[Federal Register: May 14, 2008 (Volume 73, Number 94)]
[Notices]
[Page 27874-27878]
[DOCID:fr14my08-113]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57800; File No. SR-NASDAQ-2008-039]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto
Relating to the Listing and Trading of Managed Fund Shares

May 8, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 30, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. On May 7, 2008, the Exchange filed Amendment No. 1 to the
proposed rule change. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to adopt new Nasdaq Rule 4420(o) to list and
trade, or trade pursuant to unlisted trading privileges (``UTP''),
securities issued by actively managed, open-end investment management
companies (``Managed Fund Shares'') and to amend certain other Nasdaq
rules to incorporate references to Managed Fund Shares. The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.nasdaq.com.

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 Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed

any comments it received on the proposed rule change. The text of these
statements may be examined at the places specified in Item IV below.
The Exchange has prepared summaries, set forth in sections A, B, and C
below, of the most significant aspects of such statements.

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

1. Purpose
    The Exchange proposes to add new Nasdaq Rule 4420(o) to permit the
listing and trading, or trading pursuant to UTP, of Managed Fund
Shares.\3\ The Exchange also proposes to make conforming changes to the
introductory paragraph of Nasdaq Rule 4420, Nasdaq Rules 4120(a)(9) and
4120(b)(4)(A), which relate to trading halts, and Nasdaq Rule 4540,
which relates to entry and annual fees for issuers, to incorporate
references to Managed Fund Shares.
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    \3\ The Exchange notes that proposed Nasdaq Rule 4420(o) is
substantively identical to NYSE Arca Equities Rule 8.600. See
Securities Exchange Act Release No. 57619 (April 4, 2008), 73 FR
19544 (April 10, 2008) (SR-NYSEArca-2008-25) (approving, among other
things, listing standards for Managed Fund Shares).
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Proposed Listing Rules for Managed Fund Shares
    Proposed Nasdaq Rule 4420(o)(2)(A) provides that Nasdaq will file
separate proposals under section 19(b) of the Act before the listing
and/or trading of Managed Fund Shares. Proposed Nasdaq Rule
4420(o)(2)(B) provides that transactions in Managed Fund Shares will
occur throughout Nasdaq's trading hours.\4\ Proposed Nasdaq Rule
4420(o)(2)(C) provides that the minimum price variation for quoting and
entry of orders in Managed Fund Shares will be $0.01. Proposed Rule
Nasdaq 4420(o)(2)(D) provides that Nasdaq will implement written
surveillance procedures for Managed Fund Shares. Proposed Nasdaq Rule
4420(o)(2)(E) provides that, for Managed Fund Shares based on an
international or global portfolio, the statutory prospectus or the
application for exemption from provisions of the Investment Company Act
of 1940 (``1940 Act'') for such series of Managed Fund Shares must
state that such series must comply with the federal securities laws in
accepting securities for deposits and satisfying redemptions with
redemption securities, including that the securities accepted for
deposits and the securities used to satisfy redemption requests are
sold in transactions that would be exempt from registration under the
Securities Act of 1933.
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    \4\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 7 a.m. to 9:30
a.m; (2) Regular Market Session from 9:30 a.m. to 4 p.m. or 4:15
p.m.; and (3) Post-Market Session from 4 p.m. or 4:15 p.m. to 8
p.m.).
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    Proposed Definitions. Proposed Nasdaq Rule 4420(o)(3)(A) defines
the term ``Managed Fund Share'' as a security that: (1) Represents an
interest in a registered investment company (``Investment Company'')
organized as an open-end management investment company or similar
entity, that invests in a portfolio of securities selected by the
Investment Company's investment adviser consistent with the Investment
Company's investment objectives and policies; (2) is issued in a
specified aggregate minimum number in return for a deposit of a
specified portfolio of securities and/or a cash amount with a value
equal to the next determined net asset value (``NAV''); and (3) when
aggregated in the same specified minimum number, may be redeemed at a
holder's request, which holder will be paid a specified portfolio of
securities and/or cash with a value equal to the next determined NAV.
    In addition, proposed Nasdaq Rule 4420(o)(3)(B) defines the term
``Disclosed Portfolio'' as the identities and quantities of the
securities and other assets held by the Investment Company that will
form the basis for the Investment Company's calculation of NAV at the
end of the business day. Proposed Nasdaq Rule 4420(o)(3)(C) defines the
term ``Intraday Indicative Value'' as the estimated indicative value of
a Managed Fund Share based on current information regarding the value
of the securities and other assets in the Disclosed Portfolio. Proposed
Nasdaq Rule 4420(o)(3)(D) defines the term ``Reporting Authority'' as
Nasdaq, an institution, or a reporting service designated by Nasdaq or
by the exchange that lists a particular series of Managed Fund Shares
(if Nasdaq is trading such series pursuant to UTP) as the official
source for calculating and reporting information relating to such
series, including, but not limited to, the Intraday Indicative Value,
the Disclosed Portfolio, the amount of any cash distribution to holders
of Managed Fund Shares, NAV, or other information relating to the
issuance, redemption, or trading of Managed Fund Shares. A series of
Managed Fund Shares may have more than one Reporting Authority, each
having different functions.
    Initial and Continued Listing. Proposed Nasdaq Rule 4420(o)(4) sets
forth the initial and continued listing criteria applicable to Managed
Fund Shares.\5\ Proposed Nasdaq Rule 4420(o)(4)(A)(i) provides that,
for each series of Managed Fund Shares, Nasdaq will establish a minimum
number of Managed Fund Shares required to be outstanding at the time of
commencement of trading. In addition, under proposed Nasdaq Rule
4420(o)(4)(A)(ii), Nasdaq must obtain a representation from the issuer
of each series of Managed Fund Shares that the NAV per share for such
series will be calculated daily and that the NAV and the Disclosed
Portfolio will be made available to all market participants at the same
time.
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    \5\ The Exchange represents that, for initial and/or continued
listing, Managed Fund Shares must also be in compliance with Rule
10A-3 under the Act. See 17 CFR 240.10A-3. In addition, the Exchange
represents that, with respect to a series of Managed Fund Shares,
the investment adviser and its related personnel are subject to Rule
204A-1 under the Investment Advisers Act of 1940 (``Advisers Act''),
which relates to codes of ethics for investment advisers. See 17 CFR
275.204A-1. Rule 204A-1 requires investment advisers to adopt a code
of ethics that reflects the fiduciary nature of the relationship to
clients as well as compliance with other applicable securities laws.
Accordingly, the Exchange notes that ``firewall'' procedures, as
well as procedures designed to prevent the misuse of non-public
information by an investment adviser, must be consistent with Rule
204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under the
Advisers Act (17 CFR 275.206(4)-7) makes it unlawful for an
investment adviser to provide investment advice to clients, unless
such investment adviser has (i) adopted and implemented written
policies and procedures reasonably designed to prevent violation, by
the investment adviser and its supervised persons, of the Advisers
Act and the rules thereunder; (ii) implemented, at a minimum, an
annual review regarding the adequacy of such policies and procedures
and the effectiveness of their implementation; and (iii) designated
an individual (who is a supervised person) responsible for
administering such policies and procedures. See also Section 204A of
the Advisers Act (15 U.S.C. 80b-4a) (requiring investment advisers
to establish, maintain, and enforce written policies and procedures
reasonably designed to prevent the misuse of material, non-public
information by such investment adviser or any person associated with
such investment adviser). E-mail from Jonathan F. Cayne, Associate
General Counsel, Exchange, to Edward Cho, Special Counsel, Division
of Trading and Markets, Commission, dated May 5, 2008 (confirming
policies and procedures relating to protections against the misuse
of material, non-public information concerning an Investment
Company's portfolio).
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    Proposed Nasdaq Rule 4420(o)(4)(B) provides that each series of
Managed Fund Shares will be listed and traded subject to the
application of the following continued listing criteria: (1) The
Intraday Indicative Value for Managed Fund Shares must be widely
disseminated by one or more major market data vendors at least every 15
seconds during the time when the Managed Fund Shares trade on Nasdaq;
(2) the Disclosed Portfolio must be disseminated at least once daily
and

