[Federal Register Volume 87, Number 86 (Wednesday, May 4, 2022)]
[Notices]
[Pages 26378-26380]
[FR Doc No: 2022-09519]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94814; File No. SR-NYSE-2022-04]

Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change To Amend Rules 5P, 5.2(j)(8)(e), 8P, and 98

April 28, 2022.
    On January 14, 2022, New York Stock Exchange LLC (``Exchange'' or
``NYSE'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to permit the listing and trading of certain
exchange-traded products (``ETPs'') that overlie one or more NMS Stocks
listed on the Exchange. The proposed rule change was published for
comment in the Federal Register on January 31, 2022.\3\ On March 9,
2022, pursuant to Section 19(b)(2) of the Act,\4\ the Commission
designated a longer period within which to approve the proposed rule
change, disapprove the proposed rule change, or institute proceedings
to determine whether to disapprove the proposed rule change.\5\ The
Commission has received no comment letters on the proposal. This order
institutes proceedings under Section 19(b)(2)(B) of the Act \6\ to
determine whether to approve or disapprove the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 94053 (Jan. 25,
2022), 87 FR 4982 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 94392, 87 FR 14592
(Mar. 15, 2022). The Commission designated May 1, 2022 as the date
by which it should approve or disapprove, or institute proceedings
to determine whether to disapprove, the proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
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I. Summary Description of the Proposal \7\
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    \7\ For a complete description of the proposed rule change, see
Notice, supra note 3.
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    The Exchange proposes to amend its rules regarding side-by-side
trading, which is the trading of an equity

