[Federal Register Volume 88, Number 74 (Tuesday, April 18, 2023)]
[Rules and Regulations]
[Page 23566]
[FR Doc No: 2023-07902]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2022-1614; Airspace Docket No. 22-ASO-28]
RIN 2120-AA66

Amendment of Class D and E Airspace; Macon, GA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; correction.

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SUMMARY: A final rule was published in the Federal Register on March
29, 2023, amending Class D airspace, Class E surface airspace, and
Class E airspace extending upward from 700 feet above the surface at
Middle Georgia Regional Airport, Macon, GA. The legal description for
Class E surface airspace inadvertently referenced Class D airspace.
This action corrects this error.

DATES: Effective 0901 UTC, June 15, 2023. The Director of the Federal
Register approves this incorporation by reference action under 1 CFR
part 51, subject to the annual revision of FAA Order JO 7400.11 and
publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: Jennifer Ledford, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, 1701
Columbia Ave., College Park, GA 30337; Telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

History

    The FAA published a final rule in the Federal Register (88 FR
18392, March 29, 2023) for Doc. No. FAA-2022-1614, amending Class D
airspace, Class E surface airspace, and Class E airspace extending
upward from 700 feet above the surface at Middle Georgia Regional
Airport, Macon, GA. The legal description for Class E surface airspace
inadvertently referenced Class D airspace. This action corrects this
error.
    Class D and Class E airspace designations are published in
Paragraphs 5000, 6002, and 6005 of FAA Order JO 7400.11G dated August
19, 2022, and effective September 15, 2022, which is incorporated by
reference in 14 CFR 71.1. The Class D and E airspace designations
listed in this document will subsequently be published in FAA Order JO
7400.11G.

Correction to Final Rule

    This action amends (14 CFR) part 71 by replacing the reference to
the Class D airspace in the Class E surface airspace description at
Middle Georgia Regional Airport with reference to Class E airspace.

Regulatory Notices and Analyses

    The FAA has determined that this 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 minimal. Since this is a routine matter that only
affects air traffic procedures and air navigation, it is certified that
this rule, when promulgated, does not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances warrant the preparation of an environmental
assessment.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Correction to the Final Rule

    Accordingly, pursuant to the authority delegated to me, the
amendment of Class E surface airspace for Middle Georgia Regional
Airport, Macon, GA, in Docket No. FAA-2022-1614, as published in the
Federal Register of March 29, 2023 (88 FR 18392), FR Doc. 2023-06324,
in 14 CFR part 71, is corrected as follows:

Sec.  71.1  [Corrected]

0
1. On page 18393, in the first column, correct the description for ASO
GA E2 Macon, GA [Amended] to read:
* * * * *

ASO GA E2 Macon, GA [Amended]

Middle Georgia Regional Airport, GA
    (Lat 32[deg]41'34'' N, long 83[deg]38'57'' W)
Robins AFB
    (Lat 32[deg]38'25'' N, long 83[deg]35'31'' W)

    That airspace extending upward from the surface within a 4.9-
mile radius of Middle Georgia Regional Airport, excluding the
portion within the 5.5-mile radius of Robins AFB Airport that lies
south of a line connecting the two points of intersection of the
5.5-mile radius circle centered on the Robins AFB Airport and the
4.1-mile radius of Middle Georgia Regional Airport. This Class E
airspace area is effective during the specific dates and times
established in advance by a Notice to Air Missions. The effective
date and time will thereafter be continuously published in the Chart
Supplement.

    Issued in College Park, Georgia, on April 11, 2023.
Andreese C. Davis,
Manager, Airspace & Procedures Team South, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2023-07902 Filed 4-17-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: June 9, 2010 (Volume 75, Number 110)]
[Rules and Regulations]
[Page 32658-32659]
[DOCID:fr09jn10-7]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 106, 107, 312, and 803

[Docket No. FDA-2010-N-0010]

Change of Contact Information; Technical Amendment

AGENCY: Food and Drug Administration, HHS.

ACTION: Final rule; technical amendment.

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SUMMARY: The Food and Drug Administration (FDA) is amending its
regulations to reflect changes in the contact information for the FDA
Emergency Call Center. This action is editorial in nature and is
intended to improve the accuracy of the agency's regulations.

DATES: This rule is effective June 11, 2010.

FOR FURTHER INFORMATION CONTACT: Wayne Gorski, Office of Crisis
Management, Food and Drug Administration, 10903 New Hampshire Ave.,
Bldg. 32, rm. 2300, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: FDA is amending its regulations in 21 CFR
parts 106, 107, 312, and 803 to reflect a change in the telephone and
fax numbers for the FDA Emergency Call Center. The phone number will
change from<PHONE_NUMBER> to<PHONE_NUMBER> on June 11, 2010. The fax
number will change from<PHONE_NUMBER> to<PHONE_NUMBER>. We have also
amended the regulations to reflect that the new phone and fax numbers
are for the ``FDA Emergency Call Center''.
    Publication of this document constitutes final action on this
change under the Administrative Procedure Act (5 U.S.C. 553). Notice
and public procedures are unnecessary because FDA is merely updating
nonsubstantive content.

List of Subjects

21 CFR Part 106

    Food grades and standards, Infants and children, Nutrition,
Reporting and recordkeeping requirements.

21 CFR Part 107

    Food labeling, Infants and children, Nutrition, Reporting and
recordkeeping requirements, Signs and symbols.

