time in force parameter of 5 or 15 seconds shall
be sent to AMEX, CBOE or CHX prior to the earlier of (i) the date on
which all automated trading centers intending to qualify their
quotations for trade-through protection under Rule 611 of Regulation
NMS must have achieved full operation of Regulation NMS-compliant
trading systems or (ii) the date on which AMEX, CBOE or CHX, as the
case may be, has notified the Supervisory Committee in writing that
it is capable of accepting and executing such orders. If an order
with either of these time in force parameters is sent to AMEX, CBOE
or CHX prior to such time, it will not be executed due to system
limitations.
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    (iii) Order Validation, Routing. At the time of transmission, each
order undergoes validation procedures. If the order passes the
validation procedures, the System assigns a unique order identifier
number (a ``OID'') to the order, time stamps it and logs it on a mass
storage device (the ``daily log''). The System also sends a
transmission acceptance message to the Participant Market that
originated the order. The order is then routed to the destination
Participant Market. If the order is accepted, in whole or in part, in
the destination Participant Market, the execution is reported back
through the System to the originating and receiving Participant
Markets.
    The System rejects the transmission of a response that fails the
validation check and sends an appropriate error message to the
Participant Market that originated the response. The validation of a
response causes the System to retrieve the related order from the daily
log and update it with appropriate response information. This log forms
the basis from which the after-hours reports described in section 7(a)
are produced. Validation also causes the System to send a transmission
acceptance message to the Participant Market that originated the
response. The System then sends the response to the Participant Market
that originated the order. When an order is only partially executed,
the unexecuted shares are not filled, and the System generates a
cancellation for the unexecuted quantity and appends the cancellation
to the execution report that it sends to the Participant Market that
originated the order.
    (iv) Trade Adjustments. In accordance with section 5(a)(ii),
supervisors monitoring the Participant Markets may request the LCC to
enter adjustments to trades (i.e., to price, share size, buy or sell
side, to cancel a trade or to insert a trade ``as-of'' a prior day).
The following sets forth the procedures to facilitate trade adjustments
and to authorize the LCC to make such adjustments. All requests among
Participants and to the LCC for trade adjustments shall be in the form
of administrative messages sent through the System. For the purposes of
this section 6(a)(vi), administrative messages sent or received among
Participant Markets, or sent to the LCC, shall be deemed to have been
issued by supervisors of Participant Markets authorized by such
Participant Markets to issue such administrative messages.
    (A) Adjustments on Trade Day. The LCC shall make an adjustment to a
trade entered into that same day based upon an administrative message
request made from a supervisor of the Participant Market that received
and executed the order (``executing market supervisor''). Such request
shall not be made to the LCC unless an executing market supervisor has
received from a supervisor in the Participant Market that issued the
order (``issuing market supervisor''), in the form of an administrative
message sent through the System, agreement as to the terms of, and
authorization to make, the adjustment. The administrative message
request to the LCC by the executing market supervisor shall specify the
terms of, and authorization to the LCC to make, the adjustment.
    In the event that, notwithstanding the provisions of the prior
paragraph, an executing market supervisor requests the LCC to make a
trade adjustment without having received an administrative message from
an issuing market supervisor, and the LCC has made such requested
adjustment, then the LCC shall, at the request and direction of an
issuing market supervisor, made prior to the settlement for such trade,
readjust such trade to its terms as they existed prior to such
adjustment.
    (B) Adjustments for Prior Trade Day. Except as provided in the
preceding paragraph, the LCC shall make an adjustment to a trade
entered into on a prior day only upon administrative message requests
made from both executing and issuing market supervisors, each message
specifying the same terms of, and authorization to the LCC to make, the
adjustment.
    (C) The provisions of paragraphs (A) and (B) of this section
6(a)(iv) shall not restrict the ability of any Participant Market to
unilaterally request the LCC to end adjustments to trades or to cancel
or adjust any System trade executed in its market pursuant to its rules
pertaining to clearly erroneous transactions or obvious errors, and
system malfunctions. The sending market may invoke any appellate or
review process provided by such rules on behalf of the Sponsoring
Member. In the event of any cancellation or adjustment, the executing
market shall notify the LCC and all affected Participants by
administrative message specifying the terms of the cancellation or
adjustment and authorizing the LCC to make the adjustments or cancel
the trades.
    (D) LCC Confirmation. The LCC shall, after making a trade
adjustment, send an administrative message to both the executing and
sending market supervisors confirming that the adjustment has been made
and specifying the terms of the adjustment.
    (v) Intermarket Sweep Orders. All routed limit orders shall be
presumed by the executing market to be orders sent pursuant to the
intermarket sweep order exception in SEC Rule 611(b).
    (vi) Other. Each Participant shall also determine how orders
received in the market for which it has responsibility are to be
handled therein and agrees that any procedures it may adopt in this
regard shall be consistent with the provisions of the Linkage Plan and
the efficient operation of the System. Participants are required to
execute orders at a minimum at the size of their displayed quotes. Each
Participant shall insure that no communication shall be entered into
the System from its market except (A) on behalf of a member of such
Participant who is permitted by the Linkage Plan and such Participant's
rules to use the System with respect to the security or securities that
are the subject of the communication or (B) by employees of such
Participant in

performance of such Participant's obligations under the Linkage Plan.
    (b) Participant Trading Rules. The trading rules applicable in
destination Participant Markets shall apply to orders received in such
market and executions of orders therein. Each Participant shall
determine the extent to which its trading rules shall apply to members
within its market insofar as such members' issuance of orders from such
market and resulting executions are concerned.

