[Federal Register Volume 88, Number 216 (Thursday, November 9, 2023)]
[Notices]
[Pages 77300-77301]
[FR Doc No: 2023-24741]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas and Oil Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP24-130-000.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: TCO-MXP Negotiated Rate
Agreements Eff. 11.1.23 to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5167.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-131-000.
    Applicants: Gulf South Pipeline Company, LLC.
    Description: Sec.  4(d) Rate Filing: 2023 Fuel Tracker Filing to be
effective 4/1/2024.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5174.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-132-000.
    Applicants: Algonquin Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates--Amended
Excelerate 510850 eff 11-1-23 to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5179.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-133-000.
    Applicants: Gulf South Pipeline Company, LLC.
    Description: Sec.  4(d) Rate Filing: Implement Electric Power Cost
Tracker to be effective 4/1/2024.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5181.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-134-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Update (Conoco Nov 2023) to be effective 11/2/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5182.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-135-000.
    Applicants: Texas Eastern Transmission, LP.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates--Various
Releases eff 11-1-23 to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5189.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-136-000.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: TCO Negotiated Rate Agreements
Eff. 11.1.23 to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5190.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-137-000.

    Applicants: ANR Pipeline Company.
    Description: Sec.  4(d) Rate Filing: ANR Nov. 1 Negotiated Rate
Agreements to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5200.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-138-000.
    Applicants: Trailblazer Pipeline Company LLC.
    Description: Sec.  4(d) Rate Filing: TPC 2023-11-01 Negotiated Rate
Agreement to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5208.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-139-000.
    Applicants: Rover Pipeline LLC.
    Description: Sec.  4(d) Rate Filing: Summary of Negotiated Rate
Capacity Release Agreements 11-1-2023 to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5213.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-140-000.
    Applicants: Portland Natural Gas Transmission System.
    Description: Sec.  4(d) Rate Filing: Castleton Negotiated Rate
Agreement #287978 to be effective 11/1/2023.
    Filed Date: 11/1/23.
    Accession Number: 20231101-5227.
    Comment Date: 5 p.m. ET 11/13/23.

    Docket Numbers: RP24-141-000.
    Applicants: Equitrans, L.P.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Capacity
Release Agreement--11/01/2023 to be effective 11/1/2023.
    Filed Date: 11/2/23.
    Accession Number: 20231102-5000.
    Comment Date: 5 p.m. ET 11/14/23.

    Any person desiring to intervene, to protest, or to answer a
complaint in any of the above proceedings must file in accordance with
Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211,
385.214, or 385.206) on or before 5:00 p.m. Eastern time on the
specified comment date. Protests may be considered, but intervention is
necessary to become a party to the proceeding.
    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes. For
public inquiries and assistance with making filings such as
interventions, comments, or requests for rehearing, the public is
encouraged to contact OPP at<PHONE_NUMBER> or [email protected].

    Dated: November 2, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-24741 Filed 11-8-23; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 226 (Friday, November 22, 2019)]
[Notices]
[Pages 64607-64616]
[FR Doc No: 2019-25317]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87560; File No. SR-CboeBZX-2019-097]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Adopt BZX Rule 14.11(l) To Permit
the Listing and Trading of Exchange-Traded Fund Shares That Are
Permitted To Operate in Reliance on Rule 6c-11 Under the Investment
Company Act of 1940

November 18, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 15, 2019 Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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 Exchange. 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\ 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 a rule change to adopt BZX Rule 14.11(l) to
permit the listing and trading of Exchange-Traded Fund Shares that are
permitted to operate in reliance on Rule 6c-11 under the Investment
Company Act of 1940. The Exchange is also proposing to discontinue the
quarterly reports required with respect to Managed Fund Shares listed
on the Exchange pursuant to the generic listing standards under Rule
14.11(i).
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary,

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 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 Rule 14.11(l) \3\ for the purpose
of permitting the generic listing and trading, or trading pursuant to
unlisted trading privileges, of Exchange-Traded Fund Shares \4\ that
are permitted to operate in reliance on Rule 6c-11 (``Rule 6c-11'')
under the Investment Company Act of 1940 (the ``1940 Act'').\5\ The
Exchange is also proposing to discontinue the quarterly reports
required with respect to Managed Fund Shares listed on the Exchange
pursuant to the generic listing standards under Rule 14.11(i).
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    \3\ The Exchange notes that it is proposing new Rule 14.11(l)
because it has also proposed a new Rule 14.11(k) as part of another
proposal. See Securities Exchange Act Release No. 87062 (September
23, 2019), 84 FR 51193 (September 27, 2019) (SR-CboeBZX-2019-047).
    \4\ As provided below, proposed Rule 14.11(l)(3)(A) provides
that the term ``ETF Shares'' shall mean the shares issued by a
registered open-end management investment company that: (i) Is
eligible to operate in reliance on Rule 6c-11 under the Investment
Company Act of 1940; (ii) issues (and redeems) creation units to
(and from) authorized participants in exchange for a basket and a
cash balancing amount (if any); and (iii) issues shares that it
intends to list or are listed on a national securities exchange and
traded at market-determined prices.
    \5\ 15 U.S.C. 80a-1.
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    The Commission recently adopted Rule 6c-11 to permit exchange-
traded funds (``ETFs'') that satisfy certain conditions to operate
without obtaining an exemptive order from the Commission under the 1940
Act.\6\ Since the first ETF was approved by the Commission in 1992, the
Commission has routinely granted exemptive orders permitting ETFs to
operate under the 1940 Act because there was no ETF specific rule in
place and they have characteristics that distinguish them from the
types of structures contemplated and included in the 1940 Act. After
such an extended period operating without a specific rule set and only
under exemptive relief, Rule 6c-11 is designed to provide a consistent,
transparent, and efficient regulatory framework for ETFs.\7\ Exchange
listing standards applicable to ETFs have been similarly adopted and
tweaked over the years and the Exchange believes that, just as the
Commission has undertaken a review of the 1940 Act as it is applicable
to ETFs, it is appropriate to perform a similar holistic review and
overhaul of Exchange listing rules. With this in mind, the Exchange
submits this proposal to add new Rule 14.11(l) and certain
corresponding rule changes because it believes that this proposal
similarly promotes consistency, transparency, and efficiency
surrounding the exchange listing process for ETF Shares in a manner
that is consistent with the Act, as further described below.
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    \6\ See Release Nos. 33-10695; IC-33646; File No. S7-15-18
(Exchange-Traded Funds) (September 25, 2019), 84 FR 57162 (October
24, 2019) (the ``Rule 6c-11 Release'').
    \7\ In approving the rule, the Commission stated that the ``rule
will modernize the regulatory framework for ETFs to reflect our more
than two decades of experience with these investment products. The
rule is designed to further important Commission objectives,
including establishing a consistent, transparent, and efficient
regulatory framework for ETFs and facilitating greater competition
and innovation among ETFs.'' Rule 6c-11 Release, at 57163. The
Commission also stated the following regarding the rule's impact:
``We believe rule 6c-11 will establish a regulatory framework that:
(1) Reduces the expense and delay currently associated with forming
and operating certain ETFs unable to rely on existing orders; and
(2) creates a level playing field for ETFs that can rely on the
rule. As such, the rule will enable increased product competition
among certain ETF providers, which can lead to lower fees for
investors, encourage financial innovation, and increase investor
choice in the ETF market.'' Rule 6c-11 Release, at 57204.
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    Consistent with Index Fund Shares and Managed Fund Shares listed
under the generic listing standards in Rules 14.11(c) and 14.11(i),
respectively, series of Exchange-Traded Fund Shares that are permitted
to operate in reliance on Rule 6c-11 would be permitted to be listed
and traded on the Exchange without a prior Commission approval order or
notice of effectiveness pursuant to Section 19(b) of the Act.\8\
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    \8\ Rule 19b-4(e)(1) provides that the listing and trading of a
new derivative securities product by a self-regulatory organization
(``SRO'') is not deemed a proposed rule change, pursuant to
paragraph (c)(1) of Rule 19b-4, if the Commission has approved,
pursuant to Section 19(b) of the Act, the SRO's trading rules,
procedures and listing standards for the product class that would
include the new derivative securities product and the SRO has a
surveillance program for the product class. As contemplated by this
Rule, the Exchange proposes new Rule 14.11(l) to establish generic
listing standards for ETFs that are permitted to operate in reliance
on Rule 6c-11. An ETF listed under proposed Rule 14.11(l) would
therefore not need a separate proposed rule change pursuant to Rule
19b-4 before it can be listed and traded on the Exchange.
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Proposed Listing Rules
    Proposed Rule 14.11(l)(1) provides that the Exchange will consider
for trading, whether by listing or pursuant to unlisted trading
privileges, the shares of Exchange-Traded Funds (``ETF Shares'') that
meet the criteria of this Rule.
    Proposed Rule 14.11(l)(2) provides that the proposed rule would be
applicable only to ETF Shares. Except to the extent inconsistent with
this Rule, or unless the context otherwise requires, the rules and
procedures of the Board of Directors shall be applicable to the trading
on the Exchange of such securities. ETF Shares are included within the
definition of ``security'' or ``securities'' as such terms are used in
the Rules of the Exchange.
    Proposed Rule 14.11(l)(2) further provides that: (A) Transactions
in ETF Shares will occur throughout the Exchange's trading hours; (B)
the minimum price variation for quoting and entry of orders in ETF
Shares is $0.01; and (C) the Exchange will implement and maintain
written surveillance procedures for ETF Shares.
    Proposed Rule 14.11(l)(3)(A) provides that the term ``ETF Shares''
shall mean the shares issued by a registered open-end management
investment company that: (i) Is eligible to operate in reliance on Rule
6c-11 under the Investment Company Act of 1940; \9\ (ii) issues (and
redeems) creation units to (and from) authorized participants in
exchange for a basket and a cash balancing amount (if any); and (iii)
issues shares that it intends to list or are listed on a national
securities exchange and traded at market-determined prices.\10\
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    \9\ The Exchange notes that certain types of ETFs, such as
leveraged ETFs, are not eligible to operate in reliance on Rule 6c-
11 and therefore would not be eligible to list under this proposed
Rule 14.11(l). Such ETFs could, however, be listed pursuant to Rule
14.11(c) or 14.11(i).
    \10\ The Exchange notes that this definition is substantially
similar to the definition under Rule 6c-11 except that the proposed
definition includes in the definition of ETF Shares those shares
that it intends to list on a national securities exchange.
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    Proposed Rule 14.11(l)(3)(B) provides that the term ``Reporting
Authority'' in respect of a particular series of ETF Shares means the
Exchange, an institution, or a reporting service designated by the
Exchange or by the exchange that lists a particular series of ETF
Shares (if the Exchange is trading such series pursuant to unlisted
trading privileges) as the official source for

