[Federal Register Volume 81, Number 22 (Wednesday, February 3, 2016)]
[Notices]
[Pages 5802-5803]
[FR Doc No: 2016-01928]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76992; File No. SR-NYSEMKT-2016-10]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Change Modifying the NYSE Amex
Options Fee Schedule To Add an Early Adopter Specialist Credit

January 28, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on January 20, 2016, NYSE MKT LLC (the ``Exchange'' or
``NYSE MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange proposes to modify the NYSE Amex Options Fee Schedule
(``Fee Schedule''). The Exchange proposes to implement the fee change
effective February 1, 2016. The proposed change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The purpose of this filing is to implement a monthly credit
available to Specialists to promote trading in Binary Return
Derivatives (``ByRDs''),\4\ which is a new product that the Exchange
anticipates launching in February 2016.
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    \4\ See Securities Exchange Act Release No. 56251 (August 14,
2007), 72 FR 46523 (August 20, 2007) (SR-Amex-2004-27) (Order
approving listing of Fixed Return Options (``FROs'')); see also
Securities Exchange Act Release No. 71957 (April 16, 2014), 79 FR
22563 (April 22, 2014) (SR-NYSEMKT-2014-06) (Order approving name
change from FROs to Binary Return Derivatives (ByRDs) and re-launch
of these products, with certain modification, and amending Obvious
Errors rules to include ByRDs). ByRDs are European-style option
contracts on individual stocks, exchange-traded funds and Index-
Linked Securities that have a fixed return in cash based on a set
strike price; satisfy specified listing criteria; and may only be
exercised at expiration pursuant to the Rules of the Options
Clearing Corporation. See, e.g., NYSE MKT Rule 900ByRDs.
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    To encourage trading of ByRDs, the Exchange proposes to offer an
incentive to Specialists appointed to trade ByRDs.\5\ Specialists that
are appointed in ByRDs and eligible for the incentive payment would be
known on the Exchange's Fee Schedule as ``Early Adopter Specialists.''
Specifically, effective February 1, 2016, the Exchange proposes to
offer each ``Early Adopter Specialist'' a monthly credit of $335 for
each class of ByRDs for which that Specialist is appointed, which the
Exchange believes would provide a competitive incentive to Specialists
based on market conditions and competing interests for technology.\6\
The Exchange believes the proposed incentive payment would further the
Exchange's goal of introducing new products to the marketplace by
encouraging Specialists to make a market for these products.
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    \5\ Each Specialist must be registered with the Exchange as a
Market Maker and is thus subject to the quoting requirements imposed
on Market Makers. See, e.g., Rules 920NY, 925.1NY(b) and 927NY.
    \6\ See proposed Section I.H. of the Fee Schedule, which was
previously Reserved.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed monthly credit is
reasonable, equitable and not unfairly discriminatory for the following
reasons. First, the proposed credit would generate additional order
flow to the Exchange by creating incentives to quote and trade ByRDs
options, which would benefit all market participants even those not
eligible to receive the credit. The Exchange believes it is appropriate
to offer the credit to Specialists (and not to other types of Market
Makers) as the Specialists are subject to heightened continuous quoting
obligations, which exceed those imposed on other Market Makers.\9\ The
Exchange believes the proposed credit would recognize the contributions
of each Early Adopter Specialist to the trading environment on the
Exchange and is designed to attract Specialists willing to seek
appointments in and, thus provide continuous quotes in, ByRDs options,
which increase in the availability of ByRDs options would benefit all
market participants.
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    \9\ See supra n. 5.
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    In addition, the Exchange has evaluated the market conditions,
including the technology needs of Specialists appointed to options on
ByRDs and believes the proposed monthly credit of $335 is reasonable,
equitable and not unfairly discriminatory.\10\ The Exchange notes that
offering market participants incentives to trade in certain newly
offered products is not new of novel.\11\
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    \10\ In determining the $335 fee, the Exchange considered
factors such as systems upgrades and additional data feeds that may
be necessary to act as a Specialist in ByRDS.
    \11\ See Exchange Act Release No. 34-60536 (August 19, 2009), 74
FR 43204 (August 26, 2009) (SR-ISE-2009-59).
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    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\12\ the Exchange
does not believe that the proposed rule change will impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes the proposed incentive
is pro-competitive as it would further the Exchange's goal of