21 CFR Part 312

    Drugs, Exports, Imports, Investigations, Labeling, Medical
research, Reporting and recordkeeping requirements, Safety.

21 CFR Part 803

    Imports, Medical devices, Reporting and recordkeeping requirements.

0
Therefore under the Federal Food, Drug, and Cosmetic Act and under
authority delegated to the Commissioner of Food and Drugs, 21 CFR
Chapter I is amended as follows:

PART 106--INFANT FORMULA QUALITY CONTROL PROCEDURES

0
1. The authority citation for 21 CFR part 106 continues to read as
follows:

    Authority:  21 U.S.C. 321, 350a, 371.

0
2. Section 106.120 is amended by revising paragraph (b) to read as
follows:

Sec.  106.120   New formulations and reformulations.

* * * * *
    (b) The manufacturer shall promptly notify the Food and Drug
Administration when the manufacturer has knowledge (as defined in
section 412(c)(2) of the act) that reasonably supports the conclusion
that an infant formula that has been processed by the manufacturer and
that has left an establishment subject to the control of the
manufacturer may not provide the nutrients required by section 412(g)
of the act and by regulations promulgated under section 412(a)(2) of
the act, or when there is an infant formula that is otherwise
adulterated or misbranded and that may present risk to human health.
This notification shall be made, by telephone, to the Director of the
appropriate Food and Drug Administration district office specified in
part 5, subpart M of this chapter. After normal business hours (8 a.m.
to 4:30 p.m.), contact the FDA Emergency Call Center at<PHONE_NUMBER>.
The manufacturer shall send a followup written confirmation to the
Center for Food Safety and Applied Nutrition (HFS-605), Food and Drug
Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, and to

the appropriate Food and Drug Administration district office specified
in part 5, subpart M of this chapter.

PART 107--INFANT FORMULA

0
3. The authority citation for 21 CFR part 107 continues to read as
follows:

    Authority:  21 U.S.C. 321, 343, 350a, 371.

0
4. Section 107.50 is amended by revising paragraph (e)(2) to read as
follows:

Sec.  107.50   Terms and conditions.

* * * * *
    (e) * * *
    (2) The manufacturer shall promptly notify FDA when the
manufacturer has knowledge (as defined in section 412(c)(2) of the act)
that reasonably supports the conclusion that an exempt infant formula
that has been processed by the manufacturer and that has left an
establishment subject to the control of the manufacturer may not
provide the nutrients required by paragraph (b) or (c) of this section,
or when there is an exempt infant formula that may be otherwise
adulterated or misbranded and if so adulterated or misbranded presents
a risk of human health. This notification shall be made, by telephone,
to the Director of the appropriate FDA district office specified in
part 5, subpart M of this chapter. After normal business hours (8 a.m.
to 4:30 p.m.), contact the FDA Emergency Call Center at<PHONE_NUMBER>.
The manufacturer shall send a followup written confirmation to the
Center for Food Safety and Applied Nutrition (HFS-605), Food and Drug
Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, and to
the appropriate FDA district office specified in part 5, subpart M of
this chapter.

0
5. Section 107.240 is amended by revising paragraph (b) to read as
follows:

Sec.  107.240   Notification requirements.

* * * * *
    (b) Method of notification. The notification made pursuant to Sec.
107.240(a) shall be made, by telephone, to the Director of the
appropriate Food and Drug Administration district office listed in part
5, subpart M of this chapter. After normal business hours (8 a.m. to
4:30 p.m.), contact the FDA Emergency Call Center at<PHONE_NUMBER>. The
manufacturer shall send written confirmation of the notification to the
Center for Food Safety and Applied Nutrition (HFS-605), Food and Drug
Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, and to
the appropriate Food and Drug Administration district office listed in
part 5, subpart M of this chapter.
* * * * *

PART 312--INVESTIGATIONAL NEW DRUG APPLICATION

0
6. The authority citation for 21 CFR part 312 continues to read as
follows:

    Authority:  21 U.S.C. 321, 331, 351, 352, 353, 355, 360bbb, 371;
42 U.S.C. 262.

0
7. Section 312.310 is amended by revising paragraph (d)(1) to read as
follows:

Sec.  312.310   Individual patients, including for emergency use.

* * * * *
    (d) * * *
    (1) Emergency expanded access use may be requested by telephone,
facsimile, or other means of electronic communications. For
investigational biological drug products regulated by the Center for
Biologics Evaluation and Research, the request should be directed to
the Office of Communication, Outreach and Development, Center for
Biologics Evaluation and Research,<PHONE_NUMBER> or 1-800-835-4709, e-
mail<EMAIL_ADDRESS>For all other investigational drugs, the
request for authorization should be directed to the Division of Drug
Information, Center for Drug Evaluation and Research,<PHONE_NUMBER>, e-
mail<EMAIL_ADDRESS>After normal working hours (8 a.m. to 4:30
p.m.), the request should be directed to the FDA Emergency Call Center,
866-300-4374, e-mail<EMAIL_ADDRESS>* * * * *

PART 803--MEDICAL DEVICE REPORTING

0
8. The authority citation for 21 CFR part 803 continues to read as
follows:

    Authority:  21 U.S.C. 352, 360, 360i, 360j, 371, 374.

0
9. Section 803.12 is amended by revising paragraph (c) to read as
follows:

Sec.  803.12   Where and how do I submit reports and additional
information?

