[Federal Register Volume 78, Number 221 (Friday, November 15, 2013)]
[Notices]
[Pages 68888-68889]
[FR Doc No: 2013-27289]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70838; File No. SR-OCC-2013-19]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Concerning an Amendment to the Amended and Restated Clearing and
Services Agreement Between The Options Clearing Corporation and NYSE
Liffe US LLC in Connection With NYSE Liffe US LLC's Transition to
Electronic Vault Receipts

November 8, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on October 29, 2013, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I, II and III below, which
Items have been prepared primarily by OCC. OCC filed the proposed rule
change pursuant to Section 19(b)(3)(A)(iii) \3\ of the Act and Rule
19b-4(f)(4)(ii) \4\ thereunder, so that the proposal was effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b 4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b 4(f)(4)(ii).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    OCC is proposing to execute an amendment (``Amendment'') to the
Amended and Restated Clearing and Services Agreement (``Clearing
Agreement'') between OCC and NYSE Liffe US LLC (``NYSE Liffe US'') to
make changes to the Clearing Agreement in connection with NYSE Liffe
US' transition to electronic vault receipts, from physical vault
receipts, to represent metals underlying physically-settled precious
metal futures contracts (``Precious Metals Futures''). The Amendment
makes certain clarifying and non-material technical changes to the
Clearing Agreement.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Purpose of the Proposed Rule Change
    OCC provides clearance and settlement services to NYSE Liffe US
pursuant to the Clearing Agreement. OCC and NYSE Liffe US have been
working together on an initiative that will transition the vault
receipts that represent metals underlying Precious Metals Futures to
electronic vault receipts, instead of physical vault receipts
(``Initiative'').\5\ The purpose of this rule filing is to amend the
Clearing Agreement so that OCC and NYSE Liffe US may complete the
Initiative and begin using electronic vault receipts.
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    \5\ See Securities Exchange Act Release No. 34-69595 (May 16,
2013), 78 FR 30364 (May 22, 2013) (SR-OCC-2013-06).
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    In connection with the Initiative, NYSE Liffe US has entered into
bailment agreements with five vaults that will provide depository and
transfer services (each such agreement is hereinafter referred to as a
``Bailment Agreement'') for the electronic vault receipts of NYSE Liffe
US members that trade Precious Metals Futures (who are also OCC
clearing members). Each Bailment Agreement began as a ``form''
agreement, which was drafted collectively by NYSE Liffe US and OCC.
NYSE Liffe US subsequently negotiated various terms of the form
agreement with the five vaults and entered into executed Bailment
Agreements with each vault. OCC has reviewed each Bailment Agreement
and has determined that certain terms of the Bailment Agreement between
NYSE Liffe US and Brink's, Incorporated and Brink's Global Services
U.S.A., Inc. (collectively, ``Brinks'') differ from the form agreement
(i.e., Default Cures, Transfer of Metals and Audits) more than the
other Bailment Agreements and, therefore, the parties have agreed to
limit the amount of electronic vault receipts held at Brinks to no more
than $5 million at this time. Accordingly, OCC proposes to amend
Section 6(c)(iv)(F) of the Clearing Agreement to reflect such
limitation.
    The Amendment will also make several other non-material technical
changes to the Clearing Agreement, which include:
     An amendment to Section 6(c)(ii) of the Clearing Agreement
that will clarify NYSE Liffe US' right to pursue disciplinary action
against sellers of Precious Metals Futures that do not adhere to time
frames set forth by NYSE Liffe US regarding the issuance of vault
receipts;
     An amendment to Section 6(c)(v) of the Clearing Agreement
to clarify that vault receipts with a registration date of the first
day of the Transition period or later must be in electronic form, and
vault receipts with a registration date before the first day of the
Transaction Period must be in paper form;
     A technical amendment to replace the reference to
``Bailment Arrangement'' in Section 26(a)(ii) of the Clearing Agreement
with ``Bailment Agreement;''
     Technical amendments to Schedules D and F of the Clearing
Agreement to reflect an updated and current checklist and list of
executed bailment arrangements; and
     A technical amendment to add a Schedule G to the Clearing
Agreement, titled ``Form of Declaration of Regularity (referred to as
``Bailment Agreements'' in the Clearing Agreement).''
2. Statutory Basis for the Proposed Rule Change
    OCC believes the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act \6\ and the rules and regulations thereunder,
including Rule 17Ad-22,\7\ because it is designed to permit OCC to
perform clearance and settlement services for derivative products that
are subject to the jurisdiction of the Commodity Futures Trading
Commission (the ``CFTC'') without adversely affecting OCC's obligations
with respect to the prompt and accurate clearance and settlement of
securities transactions or the protection of securities investors and
the public interest. The proposed rule change will permit OCC to make
certain clarifying and technical amendments to its Clearing Agreement
with NYSE Liffe US, a futures market. The proposed rule change is not
inconsistent with any rules of OCC, including any rules proposed to be
amended.
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    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ 17 CFR 240.17Ad-22.

