[Federal Register: May 20, 2009 (Volume 74, Number 96)]
[Proposed Rules]
[Page 23671-23674]
[DOCID:fr20my09-25]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0463; Directorate Identifier 2008-NM-065-AD]
RIN 2120-AA64

Airworthiness Directives; BAE Systems (Operations) Limited
(Jetstream) Model 4101 Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for the
products listed above. This proposed AD results from mandatory
continuing airworthiness information (MCAI) originated by an aviation
authority of another country to identify and correct an unsafe
condition on an aviation product. The MCAI describes the unsafe
condition as:

    A failure mode has been identified that can lead to loss of a
nose wheel. Any combination of excessive wear and/or adverse
tolerances on the axle inner cone, outer cone or wheel hub splined
sleeve cones can result in the loss of the critical gap between the
inner flange face of the wheel outer cone and the axle end face. If
this gap is lost, it can result in the wheel having free play along
the length of the axle. This condition, if not corrected, can result
in breakage of the wheel nut lock plate leading to unscrewing of the
wheel retention nut and

subsequent separation of the nose wheel from the landing gear axle.

* * * * *
    The proposed AD would require actions that are intended to address
the unsafe condition described in the MCAI.

DATES: We must receive comments on this proposed AD by June 19, 2009.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-40, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact BAE
Systems Regional Aircraft, 13850 McLearen Road, Herndon, Virginia
20171; telephone<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
Internet http://www.baesystems.com/Businesses/RegionalAircraft/
index.htm. You may review copies of the referenced service information
at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW.,
Renton, Washington. For information on the availability of this
material at the FAA, call<PHONE_NUMBER> or<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 Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Operations office (telephone<PHONE_NUMBER>) is
in the ADDRESSES section. Comments will be available in the AD docket
shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Todd Thompson, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-1175; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2009-0463;
Directorate Identifier 2008-NM-065-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued EASA
Airworthiness Directive 2008-0036, dated February 22, 2008 (referred to
after this as ``the MCAI''), to correct an unsafe condition for the
specified products. The MCAI states:

    A failure mode has been identified that can lead to loss of a
nose wheel. Any combination of excessive wear and/or adverse
tolerances on the axle inner cone, outer cone or wheel hub splined
sleeve cones can result in the loss of the critical gap between the
inner flange face of the wheel outer cone and the axle end face. If
this gap is lost, it can result in the wheel having free play along
the length of the axle. This condition, if not corrected, can result
in breakage of the wheel nut lock plate leading to unscrewing of the
wheel retention nut and subsequent separation of the nose wheel from
the landing gear axle.
    For the reasons described above, this AD requires repetitive
inspections of the nose landing gear to ensure that the wheels are
correctly retained and, depending on findings, replacement of worn
parts.

    Required actions include inspecting the lock plate for damage
(including excessive wear) and cracking, and replacing the lock plate
with a new or serviceable part if any damage or cracking is found;
inspecting the wheel nut for damage, and replacing any damaged nut with
a new or serviceable part; and measuring the gap between the inner
flange of the outer cone (at each of the three sections) and the end
face of the axle to determine if parts are worn, and replacing worn
parts with new or serviceable parts.
    You may obtain further information by examining the MCAI in the AD
docket.

Relevant Service Information

    BAE Systems (Operations) Limited has issued Service Bulletin J41-
32-086, dated June 27, 2007. The actions described in this service
information are intended to correct the unsafe condition identified in
the MCAI.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of the same
type design.

Differences Between This AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have proposed different actions in this AD from those
in the MCAI in order to follow FAA policies. Any such differences are
highlighted in a Note within the proposed AD.

Costs of Compliance

    Based on the service information, we estimate that this proposed AD
would affect about 7 products of U.S. registry. We also estimate that
it would take about 4 work-hours per product to comply with the basic
requirements of this proposed AD. The average labor rate is $80 per
work-hour. Based on these figures, we estimate the cost of the proposed
AD on U.S. operators to be $2,240, or $320 per product.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII,

Part A, Subpart III, Section 44701: General requirements.'' Under that
section, Congress charges the FAA with promoting safe flight of civil
aircraft in air commerce by prescribing regulations for practices,
methods, and procedures the Administrator finds necessary for safety in
air commerce. This regulation is within the scope of that authority
because it addresses an unsafe condition that is likely to exist or
develop on products identified in this rulemaking action.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would 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 this proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

    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]

    2. The FAA amends Sec.  39.13 by adding the following new AD:

BAE Systems (Operations) Limited (Formerly British Aerospace
Regional Aircraft): Docket No. FAA-2009-0463; Directorate Identifier
2008-NM-065-AD.