* * * * *
    (c) If an entity is confronted with a public health emergency, this
can be brought to FDA's attention by contacting the FDA Office of
Emergency Operations, Office of Crisis Management, Office of the
Commissioner, at<PHONE_NUMBER>, followed by the submission of an e-mail
to<EMAIL_ADDRESS>or a fax report to<PHONE_NUMBER>.
* * * * *

    Dated: June 4, 2010.
Leslie Kux,
Acting Assistant Commissioner for Policy.
[FR Doc. 2010-13820 Filed 6-8-10; 8:45 am]
BILLING CODE 4160-01-S


[Federal Register: June 23, 2010 (Volume 75, Number 120)]
[Rules and Regulations]
[Page 35609-35611]
[DOCID:fr23jn10-2]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0280; Directorate Identifier 2009-NM-259-AD;
Amendment 39-16334; AD 2010-13-03]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Model 777-200LR and
-300ER Series Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Model 777-200LR and -300ER series airplanes. This AD requires doing a
high frequency eddy current inspection for cracking of the keyway of
the fuel tank access door cutout on the left and right wings between
wing rib numbers 8 (wing station 387) and 9 (wing station 414.5), and
related investigative and corrective actions if necessary. This AD
results from reports of cracks emanating from the keyway of the fuel
tank access door cutout of the lower wing skin between wing rib numbers
8 and 9. We are issuing this AD to prevent loss of the lower wing skin
load path, which could cause catastrophic structural failure of the
wing.

DATES: This AD is effective July 28, 2010.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of July 28,
2010.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-
544-5000, extension 1; fax<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
Internet https://www.myboeingfleet.com.

Examining the AD Docket

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

FOR FURTHER INFORMATION CONTACT: Duong Tran, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
917-6452; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an airworthiness directive (AD) that would apply to
certain Model 777-200LR and -300ER series airplanes. That NPRM was
published in the Federal Register on April 2, 2010 (75 FR 16683). That
NPRM proposed to require doing a high frequency eddy current inspection
for

cracking of the keyway of the fuel tank access door cutout on the left
and right wings between wing rib numbers 8 (wing station 387) and 9
(wing station 414.5), and related investigative and corrective actions
if necessary.

Comments

    We gave the public the opportunity to participate in developing
this AD. We considered the comment received. Boeing supports the NPRM.

Conclusion

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

Costs of Compliance

    We estimate that this AD affects 16 airplanes of U.S. registry. We
also estimate that it takes 2 work-hours per product to comply with
this AD. The average labor rate is $85 per work-hour. Based on these
figures, we estimate the cost of this AD to the U.S. operators to be
$2,720, or $170 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

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979), 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.
    You can find our regulatory evaluation and the estimated costs of
compliance in the AD Docket.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new AD:

2010-13-03 The Boeing Company: Amendment 39-16334. Docket No. FAA-
2010-0280; Directorate Identifier 2009-NM-259-AD.

Effective Date

    (a) This airworthiness directive (AD) is effective July 28,
2010.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to The Boeing Company Model 777-200LR and -
300ER series airplanes, certificated in any category, as identified
in Boeing Alert Service Bulletin 777-57A0069, dated November 5,
2009.

Subject

    (d) Air Transport Association (ATA) of America Code 57: Wings.

Unsafe Condition

    (e) This AD results from reports of cracks emanating from the
keyway of the fuel tank access door cutout of the lower wing skin
between wing rib numbers 8 and 9. The Federal Aviation
Administration is issuing this AD to prevent loss of the lower wing
skin load path, which could cause catastrophic structural failure of
the wing.

Compliance

    (f) You are responsible for having the actions required by this
AD performed within the compliance times specified, unless the
actions have already been done.

Inspection

    (g) At the applicable time specified in paragraphs (g)(1) and
(g)(2) of this AD, do a high frequency eddy current (HFEC)
inspection for cracking of the keyway of the fuel tank access door
cutout on the left and right wings between wing rib numbers 8 (wing
station 387) and 9 (wing station 414.5), and do all applicable
corrective actions including applicable related investigative action
(an HFEC inspection for cracking of machined areas), in accordance
with the Accomplishment Instructions of Boeing Alert Service
Bulletin 777-57A0069, dated November 5, 2009, except as required by
paragraph (h) of this AD. Do all applicable related investigative
and corrective actions before further flight.
    (1) For Group 1, Configuration 1 airplanes, as identified in
Boeing Alert Service Bulletin 777-57A0069, dated November 5, 2009:
Before the accumulation of 3,500 total flight cycles, or within 500
flight cycles after the effective date of this AD, whichever occurs
later.
    (2) For Group 1, Configuration 2 airplanes and Group 2
airplanes, as identified in Boeing Alert Service Bulletin 777-
57A0069, dated November 5, 2009, on which a crack was found in the
cutout keyway when the cutout keyway was changed: Within 1,125 days
after the effective date of this AD.

    Note 1:  For Group 1, Configuration 2 airplanes and Group 2
airplanes, as identified in Boeing Alert Service Bulletin 777-
57A0069, dated November 5, 2009, on which no crack was found in the
cutout keyway when the cutout keyway was changed: No further action
is required by this AD.

Exceptions to Service Bulletin

    (h) If any cracking is found during any inspection required by
this AD, and Boeing Alert Service Bulletin 777-57A0069, dated
November 5, 2009, specifies to contact Boeing for appropriate
action: Before further flight, repair the crack using a method
approved in accordance with the procedures specified in paragraph
(i) of this AD.

