[Federal Register Volume 76, Number 210 (Monday, October 31, 2011)]
[Notices]
[Pages 67233-67234]
[FR Doc No: 2011-28210]

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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold an Open Meeting on November 2, 2011
at 9 a.m., in the Auditorium, Room L-002, to hear oral argument in an
appeal by Wendy McNeeley, CPA, from an initial decision of an
administrative law judge.
    The law judge found that McNeeley engaged in improper professional
conduct as defined in the Commission's Rule of Practice 102(e) by
engaging in highly unreasonable conduct that resulted in a violation of
applicable professional standards in circumstances in which McNeeley
knew, or should have known, that heightened scrutiny was warranted. The
law judge determined that McNeeley should be denied the privilege of
appearing or

practicing as an accountant before the Commission for one year.
    Issues likely to be considered at oral argument include whether
McNeeley engaged in improper professional conduct as defined in the
Commission's Rule of Practice 102(e) and, if so, the extent to which,
under the circumstances, sanctions are warranted.
    For further information, please contact the Office of the Secretary
at<PHONE_NUMBER>.

    Dated: October 26, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-28210 Filed 10-27-11; 11:15 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 204 (Tuesday, October 24, 2017)]
[Rules and Regulations]
[Pages 49095-49097]
[FR Doc No: 2017-22951]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0946; Product Identifier 2017-SW-045-AD; Amendment
39-19081; AD 2017-22-01]
RIN 2120-AA64

Airworthiness Directives; Sikorsky Aircraft Corporation
Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: We are adopting a new airworthiness directive (AD) for
Sikorsky Aircraft Corporation (Sikorsky) Model S-92A helicopters. This
AD requires adding operating limitations to a rotorcraft flight manual
(RFM). This AD is prompted by test results showing decoupling of the
flight director (FD) in certain flight conditions. The actions of this
AD are intended to address an unsafe condition on these products.

DATES: This AD becomes effective November 8, 2017.
    The Director of the Federal Register approved the incorporation by
reference of a certain document listed in this AD as of November 8,
2017.
    We must receive comments on this AD by December 26, 2017.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Docket: Go to http://www.regulations.gov. Follow the online instructions for sending your
comments electronically.
     Fax:<PHONE_NUMBER>.
     Mail: Send comments to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.
     Hand Delivery: Deliver to the ``Mail'' address between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0946; or in person at the Docket Operations Office between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, any incorporated by reference service information,
the economic evaluation, any comments received, and other information.
The street address for the Docket Operations Office (telephone 800-647-
5527) is in the ADDRESSES section. Comments will be available in the AD
docket shortly after receipt.
    For service information identified in this final rule, contact
Sikorsky Aircraft Corporation, Customer Service Engineering, 124 Quarry
Road, Trumbull, CT 06611; telephone 1-800-Winged-S or<PHONE_NUMBER>;
email [email protected]. You may review the
referenced service information at the FAA, Office of the Regional
Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort
Worth, TX 76177. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0946.

FOR FURTHER INFORMATION CONTACT: Nick Rediess, Aviation Safety
Engineer, Boston ACO Branch, Compliance and Airworthiness Division,
1200 District Avenue, Burlington, MA 01803; telephone<PHONE_NUMBER>;
email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not provide you with notice and an opportunity to
provide your comments prior to it becoming effective. However, we
invite you to participate in this rulemaking by submitting written
comments, data, or views. We also invite comments relating to the
economic, environmental, energy, or federalism impacts that resulted
from adopting this AD. The most helpful comments reference a specific
portion of the AD, 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 them only one time. We will file in the docket all comments that
we receive, as well as a report summarizing each substantive public
contact with FAA personnel concerning this rulemaking during the
comment period. We will consider all the comments we receive and may
conduct additional rulemaking based on those comments.

Discussion

    We are adopting a new AD for Sikorsky Model S-92A helicopters with
a Flight Control Computer (FCC) part number 92900-01802-112 installed.
The FCC is part of the Search and Rescue (SAR) Automatic Flight Control
System (AFCS). During laboratory testing, Sikorsky discovered a defect
in the FCC software that results in the FD decoupling in all three axes
when pilot input is made to transition between two SAR AFCS modes. When
the AFCS is engaged in SAR Approach 2 (APP2) with an indicated airspeed
below VMINI (50 KIAS), the decoupling will occur if the
pilot initiates a transition to Velocity Hover Hold (VHLD) mode by
pressing the VHLD button on the Mode Select Panel (MSP). The decoupling
is annunciated to the pilot but only after a three-second delay. During
the delay, the rotorcraft may pitch up with the rate of descent
increases to as much as 450 fpm. Because of this, the pilot must take
immediate manual control of the rotorcraft after decoupling. This
condition could result in loss of control of the helicopter and flight
into terrain. According to Sikorsky, the root cause of the failure is
under investigation.

FAA's Determination

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

Related Service Information Under 1 CFR Part 51

    Sikorsky has issued SA S92A-RFM-003 RFM Supplement (RFMS) No. 4
(Sikorsky SA S92A-RFM-003 RFMS No. 4), Revision 1, approved October 6,
2017, for the Model S-92A helicopter SAR AFCS. This revision of the
RFMS prohibits engaging VHLD during coupled SAR APP2 mode via MSP soft
key, adds a warning explaining the decoupling event and subsequent
aircraft behavior, and adds a note regarding correctly activating VHLD
mode with the cyclic trim release switch or selecting VHLD during Mark-
On-Top (MOT).
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Other Related Service Information

    Sikorsky has issued letter CCS-92-APL-17-0001, dated July 31, 2017,
for Model S-92A helicopters, which describes the conditions that result
in the FD decoupling and provides instructions on how to avoid it. This
service information further provides instructions for re-engaging the
FD if decoupling occurs.

AD Requirements

    This AD requires revising the Operating Limitations section of
Sikorsky SA S92A-RFM-003 RFMS No. 4 by prohibiting engaging VHLD via
either MSP soft key during coupled SAR APP2 mode, adding a warning
describing the decoupling event and subsequent AFCS and aircraft
behavior, and adding a note regarding correctly activating VHLD mode
with the cyclic trim release switch or selecting VHLD during MOT.