introducing new products to the marketplace and encouraging Specialists
to make a market in these products, which would in turn, benefit market
participants.
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    \12\ 15 U.S.C. 78f(b)(8).
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    To the extent that there is an additional competitive burden on
market participants that are not eligible for the credit (i.e., non-
Specialists), the Exchange believes that this is appropriate because
the proposal would incent Specialists to quote and trade in options on
ByRDs which would enhance the quality of the Exchange's markets and
increases the volume of contracts traded here. To the extent that this
purpose is achieved, all of the Exchange's market participants should
benefit from the improved market liquidity. Enhanced market quality and
increased transaction volume that results from the anticipated increase
in order flow directed to the Exchange will benefit all market
participants and improve competition on the Exchange. Moreover, the
Exchange believes it is appropriate to offer the credit to Specialists
(and not to other types of Market Makers) as Specialists are subject to
heightened continuous quoting obligations that exceed those required of
other Market Makers.\13\
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    \13\ See supra n. 5.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

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

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \16\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEMKT-2016-10 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEMKT-2016-10. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEMKT-2016-10, and should
be submitted on or before February 24, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-01928 Filed 2-2-16; 8:45 am]
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[Federal Register Volume 78, Number 20 (Wednesday, January 30, 2013)]
[Rules and Regulations]
[Pages 6198-6200]
[FR Doc No: 2013-01939]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2012-0699; Special Conditions No. 25-474-SC]

Special Conditions: Airbus, Model A318-112 Airplane (S/N 3238);
Certification of Cooktops

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions.

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SUMMARY: These special conditions are issued for the Airbus Model A318-
112 airplane, serial number (S/N) 3238. This airplane, as modified by
Fokker Services B.V., will have a novel or unusual design feature
associated with a cooktop installation. The applicable airworthiness
regulations do not contain adequate or appropriate safety standards for
this design feature. These 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: Effective Date: January 24, 2013.

FOR FURTHER INFORMATION CONTACT: Dan Jacquet, FAA, Airframe and Cabin
Safety Branch, ANM-115, Transport Airplane Directorate, Aircraft
Certification Service, 1601 Lind Avenue SW., Renton, Washington 98057-
3356; telephone<PHONE_NUMBER>; facsimile<PHONE_NUMBER>; email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    On January 12, 2010, Fokker Services B.V. applied for a
supplemental type certificate for an interior conversion on an Airbus
Model A318-112 airplane, S/N 3238. The Airbus Model A318-112 airplane
is a large, transport-category airplane powered by two CFM56-5B9/P
engines, with a basic maximum takeoff weight of 130,071 pounds.
    At the time of the notice of proposed special conditions No. 25-12-
02-SC, Fokker Services B.V. requested certification to convert an
Airbus Model A318-112 (S/N 3238) to a corporate jet, operating for both
common carriage and private use. As of this publication, Fokker
Services B.V. requested certification for common carriage only. The
aircraft will now be certified for a maximum of 8 crew and 19
passengers and limited to common carriage only. The aircraft will be
subdivided into an entrance way, executive lounge, two private lounges,
and a private bathroom. The entry will include the installation of two
wet galleys. One of the galleys will include the installation of two
combined cooktop pan units. The addition of a cooktop to this interior
conversion can lead to hazards to both the occupants and the aircraft.
Special consideration is needed to address the safety standards
associated with this installation.

Type Certification Basis

    Under the provisions of Title 14, Code of Federal Regulations (14
CFR) 21.101, Fokker Services B.V. must show that the Airbus Model A318-
112 (S/N 3238) airplane, as changed, continues to meet the applicable
provisions of the regulations incorporated by reference in Type
Certificate No. A28NM or the applicable regulations in effect on the
date of application for the change. The regulations incorporated by
reference in the type certificate are commonly referred to as the
``original type certification basis.'' The regulations incorporated by
reference in Type Certificate No. A28NM are 14 CFR part 25, as amended
by Amendments 25-1 through 25-56, with reversions to earlier
amendments, voluntary compliance to later amendments, special
conditions, equivalent safety findings, and exemptions listed in the
type certificate data sheet.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Airbus Model A318-112 (S/N 3238)
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 applicant apply for a supplemental type
certificate to modify any other model included on the same type
certificate to incorporate the same 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 Airbus Model A318-112 (S/N 3238) must comply with the
fuel vent and exhaust emission requirements of 14 CFR part 34 and the
noise certification requirements of 14 CFR part 36.
    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.  21.101.