made available to all market participants at the same time; and (3) the
Reporting Authority that provides the Disclosed Portfolio must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material non-public information
regarding the actual components of the portfolio.
    Proposed Nasdaq Rule 4420(o)(4)(B)(iii) provides that Nasdaq will
consider the suspension of trading in, or removal from listing of, a
series of Managed Fund Shares under any of the following circumstances:
(1) If, following the initial twelve-month period after commencement of
trading on the Exchange of a series of Managed Fund Shares, there are
fewer than 50 beneficial holders of the series of Management Fund
Shares for 30 or more consecutive trading days; (2) if the value of the
Intraday Indicative Value is no longer calculated or available or the
Disclosed Portfolio is not made available to all market participants at
the same time; (3) if the Investment Company issuing the Managed Fund
Shares has failed to file any filings required by the Commission or if
Nasdaq is aware that the Investment Company is not in compliance with
the conditions of any exemptive order or no-action relief granted by
the Commission to the Investment Company with respect to the series of
Managed Fund Shares; or (4) if such other event shall occur or
condition exists which, in the opinion of Nasdaq, makes further
dealings on Nasdaq inadvisable.
    Proposed Nasdaq Rule 4420(o)(4)(B)(iv) provides that, if the
Intraday Indicative Value of a series of Managed Fund Shares is not
being disseminated as required, Nasdaq may halt trading during the day
in which the interruption to the dissemination of the Intraday
Indicative Value occurs. If the interruption to the dissemination of
the Intraday Indicative Value persists past the trading day in which it
occurred, Nasdaq will halt trading no later than the beginning of the
trading day following the interruption. If a series of Managed Fund
Shares is trading on Nasdaq pursuant to UTP, Nasdaq will halt trading
in that series as specified in Nasdaq Rules 4120 and 4121. In addition,
if the Exchange becomes aware that NAV or the Disclosed Portfolio with
respect to a series of Managed Fund Shares is not disseminated to all
market participants at the same time, it will halt trading in such
series until such time as the NAV or the Disclosed Portfolio is
available to all market participants.
    In addition, proposed Nasdaq Rule 4420(o)(4)(B)(v) provides that,
upon termination of an Investment Company, the Managed Fund Shares
issued in connection with such entity must be removed from listing on
Nasdaq. Proposed Nasdaq Rule 4420(o)(4)(B)(vi) provides that voting
rights must be as set forth in the applicable Investment Company
prospectus. Proposed Nasdaq Rule 4420(o)(5) relates to the limitation
of liability of the Exchange in connection with an issuance of a series
of Managed Fund Shares.
    Proposed Nasdaq Rule 4420(o)(6) relates to obligations with respect
to those Managed Fund Shares that receive an exemption from certain
prospectus delivery requirements under section 24(d) of the 1940 Act.
Lastly, proposed Nasdaq Rule 4420(o)(7) provides that, if the
investment adviser of the Investment Company issuing Managed Fund
Shares is affiliated with a broker-dealer, such investment adviser must
erect a ``firewall'' between such investment adviser and broker-dealer
with respect to access to information regarding the composition and/or
changes to the Investment Company's portfolio. This proposed rule also
requires personnel who make decisions on the Investment Company's
portfolio composition to be subject to procedures designed to prevent
the use and dissemination of material, non-public information regarding
the Investment Company's portfolio.
Other Proposed Rule Changes
    The Exchange also proposes to amend: (1) The introductory paragraph
of Nasdaq Rule 4420 to add a reference to new paragraph (o) thereunder;
(2) Nasdaq Rule 4120(a)(9) and Nasdaq Rule 4120(b)(4)(A) to add
references to Managed Fund Shares with respect to trading halts; \6\
and (3) Nasdaq Rule 4540(a) and (b) to add references to Managed Fund
Shares to those securities already covered under the rule relating to
both entry and annual fees.
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    \6\ Nasdaq also seeks to make an unrelated, minor typographical
change to Nasdaq Rule 4120(b)(4)(A) with respect to the term ``Trust
Issued Receipt.''
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Key Features of Managed Fund Shares
    Registered Investment Company. A Managed Fund Share means a
security that represents an interest in an investment company
registered under the 1940 Act organized as an open-end investment
company or similar entity that invests in a portfolio of securities
selected by its investment adviser consistent with its investment
objectives and policies. In contrast, the open-end investment company
that issues securities of an exchange-traded fund seeks to provide
investment results that correspond generally to the price and yield
performance of a specific foreign or domestic stock index, fixed income
securities index, or combination thereof.
    1940 Act Exemptive Relief. The 1940 Act contemplates two categories
of investment companies: (1) Those which issue redeemable securities
(i.e., open-end investment companies); and (2) those which do not issue
redeemable securities (i.e., closed-end investment companies). Index
Fund Shares \7\ and Portfolio Depository Receipts \8\ (collectively,
``Index ETFs'') are redeemable, but only in large blocks of shares, not
individually, so it is not certain whether they would be redeemable
under the 1940 Act. Because Index ETFs do not fit neatly into either
the open-end category or the closed-end category, Index ETFs have had
to seek exemptive relief from the Commission to permit registration as
an open-end investment company. Managed Fund Shares share key
structural features with Index ETFs--creation and redemption in large
blocks of shares being the most important one--that result in the need
for exemptive relief, and therefore, Managed Fund Shares will require
relief from the same provisions of the 1940 Act.
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    \7\ See Nasdaq Rule 4420(j).
    \8\ See Nasdaq Rule 4420(i).
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    Intraday Trading. Like Index ETFs, Managed Fund Shares will be
listed and traded on a national securities exchange, and therefore,
will be available for sale and purchase on an intraday basis, like
other listed securities. In contrast, shares of managed mutual funds
may only be purchased and sold (issued and redeemed) in direct
transactions with the fund, once each day.
    Creations and Redemptions. As with Index ETFs, Managed Fund Shares
will be issued and redeemed on a daily basis at NAV. Also, like Index
ETFs, creations and redemptions for Managed Fund Shares must be in
large specified blocks of shares called ``Creation Units.'' Purchases
and sales of shares in amounts smaller than the number of shares
required for a Creation Unit may be effected only in the secondary
market and not directly with the fund.
    In addition, for most Index ETFs, the creation and redemption
process is effected ``in kind.'' Creation ``in kind'' typically means
that the investor--usually a brokerage house or large institutional
investor--purchases the Creation Unit with a ``Portfolio Deposit''
equal in value to the aggregate NAV of the shares in the Creation Unit.
The Portfolio Deposit generally consists of a