calculating and reporting information relating to such series,
including, but not limited to, the amount of any cash distribution to
holders of ETF Shares, net asset value, or other information relating
to the issuance, redemption or trading of ETF Shares. A series of ETF
Shares may have more than one Reporting Authority, each having
different functions.
    Proposed Rule 14.11(l)(4) provides that the Exchange may approve
ETF Shares for listing and/or trading (including pursuant to unlisted
trading privileges) on the Exchange pursuant to Rule 19b-4(e) under the
Act so long as such series of ETF Shares is eligible to operate in
reliance on Rule 6c-11 under the Investment Company Act of 1940 and
meets all applicable requirements under such Rule 6c-11 upon initial
listing and on a continuing basis. ETF Shares will be listed and traded
on the Exchange subject to application of the following criteria.
    Proposed Rule 14.11(l)(4)(A) provides that each series of ETF
Shares will be listed and traded on the Exchange subject to application
of the following initial listing criteria: (i) For each series, the
Exchange will establish a minimum number of ETF Shares required to be
outstanding at the time of commencement of trading on the Exchange; and
(ii) the Exchange will obtain a representation from the issuer of each
series of ETF Shares stating that the disclosures required under Rule
6c-11 of the Investment Company Act of 1940 will be made available on a
daily basis in compliance with Rule 6c-11 and that the issuer will
notify the Exchange of any failure to do so.
    Proposed Rule 14.11(l)(4)(B) provides that each series of ETF
Shares will be listed and traded on the Exchange subject to application
of the following continued listing criteria.
    Proposed Rule 14.11(l)(4)(B)(i) provides that the Exchange will
consider the suspension of trading in, and will commence delisting
proceedings under Rule 14.12 for, a series of ETF Shares under any of
the following circumstances: (a) If the issuer of the ETF Shares has
failed to file any filings required by the Commission or if the
Exchange is aware that the issuer is not in compliance with the
requirements of Rule 6c-11 of the Investment Company Act of 1940; (b)
if any of the other listing requirements set forth in this Rule
14.11(l) are not continuously maintained; or (c) if such other event
shall occur or condition exists which, in the opinion of the Exchange,
makes further dealings on the Exchange inadvisable.
    Proposed Rule 14.11(l)(4)(B)(ii) provides that the Exchange may
consider all relevant factors in exercising its discretion to halt or
suspend trading in a series of ETF Shares. Trading may be halted
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable. These may include:
(1) The extent to which certain information about the ETF Shares that
is required to be disclosed under Rule 6c-11 of the Investment Company
Act of 1940 is not being made available; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present.
    Proposed Rule 14.11(l)(4)(B)(iii) provides that upon termination of
an investment company, the Exchange requires that ETF Shares issued in
connection with such entity be removed from Exchange listing.
    Proposed Rule 14.11(l)(5) provides that neither the Exchange, the
Reporting Authority, nor any agent of the Exchange shall have any
liability for damages, claims, losses or expenses caused by any errors,
omissions, or delays in calculating or disseminating any current index
or portfolio value; the current value of the portfolio of securities
required to be deposited to the open-end management investment company
in connection with issuance of ETF Shares; the amount of any dividend
equivalent payment or cash distribution to holders of ETF Shares; net
asset value; or other information relating to the purchase, redemption,
or trading of ETF Shares, resulting from any negligent act or omission
by the Exchange, the Reporting Authority, or any agent of the Exchange,
or any act, condition, or cause beyond the reasonable control of the
Exchange, its agent, or the Reporting Authority, including, but not
limited to, an act of God; fire; flood; extraordinary weather
conditions; war; insurrection; riot; strike; accident; action of
government; communications or power failure; equipment or software
malfunction; or any error, omission, or delay in the reports of
transactions in one or more underlying securities.
    Proposed Rule 14.11(l)(6) provides that the provisions of this
subparagraph apply only to series of ETF Shares that are the subject of
an order by the Securities and Exchange Commission exempting such
series from certain prospectus delivery requirements under Section
24(d) of the Investment Company Act of 1940 and are not otherwise
subject to prospectus delivery requirements under the Securities Act of
1933. The Exchange will inform its Members regarding application of
this subparagraph to a particular series of ETF Shares by means of an
information circular prior to commencement of trading in such series.
The Exchange requires that members provide to all purchasers of a
series of ETF Shares a written description of the terms and
characteristics of those securities, in a form prepared by the open-end
management investment company issuing such securities, not later than
the time a confirmation of the first transaction in such series is
delivered to such purchaser. In addition, members shall include such a
written description with any sales material relating to a series of ETF
Shares that is provided to customers or the public. Any other written
materials provided by a member to customers or the public making
specific reference to a series of ETF Shares as an investment vehicle
must include a statement in substantially the following form: ``A
circular describing the terms and characteristics of (the series of ETF
Shares) has been prepared by the (open-end management investment
company name) and is available from your broker. It is recommended that
you obtain and review such circular before purchasing (the series of
ETF Shares).'' A member carrying an omnibus account for a non-member
broker-dealer is required to inform such non-member that execution of
an order to purchase a series of ETF Shares for such omnibus account
will be deemed to constitute agreement by the non-member to make such
written description available to its customers on the same terms as are
directly applicable to members under this rule. Upon request of a
customer, a member shall also provide a prospectus for the particular
series of ETF Shares.
    The Exchange is also proposing to make two non-substantive
amendments to include ETF Shares in other Exchange rules. Specifically,
the Exchange is also proposing: (i) To amend Rule 14.10(e)(1)(E) in
order to add ETF Shares to a list of product types listed on the
Exchange, including Index Fund Shares and Managed Fund Shares, that are
exempted from the Audit Committee requirements set forth in Rule
14.10(c)(3), except for the applicable requirements of SEC Rule 10A-3;
and (ii) to amend Rule 14.11(c)(3)(A)(i)(a) in order to include ETF
Shares in the definition of Derivative Securities Products.
Discussion
    Proposed Rule 14.11(l) is based in large part on Rules 14.11(c) and
(i) related to the listing and trading of Index Fund Shares and Managed
Fund