security and its related derivative product at the same physical
location. Specifically, the Exchange proposes to exclude from its
listing prohibitions in NYSE Rules 5P and 8P \8\ shares of an ETP that
independently satisfies the quantitative generic listing criteria set
forth in NYSE Rules 5.2(j)(3), Supplementary Material .01(a), NYSE Rule
5.2(j)(6)(B)(I); or proposed Rule 5.2(j)(8)(e)(1)(B), as well as shares
of an ETP that independently satisfies the generic listing criteria set
forth in NYSE Rules 8.100, Supplementary Material .01(a)(A) or 8.600,
Supplementary Material .01(a).\9\
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    \8\ NYSE Rules 5P and 8P generally prohibit the Exchange from
listing shares of an ETP that ``has any component NMS Stock that is
listed on the Exchange or that is based on, or represents an
interest in, an underlying index or reference asset that includes an
NMS Stock listed on the Exchange. NMS Stock is defined in Rule 600
of Regulation NMS, 17 CFR 242.600(b)(48) as ``any NMS security other
than an option.'' ``NMS Security'' means any security or class of
securities for which transaction reports are collected, processed,
and made available pursuant to an effective transaction reporting
plan, or an effective national market system plan for reporting
transactions in listed options.'' 17 CFR 242.600(b)(47). ``NMS
Security'' refers to ``exchange-listed equity securities and
standardized options, but does not include exchange-listed debt
securities, securities futures, or open-end mutual funds, which are
not currently reported pursuant to an effective transaction
reporting plan.'' See Question 1.1 in the ``Responses to Frequently
Asked Questions Concerning Large Trader Reporting,'' available at:
https://www.sec.gov/divisions/marketreg/large-trader-faqs.htm.
    \9\ Shares of Active Proxy Portfolio Shares and Managed
Portfolio Shares, which are issued by funds whose portfolios are not
fully transparent, already are exempted from the general
prohibition. See NYSE Rule 8P.
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    The Commission previously approved integrated market making and
side-by-side trading for ``broad-based'' exchange traded funds, Trust-
Issued Receipts, and related options.\10\ According to the Exchange,
under Commission precedent, (1) integrated market making and side-by-
side trading in both the ETP and related options is permissible--with
no additional requirement for information barriers or physical or
organizational separation--where the ETP is ``broad-based,'' i.e., not
readily susceptible to manipulation; (2) an ETP is broad-based when its
the individual components are sufficiently liquid and well-capitalized
and the product is not over-concentrated; and (3) to determine whether
an ETP is broad-based, the Commission has relied on an exchange's
listing standards.\11\ In support of its proposal, the Exchange
analyzes aspects of its existing--and in the case of Exchange-Traded
Fund Shares, its proposed--listing criteria for shares of the specified
ETPs and concludes that they are sufficiently ``broad-based'' to
address potential manipulation concerns arising out of trading those
shares on the same physical trading floor as one or more underlying
NYSE-listed securities.\12\
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    \10\ See Securities Exchange Act Release No. 46213, 67 FR 48232
(SR-Amex-2002-21); see also Securities Exchange Act Release No.
62479 (July 9, 2010), 75 FR 41264 (July 15, 2010) (SR-Amex-2010-31)
(approving side-by-side trading and integrated market making in the
QQQ ETF and certain of its component securities where the QQQs met
the composition and concentration measures to be classified as a
broad-based ETF).
    \11\ See Notice, supra note 3, 87 FR at 4983.
    \12\ See id., 87 FR at 4984-85
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    The Exchange also proposes to amend a rule regarding integrated
market making,\13\ which is the practice of the same person or firm
making markets in an equity security and its related derivative
product. NYSE assigns each of securities it lists to a Designated
Market Maker (``DMM''), and trading is on the floor of the Exchange.
Integrated market making could be implicated if NYSE starts listing
ETPs with an underlying NYSE Component Security because each ETP would
be assigned to a DMM and that DMM also may be assigned one or more NYSE
Component Securities that underlie the ETP's underlying index or
portfolio. The Exchange proposes to narrow the definition of ``related
products'' to exclude derivative instruments that overlie ETPs listed
under NYSE Rules 5.2(j)(3), Supplementary Material .01(a);
5.2(j)(6)(B)(I); 5.2(j)(8)(e)(1)(B); 8.100, Supplementary Material
.01(a)(A); 8.600 Supplementary Material .01(a); 8.601; or 8.900.
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    \13\ Current NYSE Rule 98(c)(6) prohibits DMM units from
operating as a specialist or market maker on the Exchange in
``related products'' unless specifically permitted in Exchange
rules.
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    While informational advantage is a concern with respect to
integrated market making,\14\ the Exchange asserts that there are
sufficient safeguards in place to prohibit the misuse of material
nonpublic information by a member organization that operates a DMM
unit. Specifically, the Exchange asserts that Rule 98 contains narrowly
tailored restrictions to address that DMMs while on the floor may have
access to certain floor-based non-public information and requires DMM
units to maintain procedures and controls to prevent the misuse of
material, non-public information that are effective and appropriate for
that member organization.\15\
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    \14\ See Securities Exchange Act Release No. 46213, supra note
10, 67 FR at 48235.
    \15\ See id., 87 FR at 4986.
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    According to the Exchange, trading on the Exchange is subject to a
comprehensive regulatory program that includes a suite of surveillances
and routine examinations that review trading by DMMs and other market
participants on the Exchange's trading floor, including surveillances
designed to monitor for trading ahead and manipulative activity.\16\ To
assist Exchange surveillance of DMM trading activity, a member
organization operating a DMM unit must daily provide the Exchange with
net position information in DMM securities by the DMM unit and any
independent trading unit of which it is part for such times and in the
manner prescribed by the Exchange pursuant to Rule 98(c)(5).\17\ In
addition, routine examinations are conducted consistent with the
current exam-based regulatory program associated with Rule 98 that
reviews member organizations operating DMM units for compliance with
the above-described policies and procedures to protect against the
misuse of material nonpublic information.\18\ Lastly, the Exchange
asserts that DMM market making activity is not materially different
from market making on other exchanges and that these existing programs
are reasonably designed to address any concerns that may be raised by
the trading of the specified listed ETPs that have underlying NYSE
Component Securities.\19\
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    \16\ See id., 87 FR at 4987.
    \17\ See id.
    \18\ See id.
    \19\ See id.
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II. Proceedings To Determine Whether To Approve or Disapprove SR-NYSE-
2019-54 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \20\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
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    \20\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act,\21\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section