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(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose any
burden on competition that is not necessary or appropriate in
furtherance of the Act because it relates solely to a commodity futures
product subject to the exclusive jurisdiction of the CFTC and therefore
will not have any impact, or impose any burden, on competition in
securities markets or any other market governed by the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

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

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

    This proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-
4(f)(4)(ii) \9\ thereunder. Pursuant to Rule 19b-4(f)(4)(ii),\10\ a
rule change may take effect upon filing if it primarily affects the
clearing operations of the clearing agency with respect to products
that are not securities and does not significantly affect any
securities clearing operations of the clearing agency or any rights or
obligations of the clearing agency with respect to securities clearing
or persons using such securities-clearing service. As described above,
this rule proposed rule change concerns futures products that are
subject to the exclusive jurisdiction of the CFTC and does not
adversely affecting OCC's obligations with respect to the prompt and
accurate clearance and settlement of securities transactions or the
protection of securities investors and the public interest.
Notwithstanding the foregoing, OCC will delay its implementation of
this rule change until it is deemed certified under Regulation Sec.
40.6 of the CFTC.\11\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(4)(ii).
    \10\ Id.
    \11\ 17 CFR Part 40.6.
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2013-19 on the subject line.
Paper Comments
     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OCC-2013-19. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method of submission. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Section, 100
F Street NE., Washington, DC 20549, on official business days between
the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will
be available for inspection and copying at the principal office of OCC
and on OCC's Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_13_19.pdf.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly.
    All submissions should refer to File Number SR-OCC-2013-19 and
should be submitted on or before December 6, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27289 Filed 11-14-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 18 (Friday, January 29, 2021)]
[Proposed Rules]
[Pages 7516-7518]
[FR Doc No: 2021-01958]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 29

[Docket No. FAA-2021-0065; Notice No. 29-054-SC]

Special Conditions: Bell Textron Inc., Model 525 Helicopter; Fly-
By-Wire (FBW) Flight Control System (FCS)

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed special conditions.

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SUMMARY: This action proposes special conditions for the Bell Textron
Inc. (Bell) Model 525 helicopter. This helicopter will have a novel or
unusual design feature associated with a fly-by-wire (FBW) flight
control system (FCS). The applicable airworthiness regulations do not
contain adequate or appropriate safety standards for this design
feature. These proposed special conditions contain the additional
safety standards that the Administrator considers necessary to
establish a level of safety equivalent to that established by the
existing airworthiness standards.

DATES: Send comments on or before March 15, 2021.