Comments Due Date

    (a) We must receive comments by June 19, 2009.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to BAE Systems (Operations) Limited Model
Jetstream 4101 airplanes, certificated in any category, all models,
all serial numbers.

Subject

    (d) Air Transport Association (ATA) of America Code 32: Landing
Gear.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:
    A failure mode has been identified that can lead to loss of a
nose wheel. Any combination of excessive wear and/or adverse
tolerances on the axle inner cone, outer cone or wheel hub splined
sleeve cones can result in the loss of the critical gap between the
inner flange face of the wheel outer cone and the axle end face. If
this gap is lost, it can result in the wheel having free play along
the length of the axle. This condition, if not corrected, can result
in breakage of the wheel nut lock plate leading to unscrewing of the
wheel retention nut and subsequent separation of the nose wheel from
the landing gear axle.
    For the reasons described above, this AD requires repetitive
inspections of the nose landing gear to ensure that the wheels are
correctly retained and, depending on findings, replacement of worn
parts.
    Required actions include inspecting the lock plate for damage
(including excessive wear) and cracking, and replacing the lock
plate with a new or serviceable part if any damage or cracking is
found; inspecting the wheel nut for damage, and replacing any
damaged nut with a new or serviceable part; and measuring the gap
between the inner flange of the outer cone (at each of the three
sections) and the end face of the axle to determine if parts are
worn, and replacing worn parts with new or serviceable parts.

Actions and Compliance

    (f) Unless already done, do the following actions for the left
and right nose wheel attachments to the axle.
    (1) Within 3 months after the effective date of this AD, inspect
the lock plate for damage (including excessive wear) and cracking,
inspect the wheel nut for damage, and measure the gap between the
inner flange of the outer cone and the end face of the axle to
determine if parts are worn, in accordance with paragraph 2.B. of
BAE Systems (Operations) Limited Service Bulletin J41-32-086, dated
June 27, 2007.
    (2) If, during any inspection required by paragraph (f)(1) of
this AD, any damage or cracking of the lock plate is found, before
further flight, replace the lock plate with a new or serviceable
part, in accordance with paragraph 2.B. of BAE Systems (Operations)
Limited Service Bulletin J41-32-086, dated June 27, 2007.
    (3) If, during any inspection required by paragraph (f)(1) of
this AD, any damage of the wheel nut is found, before further
flight, replace the wheel nut with a new or serviceable part, in
accordance with paragraph 2.B. of BAE Systems (Operations) Limited
Service Bulletin J41-32-086, dated June 27, 2007.
    (4) If, during any measurement required by paragraph (f)(1) of
this AD, the measured gap size is found to be less than 0.002 inch
(0.05 mm), before further flight, replace any worn parts with new or
serviceable parts, in accordance with paragraph 2.B. of BAE Systems
(Operations) Limited Service Bulletin J41-32-086, dated June 27,
2007. Within 3,000 flight hours after doing the replacement, repeat
the actions for the left and right nose wheel attachments to the
axle that are required by paragraph (f)(1) of this AD.
    (5) If, during any measurement required by paragraph (f)(1) of
this AD, the measured gap size is equal to or more than 0.002 inch
(0.05 mm), repeat the actions for the left and right nose wheel
attachments to the axle that are required by paragraph (f)(1) of
this AD thereafter at intervals not to exceed the value indicated in
Table 1 of this AD, depending on the exact finding. If, during any
repeat inspection, the finding has changed to another value (see
Table 1), adjust the new interval accordingly.

                  Table 1--Repeat Inspection Intervals
------------------------------------------------------------------------
                                             Repeat inspection interval
             Measured gap size                     in flight hours
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0.002 inch to 0.005 inch inclusive (0.05/   500 flight hours.
 0.13 mm).
Greater than 0.005 inch to less than or     1,000 flight hours.
 equal to 0.010 inch (0.13/0.25 mm).
Greater than 0.010 inch to less than or     2,000 flight hours.
 equal to 0.020 inch (0.25/0.51 mm).
Greater than 0.020 inch (0.51 mm).........  3,000 flight hours.
------------------------------------------------------------------------

    Note 1:  Replacement of parts does not constitute terminating
action for the inspection requirements of this AD.