6(b)(5) of the Act, which requires, among other things, that the rules
of a national securities exchange be ``designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade,'' and ``to protect investors and the public
interest.'' \22\
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    \21\ Id.
    \22\ 15 U.S.C. 78f(b)(5).
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    The Commission asks that commenters address the sufficiency of the
Exchange's statements in support of the proposal, which are set forth
in the Notice, in addition to any other comments they may wish to
submit about the proposed rule change. In particular, the Commission
seeks comment on the following questions and asks commenters to submit
data where appropriate to support their views.
    1. What are commenters' views generally on whether the Exchange's
proposal to implement side-by-side trading and integrated market making
for certain ETPs to be listed and traded on the Exchange is consistent
with Section 6(b)(5) of the Act, which requires that the Exchange's
rules be designed to, among other things, prevent fraudulent and
manipulative acts and practices?
    2. Do the quantitative generic listing criteria of current Rules
5.2(j)(3), Supplementary Material .01(a) (applicable to Investment
Company Units), 5.2(j)(6)(B)(I) (applicable to Equity Index-Linked
Securities), and proposed Rule 5.2(j)(8), as well as the generic
listing criteria of current NYSE Rules 8.100 (applicable to Portfolio
Depositary Receipts) and 8.600 (applicable to Managed Fund Shares)
adequately address the concerns reflected in the ``broad-based'' test
previously articulated by the Commission with respect to side-by-side
trading and integrated market making? \23\ If not, why? Should the
Commission consider other factors in reviewing side-by-side trading and
integrated market making?
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    \23\ See supra note 10.
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    3. What are commenters' views about whether the proposed changes to
Rule 98 to exclude the specified ETPs listed on the Exchange from the
definition of ``related products'' would remove impediments to and
perfect the mechanism of a free and open market and a national market
system? Do commenters agree that such changes would facilitate the
assignment of listed ETPs, including ETPs with underlying NYSE
Component Securities that meet the specified listing rules in Rules 5P
and 8P, to DMMs and permit DMMs to trade such listed ETPs consistent
with existing Rules governing DMM trading? If so, why? If not, why not?
    4. What informational advantage (if any) over other market
participants with respect to trading an ETP or its underlying
securities might a DMM (or other member) obtain as a result of the
proposed implementation of side-by-side trading and integrated market
making for ETPs with underlying NYSE Component Securities? What
concerns, if any, do commenters have about the potential for a DMM (or
other member) to misuse material, non-public information?

III. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) or any other provision of the Act, or
the rules and regulations thereunder. Although there do not appear to
be any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\24\
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    \24\ Section 19(b)(2) of the Act, as amended by the Securities
Act Amendments of 1975, Pub. L. 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
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    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by May 25, 2022. Any person who wishes to file a rebuttal
to any other person's submission must file that rebuttal by June 8,
2022. The Commission asks that commenters address the sufficiency of
the Exchange's statements in support of the proposal, in addition to
any other comments they may wish to submit about the proposed rule
change.
    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 protected]. Please include
File Number SR-NYSE-2022-04 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-NYSE-2022-04. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2022-04 and should be submitted by
May 25, 2022. Rebuttal comments should be submitted by June 8, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-09519 Filed 5-3-22; 8:45 am]
BILLING CODE P


[Federal Register Volume 88, Number 127 (Wednesday, July 5, 2023)]
[Notices]
[Pages 42998-42999]
[FR Doc No: 2023-14120]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-2023-1486]

Agency Information Collection Activities: Requests for Comments;
Clearance of 2120-0026 Approval of Information Collection: Domestic and
International Flight Plans

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA
invites public comments about our intention to request the Office of
Management and Budget (OMB) approval to renew an information
collection. The collection involves extracting flight data such as
aircraft, routing speed, etc. from domestic and international flights.

DATES: Written comments should be submitted by: September 5, 2023.

ADDRESSES: Please send written comments:
    By Electronic Docket: www.regulations.gov (Enter docket number into
search field).
    By mail: [email protected]; phone:<PHONE_NUMBER>.
    By fax:

FOR FURTHER INFORMATION CONTACT: Aldwin Humphrey by email at:
[email protected]; phone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for FAA's performance; (b) the
accuracy of the estimated burden; (c) ways for FAA to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.
    OMB Control Number: 2120-0026.
    Title: Domestic and International Flight Plans.
    Form Numbers: FAA form 7233-1 Domestic Flight Plan, FAA form 7233-4
International Flight Plan.
    Type of Review: Renewal of information collection.
    Background: The Federal Aviation Administration (FAA) is authorized
and directed by title 49, United States Code, paragraph 40103(b), to
prescribe air