Shares on the Exchange, respectively, both of which are issued under
the 1940 Act and would qualify as ETF Shares after Rule 6c-11 is
effective. Rule 14.11(c) and 14.11(i) are very similar, their primary
difference being that Index Fund Shares are designed to track an
underlying index and Managed Fund Shares are based on an actively
managed portfolio that is not designed to track an index. As such, the
Exchange believes that using Rules 14.11(c) and (i) (collectively, the
``Current ETF Standards'') as the basis for proposed Rule 14.11(l) is
appropriate because they are generally designed to address the issues
associated with ETF Shares. The only substantial differences between
proposed Rule 14.11(l) and the Current ETF Standards that are not
otherwise required under Rule 6c-11 are as follows: (i) Proposed Rule
14.11(l) does not include the quantitative standards applicable to a
fund or an index that are included in the Current ETF Standards; (ii)
proposed Rule 14.11(l) does not include any requirements related to the
dissemination of a fund's Intraday Indicative Value; \11\ (iii) and
proposed Rule 14.11(l) does not include any specific requirements
related to ``firewalls'' that need to be in place between certain
parties associated with a fund and their affiliates. These differences
are discussed below.
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    \11\ For purposes of this filing, the term ``Intraday Indicative
Value'' or ``IIV'' shall mean an intraday estimate of the value of a
share of each series of either Index Fund Shares or Managed Fund
Shares.
---------------------------------------------------------------------------

Quantitative Standards
    The Exchange believes that the proposal is designed to prevent
fraudulent and manipulative acts and practices because the Exchange
will perform ongoing surveillance of ETF Shares listed on the Exchange
in order to ensure compliance with Rule 6c-11 and the 1940 Act on an
ongoing basis. While proposed Rule 14.11(l) does not include the
quantitative requirements applicable to an ETF or an ETF's holdings or
underlying index that are included in Rules 14.(c) and 14.11(i),\12\
the Exchange believes that the manipulation concerns that such
standards are intended to address are otherwise mitigated by a
combination of the Exchange's surveillance procedures, the Exchange's
ability to halt trading under the proposed Rule 14.11(l)(4)(B)(ii), and
the Exchange's ability to suspend trading and commence delisting
proceedings under proposed Rule 14.11(l)(4)(B)(i). The Exchange also
believes that such concerns are further mitigated by enhancements to
the arbitrage mechanism that will come from Rule 6c-11, specifically
the additional flexibility provided to issuers of ETF Shares through
the use of custom baskets for creations and redemptions and the
additional information made available to the public through the
additional Disclosure Obligations.\13\ The Exchange believes that the
combination of these factors will act to keep ETF Shares trading near
the value of their underlying holdings and further mitigate concerns
around manipulation of ETF Shares on the Exchange without the inclusion
of quantitative standards.\14\ The Exchange will monitor for compliance
with the 1940 Act generally as well as Rule 6c-11 specifically in order
to ensure that the continued listing standards are being met.
Specifically, the Exchange plans to review the website of series of ETF
Shares in order to ensure that the disclosure requirements of Rule 6c-
11 are being met and to review the portfolio underlying series of ETF
Shares listed on the Exchange in order to ensure that certain
investment requirements and limitations under the 1940 Act are being
met. The Exchange will also employ numerous intraday alerts that will
notify Exchange personnel of trading activity throughout the day that
is potentially indicative of certain disclosures not being made
accurately or the presence of other unusual conditions or circumstances
that could be detrimental to the maintenance of a fair and orderly
market. As a backstop to the surveillances described above, the
Exchange also notes that Rule 14.11(a) and proposed Rule
14.11(l)(4)(A)(ii) would require an issuer of ETF Shares to notify the
Exchange of any failure to comply with Rule 6c-11 or the 1940 Act.
---------------------------------------------------------------------------

    \12\ The Exchange notes that Rules 14.11(c) and (i) include
certain quantitative standards related to the size, trading volume,
concentration, and diversity of the holdings of a series of Index
Fund Shares or Managed Fund Shares (the ``Holdings Standards'') as
well as related to the minimum number of beneficial holders of a
fund (the ``Distribution Standards''). The Exchange believes that to
the extent that manipulation concerns are mitigated based on the
factors described herein, such concerns are mitigated both as it
relates to the Holdings Standards and the Distribution Standards.
    \13\ The Exchange notes that the Commission came to a similar
conclusion in several places in the Rule 6c-11 Release. See Rule 6c-
11 Release at 15-18; 60-61; 69-70; 78-79; 82-84; and 95-96.
    \14\ The Exchange believes that this applies to all quantitative
standards, whether applicable to the portfolio holdings of a series
of ETF Shares or the distribution of the ETF Shares.
---------------------------------------------------------------------------

    To the extent that any of the requirements under Rule 6c-11 or the
1940 Act are not being met, the Exchange may halt trading in a series
of ETF Shares as provided in proposed Rule 14.11(l)(4)(B)(ii).\15\
Further, the Exchange may also suspend trading in and commence
delisting proceedings for a series of ETF Shares where such series is
not in compliance with the applicable listing standards or where the
Exchange believes that further dealings on the Exchange are
inadvisable.\16\
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    \15\ Specifically, proposed Rule 14.11(l)(4)(B)(ii) states that
the Exchange may consider all relevant factors in exercising its
discretion to halt or suspend trading in a series of ETF Shares.
Trading may be halted because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which certain
information about the ETF Shares that is required to be disclosed
under Rule 6c-11 of the Investment Company Act of 1940 is not being
made available; or (2) whether other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.
    \16\ Specifically, proposed Rule 14.11(l)(4)(B)(i), provides
that if a series of ETF Shares is not in compliance with the
applicable listing requirements, including: (a) If the issuer of the
ETF Shares has failed to file any filings required by the Commission
or if the Exchange is aware that the issuer is not in compliance
with the requirements of Rule 6c-11 of the Investment Company Act of
1940; (b) if any of the other listing requirements set forth in this
Rule 14.11(l) are not continuously maintained; or (c) if such other
event shall occur or condition exists which, in the opinion of the
Exchange, makes further dealings on the Exchange inadvisable, the
Exchange will commence delisting procedures under Rule 14.12.
---------------------------------------------------------------------------

    Further, the Exchange also represents that its surveillance
procedures are adequate to properly monitor the trading of the ETF
Shares in all trading sessions and to deter and detect violations of
Exchange rules and applicable federal securities laws. Specifically,
the Exchange intends to utilize its existing surveillance procedures
applicable to derivative products, which are currently applicable to
Index Fund Shares and Managed Fund Shares, among other product types,
to monitor trading in ETF Shares. The Exchange or the Financial
Industry Regulatory Authority, Inc. (``FINRA''), on behalf of the
Exchange, will communicate as needed regarding trading in ETF Shares
and certain of their applicable underlying components with other
markets that are members of the Intermarket Surveillance Group
(``ISG'') or with which the Exchange has in place a comprehensive
surveillance sharing agreement. In addition, the Exchange may obtain
information regarding trading in ETF Shares and certain of their
applicable underlying components from markets and other entities that
are members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement. Additionally, FINRA, on
behalf of the Exchange, is able to access, as needed, trade information
for certain

fixed income securities that may be held by a series of ETF Shares
reported to FINRA's Trade Reporting and Compliance Engine (``TRACE'').
FINRA also can access data obtained from the Municipal Securities
Rulemaking Board's (``MSRB'') Electronic Municipal Market Access
(``EMMA'') system relating to municipal bond trading activity for
surveillance purposes in connection with trading in a series of ETF
Shares, to the extent that a series of ETF Shares holds municipal
securities. Finally, as noted above, the issuer of a series of ETF
Shares will be required to comply with Rule 10A-3 under the Act for the
initial and continued listing of Exchange-Traded Fund Shares, as
provided under Rule 14.10(e)(1)(E).
Intraday Indicative Value
    As described above, proposed Rule 14.11(l) does not include any
requirements related to the dissemination of an Intraday Indicative
Value. Both Rule 14.11(c) and Rule 14.11(i) include the requirement
that a series of Index Fund Shares and Managed Fund Shares,
respectively, disseminate and update an Intraday Indicative Value at
least every 15 seconds.\17\ Historically (and theoretically), the IIV
could provide valuable information about an ETF that would not
otherwise be available or easily calculable. However, as consistently
highlighted in the Rule 6c-11 Release, that is not reflective of the
current marketplace and the Commission has expressed concerns regarding
the accuracy of IIV estimates for certain ETFs. Specifically, the
Commission noted that an IIV may not accurately reflect the value of an
ETF that holds securities that trade less frequently as such IIV can be
stale or inaccurate.\18\ Additionally, the Commission indicated that
even in circumstances when an IIV may be reliable, retail investors do
not have easy access to free, publicly available IIV information.\19\
Further, in instances when IIV may be free and publicly available, it
can be delayed by up to 45 minutes.\20\
---------------------------------------------------------------------------