7. Comparison and Settlement

    Comparison of a side of a System trade furnished by a Participant
shall be the responsibility of such Participant.
    (a) After Hours Functions. The functions of the System after the
close of trading in all Participant Markets shall consist of the
following:
    (i) The System's daily log of messages will be put on tape for
retention;
    (ii) The System will generate four reports:
    (A) An order/response report that will match orders to trade with
the appropriate responses,
    (B) An order/cancellation report that will list all orders to trade
that were canceled,
    (C) A trade adjustment report that will list all adjustments made
to previously executed System trades, and
    (D) A traffic summary report that will indicate the number of
orders to trade, the number of responses and the number of
administrative messages entered from each Participant Market during the
trading day; and
    (iii) The System will generate the clearing tape referred to in
section 7(b).
    (b) Clearing Tape. At the end of each trading day, the System
generates a clearing tape as part of after-hours processing. This tape
is in OID sequence, includes all of the day's System trades, and shows:
    (i) The OID,
    (ii) The originating Participant and clearing member(s), or the
clearing corporation(s) through which such clearing member(s) shall
settle the trade,
    (iii) The destination Participant and destination clearing
member(s), or the clearing corporation(s) through which such clearing
member(s) shall settle the trade,
    (iv) The type of trade action (buy or sell),
    (v) The security symbol,
    (vi) The executed quantity and price, and
    (vii) The date and time of trade.
    Adjustments to any System trade made by agreement between both
sides of the trade are included in the tape and shown as a separate
``trade adjustment record''. If a trade has been adjusted, the original
trade record is followed by trade adjustment record(s). The trade
adjustment record(s) carry the same OID as the original trade record.
There are two types of trade adjustments, System trade cancellations
and System trade changes. For System trade cancellations, the
adjustment record negates the original trade record. For example, a
cancellation of a trade to buy is reflected on the adjustment record as
a ``negative buy''. For System trade changes, there are two adjustment
records. The first adjustment record negates the original trade record.
The second adjustment record logs the trade data as adjusted for, e.g.,
a change in action, security, quantity and/or price. The adjustment
records are generated from the trade adjustment file that is created
during trading hours and from inputs from the Linkage control center
pursuant to requests from the Participants' supervisors.
    (c) Comparison of System Trades. The contra side of each System
trade ultimately is the clearing interface account used to identify the
clearing corporation through which the comparison of such side is
completed. If both sides of a System trade are to settle through the
same clearing corporation, the clearing corporation may, at its option,
either book each side against the clearing member responsible for that
side or offset each side against an internal omnibus account (in which
case the omnibus account will net to zero).
    While sorting and format changes may be required, the various
clearing corporations are able to use the System clearing tape as the
basic input to their trade comparison operations. The clearing
member(s) responsible for an Exchange-supplied side of a System trade
shall follow routine comparison procedures. In instances where an
uncompared transaction cannot be resolved through routine procedures,
the Exchange-supplied side(s) of the trade discrepancy will be handled
in accordance with the rules of the Participant(s) and clearing
corporation(s) involved.
    Once comparison has been completed, clearance and settlement can
proceed in a routine manner. System trades are processed with all other
transactions through established clearing interfaces.
    (d) Participant Settlement Obligations. The rules of each
Participant shall be designed to assure that if a System trade reported
on the clearing tape (as adjusted) at the close of any trading day, as
such trade relates to such Participant, cannot be compared
notwithstanding the use of routine comparison procedures, such
Participant shall on the scheduled settlement date honor such
uncompared trade; provided, however, that, if such a System trade as it
relates to such Participant is rejected or excluded from the settlement
operation conducted by the clearing corporation to which it was
reported for settlement either because of the insolvency of the
member(s) for whose account(s) it was to be settled or for any other
reason (other than failure to compare), such Participant shall not be
obligated to honor such trade and such trade shall be returned to such
member(s).
    In the event that a System trade as it relates to any Participant
is rejected or excluded from the settlement operation conducted by the
clearing corporation to which it was reported for settlement for any
reason other than failure to compare, neither the Participant from
whose market the side of the trade that is rejected or excluded was
supplied, the Participant from whose market the contra side of such
trade was supplied nor any clearing corporation to which either side of
the trade was submitted shall be obligated to honor the trade. Instead,
the member(s) constituting the contra side of the rejected or excluded
trade (the ``contra party'') shall, without unnecessary delay after
receipt of notice of such rejection or exclusion, close out such trade
in the best available market, except insofar as the rules of the
clearing corporation to which the contra side was submitted or of the
Participant from whose market the contra side was supplied are
applicable and provide an alternative method for closing. The rules of
each Participant shall state the foregoing closing obligations of the
contra party.

8. Pre-Opening Price Information

    The NYSE and AMEX will disseminate, through the System, pre-opening
price information whenever a member in that Participant market, in
arranging an opening transaction in his or her market in a System
security, anticipates that the opening transaction will be at a price
that represents a change from the ``previous day's consolidated closing
price'' of more than the ``applicable price change.''
    The ``previous day's consolidated closing price'' is the last price
at which a transaction in the security was reported by the CTA Plan
Processor on the last previous day on which transactions in the
security were

reported by the CTA Plan Processor. The ``applicable price changes''
are:
---------------------------------------------------------------------------

    \10\ If the previous day's consolidated closing price of a
Network A Eligible Security exceeded $100 and the security does not
underlie an individual stock option contract listed and currently
trading on a national securities exchange, the ``applicable price
change'' is one dollar.
    \11\ If the previous day's consolidated closing price of a
Network B Eligible Security exceeded $75 and the security is not a
Portfolio Depositary Receipt, Index Fund Share, or Trust Issued
Receipt, or does not underlie an individual stock option contract
listed and currently trading on a national securities exchange, the
``applicable price change'' is one dollar.

------------------------------------------------------------------------
                                                            Applicable
                                    Consolidated closing   price change
             Security                      price             ($) (more
                                                               than)
------------------------------------------------------------------------
Network A........................  Under $15............            0.10
                                   $15 or over..........       \10\ 0.25
Network B........................  Under $5.............            0.10
                                   $5 or over...........       \11\ 0.25
------------------------------------------------------------------------

    Prior to the opening of trading in a System security for which the
NYSE or AMEX has disseminated pre-opening price information, orders in
that security shall be sent to that Participant through the
Participant's order delivery system and not the NMS Linkage.

9. Operating Hours

    Regular trading hours are from 9:30 a.m. to 4 p.m. eastern time.
The normal operating hours of the System are 9 a.m. to 6:30 p.m.
eastern time or such other period as the Supervisory Committee, by
affirmative vote of all its members, may specify. Any period outside
the normal operating hours of the System is herein referred to as an
``additional period''. The System shall be operable during any
additional period requested in writing by any two or more Participants;
provided that such Participants have agreed to pay all costs and
expenses attributable to the operation of the System during such
additional period as agreed to by those Participants.

