[Federal Register: October 14, 2008 (Volume 73, Number 199)]
[Notices]
[Page 60687]
[DOCID:fr14oc08-46]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD08-13-000]

Transmission Barriers to Entry; Supplemental Notice of Technical
Conference

October 3, 2008.
    On September 24, 2008, the Commission issued a Notice (September 24
Notice) scheduling a technical conference in the above-captioned
proceeding. As stated in the September 24 Notice, this conference is to
explore barriers to transmission development. The technical conference
will be held on October 14, 2008, from 1 p.m. to 5 p.m. (EST), in the
Commission Meeting Room at the Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC 20426. The conference will be
open for the public to attend and advance registration is not required.
Members of the Commission may attend the conference.
    If any changes occur, the revised agenda will be posted on the
calendar page for this event on the Commission's Web site, http://
www.ferc.gov, prior to the event.
    A free Webcast of this event is available through http://
www.ferc.gov. Anyone with internet access who desires to view this
event can do so by navigating to the Calendar of Events at http://
www.ferc.gov and locating this event in the Calendar. The event will
contain a link to its Webcast. The Capitol Connection provides
technical support for the free Webcasts. It also offers access to this
event via television in the Washington, DC area and via phone-bridge
for a fee. If you have any questions, visit http://
www.CapitolConnection.org or contact Danelle Springer or David
Reininger at<PHONE_NUMBER>.
    All interested persons may file written comments following the
technical conference on or before November 13, 2008.
    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations, please
send an e-mail to<EMAIL_ADDRESS>or call toll free 1-866-208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a FAX to<PHONE_NUMBER> with
the required accommodations.
    For more information about this conference, please contact: Katie
Detweiler,<PHONE_NUMBER><EMAIL_ADDRESS>or Sarah McKinley,
202-502-8368<EMAIL_ADDRESS>
Nathaniel J. Davis, Sr.,
Deputy Secretary.
 [FR Doc. E8-24277 Filed 10-10-08; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 67 (Monday, April 8, 2019)]
[Proposed Rules]
[Pages 13840-13843]
[FR Doc No: 2019-06792]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2019-0188; Product Identifier 2018-NM-174-AD]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company 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 all
The Boeing Company Model 747-200B, 747-200C, 747-200F, 747-300, 747-
400, 747-400D, 747-400F, 747-8F, and 747-8 series airplanes. This AD
was prompted by reports of uncommanded movement of the Captain's and
First Officer's seats. This proposed AD would require, for the
Captain's and First Officer's seats, repetitive horizontal actuator
identifications, repetitive checks of the horizontal movement system
(HMS), a detailed inspection of the HMS for certain airplanes, and
applicable on-condition actions. This proposed AD would also require an
inspection to determine the part number and, if applicable, the serial
number of the Captain's and First Officer's seats and applicable on-
condition actions. This proposed AD would also provide an optional
terminating action for the repetitive checks of the HMS for certain
airplanes. We are proposing this AD to address the unsafe condition on
these products.

DATES: We must receive comments on this proposed AD by May 23, 2019.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, 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: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact Boeing
Commercial Airplanes, Attention: Contractual & Data Services (C&DS),
2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740-5600;
telephone<PHONE_NUMBER>; internet https://www.myboeingfleet.com. You may
view this service information at the FAA, Transport Standards Branch,
2200 South 216th St., Des Moines, WA. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>. It is also
available on the internet at http://www.regulations.gov by searching
for and locating Docket No. FAA-2019-0188.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0188; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, the regulatory evaluation, any comments received, and other
information. The street address for Docket Operations (phone: 800-647-
5527) is in the ADDRESSES section. Comments will be available in the AD
docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Brandon Lucero, Aerospace Engineer,
Cabin Safety and Environmental Systems Section, FAA, Seattle ACO
Branch, 2200 South 216th St., Des Moines, WA 98198; phone and fax: 206-
231-3569; email: [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2019-0188;
Product Identifier 2018-NM-174-AD'' at the beginning of your comments.
We specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this NPRM. We will consider all
comments received by the closing date and may amend this NPRM because
of 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