traffic rules and regulations governing the flight of aircraft for the
protection and identification of aircraft and property and persons on
the ground. Title 14, CFR, part 91, subchapter F, prescribes flight
rules governing the operation of aircraft within the United States.
These rules govern the operation of aircraft (other than moored
balloons, kites, unmanned rockets and unmanned free balloons) within
the United States and for flights across international borders.
Paragraphs 91.153 and 91.169, address flight plan information
requirements. Paragraph 91.173 states requirements for when an
instrument flight rules (IFR) flight plan must be filed. International
Standards Rules of the Air, Annex 2 to the Convention on International
Civil Aviation paragraph 3.3 states requirements for filing
international flight plans. In addition, a Washington, District of
Columbia (DC) Special Flight Rules Area (SFRA) was implemented
requiring pilots operating within a certain radius of Washington, DC to
follow special security flight rules. The SFRA also includes three (3)
general aviation airports in Maryland (College Park, Clinton/Washington
Executive/Hyde Field, and Friendly/Potomac Airfield) where pilots are
required to file a flight plan regardless of whether they are flying
under visual flight rules (VFR) or IFR. This collection of information
supports the Department of Homeland Security and the Department of
Defense in addition to the normal flight plan purposes.
    Almost 100 percent of flight plans are filed electronically.
However, as a courtesy to the aviation public, flight plans may be
submitted in paper form. Flight plans may be filed in the following
ways:
     Air carrier and air taxi operations, and certain corporate
aviation departments, have been granted authority to electronically
file flight plans directly with the FAA. The majority of air carrier
and air taxi flights are processed in this manner.
     Air carrier and air taxi operators may submit pre-stored
flight plan information on scheduled flights to Air Route Traffic
Control Centers (ARTCC) to be entered electronically at the appropriate
times.
     Pilots may call 1-800-WX-BRIEF (992-7433) and file flight
plans with a flight service station specialist who enters the
information directly into a computer system that automatically
transmits the information to the appropriate air traffic facility.
Pilots calling certain flight service stations have the option of using
a voice recorder to store the information that will later be entered by
a specialist.
     Private and corporate pilots who fly the same aircraft and
routes at regular times may prestore flight plans with flight service
stations. The flight plans will then be entered automatically into the
air traffic system at the appropriate time.
     Pilots who visit a flight service station in person may
choose to file a flight plan by using a paper form. The data will then
be entered into a computer and filed electronically. The pilot will
often keep the paper copy for his/her record.
    Respondents: Air carrier and air taxi operations, and certain
corporate aviation departments, General Aviation Pilots.
    Frequency: on occasion.
    Estimated Average Burden per Response: 2.5 minutes per flight plan.
    Estimated Total Annual Burden: 718,618 hours.

    Issued in Washington, DC, on June 28, 2023.
Aldwin E. Humphrey,
Air Traffic Control Specialist, Office of Flight Service Safety and
Operations, AJR-B.
[FR Doc. 2023-14120 Filed 7-3-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 76 (Wednesday, April 20, 2016)]
[Proposed Rules]
[Pages 23208-23212]
[FR Doc No: 2016-08957]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-5465; Directorate Identifier 2015-NM-041-AD]
RIN 2120-AA64

Airworthiness Directives; BAE SYSTEMS (Operations) Limited
Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to supersede Airworthiness Directive (AD) 2010-10-
13, for all BAE SYSTEMS (Operations) Limited Model BAe 146 and Avro 146
series airplanes. AD 2010-10-13 currently requires repetitive
inspections

of the wing fixed leading edge and front spar structure for corrosion
and cracking, and repair if necessary. Since we issued AD 2010-10-13,
the Design Approval Holder (DAH) has issued revised inspection
procedures that eliminate a previously approved inspection procedure.
This proposed AD would require revised inspection procedures. We are
proposing this AD to detect and correct corrosion and cracking of the
wing fixed leading edge and front spar structure, which could result in
reduced structural integrity of the wing.

DATES: We must receive comments on this proposed AD by June 6, 2016.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    For service information identified in this NPRM, contact BAE
Systems (Operations) Limited, Customer Information Department,
Prestwick International Airport, Ayrshire, KA9 2RW, Scotland, United
Kingdom; telephone +44 1292 675207; fax +44 1292 675704; email
<EMAIL_ADDRESS>Internet http://www.baesystems.com/Businesses/RegionalAircraft/index.htm. You may view this referenced
service information at the FAA, Transport Airplane Directorate, 1601
Lind Avenue SW., Renton, WA. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-
5465; 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 proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Operations office (telephone<PHONE_NUMBER>) is in the ADDRESSES section.
Comments will be available in the AD docket shortly after receipt.