Interim Action

    We consider this AD to be an interim action. The design approval
holder is currently developing a modification that will address the
unsafe condition identified in this AD. Once this modification is
developed, approved, and available, we might consider additional
rulemaking.

Costs of Compliance

    We estimate that this AD will affect 87 helicopters of U.S.
Registry. We estimate that operators may incur the following costs in
order to comply with this AD. Labor costs are estimated at $85 per
work-hour.
    Revising the RFMS will take about 0.5 work-hour for an estimated
cost of $43 per helicopter and $3,741 for the U.S. fleet.

FAA's Justification and Determination of the Effective Date

    Providing an opportunity for public comments prior to adopting
these AD requirements would delay implementing the safety actions
needed to correct this known unsafe condition. Therefore, we find that
the risk to the flying public justifies waiving notice and comment
prior to the adoption of this rule because the required corrective
actions must be completed within 10 hours time-in-service.
    Since an unsafe condition exists that requires the immediate
adoption of this AD, we determined that notice and opportunity for
public comment before issuing this AD are impracticable and that good
cause exists for making this amendment effective in less than 30 days.

Authority for This Rulemaking

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

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
Government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed, I certify that this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979);
    3. Will not affect intrastate aviation in Alaska to the extent that
it justifies making a regulatory distinction; and
    4. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared an economic evaluation of the estimated costs to comply
with this AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

2017-22-01 Sikorsky Aircraft Corporation: Amendment 39-19081; Docket
No. FAA-2017-0946; Product Identifier 2017-SW-045-AD.

(a) Applicability

    This AD applies to Model S-92A helicopters, certificated in any
category, with a Search and Rescue (SAR) Automatic Flight Control
System installed with a Flight Control Computer (FCC) part number
92900-01802-112.

(b) Unsafe Condition

    This AD defines the unsafe condition as a software defect in the
FCC. This condition could result in unintended decoupling of the
flight director in all three axes and flight into terrain.

(c) Effective Date

    This AD becomes effective November 8, 2017.

(d) Compliance

    You are responsible for performing each action required by this
AD within the specified compliance time unless it has already been
accomplished prior to that time.

(e) Required Actions

    Within 10 hours time-in-service, revise the operating
limitations section of the Rotorcraft Flight Manual by adding the
information in Figure 1 to paragraph (e) of this AD as paragraph 4,
System Limits, in Section 1 of Sikorsky SA S92A-RFM-003 Rotorcraft
Flight Manual Supplement (RFMS) No. 4 for the SAR AFCS (Sikorsky SA
S92A-RFM-003 RFMS No. 4). This action may be done by:
    (1) Inserting a copy of this AD;
    (2) Making pen-and-ink changes; or
    (3) Inserting pages 1-2 and 1-3/1-4 of Sikorsky SA S92A-RFM-003
RFMS No. 4, Revision 1, approved October 6, 2017. Using a different
Sikorsky SA S92A-RFM-003 RFMS No. 4 revision with information
identical to that in paragraph 4, System Limits, from Section 1 of
Sikorsky SA S92A-RFM-003 RFMS No. 4, Revision 1, approved October 6,
2017, is acceptable for compliance with the requirements of this AD.

[GRAPHIC] [TIFF OMITTED] TR24OC17.005

(f) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Boston ACO Branch, FAA, may approve AMOCs for
this AD. Send your proposal to: Nick Rediess, Aviation Safety
Engineer, Boston ACO Branch, Compliance and Airworthiness Division,
1200 District Avenue, Burlington, MA 01803; telephone (781) 238-
7159; email [email protected].
    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, we suggest that you
notify your principal inspector, or lacking a principal inspector,
the manager of the local flight standards district office or
certificate holding district office before operating any aircraft
complying with this AD through an AMOC.

(g) Additional Information

    Sikorsky letter CCS-92-APL-17-0001, dated July 31, 2017, which
is not incorporated by reference, contains additional information
about the subject of this AD. For service information identified in
this AD, contact Sikorsky Aircraft Corporation, Customer Service
Engineering, 124 Quarry Road, Trumbull, CT 06611; telephone 1-800-
Winged-S or<PHONE_NUMBER>; email [email protected]. You may review this service information at the FAA,
Office of the Regional Counsel, Southwest Region, 10101 Hillwood
Pkwy, Room 6N-321, Fort Worth, TX 76177.

(h) Subject

    Joint Aircraft Service Component (JASC) Code: 2210, Autopilot
System.

(i) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Pages 1-2 and 1-3/1-4 of Sikorsky SA S92A-RFM-003 RFMS No. 4
Sikorsky Model S-92A Part 1, Revision 1, approved October 6, 2017.
    (ii) Reserved.
    (3) For Sikorsky service information identified in this AD,
Sikorsky Aircraft Corporation, Customer Service Engineering, 124
Quarry Road, Trumbull, CT 06611; telephone 1-800-Winged-S or 203-
416-4299; email [email protected].
    (4) You may view this service information at FAA, Office of the
Regional Counsel, Southwest Region, 10101 Hillwood Pkwy, Room 6N-
321, Fort Worth, TX 76177. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Fort Worth, Texas, on October 16, 2017.
James A. Grigg,
Acting Director, Compliance & Airworthiness Division, Aircraft
Certification Service.
[FR Doc. 2017-22951 Filed 10-23-17; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 20 (Thursday, January 30, 2020)]
[Notices]
[Pages 5489-5491]
[FR Doc No: 2020-01649]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88039; File No. SR-LCH SA-2019-007]

Self-Regulatory Organizations; LCH SA; Order Approving Proposed
Rule Change Relating to Amendments to LCH SA's Liquidity Risk Modelling
Framework

January 24, 2020.