    We have received reports of uncommanded movement of the Captain's
and First Officer's seats. An operator reported that during a takeoff,
the First Officer's seat unlocked from its

seat tracks and moved aft. The First Officer was unable to control the
airplane and the Captain took over the controls to avoid a rejected
takeoff. The unlocking of the seat from the seat tracks was caused by
actuator damage, which was a result of incorrect adjustment of the
seat's manual release lever cable, which allowed the clutch mechanism
to only partially engage.
    In addition, one operator reported that the Captain's seat could
not be locked in position after the horizontal position of the seat was
adjusted in flight. The seat became unlocked from the track and moved
freely forward and aft. Control was given to the First Officer for
approach and landing. An inspection found that the horizontal actuator
output shaft had broken. When a horizontal actuator output shaft
breaks, the pilot cannot prevent seat movement in a forward and aft
direction and cannot lock the seat in position. A broken horizontal
actuator output shaft is the result of high loads that exceed the
design limits that are caused by a stalled motor that can occur due to
high mechanical resistance to motion during powered operation of the
seat. Foreign object debris (FOD) in the seat tracks is another
condition that can result in a stalled motor and cause the horizontal
actuator output shaft to break.
    This condition, if not addressed, could result in uncommanded
movement of the Captain's or First Officer's seat during a critical
part of a flight, such as takeoff or landing, and could cause a flight
control obstruction or unintended flight control input, which could
lead to reduced controllability of the airplane.

Related Service Information Under 1 CFR Part 51

    We reviewed Boeing Special Attention Service Bulletin 747-25-3644,
Revision 1, dated July 17, 2018. This service information describes
procedures for an inspection to determine the part number, and, if
applicable, the serial number of the Captain's and First Officer's
seats and applicable on-condition actions. On-condition actions include
an inspection of each seat's fore/aft and vertical manual control
levers for looseness; moving the adjustment nut, tightening the lock
nut, readjusting the control lever, and doing a functional test; and
installing a serviceable seat.
    We also reviewed Boeing Special Attention Service Bulletin 747-25-
3653, Revision 1, dated October 19, 2018. This service information
describes procedures for repetitive horizontal actuator
identifications, repetitive checks of the HMS, a detailed inspection of
the HMS, and applicable on-condition actions. On-condition actions
include clearing the seat tracks of FOD, an overhaul of the HMS, and
checks of the HMS. The service information also describes procedures
for an optional terminating action for the repetitive checks by
installing a serviceable Captain's or First Officer's seat.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of the same type design.

Proposed AD Requirements

    This proposed AD would require accomplishment of the actions
identified in the Accomplishment Instructions of Boeing Special
Attention Service Bulletin 747-25-3644, Revision 1, dated July 17,
2018, described previously, except as discussed under ``Differences
Between this Proposed AD and the Service Information,'' and except for
any differences identified as exceptions in the regulatory text of this
proposed AD.
    This proposed AD would also require accomplishment of the actions
identified as ``RC'' (required for compliance) in the Accomplishment
Instructions of Boeing Special Attention Service Bulletin 747-25-3653,
Revision 1, dated October 19, 2018, described previously except as
discussed under ``Differences Between this Proposed AD and the Service
Information,'' and except for any differences identified as exceptions
in the regulatory text of this proposed AD.
    For information on the procedures and compliance times, see this
service information at http://www.regulations.gov by searching for and
locating Docket No. FAA-2019-0188.

Differences Between This Proposed AD and the Service Information

    Where Boeing Special Attention Service Bulletin 747-25-3644,
Revision 1, dated July 17, 2018, specifies to do the actions within 72
months after the original issue date of the service bulletin, this
proposed AD would require accomplishment of those actions within 36
months after the effective date of this AD. The 36-month compliance
time corresponds with the compliance time in Boeing Special Attention
Service Bulletin 747-25-3653, Revision 1, dated October 19, 2018. We
have determined a 36-month compliance time is appropriate for doing the
actions specified in this proposed AD. We have coordinated this
difference with Boeing.
    The effectivity of Boeing Special Attention Service Bulletin 747-
25-3644, Revision 1, dated July 17, 2018; and Boeing Special Attention
Service Bulletin 747-25-3653, Revision 1, dated October 19, 2018, is
limited to The Boeing Company Model 747-200B, 747-200C, 747-200F, 747-
300, 747-400, 747-400D, 747-400F, 747-8F, and 747-8 series airplanes
equipped with Ipeco part number series 3A090 and 3A258 Captain's and
First Officer's powered seats, line number 699 and on. However, the
applicability of this proposed AD includes all The Boeing Company Model
747-200B, 747-200C, 747-200F, 747-300, 747-400, 747-400D, 747-400F,
747-8F, and 747-8 series airplanes. Because the affected parts are
rotable parts, we have determined that these parts could later be
installed on airplanes that were initially delivered with acceptable
parts, thereby subjecting those airplanes to the unsafe condition. This
difference has been coordinated with Boeing.