basket of securities that reflects the composition of the Index ETF's
portfolio. Similarly, an investor redeeming shares in the Index ETF
receives in exchange for shares in the Index ETF the securities in the
``Redemption Basket,'' which is usually the same as the Portfolio
Deposit and consists of securities that reflect the composition of the
Index ETF's portfolio.\9\ The Portfolio Deposit often includes a small
cash component to make the value of the deposit or basket exactly equal
to the aggregate NAV. Most Index ETFs also permit cash creations and
redemptions under specified, limited circumstances.
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    \9\ References to the ``Portfolio Deposit'' herein include the
Redemption Basket unless otherwise specified.
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    Managed Fund Shares may use one or more of the following three
approaches to creations and redemptions: (1) ``In kind'' creations and
redemptions using a Portfolio Deposit that reflects the composition of
the fund; (2) cash creations and redemptions; or (3) ``in kind''
creations and redemptions using a Portfolio Deposit consisting of
securities that do not reflect the composition of the fund, but instead
consisting of other securities including, for example, specified Index
ETFs.
    Portfolio Disclosure. One common feature of Index ETFs is
disclosure of the contents of the Portfolio Deposit on a daily basis.
Aside from providing the information required for daily creations and
redemptions, the Portfolio Deposit gives market participants a basis
for estimating the intraday value of the fund and thus, provides a
basis for the arbitrage that keeps the market price of Index ETFs
generally in line with the NAV of the Index ETF. While Managed Fund
Shares may use an in-kind or cash creation and redemption mechanism, as
noted above, each series of Managed Fund Shares will disclose daily the
identities and quantities of the portfolio of securities and other
assets (i.e., the Disclosed Portfolio) held by the applicable fund that
will form the basis for the fund's calculation of NAV at the end of the
business day.
    Intraday Indicative Value.\10\ For each series of Managed Fund
Shares, an estimated value, defined in proposed Nasdaq Rule
4420(o)(3)(C) as the ``Intraday Indicative Value'' that reflects an
estimated intraday value of the fund portfolio, will be disseminated.
The Intraday Indicative Value will be based upon the current value for
the components of the Disclosed Portfolio and will be disseminated by
the Exchange at least every 15 seconds during the regular market
session through the facilities of the Consolidated Tape Association The
dissemination of the Intraday Indicative Value, together with the
Disclosed Portfolio, will allow investors to determine the value of the
underlying portfolio of a series of Managed Fund Shares on a daily
basis and to provide a close estimate of that value throughout the
trading day.
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    \10\ This value of the estimated NAV is for use by investors,
professionals, and persons wishing to create or redeem shares.
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Trading Halts
    Nasdaq will halt trading in Managed Fund Shares under the
conditions specified in Nasdaq Rules 4120 and 4121, as proposed to be
amended, and in proposed Nasdaq Rule 4420(o)(4)(B)(iv), as discussed
above. With respect to trading of Managed Fund Shares pursuant to UTP,
the conditions for a halt include a regulatory halt by the listing
market, and Nasdaq will stop trading Managed Fund Shares if the listing
market delists them. Additionally, Nasdaq may cease trading Managed
Fund Shares if other unusual conditions or circumstances exist which,
in the opinion of Nasdaq, make further dealings on Nasdaq detrimental
to the maintenance of a fair and orderly market.
Trading Rules
    Nasdaq deems Managed Fund Shares to be equity securities, thus
rendering trading in the Managed Fund Shares subject to Nasdaq's
existing rules governing the trading of equity securities. Nasdaq will
allow trading in Managed Fund Shares from 7:00 a.m. until 8:00 p.m.
Eastern Time.\11\
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    \11\ See supra note 4.
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Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products (including exchange-traded
funds) to monitor trading in Managed Fund Shares and represents that
such procedures are adequate to address any concerns regarding the
trading of Managed Fund Shares on Nasdaq. Trading of Managed Fund
Shares on Nasdaq will be subject to surveillance procedures of the
Financial Industry Regulatory Authority (``FINRA'') for equity
securities, in general, and exchange-traded funds, in particular.\12\
The Exchange may also obtain information via the Intermarket
Surveillance Group (``ISG'') from other exchanges who are members or
affiliate members of ISG.
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    \12\ The Exchange states that FINRA surveils trading on Nasdaq
pursuant to a regulatory services agreement. Nasdaq is responsible
for FINRA's performance under this regulatory services agreement.
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Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading Managed Fund Shares. Specifically, the
Information Circular will discuss the following: (1) The procedures for
purchases and redemptions of Managed Fund Shares in Creation Units (and
that Managed Fund Shares are not individually redeemable); (2) Nasdaq
Rule 2310, which imposes suitability obligations on Nasdaq members with
respect to recommending transactions in Managed Fund Shares to
customers; (3) how information regarding the Intraday Indicative Value
is disseminated; (4) the requirement that members deliver a prospectus
to investors purchasing newly issued Managed Fund Shares prior to or
concurrently with the confirmation of a transaction; (5) the risks
involved in trading Managed Fund Shares during the Pre-Market and Post-
Market Sessions when an updated Intraday Indicative Fund value will not
be calculated or publicly disseminated; (6) any exemptive, no-action,
or interpretive relief granted by the Commission from any rules under
the Act; (7) related fees and expenses; (8) trading hours of the
Managed Fund Shares; (9) NAV calculation and dissemination; and (10)
trading information.
    The Exchange notes that investors purchasing Managed Fund Shares
directly from a Fund will receive a prospectus. Members purchasing
Managed Fund Shares from a Fund for resale to investors will deliver a
prospectus to such investors.
2. Statutory Basis

    The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\13\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\14\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
The Exchange believes that the proposed rules will facilitate the
listing and trading of additional types of exchange-traded products
that will enhance competition among market participants, to the benefit
of investors and the marketplace. In addition, the Exchange believes
that the listing and trading criteria set forth in the proposed rules
are intended to protect investors and the public interest.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    The Exchange states that written comments on the proposed rule
change were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
    A. By order approve such proposed rule change; or
    B. Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2008-039 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2008-039. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of the 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-NASDAQ-2008-039 and should
be submitted on or before June 4, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-10701 Filed 5-13-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 78, Number 228 (Tuesday, November 26, 2013)]
[Notices]
[Pages 70567-70569]
[FR Doc No: 2013-28337]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2009-0166]

Nationwide Use of High Frequency and Ultra High Frequency Active
SONAR Technology; Final Programmatic Environmental Assessment and
Finding of No Significant Impact

AGENCY: Coast Guard, DHS.

ACTION: Notice of availability.