Alternative Methods of Compliance (AMOCs)

    (i)(1) The Manager, Seattle Aircraft Certification Office (ACO),
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: Duong Tran, Aerospace Engineer, Airframe Branch, ANM-120S,
FAA, Seattle ACO, 1601 Lind Avenue SW., Renton, Washington 98057-
3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Or, e-mail
information to<EMAIL_ADDRESS>    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
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.
The AMOC approval letter must specifically reference this AD.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair

required by this AD if it is approved by the Boeing Commercial
Airplanes Organization Designation Authorization (ODA) that has been
authorized by the Manager, Seattle ACO to make those findings. For a
repair method to be approved, the repair must meet the certification
basis of the airplane, and the approval must specifically refer to
this AD.

Material Incorporated by Reference

    (j) You must use Boeing Alert Service Bulletin 777-57A0069,
dated November 5, 2009, to do the actions required by this AD,
unless the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone
206-544-5000, extension 1; fax<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com.
    (3) You may review copies of the 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>.
    (4) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html.

    Issued in Renton, Washington, on June 10, 2010.
Jeffrey E. Duven,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2010-14977 Filed 6-22-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: June 2, 2008 (Volume 73, Number 106)]
[Proposed Rules]
[Page 31394-31397]
[DOCID:fr02jn08-16]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket No. USCG-2008-0392]
RIN 1625-AA08

Special Local Regulations for Marine Events; Patapsco River,
Inner Harbor, Baltimore, MD

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to establish special local
regulations during the ``Pride of Baltimore Recycled Regatta'', a
marine event to be held August 2, 2008 on the waters of the Patapsco
River, Inner Harbor, Baltimore, MD. These special local regulations are
necessary to provide for the safety of life on navigable waters during
the event. This action is intended to temporarily restrict vessel
traffic in a portion of the Baltimore Inner Harbor during the event.

DATES: Comments and related material must reach the Coast Guard on or
before July 2, 2008.

ADDRESSES: You may submit comments identified by Coast Guard docket
number USCG-2008-0392 to the Docket Management Facility at the U.S.
Department of Transportation. To avoid duplication, please use only one
of the following methods:
    (1) Online: http://www.regulations.gov.
    (2) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590-0001.

    (3) Hand delivery: Room W12-140 on the Ground Floor of the West
Building, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. The
telephone number is<PHONE_NUMBER>.
    (4) Fax:<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call Dennis Sens, Project Manager, Fifth Coast Guard District,
Inspections and Investigations Branch, at<PHONE_NUMBER>. If you have
questions on viewing or submitting material to the docket, call Renee
V. Wright, Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted,
without change, to http://www.regulations.gov and will include any
personal information you have provided. We have an agreement with the
Department of Transportation (DOT) to use the Docket Management
Facility. Please see DOT's ``Privacy Act'' paragraph below.

Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2008-0392), indicate the specific section of this
document to which each comment applies, and give the reason for each
comment. We recommend that you include your name and a mailing address,
an e-mail address, or a phone number in the body of your document so
that we can contact you if we have questions regarding your submission.
You may submit your comments and material by electronic means, mail,
fax, or delivery to the Docket Management Facility at the address under
ADDRESSES; but please submit your comments and material by only one
means. If you submit them by mail or delivery, submit them in an
unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit them by mail and would
like to know that they reached the Facility, please enclose a stamped,
self-addressed postcard or envelope. We will consider all comments and
material received during the comment period. We may change this
proposed rule in view of them.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov at
any time. Enter the docket number for this rulemaking (USCG-2008-0392)
in the Search box, and click ``Go >>.'' You may also visit either the
Docket Management Facility in Room W12-140 on the ground floor of the
DOT West Building, 1200 New Jersey Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays; or the Fifth Coast Guard District, Prevention Division, 431
Crawford Street, Portsmouth, VA, 23704 between 10 a.m. and 2 p.m.,
Monday through Friday, except Federal holidays.

Privacy Act

    Anyone can search the electronic form of all comments received into
any of our dockets by the name of the individual submitting the comment
(or signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review the Department of
Transportation's Privacy Act Statement in the Federal Register
published on April 11, 2000 (65 FR 19477), or you may visit http://
DocketsInfo.dot.gov.

Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one to the Docket Management Facility at the address under
ADDRESSES explaining why one would be beneficial. If we determine that
one would aid this rulemaking, we will hold one at a time and place
announced by a later notice in the Federal Register.

Background and Purpose

    On August 2, 2008, Pride of Baltimore, Inc. will sponsor ``Pride of
Baltimore Recycled Regatta'' at the Inner Harbor in Baltimore, MD. The
event will consist of approximately 30 boats built from recycled
materials attempting to traverse a designated course that extends over
the water immediately adjacent to the southwest corner of the promenade
surrounding the Baltimore Inner Harbor. The regulated area originates
at the southwest corner of the Inner Harbor adjacent to the Maryland
Science Center and extends outward over the water within an
approximately 150 yard arc. Due to the need for vessel control during
the event, the Coast Guard will temporarily restrict vessel traffic in
the event area to provide for the safety of participants, spectators
and other transiting vessels.

Discussion of Proposed Rule

    The Coast Guard proposes to establish temporary special local
regulations on specified waters of the Patapsco River, Inner Harbor,
Baltimore, MD. The regulations will be in effect from 2:30 p.m. to 9:30
p.m. on August 2, 2008. The effect will be to restrict general
navigation in the regulated area during the event. Except for persons
or vessels authorized by the Coast Guard Patrol Commander, no person or
vessel may enter or remain in the regulated area. Vessel traffic may be
allowed to transit the regulated area at slow speed when event activity
is halted, and when the Coast Guard Patrol Commander determines it is
safe to do so. These regulations are needed to control vessel traffic
during the event to enhance the safety of participants, spectators and
transiting vessels.