Costs of Compliance

    We estimate that this proposed AD affects 95 airplanes of U.S.
registry. We estimate the following costs to comply with this proposed
AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
             Action                     Labor cost          Parts cost     Cost per product        operators
----------------------------------------------------------------------------------------------------------------
Seat identification (part and    1 work-hour x $85 per                $0  $85...............  $8,075 per seat.
 serial number).                  hour = $85.
Detailed inspection, horizontal  1 work-hour x $85 per                 0  $85 per seat......  $8,075 per seat.
 movement system.                 hour = $85, per seat.
Checks, horizontal movement      2 work-hour x $85 per                 0  $170 per seat, per  $16,150 per seat,
 system.                          hour = $170 per seat,                    check cycle.        per check cycle.
                                  per check cycle.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary on-condition
actions that would be required. We have no way of determining the
number of aircraft that might need these on-condition actions:

                                    Estimated Costs of On-Condition Actions *
----------------------------------------------------------------------------------------------------------------
               Action                         Labor cost                Parts cost           Cost per product
----------------------------------------------------------------------------------------------------------------
Overhaul or replacement, horizontal  Up to 15 work-hours x $85    Up to $6,400 per seat.  Up to $7,675 per seat.
 movement system.                     per hour = $1,275, per
                                      seat.
Inspection of each seat's fore/aft   1 work-hour x $85 per hour   0.....................  $85 per seat.
 and vertical manual control levers.  = $85, per seat.
Installation of serviceable seats..  1 work-hour x $85 per hour   0.....................  $85 per seat.
                                      = $85, per seat.
Clearing FOD.......................  1 work-hour x $85 per hour   0.....................  $85 per seat.
                                      = $85, per seat.
Functional test, adjusted control    1 work-hour x $85 per hour   0.....................  $85, per seat.
 lever cable.                         = $85, per seat.
----------------------------------------------------------------------------------------------------------------
* The estimated cost for tooling to align an affected seat for adjustment of the control lever cable is up to
  $46,064.

    We have received no definitive data that would enable us to provide
cost estimates for the optional terminating action for the on-condition
repetitive checks specified in this proposed AD.

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.
    This proposed AD is issued in accordance with authority delegated
by the Executive Director, Aircraft Certification Service, as
authorized by FAA Order 8000.51C. In accordance with that order,
issuance of ADs is normally a function of the Compliance and
Airworthiness Division, but during this transition period, the
Executive Director has delegated the authority to issue ADs applicable
to transport category airplanes and associated appliances to the
Director of the System Oversight Division.

Regulatory Findings

    We have 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 that the 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),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

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

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

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

Sec.  39.13   [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

The Boeing Company: Docket No. FAA-2019-0188; Product Identifier
2018-NM-174-AD.

(a) Comments Due Date

    The FAA must receive comments on this AD action by May 23, 2019.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all The Boeing Company Model 747-200B, 747-
200C, 747-200F, 747-300, 747-400, 747-400D, 747-

400F, 747-8F, and 747-8 series airplanes, certificated in any
category.

(d) Subject

    Air Transport Association (ATA) of America Code 25, Equipment/
furnishings.

(e) Unsafe Condition

    This AD was prompted by reports of uncommanded movement of the
Captain's and First Officer's seats. We are issuing this AD to
address uncommanded movement of the Captain's and First Officer's
seats. An uncommanded seat movement during a critical part of a
flight, such as takeoff or landing, could cause a flight control
obstruction or unintended flight control input, which could lead to
reduced controllability of the airplane.

(f) Compliance

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

(g) Horizontal Actuator Identification, Detailed Inspection, and
Repetitive Checks of Horizontal Movement System and On-Condition
Actions

    Except as specified in paragraph (i) of this AD: At the
applicable times specified in paragraph 1.E., ``Compliance,'' of
Boeing Special Attention Service Bulletin 747-25-3653, Revision 1,
dated October 19, 2018, do all applicable actions identified as
``RC'' (required for compliance) in, and in accordance with, the
Accomplishment Instructions of Boeing Special Attention Service
Bulletin 747-25-3653, Revision 1, dated October 19, 2018.

(h) Seat Identification and On-Condition Actions

    Within 36 months after the effective date of this AD, do an
inspection of the nameplate on the Captain's and First Officer's
seats for the part number, and serial number as applicable, and do
all applicable on-condition actions in accordance with the
Accomplishment Instructions of Boeing Special Attention Service
Bulletin 747-25-3644, Revision 1, dated July 17, 2018. A review of
the airplane maintenance records may be used for the seat inspection
if the part number and serial number can be conclusively determined
from that review.