FAA AD Differences

    Note 2:  This AD differs from the MCAI and/or service
information as follows: Although BAE Systems (Operations) Limited
Service Bulletin J41-32-086, dated June 27, 2007, does not specify
an inspection following the replacement of the left and right nose
wheel attachment to the axle for measurements less than 0.002 inch,
paragraph (f)(4) of this AD requires an inspection within 3,000
flight hours after replacing the part.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, FAA, has the authority to approve

AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. Send information to ATTN: Todd Thompson, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone
(425) 227-1175; fax<PHONE_NUMBER>. Before using any approved AMOC
on any airplane to which the AMOC applies, notify your principal
maintenance inspector (PMI) or principal avionics inspector (PAI),
as appropriate, or lacking a principal inspector, your local Flight
Standards District Office.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI European Aviation Safety Agency (EASA)
Airworthiness Directive 2008-0036, dated February 22, 2008; and BAE
Systems (Operations) Limited Service Bulletin J41-32-086, dated June
27, 2007; for related information.

    Issued in Renton, Washington, on May 7, 2009.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-11710 Filed 5-19-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 53 (Thursday, March 19, 2015)]
[Notices]
[Pages 14425-14426]
[FR Doc No: 2015-06285]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74509; File No. SR-MIAX-2015-04]

Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Order Approving a Proposed Rule Change To Amend MIAX Rule
402

March 13, 2015.

I. Introduction

    On January 16, 2015, Miami International Securities Exchange LLC
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend its listing standards
under Exchange Rule 402 to eliminate a requirement that the Exchange
obtain a comprehensive surveillance sharing agreement (``CSSA'') before
listing and trading options that overlie certain exchange-traded fund
shares (``ETFs''), provided such ETFs are listed pursuant to generic
listing standards on an equities exchange for portfolio depositary
receipts and index fund shares based on international or global indexes
under which a CSSA with a foreign market is not required. The proposed
rule change was published for comment in the Federal Register on
January 30, 2015.\3\ The Commission received one comment letter
supporting the proposed rule change.\4\ This order approves the
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 74131 (January 26,
2015), 80 FR 5161 (SR-MIAX-2015-04) (``Notice'').
    \4\ See Letter to Brent J. Fields, Secretary, Commission, from
Elizabeth King, Secretary and General Counsel, New York Stock
Exchange, dated February 6, 2015 (``NYSE Letter'') (stating that
``NYSE Group agrees with . . . and is supportive of MIAX's efforts
to make options available as a risk management tool for those ETFs
listed on an equities exchange pursuant to generic listing standards
without the requirement for a CSSA'').
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II. Description of the Proposal