I. Introduction

    On December 3, 2019, Banque Centrale de Compensation, which
conducts business under the name LCH SA (``LCH SA''), filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\
and Rule 19b-4 thereunder \2\ a proposed rule change (``Proposed Rule
Change'') to amend its Liquidity Risk Modeling Framework (the
``Framework''). The Proposed Rule Change was published for comment in
the Federal Register on December 10, 2019.\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 87655 (Dec. 4, 2019), 84
FR 67488 (Dec. 10, 2019) (SR-LCH-SA-2019-007) (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    LCH SA is proposing to amend its Framework, which describes the
Liquidity Stress Testing framework by which the Collateral and
Liquidity Risk Management department of LCH Group Holdings Limited
(``LCH Group'') assures that LCH SA has enough cash available to meet
any financial obligations, both expected and unexpected, that may arise
over the liquidation period for each of the clearing services that LCH
SA offers.\4\ The Framework identifies LCH SA's sources of liquidity
and corresponding liquidity risks; identifies LCH SA's liquidity
requirements with respect to its members and its interoperable central
counterparty; describes the metrics and limits that LCH SA monitors;
and describes the scenarios under which these metrics are computed.\5\
The proposed rule change would make revisions to three aspects of the
Framework related to physically-settled options, Fixed Income Clearing
System, and stress tests.
---------------------------------------------------------------------------

    \4\ The following description is substantially excerpted from
the Notice.
    \5\ Notice, 84 FR at 67488.
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A. Physically-Settled Options

    LCH SA is proposing to amend the Framework in order to address more
accurately its liquidity requirements in the event of the assignment
and exercise of physically-settled options involving a defaulting
clearing member during the liquidation period of such clearing
member.\6\ Specifically, the amended Framework will address LCH SA's
liquidity requirements in the event options that are in the money are
exercised either on the day (``T''), or on the business day immediately
following the day (``T+1''), on which the clearing member that is a
seller of the options defaults.\7\
---------------------------------------------------------------------------

    \6\ Id.
    \7\ Notice, 84 FR at 67488-67489.
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    If a defaulting clearing member is a seller of a Call option that
is in the money, LCH SA would have to purchase the underlying
securities in the market at a stressed price and await payment at the
strike price from the non-defaulting purchaser of the Call option at
settlement.\8\ If such defaulting clearing member is a seller of a Put
option that is in the money, LCH SA would have to purchase the
underlying securities at the strike price from the non-defaulting
purchaser of the Put option.\9\ Although margins should cover any
potential loss, liquidity outflows as a result of the sales' proceeds
are included as liquidity requirements, in each case.\10\
---------------------------------------------------------------------------

    \8\ Notice, 84 FR at 67489.
    \9\ Id.
    \10\ Id.
---------------------------------------------------------------------------

    In the current Framework, there is no liquidity provision related
to the risk of assignment and exercise of options at expiration.\11\ In
order to address this concern, the amended Framework will anticipate,
prior to the expiration dates, the amount of liquidity funding that may
arise from options that may be exercised, in the event of the default
of LCH SA's two largest members (``Cover 2'').\12\ On a daily basis,
LCH's liquidity coverage ratio (``LCR'') calculation will identify all
of the potential positions that are in the money or at the money on
that day and the next business day.\13\ Given the potential option
exercise, the LCR calculation will generate a liquidity need.\14\ The
additional liquidity amount that LCH SA could potentially need will be
equal to the sum of the equities to source following the option
assignments at expiration and/or the difference between the underlying
securities and the strike price or the strike price minus the asset in
the event of a cash settlement.\15\
---------------------------------------------------------------------------

    \11\ Id.
    \12\ Id.
    \13\ Id.
    \14\ Id.
    \15\ Id.
---------------------------------------------------------------------------

    In practice, the process would work as follows on a daily basis:
     The liquidity needs arising from the options that are in
the money or at the money, having their expiries on T or T+1, will be
computed by applying no market stress to the equities.
     The liquidity needs arising from the options that are in
the money or at the money, having their expiries on T or T+1, will be
computed by applying a stress scenario to the equities.
     LCH SA will select the positions consistent with the Cover
2 for both modes described above and will retain the most punitive one.
    This amount would be added to the current cash equity amount in the
LCR calculation, which LCH would then retain through qualified liquid
resources.\16\
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    \16\ Id.
---------------------------------------------------------------------------

B. Fixed Income Clearing System

    LCH SA is proposing to amend the Framework to take into account the
expansion of sovereign debt for which LCH SA provides clearing services
through its Fixed Income Clearing System.\17\ LCH SA initially provided
clearing services only with respect to French sovereign debt.\18\ The
Fixed Income Clearing service subsequently added the sovereign debt of
Italy, Spain, Germany, and Belgium.\19\ More recently, the Fixed Income
Clearing System has been extended to eight additional Euro markets:
Austria, Netherlands, Finland, Ireland, Portugal, Slovakia, Slovenia
and Supranationals.\20\
---------------------------------------------------------------------------

    \17\ Id.
    \18\ Id.
    \19\ Id.
    \20\ Id.
---------------------------------------------------------------------------

    In this regard, therefore, the Framework would be revised to
provide that all securities resulting from the settlement of all
repurchase contracts (``repos'') on behalf of a defaulting clearing
member, not just repos on the sovereign debt of France, Italy and
Spain, may be used to generate liquidity

at the Banque de France.\21\ The amended Framework would also clarify
that, in the event that a Central Bank Guarantee (``CBG'') is triggered
by the default of a clearing member posting the CBG, the relevant
Central Bank will pay the liabilities of the defaulting clearing member
in cash.\22\
---------------------------------------------------------------------------

    \21\ Id.
    \22\ Id.
---------------------------------------------------------------------------

    Further, the Framework would be revised to (i) identify the
relevant central securities depository (``CSD'') through which
transactions in the sovereign debt of the different jurisdictions may
settle, (ii) describe the manner by which LCH SA injects liquidity into
each settlement platform, in particular, Euroclear Bank and Clearstream
Luxembourg, and (iii) modify the limits by settlement platform on the
main liquidity drivers (i.e., cash injected into the platforms, auto-
collateralization and gross fails).\23\
---------------------------------------------------------------------------

    \23\ Id.
---------------------------------------------------------------------------