    \17\ See Rules 14.11(c)(3)(C), 14.11(c)(6)(A), and
14.11(c)(9)(B)(e) related to Index Fund Shares and Rules
14.11(i)(3)(C), 14.11(i)(4)(B)(i), 14.11(i)(4)(B)(iii)(b), and
14.11(i)(4)(B)(iv) related to Managed Fund Shares.
    \18\ See Rule 6c-11 Release at 62.
    \19\ See Id., at 66.
    \20\ See Id.
---------------------------------------------------------------------------

    Aside from the fact that the disseminated IIV may provide investors
with stale or misleading data, the Commission also stated that market
makers and authorized participants typically calculate their own
intraday value of an ETF's portfolio with proprietary algorithms that
use an ETF's daily portfolio disclosure and available pricing
information.\21\ Such information allows those market participants to
support the arbitrage mechanism for ETFs. Therefore, as market
participants who engage in arbitrage typically calculate their own
intraday value of an ETF's portfolio based on the ETF's daily portfolio
disclosure and pricing information and use an IIV only as a secondary
check to their own calculation,\22\ the Commission noted that IIV was
not necessary to support the arbitrage mechanism.\23\ Given this,
combined with potential shortcomings of the IIV noted above, the
Commission concluded that ETFs will not be required to disseminate an
IIV under Rule 6c-11.\24\
---------------------------------------------------------------------------

    \21\ See Id., at 63.
    \22\ See Id., at 63.
    \23\ See Id., at 65.
    \24\ See Id., at 61.
---------------------------------------------------------------------------

    The Exchange generally agrees with the limitations and shortcomings
of IIV described in the Rule 6c-11 Release. The Exchange further agrees
with the conclusion of the Adopting Release that the ``IIV is not
necessary to support the arbitrage mechanism for ETFs that provide
daily portfolio holdings disclosure.'' The transparency that comes from
daily portfolio holdings disclosure as required under Rule 6c-11
provides market participants with sufficient information to facilitate
the intraday valuation of ETF Shares. The Exchange notes that it is not
proposing to prohibit the dissemination of an IIV for a series of ETF
Shares and believes that there are certain instances in which the
dissemination of an IIV could provide valuable information to the
investing public. The Exchange is simply not proposing to require the
dissemination of such information.
    As such, the Exchange believes that it is appropriate and
consistent with the Act to not include a requirement for the
dissemination of an IIV for a series of ETF Shares to be listed on the
Exchange.
Firewalls
    Both Rule 14.11(c) and Rule 14.11(i) require under certain
circumstances the implementation of firewalls between certain
affiliates and related employees as well as policies and procedures
designed to prevent the dissemination of material non-public
information.\25\ The Exchange fully supports the rationale underlying
these rules, but generally agrees with the sentiment expressed by the
Commission in the Rule 6c-11 Release that existing federal securities
laws adequately address concerns about dissemination and misuse of
material non-public information.\26\ The Exchange also further agrees
that issuers of ETF Shares are likely to be in a position to best
understand the circumstances and relationships that could give rise to
misuse of material non-public information and can develop appropriate
measures to address them.\27\ As such, the Exchange is not proposing to
include firewall or material non-public information policies and
procedures requirements in the generic listing standards for ETF Shares
because it believes that such issues are sufficiently addressed by
existing federal securities laws.
---------------------------------------------------------------------------

    \25\ See Rules 14.11(c)(3)(B)(i) and (iii), Rules
14.11(c)(4)(C)(i) and (iii), Rules 14.11(c)(5)(A)(i) and (iii), and
Rule 14.11(7).
    \26\ See 17 CFR 270.38a-1 (Rule 38a-1 under the 1940 Act)
(requiring funds to adopt policies and procedures reasonably
designed to prevent violation of federal securities laws); 17 CFR
270.17j-1(c)(1) (Rule 17j-1(c)(1) under the 1940 Act) (requiring
funds to adopt a code of ethics containing provisions designed to
prevent certain fund personnel (``access persons'') from misusing
information regarding fund transactions); Section 204A of the
Investment Advisers Act of 1940 (``Advisers Act'') (15 U.S.C. 80b-
204A) (requiring an adviser to adopt policies and procedures that
are reasonably designed, taking into account the nature of its
business, to prevent the misuse of material, non-public information
by the adviser or any associated person, in violation of the
Advisers Act or the Act, or the rules or regulations thereunder);
Section 15(g) of the Act (15 U.S.C. 78o(f)) (requiring a registered
broker or dealer to adopt policies and procedures reasonably
designed, taking into account the nature of the broker's or dealer's
business, to prevent the misuse of material, nonpublic information
by the broker or dealer or any person associated with the broker or
dealer, in violation of the Exchange Act or the rules or regulations
thereunder).
    \27\ See Rule 6c-11 Release at 25.
---------------------------------------------------------------------------

Discontinuing Quarterly Reporting for Managed Fund Shares
    Finally, the Exchange is proposing to eliminate certain quarterly
reporting obligations related to the listing and trading of Managed
Fund Shares on the Exchange. In the order approving the Exchange's
proposal to adopt generic listing standards for Managed Fund
Shares,\28\ the Commission noted that the Exchange had represented that
``on a quarterly basis, the Exchange will provide a report to the
Commission staff that contains, for each ETF whose shares are
generically listed and traded under BATS Rule 14.11(i): (a) Symbol and
date of listing; (b) the number of active authorized participants
(``APs'') and a description of any failure by either a fund or an AP to
deliver promised baskets of shares, cash, or

cash and instruments in connection with creation or redemption orders;
and (c) a description of any failure by an ETF to comply with BATS Rule
14.11(i).'' \29\ This reporting requirement is not specifically
enumerated in Rule 14.11(i).
---------------------------------------------------------------------------

    \28\ See Securities Exchange Act Release No. 78396 (July 22,
2016), 81 FR 49698 (July 28, 2016) (SR-BATS-2015-100) (the ``MFS
Approval Order'').
    \29\ See MFS Approval Order at footnote 14.
---------------------------------------------------------------------------

    The Exchange has provided such information to the Commission on a
quarterly basis since the MFS Approval Order was issued in 2016. The
type of information provided in the reports was created to provide a
window into the creation and redemption process for Managed Fund Shares
in order to ensure that the arbitrage mechanism would work as expected
for products that were listed pursuant to the newly approved generic
listing standards. In the Rule 6c-11 Release, the Commission concluded
that ``the arbitrage mechanism for existing actively managed ETFs has
worked effectively with small deviations between market price and NAV
per share.'' \30\ The Exchange generally agrees with this conclusion
and, while such quarterly reports were useful when Managed Fund Shares
were first able to be listed pursuant to generic listing standards, the
Exchange believes that such a window into the creation and redemption
process for Managed Fund Shares no longer provides useful information
related to the prevention of manipulation or protection of investors
which it was originally designed to provide. Further, because the same
general types of information provided in those reports will be made
available under Rule 6c-11 directly from the issuers of such securities
the Exchange also believes that it is consistent with the Act to remove
this reporting obligation because it will be duplicative and no longer
necessary.
---------------------------------------------------------------------------