ADDRESSES: Send comments identified by Docket No. FAA-2021-0065 using
any of the following methods:
     Federal eRegulations 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: Except for Confidential Business Information (CBI) as
described in the following paragraph, and other information as
described in 14 CFR 11.35, the FAA will post all comments it receives,
without change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket website, 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).
    Confidential Business Information: CBI is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
these proposed special conditions contain commercial or financial
information that is customarily treated as private, that you actually
treat as private, and that is relevant or responsive to these proposed
special conditions, it is important that you clearly designate the
submitted comments as CBI. Please mark each page of your submission
containing CBI as ``PROPIN.'' The FAA will treat such marked
submissions as confidential under the FOIA, and they will not be placed
in the public docket of these proposed special conditions. Submissions
containing CBI should be sent to John VanHoudt, FAA, Dynamic Systems
Section, AIR-627, Technical Innovation Policy Branch, Policy and
Innovation Division, Aircraft Certification Service, 10101 Hillwood
Parkway, Fort Worth, TX 76177-98198; telephone and fax<PHONE_NUMBER>;
email<EMAIL_ADDRESS>Any commentary that the FAA receives
which is not specifically designated as CBI will be placed in the
public docket for this rulemaking.
    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: John VanHoudt, FAA, Dynamic Systems
Section, AIR-627, Technical Innovation Policy Branch, Policy and
Innovation Division, Aircraft Certification Service, 10101 Hillwood
Parkway, Fort Worth, TX 76177-98198; telephone and fax<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2021-0065; Notice No. 29-054-
SC'' at the beginning of your comments. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
these proposed special conditions because of those comments.

Background

    On December 15, 2011, Bell applied for a type certificate for a new
14 CFR part 29 transport category helicopter designated as the Model
525. Bell applied for multiple extensions, with the most recent
occurring on November 12, 2020. The date of the updated type
certification basis is December 31, 2016, based upon the applicant's
proposed type certificate issuance date of December 31, 2021. The Model
525 is a medium twin-engine rotorcraft. The design maximum takeoff
weight is 20,500 pounds, with a maximum capacity of 19 passengers and a
crew of 2.
    The Bell Model 525 helicopter will be equipped with a four axis
full authority digital FBW FCS that provides for aircraft control
through pilot input and coupled flight director modes. The design of
the Bell Model 525 FBW controls, which provides no direct hydro-
mechanical linkage between the primary cockpit flight controls or
inceptors and the main and tail rotor

actuators, is a first for commercial rotorcraft use. Therefore, the
regulations do not contain adequate or appropriate safety standards for
this new design feature.
    The rotorcraft industry is producing new generations of
helicopters, and gradually increasing size, speed, load capacity, and
technical sophistication. In recent years, an accelerated trend has
occurred using rotorcraft for a wide range of commercial and industrial
applications. This has resulted in increased complexity of modern
control systems and increased use of automation in flight control
systems, including the implementation of advanced flight control
systems such as FBW FCS.
    Title 14, Code of Federal Regulations (CFR), Sec.  29.671(c), which
provides requirements for transport category rotorcraft control
systems, does not contain adequate or appropriate safety standards for
this new design feature. 14 CFR 29.671(c) requires, in part, a means to
allow the pilot to determine that full control authority is available
prior to flight. This command control authority is typically achieved
by verifying movement of the control quadrant through an unassisted
mechanical pilot-initiated manipulation of the primary flight controls
prior to flight. Although this approach does not guarantee that 100%
maximum control movement of the flight controls has been achieved prior
to flight, it has been deemed appropriate for mechanical flight control
systems.
    Unlike traditional mechanical flight control systems, the FBW FCS
reduces the opportunity for jamming of the flight controls due to
mechanical bind, improper servo adjustment resulting from faulty
maintenance, or presence of a foreign object in the control mechanism
that will impair safety. This reduced exposure for jams is due to the
replacement of the mechanical linkages between the primary cockpit
flight controls or inceptors and the main and tail rotor actuators with
digital signal processing wiring. However, the FBW FCS does increase
the potential for latent failures or faults that could impair full
control authority, unless a means exists to ensure the FBW FCS is fully
functional and free of control authority impairment prior to flight. A
FBW system may have the ability to verify full control authority
without having to move the primary flight controls.
    Although part 29 does not contain adequate or appropriate safety
standards for this novel or unusual design feature, 14 CFR 25.671,
amendment 25-23, provides these requirements for transport category
airplanes. Accordingly, these proposed special conditions are based on
Sec.  25.671 to provide requirements for a FBW FCS on the Bell Model
525 helicopter. 14 CFR 25.671(c) provides the same level of safety as
that intended by Sec.  29.671(c) when employing a FBW FCS by including
requirements for jamming and failure analysis. The proposed special
conditions would require a comprehensive safety analysis of the
aircraft's FBW FCS to include failures due to command logic (software),
mechanical and electronic interfaces to other systems, jamming and
maintenance. Therefore, in conjunction with Sec.  29.671(a) and (b),
the proposed special conditions incorporate provisions from Sec.
25.671(c) to establish a level of safety equivalent to that established
in the regulations.