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

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2016-5465;
Directorate Identifier 2015-NM-041-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    On April 30, 2010, we issued AD 2010-10-13, Amendment 39-16292 (75
FR 27419, May 17, 2010) (``AD 2010-10-13''). AD 2010-10-13 requires
actions intended to address an unsafe condition on all BAE SYSTEMS
(Operations) Limited Model BAe 146 and Avro 146 series airplanes.
    Since we issued AD 2010-10-13, the DAH has issued revised
inspection procedures that eliminates a previously approved inspection
procedure.
    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA
Airworthiness Directive 2014-0047, correction dated February 26, 2015
(referred to after this as the Mandatory Continuing Airworthiness
Information, or ``the MCAI''), to correct an unsafe condition. The MCAI
states:

    Corrosion of the wing fixed leading edge structure was detected
on a BAe 146 aeroplane during removal of wing removable edge for a
repair. The review of available scheduled tasks intended to detect
environmental and fatigue deteriorations of the wing revealed that
they may not have been sufficient to identify corrosion or fatigue
damage in the affected structural area.
    This condition, if not detected and corrected, could lead to
degradation of the structural integrity of the wing.
    To address this potential unsafe condition, EASA issued AD 2009-
0014 (http://ad.easa.europa.eu/blob/easa_ad_2009_0014_superseded.pdf/AD_2009-0014_1) [which corresponds
to FAA AD 2010-10-13] to require repetitive inspections of fixed
wing leading edge and front spar structure [for cracking and
corrosion] [and repair if necessary] in accordance with BAE Systems
(Operations) Ltd Inspection Service Bulletin (ISB) ISB.57-072 which
incorporated two possible inspection procedures, either method 1, a
combination of a detailed visual inspection (DVI) and a visual
inspection (VI) after removal of the outer fixed leading edge only,
or method 2, a DVI only, after removal of the inner, centre and
outer fixed leading edges.
    Since that [EASA] AD was issued, BAE Systems (Operations) Ltd
issued ISB.57-072 Revision 1 to correct a material reference number,
Revision 2, which removed method 1 as an available inspection
procedure to detect fatigue and environmental damage of the wing
structure and Revision 3 to delete the requirement to install
weights if the engines were removed when the leading edges were
removed.
    For the reasons described above, this [EASA] AD retains the
requirements of EASA AD 2009-0014, which is superseded, but requires
accomplishment of the [repetitive] inspections in accordance with
updated inspection procedures, i.e. method 2 only.
    This [EASA] AD is re-published to correct a typographical error
in Table 1, restoring a compliance time as previously required by
EASA AD 2009-0014.

    The repetitive inspection interval for the detailed visual
inspection for cracking and corrosion of the wing fixed leading edge
and front spar structure is:
     12 years or 36,000 flight cycles, whichever occurs
earlier, for airplanes on which the enhanced corrosion protection has
not been accomplished.
     6 years or 36,000 flight cycles, whichever occurs earlier,
for airplanes on which the enhanced corrosion protection has been
accomplished.
    You may examine the MCAI in the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-
5465.

Related Service Information Under 1 CFR Part 51

    BAE SYSTEMS (Operations) Limited has issued Service Bulletin
ISB.57-072, Revision 3, dated August 31, 2010. The service information
describes procedures for inspection and repair for cracking and
corrosion of the wing fixed leading edge and front spar structure. 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 and Requirements of This Proposed AD

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

Costs of Compliance

    We estimate that this proposed AD affects 4 airplanes of U.S.
registry.
    The actions required by AD 2010-10-13, and retained in this
proposed AD take about 12 work-hours per product, and 1 work-hour per
product for reporting, at an average labor rate of $85 per work-hour.
Based on these figures, the estimated cost of the actions that are
required by AD 2010-10-13 is $1,105 per product.
    The new requirements of this proposed AD add no additional economic
burden.
    We have received no definitive data that would enable us to provide
cost estimates for the on-condition actions specified in this proposed
AD.

Paperwork Reduction Act

    A federal agency may not conduct or sponsor, and a person is not
required to respond to, nor shall a person be subject to penalty for
failure to comply with a collection of information subject to the
requirements of the Paperwork Reduction Act unless that collection of
information displays a current valid OMB control number. The control
number for the collection of information required by this AD is 2120-
0056. The paperwork cost associated with this AD has been detailed in
the Costs of Compliance section of this document and includes time for
reviewing instructions, as well as completing and reviewing the
collection of information. Therefore, all reporting associated with
this AD is mandatory. Comments concerning the accuracy of this burden
and suggestions for reducing the burden should be directed to the FAA
at 800 Independence Ave. SW., Washington, DC 20591, ATTN: Information
Collection Clearance Officer, AES-200.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    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 removing Airworthiness Directive (AD)
2010-10-13, Amendment 39-16292 (75 FR 27419, May 17, 2010), and adding
the following new AD:

BAE SYSTEMS (Operations) Limited: Docket No. FAA-2016-5465;
Directorate Identifier 2015-NM-041-AD.