    \30\ See Rule 6c-11 Release at 23.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \31\ in general and Section 6(b)(5) of the Act \32\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78f.
    \32\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that proposed Rule 14.11(l) is designed to
prevent fraudulent and manipulative acts and practices in that the
proposed rules relating to listing and trading ETF Shares on the
Exchange provide specific initial and continued listing criteria
required to be met by such securities. Proposed Rule 14.11(l)(4) sets
forth initial and continued listing criteria applicable to ETF Shares,
specifically providing that the Exchange may approve ETF Shares for
listing and/or trading (including pursuant to unlisted trading
privileges) on the Exchange pursuant to Rule 19b-4(e) under the Act so
long as such series of ETF Shares is eligible to operate in reliance on
Rule 6c-11 and meets all applicable requirements under such Rule 6c-11
upon initial listing and on a continuing basis. Proposed Rule
14.11(l)(4)(A)(i) provides that the Exchange will establish for each
series of ETF Shares a minimum number of shares required to be
outstanding at the time of commencement of trading on the Exchange.
Proposed Rule 14.11(l)(4)(A)(i) provides that the Exchange will obtain
a representation from the issuer of each series of ETF Shares stating
that the disclosures required under Rule 6c-11 of the Investment
Company Act of 1940 will be made available on a daily basis in
compliance with Rule 6c-11 and that the issuer will notify the Exchange
of any failure to do so.
    Proposed Rule 14.11(l)(4)(B)(i) provides that the Exchange will
consider the suspension of trading in, and will commence delisting
proceedings under Rule 14.12 for, a series of ETF Shares under any of
the following circumstances: (a) If the issuer of the ETF Shares has
failed to file any filings required by the Commission or if the
Exchange is aware that the issuer is not in compliance with the
requirements of Rule 6c-11 of the Investment Company Act of 1940; (b)
if any of the other listing requirements set forth in this Rule
14.11(l) are not continuously maintained; or (c) if such other event
shall occur or condition exists which, in the opinion of the Exchange,
makes further dealings on the Exchange inadvisable. Proposed Rule
14.11(l)(4)(B)(ii) provides that the Exchange may consider all relevant
factors in exercising its discretion to halt or suspend trading in a
series of ETF Shares. Trading may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which certain information about the ETF Shares that is required to be
disclosed under Rule 6c-11 is not being made available; or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. Finally, proposed
Rule 14.11(l)(4)(B)(iii) provides that, upon termination of an
investment company, the Exchange requires that ETF Shares issued in
connection with such entity be removed from Exchange listing.
    The Exchange further believes that proposed Rule 14.11(l) is
designed to prevent fraudulent and manipulative acts and practices
because of the robust surveillances in place on the Exchange as
required under proposed Rule 14.11(l)(2)(C) along with the similarities
of proposed Rule 14.11(l) to the rules related to other securities that
are already listed and traded on the Exchange and which would qualify
as ETF Shares. Proposed Rule 14.11(l) is based in large part on Rules
14.11(c) and (i) related to the listing and trading of Index Fund
Shares and Managed Fund Shares on the Exchange, respectively, both of
which are issued under the 1940 Act and would qualify as ETF Shares
after Rule 6c-11 is effective. Rule 14.11(c) and 14.11(i) are very
similar, their primary difference being that Index Fund Shares are
designed to track an underlying index and Managed Fund Shares are based
on an actively managed portfolio that is not designed to track an
index. As such, the Exchange believes that using the Current ETF
Standards as the basis for proposed Rule 14.11(l) is appropriate
because they are generally designed to address the issues associated
with ETF Shares. The only substantial differences between proposed Rule
14.11(l) and the Current ETF Standards that are not otherwise required
under Rule 6c-11 are as follows: (i) proposed Rule 14.11(l) does not
include the quantitative standards applicable to a fund or an index
that are included in the Current ETF Standards; (ii) proposed Rule
14.11(l) does not include any requirements related to the dissemination
of a fund's Intraday Indicative Value; \33\ (iii) and proposed Rule
14.11(l) does not include any specific requirements related to
``firewalls'' that need to be in place between certain parties
associated with a fund and their affiliates.
---------------------------------------------------------------------------

    \33\ For purposes of this filing, the term ``Intraday Indicative
Value'' or ``IIV'' shall mean an intraday estimate of the value of a
share of each series of either Index Fund Shares or Managed Fund
Shares.
---------------------------------------------------------------------------

Quantitative Standards
    The Exchange believes that the proposal is designed to prevent
fraudulent and manipulative acts and practices because the Exchange
will perform ongoing surveillance of ETF

Shares listed on the Exchange in order to ensure compliance with Rule
6c-11 and the 1940 Act on an ongoing basis. While proposed Rule
14.11(l) does not include the quantitative requirements applicable to a
fund and a fund's holdings or underlying index that are included in
Rules 14.(c) and 14.11(i),\34\ the Exchange believes that the
manipulation concerns that such standards are intended to address are
otherwise mitigated by a combination of the Exchange's surveillance
procedures, the Exchange's ability to halt trading under the proposed
Rule 14.11(l)(4)(B)(ii), and the Exchange's ability to suspend trading
and commence delisting proceedings under proposed Rule
14.11(l)(4)(B)(i). The Exchange also believes that such concerns are
further mitigated by enhancements to the arbitrage mechanism that will
come from Rule 6c-11, specifically the additional flexibility provided
to issuers of ETF Shares through the use of custom baskets for
creations and redemptions and the additional information made available
to the public through the additional Disclosure Obligations.\35\ The
Exchange believes that the combination of these factors will act to
keep ETF Shares trading near the value of their underlying holdings and
further mitigate concerns around manipulation of ETF Shares on the
Exchange without the inclusion of quantitative standards.\36\ The
Exchange will monitor for compliance with the 1940 Act generally as
well as Rule 6c-11 specifically in order to ensure that the continued
listing standards are being met. Specifically, the Exchange plans to
review the website of series of ETF Shares in order to ensure that the
disclosure requirements of Rule 6c-11 are being met and to review the
portfolio underlying series of ETF Shares listed on the Exchange in
order to ensure that certain investment requirements and limitations
under the 1940 Act are being met. The Exchange will also employ
numerous intraday alerts that will notify Exchange personnel of trading
activity throughout the day that is potentially indicative of certain
disclosures not being made accurately or the presence of other unusual
conditions or circumstances that could be detrimental to the
maintenance of a fair and orderly market. As a backstop to the
surveillances described above, the Exchange also notes that Rule
14.11(a) and proposed Rule 14.11(l)(4)(A)(ii) would require an issuer
of ETF Shares to notify the Exchange of any failure to comply with Rule
6c-11 or the 1940 Act.
---------------------------------------------------------------------------

    \34\ The Exchange notes that Rules 14.11(c) and (i) include
certain quantitative standards related to the size, trading volume,
concentration, and diversity of the holdings of a series of Index
Fund Shares or Managed Fund Shares (the ``Holdings Standards'') as
well as related to the minimum number of beneficial holders of a
fund (the ``Distribution Standards''). The Exchange believes that to
the extent that manipulation concerns are mitigated based on the
factors described herein, such concerns are mitigated both as it
relates to the Holdings Standards and the Distribution Standards.
    \35\ The Exchange notes that the Commission came to a similar
conclusion in several places in the Rule 6c-11 Release. See Rule 6c-
11 Release at 15-18; 60-61; 69-70; 78-79; 82-84; and 95-96.
    \36\ The Exchange believes that this applies to all quantitative
standards, whether applicable to the portfolio holdings of a series
of ETF Shares or the distribution of the ETF Shares.
---------------------------------------------------------------------------

    To the extent that any of the requirements under Rule 6c-11 or the
1940 Act are not being met, the Exchange may halt trading in a series
of ETF Shares as provided in proposed Rule 14.11(l)(4)(B)(ii).\37\
Further, the Exchange may also suspend trading in and commence
delisting proceedings for a series of ETF Shares where such series is
not in compliance with the applicable listing standards or where the
Exchange believes that further dealings on the Exchange are
inadvisable.\38\
---------------------------------------------------------------------------

    \37\ Specifically, proposed Rule 14.11(l)(4)(B)(ii) states that
the Exchange may consider all relevant factors in exercising its
discretion to halt or suspend trading in a series of ETF Shares.
Trading may be halted because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which certain
information about the ETF Shares that is required to be disclosed
under Rule 6c-11 of the Investment Company Act of 1940 is not being
made available; or (2) whether other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.
    \38\ Specifically, proposed Rule 14.11(l)(4)(B)(i), provides
that if a series of ETF Shares is not in compliance with the
applicable listing requirements, including: (a) If the issuer of the
ETF Shares has failed to file any filings required by the Commission
or if the Exchange is aware that the issuer is not in compliance
with the requirements of Rule 6c-11 of the Investment Company Act of
1940; (b) if any of the other listing requirements set forth in this
Rule 14.11(l) are not continuously maintained; or (c) if such other
event shall occur or condition exists which, in the opinion of the
Exchange, makes further dealings on the Exchange inadvisable, the
Exchange will commence delisting procedures under Rule 14.12.
---------------------------------------------------------------------------