Regulatory Evaluation

    This proposed rule is not a ``significant regulatory action'' under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
and does not require an assessment of potential costs and benefits
under section 6(a)(3) of that Order. The Office of Management and
Budget has not reviewed it under that Order.
    We expect the economic impact of this proposed rule to be so
minimal that a full Regulatory Evaluation is unnecessary.
    Although this regulation will prevent traffic from transiting a
portion of the Baltimore Inner Harbor during the event, the effect of
this regulation will not be significant due to the limited duration
that the regulated area will be in effect and the extensive advance
notifications that will be made to the maritime community via the Local
Notice to Mariners, marine information broadcasts, and area newspapers,
so mariners can adjust their plans accordingly. Additionally, the
regulated area has been narrowly tailored to impose the least impact on
general navigation yet provide the level of safety deemed necessary.
Vessel traffic may be able to transit the regulated area at slow speed
when event activity is halted, when the Coast Guard Patrol Commander
deems it is safe to do so.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently

owned and operated and are not dominant in their fields, and
governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. This proposed rule would affect the following
entities, some of which might be small entities: the owners or
operators of vessels intending to transit or anchor in the affected
portion of the Baltimore Inner Harbor during the event.
    Although this regulation prevents traffic from transiting a small
segment of the Baltimore Inner Harbor during the event, this proposed
rule would not have a significant economic impact on a substantial
number of small entities for the following reasons. This proposed rule
would be in effect for only a limited period. Vessel traffic may be
able to transit the regulated area when event activity is halted, when
the Coast Guard Patrol Commander deems it is safe to do so. Before the
enforcement period, we will issue maritime advisories so mariners can
adjust their plans accordingly.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
rule would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please contact the address listed under
ADDRESSES. The Coast Guard will not retaliate against small entities
that question or complain about this rule or any policy or action of
the Coast Guard.

Collection of Information

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this proposed rule
under that Order and have determined that it does not have implications
for federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. Though this proposed rule would not result in such an
expenditure, we do discuss the effects of this rule elsewhere in this
preamble.

Taking of Private Property

    This proposed rule would not effect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

Environment

    We have analyzed this proposed rule under Commandant Instruction
M16475.lD which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have
made a preliminary determination that this action is not likely to have
a significant effect on the human environment. We seek any comments or
information that may lead to the discovery of a significant
environmental impact from this proposed rule.

List of Subjects in 33 CFR Part 100

    Marine safety, Navigation (water), Reporting and recordkeeping
requirements, and Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 100 as follows:

PART 100--REGATTAS AND MARINE PARADES

    1. The authority citation for part 100 continues to read as
follows:

    Authority: 33 U.S.C. 1233.

    2. Add a temporary Sec.  100.35-T05-0392 to read as follows:

Sec.  100.35-T05-0392  Patapsco River, Inner Harbor, Baltimore, MD.

    (a) Definitions: The following definitions apply to this section:
(1) Coast Guard Patrol Commander means a commissioned, warrant, or
petty officer of the Coast Guard who has been designated by the
Commander, Coast Guard Sector Baltimore.
    (2) Official Patrol means any vessel assigned or approved by
Commander, Coast Guard Sector Baltimore with a commissioned, warrant,
or petty officer on board and displaying a Coast Guard ensign.
    (3) Participant includes all vessels participating in the Pride of
Baltimore Recycled Regatta under the auspices of a Marine Event Permit
issued to the event sponsor and approved by Commander, Coast Guard
Sector Baltimore.
    (4) Regulated area includes the waters of the Patapsco River,
Baltimore, MD, Inner Harbor within the immediate vicinity of the
southwest corner of the harbor adjacent to the Maryland Science Center.
The area is bounded on the south and west by the shoreline promenade,
bounded on the north by a line drawn along latitude
39[deg]16[min]58[sec] North and bounded on the east by a line drawn
along longitude 076[deg]36[min]36.5[sec] West. All coordinates
reference Datum NAD 1983.
    (b) Special local regulations: (1) Except for event participants
and persons or vessels authorized by the Coast Guard Patrol Commander,
no person or vessel may enter or remain in the regulated area.
    (2) The operator of any vessel in the regulated area shall: (i)
Stop the vessel immediately when directed to do so by any Official
Patrol.
    (ii) Proceed as directed by any Official Patrol.
    (iii) When authorized to transit the regulated area, all vessels
shall proceed at the minimum speed necessary to maintain a safe course
that minimizes wake near the event area.
    (c) Effective period. This section will be enforced from 2:30 p.m.
to 9:30 p.m. on August 2, 2008.