Novel or Unusual Design Features

    The Airbus Model A318-112 airplane, S/N 3238, will incorporate the
following novel or unusual design feature: Cooktops in the passenger
cabin. Cooktops introduce high heat, smoke, and the possibility of fire
into the passenger cabin environment. The current airworthiness
standards of part 25 do not contain adequate or appropriate safety
standards to protect the airplane and its occupants from these
potential hazards. The applicant's proposed system is considered to be
a novel or unusual design feature.

Discussion

    Currently, ovens are the prevailing means of heating food on
airplanes. Ovens are characterized by an enclosure that contains both
the heat source and the food being heated. The hazards presented by
ovens are thus inherently limited and are well understood through years
of service experience. Cooktops, on the other hand, are characterized
by exposed heat sources and the presence of relatively unrestrained hot
cookware and heated food. These may represent unprecedented hazards to
both the occupants and the airplane.
    Cooktops could have serious passenger and aircraft safety
implications if appropriate requirements are not established for their
installation and use. The requirements identified in these proposed
special conditions are in addition to those considerations identified
in Advisory Circular (AC) 20-168, Certification Guidance for
Installation of Non-Essential, Non-Required Aircraft Cabin Systems and
Equipment (CS&E), and those in AC 25-17A, Transport Airplane Cabin
Interiors Crashworthiness Handbook. The intent of these proposed
special conditions is to provide a level of safety that is consistent
with that on similar aircraft without cooktops.
    In similar cooktop installations, the FAA has required a deployable
cover and a means to automatically shut off the power when the cover
was in use. In lieu of these requirements, the cooktop installation in
this Airbus A318-112 (S/N 3238) will have a lid and a timer that is not
covered by the lid. The timer switches the heating elements on and off,
has a maximum time of 20 minutes, and is still accessible when the lid
is closed. The

cabin crew will be instructed on its use. In addition to the lid and
timer, the applicant will supply a fire blanket that is 1,100 by 1,100
mm (catalogue no. SAP-967-T). The fire blanket meets the requirements
of British Standard BS 6575:1965. These specifications contain the
requirements for flexibility, heat, electrical resistance, and fire
extinguishing including cooking oil fires for light duty and heavy duty
(industrial) applications.
    For this cooktop installation, the FAA requires evidence that with
the cooktop lid closed, the temperature set on ``high,'' and the timer
at maximum, the cooktop will maintain safe operation and will not
create a hazardous condition even with cooking oil in the cooktop.

Discussion of Comments

    Notice of proposed special conditions No. 25-12-02-SC for the
Airbus Model A318-112 airplane (S/N 3238) was published in the Federal
Register on August 28, 2012 (77 FR 51944-51946). No comments were
received, and the special conditions are adopted as proposed.

Applicability

    As discussed above, these special conditions are applicable to the
Airbus Model A318-112 (S/N 3238). Should Fokker Services B.V. apply at
a later date for a supplemental type certificate to modify any other
model included on Type Certificate No. A28NM to incorporate the same
novel or unusual design feature, these special conditions would apply
to that model as well.
    Under standard practice, the effective date of final special
conditions would be 30 days after the date of publication in the
Federal Register; however, as the certification date for the Airbus
Model A318-112 airplane (S/N 3238) is imminent, the FAA finds that good
cause exists to make these special conditions effective upon issuance.