    Further, the Exchange also represents that its surveillance
procedures are adequate to properly monitor the trading of the ETF
Shares in all trading sessions and to deter and detect violations of
Exchange rules. Specifically, the Exchange intends to utilize its
existing surveillance procedures applicable to derivative products,
which are currently applicable to Index Fund Shares and Managed Fund
Shares, among other product types, to monitor trading in ETF Shares.
The Exchange or FINRA, on behalf of the Exchange, will communicate as
needed regarding trading in ETF Shares and certain of their applicable
underlying components with other markets that are members of the ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement. In addition, the Exchange may obtain information
regarding trading in ETF Shares and certain of their applicable
underlying components from markets and other entities that are members
of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. Additionally, FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income securities that may be held by a series of ETF Shares
reported to FINRA's TRACE. FINRA also can access data obtained from the
MSRB's EMMA system relating to municipal bond trading activity for
surveillance purposes in connection with trading in a series of ETF
Shares, to the extent that a series of ETF Shares holds municipal
securities. Finally, as noted above, the issuer of a series of ETF
Shares will be required to comply with Rule 10A-3 under the Act for the
initial and continued listing of Exchange-Traded Fund Shares, as
provided under Rule 14.10(e)(1)(E).
Intraday Indicative Value
    As described above, proposed Rule 14.11(l) does not include any
requirements related to the dissemination of an Intraday Indicative
Value. Both Rule 14.11(c) and Rule 14.11(i) include the requirement
that a series of Index Fund Shares and Managed Fund Shares,
respectively, disseminate and update an Intraday Indicative Value at
least every 15 seconds.\39\ Historically (and theoretically), the IIV
could provide valuable information about an ETF that would not
otherwise be available or easily calculable. However, as consistently
highlighted in the Rule 6c-11 Release, that is not reflective of the
current marketplace and the Commission has expressed concerns regarding
the accuracy of IIV estimates for certain ETFs. Specifically, the
Commission noted that an IIV may not accurately reflect the value of an
ETF that holds securities that trade less frequently as such IIV can be
stale or

inaccurate.\40\ Additionally, the Commission indicated that even in
circumstances when an IIV may be reliable, retail investors do not have
easy access to free, publicly available IIV information.\41\ Further,
in instances when IIV may be free and publicly available, it can be
delayed by up to 45 minutes.\42\
---------------------------------------------------------------------------

    \39\ See Rules 14.11(c)(3)(C), 14.11(c)(6)(A), and
14.11(c)(9)(B)(e) related to Index Fund Shares and Rules
14.11(i)(3)(C), 14.11(i)(4)(B)(i), 14.11(i)(4)(B)(iii)(b), and
14.11(i)(4)(B)(iv) related to Managed Fund Shares.
    \40\ See Rule 6c-11 Release at 62.
    \41\ See Id., at 66.
    \42\ See Id.
---------------------------------------------------------------------------

    Aside from the fact that the disseminated IIV may provide investors
with stale or misleading data, the Commission also stated that market
makers and authorized participants typically calculate their own
intraday value of an ETF's portfolio with proprietary algorithms that
use an ETF's daily portfolio disclosure and available pricing
information.\43\ Such information allows those market participants to
support the arbitrage mechanism for ETFs. Therefore, as market
participants who engage in arbitrage typically calculate their own
intraday value of an ETF's portfolio based on the ETF's daily portfolio
disclosure and pricing information and use an IIV only as a secondary
check to their own calculation,\44\ the Commission noted that IIV was
not necessary to support the arbitrage mechanism.\45\ Given this,
combined with potential shortcomings of the IIV noted above, the
Commission concluded that ETFs will not be required to disseminate an
IIV under Rule 6c-11.\46\
---------------------------------------------------------------------------

    \43\ See Id., at 63.
    \44\ See Id., at 63.
    \45\ See Id., at 65.
    \46\ See Id., at 61.
---------------------------------------------------------------------------

    The Exchange generally agrees with the limitations and shortcomings
of IIV described in the Rule 6c-11 Release. The Exchange further agrees
with the conclusion of the Adopting Release that the ``IIV is not
necessary to support the arbitrage mechanism for ETFs that provide
daily portfolio holdings disclosure.'' The transparency that comes from
daily portfolio holdings disclosure as required under Rule 6c-11
provides market participants with sufficient information to facilitate
the intraday valuation of ETF Shares. The Exchange notes that it is not
proposing to prohibit the dissemination of an IIV for a series of ETF
Shares and believes that there are certain instances in which the
dissemination of an IIV could provide valuable information to the
investing public. The Exchange is simply not proposing to require the
dissemination of such information.
    As such, the Exchange believes that it is appropriate and
consistent with the Act to not include a requirement for the
dissemination of an IIV for a series of ETF Shares to be listed on the
Exchange.
Firewalls
    Both Rule 14.11(c) and Rule 14.11(i) require under certain
circumstances the implementation of firewalls between certain
affiliates and related employees as well as policies and procedures
designed to prevent the dissemination of material non-public
information.\47\ The Exchange fully supports the rationale underlying
these rules, but generally agrees with the sentiment expressed by the
Commission in the Rule 6c-11 Release that existing federal securities
laws adequately address concerns about dissemination and misuse of
material non-public information.\48\ The Exchange also further agrees
that issuers of ETF Shares are likely to be in a position to best
understand the circumstances and relationships that could give rise to
misuse of material non-public information and can develop appropriate
measures to address them.\49\ As such, the Exchange is not proposing to
include firewall or material non-public information policies and
procedures requirements in the generic listing standards for ETF Shares
because it believes that such issues are sufficiently addressed by
existing federal securities laws. With this in mind, the Exchange
further believes that proposed Rule 14.11(l) is consistent with the Act
and is designed to prevent fraudulent and manipulative acts and
practices.
---------------------------------------------------------------------------

    \47\ See Rules 14.11(c)(3)(B)(i) and (iii), Rules
14.11(c)(4)(C)(i) and (iii), Rules 14.11(c)(5)(A)(i) and (iii), and
Rule 14.11(7).
    \48\ See 17 CFR 270.38a-1 (Rule 38a-1 under the 1940 Act)
(requiring funds to adopt policies and procedures reasonably
designed to prevent violation of federal securities laws); 17 CFR
270.17j-1(c)(1) (Rule 17j-1(c)(1) under the 1940 Act) (requiring
funds to adopt a code of ethics containing provisions designed to
prevent certain fund personnel (``access persons'') from misusing
information regarding fund transactions); Section 204A of the
Investment Advisers Act of 1940 (``Advisers Act'') (15 U.S.C. 80b-
204A) (requiring an adviser to adopt policies and procedures that
are reasonably designed, taking into account the nature of its
business, to prevent the misuse of material, non-public information
by the adviser or any associated person, in violation of the
Advisers Act or the Act, or the rules or regulations thereunder);
Section 15(g) of the Act (15 U.S.C. 78o(f)) (requiring a registered
broker or dealer to adopt policies and procedures reasonably
designed, taking into account the nature of the broker's or dealer's
business, to prevent the misuse of material, nonpublic information
by the broker or dealer or any person associated with the broker or
dealer, in violation of the Exchange Act or the rules or regulations
thereunder).
    \49\ See Rule 6c-11 Release at 25.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed rule change is
designed to promote just and equitable principles of trade and to
protect investors and the public interest in that the Exchange will
obtain a representation from the issuer of each series of ETF Shares
stating that the Disclosure Requirements under Rule 6c-11 of the
Investment Company Act of 1940 will be made available on a daily basis
in compliance with Rule 6c-11 and that the issuer will notify the
Exchange of any failure to do so. In addition, a large amount of
information will be publicly available regarding the Funds and the
Shares, thereby promoting market transparency. Quotation and last sale
information for ETF Shares will be available via the CTA high-speed
line. The website for each series of ETF Shares will include a form of
the prospectus for the Fund that may be downloaded, and additional data
relating to NAV and other applicable quantitative information, updated
on a daily basis. Moreover, prior to the commencement of trading, the
Exchange will inform its members in a circular of the special
characteristics and risks associated with trading in the series of ETF
Shares. As noted above, series of ETF Shares will not be required to
publicly disseminate an IIV. The Exchange continues to believe that
this proposal is consistent with the Act and is designed to promote
just and equitable principles of trade and to protect investors and the
public interest because the transparency that comes from daily
portfolio holdings disclosure as required under Rule 6c-11 provides
market participants with sufficient information to facilitate the
intraday valuation of ETF Shares, rendering the dissemination of the
IIV unnecessary.
    The Exchange notes that it is not proposing to prohibit the
dissemination of an IIV for a series of ETF Shares and believes that
there could be certain instances in which the dissemination of an IIV
could provide valuable information to the investing public. The
Exchange proposes to leave that decision to an issuer of ETF Shares and
is simply not proposing to require the dissemination of an IIV.
    Based on the foregoing discussion regarding proposed Rule 14.11(l)
and its similarities to and differences between the Current ETF
Standards, the Exchange believes that the proposal is consistent with
the Act and is designed to prevent fraudulent and manipulative
transactions and that the manipulation concerns that the quantitative
standards, the IIV, and the firewall requirements are designed to
address are otherwise mitigated by the proposal and the new Disclosure
Obligations and flexibility under Rule 6c-11.