10. Financial Matters

    (a) Costs. The Participants shall share the ``development costs''
and ``production costs'', in accordance with the provisions of this
section 10(a).
    (i) Costs Definitions.
    (A) ``Computer software'' includes all programs or routines
developed by or at the direction of the System's facilities manager
(including such development in connection with the Intermarket Trading
System) to cause computers to perform tasks required for any one or
more Applications and the documentation required to describe and
maintain those programs. Computer programs of all classes, for example,
operating systems, execution systems, monitors, compilers and
translators, assembly routines, and utility programs are included.
    (B) ``Development costs'' mean all costs incurred by the System's
facilities manager in developing and improving the computer software
and installing hardware as necessary to facilitate System functionality
(including any testing conducted in connection with the System).
    (C) ``Installing hardware as necessary'' includes, but is not
limited to, installation and maintenance of all installations and
computer facilities required to support the System.
    (D) ``New Participant'' means any national securities exchange or
national securities association that becomes a Participant in
accordance with section 3(c) after SEC approval of this Linkage Plan.
    (E) ``Production costs'' mean all operating expenses associated
with the operation of the System, including all costs and expenses
(including appropriate overhead costs and all applicable taxes however
designated, exclusive of net income taxes) of the System's facilities
manager associated with, relating to, or resulting from its operation
or maintenance of the System, but excluding any cost or expense
associated with any Participant's self-regulatory function. Production
costs also include the costs and expenses of the facilities manager:
(i) In maintaining ``hot lines'' that permit conversations among
broker-dealers and staff in different Participant Markets and with the
Systems control center; and (ii) associated with reports rendered by a
firm of independent accountants pursuant to paragraph (a)(vi) of this
section 10.
    (F) ``Routed orders base'' for any calendar quarter means the total
number of orders sent through the System.
    (G) ``Share of the routed orders base'' of any Participant as
computed for any calendar quarter means a fraction, the numerator of
which is the total number of orders sent through the System by that
Participant during the calendar quarter and the denominator of which is
the routed orders base for the calendar quarter.
    (H) ``Share of the transactions base'' for a calendar quarter
means:
    (1) For any Participant other than AMEX or NYSE, a fraction, the
numerator of which is the total number of transactions in Network A
Eligible Securities that the Participant reports to the CTA Plan
Processor during that quarter and the denominator of which is the
quarter's transactions base;
    (2) For AMEX, a fraction, the numerator of which is the number of
transactions in ``Top Ten Network B Eligible Securities'' (as clause
(2) of section 10(a)(i)(I) defines that term) that AMEX reports to the
CTA Plan Processor during that quarter and the denominator of which is
the quarter's transactions base; and
    (3) For NYSE, the fraction derived by subtracting from 1 (one) the
sum of all other Participants' shares of the transaction base for the
quarter.
    (I) ``Transactions base'' for any calendar quarter means the sum of
(1) the number of transaction reports in Network A Eligible Securities
that the CTA Plan Processor disseminates during the quarter and (2) the
number of transaction reports in the ``Top Ten Network B Eligible
Securities'' that the CTA Plan Processor disseminates during the
quarter. A quarter's ``Top Ten Network B Eligible Securities'' refers
to the ten Network B Eligible securities for which the CTA Plan
Processor disseminates the greatest number of transaction reports
during that quarter.
    (ii) Dispute Costs Excluded. The development costs and production
costs shall not include any cost or expense incurred by any Participant
as a result of or in connection with the defense of any claim, suit or
proceeding against the Supervisory Committee or any one or more of the
Participants relating to the Linkage Plan or the operation of the
System. All such costs and expenses incurred by any Participant shall
be borne by such Participant without contribution or reimbursement.
    (iii) Development Costs.
    (A) New Development Costs Sharing. Development costs shall not be
incurred except as agreed to by all Participants. Each Participant
shall pay a fraction equal to its share of the transactions base for
the calendar quarter preceding the calendar quarter during which the
Participants agree to incur such cost. Any development costs that are
incurred for the benefit of less than all Participants shall be shared
by the Participant or Participants that benefit therefrom as they shall
mutually agree.
    (B) Development Costs Payment. Development costs will be computed
by the System's facilities manager as soon as practicable following the
close of the calendar month or, if relatively small, the calendar
quarter during which they were incurred. Each Participant's share shall
be billed to, and payable by, such Participant promptly thereafter.
    (C) New Participant's Share of Development Costs. At the time any
national securities exchange or national securities association applies
to become a new Participant, such applicant shall