C. Stress Tests

    The proposed rule change would make clarifications with respect to
certain aspects of its stress tests.\24\ With respect to the
operational liquidity target, which is a metric allowing LCH SA to
confirm that the business as usual liquidity sources are sufficient for
a five day period in stressed situations, consistent with the LCR time
horizon, the Framework would note that LCH SA uses a three-day window
with regard to margin reduction.\25\ The Framework would further
clarify that, in calculating liquidity resources, LCH SA deducts funds
required to facilitate settlements, cover end of day fails at Euroclear
Bank and Clearstream Luxembourg, and avoid Target 2 Securities
fails.\26\ In addition, the Framework assumes that members allowed to
post CBGs will switch from cash or ECB-eligible non-cash collateral to
CBGs (although the Framework does not currently take such switches into
account, since all eligible members, i.e., Dutch and Belgian members,
have already done so).\27\ Moreover, the amended Framework would
confirm that, in calculating required variation margin payments to
CC&G, LCH SA assumes a theoretical 5-day holding period.\28\
---------------------------------------------------------------------------

    \24\ Id.
    \25\ Id.
    \26\ Id. Target 2 Securities is a Eurosystem technical platform
to which CSDs assign the management of securities settlement in
central bank money.
    \27\ Id.
    \28\ Id.
---------------------------------------------------------------------------

    The amended Framework would also clarify how stressed liquidity
requirements and impact are calculated for each clearing member, in
particular with respect to the cash equity settlement requirement for
options.\29\ These calculations are used to determine the two clearing
members that would potentially cause the largest aggregate liquidity
exposure for the CCP in extreme but plausible market conditions.\30\
---------------------------------------------------------------------------

    \29\ Id.
    \30\ Id.
---------------------------------------------------------------------------

    Finally, the Framework would clarify how LCH SA conducts reverse
stress tests in order to determine if there is a combination of changes
in LCH SA's liquidity that could lead to a liquidity shortfall.\31\ In
particular, the amended Framework would consider whether there is a
combination of changes in LCH SA's liquidity resources that could lead
to a liquidity shortfall, even in the absence of stress in the
market.\32\
---------------------------------------------------------------------------

    \31\ Id.
    \32\ Id.
---------------------------------------------------------------------------

III. Commission Findings

    Section 19(b)(2)(C) of the Act directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
the proposed rule change is consistent with the requirements of the Act
and the rules and regulations thereunder applicable to the
organization.\33\ For the reasons given below, the Commission finds
that the proposed rule change is consistent with Section 17A(b)(3)(F)
of the Act \34\ and Rule 17Ad-22(e)(4)(ii) thereunder.\35\
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(2)(C).
    \34\ 15 U.S.C. 78q-1(b)(3)(F).
    \35\ 17 CFR 240.17Ad-22(e)(4)(ii).
---------------------------------------------------------------------------

A. Consistency With Section 17A(b)(3)(F) of the Act

    Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of LCH SA be designed to promote the prompt and accurate
clearance and settlement of securities transactions and, to the extent
applicable, derivative agreements, contracts, and transactions, to
assure the safeguarding of securities and funds which are in the
custody or control of LCH SA or for which it is responsible, and, in
general, to protect investors and the public interest.\36\
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    As described above, the proposed rule change would amend the
Framework to anticipate, prior to expiration dates, the need for LCH SA
to step in and meet a defaulter's obligation in the event of the
assignment or exercise of physically-settled options involving a
defaulting clearing member by utilizing the LCR calculation, on a daily
basis, to identify all of the potential positions that are in the money
or at the money on that day and the next business day. LCH SA will then
be able to calculate the additional need and ensure it holds sufficient
qualified liquid resources to meet that need. The Commission believes
that, by anticipating and ensuring that it meets its liquidity needs in
this manner, the proposed rule change would help ensure that LCH SA is
able to meet its financial obligations in stressed situations, which in
turn would allow LCH SA to continue to meet its obligation to promptly
and accurately clear and settle securities transactions in such
situations.
    Further, as noted above, the proposed rule change would amend the
Framework to take into account the expansion of sovereign debt for
which LCH SA provides clearing services through its Fixed Income
Clearing System. Specifically, LCH SA would revise the Framework to
provide that all securities resulting from the settlement of all repos
on behalf of a defaulting clearing member, not just repos on the
sovereign debt of France, Italy and Spain, may be used to generate
liquidity at the Banque de France, and clarify that, in the event that
a CBG is triggered by the default of a clearing member posting the CBG,
the relevant Central Bank will pay the liabilities of the defaulting
clearing member in cash. The Commission believes that, through these
changes, the proposed rule change would enhance LCH SA's sources of
liquidity and thus LCH SA's financial condition, which in turn would
support LCH SA's ability to continue to promptly and accurately clear
and settle securities transactions. Additionally, the Commission
believes that by specifying the CSD through which transactions in the
identified foreign sovereign debt may settle and describing the manner
by which LCH SA injects liquidity into each settlement platform, the
proposed rule change would strengthen LCH SA's procedures for
safeguarding securities and funds for which it is responsible and
facilitate prompt and accurate clearance and settlement by clarifying
procedures for interacting with such platforms.
    For the reasons stated above, the Commission believes that the
proposed rule change is consistent with Section 17A(b)(3)(F) of the
Act.\37\
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Consistency With Rule 17Ad-22(e)(4)(ii)

    Rule 17Ad-22(e)(4)(ii) requires that, among other things, LCH SA
establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable, effectively identify,
measure, monitor, and manage its credit exposures to

participants and those arising from its payment, clearing, and
settlement processes, including by maintaining additional financial
resources at the minimum to enable it to cover a wide range of
foreseeable stress scenarios that include, but are not limited to, the
default of the two participant families that would potentially cause
the largest aggregate credit exposure for the covered clearing agency
in extreme but plausible market conditions.\38\
---------------------------------------------------------------------------

    \38\ 17 CFR 240.17Ad-22(e)(4)(ii).
---------------------------------------------------------------------------