    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
ETF Shares in a manner that will enhance competition among market
participants, to the benefit of investors and the marketplace. The
Exchange believes that approval of this proposal will streamline
current procedures, reduce the costs and timeline associated with
bringing ETFs to market, and provide significantly greater regulatory
certainty to potential issuers considering bringing ETF Shares to
market, thereby enhancing competition among ETF issuers and reducing
costs for investors.\50\
---------------------------------------------------------------------------

    \50\ In approving the rule, the Commission stated that the
``rule will modernize the regulatory framework for ETFs to reflect
our more than two decades of experience with these investment
products. The rule is designed to further important Commission
objectives, including establishing a consistent, transparent, and
efficient regulatory framework for ETFs and facilitating greater
competition and innovation among ETFs.'' Rule 6c-11 Release, at
57163. The Commission also stated the following regarding the rule's
impact: ``We believe rule 6c-11 will establish a regulatory
framework that: (1) Reduces the expense and delay currently
associated with forming and operating certain ETFs unable to rely on
existing orders; and (2) creates a level playing field for ETFs that
can rely on the rule. As such, the rule will enable increased
product competition among certain ETF providers, which can lead to
lower fees for investors, encourage financial innovation, and
increase investor choice in the ETF market.'' Rule 6c-11 Release, at
57204.
---------------------------------------------------------------------------

    The Exchange also believes that the non-substantive change to amend
Rule 14.10(e)(1)(E) in order to add ETF Shares to a list of product
types listed on the Exchange, including Index Fund Shares and Managed
Fund Shares, that are exempted from the Audit Committee requirements
set forth in Rule 14.10(c)(3), except for the applicable requirements
of SEC Rule 10A-3 because it is a non-substantive change meant only to
subject ETF Shares to the same corporate governance requirements
currently applicable to Index Fund Shares and Managed Fund Shares. The
Exchange also believes that the non-substantive change to amend Rule
14.11(c)(3)(A)(i)(a) in order to include ETF Shares in the definition
of Derivative Securities Products is also a non-substantive change
because it is just intended to add ETF Shares to a definition that
includes Index Fund Shares and Managed Fund Shares in order to make
sure that ETF Shares are treated consistently with Index Fund Shares
and Managed Fund Shares throughout the Exchange's rules.
    Finally, the Exchange believes that eliminating the quarterly
reporting requirement for Managed Fund Shares is designed to prevent
fraudulent and manipulative acts and practices and, in general, to
protect investors and the public interest because the report no longer
serves the purpose for which it was originally intended. The type of
information provided in the reports was created to provide a window
into the creation and redemption process for Managed Fund Shares in
order to ensure that the arbitrage mechanism would work as expected for
products that were listed pursuant to the newly approved generic
listing standards. In the Rule 6c-11 Release, the Commission concluded
that ``the arbitrage mechanism for existing actively managed ETFs has
worked effectively with small deviations between market price and NAV
per share.'' \51\ The Exchange generally agrees with this conclusion
and, while such quarterly reports were useful when Managed Fund Shares
were first able to be listed pursuant to generic listing standards, the
Exchange believes that such a window into the creation and redemption
process for Managed Fund Shares no longer provides useful information
related to the prevention of manipulation or protection of investors
which it was originally designed to provide. Further, because the same
general types of information provided in those reports will be made
available under Rule 6c-11 directly from the issuers of such securities
the Exchange also believes that it is consistent with the Act to remove
this reporting obligation because it will be duplicative and no longer
necessary.
---------------------------------------------------------------------------

    \51\ See Rule 6c-11 Release at 23.
---------------------------------------------------------------------------

    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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 purpose of the Act. To the contrary, the Exchange
believes that the proposed rule change would enhance competition by
streamlining current procedures, reducing the costs and timeline
associated with bringing ETFs to market, and providing significantly
greater regulatory certainty to potential issuers considering bringing
ETF Shares to market, all of which the Exchange believes would enhance
competition among ETF issuers and reduce costs for investors. The
Exchange also believes that the proposed change would make enhance
competition among ETF Shares by ensuring the application of uniform
listing standards.

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 or disapprove 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 email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2019-097 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-CboeBZX-2019-097. 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 website (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 website 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 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-CboeBZX-2019-097, and should
be submitted on or before December 13, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\52\
---------------------------------------------------------------------------

    \52\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-25317 Filed 11-21-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Pages 15045-15046]
[FR Doc No: 2011-6380]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2011-0033; Notice 1]

Goodyear Tire and Rubber Company, Receipt of Petition for
Decision of Inconsequential Noncompliance

    Goodyear Tire and Rubber Company, (Goodyear),\1\ has determined
that approximately 26,224 Goodyear Assurance ComforTred Touring
passenger replacement car tires manufactured between January 4, 2010
and September 11, 2010, do not fully comply with paragraph S5.5(e) of
Federal Motor Vehicle Safety Standard (FMVSS) No. 139, New Pneumatic
Radial Tires for Light Vehicles. Goodyear has filed an appropriate
report pursuant to 49 CFR part 573, Defect and Noncompliance
Responsibility and Reports, dated December 16, 2010.
---------------------------------------------------------------------------

    \1\ Goodyear Tire and Rubber Company (Goodyear) is a replacement
equipment manufacturer incorporated in the state of Ohio.
---------------------------------------------------------------------------

    Pursuant to 49 U.S.C. 30118(d) and 30120(h) (see implementing rule
at 49 CFR part 556), Goodyear has petitioned for an exemption from the
notification and remedy requirements of 49 U.S.C. Chapter 301 on the
basis that this noncompliance is inconsequential to motor vehicle
safety.
    This notice of receipt of Goodyear's petition is published under 49
U.S.C. 30118 and 30120 and does not represent any agency decision or
other exercise of judgment concerning the merits of the petition.
    Affected are approximately 26,224 Goodyear Assurance ComforTred
Touring passenger car replacement tires, size 215/70R15 that were
manufactured between January 4, 2010 and September 11, 2010.
    NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and
30120(h)) that permit manufacturers to file petitions for a
determination of inconsequentiality allow NHTSA to exempt manufacturers
only from the duties found in sections 30118 and 30120, respectively,
to notify owners, purchasers, and dealers of a defect or noncompliance
and to remedy the defect or noncompliance. Therefore, these provisions
only apply to the 26,224 \2\ tires that have already passed from the
manufacturer to an owner, purchaser, or dealer.
---------------------------------------------------------------------------

    \2\ Goodyear's petition, which was filed under 49 CFR part 556,
requests an agency decision to exempt Goodyear as a replacement
equipment manufacturer from the notification and recall
responsibilities of 49 CFR part 573 for 26,224 of the affected
tires. However, the agency cannot relieve Goodyear distributors of
the prohibitions on the sale, offer for sale, or introduction or
delivery for introduction into interstate commerce of the
noncompliant tires under their control after Goodyear recognized
that the subject noncompliance existed. Those tires must be brought
into conformance, exported, or destroyed.
---------------------------------------------------------------------------