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SUMMARY: The Coast Guard (USCG) announces the availability of the Final
Programmatic Environmental Assessment (PEA) for the Nationwide Use of
High Frequency (HF) and Ultra High Frequency (UHF) Sound Navigation and
Ranging (SONAR) Technology and Finding of No Significant Impact
(FONSI). The USCG is proposing the nationwide use of active SONAR
technologies that operate at frequencies of 50 kiloHertz (kHz) and
greater from fixed and mobile platforms. Active SONAR technology would
be used in support of USCG missions to locate, image, and classify
submerged/underwater targets of interest (TOI). The PEA is a program-
level document that will provide the USCG with management-level
analysis of the potential impacts of each alternative on the human and
natural environments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this notice
or regarding the Proposed Action, contact Mr. Kenneth McDaniel, CT &
WMD Senior Program Manager, Office of Counterterrorism & Defense
Operations Policy, by telephone<PHONE_NUMBER> or email
<EMAIL_ADDRESS>For information on the National
Environmental Policy Act (NEPA) or to request paper copies of the PEA
or FONSI contact Ms. Kebby Kelley (CG-47), Program Manager, USCG NEPA/
Historic Resources, by telephone<PHONE_NUMBER> or email
<EMAIL_ADDRESS>If you have questions on viewing or submitting
material to the docket, call Barbara Hairston, Program Manager, Docket
Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Purpose of Proposed Action

    The purpose of the Proposed Action is to broaden the USCG's
capability to locate and classify underwater threats and other TOIs,
and to more safely and effectively accomplish the USCG's missions. TOIs
could include combat swimmers/divers; explosives or other offensive
devices that could be delivered to underwater hulls, piers, or other
shore structures; and objects that have become submerged as a result of
a natural or man-made disaster and have the potential to interrupt
maritime transportation, trade, commerce, recreational boating, or
other maritime activities. The use of HF (50 to 999 kHz) and UHF (1,000
kHz and higher) active SONAR technology would provide USCG operational
commanders with the ability to locate, image, and classify underwater
threats and other TOIs. HF and UHF SONAR technology could be used in
response to events such as: The attacks of September 11, 2001; natural
disasters such as Hurricanes Katrina and Rita of 2005; established
security areas around high-value vessels, infrastructure, and special
security events; and maritime environmental response and search-and-
rescue activities.
    The USCG needs to broaden its capability to locate, image, and
classify submerged/underwater TOIs to safely and efficiently accomplish
mission activities. The USCG needs to detect targets in ranges of less
than 2 kilometers and needs to operate in harbor, anchorage, channel,
and wharf environments, including fresh, brackish, and salt waters, day
or night regardless of visibility and in air and water temperatures and
thermoclines normal for port/harbor and offshore environments
throughout the United States. The USCG's current research of
commercially available and reliable technology indicates that the
nationwide employment of various HF and UHF active SONAR technology
systems would provide the needed capability.

Proposed Use

    HF and UHF SONAR use would fall into one of three general
categories: (1) Operational missions, (2) training and exercises, and
(3) research and development. All SONAR use would be of relatively
short-term duration (typically less than two weeks, unless otherwise
required for an emergency or disaster). Regardless of the category,
such use would only be for the amount of time necessary to complete the
mission objectives. In no case is the USCG proposing long-term
deployments of SONAR equipment in fixed positions (unless required by
an emergency or disaster). In general, the duration of SONAR use would
be from minutes to as long as several days. Typically, the duration of
most deployments would be less than two weeks; however, for
environmental disasters such as the Deepwater Horizon oil spill, SONAR
equipment could be used on-site until the emergency has ended. An
example of a high-priority nonemergency operational mission is the
anti-swimmer SONAR system that would provide security zone protection
during a two-day special event. Once the event has concluded, the
system would be shut down and removed.
    The USCG proposes to use HF and UHF SONAR technology from fixed and
mobile platforms nationwide. Mobile platforms include ships, boats,
remotely operated vehicles (ROVs), and autonomous underwater vehicles
(AUVs). Additionally, SONAR could be towed by a boat (i.e., a torpedo-
shaped ``towfish''), lowered from a boat on a pole, or temporarily
fixed to a pier or a pile. Impacts on the seafloor from ROV and AUV
operations would not be significant. ROVs would be used pierside or at
a location appropriate for conducting vessel inspections. An
appropriate location for inspection would be at a water depth that
would preclude seafloor disturbance. As such, ROVs and AUVs would
usually be suspended in the water column and would rarely contact the
seafloor. Typically, ROVs and AUVs would be used in open, navigable
waterways or safe anchorages. However, an ROV or AUV might contact the
seafloor if there is a suspected threat on the seafloor that needs to
be investigated; such contact would be short-term and transient in
nature.
    Although selected HF and UHF SONAR systems could be employed by any
USCG unit to accomplish a mission, the USCG does not intend to
permanently equip or outfit every USCG unit with SONAR capability. The
HF and UHF SONAR systems selected could be powered using existing USCG
power supplies such as public electrical distribution grids, shipboard
electrical power, or portable generators (e.g., Honda 1,000-watt
generator).

Scope of the Programmatic Environmental Assessment

    The scope of the PEA focuses on potential impacts associated with
the anticipated use of the HF and UHF SONAR systems to accomplish USCG
mission activities. The PEA addresses potential impacts on living
marine resources based on these operating criteria. Supplemental,
follow-on NEPA documentation or additional consultations with
appropriate resource authorities would be required if site-specific,
non-mobile operating scenarios or newly developed technologies fall
outside of the scope of this assessment. The scope of the PEA
encompasses geographic locations where the systems are expected to
operate.
    The SONAR technology systems would be available for use by the USCG
within all areas under USCG jurisdiction along the U.S. continental
coastline, the Great Lakes, Hawaii, Alaska, United States territories,
and inland operating areas. The inland operating areas would include
existing harbor infrastructure and adjacent inland waters, including
the St. Lawrence Seaway, the Great Lakes, and western and inland river
systems. The offshore operating areas would include areas up to 12
nautical miles offshore and most areas shoreward. Normal

locations for deployments would include the ports and waterways of the
nation's top tiered militarily and economically significant ports.
Emergency use of HF and UHF SONAR technology during times of extreme
weather, such as hurricanes, could be required for onshore areas that
become inundated by floodwater.
    The Final PEA was prepared using input from public comment received
on the Draft PEA, as well as input received from Federal agencies, most
notably during the course of consultation completed, as required, under
section 7 of the Endangered Species Act (16 U.S.C. 1531 to 1544).
    This notice is issued under authority of 42 U.S.C. 4321, et seq.,
and 40 CFR 1506.6.

    Dated: November 21, 2013.
Ken Ward,
Office Chief, USCG Office of Counterterrorism & Defense Operations
Policy.
[FR Doc. 2013-28337 Filed 11-25-13; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: January 11, 2010 (Volume 75, Number 6)]
[Notices]
[Page 1431-1432]
[DOCID:fr11ja10-94]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61284; File No. SR-NFA-2009-02]

Self-Regulatory Organizations; National Futures Association;
Notice of Filing and Immediate Effectiveness of a Proposed Change to
the Interpretive Notice Regarding Security Futures Products Proficiency
Training

January 4, 2010.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-7 under the Act \2\ notice is hereby given
that on December 11, 2009, National Futures Association (``NFA'') filed
with the Securities and Exchange Commission (``SEC'' or ``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. NFA concurrently filed
the proposed rule change with the Commodity Futures Trading Commission
(``CFTC'').\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ On December 31, 2009, NFA filed an update to the proposed
rule change to indicate that the CFTC, by letter dated December 28,
2009, advised NFA that the CFTC had determined not to review the
proposal and that NFA was permitted to make the proposal effective
as of December 28, 2009.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule
Change

    The amendments to the Interpretive Notice titled ``NFA Compliance
Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements
for Security Futures Products'' extend the relief from having to take a
proficiency exam to engage in security futures activities from December
31, 2009 to December 31, 2012.
    A copy of this filing is available on the Exchange's Web site at
http://www.nfa.futures.org, on the Commission's Web site at http://
www.sec.gov, the Exchange's principal office and at the Commission's
Public Reference Room.