    As described above, the proposed rule change would amend the
Framework to clarify certain aspects of LCH SA's stress tests.
Specifically, the proposed rule change would clarify how stressed
liquidity requirements and impact are calculated for each clearing
member. Because these calculations would then be used by LCH SA to
determine the two clearing members that would potentially cause the
largest aggregate liquidity exposure for LCH SA in extreme but
plausible market conditions, the Commission believes that the proposed
rule change would support LCH SA's ability to effectively identify,
measure, monitor, and manage its credit exposures to participants, and
ultimately maintain additional financial resources at the minimum to
enable it to cover a wide range of foreseeable stress scenarios that
include, but are not limited to, the default of the two participant
families. Further, by clarifying how LCH SA conducts reverse stress
tests in order to determine if there is a combination of changes in LCH
SA's liquidity that could lead to a liquidity shortfall even in the
absence of stress in the market, the Commission believes that the
proposed rule change would enhance LCH SA's ability to manage its
credit exposures and maintain additional resources.
    Finally, as discussed above, under the proposed rule change the
Framework would anticipate, prior to expiration dates, the need for LCH
SA to step in and meet a defaulter's obligation in the event of the
assignment or exercise of physically-settled options involving a
defaulting clearing member. The Commission believes that this change as
well would enhance LCH SA's ability to manage its credit exposures and
maintain additional financial resources to cover foreseeable stress
scenarios involving Cover 2 by identifying the liquidity need ahead of
time and then retaining the amounts through qualified liquid resources.
    For the reasons stated above, the Commission believes that the
proposed rule changes are consistent with Rule 17Ad-22(e)(4)(ii).\39\
---------------------------------------------------------------------------

    \39\ 17 CFR 240.17Ad-22(e)(4)(ii).
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act,
and in particular, with the requirements of Section 17A(b)(3)(F) of the
Act \40\ and Rule 17Ad-22(e)(4)(ii) thereunder.\41\
---------------------------------------------------------------------------

    \40\ 15 U.S.C. 78q-1(b)(3)(F).
    \41\ 17 CFR 240.17Ad-22(e)(4)(ii).
---------------------------------------------------------------------------

    It is therefore ordered pursuant to Section 19(b)(2) of the Act
\42\ that the proposed rule change (SR-LCH SA-2019-007) be, and hereby
is, approved.\43\
---------------------------------------------------------------------------

    \42\ 15 U.S.C. 78s(b)(2).
    \43\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
---------------------------------------------------------------------------

    \44\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-01649 Filed 1-29-20; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 66 (Tuesday, April 7, 2015)]
[Rules and Regulations]
[Pages 18522-18526]
[FR Doc No: 2015-07872]

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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 141204999-5186-01]
RIN 0694-AG41

Revisions to the Export Administration Regulations Based on the
2014 Missile Technology Control Regime Plenary Agreements

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Export Administration Regulations (EAR) to reflect changes to the
Missile Technology Control Regime (MTCR) Annex that were agreed to by
MTCR member countries at the September and October 2014 Plenary in
Oslo, Norway, and pursuant to the 2014 Technical Experts Meeting in
Prague, Czech Republic. This rule also makes conforming changes to
correlate the Commerce Control List (CCL) (Supplement No. 1 to Part 774
of the EAR) with the current MTCR Annex. This final rule revises six
Export Control Classification Numbers (ECCNs) to implement the changes
that were agreed to at the meetings and to better align the MT controls
on the CCL with the MTCR Annex.

DATES: This rule is effective April 7, 2015.

FOR FURTHER INFORMATION CONTACT: Sharon Bragonje, Nuclear and Missile
Technology Controls Division, Bureau of Industry and Security, Phone:
(202) 482-0434; Email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    The MTCR is an export control arrangement among 34 nations,
including most of the world's suppliers of advanced missiles and
missile-related equipment, materials, software and technology. The
regime establishes a common list of controlled items (the Annex) and a
common export control policy (the Guidelines) that member countries
implement in accordance with their national export controls. The MTCR
seeks to limit the risk of proliferation of weapons of mass destruction
by controlling exports of goods and technologies that could make a
contribution to delivery systems (other than manned aircraft) for such
weapons.
    In 1992, the MTCR's original focus on missiles for nuclear weapons
delivery was expanded to include the proliferation of missiles for the
delivery of all types of weapons of mass destruction (WMD), i.e.,
nuclear, chemical and biological weapons. Such proliferation has been
identified as a threat to international peace and security. One way to
counter this threat is to maintain vigilance over the transfer of
missile equipment, material, and related technologies usable for
systems capable of delivering WMD. MTCR members voluntarily pledge to
adopt the regime's export Guidelines and to restrict the export of
items contained in the regime's Annex. The regime's Guidelines are
implemented through the national export control laws, regulations and
policies of the regime members.