be charged by, and shall pay to, the System's facilities manager an
amount estimated by the System's facilities manager to cover
development costs to be incurred to accommodate such applicant's status
as a Participant. Prior to the effective date of the SEC's approval of
such Participant status, the applicant shall pay to the System's
facility manager actual development costs in excess of estimated
development costs, if any, or the System's facility manager shall
reimburse to the applicant estimated development costs that were paid
and that are in excess of actual development costs. Each new
Participant shall share in development costs incurred after it becomes
a Participant in accordance with section 10(a)(iii)(A).
    (D) Title to Software. The entire right, title and interest in and
to all ``computer software'' (as defined in section 10(a)(i)(A))
developed prior to July 1, 1978 shall be vested in the Participants who
share the cost of such computer software as joint owners. The entire
right, title and interest in and to all computer software developed
after June 30, 1978 shall be vested in the Participant who pays the
cost thereof. If more than one Participant shares in the cost of
computer software developed after June 30, 1978, then the entire right,
title and interest in and to such computer software, the cost of which
is so shared, shall be vested in the Participants who share such cost
as joint owners. The System's facilities manager shall use computer
software solely for the purpose of performing tasks required for the
Applications as provided in the Linkage Plan.
    (iv) Production Costs.
    (A) Production Costs Sharing. The production costs attributable to
any calendar quarter shall be shared by the markets that were
Participants during any portion of the calendar quarter. Each such
Participant, except the NYSE, shall pay 50% of the fraction of such
production costs equal to its share of the routed orders base as
computed for the calendar quarter. Notwithstanding the foregoing, the
aggregate dollar amount of all of a Participant's quarterly payments
shall not exceed its ``Production Costs Sharing Cap.'' A Participant's
``Production Costs Sharing Cap'' means total production costs for
calendar year 2005 multiplied by 50 percent of the Participant's
percentage of the routed order base for the period commencing January
1, 2005, and ending July 31, 2005. The NYSE shall pay those production
costs that this Paragraph does not require the other Participants to
pay.
    (B) Production Costs Payment. Production costs will be computed by
the System's facilities manager as soon as practicable following the
close of each calendar month. Each Participant's (or former
Participant's) estimated share thereof shall be billed by the System's
facilities manager and shall be payable to the System's facilities
manager promptly following receipt. Any appropriate adjustment will be
made between the System's facilities manager and each Participant
promptly following the close of each calendar quarter.
    (v) Communications Connection Costs. Each Participant shall bear
100% of the costs to provide communication connection from a
Participant's facilities to the System's communications facilities
maintained by the facilities manager.
    (vi) Accounts. The System's facilities manager and the independent
public accountants hereinafter referred to shall furnish any
information and/or documentation reasonably requested in writing by a
majority of the Participants in support of or relating to any of the
computations referred to in this section 10(a). All expenses,
allocations and computations referred to or required by this section
10(a) shall be reported at least annually to the Participants. For even
numbered years, (or such other yearly interval as the Supervisory
Committee, by affirmative vote of all its members, may specify), such
reports shall be rendered by a firm of independent public accountants
(which may be the firm regularly employed by the NYSE or the System's
facilities manager), and such accountants shall render their opinion
that such expenses, allocations and computations have been reported in
accordance with the understanding among the Participants as set forth
in this section 10(a). For those years when a firm of independent
public accountants is not engaged to render a report, the facilities
manager's internal auditor shall review all expenses, allocations and
computations referred to or required by this section 10(a) and that
internal auditor shall report that such expenses, allocations and
computations have been reported in accordance with the understanding
among the Participants as set forth in this section 10(a).
    (b) User Charges. Each Participant shall be free to determine
whether or not to impose a fee or charge on some or all of its members
in connection with use of its facilities to access the System and, if
so, the amount of such fee or charge. Any fee or charge that may be
imposed by any Participant shall not be of such size, and shall not be
so structured, as to discourage use of the System.
    (c) Facilities Manager Liability Limits. The System's facilities
manager shall not be liable to any Participant or to any member of any
Participant using or having access to the System or to any other person
for any loss or damage resulting from any non-performance, or
interruption in the operation of the System, from any inaccuracies,
errors or omissions in any of the information conveyed or received
through the System, or from any delays or errors in the transmission of
any such information, or for making trade adjustments.

11. Termination; Withdrawal

    The Linkage Plan will terminate on June 30, 2007. Participants that
wish to extend the term may agree to do so, subject to filing with and
approval by the SEC. During the term of the Plan a Participant may
withdraw with 30 days notice if it continues to maintain connectivity
to all other Participants and accept orders through the Linkage until
June 30, 2007. A withdrawing Participant's right to send orders through
the Linkage shall terminate on the date the withdrawal is effective. In
addition, a withdrawing Participant's obligation to share development
and production costs shall terminate on the date the withdrawal is
effective, provided, however, that such Participant shall remain liable
for, and shall pay upon demand, its portion of the costs of developing
and operating the System and any other amounts payable by it as
determined pursuant to sections 10 and 12 of the Linkage Plan.

12. System Inoperability

    (a) General. In the event of a disaster that renders the System
inoperable, the NYSE has authorized the facilities manager to utilize a
designated NYSE operating system (the ``NYSE System'') on a preemptive
and priority basis to function as detailed in section (c)(i), below.
    (b) Participants' Implementation Obligations.
    (i) At any time the NYSE System assumes the functions of the
System, all Plan provisions not inconsistent with this section 12, and
Participant rules and policies governing use of the System will
continue to apply.
    (ii) Each Participant's cost of maintaining communications
connectivity to the NYSE System shall be borne by that Participant.
    (c) NYSE Implementation Obligations. In consideration of the fees
to be paid to the NYSE as specified in paragraph (d) of this section
12, the NYSE agrees:

    (i) To have and to make available the NYSE System to assume the
functions of the System on a preemptive and priority basis in the event
of a disaster which renders the System inoperable. Such system is
composed of computers and peripheral equipment sufficient to operate
the System at a minimum of 50% of the System's rated 150 messages per
second capacity and 75% of the System's disk capacity.
    (ii) That the facilities manager is authorized to take the actions
necessary to make the NYSE System available to assume the functions of
the System within two hours in the event of a limited disaster and on
the next day in the event of a full site disaster. The facilities
manager is authorized to make the determinations that, in its good
faith judgment, there has been a limited disaster or full site
disaster, the System is inoperable, and the NYSE System will assume the
functions of the System.
    (iii) That the NYSE System will be located at a site remote from
the site where the System is located.
    (d) Implementation Obligations of Participants Other than NYSE
(``Other Participants'').
    (i) Fees. In consideration of the NYSE's making available the NYSE
System to assume the functions of the System in the event of a
disaster, the Other Participants agree to pay to the NYSE: (A) A
preemptive and priority reserve fee totaling $24,800 per calendar
quarter (such reserve fee shall be adjusted each January by the same
percentage change as in the Consumer Price Index as calculated by the
U.S. Department of Commerce for the preceding calendar year); and (B) a
per diem fee, if in the event of a disaster the NYSE System assumes the
functions of the System, for each day in excess of five consecutive
trading days that the NYSE System is so utilized. Such per diem fee
shall equal \1/250\ of the yearly dollar amount the facilities manager
charges the NYSE to operate the NYSE System.
    This subsection (d)(i) shall become effective on the date that the
facilities manager confirms in writing to the Supervisory Committee
that it has taken all actions necessary to make the NYSE System
available to assume the functions of the System as specified in
subsection (c) of this section 12. If such effective date is other than
the first day of the calendar quarter, then the preemptive and priority
reserve fee for such calendar quarter shall be calculated pro rata
based upon the number of days in such calendar quarter that the NYSE
System is so available.
    (ii) Fee Sharing. Each of the Other Participants agrees to pay a
share of the preemptive and priority reserve and per diem fees based
upon a proportional share of its production costs excluding the NYSE's
share.
    (iii) Fee Payment. Fee payment will be computed by the System's
facilities manager as soon as practicable following the close of each
calendar month. Each Other Participant's (or former Participant's)
estimated share thereof shall be billed by the System's facilities
manager and shall be payable to the System's facilities manager
promptly following receipt. Any appropriate adjustment will be made
between the System's facilities manager and each Other Participant
promptly following the close of each calendar quarter. The facilities
manager shall forward such payments to the NYSE as the NYSE may from
time to time instruct the facilities manager.
    (e) Liability Limits. Neither the NYSE nor the facilities manager
shall be liable to any Participant, to any member of any Participant
using or having access to the NYSE system, or to any other person for
any loss or damage resulting from any non-performance or interruption
in the operation of the NYSE System, from any inaccuracies, errors or
omissions in any of the information conveyed or received through the
NYSE System, or from any delays, omissions, or errors in the
transmissions, or errors in the transmission of any such information.
    (f) Termination.
    (i) In the event that the NYSE determines to withdraw the NYSE
System from use by the Linkage, it shall so notify the Supervisory
Committee, in writing, a minimum of six months prior to such
withdrawal.
    (ii) In the event of such withdrawal, this section 12 shall be
terminated and the Participants must then determine whether they should
provide for alternative procedures in the event of System
inoperability.