(a) Comments Due Date

    We must receive comments by June 6, 2016.

(b) Affected ADs

    This AD replaces AD 2010-10-13, Amendment 39-16292 (75 FR 27419,
May 17, 2010) (``AD 2010-10-13'').

(c) Applicability

    This AD applies to BAE SYSTEMS (Operations) Limited Model BAe
146-100A, -200A, and -300A series airplanes; and Model Avro 146-
RJ70A, 146-RJ85A, and 146-RJ100A airplanes; certificated in any
category, all serial numbers.

(d) Subject

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

(e) Reason

    This AD was prompted by revised inspection procedures issued by
the Design Approval Holder. We are issuing this AD to detect and
correct corrosion and cracking of the wing fixed leading edge and
front spar structure, which could result in reduced structural
integrity of the airplane.

(f) Compliance

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

(g) Retained Actions and Compliance, With Added Provision for
Terminating Action

    This paragraph restates the requirements of paragraph (f) of AD
2010-10-13, with an added provision for terminating action.
Accomplishing the initial inspection required by paragraph (j) of
this AD terminates the requirements of paragraph (g) of this AD.
    (1) At the applicable time identified in paragraph (g)(1)(i),
(g)(1)(ii), or (g)(1)(iii) of this AD: Perform a detailed visual
inspection and visual inspection (Method 1) or a detailed visual
inspection (Method 2) for cracking and corrosion of the wing fixed
leading edge and front spar structure, in accordance with paragraph
2.C. or 2.D., as applicable, of the Accomplishment Instructions of
BAE SYSTEMS (Operations) Limited Inspection Service Bulletin ISB.57-
072, Revision 1, dated September 25, 2008.
    (i) For airplanes with less than 9 years since date of issuance
of the original airworthiness certificate or the date of issuance of
the original export certificate of airworthiness as of the effective
date of this AD: Within 18 months after June 21, 2010 (the effective
date of AD 2010-10-13).
    (ii) For airplanes with 9 years or more, but less than 15 years,
since date of issuance of the original airworthiness certificate or
the date of issuance of the original export certificate of
airworthiness as of June 21, 2010 (the effective date of AD 2010-10-
13): Within 18 months after June 21, 2010, or within 16 years since
date of issuance of the original airworthiness certificate or the
date of issuance of the original export certificate of
airworthiness, whichever occurs first.