    The Exchange allows for the listing and trading of options on ETFs
that satisfy certain listing standards.\5\ These rules require, in
part, that (i) any non-U.S. component securities of an index or
portfolio of securities on which the ETFs are based that are not
subject to CSSAs do not in the aggregate represent more than 50% of the
weight of the index or portfolio; \6\ (ii) component securities of an
index or portfolio of securities on which the ETFs are based for which
the primary market is in any one country that is not subject to a CSSA
do not represent 20% or more of the weight of the index; \7\ and (iii)
component securities of an index or portfolio of securities on which
the ETFs are based for which the primary market is in any two countries
that are not subject to CSSAs do not represent 33% or more of the
weight of the index.\8\ The generic listing standards on equities
exchanges for the listing of portfolio depositary receipts and index
fund shares based on international or global indexes do not, however,
contain a parallel requirement regarding CSSAs.\9\
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    \5\ See MIAX Rule 402(i).
    \6\ See MIAX Rule 402(i)(5)(ii)(A) (renumbered as
402(i)(E)(2)(ii)(A) as part of the proposed rule change).
    \7\ See MIAX Rule 402(i)(5)(ii)(B) (renumbered as
402(i)(E)(2)(ii)(B) as part of the proposed rule change).
    \8\ See MIAX Rule 402(i)(5)(ii)(C) (renumbered as
402(i)(E)(2)(ii)(C) as part of the proposed rule change).
    \9\ See, e.g., NYSE MKT Rule 1000, Commentary .03(a)(B); NYSE
MKT Rule 1000A, Commentary .02(a)(B); NYSE Arca Equities Rule
5.2(j)(3), Commentary .01(a)(B); NYSE Arca Equities Rule 8.100,
Commentary .01(a)(B); NASDAQ Rule 5705(a)(3)(A)(ii); NASDAQ Rule
5705(b)(3)(A)(ii); BATS Rule 14.11(b)(3)(A)(ii); and BATS Rule
14.11(c)(3)(A)(ii). See also Securities Exchange Act Release Nos.
54739 (November 9, 2006), 71 FR 66993 (November 17, 2006) (SR-Amex-
2006-78); 55621 (April 12, 2007), 72 FR 19571 (April 18, 2007) (SR-
NYSEArca-2006-86); and 55269 (February 9, 2007), 72 FR 7490
(February 15, 2007) (SR-NASDAQ-2006-050).
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    The Exchange proposes to amend its listing standards to enable the
Exchange to list and trade options on certain ETFs without a CSSA
provided that such ETFs that underlie options are listed on an equities
exchange pursuant to the generic listing standards for portfolio
depositary receipts and index fund shares based on international or
global indexes under which a CSSA is not required.\10\ Accordingly, the
proposed rule change would provide a limited exception to the
requirement regarding CSSAs under the Exchange's listing standards only
in circumstances where the underlying ETF was listed on an equities
exchange pursuant to generic listing standards for international or
global indexes that do not require such exchange to enter into a CSSA
with a foreign market.\11\ The requirement for the Exchange to enter
into a CSSA with a foreign market would continue to apply with respect
to products that do not fit under the proposed exception.\12\ In
addition, options on ETFs that may be listed and traded without a CSSA
under this proposal would be subject to, in all other respects, the
Exchange's existing listing and trading rules that apply to options on
ETFs and would be captured under the Exchange's surveillance program
for options on ETFs.\13\
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    \10\ See Proposed MIAX Rule 402(i)(E)(2)(i). See also NYSE MKT
Rule 1000, Commentary .03(a)(B); NYSE MKT Rule 1000A, Commentary
.02(a)(B); NYSE Arca Equities Rule 5.2(j)(3), Commentary .01(a)(B);
NYSE Arca Equities Rule 8.100, Commentary .01(a)(B); NASDAQ Rule
5705(a)(3)(A)(ii); NASDAQ Rule 5705(b)(3)(A)(ii); BATS Rule
14.11(b)(3)(A)(ii); and BATS Rule 14.11(c)(3)(A)(ii).
    \11\ Id.
    \12\ See Proposed MIAX Rules 402(i)(E)(2)(ii)(A)-(C).
    \13\ See Notice, supra note 3.
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    Finally, the Exchange proposes several technical and non-
substantive changes to the formatting of Rule 402(i), including
relocating current Rule 402(i)(5)(ii)(E) to proposed Rule
402(i)(E)(1)(iii) and the re-numbering of current Rule 402(i)(5)(ii) to
proposed Rule 402(i)(E)(2)(ii). In addition, the Exchange proposes
making corrections to inaccurate citations located in Rule 403(g)(1)
and (2), so that Rule 403(g)(1) properly cites to Rule 402(i)(E)(1)(i)
regarding closed-end ETFs and Rule 403(g)(2) properly cites to Rule
402(i)(E)(1)(ii) regarding open-end ETFs.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of section 6 of the Act \14\
and the rules and regulations thereunder applicable to a national
securities exchange.\15\ Specifically, the Commission finds that the
proposed rule change is consistent