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

    In its filing with the Commission, the 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. NFA 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
    Section 15A(k) of the Act \4\ makes NFA a national securities
association for the limited purpose of regulating the activities of NFA
Members (``Members'') who are registered as brokers or dealers under
Section 15(b)(11) of the Act.\5\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78o-3(k).
    \5\ 15 U.S.C. 78o(b)(11).
---------------------------------------------------------------------------

    The Commodity Futures Modernization Act of 2000 amended the
Securities Exchange Act of 1934 to require NFA to ``have rules that
ensure that members and natural persons associated with members meet
such standards of training, experience, and competence necessary to
effect transactions in security futures products (``SFPs'') and are
tested for their knowledge of securities and securities futures
products.'' \6\ In 2001 NFA and FINRA (then NASD) adopted temporary
relief allowing registrants to qualify to engage in security futures
activities by completing a training program rather than by taking an
exam. The relief was extended twice and is currently set to expire on
December 31, 2009.
---------------------------------------------------------------------------

    \6\ Section 15A(k)(2)(D) of the Exchange Act.
---------------------------------------------------------------------------

    At its November 19, 2009 meeting, the Board approved amendments to
the Interpretive Notice regarding proficiency requirements for security
futures products. At that meeting, the Board also gave the Executive
Committee authority to make any changes requested by the CFTC or the
SEC. The CFTC and SEC have asked that the proposal adopted by the Board
be modified and the Executive Committee has approved the modified
proposal.
    NFA and FINRA proposed the two prior extensions, and the CFTC and
SEC agreed to them, because of the low trading volume in SFPs and the
relatively few registrants engaging in security futures activities.
These characteristics continue to make the imposition of a
qualifications exam an inefficient option today. Accordingly, the
proposal revises the Interpretive Notice to extend the relief from
having to take an exam from December 31, 2009 to December 31, 2012.\7\
---------------------------------------------------------------------------

    \7\ FINRA recently amended its rules to incorporate the same
three-year extension. See Securities Exchange Act Release. No. 61231
(December 23, 2009), 74 FR 691731 (December 30, 2009) (SR-FINRA-
2009-092).
---------------------------------------------------------------------------

    Amendments to the Interpretive Notice regarding Security Futures
Products Proficiency Training were previously filed in SR-NFA-2002-04,
SR-NFA-2003-03, SR-NFA-2006-04 and SR-NFA-2007-07.
2. Statutory Basis
    The rule change is authorized by, and consistent with, Section
15A(k)(2)(D) of the Act.\8\ That Section requires NFA to ``have rules
that ensure that members and natural persons associated with members
meet such standards of training, experience, and competence necessary
to effect transactions in SFPs and are tested for their knowledge of
securities and securities futures products.'' Although the proposal
extends relief from having to take an exam to engage in security
futures activities, it still requires that training be completed before
entering into such activities.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3(k)(2)(D).
---------------------------------------------------------------------------

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

    NFA does not believe that the proposed rule change will have an
impact on competition.

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

    Comments on the NFA proposed rule change have not been solicited
and none have been received.

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

    The proposed rule change will become effective on December 28,
2009. At any time within 60 days of the date of effectiveness of the
proposed rule change, the Commission, after consultation with the CFTC,
may summarily abrogate the proposed rule change and require that the
proposed rule change be refilled in accordance with the provisions of
Section 19(b)(1) of the Act.\9\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NFA-2009-02 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NFA-2009-02. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the 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-NFA-2009-02 and should be
submitted on or before February 1, 2010.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-238 Filed 1-8-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 219 (Wednesday, November 15, 2023)]
[Notices]
[Pages 78428-78430]
[FR Doc No: 2023-25218]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98902; File No. 4-809]

Order Granting ICE Clear Europe Limited's Request To Withdraw
From Registration as a Clearing Agency

November 9, 2023.

I. Introduction

    On August 10, 2023, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') a
written request (the ``Written Request'') \1\ to withdraw from
registration as a clearing agency under section 17A of the Securities
Exchange Act of 1934 (the ``Exchange Act'').\2\ ICE Clear Europe also
requested the withdrawal of an exemption related to the clearance and
settlement of certain futures and options contracts.\3\ The Commission
published notice of ICE Clear Europe's request in the Federal Register
on September 14, 2023, to solicit comments from interested persons.\4\
The Commission received no comments regarding the request. For the
reasons discussed below, the Commission is granting ICE Clear Europe's
requests and requiring ICE Clear Europe to retain and produce upon
request certain records.
---------------------------------------------------------------------------

    \1\ See Letter from Hester Serafini, President, ICE Clear
Europe, to Vanessa Countryman, Secretary, Commission, dated Aug. 10,
2023.
    \2\ 15 U.S.C. 78q-1.
    \3\ See Notice of Withdrawal Request, infra at note 4, 88 FR at
63176.
    \4\ Securities Exchange Act Release No. 98339 (Sept. 8, 2023),
88 FR 63173 (Sept. 14, 2023) (File No. 4-809) (``Notice of
Withdrawal Request'').
---------------------------------------------------------------------------

II. Discussion and Commission Findings

    ICE Clear Europe is registered with the Commission as a clearing
agency under section 17A of the Exchange Act solely for the purpose of
clearing

security-based swaps (``SBS'').\5\ ICE Clear Europe also is authorized
as a recognized clearing house under United Kingdom (``UK'') law; \6\
recognized as a third-country central counterparty under the European
Market Infrastructure Regulation; \7\ registered as a derivatives
clearing organization under the Commodity Exchange Act; \8\ recognized
as a foreign central counterparty under the Swiss Financial Market
Infrastructure Act; \9\ and recognized as a remote clearing house in
the Abu Dhabi Global Market.\10\ ICE Clear Europe provides clearing and
settlement services for two primary categories of derivative contracts:
(1) exchange-traded futures and options contracts traded on the ICE
Futures Europe, ICE Futures U.S., ICE Endex and ICE Futures Abu Dhabi
markets (the ``F&O Business''); and (2) over-the-counter index and
single-name credit default swap (``CDS'') contracts (the ``CDS
Business'').
---------------------------------------------------------------------------

    \5\ See 15 U.S.C. 78q-1. Pursuant to section 17A(l) of the
Exchange Act, ICE Clear Europe became ``deemed registered'' as a
clearing agency as part of its CDS Business. See Amendment to Rule
Filing Requirements for Dually-Registered Clearing Agencies,
Securities Exchange Act Release No. 69284 (Apr. 3, 2013), 78 FR
21046, 21047 & n.20 (Apr. 9, 2013) (File No. S7-29-11). ``Clearing
agency'' is defined in section 3(a)(23)(A) of the Exchange Act as,
in relevant part, ``any person who acts as an intermediary in making
payments or deliveries or both in connection with transactions in
securities or who provides facilities for comparison of data
respecting the terms of settlement of securities transactions, to
reduce the number of settlements of securities transactions, or for
the allocation of securities settlement responsibilities.'' 15
U.S.C. 78c(a)(23)(A).
    \6\ See UK Financial Services and Markets Act of 2000 c. 8,
available at https://www.legislation.gov.uk/ukpga/2000/8/contents.
    \7\ See Regulation (EU) No 648/2012 of the European Parliament
and of the Council of 4 July 2012 on OTC derivatives, central
counterparties and trade repositories.
    \8\ See 7 U.S.C. 7a-1.
    \9\ See Federal Act on Financial Market Infrastructures and
Market Conduct in Securities and Derivatives Trading of 19 June
2015.
    \10\ See Abu Dhabi Global Market Financial Services and Markets
Regulations 2015, available at https://en.adgm.thomsonreuters.com/rulebook/financial-services-and-markets-regulations-2015-0.
---------------------------------------------------------------------------