Conclusion

    This action affects only certain novel or unusual design features
on one model of airplane. It is not a rule of general applicability and
affects only the applicant who applied to the FAA for approval of these
features on the airplane.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

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

The Special Conditions

    Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for the Airbus Model A318-112 airplane,
serial number 3238, modified by Fokker Services B.V.
    Cooktop installations with electrically powered burners must comply
with the following criteria:
    1. Means, such as conspicuous burner-on indicators, physical
barriers, or handholds, must be installed to minimize the potential for
inadvertent personnel contact with hot surfaces of both the cooktop and
cookware. Conditions of turbulence must be considered.
    2. Sufficient design means must be included to restrain cookware
while in place on the cooktop, as well as representative contents,
e.g., soup, sauces, etc., from the effects of flight loads and
turbulence. Restraints must be provided to preclude hazardous movement
of cookware and contents. These restraints must accommodate any
cookware that is identified for use with the cooktop. Restraints must
be designed to be easily utilized and effective in service. The
cookware restraint system should also be designed so that it will not
be easily disabled, thus rendering it unusable. Placarding must be
installed which prohibits the use of cookware that cannot be
accommodated by the restraint system.
    3. Placarding must be installed that prohibits the use of cooktops
(i.e., power on any burner) during taxi, takeoff, and landing.
    4. Means must be provided to address the possibility of a fire
occurring on or in the immediate vicinity of the cooktop. Two
acceptable means of complying with this requirement are as follows:
    a. Placarding must be installed that prohibits any burner from
being powered when the cooktop is unattended, which would prohibit a
single person from cooking on the cooktop and intermittently serving
food to passengers while any burner is powered; a fire detector must be
installed in the vicinity of the cooktop that provides an audible
warning in the passenger cabin; and a fire extinguisher of appropriate
size and extinguishing agent must be installed in the immediate
vicinity of the cooktop. Access to the extinguisher must not be blocked
by a fire on or around the cooktop. One of the fire extinguishers
required by Sec.  25.851 may be used to satisfy this requirement. If
this is not possible, then the extinguisher in the galley area would be
additional; or,
    b. An automatic, thermally activated, fire-suppression system must
be installed to extinguish a fire at the cooktop and immediately
adjacent surfaces. The agent used in the system must be an approved,
total-flooding agent suitable for use in an occupied area. The fire-
suppression system must have a manual override. The automatic
activation of the fire-suppression system must also automatically shut
off power to the cooktop.
    5. The surfaces of the galley surrounding the cooktop, which would
be exposed to a fire on the cooktop surface or in cookware on the
cooktop, must be constructed of materials that comply with the
flammability requirements of 14 CFR part 25, appendix F, part III. This
requirement is in addition to the flammability requirements typically
required of the materials in these galley surfaces. During the
selection of these materials, consideration must also be given to
ensure that the flammability characteristics of the materials will not
be adversely affected by the use of cleaning agents and utensils used
to remove cooking stains.
    6. The cooktop ventilation system ducting must be protected by a
flame arrestor. In addition, procedures and time intervals must be
established and included in the instructions for continued
airworthiness to inspect and clean or replace the ventilation system to
prevent a fire hazard from the accumulation of flammable oils. [Note:
The applicant may find additional useful information in the Society of
Automotive Engineers, Aerospace Recommended Practice 85, Rev. E,
entitled, ``Air Conditioning Systems for Subsonic Airplanes,'' dated
August 1, 1991.]
    7. Means must be provided to contain spilled foods or fluids in a
manner that prevents the creation of a slipping hazard to occupants,
and that will not lead to the loss of structural strength due to
corrosion.
    8. Cooktop installations must provide adequate space for the user
to immediately escape a hazardous cooktop condition.
    9. A means to shut off power to the cooktop must be provided at the
galley containing the cooktop and in the cockpit. If additional
switches are introduced in the cockpit, revisions to smoke or fire
emergency procedures of the airplane flight manual (AFM) will be
required.
    10. Cooktop installations must incorporate a timer that will switch
the

heating elements off after a maximum time of 20 minutes.
    11. Instructions for the cabin crew to ensure safe operation of the
cooktop lid and timer must be provided.
    12. Evidence must be provided that with the cooktop lid closed, the
temperature set on ``high,'' and the timer at maximum, the cooktop will
maintain safe operation and will not create a hazardous condition even
with cooking oil in the cooktop.

    Issued in Renton, Washington, on January 24, 2013.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2013-01939 Filed 1-29-13; 8:45 am]
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