13. Effective Date

    The Linkage Plan shall become operative on October 1, 2006.

14. Counterparts

    The Linkage Plan may be executed in any number of counterparts, no
one of which need contain all signatures of all Participants, and as
many of such counterparts as shall together contain all such signatures
shall constitute one and the same instrument.

 By--------------------------------------------------------------------
American Stock Exchange LLC

 By--------------------------------------------------------------------
Boston Stock Exchange, Inc.

 By--------------------------------------------------------------------
Chicago Board Options Exchange, Inc.

 By--------------------------------------------------------------------
Chicago Stock Exchange, Inc.

 By--------------------------------------------------------------------
NASDAQ Stock Market LLC

 By--------------------------------------------------------------------
National Stock Exchange

 By--------------------------------------------------------------------
New York Stock Exchange LLC

 By--------------------------------------------------------------------
NYSE Arca, Inc.

 By--------------------------------------------------------------------
Philadelphia Stock Exchange, Inc.

 [FR Doc. E6-12638 Filed 8-3-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)]
[Notices]
[Page 17175]
[FR Doc No: 2018-08136]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[FRL-9976-93-OW]

Re-Establishment of the Environmental Financial Advisory Board

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: In accordance with the Federal Advisory Committee Act, notice
is hereby given that the U.S. Environmental Protection Agency (EPA)
intends to re-establish the Environmental Financial Advisory Board
(EFAB) for a two-year period due to an administrative delay in filing
the committee's renewal charter. EPA has determined that the EFAB is
necessary and in the public interest in connection with the performance
of duties imposed on the agency by law. The purpose of EFAB is to
provide advice and recommendations to the EPA Administrator on issues
associated with environmental financing.

FOR FURTHER INFORMATION CONTACT: Inquiries may be directed to Leo
Gueriguian, Associate Director, Water Infrastructure Division, U.S.
EPA, William Jefferson Clinton Federal Building, 1200 Pennsylvania Ave.
NW, Washington, DC 20460 (Mail Code: 4201T), Telephone<PHONE_NUMBER>,
or [email protected].

    Dated: April 10, 2018.
Andrew D. Sawyers,
Director, Office of Wastewater Management, Office of Water.
[FR Doc. 2018-08136 Filed 4-17-18; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 56 (Thursday, March 22, 2012)]
[Rules and Regulations]
[Pages 16664-16668]
[FR Doc No: 2012-6886]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 67

[Docket No. FAA-2012-0056; Amdt. No. 67-21]
RIN 2120-AK00

Removal of the Requirement for Individuals Granted the Special
Issuance of a Medical Certificate To Carry Their Letter of
Authorization While Exercising Pilot Privileges

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Direct final rule; request for comments.

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

SUMMARY: This rule removes a regulatory provision under Federal
Aviation Administration (FAA) medical certification standards intended,
in part, to require that individuals granted the Special Issuance of a
Medical Certificate (Authorization) have their letter of Authorization
in their physical possession or readily accessible on the aircraft
while exercising pilot privileges. The FAA imposed this regulatory
provision in 2008 to respond to a 2007 International Civil Aviation
Organization (ICAO) adverse audit finding regarding endorsement of FAA
certificates. The FAA is not aware of any individuals affected by the
standard who have had to produce their letter of Authorization for any
civil aviation authorities during the 3-year period the rule has been
in effect. For this reason, and because affected individuals find the
standard burdensome given that other longstanding FAA operational
requirements already mandate that pilots carry their medical
certificate when exercising pilot privileges, the FAA has identified
this regulation as one that can be removed under Executive Order 13563
of January 18, 2011: ``Improving Regulation and Regulatory Review.''
While this action removes the burden for affected individuals to carry
their medical letter of Authorization, long-standing requirements under
FAA operational standards requiring individuals to carry FAA
certificates while exercising pilot privileges remain unchanged.

DATES: Effective July 20, 2012.
    Submit comments on or before May 21, 2012. If adverse comment is
received, the FAA will publish a timely withdrawal in the Federal
Register.