    In June 2022, by circular published on its website, ICE Clear
Europe publicly announced its intention to terminate its CDS Business
in 2023, including its clearing of SBS.\11\ In the Written Request
subsequently filed with the Commission, ICE Clear Europe represented
that it would no longer accept CDS contracts for clearing after close
of business on October 26, 2023, and would subsequently terminate and
settle any open CDS positions.\12\ ICE Clear Europe represented further
that it would settle all final amounts owed to or by each Clearing
Member by November 7, 2023, and that it will not seek to engage in
securities clearing activity relating to security-based swaps in
reliance on any deemed registered status pursuant to section 17A(l) of
the Exchange Act.\13\ ICE Clear Europe therefore submitted its request
for withdrawal of its clearing agency registration pursuant to section
19(a)(3) of the Exchange Act, which states that a self-regulatory
organization may ``withdraw from registration by filing a written
notice of withdrawal with the Commission,'' upon such terms and
conditions as the Commission, by rule, deems necessary or appropriate
in the public interest or for the protection of investors.\14\
---------------------------------------------------------------------------

    \11\ See Cessation of Clearing of CDS Contracts, Circular C22/
076 (June 30, 2022), available at https://www.theice.com/publicdocs/clear_europe/circulars/C22076.pdf (setting Mar. 31, 2023 as the
Withdrawal Date); Cessation of Clearing of CDS Contracts:
Postponement of Withdrawal Date, Circular C22/109 (Sept. 26, 2022),
available at https://www.theice.com/publicdocs/clear_europe/circulars/C22109.pdf (postponing Withdrawal Date to Oct. 27, 2023 in
light of suggestions from CDS market participants).
    \12\ See Notice of Withdrawal Request, 88 FR at 63175.
    \13\ See Notice of Withdrawal Request, 88 FR at 63175-76. See
also 15 U.S.C. 78q-1(l). ICE Clear Europe further represents that if
an affiliate of ICE Clear Europe seeks to clear SBS or another
securities product, such affiliate would do so after registering
with the Commission pursuant to the process set forth in Commission
Rule 17Ab2-1. See Notice of Withdrawal Request, 88 FR at 63176. See
also 17 CFR 240.17Ab2-1.
    \14\ See Notice of Withdrawal Request, 88 FR at 63176; see also
15 U.S.C. 78s(a)(3).
---------------------------------------------------------------------------

    ICE Clear Europe also requested the withdrawal of an exemption it
was previously granted related to the clearance and settlement of
certain futures and options contracts.\15\ In 2013, the Commission
exempted ICE Clear Europe from clearing agency registration under
section 17A(b) of the Exchange Act and Rule 17Ab2-1 \16\ thereunder in
connection with ICE Clear Europe's clearing of certain futures and
options contracts on underlying U.S. equity securities (the
``Securities Product Exemption'').\17\ ICE Clear Europe represents that
it does not currently clear any equity options or single stock futures
on U.S. securities,\18\ and that its rules are designed to prohibit ICE
Clear Europe from clearing futures or options on underlying U.S.
securities for U.S. persons.\19\ ICE Clear Europe believes that the
Securities Product Exemption will not be necessary for ICE Clear
Europe's continued operation of the F&O Business, and therefore has
requested that the Commission terminate the exemption.\20\
---------------------------------------------------------------------------

    \15\ See Notice of Withdrawal Request, 88 FR at 63176.
    \16\ 15 U.S.C. 78q-1(b) and 17 CFR 240.17Ab2-1.
    \17\ See Order Pursuant to section 17A of the Securities
Exchange Act of 1934 Granting Exemption from the Clearing Agency
Registration Requirement Under section 17A(b) of the Exchange Act
for ICE Clear Europe Limited in Connection with its Proposal to
Clear Contracts Traded on the LIFFE Administration and Management
Market, Exchange Act Release No. 69872 (June 27, 2013), 78 FR 40220
(July 3, 2013).
    \18\ See Notice of Withdrawal Request, 88 FR at 63176 n.36.
    \19\ See id.; ICE Clear Europe Rule 207(g).
    \20\ See Notice of Withdrawal Request, 88 FR at 63176.
---------------------------------------------------------------------------

    On November 7, 2023, ICE Clear Europe confirmed to the Commission
that it stopped accepting CDS contracts as of close-of-business on
October 26, 2023, closed-out all CDS positions on October 27, 2023,
returned collateral related to CDS positions, and completed final
settlement of amounts owed to or from members related to ICE Clear
Europe's CDS Business on November 7, 2023.\21\ It also re-confirmed the
representations in the Written Request regarding record-keeping,
record-production, the settlement of existing claims, and the lack of
potential for future claims against it resulting from its CDS
Business.\22\
---------------------------------------------------------------------------

    \21\ See Letter from Hester Serafini, President, ICE Clear
Europe, to Vanessa Countryman, Secretary, Securities and Exchange
Commission, dated Nov. 7, 2023 (``Confirmation Letter'').
    \22\ See Confirmation Letter at 2.
---------------------------------------------------------------------------

    Based upon the representations made by ICE Clear Europe to the
Commission, the Commission has determined that granting ICE Clear
Europe's requests to (i) withdraw its clearing agency registration and
(ii) terminate the Securities Product Exemption are appropriate. ICE
Clear Europe represents it is no longer performing actions that require
registration as a clearing agency under section 17A of the Exchange Act
and will not seek to engage in securities clearing activity in reliance
on any ``deemed registered'' status pursuant to section 17A(l) of the
Exchange Act.\23\ In addition, ICE Clear Europe has provided specific
assurances regarding record-keeping, record-production, and both the
settlement of existing, and lack of potential for future, claims
against it resulting from its CDS Business. Specifically, ICE Clear
Europe confirmed that all known claims against it in connection with
the CDS Business were settled by November 7, 2023, and that ICE Clear
Europe is not aware of any potential future claims against it in
connection with the CDS Business.\24\ ICE Clear Europe also confirmed
that, for a period of five years following its withdrawal from
registration as a clearing agency, it will retain and maintain all
documents, books, and

records in accordance with Rules 17a-1(a) and (b) under the Exchange
Act and will furnish such information upon request in accordance Rule
17a-1(c) under the Exchange Act.\25\ As noted above, no comments were
received in response to the published notice of ICE Clear Europe's
Written Request to withdraw from registration as a clearing agency,
which included ICE Clear Europe's representations regarding maintenance
of records and record production, as well as ICE Clear Europe's
representations regarding any potential for claims associated with its
clearing agency registration. As further noted above, ICE Clear Europe
reconfirmed, in writing, the representations made in its Written
Request.
---------------------------------------------------------------------------

    \23\ See Confirmation Letter at 2; 15 U.S.C. 78q-1(l).
    \24\ See Confirmation Letter at 2.
    \25\ See Confirmation Letter at 2.
---------------------------------------------------------------------------

III. Conclusion

    It is therefore ordered, pursuant to section 19(a)(3) of the
Exchange Act,\26\ that:
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(a)(3).
---------------------------------------------------------------------------

    (1) Effective as of the date of this Order, ICE Clear Europe's
registration as a clearing agency under section 17A of the Exchange Act
is withdrawn;
    (2) Effective as of the date of this Order, the exemption under
section 17A(b) of the Exchange Act in connection with ICE Clear
Europe's proposal to clear contracts traded on the LIFFE Administration
and Management Market is terminated; \27\ and
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78q-1(b)
---------------------------------------------------------------------------

    (3) For a period of five years from the effective date of
withdrawal of registration as a clearing agency, ICE Clear Europe will
maintain all the records required to be maintained pursuant to Rule
17A-1(a) and (b) which are in ICE Clear Europe's possession and will
produce such records upon the request of any representative of the
Commission, in accordance with Commission Rule 17a-1(c).\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 240.17a-1(a), (b), and (c).