with section 6(b)(5) of the Act,\16\ which requires, among other
things, that the Exchange's rules be designed 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.
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    \14\ 15 U.S.C. 78f.
    \15\ Additionally, in approving the proposed rule change, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \16\ 15 U.S.C. 78f(b)(5).
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    MIAX proposes to eliminate the requirement that it obtain a CSSA
with the applicable foreign market before trading options on certain
ETFs that track broad-based indexes of securities.\17\ CSSAs help to
ensure that the listing exchange has the ability to obtain the
information necessary to detect and deter potential trading abuses.\18\
According to the Exchange, it believes that this proposed listing
standard for options on ETFs is reasonable for international and global
indexes, and, when applied in conjunction with the other listing
requirements, would result in options overlying ETFs that are
sufficiently broad-based in scope and therefore not readily susceptible
to manipulation.\19\ Moreover, the Exchange believes that the proposed
rule change would benefit investors by providing valuable risk
management tools.\20\ The NYSE Group agrees with these statements by
the Exchange and supports the proposal.\21\
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    \17\ See Proposed MIAX Rule 402(i)(E)(2)(i). See also NYSE MKT
Rule 1000, Commentary .03(a)(B); NYSE MKT Rule 1000A, Commentary
.02(a)(B); NYSE Arca Equities Rule 5.2(j)(3), Commentary .01(a)(B);
NYSE Arca Equities Rule 8.100, Commentary .01(a)(B); NASDAQ Rule
5705(a)(3)(A)(ii); NASDAQ Rule 5705(b)(3)(A)(ii); BATS Rule
14.11(b)(3)(A)(ii); and BATS Rule 14.11(c)(3)(A)(ii).
    \18\ See Securities Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952, 70959 (December 22, 1998).
    \19\ See Notice, supra note 3.
    \20\ Id.
    \21\ See NYSE Letter, supra note 4.
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    The Commission approved generic listing standards for ETFs based on
international or global indexes in 2006.\22\ At that time, the
Commission determined that for certain ETFs based on broad-based
indexes of securities, the generic listing standards for equities
exchanges need not require the exchange to obtain a CSSA to list and
trade such ETFs.\23\ These generic ETF listing standards contain
quantitative criteria with respect to components included in the ETF's
underlying index that provide minimum thresholds regarding trading
volume, market capitalization, number of index components, and index
concentration limits.\24\ They do not, however, require the listing
exchange to obtain a CSSA with the home country market for the
underlying index components.\25\ The Commission stated that a CSSA with
the home country market was not required, because the listing standards
provided for minimum levels of liquidity, concentration, and pricing
transparency for index components.\26\ In addition, the Commission
noted that the generic listing standards for ETFs based on global or
international indexes applied in conjunction with the other applicable
listing requirements would ``permit the listing only of ETFs that are
sufficiently broad-based in scope to minimize potential manipulation .
. . [and] are designed to preclude ETFs from becoming surrogates for
trading in unregistered securities.'' \27\
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    \22\ See Securities Exchange Act Release No. 54739, supra note 9
(SR-Amex-2006-78). Subsequently, other exchanges filed similar
proposals that were approved by the Commission. See, e.g.,
Securities Exchange Act Release Nos. 55621, supra note 9 (approving
SR-NYSEArca-2006-86); and 55269, supra note 9 (approving SR-NASDAQ-
2006-050).
    \23\ See id.
    \24\ For example, with respect to ETFs for portfolio depositary
receipts based on international or global indexes, the generic
listing standards generally contain the following requirements with
respect to the underlying index: (1) Component stocks that in the
aggregate account for at least 90% of the weight of the index or
portfolio each shall have a minimum market value of at least $100
million; (2) component stocks that in the aggregate account for at
least 90% of the weight of the index or portfolio each shall have a
minimum worldwide monthly trading volume over the most recent six-
month period of at least 250,000 shares; (3) that the index observe
certain concentration limits (e.g., that no component may exceed 25%
of the weight of the index and that the five most heavily weighted
components may not exceed 60% of the weight of the index); (4) that
there be a minimum number of 20 component stocks in the index; and
(5) that each component either be an exchange-listed NMS stock or,
if a non-U.S. stock, be listed and traded on an exchange that has
last-sale reporting. See, e.g., NYSE MKT Rule 1000, Commentary .03;
NYSE Arca Equities Rule 8.100, Commentary .01; NASDAQ Rule 5705(a);
and BATS Rule 14.11(b). The requirements with respect to the
underlying index under the generic listing standards for index fund
shares based on international or global indexes are substantially
similar. See, e.g., NYSE MKT Rule 1000A, Commentary .02; NYSE Arca
Equities Rule 5.2(j)(3), Commentary .01; NASDAQ Rule 5705(b); and
BATS Rule 14.11(c).
    \25\ See, e.g., Securities Exchange Act Release No. 54739, supra
note 9.
    \26\ Id. at 71 FR 66995 n.18. See also supra note 24 and
accompanying text.
    \27\ See Securities Exchange Act Release No. 54739, supra note
9, at 71 FR 66997.
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    MIAX now seeks to establish parallel listing standards for options.
The Commission believes that it is consistent with the Act for the
Exchange to list and trade options that overlie ETFs, provided such
ETFs are listed pursuant to generic listing standards on equities
exchanges for portfolio depositary receipts and index fund shares based
on international or global indexes under which a CSSA with a foreign
market is not required.\28\ All of the other listing criteria under
MIAX's rules would continue to apply to any such options. In addition,
the Commission notes that the requirement for MIAX to obtain a CSSA
will continue to apply to other products that do not fit this limited
exception. The Commission believes that the proposed rule change should
facilitate listing and trading of additional investment options for
market participants seeking efficient trading and hedging vehicles and
thereby, benefit investors by providing them with valuable risk
management tools.
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    \28\ See supra note 24 and accompanying text.
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\29\ that the proposed rule change (File No. SR-MIAX-2015-04) be,
and hereby is, approved.
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    \29\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-06285 Filed 3-18-15; 8:45 am]
 BILLING CODE 8011-01-P