    (iii) For airplanes with 15 years or more since date of issuance
of the original airworthiness certificate or the date of issuance of
the original export certificate of airworthiness as of June 21, 2010
(the effective date of AD 2010-10-13): Within 6 months after June
21, 2010.
    (2) After doing the initial inspection required by paragraph
(g)(1) of this AD, at the applicable intervals specified in
paragraph (g)(2)(i) or (g)(2)(ii) of this AD, accomplish the
repetitive inspections of the wing fixed leading edge and front spar
structure for cracking and corrosion in the ``area of inspection''
specified in Table 1 of paragraph 1.D., ``Compliance,'' of BAE
SYSTEMS (Operations) Limited Inspection Service Bulletin ISB.57-072,
Revision 1, dated September 25, 2008. Do the inspections in
accordance with paragraph 2.C. (Method 1) or paragraph 2.D. (Method
2) of the Accomplishment Instructions of BAE SYSTEMS (Operations)
Limited Inspection Service Bulletin ISB.57-072, Revision 1, dated
September 25, 2008. Where previously applied, enhanced corrosion
protection may then be re-applied, as an option, in accordance with
paragraph 2.E. of the Accomplishment Instructions of BAE SYSTEMS
(Operations) Limited Inspection Service Bulletin ISB.57-072,
Revision 1, dated September 25, 2008. Perform the repetitive
inspections at the times specified in paragraph (g)(2)(i) or
(g)(2)(ii) of this AD, as applicable.
    (i) For airplanes having enhanced corrosion protection that was
applied during the previous inspection: Inspect at intervals not to
exceed 144 months.
    (ii) For airplanes not having enhanced corrosion protection that
was applied during the previous inspection: Inspect at intervals not
to exceed 72 months.
    (3) After doing the initial inspection required by paragraph
(g)(1) of this AD, at intervals not to exceed 36,000 flight cycles,
accomplish fatigue inspections in accordance with paragraph 2.C.
(Method 1) or paragraph 2.D. (Method 2) of the Accomplishment
Instructions of BAE SYSTEMS (Operations) Limited Inspection Service
Bulletin ISB.57-072, Revision 1, dated September 25, 2008.
    (4) If any cracking or corrosion is found during any inspection
required by paragraph (g) of this AD, before further flight, repair
in accordance with the Accomplishment Instructions of BAE SYSTEMS
(Operations) Limited Inspection Service Bulletin ISB.57-072,
Revision 1, dated September 25, 2008.
    (5) No repair terminates the inspection requirements of this AD.
    (6) Actions done before June 21, 2010 (the effective date of AD
2010-10-13), in accordance with BAE SYSTEMS (Operations) Limited
Inspection Service Bulletin ISB.57-072, dated February 22, 2008, are
considered acceptable for compliance with the corresponding actions
specified in this AD.
    (7) Submit a report of the findings (both positive and negative)
of the inspection required by paragraph (f)(1) of this AD to
Customer Liaison, Customer Support (Building 37), BAE SYSTEMS
(Operations) Limited, Prestwick International Airport, Ayrshire, KA9
2RW, Scotland; fax +44 (0) 1292 675432; email
<EMAIL_ADDRESS>at the applicable time specified in
paragraphs (g)(7)(i) and (g)(7)(ii) of this AD. The report must
include the inspection results, a description of any discrepancies
found, the airplane serial number, and the number of landings and
flight hours on the airplane.
    (i) If the inspection was done on or after June 21, 2010 (the
effective date of AD 2010-10-13): Submit the report within 30 days
after the inspection.
    (ii) If the inspection was done before June 21, 2010 (the
effective date of AD 2010-10-13): Submit the report within 30 days
after June 21, 2010.

(h) Retained Corrosion Protection Information, With No Changes

    This paragraph restates the corrosion protection information in
Note 2 of AD 2010-10-13, with no changes. At the discretion of the
airplane owner/operator, corrosion protection may be embodied on
those areas subject to a detailed visual inspection, in accordance
with paragraph 2.E. or paragraph 2.F. of the Accomplishment
Instructions of BAE SYSTEMS (Operations) Limited Inspection Service
Bulletin ISB.57-072, Revision 1, dated September 25, 2008.
Embodiment of enhanced corrosion protection in accordance with
paragraph 2.E. of the Accomplishment Instructions of BAE SYSTEMS
(Operations) Limited Inspection Service Bulletin ISB.57-072,
Revision 1, dated September 25, 2008, allows the interval of the
repetitive inspection (as required by paragraph (g)(2) of this AD)
to be extended in the area(s) of application in accordance with
paragraph (g)(2)(i) or (g)(2)(ii) of this AD, as applicable.

(i) Retained Inspection Information, With No Changes

    This paragraph restates the inspection information in Note 3 of
AD 2010-10-13, with no changes. The inspections required by this AD
prevail over the Maintenance Review Board Report (MRBR), Maintenance
Planning Document (MPD), Corrosion Prevention and Control Program
(CPCP), and Supplemental Structural Inspection Document (SSID)
inspections defined in paragraph 1.C.(3) of BAE SYSTEMS (Operations)
Limited Inspection Service Bulletin ISB.57-072, Revision 1, dated
September 25, 2008.