Amendments to the Export Administration Regulations

    This final rule revises the EAR to reflect changes to the MTCR
Annex agreed to at the September and October 2014 Plenary in Oslo,
Norway and pursuant to the 2014 Technical Experts Meeting in Prague,
Czech Republic. Corresponding MTCR Annex references are provided below
for the MTCR Annex changes agreed to at the meetings. This rule also
makes three conforming changes to correlate the Commerce Control List
(CCL) (Supplement No. 1 to Part 774 of the EAR) with the current MTCR
Annex. These conforming changes are made to better align the MT
controls on the CCL with the MTCR Annex. In the explanation below for
the revisions made in this rule, BIS identifies these changes as
follows: ``Oslo 2014 Plenary,'' ``Prague 2014 TEM,'' and ``CCL
Conforming Change to MTCR Annex'' to assist the public in understanding
the origin of each change included in this final rule.
    Specifically, the following six ECCNs are affected by the changes
set forth in this final rule:
    ECCN 1C111. This final rule amends ECCN 1C111 by revising paragraph
a.1 in the List of Items Controlled section to correct an omission
error in the ISO standard referenced in order to reference the proper
standard. Specifically, this final rule adds a dash and the number one
``-1'' after the number 2591, so the ISO standard correctly reads ``ISO
2591-1:1988.'' (MTCR Annex Change, Category II: Item 4.C.2.c., Prague
2014 TEM). This change is not expected to have any impact on the number
of license applications received by BIS.
    ECCN 1C111. This final rule also amends ECCN 1C111 by revising the
Technical Note to paragraph b.5 and paragraphs d.7, d.14 and d.18 in
the List of Items Controlled section to add CAS (Chemical Abstracts
Service) Numbers. CAS Numbers are a numerical identifier assigned by
the Chemical Abstracts Service (CAS) to every chemical substance
described in the open scientific literature, including organic and
inorganic compounds, minerals, isotopes and alloys. The inclusion of
CAS Numbers will make it easier to identify the materials controlled
under these ``items'' paragraphs of 1C111. Specifically, this final
rule revises the Technical Note to paragraph b.5 to add the CAS Number
``(CAS 110-63-4)'' after the material ``poly 1,4-Butanediol'' and the
CAS Number ``(CAS 25322-68-3)'' after the material ``polyethylene
glycol (PEG).'' (MTCR Annex Change, Category II: Item 4.C.5.g., Oslo
2014 Plenary). This final rule revises paragraph d.7 to add the CAS
Number ``(CAS 5164-11-4)'' after ``N,N diallylhydrazine.'' (MTCR Annex
Change, Category II: Item 4.C.2.b.6., Oslo 2014 Plenary). This final
rule revises paragraph d.14 to add the CAS Number ``(CAS 13464-98-7)''
after the material ``Hydrazinium dinitrate.'' (MTCR Annex Change,
Category II: Item 4.C.2.b.13., Oslo 2014 Plenary). Lastly, this final
rule revises paragraph d.18 to add the CAS Number ``(CAS 29674-96-2)''
after the material ``Methylhydrazine nitrate (MHN).'' (MTCR Annex
Change, Category II: Item 4.C.2.b.18., Oslo 2014 Plenary). These
changes are not expected to have any impact on the number of license
applications received by BIS.
    ECCN 3A101. This final rule revises paragraph a.2.a to remove
paragraph a.2.a.1 and revises paragraph a.2.b to remove paragraph
a.2.b.1 in the List of Items Controlled section because the
quantization requirement was removed in the MTCR Annex. This final rule
also redesignates paragraph a.2.a.2 as new paragraph a.2.a.1, and
paragraph a.2.a.3 as new paragraph a.2.a.2 as a conforming change to
the removal of items paragraph a.2.a.1. This final rule also
redesignates paragraph a.2.b.2 as new paragraph a.2.b.1 and paragraph
a.2.b.3 as new paragraph a.2.b.2 as a conforming change to the removal
of paragraph a.2.b.1. (MTCR Annex Change, Category II: Item 14.A.1.,

Prague 2014 TEM). Paragraphs a.2.a and a.2.b are being revised to
correspond with advances in technology. MTCR partners agreed it was no
longer necessary to specify that the analogue-to-digital converters
have an 8 bit quantization, as most microcircuits will have this
capability. Those at 8 bits or above will remain controlled by ECCN
3A001.a.5.a., while the revised 3A101.a will cover those less than 8-
bits. Although this change expands the scope of the 3A101, this change
is not expected to have any impact on the number of license
applications received by BIS because very few microcircuits are
currently classified under this ECCN.
    ECCN 9A106. This final rule revises paragraph d and the Note to
paragraph d in the List of Items Controlled section. (MTCR Annex
Change, Category II: Item 3.A.5., Oslo 2014 Plenary). This final rule
revises ``items'' paragraph d by removing the term ``and'' and then
adding the phrase ``and gel'' before the term ``propellant.'' Paragraph
d, as a result of this change, will now control liquid, slurry and gel
propellant control systems. These changes to paragraph d are being made
to better control the components of propellant control systems, as well
as to clarify how the parameters are applied in the context of 9A106.
The term ``gel'' needs to be added to the control parameter of 9A106.d
because gel is not technically a slurry. Therefore, in order to ensure
that all of the intended propellant control systems are adequately
described under this paragraph d, the term ``gel'' needs to be added.
    Also in ECCN 9A106, this final rule revises the Note to paragraph d
to delete the term ``and'' in the introductory text and to add the
phrase ``and gas turbines'' after the term ``pumps'' to clarify only
servo valves, pumps and gas turbines that are specified under
paragraphs a, b or c are classified under 9A106.d. In addition, this
final rule clarifies the scope of the Note to paragraph d by adding the
phrase ``at the maximum operating mode'' after the control parameter
8,000 rpm to add greater specificity for how to apply this control
parameter. Lastly, this final rule adds a new paragraph c to the Note
to paragraph d to specify that gas turbines, for liquid propellant
turbopumps, with shaft speeds equal to or greater than 8,000 rpm at the
maximum operating mode are also controlled under 9A106.d. The changes
will result in an expansion of the control parameter, so this change is
expected to result in an increase of 1-2 applications received annually
by BIS.
    ECCN 9A110. This final rule revises the heading of ECCN 9A110.
(Category II: Item 6.A.1., CCL Conforming Change to MTCR Annex). Prior
to publication of this final rule, the heading of 9A110 included
references to several ECCNs that are ``subject to the ITAR'' that
themselves refer to the USML. The heading structure of 9A110 was
slightly convoluted and difficult to understand. Therefore, this final
rule revises the heading of 9A110 to make the control parameter simpler
and clearer. The revisions do not change the scope of control of 9A110.
These revisions to the heading of 9A110, and the additions of 9A604.f
and 9A610.t described below, will better reflect the control text of
the MTCR Annex with the added benefits of being simpler and easier to
understand, in particular for where composite materials for commercial
UAVs (under 9A110) are classified on the CCL and where composite
materials for military UAVs (under 9A604.f and 9A610.t) are classified
on the CCL. This change to 9A110 is not expected to have any impact on
the number of license applications received by BIS.
    ECCN 9A604. This final rule adds a new paragraph .f in the List of
Items Controlled section. (Category II: Item 6.A.1., CCL Conforming
Change to MTCR Annex). Paragraph f will control composite structures,
laminates and manufactures thereof ``specially designed'' for the items
controlled under USML Category IV that are specified in paragraphs f.1-
f.7. Such commodities previously were classified under ECCN 9A604.x.
This final rule adds a new paragraph f to allow a clearer
identification of these commodities and for the designation of MT
license requirements. This final rule also revises the ``MT'' control
in the Reason for Control paragraph in the License Requirements section
to add 9A604.f to the MT control. This addition of 9A604.f is made for
consistency with the MTCR Annex. Those composite structures, laminates
and manufactures thereof ``specially designed'' for items controlled
under USML IV but that do not meet the MTCR thresholds remain
controlled under 9A604.x. This change is not expected to have any
impact on the number of license applications received by BIS.
    ECCN 9A610. This final rule adds a new paragraph t in the List of
Items Controlled section. (Category II: Item 6.A.1., CCL Conforming
Change to MTCR Annex). Paragraph t will control composite structures,
laminates and manufacturers thereof ``specially designed'' for unmanned
aerial vehicles controlled under USML Category VIII(a) with a range
equal to or greater than 300 km. Such commodities previously were
classified under ECCNs 9A610.x. This final rule adds new paragraph t to
allow a clearer identification of these commodities and also for
consistency with the MTCR Annex. This final rule also makes two
conforming changes in the Reason for Control paragraph in the License
Requirements section. First, this final rule revises the ``NS'' control
in the Reason for Control paragraph in the License Requirements section
to add the new 9A610.t to the list of 9A610 commodities that are not
subject to the ``NS'' control. Second, this final rule revises the
``MT'' control in the Reason for Control paragraph in the License
Requirements section to add 9A610.t to the MT control. Lastly, this
final rule revises the Related Control in the List of Items Controlled
section to remove Related Controls paragraph (2) because it is no
longer needed due to the revisions made to 9A110, 9A604 and 9A610. BIS
evaluated whether adding a Related Controls reference in 9A110 to
9A604.f and 9A610.t would be helpful, but decided it was not needed
because the CCL Order of Review in Supplement No. 4 to part 774 already
directs persons to review the 9x515 and ``600 series'' ECCNs prior to
reviewing other ECCNs on the CCL. This change is not expected to have
any impact on the number of license applications received by BIS.