(i) Exceptions to Service Information Specifications

    For purposes of determining compliance with the requirements of
this AD: Where Boeing Special Attention Service Bulletin 747-25-
3653, Revision 1, dated October 19, 2018, uses the phrase ``the
original issue date of this service bulletin,'' this AD requires
using ``the effective date of this AD.''

(j) Terminating Action for Repetitive Inspections

    Installation of a serviceable Captain's or First Officer's seat
as specified in, and in accordance with, the Accomplishment
Instructions of Boeing Special Attention Service Bulletin 747-25-
3653, Revision 1, dated October 19, 2018, terminates the repetitive
inspections required by paragraph (g) of this AD, for that seat
only.

(k) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request
to your principal inspector or local Flight Standards District
Office, as appropriate. If sending information directly to the
manager of the certification office, send it to the attention of the
person identified in paragraph (l)(1) of this AD. Information may be
emailed to: [email protected].
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair, modification, or alteration 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 Branch, FAA, to make those findings. To be
approved, the repair method, modification deviation, or alteration
deviation must meet the certification basis of the airplane, and the
approval must specifically refer to this AD.
    (4) Except as required by paragraph (i) of this AD: For service
information that contains steps that are labeled as Required for
Compliance (RC), the provisions of paragraphs (k)(4)(i) and
(k)(4)(ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step
and any figures identified in an RC step, must be done to comply
with the AD. If a step or substep is labeled ``RC Exempt,'' then the
RC requirement is removed from that step or substep. An AMOC is
required for any deviations to RC steps, including substeps and
identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted
methods in accordance with the operator's maintenance or inspection
program without obtaining approval of an AMOC, provided the RC
steps, including substeps and identified figures, can still be done
as specified, and the airplane can be put back in an airworthy
condition.

(l) Related Information

    (1) For more information about this AD, contact Brandon Lucero,
Aerospace Engineer, Cabin Safety and Environmental Systems Section,
FAA, Seattle ACO Branch, 2200 South 216th St., Des Moines, WA 98198;
phone and fax:<PHONE_NUMBER>; email: [email protected].
    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Contractual & Data Services
(C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740-
5600; telephone<PHONE_NUMBER>; internet https://www.myboeingfleet.com. You may view this referenced service
information at the FAA, Transport Standards Branch, 2200 South 216th
St., Des Moines, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

    Issued in Des Moines, Washington, on April 1, 2019.
Michael Kaszycki,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2019-06792 Filed 4-5-19; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 115 (Monday, June 16, 2014)]
[Notices]
[Pages 34374-34376]
[FR Doc No: 2014-13935]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72361; File No. SR-BX-2014-029]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Joint Back Office Pricing

June 10, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 29, 2014, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared by the 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Chapter XV (Options Pricing) to
assess joint back office (``JBO'') \3\ participants pricing the same as
Broker-Dealers \4\ and require JBO participants to utilize a new origin
code to identify JBO orders.
---------------------------------------------------------------------------

    \3\ A JBO participant is a Participant organization that
maintains a JBO arrangement with a clearing broker-dealer (``JBO
Broker'') subject to the requirements of Regulation T Section 220.7
of the Federal Reserve System. See also Exchange Rules at Chapter
XIII, Section 5.
    \4\ The term ``Broker-Dealer'' applies to any transaction which
is not subject to any of the other transaction fees applicable
within a particular category.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxbx.cchwallstreet.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to introduce a new origin code which will be
used to indicate orders for a JBO account to be cleared into the Firm
range at The Options Clearing Corporation (``OCC'') for purposes of
pricing only. Further, the Exchange proposes to assess fees and pay
rebates to JBO Orders the same as Broker-Dealers.
    Currently, JBO orders clear in the Firm \5\ range at OCC as do Firm
orders. The Exchange is proposing to introduce an origin code for
Participants to identify orders for a JBO account. The origin code will
simplify the process of identifying JBO orders for purposes of pricing
only. Participants would be required to mark their JBO orders in
accordance with the technical specifications definitions which are
provided by the Exchange. This rule change will not impact the manner
in which JBO orders are treated for purposes of other Exchange Rules
including but not limited to priority in the Exchange's System. With
this proposal, JBO orders will continue to be cleared in the Firm range
at OCC. Today, JBO orders are assessed transaction fees and paid
rebates the same as Firms. The Exchange's current pricing does not
differentiate Firms and Broker-Dealers. These market participants are
assessed the same fees and paid the same rebates. There will be no
impact as a result of this rule change as far as pricing because Firms
and Broker-Dealers are assessed the same fees and paid the same
rebates.
---------------------------------------------------------------------------