    Paragraph S5.5(e) of FMVSS No. 139 require in pertinent part:

    S5.5 Tire markings. Except as specified in paragraphs (a)
through (i) of S5.5, each tire must be marked on each sidewall with
the information specified in S5.5(a) through (d) and on one sidewall
with the information specified in S5.5(e) through (i) according to
the phase-in schedule specified in S7 of this standard. The markings
must be placed between the maximum section width and the bead on at
least one sidewall, unless the maximum section width of the tire is
located in an area that is not more than one-fourth of the distance
from the bead to the shoulder of the tire. If the maximum section
width falls within that area, those markings must appear between the
bead and a point one-half the distance from the bead to the shoulder
of the tire, on at least one sidewall. The markings must be in
letters and numerals not less than 0.078 inches high and raised
above or sunk below the tire surface not less than 0.015 inches * *
*

    (e) The generic name of each cord material used in the plies
(both side-wall and tread area) of the tire; * * *

    Goodyear explains that the noncompliance is that, due to a mold
labeling error, the sidewall marking on the reference side of the tires
incorrectly describes the generic name of the cord material in the
tread area of the tires as required by paragraph S5.5(e). Specifically,
the tires in question were inadvertently manufactured with ``Tread: 1
Polyester Cord + 2 Steel Cords + 1 Polyester Cord. The labeling should
have been ``Tread: 1 Polyester Cord + 2 Steel Cords + 1 Nylon Cord.''
    Goodyear argues that this noncompliance is inconsequential to motor
vehicle safety because while the non-compliant tires are mislabeled
they meet or exceed all applicable Federal Motor Vehicle Safety
Standards, the noncompliant sidewall marking does not create an unsafe
condition, and all other labeling requirements have been met.
    Goodyear points out that NHTSA has previously granted similar
petitions for non-compliances in sidewall marking.
    Goodyear additionally states that it has corrected the affected
tire molds and all future production will have the correct material
shown on the sidewall.
    In summation, Goodyear believes that the described noncompliance of
its tires to meet the requirements of FMVSS No. 139 is inconsequential
to motor vehicle safety, and that its petition, to exempt from
providing recall notification of noncompliance as required by 49 U.S.C.
30118 and remedying the recall noncompliance as required by 49 U.S.C.
30120, and should be granted.
    Interested persons are invited to submit written data, views, and
arguments on this petition. Comments must refer to the docket and
notice number cited at the beginning of this notice and be submitted by
any of the following methods:
    a. By mail addressed to: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
    b. By hand delivery to U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590. The Docket Section is open on
weekdays from 10 a.m. to 5 p.m. except Federal Holidays.
    c. Electronically: by logging onto the Federal Docket Management
System (FDMS) Web site at http://www.regulations.gov/. Follow the
online instructions for submitting comments. Comments may also be faxed
to 1-202-493-2251.
    Comments must be written in the English language, and be no greater
than 15 pages in length, although there is no limit to the length of
necessary attachments to the comments. If comments are submitted in
hard copy form, please ensure that two copies are provided. If you wish
to receive confirmation that your comments were received, please
enclose a stamped, self-addressed postcard with the comments. Note that
all comments received will be posted without change to http://www.regulations.gov, including any personal information provided.
    Documents submitted to a docket may be viewed by anyone at the
address and times given above. The documents may also be viewed on the
Internet at http://www.regulations.gov by following the online
instructions for accessing the dockets. DOT's complete Privacy Act
Statement is available for review in the Federal Register published on
April 11, 2000, (65 FR 19477-78).
    The petition, supporting materials, and all comments received
before the close of business on the closing date indicated below will
be filed and will be considered. All comments and supporting materials
received after the closing date will also be filed and will be
considered to the extent possible. When the petition is granted or
denied, notice of the decision will be published in the Federal
Register pursuant to the authority indicated below.
    Comment closing date: April 18, 2011.

    Authority: 49 U.S.C. 30118, 30120: delegations of authority at
CFR 1.50 and 501.8.

    Issued on: March 14, 2011.
Claude H. Harris,
Acting Associate Administrator for Enforcement.
[FR Doc. 2011-6380 Filed 3-17-11; 8:45 am]
BILLING CODE 4910-59-P


[Federal Register: September 3, 2009 (Volume 74, Number 170)]
[Proposed Rules]
[Page 45575-45576]
[DOCID:fr03se09-14]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2009-0696; Airspace Docket No. 09-AGL-18]

Proposed Amendment of Class E Airspace; West Branch, MI

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend Class E airspace at West Branch,
MI. Additional controlled airspace is necessary to accommodate new
Standard Instrument Approach Procedures (SIAPs) at West Branch
Community Airport, West Branch, MI. The FAA is taking this action to
enhance the safety and management of Instrument Flight Rules (IFR)
operations for SIAPs at West Branch Community Airport.

DATES: Comments must be received on or before October 19, 2009.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue, SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590-0001. You
must identify the docket number FAA-2009-0696/Airspace Docket No. 09-
AGL-18, at the beginning of your comments. You may also submit comments
through the Internet at http://www.regulations.gov. You may review the
public docket containing the proposal, any comments received, and any
final disposition in person in the Dockets Office between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The Docket Office
(telephone 1-800-647-5527), is on the ground floor of the building at
the above address.

FOR FURTHER INFORMATION CONTACT: Scott Enander, Central Service Center,
Operations Support Group, Federal Aviation Administration, Southwest
Region, 2601 Meacham Blvd., Fort Worth, TX 76137; telephone: (817) 321-
7716.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory

decisions on the proposal. Comments are specifically invited on the
overall regulatory, aeronautical, economic, environmental, and energy-
related aspects of the proposal. Communications should identify both
docket numbers and be submitted in triplicate to the address listed
above. Commenters wishing the FAA to acknowledge receipt of their
comments on this notice must submit with those comments a self-
addressed, stamped postcard on which the following statement is made:
``Comments to Docket No. FAA-2009-0696/Airspace Docket No. 09-AGL-18.''
The postcard will be date/time stamped and returned to the commenter.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://
www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_
amendments/.
    Additionally, any person may obtain a copy of this notice by
submitting a request to the Federal Aviation Administration (FAA),
Office of Air Traffic Airspace Management, ATA-400, 800 Independence
Avenue, SW., Washington, DC 20591, or by calling<PHONE_NUMBER>.
Communications must identify both docket numbers for this notice.
Persons interested in being placed on a mailing list for future NPRMs
should contact the FAA's Office of Rulemaking<PHONE_NUMBER>, to
request a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

The Proposal

    This action proposes to amend Title 14, Code of Federal Regulations
(14 CFR), Part 71 by adding additional Class E airspace extending
upward from 700 feet above the surface for SIAPs operations at West
Branch Community Airport, West Branch, MI. Controlled airspace is
needed for the safety and management of IFR operations at the airport.
    Class E airspace areas are published in Paragraph 6005 of FAA Order
7400.9S, dated October 3, 2008, and effective October 31, 2008, which
is incorporated by reference in 14 CFR 71.1. The Class E airspace
designation listed in this document would be published subsequently in
the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore, (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);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, will not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the U.S. Code. Subtitle 1, Section 106 describes
the authority of the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would add additional controlled airspace at West Branch Community
Airport, West Branch, MI.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

    1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of FAA Order
7400.9S, Airspace Designations and Reporting Points, dated October 3,
2008, and effective October 31, 2008, is amended as follows:

Paragraph 6005 Class E Airspace areas extending upward from 700
feet or more above the surface of the earth.

* * * * *

AGL MI E5 West Branch, MI [Amended]

West Branch Community Airport, MI
    (Lat. 44[deg]14'41'' N., long. 84[deg]10'47'' W.)

    That airspace extending upward from 700 feet above the surface
within a 7-mile radius of West Branch Community Airport and within
2.7 miles each side of the 086[deg] bearing from the airport
extending from the 7-mile radius to 11.4 miles east of the airport;
and within 4 miles each side of the 269[deg] bearing from the
airport extending from the 7-mile radius to 11.5 miles west of the
airport.
* * * * *

    Issued in Fort Worth, TX, on August 25, 2009.
Ronnie L. Uhlenhaker,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. E9-21265 Filed 9-2-09; 8:45 am]

BILLING CODE 4901-13-P