    By the Commission.
Sherry Haywood,
Assistant Secretary.
[FR Doc. 2023-25218 Filed 11-14-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 166 (Monday, August 27, 2012)]
[Rules and Regulations]
[Pages 51695-51697]
[FR Doc No: 2012-21008]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-0945; Directorate Identifier 2011-NE-18-AD;
Amendment 39-17161; AD 2012-16-14]
RIN 2120-AA64

Airworthiness Directives; Honeywell International Inc. Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for all
Honeywell International Inc. TFE731-20R, -20AR, -20BR, -40, -40AR, -
40R, -50R, and -60 turbofan engines. This AD was prompted by a report
of a quality escape of about 8,000 2nd stage low-pressure turbine
(LPT2) rotor blades, manufactured by Honeywell Chihuahua Manufacturing
Operation since 2009. This AD requires removing and inspecting certain
LPT2 rotor blades. We are issuing this AD to correct an unsafe
condition caused by these blades installed on these engines.

DATES: This AD is effective October 1, 2012.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of October 1,
2012.

ADDRESSES: For service information identified in this AD, contact
Honeywell International Inc., 111 S. 34th Street, Phoenix, AZ 85034-
2802; Web site: http://portal.honeywell.com; or call Honeywell toll
free at phone:<PHONE_NUMBER> (U.S./Canada) or<PHONE_NUMBER>
(International Direct).
    You may view this service information at the FAA, Engine &
Propeller Directorate, 12 New England Executive Park, Burlington, MA
01803. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The address for the
Docket Office (phone:<PHONE_NUMBER>) is Document Management Facility,
U.S. Department of Transportation, Docket Operations, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Joseph Costa, Aerospace Engineer, Los
Angeles Aircraft Certification Office, FAA, Transport Airplane
Directorate, 3960 Paramount Blvd., Lakewood, CA 90712-4137; phone: 562-
627-5246; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a Notice of Proposed Rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
That NPRM published in the Federal Register on January 9, 2012 (77 FR
1043). That NPRM proposed to require removing and inspecting certain
LPT2 rotor blades.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the NPRM.

Conclusion

    We reviewed the relevant data and determined that air safety and
the public interest require adopting the AD as proposed.

Costs of Compliance

    We estimate that this AD will affect 3,000 engines installed on
airplanes of U.S. registry. We also estimate that it will take about 1
work-hour per engine to perform the record review, and that the average
labor rate is $85 per work-hour. For an estimated 500 engines with
discrepant blades, blade rework cost was estimated at $2,380 per engine
with a replacement parts cost about $1,100 per engine. Based on these
figures, we estimate the total cost of the AD to U.S. operators to be
$1,430,100.

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

    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 above, 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, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

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):

2012-16-14 Honeywell International Inc. (Formerly Allied Signal Inc.
and Garrett Turbine Engine Company): Amendment 39-17161; Docket No.
FAA-2011-0945; Directorate Identifier 2011-NE-18-AD.

(a) Effective Date

    This AD is effective October 1, 2012.

(b) Affected ADs

    None.

(c) Applicability

    (1) This AD applies to Honeywell International Inc. TFE731-20R,
-20AR, -20BR, -40, -40AR, -40R, -50R, and -60 turbofan engines:
    (i) With an engine model number and serial number (S/N) listed
in Table 4 of Honeywell Service Bulletin (SB) TFE731-72-5221,
Revision 0, dated November 11, 2010, or
    (ii) With 2nd stage low-pressure turbine (LPT2) rotor assembly
part numbers (P/Ns) 3060608-2, 3060608-3, or 3060608-5 that had any
LPT2 rotor blades P/N 3075424-2 replaced between March 2009 and
September 2010, inclusive, or that had any LPT2 rotor blades P/N
3075424-3 replaced between July 2010 and September 2010, inclusive.

(d) Unsafe Condition

    This AD was prompted by a report of a quality escape of about
8,000 LPT2 rotor blades, manufactured by Honeywell Chihuahua
Manufacturing Operation since 2009. During LPT rotor acceleration,
these blades may contact and damage the 3rd stage LPT (LPT3) nozzle
seal carrier that may subsequently fatigue and contact the adjacent
rotor and damage the rotor. Also, these blades could deform the
blade retainers, which could lead to blade movement that may cause
rotor damage. We are issuing this AD to correct the unsafe condition
caused by these blades installed on these engines.

(e) Compliance

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

(f) Remove LPT2 Rotor Blades

    (1) At the next major periodic inspection, not to exceed 3,000
hours time-since-new, or within 5 years after the effective date of
this AD, or at the next access, whichever occurs first, do the
following using Section 3.0, Accomplishment Instructions, of
Honeywell SB TFE731-72-5221, Revision 0, dated November 11, 2010:
    (i) Remove any suspect LPT2 rotor blades from service.
    (ii) Inspect suspect LPT2 rotor blades.

(g) Alternative Methods of Compliance (AMOCs)

    The Manager, Los Angeles Certification Office, FAA, may approve
AMOCs to this AD. Use the procedures found in 14 CFR 39.19 to make
your request.

(h) Definition

    For purposes of this AD, next access is defined as when the LPT
module is disassembled.

(i) Related Information

    For more information about this AD, contact Joseph Costa,
Aerospace Engineer, Los Angles Aircraft Certification Office, FAA,
Transport Airplane Directorate, 3960 Paramount Blvd., Lakewood, CA
90712-4137; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
(j) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) 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) Honeywell SB TFE731-72-5221, Revision 0, dated November 11,
2010.
    (ii) Reserved.
    (3) For Honeywell International Inc. service information
identified in this AD, contact Honeywell International Inc., 111 S.
34th Street, Phoenix, AZ 85034-2802; Web site: http://portal.honeywell.com; or call Honeywell toll free at phone: 800-601-
3099 (U.S./Canada) or<PHONE_NUMBER> (International Direct).
    (4) You may view this service information at FAA, Engine &
Propeller Directorate, 12 New England Executive Park, Burlington,
MA. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.
    (5) You may view this service information 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 Burlington, Massachusetts, on August 6, 2012.
Mark C. Fulmer,
Acting Manager, Engine & Propeller Directorate, Aircraft Certification
Service.
[FR Doc. 2012-21008 Filed 8-24-12; 8:45 am]
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[Federal Register Volume 87, Number 172 (Wednesday, September 7, 2022)]
[Notices]
[Page 54736]
[FR Doc No: 2022-19345]

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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meetings

TIME AND DATE: 2:00 p.m. on Thursday, September 8, 2022.