Type Certification Basis

    Under the provisions of 14 CFR 21.17, Bell must show that the Model
525 helicopter meets the applicable provisions of part 29, as amended
by Amendments 29 through 55 thereto. The Bell Model 525 certification
basis date is December 31, 2016.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 29) do not contain adequate or
appropriate safety standards for the Bell Model 525 because of a novel
or unusual design feature, special conditions are prescribed under the
provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same or similar
novel or unusual design feature, the special conditions would also
apply to the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Bell Model 525 helicopter must comply with the the
noise certification requirements of 14 CFR part 36, and the FAA must
issue a finding of regulatory adequacy under Sec.  611 of Public Law
92-574, the ``Noise Control Act of 1972.''.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type-
certification basis under Sec.  21.17(a)(2).

Novel or Unusual Design Features

    The Bell Model 525 helicopter will incorporate the following novel
or unusual design features: A FBW FCS.
    This new design feature has no direct hydro-mechanical linkage
between the primary cockpit flight controls or inceptors and the main
and tail rotor actuators, thereby eliminating the more complex elements
of either a manual movement of the controls by the pilot, or another
manual means.

Discussion

    The proposed special conditions would require that a means be
available to show full control authority for all powered control
systems.
    The proposed special conditions contain the additional safety
standards that the Administrator considers necessary to establish a
level of safety equivalent to that established by the existing
airworthiness standards.

Applicability

    As discussed above, these special conditions are applicable to the
Bell Model 525 helicopter. Should Bell apply at a later date for a
change to the type certificate to include aother model incorporating
the same novel or unusual design feature, these special conditions
would apply to that model as well.

Conclusion

    This action affects only a certain novel or unusual design feature
on the Bell Model 525 helicopter. It is not a rule of general
applicability.

List of Subjects in 14 CFR Part 29

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

Authority Citation

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701-44702, 44704.

The Proposed Special Conditions

    Accordingly, the Federal Aviation Administration (FAA) proposes the
following special conditions in lieu of Sec.  29.671(c) as part of the
type certification basis for the Bell Textron Inc. Model 525
helicopter:
    The rotorcraft must be shown by analysis, tests, or both, to be
capable of continued safe flight and landing after any of the following
failures or jamming in the flight control system within the normal
flight envelope, without requiring exceptional piloting skill or
strength. Probable failures must have only minor effects.
    (1) Any single failure not shown to be extremely improbable,
excluding jamming.
    (2) Any combination of failures not shown to be extremely
improbable, excluding jamming.
    (3) Any jam in a control position normally encountered during
hover, takeoff, climb, cruise, normal turns,

descent, and landing, unless the jam is shown to be extremely
improbable or can be alleviated.

    Issued in Fort Worth, Texas.
Jorge Castillo,
Manager, Strategic Policy Rotorcraft Section, Policy and Innovation
Division, Aircraft Certification Service.
[FR Doc. 2021-01958 Filed 1-28-21; 8:45 am]
BILLING CODE 4910-13-P