    Dated: May 20, 2008.
Fred M. Rosa, Jr.,
Rear Admiral, U.S. Coast Guard, Commander, Fifth Coast Guard District.
[FR Doc. E8-12151 Filed 5-30-08; 8:45 am]

BILLING CODE 4910-15-P


[Federal Register Volume 80, Number 195 (Thursday, October 8, 2015)]
[Notices]
[Pages 60941-60944]
[FR Doc No: 2015-25598]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76068; File No. SR-CBOE-2015-077]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change Relating To
Margin Requirements

October 2, 2015.
    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 September 22, 2015, Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its rules related to margin
requirements. The text of the proposed rule change is provided below.
    (additions are italicized; deletions are [bracketed])

* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *

Rule 12.3. Margin Requirements

    (a)-(b) No change.
    (c) Customer Margin Account--Exception. The foregoing
requirements are subject to the following exceptions. Nothing in
this paragraph (c) shall prevent a broker-dealer from requiring
margin from any account in excess of the amounts specified in these
provisions.
    (1)-(4) No change.
    (5) Initial and Maintenance Margin Requirements on Short
Options, Stock Index Warrants, Currency Index Warrants and Currency
Warrants.
    (A)-(B) No change.
    (C) Related Securities Positions--Listed or OTC Options. Unless
otherwise specified, margin must be deposited and maintained in the
following amounts for each of the following types of positions.
    (1) No change.
    (2) Covered Calls/Covered Puts.
    (a) No margin [need be]is required [in respect of]for a[n] call
(put) option contract[, stock index warrant, currency index warrant]
or [currency ]warrant carried in a short position [which is covered
by] where there is carried in the same account a long (short)
position in equivalent units of the underlying security[ in the case
of a call, or a short position in equivalent units of the underlying
security in the case of a put, provided, however, in computing
margin on such position in the underlying security, the current
market value to be used shall not be greater than the exercise price
in the case of a call. In the case of a put, in computing margin on
the underlying position, margin shall be the amount required by
subparagraph (b)(2) of this Rule, plus the amount, if any, by which
the exercise price of the put exceeds the current market value of
the underlying].
    (b) No margin is required for[In respect of an] a call (put)
index option contract or warrant [on a market index ]carried in a
short position[,] where there is carried in the same account a long
(short) position in an (i) underlying stock basket, (ii) index
mutual fund, (iii) IPR (as defined in Rule 1.1, Interpretation and
Policy .02), or (iv) IPS (as defined in Rule 1.1, Interpretation and
Policy .03), that is based on the same index underlying the index
option or warrant and having a market value at least equal to the
aggregate current index value [subject to the

same requirements for computing margin, may serve as cover].
    [No margin is required in respect of a call option contract on a
Standard and Poor's 500 (S&P 500) market index carried in a short
position where there is carried for the same account a long position
in the underlying open-end index mutual fund (which shall be
specifically designated by the Exchange) having an aggregate market
value at least equal to the underlying value of the S&P 500
contracts to be covered.]
    (c) In order for the exceptions in subparagraphs (a) and (b)
above to apply, in computing margin on positions in the underlying
security, underlying stock basket, index mutual fund, IPR or IPS, as
applicable, (i) in the case of a call, the current market value to
be used shall not be greater than the exercise price, and (ii) in
the case of a put, margin shall be the amount required by
subparagraph (b)(2) of this Rule, plus the amount, if any, by which
the exercise price exceeds the current market value.
    (3)-(4) No change.
    (d)-(n) No change.
    . . . Interpretations and Policies:
    .01-.19 No change.
* * * * *
    The text of the proposed rule change is also available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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
    Rule 12.3 sets forth margin requirements, and certain exceptions to
those requirements, applicable to security positions of Trading Permit
Holders' customers. Rule 12.3(c)(5)(C)(2) currently requires no margin
for covered calls and puts. Specifically, that rule provides the
following:
     No margin need be required in respect of an option
contract, stock index warrant, currency index warrant or currency
warrant carried in a short position which is covered by a long position
in equivalent units of the underlying security in the case of a call
(covered call), or a short position in equivalent units of the
underlying security in the case of a put (covered put).\3\
---------------------------------------------------------------------------

    \3\ In computing margin on such a position in the underlying
security, (a) in the case of a call, the current market value to be
used shall not be greater than the exercise price and (b) in the
case of a put, margin will be the amount required by Rule
12.3(b)(2), plus the amount, if any, by which the exercise price of
the put exceeds the current market value of the underlying.
---------------------------------------------------------------------------

     An underlying stock basket \4\ may serve as cover for an
option contract or warrant on a market index carried short (subject to
the same requirements for computing margin).
---------------------------------------------------------------------------

    \4\ An ``underlying stock basket'' means a group of securities
that includes each of the component securities of the applicable
index and which meets the following conditions: (a) The quantity of
each stock in the basket is proportional to its representation in
the index, (b) the total market value of the basket is equal to the
underlying index value of the index options or warrants to be
covered, (c) the securities in the basket cannot be used to cover
more than the number of index options or warrants represented by
that value and (d) the securities in the basket shall be unavailable
to support any other option or warrant transaction in the account.
See Rule 12.3(a)(7).
---------------------------------------------------------------------------