PLACE:  The meeting will be held via remote means and/or at the
Commission's headquarters, 100 F Street NE, Washington, DC 20549.

STATUS:  This meeting will be closed to the public.

MATTERS TO BE CONSIDERED:  Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
    In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
    The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
    The subject matter of the closed meeting will consist of the
following topics:
    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings;
    Resolution of litigation claims; and
    Other matters relating to examinations and enforcement proceedings.
    At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory, examination, litigation, or regulatory matters.

CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.

(Authority: 5 U.S.C. 552b.)

     Dated: September 1, 2022.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2022-19345 Filed 9-2-22; 11:15 am]
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[Federal Register Volume 80, Number 162 (Friday, August 21, 2015)]
[Notices]
[Pages 50914-50915]
[FR Doc No: 2015-20683]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2015-0268]

Agency Information Collection Activities; Revision of a
Currently-Approved Information Collection Request: Motor Carrier
Identification Report

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice and request for information.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FMCSA
announces its plan to submit the Information Collection Request (ICR)
described below to the Office of Management and Budget (OMB) for review
and approval and invites public comment. The FMCSA requests approval to
revise an ICR entitled, ``Motor Carrier Identification Report,'' which
is used to identify FMCSA regulated entities, help prioritize the
agency's activities, aid in assessing the safety outcomes of those
activities, and for statistical purposes. This ICR is being revised due
to a Final Rule titled, ``Unified Registration System,'' (78 FR 52608)
dated August 23, 2013 which will require regulated entities to file for
registration via a new online Form MCSA-1 and eliminate the Forms MCS-
150B and MCS-150C contained in the ICR. The Form MCS-150 will be
retained for use by the small number of Mexico-domiciled motor carriers
that seek authority to operate beyond the United States municipalities
on the United States-Mexico border and their commercial zones because
they are not included within the scope of the Unified Registration
Final Rule.

DATES: We must receive your comments on or before October 20, 2015.

ADDRESSES: You may submit comments identified by Federal Docket
Management System (FDMS) Docket Number FMCSA-2015-0268 using any of the
following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Operations; U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Ground
Floor, Room W12-140, 20590-0001.
     Hand Delivery or Courier: West Building, Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC, between 9
a.m. and 5 p.m. e.t., Monday through Friday, except Federal holidays.
    Instructions: All submissions must include the Agency name and
docket number. For detailed instructions on submitting comments and
additional information on the exemption process, see the Public
Participation heading below. Note that all comments received will be
posted without change to  http://www.regulations.gov, including any
personal information provided. Please see the Privacy Act heading
below.
    Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov, and follow the
online instructions for accessing the dockets, or go to the street
address listed above.
    Privacy Act: Anyone is able to search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement for the Federal Docket Management System
published in the Federal Register on January 17, 2008 (73 FR 3316), or
you may visit http://edocket.access.gpo.gov/2008/pdfE8-794.pdf.
    Public Participation: The Federal eRulemaking Portal is available
24 hours each day, 365 days each year. You can obtain electronic
submission and retrieval help and guidelines under the ``help'' section
of the Federal eRulemaking Portal Web site. If you

want us to notify you that we received your comments, please include a
self-addressed, stamped envelope or postcard, or print the
acknowledgement page that appears after submitting comments online.
Comments received after the comment closing date will be included in
the docket and will be considered to the extent practicable.

FOR FURTHER INFORMATION CONTACT: Mr. Jeff Secrist, Office of
Registration and Safety Information, Department of Transportation,
Federal Motor Carrier Safety Administration, West Building 6th Floor,
1200 New Jersey Avenue SE., Washington, DC 20590-0001. Telephone: 202-
385-2367; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    Background: Title 49, United States Code Section 504(b)(2) provides
the Secretary of Transportation (Secretary) with authority to require
carriers, lessors, associations, or classes of these entities to file
annual, periodic, and special reports containing answers to questions
asked by the Secretary. The Secretary may also prescribe the form of
records required to be prepared or compiled and the time period during
which records must be preserved (See section 504(b) (1) and (d)). The
FMCSA will use this data to administer its safety programs by
establishing a database of entities that are subject to its
regulations. This database necessitates that these entities notify the
FMCSA of their existence. For example, under 49 CFR 390.19(a), FMCSA
requires all motor carriers beginning operations to file a Form MCS-150
entitled, Motor Carrier Identification Report. This report is filed by
all motor carriers conducting operations in interstate or international
commerce before beginning operations. It asks the respondent to provide
the name of the business entity that owns and controls the motor
carrier operation, address and telephone of principal place of
business, assigned identification number(s), type of operation, types
of cargo usually transported, number of vehicles owned, term leased and
trip leased, driver information, and certification statement signed by
an individual authorized to sign documents on behalf of the business
entity.
    The Department of Transportation and Related Agencies
Appropriations Act for fiscal year 2002, Public Law 107-87, 115 Stat.
833, dated December 18, 2001 (see Attachment B), directed the agency to
issue an interim final rule (IFR) to ensure that new entrant motor
carriers are knowledgeable about the Federal Motor Carrier Safety
Regulations (FMCSRs) and standards. On May 13, 2002, the agency
published an IFR entitled, ``New Entrant Safety Assurance Process'' (67
FR 31978).
    On August, 23, 2013, the agency published a Final Rule titled,
``Unified Registration System,'' (URS) which requires interstate motor
carriers, freight forwarders, brokers, intermodal equipment providers,
hazardous materials safety permit applicants, and cargo tank facilities
to file for registration via a new online Form MCSA-1. The Form MCSA-1
will replace the existing Forms MCS-150B and MCS-150C in this ICR.
However, the Form MCS-150 will be retained for the small number of
Mexico-domiciled carriers that seek authority to operate beyond the
United States municipalities on the United States-Mexico border and
their commercial zones because they are not included within the scope
of the URS Final Rule. This revised ICR captures the burden on the
Mexico-domiciled carriers that will continue to use Form MCS-150 after
implementation of the URS Final Rule effective October, 23 2015.
    Title: Motor Carrier Identification Report.
    OMB Control Number: 2126-0013.
    Type of Request: Revision of a currently-approved information
collection.
    Respondents: Mexico domiciled motor carriers and commercial motor
vehicle drivers.
    Estimated Number of Respondents: 15,291.
    Estimated Time per Response: 20 minutes for new filings and 7.5
minutes for biennial updates and changes to complete the Form MCS-150.
    Expiration Date: December 31, 2015.
    Frequency of Response: On occasion and biennially.
    Estimated Total Annual Burden: 386 hours [(396 new filings x 20
minutes / 60 minutes) + (2,030 biennial updates and changes x 7.5
minutes / 60 minutes)].
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including: (1) Whether the proposed
collection is necessary for the performance of FMCSA's functions; (2)
the accuracy of the estimated burden; (3) ways for the FMCSA to enhance
the quality, usefulness, and clarity of the collected information; and
(4) ways that the burden could be minimized without reducing the
quality of the information collected. The Agency will summarize or
include your comments in the request for OMB's clearance of this ICR.

    Issued under the authority of 49 CFR 1.87 on: August 14, 2015.
G. Kelly Regal,
Associate Administrator for Office of Research and Information
Technology.
[FR Doc. 2015-20683 Filed 8-20-15; 8:45 am]
BILLING CODE 4910-EX-P