    \5\ The term ``Firm'' applies to any transaction that is
identified by a Participant for clearing in the Firm range at OCC.
---------------------------------------------------------------------------

    The Exchange proposes to amend Chapter XV of the BX Rules to define
the term JBO in the preface as follows: ``The term ``Joint Back
Office'' or ``JBO'' applies to any transaction that is identified by a
Participant for clearing in the Firm range at OCC and is identified
with an origin code as a JBO. A JBO will be priced the same as a
Broker-Dealer as of September 1, 2014.'' Also, the Exchange describes a
JBO participant as ``a Participant that maintains a JBO arrangement
with a clearing broker-dealer (``JBO Broker'') subject to the
requirements of Regulation T Section 220.7 of the Federal Reserve
System as further discussed in Chapter XIII, Section 5.''

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and furthers the objectives of Section
6(b)(5) of the Act \7\ in particular, in that it is 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.
Adding an origin code to JBO orders is a more efficient manner in which
to identify those orders separate and apart from other orders entered
on BX. In addition, JBO orders will continue to clear in the Firm range
at OCC as is the case today. The Exchange will more easily be able to
discern the pricing associated with clearly identified JBO orders. This
will eliminate any potential confusion, thereby removing a potential
impediment to and perfecting the mechanism for a free and open market
and a national market system, and, in general, protecting investors and
the public interest. The Exchange believes that automating this process
of manually identifying JBO Orders will promote just and equitable
principles of trade by creating an identifiable method of
distinguishing JBO orders entered into the Exchange's System. The
Exchange believes that automating this process is a more efficient
manner in which to identify and bill these types of orders.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\8\ in general, and with
Section 6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which the Exchange operates or controls, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange believes that its proposal to assess
pricing for JBO orders the same as for Broker-Dealers is reasonable
because the Exchange believes that the business of a JBO is similar to
that of an away market maker and other Broker-Dealers. A JBO
participant maintains a JBO arrangement with a JBO Broker pursuant to
Section 220.7 of Regulation T. Similarly, an away market maker is a
member of another national securities exchange registered as a market
maker in an options class(es). An away marker maker is considered to be
a Broker-Dealer as the market maker is not subject to market making
obligations on the Exchange similar to other BX Market Makers. The
Chicago Board Options Exchange, Incorporated (``CBOE'') assesses manual
equity option JBO orders fees the same as broker-dealer and electronic
equity option JBO orders fees the same as a Professional.\10\
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4) and (5).
    \10\ See CBOE's Fees Schedule.
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    The Exchange believes that it is reasonable to assess the same fees
and pay the same rebates on JBO orders as are paid and assessed to a
Broker-Dealer because the Exchange believes a JBO participant's
business is similar to that of a Broker-Dealer and should therefore be
priced the same. The Exchange believes that its proposal to assess JBO
orders pricing the same as Broker-Dealers is equitable and not unfairly
discriminatory because the Exchange will uniformly assess JBO orders
the same fees and pay the same rebates as today are assessed and paid
to a Broker-Dealer, which today are the same fees and rebates
applicable to a Firm. There will be no impact as far as pricing with
this proposal because Firms and Broker-Dealers are assessed the same
fees and paid the same rebates.

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

    BX does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange is assessing fees to all JBOs in
a similar manner with this proposal. JBO participants would be assessed
fees and paid rebates the same as Broker-Dealers. The Exchange believes
that assessing JBO Orders the same as Broker-Dealers does not impose a
burden on competition because a JBO participant's business is similar
to that of a Broker-Dealer and should therefore be priced the same.
Also, today, Firms and Broker-Dealer fees and rebates are the same.
    Further, utilizing an origin code to identify JBO Orders does not
impose an unfair burden on competition. The Exchange believes that
automating the process of manually identifying JBO Orders by creating
an identifiable method of distinguishing JBO orders entered into the
Exchange's System would assist the Exchange in regulating its market.
In addition, CBOE utilizes an origin code today to identify JBO Orders.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest; does not
impose any significant burden on competition; and by its terms does not
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \11\ of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: necessary
or appropriate in the public interest; for the protection of investors;
or otherwise in furtherance of the purposes of the Act. If the
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule should be approved
or 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-BX-2014-029 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-BX-2014-029. 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-BX-2014-029 and
should be submitted on or before July 7, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M O'Neill,
Deputy Secretary.
[FR Doc. 2014-13935 Filed 6-13-14; 8:45 am]
BILLING CODE 8011-01-P