ADDRESSES: You may send comments identified by docket number FAA-2012-
0056 using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change,

to http://www.regulations.gov, including any personal information the
commenter provides. Using the search function of the docket web site,
anyone can find and read the electronic form of all comments received
into any FAA docket, including the name of the individual sending the
comment (or signing the comment for an association, business, labor
union, etc.). DOT's complete Privacy Act Statement can be found in the
Federal Register published on April 11, 2000 (65 FR 19477-19478), as
well as at http://DocketsInfo.dot.gov.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this action, contact Ms. Judi Citrenbaum, Office of Aerospace Medicine,
Federal Aviation Administration, 800 Independence Avenue SW.,
Washington, DC 20591; telephone<PHONE_NUMBER>; email
<EMAIL_ADDRESS>    For legal questions concerning this action, contact Sabrina Jawed,
Office of the Chief Counsel, Regulations Division, Federal Aviation
Administration, 800 Independence Avenue SW., Washington, DC 20591;
telephone<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules on aviation safety is found in
Title 49 of the United States Code. 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.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart III, Chapter 447, Sections 44701, 44702
and 44703. Under Section 44701 the Administrator has the authority to
prescribe regulations and minimum standards for practices, methods and
procedures necessary for safety in air commerce and national security.
Under Section 44702 the Administrator has the authority to issue
certificates. More specifically, under Section 44703(b)(C) the
Administrator has the authority to decide terms necessary to ensure
safety in air commerce, including terms on the duration of certificates
and tests of physical fitness. This rule removes a regulatory provision
that requires individuals granted the Special Issuance of a Medical
Certificate to have their letter of Authorization in their physical
possession or readily accessible on the aircraft while exercising pilot
privileges. For this reason, the proposed change is within the scope of
the FAA's authority and is a reasonable and necessary exercise of the
FAA's statutory obligations.

The Direct Final Rule Procedure

    The FAA is adopting this action without prior notice and prior
public comment as a direct final rule. Individuals granted the Special
Issuance of a Medical Certificate are required to carry sufficient
documentation validating their medical fitness to fly, but should not
have the additional burden of carrying their letter of Authorization.
The FAA has identified this action as burden-relieving under Executive
Order 13563 of January 18, 2011, entitled ``Improving Regulation and
Regulatory Review,'' because affected individuals no longer will have
to carry their letter of Authorization with them when exercising pilot
privileges. The Regulatory Policies and Procedures of the Department of
Transportation (DOT) (44 FR 1134; February 26, 1979) provide that, to
the maximum extent possible, operating administrations for the DOT
should provide an opportunity for public comment on regulations issued
without prior notice. Accordingly, the FAA invites interested persons
to participate in this rulemaking by submitting written comments, data,
or views. The Agency also invites comments relating to the economic,
environmental, energy, or federalism impacts that might result from
adopting this final rule.
    Unless a written adverse or negative comment or a written notice of
intent to submit an adverse or negative comment is received within the
comment period, the regulation will become effective on the date
specified above. After the close of the comment period, the FAA will
publish a document in the Federal Register indicating that no adverse
or negative comments were received, and confirming the date on which
the final rule will become effective. If the FAA does receive an
adverse or negative comment within the comment period, or written
notice of intent to submit such a comment, a document withdrawing the
direct final rule will be published in the Federal Register, and a
notice of proposed rulemaking may be published with a new comment
period.
    See the ``Additional Information'' section for information on how
to comment on this direct final rule and how the FAA will handle
comments received. The ADDRESSES section contains related information
about the docket, privacy, and the handling of proprietary or
confidential business information. In addition, there is information on
obtaining copies of related rulemaking documents.

I. Overview of Final Rule

    As discussed in greater detail throughout this document, this final
rule relieves individuals vetted through the FAA special-issuance
medical certification process from having to carry their FAA-issued
letter of Authorization with them when exercising pilot privileges.
Individuals granted special-issuance medical certification are issued a
time-limited FAA medical certificate along with a letter of
Authorization. Collectively both documents comprise an individual's
Authorization. According to FAA records, the FAA issued 28,423
Authorizations in the 2011 fiscal year. Under Executive Order 13563 of
January 18, 2011, the FAA identified this action as burden-relieving
for affected individuals. This rule imposes no cost on affected pilots.
It imposes only a one-time, minor administrative cost to the FAA
associated with removing a reference on the FAA medical certificate
(FAA Form 8500-9) to the current standard. This rule removes only the
requirement to carry the letter of Authorization. It does not remove or
modify longstanding operational requirements under Title 14 of the Code
of Federal Regulations, Part 61, Sec.  61.3, regarding documentation
that must be in an individual's personal possession or readily
accessible in the aircraft when exercising pilot privileges.

II. Background

    In November 2007, ICAO, the aviation wing of the United Nations,
audited the civil aviation safety oversight system of the United States
as part of the ICAO Universal Safety Oversight Audit Program (USOAP).
ICAO USOAP teams assess whether signatory states, such as the United
States, meet international civil aviation standards. Civil aviation
licensing and credentialing system compliance with international
standards is a main focus area of these audits. As a result of the 2007
audit, the United States received a finding specifying that certain
U.S. licenses are not ``systematically endorsed as stipulated by
Article 39 \1\ of the Chicago

Convention, when the holders do not satisfy in full the conditions laid
down in the international standard with respect to the class of licence
(sic) or certificate of holders.''
---------------------------------------------------------------------------

    \1\ Article 39 of the Chicago Convention of 1944 stipulates the
following: ``Any person holding a license who does not satisfy in
full the conditions laid down in the international standard relating
to the class of license or certificate which he holds shall have
endorsed on or attached to his licence (sic) a complete enumeration
of the particulars in which he does not satisfy such conditions.''
---------------------------------------------------------------------------