Savings Clause

    Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or enroute aboard a carrier
to a port of export or reexport, on April 7, 2015, pursuant to actual
orders for export or reexport to a foreign destination, may proceed to
that destination under the previous eligibility for a License Exception
or export or reexport without a license (NLR) so long as they are
exported or reexported before May 7, 2015. Any such items not actually
exported or reexported before midnight, on May 7, 2015, require a
license in accordance with this rule.

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of
August 7, 2014, 79 FR 46959 (August 11, 2014),

has continued the Export Administration Regulations in effect under the
International Emergency Economic Powers Act. BIS continues to carry out
the provisions of the Export Administration Act, as appropriate and to
the extent permitted by law, pursuant to Executive Order 13222.

Regulatory Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been determined to be significant for
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person may be
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license applications and carries a burden estimate of
43.8 minutes for a manual or electronic submission. Total burden hours
associated with the PRA and OMB control number 0694-0088 are expected
to increase slightly as a result of this rule. You may send comments
regarding the collection of information associated with this rule,
including suggestions for reducing the burden, to Jasmeet K. Seehra,
Office of Management and Budget (OMB), by email to
<EMAIL_ADDRESS>or by fax to<PHONE_NUMBER>.
    3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military and foreign affairs
function of the United States (5 U.S.C. 553(a)(1)). Immediate
implementation of these amendments fulfills the United States'
international commitments to the MTCR. The MTCR contributes to
international peace and security by promoting greater responsibility in
transfers of missile technology items that could make a contribution to
delivery systems (other than manned aircraft) for weapons of mass
destruction. The MTCR consists of 34 member countries that act on a
consensus basis and the changes set forth in this rule implement
agreements reached by MTCR member countries at the September and
October 2014 Plenary in Oslo, Norway and at the 2014 Technical Experts
Meeting in Prague, Czech Republic Since the United States is a
significant exporter of the items in this rule, implementation of this
provision is necessary for the MTCR to achieve its purpose. Moreover,
it is in the public interest to waive the notice and comment
requirements, as any delay in implementing this rule will disrupt the
movement of affected items globally because of disharmony between
export control measures implemented by MTCR members. Export controls
work best when all countries implement the same export controls in a
timely manner. If this rulemaking were delayed to allow for notice and
comment and a 30 day delay in effectiveness, it would prevent the
United States from fulfilling its commitment to the MTCR in a timely
manner, would injure the credibility of the United States in this and
other multilateral regimes, and may impair the international
communities' ability to effectively control the export of certain
potentially national- and international-security-threatening materials.
    Further, no other law requires that a notice of proposed rulemaking
and an opportunity for public comment be given for this final rule.
Because a notice of proposed rulemaking and an opportunity for public
comment are not required to be given for this rule under the
Administrative Procedure Act or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Therefore, this regulation is issued in final form.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.
    Accordingly, part 774 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:

PART 774--[AMENDED]

0
1. The authority citation for 15 CFR part 774 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014).

0
2. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1C111 is amended:
0
a. By revising the introductory text of ``items'' paragraph a.1 in the
List of Items Controlled section;
0
b. By revising the Technical Note to ``items'' paragraph b.5 in the
List of Items Controlled section; and
0
c. By revising ``items'' paragraphs d.7, d.14, and d.18 in the List of
Items Controlled section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

1C111 Propellants and Constituent Chemicals for Propellants, Other Than
Those Specified in 1C011, as Follows (See List of Items Controlled).

* * * * *

List of Items Controlled

* * * * *
    Items:
    a. * * *
    a.1. Spherical or spheroidal aluminum powder (C.A.S. 7429-90-5) in
particle size of less than 200 x 10-\6\ m (200 [micro]m) and
an aluminum content of 97% by weight or more, if at least 10 percent of
the total weight is made up of particles of less than 63 [micro]m,
according to ISO 2591-1:1988 or national equivalents.
* * * * *
    b. * * *
* * * * *
    b.5. * * *

    Technical Note:  Polytetrahydrofuran polyethylene glycol (TPEG)
is a block copolymer of poly 1,4-Butanediol (CAS 110-63-4) and
polyethylene glycol (PEG) (CAS 25322-68-3).