     No margin is required in respect of a call option on a
Standard and Poor's 500 (S&P 500) market index carried in a short
position where there is carried for the same account a long position in
an underlying open-end index mutual fund (which will be specifically
designated by the Exchange) having an aggregate market value at least
equal to the underlying value of the S&P 500 contracts to be covered.
    First, the proposed rule change makes some nonsubstantive changes
to Rule 12.3(c)(5)(C)(2). The proposed rule change letters the
provisions listed in the first two bulleted paragraphs above to become
subparagraphs (2)(a) and (b) and moves part of the provision in the
first bulleted paragraph to proposed subparagraph (2)(c) (as discussed
below, the proposed rule change deletes the third bulleted paragraph
above). Additionally, the proposed rule change revises the language to
be consistent throughout these provisions, including clarifying that
the underlying security or one of the other permissible offsets must be
carried in the same account as the option position. The proposed rule
change also makes the language more plain English, eliminates
repetitive language, and inserts a missing space in proposed
subparagraph (b).
    Second, the proposed rule change adds circumstances in which
covered calls and puts require no margin. The proposed rule change
applies the provision in proposed subparagraph (b) to index mutual
funds, index portfolio receipts (``IPRs''),\5\ and index portfolio
shares (``IPSs''),\6\ in addition to underlying stock baskets, based on
the same index underlying the index option and having a market value at
least equal to the aggregate current index value.\7\ IPRs and IPSs are
commonly referred to as exchange-traded funds (``ETFs''). The proposed
rule change also deletes the provision that provides no margin is
required in respect of options on a Standard and Poor's 500 (S&P 500)
market index carried in a short position where there is carried for the
same account a long position in the underlying open-end index mutual
fund having an aggregate market value at least equal to the underlying
value of the S&P 500 contracts to be covered.\8\ Proposed subparagraph
(b) extends the same margin exception to any index option offset by a
position in a mutual fund based on the same underlying index, making
this current provision duplicative.
---------------------------------------------------------------------------

    \5\ The term ``index portfolio receipts'' or ``IPRs'' means
securities that (a) represent an interest in a unit investment trust
(``UIT'') which holds the securities that comprise an index on which
a series of IPRs is based; (b) are issued by the UIT in a specified
aggregate minimum number in return for a ``Portfolio Deposit''
consisting of specified numbers of shares of stock plus a cash
amount; (c) when aggregated in the same specified minimum number,
may be redeemed from the UIT which will pay to the redeeming holder
the stock and cash then comprising the Portfolio Deposit; and (d)
pay holders a periodic cash payment corresponding to the regular
cash dividends or distributions declared and paid with respect to
the component securities of the stock index on which the IPRs are
based, less certain expenses and other charges as set forth in the
UIT prospectus. IPRs are ``UIT interests'' within the meaning of the
CBOE Rules. See CBOE Rule 1.1, Interpretation and Policy .02.
    \6\ The term ``index portfolio shares'' or ``IPSs'' means
securities that (a) are issued by an open-end management investment
company based on a portfolio of stocks or fixed income securities
designed to provide investment results that correspond generally to
the price and yield performance of a specified foreign or domestic
stock index or fixed income securities index; (b) are issued by such
an open-end management investment company in a specified aggregate
minimum number in return for a deposit of specified number of shares
of stock and/or a cash amount, or a specified portfolio of fixed
income securities and/or a cash amount, with a value equal to the
next determined net asset value; and (c) when aggregated in the same
specified minimum number, may be redeemed at a holder's request by
such open-end management investment company which will pay to the
redeeming holder stock and/or cash, or a specified portfolio of
fixed income securities and/or cash with a value equal to the next
determined net asset value. See CBOE Rule 1.1, Interpretation and
Policy .03.
    \7\ The term ``aggregate current index value'' means the current
index value times the index multiplier. See CBOE Rule 12.3,
Interpretation and Policy .07.
    \8\ The proposed rule change also deletes the requirement for
CBOE to specifically designate funds, as it thinks this is no longer
necessary due to the continued increase in availability of these
types of products, as discussed below.

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

    Index ETFs and mutual funds function in a similar manner to
underlying stock baskets, as they are intended to replicate the
performance of their underlying market indexes. The types and diversity
of products available on the market that track indexes continues to
increase and provide additional investment and hedging opportunities.
While an ETF or mutual fund may not meet the definition of an
underlying stock basket (for example, some ETFs have a sampling of the
securities that comprise the underlying index), it essentially has the
same purpose as an underlying stock basket for investors. It closely
tracks an underlying index, and thus can function as an offsetting
position to an index option overlying the same index in the same way as
an underlying stock basket.\9\
---------------------------------------------------------------------------

    \9\ The Exchange notes that current federal net capital rules
that apply to options define a qualified stock basket to mean a set
or basket of stock positions which represents no less than 50% of
the capitalization for a high-capitalization or non-high-
capitalization diversified market index or no less than 95% of the
capitalization of a narrow-based index. Those rules require
positions in index options be grouped with related instruments
within the option's class and qualified stock baskets in the same
index. See 17 CFR 240.15c3-1a(b)(1)(i)(D) and (ii). Similar to a
qualified stock basket, while an ETF or mutual fund may not hold
every stock included in the underlying market index, its holdings
are intended to track the index.
---------------------------------------------------------------------------

    The Board of Governors of the Federal Reserve System (``FRB'')
previously indicated that no margin would be required if an index
option (on a broad-based stock index with at least a 99% correlation
with the S&P 500 index) is covered by an offsetting position in S&P
Index Depositary Receipts (SPDRS), but rather such SPDR positions would
be treated as cover in accordance with Section 220.5(c)(3) of
Regulation T.\10\ CBOE and another exchange later afforded the same
margin treatment to options on the Dow Jones Industrial Average (DJIA)
covered by units of the DIAMONDS Trust held in the same account.\11\
Based on this previous guidance from the FRB and the Commission, and in
conjunction with the Exchange's current rules, CBOE has applied this
margin treatment to short index option positions where there are
offsetting positions in an ETF that tracks the same underlying index
held in the same margin account (which treatment the Exchange has
announced in Regulatory Circulars).\12\ The proposed rule change is
consistent with these previous findings and applies this margin
treatment generally to all ETFs and mutual funds that overly market
indexes, in the same manner that the rules currently apply to
underlying stock baskets. Given that the Exchange regularly lists new
products, including index options, the Exchange believes it is
appropriate to have a more general rule related to margin on these
index option products that applies in the same manner rather than
identifying this margin treatment in Regulatory Circulars.
---------------------------------------------------------------------------