    U.S. pilots who fly internationally must comply with international
aviation standards. In cases where ICAO standards may exceed U.S.
standards, U.S. pilots take measures to make sure they conform with
ICAO standards for international operations. For example, U.S. pilots
serving as second-in-command on a U.S.-registered aircraft must hold an
FAA commercial pilot certificate and an FAA second-class medical
certificate. ICAO standards require commercial pilots to meet ICAO
Class 1 medical assessment standards, which include electrocardiography
provisions. While ICAO Class 1 medical assessment standards and FAA
first-class medical standards include electrocardiography provisions,
FAA second-class medical standards do not. When exercising privileges
internationally, therefore, U.S. second-in-command pilots would obtain
an FAA first-class medical certificate to compensate for the
electrocardiography difference. As specified in this example, U.S.
pilots exercising privileges internationally take measures necessary to
conform to ICAO standards; therefore, the FAA has not found cause to
``systematically'' endorse medical certificates of U.S. pilots.
Explanations provided at the time of the audit in this regard, however,
were not sufficient to avoid ICAO's finding for corrective action.
    Because Article 39 of the Chicago Convention provides that
endorsements may be placed on ``or attached to'' a license, the focus
of the corrective action plan was limited to a small population of
pilots who, due to special medical considerations, are granted a time-
limited, special-issuance medical certificate along with a letter of
Authorization. These individuals, the FAA determined, are most likely
to be most impacted by the ICAO finding. The letter of Authorization
serves as an addendum to the special-issuance medical certificate for
affected individuals, and provides information regarding conditions
affected individuals must meet in order to exercise pilot privileges.
The FAA determined that a corrective action requiring, in part, that
individuals carry their Authorization when exercising pilot privileges
would be more acceptable than developing and implementing burdensome
new licensing procedures for all pilots.
    Therefore, on July 24, 2008, the FAA issued a final rule (73 FR
43059) that amended Sec.  67.401 to add new paragraph (j) requiring
individuals holding an Authorization to carry it with them when
exercising pilot privileges. In addition to this regulatory
requirement, the FAA also revised the FAA medical certificate (FAA Form
8500-9) not only to note this requirement for affected medical
certificate holders, but also to add more elaborate regulatory
references and instructions for all pilots, including instructions to
consult the U.S. Aeronautical Information Publication, which contains a
listing of U.S. differences with ICAO Standards and Recommended
Practices, when flying internationally. By adding several important
regulatory references and instructions on the medical certificate, as
suggested during the ICAO audit, the FAA met the intent of the ICAO
audit finding. The regulatory references and instructions added to the
medical certificate will remain as enumerated on FAA medical
certificates, only the ``Note'' making reference to the letter of
Authorization will be removed by this action.

III. Discussion of the Direct Final Rule

    Before an Authorization is granted, applicants must be thoroughly
vetted through a lengthy and rigorous FAA medical certification
process. As specified under Sec.  67.401, individuals with specifically
disqualifying medical conditions are medically certificated only when
they can demonstrate to the satisfaction of the Federal Air Surgeon
that the duties authorized by the class of medical certificate applied
for can be performed without endangering public safety for the period
of time the certificate is held. To demonstrate ability, a special
medical flight test, practical test, extensive medical evaluation, or
any combination of these may be required. An individual's operational
experience and any medical facts that may affect the ability of the
individual to perform airman duties is taken into consideration before
medical certification is granted.
    With such a viable and rigorous special-issuance medical
certification process, the FAA did not anticipate an ICAO audit finding
that would result in further regulatory requirements. As such, adding
Sec.  67.401 (j) to require affected individuals to carry their letter
of Authorization was not an expected outcome of the ICAO audit, but was
put forth as a negotiated compromise in the audit corrective action
plan. The Sec.  67.401 (j) requirement has not been well-received by
affected U.S. pilots. The FAA continues to receive complaints from
affected U.S. pilots that the full force of the requirement is overly
burdensome as well as invasive. It was imposed, however, out of concern
that traditional enumeration placed on U.S. medical certificates under
the FAA's special-issuance medical certification process might not be
detailed enough for affected U.S. pilots during a ramp check in a
foreign country, for example. Having the letter of Authorization
readily available was deemed to be in the affected pilots' best
interest. With 3 years of experience under the rule, however, the FAA
is not aware that any civil aviation authority has requested any
affected U.S. pilot to produce a letter of Authorization.
    In August 2010, the FAA informed ICAO that the U.S. would prefer to
remove this requirement, and received no objection to this request. In
addition, in April 2011, the FAA conducted a briefing on this matter
for a member of the ICAO Air Navigation Commission, indicating that,
unless objections were raised, the United States would proceed to
revise the regulation to make it less burdensome. The series of new
regulatory references and instructions added to all U.S. medical
certificates provides sufficient information to medical certificate
holders regarding the need for compliance with international standards
when exercising pilot privileges.
    This action, therefore, removes paragraph (j) of Sec.  67.401 and
deletes the ``Note'' on FAA medical certificates under the header
``Conditions of Issue,'' which directs affected individuals to carry
their letter of Authorization. This action does not affect longstanding
FAA operational requirements under Sec.  61.3 regarding FAA
certificates that must be carried while exercising pilot privileges,
including FAA medical certificates.
    Paragraph (j) of Sec.  67.401 no longer will apply once this rule
becomes effective. This means that the ``Note'' under the regulatory
reference to Sec.  67.401 (j) listed under the ``Conditions of Issue''
on an individual's existing FAA medical certificate no longer will be
necessary. This does not mean that the FAA needs or intends to re-issue
medical certificates. It will be acceptable for the FAA medical
certificate to reference this ``Note'' until an individual's medical
certificate is renewed. The FAA will begin using medical certificates
with updated ``Conditions of Issue'' that do not include reference to
the removed

standard as soon as possible following the effective date of the rule.

IV. Regulatory Evaluation, Regulatory Flexibility Determination,
International Trade Impact Assessment, and Unfunded Mandates Assessment

    Changes to Federal regulations must undergo several economic
analyses. First, Executive Order 12866 and Executive Order 13563 direct
that each Federal agency shall propose or adopt a regulation only upon
a reasoned determination that the benefits of the intended regulation
justify its costs. Second, the Regulatory Flexibility Act of 1980 (Pub.
L. 96-354) requires agencies to analyze the economic impact of
regulatory changes on small entities. Third, the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104-4) requires agencies to prepare a
written assessment of the costs, benefits, and other effects of
proposed or final rules that include a Federal mandate likely to result
in the expenditure by State, local, or tribal governments, in the
aggregate, or by the private sector, of $100 million or more annually
(adjusted for inflation with base year of 1995). This portion of the
preamble summarizes the FAA's analysis of the economic impacts of this
proposed rule.
    Department of Transportation Order DOT 2100.5 prescribes policies
and procedures for simplification, analysis, and review of regulations.
If the expected cost impact is so minimal that a proposed or final rule
does not warrant a full evaluation, this order permits a statement to
that effect and the basis for it to be included in the preamble if a
full regulatory evaluation of the cost and benefits is not prepared.
Such a determination has been made for this direct final rule. The
reasoning for this determination follows:

A. Regulatory Evaluation

Benefit
    The benefit of this direct final rule will be that it relieves
approximately 28,000 airmen vetted through the FAA special-issuance
medical certification process from having to carry their FAA-issued
letter of Authorization with them when they fly.
Costs
    This rule removes a regulatory provision that requires airmen who
have been granted the Special Issuance of a Medical Certificate to have
their letter of Authorization in their physical possession or readily
accessible on the aircraft while exercising pilot privileges. The only
cost associated with this rule is FAA manpower cost associated with
making a revision to the FAA medical certificate (FAA Form 8500-9) to
remove a reference to the standard that is being removed.
    We estimate that it will take an FAA information technology program
manager approximately 8 hours to make the revision to the FAA medical
certificate. With a burdened labor rate of $115, the total cost is $923
($863 present value).
    The FAA has, therefore, determined that this final rule is not an
economically ``significant regulatory action'' as defined in section
3(f) of Executive Order 12866 and is not ``significant'' as defined in
DOT's Regulatory Policies and Procedures.

B. Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a
principle of regulatory issuance that agencies shall endeavor,
consistent with the objective of the rule and of applicable statutes,
to fit regulatory and informational requirements to the scale of the
business, organizations, and governmental jurisdictions subject to
regulation.'' To achieve that principle, the RFA requires agencies to
solicit and consider flexible regulatory proposals and to explain the
rationale for their actions. The RFA covers a wide-range of small
entities including small businesses, not-for-profit organizations, and
small governmental jurisdictions.
    Agencies must perform a review to determine whether a proposed or
final rule will have a significant economic impact on a substantial
number of small entities. If the agency determines that it will, the
agency must prepare a regulatory flexibility analysis as described in
the Act.
    This rule is burden-relieving; it imposes no cost on affected
pilots. Consequently, as the Acting FAA Administrator I certify that
the final rule will not have a significant economic impact on a
substantial number of small entities.

C. International Trade Impact Analysis

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal
agencies from establishing standards or engaging in related activities
that create unnecessary obstacles to the foreign commerce of the United
States. Pursuant to these Acts, the establishment of standards is not
considered an unnecessary obstacle to the foreign commerce of the
United States, so long as the standard has a legitimate domestic
objective, such as the protection of safety, and does not operate in a
manner that excludes imports that meet this objective. The statute also
requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards. The FAA has
assessed the potential effect of this direct final rule and determined
that it will primarily have only a domestic impact and therefore no
effect on international trade.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement
assessing the effects of any Federal mandate in a proposed or final
agency rule that may result in an expenditure of $100 million or more
(in 1995 dollars) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.'' The FAA currently
uses an inflation-adjusted value of $143.1 million in lieu of $100
million. This final rule does not contain such a mandate; therefore,
the requirements of Title II of the Act do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the FAA consider the impact of paperwork and other information
collection burdens imposed on the public. According to the 1995
amendments to the Paperwork Reduction Act (5 CFR 1320.8(b)(2)(vi)), an
agency may not collect or sponsor the collection of information, nor
may it impose an information collection requirement unless it displays
a currently valid Office of Management and Budget (OMB) control number.
    This rule is burden-relieving. No information collection is
associated with the removal of the requirement for affected individuals
to carry their letter of Authorization or with the removal of certain
notation on medical certificates. The Office of Management and Budget
(OMB) has approved the collection of information associated with
medical certification in accordance with the provisions of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under OMB Control
Number 2120-0034, valid through August 31, 2014.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to conform to
International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the maximum extent practicable. Prior to

adopting this action, the FAA consulted with ICAO counterparts in the
ICAO Aviation Medicine Section and on the ICAO Air Navigation
Commission to inform them this action is being taken. The FAA did not
receive any objections to removing this regulatory provision.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and
criteria of Executive Order 13132, Federalism. The Agency determined
that this action will not have a substantial direct effect on the
States, or the relationship between the Federal Government and the
States, or on the distribution of power and responsibilities among the
various levels of government, and, therefore, does not have Federalism
implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy
Supply, Distribution, or Use

    The FAA analyzed this final rule under Executive Order 13211,
Actions Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The agency has determined that it
is not a ``significant energy action'' under the executive order and it
is not likely to have a significant adverse effect on the supply,
distribution, or use of energy.

VI. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. The Agency
also invites comments relating to the economic, environmental, energy,
or federalism impacts that might result from adopting the rulemaking
action in this document. The most helpful comments reference a specific
portion of the rulemaking action, explain the reason for any
recommended change, and include supporting data. To ensure the docket
does not contain duplicate comments, commenters should send only one
copy of written comments, or if comments are filed electronically,
commenters should submit only one time.
    The FAA will file in the docket all comments it receives, as well
as a report summarizing each substantive public contact with FAA
personnel concerning this rulemaking. Before acting on this rulemaking
action, the FAA will consider all comments it receives on or before the
closing date for comments. The FAA will consider comments filed after
the comment period has closed if it is possible to do so without
incurring expense or delay. The Agency may change this rulemaking
action in light of the comments it receives.

B. Availability of Rulemaking Documents

    An electronic copy of rulemaking documents may be obtained from the
Internet by--
    1. Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies or
    3. Accessing the Government Printing Office's Web page at http://www.gpo.gov/fdsys/.
    Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW., Washington, DC 20591, or by calling<PHONE_NUMBER>.
Commenters must identify the docket or amendment number of this
rulemaking.
    All documents the FAA considered in developing this rulemaking
action, including economic analyses and technical reports, may be
accessed from the Internet through the Federal eRulemaking Portal
referenced in item (1) above.

List of Subjects in 14 CFR Part 67

    Aircraft, Airmen, Alcohol abuse, Drug abuse, Recreation and
recreation areas, Reporting and recordkeeping requirements.

The Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends chapter I of title 14, Code of Federal
Regulations as follows:

PART 67--MEDICAL STANDARDS AND CERTIFICATION

0
1. The authority citation for part 67 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44703, 44707, 44709-
44711, 45102-45103, 45301-45303.

Sec.  67.401  [Amended]

0
2. Amend Sec.  67.401 by removing paragraph (j).

    Issued in Washington, DC, on March 8, 2012.
Michael P. Huerta,
Acting Administrator.
[FR Doc. 2012-6886 Filed 3-21-12; 8:45 am]
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