* * * * *
    d. * * *
* * * * *
    d.7. N,N diallylhydrazine (CAS 5164-11-4);
* * * * *
    d.14. Hydrazinium dinitrate (CAS 13464-98-7);
* * * * *

    d.18. Methylhydrazine nitrate (MHN) (CAS 29674-96-2);
* * * * *

0
3. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3--Electronics, Export Control Classification Number (ECCN)
3A101 is amended by revising ``items'' paragraphs a.2.a and a.2.b in
the List of Items Controlled section to read as follows:

3A101 Electronic Equipment, Devices, ``Parts'' and ``Components,''
Other Than Those Controlled by 3A001, as Follows (See List of Items
Controlled).

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    a. * * *
    a.2.a. Analog-to-digital converter microcircuits which are
radiation-hardened or have all of the following characteristics:
    a.2.a.1. Rated for operation in the temperature range from below -
54[deg]C to above +125[deg]C; and
    a.2.a.2. Hermetically sealed; or
    a.2.b. Electrical input type analog-to-digital converter printed
circuit boards or modules, having all of the following characteristics:
    a.2.b.1. Rated for operation in the temperature range from below -
45[deg]C to above +80[deg]C; and
    a.2.b.2. Incorporating microcircuits identified in 3A101.a.2 .a;
* * * * *

0
4. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A106 is amended by revising ``items'' paragraph d,
including the Note to paragraph d, in the List of Items Controlled
section to read as follows:

9A106 Systems, ``Parts'' or ``Components,'' Other Than Those Controlled
by 9A006, Usable in ``Missiles'', and ``Specially Designed'' for Liquid
Rocket Propulsion Systems, as Follows (See List of Items Controlled).

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    d. Liquid, slurry and gel propellant (including oxidizers) control
systems, and ``specially designed'' ``parts'' and ``components''
therefor, designed or modified to operate in vibration environments
greater than 10 g rms between 20 Hz and 2000 Hz.

    Note: The only servo valves, pumps and gas turbines controlled
by 9A106.d, are the following:
    a. Servo valves designed for flow rates equal to or greater than
24 liters per minute, at an absolute pressure equal to or greater
than 7 MPa, that have an actuator response time of less than 100 ms;
    b. Pumps, for liquid propellants, with shaft speeds equal to or
greater than 8,000 rpm at the maximum operating mode or with
discharge pressures equal to or greater than 7 Mpa; or
    c. Gas turbines, for liquid propellant turbopumps, with shaft
speeds equal to or greater than 8,000 rpm at the maximum operating
mode.

* * * * *

0
5. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A110 is amended:
0
a. By revising the heading; and
0
b. By revising the Related Controls paragraph in the List of Items
Controlled section to read as follows:

9A110 Composite Structures, Laminates and Manufactures Thereof
``Specially Designed'' for 9A012 Items That are Controlled for MT
Reasons.

* * * * *

List of Items Controlled

    Related Controls: See also 1A002.
* * * * *

0
6. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A604 is amended:
0
a. By revising the third entry in the License Requirements table; and
0
b. By adding items paragraph f. to the List of Items Controlled section
to read as follows:

9A604 Commodities Related to Launch Vehicles, Missiles, and Rockets
(See List of Items Controlled).

License Requirements

    Reason for Control: * * *

------------------------------------------------------------------------
                                         Country chart  (see Supp. No. 1
               Control(s)                          to part 738)
------------------------------------------------------------------------

                                * * * * *
MT applies to 9A604.a, .c, .d, and .f..  MT Column 1.

                                * * * * *...............................
------------------------------------------------------------------------

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    f. Composite structures, laminates and manufactures thereof
``specially designed'' for the following items controlled under USML
Category IV:
    f.1. Systems capable of a range equal to or greater than 300 km;
    f.2. Individual rocket stages usable in 9A604.f.1. systems;
    f.3. Solid propellant rocket motors or hybrid rocket motors having
a total impulse capacity equal to or greater than 8.41 x 10\5\ Ns; or
    f.4. Liquid propellant rocket engines integrated, or designed or
modified to be integrated, into a liquid propellant propulsion system
which has a total impulse capacity equal to or greater than 8.41 x
10\5\ Ns.
    f.5. Thrust vector control systems usable in rockets, space launch
vehicles (SLVs), and missiles capable of delivering at least a 500 kg
payload to a range of at least 300 km.
    f.6. Re-entry vehicles or warhead heat shields usable in rockets,
SLVs, and missiles capable of delivering at least a 500 kg payload to a
range of at least 300 km.
    f.7. Safing, arming, fuzing, and firing components usable in
rockets, SLVs, and missiles capable of delivering at least a 500 kg
payload to a range of at least 300 km.
* * * * *

0
7. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A610 is amended:
0
a. By revising the first and third entries in the License Requirements
table; and
0
b. By adding ``items'' paragraph t to the List of Items Controlled
section to read as follows:

9A610 Military Aircraft and Related Commodities, Other Than Those
Enumerated in 9A991.a (See List of Items Controlled).

License Requirements

    Reason for Control: * * *

------------------------------------------------------------------------
                                         Country chart  (see Supp. No. 1
               Control(s)                          to part 738)
------------------------------------------------------------------------
NS applies to entire entry except        NS Column 1.
 9A610.t, .u, .v, .w, and .y.

                                * * * * *
MT applies to 9A610.t, .u, .v, and .w..  MT Column 1.

                                * * * * *
------------------------------------------------------------------------

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    t. Composite structures, laminates and manufactures thereof
``specially designed'' for unmanned aerial vehicles controlled under
USML Category VIII(a) with a range equal to or greater than 300 km.
* * * * *

     Dated: April 1, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-07872 Filed 4-6-15; 8:45 am]
BILLING CODE CODE 3510-33-P