    \10\ See Letter dated February 1, 1993 from Michael J.
Schoenfeld, FRB, to James McNeil, American Stock Exchange
(``Amex''); see also Letter dated August 19, 1992 from James M.
McNeil, Amex, to Sharon Lawson, Commission, and Letter dated January
14, 1993 from James M. McNeil, Amex, to Laura M. Homer, FRB. The
section of Regulation T referenced in these letters currently
corresponds to Section 220.4(b)(4), which provides margin
requirements when stock is used as cover for short option positions.
    \11\ See Letter dated December 3, 1997 from James M. McNeil,
Amex, to Scott Holz, FRB, and Letter dated January 8, 1998 from
Scott Holz, FRB to James M. McNeil, Amex; see also Letter dated
December 16, 1997 from Richard Lewandowski, CBOE, to Mr. Michael
Walinskas, Commission. There was no objection from the FRB or the
Commission to Amex's or CBOE's extension of the margin treatment
previously provided to SPDRS to DIAMONDS.
    \12\ See Regulatory Circulars RG99-09 (permitting SPDRS and
DIAMONDS to cover short positions of options on the S&P 500 (``SPX
options'') and on the DJIA (DJX), respectively); RG00-171
(permitting units of iShares S&P 100 Index Fund to cover short
positions of options on the S&P 100 Index (OEX)); RG01-119
(permitting Nasdaq-100 Index Tracking Shares to cover short
positions of options on the Nasdaq-100 Shares (QQQ), the Nasdaq 100
Index (NDX) or the Mini-Nasdaq 100 Index (MNX); RG02-110 (permitting
units of the iShares S&P 500 Fund (IVV) to cover short SPX option
positions); and RG07-126 (permitting units of the iShares Russell
200 Index Fund (IWM) to cover short positions of options on the
Russell 2000 index (RUT)).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of section 6(b) of the
Act.\13\ Specifically, the Exchange believes the proposed rule change
is consistent with the section 6(b)(5) \14\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.
Additionally, the Exchange believes the proposed rule change is
consistent with the section 6(b)(5) \15\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ Id.
---------------------------------------------------------------------------

    In particular, the proposed rule change provides for a specific
margin treatment related to covered puts and calls to apply to all
index options in the same manner. The current rules, together with a
no-action letter from the FRB and Regulatory Circulars, provide that no
margin is required for a short position in certain specified index
options if a long position in an underlying stock basket that meets a
specific definition or certain specified ETFs that relate to the index
are also held in the same account. The proposed rule change merely
expands the availability of this margin treatment to all index options
to the extent covered by any ETF based on the same index underlying the
index option. Similarly, current rules provide for this margin
treatment to apply to SPX options if covered by an approved mutual
fund, and the proposed rule change merely expands the availability of
this margin treatment to any mutual fund based on the same index
underlying the index option. Stock baskets, ETFs and mutual funds that
track a reference index can generally provide the same economic
function as a security underlying an option. Therefore, the Exchange
believes it is appropriate to extend the same ability to secure short
index option positions to ETFs and mutual funds that is currently
available to underlying stock baskets. Allowing this singular margin
treatment to securities providing a similar economic function promotes
just and equitable principles of trade. The Exchange believes including
this in its rules, rather than specifying single indexes covered by
this rule in Regulatory Circulars, and creating this clarity and
consistency in margin requirements will remove impediments to and
perfect the mechanisms of a free and open market and a national market
system. Additionally, proposed subparagraph (b) is substantially
similar to the rules of another options exchange.\16\
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    \16\ See NYSE MKT LLC (``NYSE MKT'') Section 7, Rule
462(d)(12)(B)(ii)(C) and Interpretation and Policy .06.
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    The Exchange also believes the proposed rule change furthers the
objectives of section 6(c)(3) of the Act,\17\ which authorizes the
Exchange to, among other things, prescribe standards of financial
responsibility or operational capability and standards of training,
experience and competence for its Trading Permit Holders and person
associated with Trading Permit Holders, as well as Regulation T issued
by the

FRB. As discussed above, the proposed rule change is merely an
extension of current margin standards and is consistent with an FRB no-
action letter that permitted the applicable margin treatment for a
specific index option and related ETF.
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    \17\ 15 U.S.C. 78f(c)(3).
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    The proposed nonsubstantive, technical changes provide for more
consistent and plain English language in similar rule provisions, which
will ultimately benefit investors.

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change
applies to all Trading Permit Holders in the same manner and makes the
same margin treatment available to all Trading Permit Holders. The
proposed rule change is unrelated to competition and instead is
intended to bring uniformity to CBOE's margin rules. It is consistent
with current rules and interpretations set forth in Regulatory
Circulars, as well as regulatory guidance, and is not intended to
impact trading on the Exchange. As discussed above, proposed
subparagraph (b) is also substantially similar to the rule of another
options exchange.\18\
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    \18\ See supra note 16.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received 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-CBOE-2015-077 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-CBOE-2015-077. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2015-077 and should be
submitted on or before October 29, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-25598 Filed 10-7-15; 8:45 am]
 BILLING CODE 8011-01-P