(j) New Requirement of This AD: Repetitive Inspection

    At the applicable time identified in paragraph (j)(1), (j)(2),
or (j)(3) of this AD; or within 6 months after the effective date of
this AD; whichever occurs later: Perform a detailed visual
inspection for cracking and corrosion of the wing fixed leading edge
and front spar structure, in accordance with paragraph 2.C. of the
Accomplishment Instructions of BAE SYSTEMS (Operations) Limited
Inspection Service Bulletin ISB.57-072, Revision 3, dated August 31,
2010. Repeat the inspection thereafter at the applicable intervals
specified in paragraph 1.D.2. of BAE SYSTEMS (Operations) Limited
Inspection Service Bulletin ISB.57-072, Revision 3, dated August 31,
2010. Accomplishing the initial inspection required by this
paragraph terminates the requirements of paragraph (g) of this AD.
    (1) For airplanes with less than 9 years since date of issuance
of the original airworthiness certificate or the date of issuance of
the original export certificate of airworthiness as of June 21, 2010
(the effective date of AD 2010-10-13): Within 18 months after June
21, 2010, or within 9 years since date of issuance of the original
airworthiness certificate or the date of issuance of the original
export certificate of airworthiness, whichever occurs later.
    (2) For airplanes with 9 years or more, but less than 15 years,
since date of issuance of the original airworthiness certificate or
the date of issuance of the original export certificate of
airworthiness as of June 21, 2010 (the effective date of AD 2010-10-
13): Within 18 months after June 21, 2010, or within 16 years since
date of issuance of the original airworthiness certificate or the
date of issuance of the original export certificate of
airworthiness, whichever occurs first.
    (3) For airplanes with 15 years or more since date of issuance
of the original airworthiness certificate or the date of issuance of
the original export certificate of airworthiness as of the June 21,
2010 (the effective date of AD 2010-10-13): Within 6 months after
June 21, 2010.

(k) New Requirement of This AD: Repair

    If any crack or corrosion are found during any inspection
required by paragraph (j) of this AD: Before further flight, repair
using a method approved by the Manager, International Branch, ANM-
116, Transport Airplane Directorate, FAA; or the European Aviation
Safety Agency (EASA); or BAE SYSTEMS (Operations) Limited's EASA
Design Organization Approval (DOA).

(l) No Provisions for Terminating Action

    Accomplishment of any repair, as required by paragraph (k) of
this AD, does not constitute terminating action for inspections
required by this AD.

(m) Credit for Previous Actions

    This paragraph provides credit for actions required by this AD,
if those actions were performed before the effective date of this AD
using BAE SYSTEMS (Operations) Limited Inspection Service Bulletin
ISB.57-072, dated February 22, 2008; or BAE SYSTEMS (Operations)
Limited Inspection Service Bulletin ISB.57-072, Revision 1, dated
September 25, 2008.

(n) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, 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 International Branch, send it to ATTN: Todd
Thompson, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton,
WA 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

Information may be emailed to<EMAIL_ADDRESS>
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. The AMOC approval letter must specifically reference this
AD.
    (2) Contacting the Manufacturer: As of the effective date of
this AD, for any requirement in this AD to obtain corrective actions
from a manufacturer, the action must be accomplished using a method
approved by the Manager, International Branch, ANM-116, Transport
Airplane Directorate, FAA; or the EASA; or BAE SYSTEMS (Operations)
Limited's EASA DOA. If approved by the DOA, the approval must
include the DOA-authorized signature.
    (3) Reporting Requirements: A federal agency may not conduct or
sponsor, and a person is not required to respond to, nor shall a
person be subject to a penalty for failure to comply with a
collection of information subject to the requirements of the
Paperwork Reduction Act unless that collection of information
displays a current valid OMB Control Number. The OMB Control Number
for this information collection is 2120-0056. Public reporting for
this collection of information is estimated to be approximately 5
minutes per response, including the time for reviewing instructions,
completing and reviewing the collection of information. All
responses to this collection of information are mandatory. Comments
concerning the accuracy of this burden and suggestions for reducing
the burden should be directed to the FAA at: 800 Independence Ave.
SW., Washington, DC 20591, Attn: Information Collection Clearance
Officer, AES-200.

(o) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA Airworthiness Directive 2014-0047, correction dated
February 26, 2015, for related information. This MCAI may be found
in the AD docket on the Internet at http://www.regulations.gov by
searching for and locating Docket No. FAA-2016-5465.
    (2) For service information identified in this AD, contact BAE
Systems (Operations) Limited, Customer Information Department,
Prestwick International Airport, Ayrshire, KA9 2RW, Scotland, United
Kingdom; telephone +44 1292 675207; fax +44 1292 675704; email
<EMAIL_ADDRESS>Internet http://www.baesystems.com/Businesses/RegionalAircraft/index.htm. You may view this service
information at the FAA, Transport Airplane Directorate, 1601 Lind
Avenue SW., Renton, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

    Issued in Renton, Washington, on March 26, 2016.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2016-08957 Filed 4-19-16; 8:45 am]
 BILLING CODE 4910-13-P