[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Proposed Rules]
[Pages 49020-49022]
[FR Doc No: 2018-20919]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-0802; Product Identifier 2018-NM-082-AD]
RIN 2120-AA64

Airworthiness Directives; Fokker Services B.V. 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
Fokker Services B.V. Model F28 Mark 0070 and 0100 airplanes. This
proposed AD was prompted by reports of electrical arcing between the
auxiliary power unit (APU) starter motor positive terminal and the APU
fuel drain line. This proposed AD would require the removal of certain
clamps and replacement of the flexible APU fuel drain line. We are
proposing this AD to address the unsafe condition on these products.

DATES: We must receive comments on this proposed AD by November 13,
2018.

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 Fokker
Services B.V., Technical Services Dept., P.O. Box 1357, 2130 EL
Hoofddorp, the Netherlands; telephone +31 (0)88-6280-350; fax +31
(0)88-6280-111; email [email protected]; internet http://www.myfokkerfleet.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
206-231-3195.

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-2018-
0802; 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: Tom Rodriguez, Aerospace Engineer,
International Section, Transport Standards Branch, FAA, 2200 South
216th St., Des Moines, WA 98198; telephone and fax<PHONE_NUMBER>.

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-2018-0802;
Product Identifier 2018-NM-082-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 NPRM.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA
Airworthiness Directive 2017-0008, dated January 16, 2017 (referred to
after this as the Mandatory Continuing Airworthiness Information, or
``the MCAI''), to correct an unsafe condition for all Fokker Services
B.V. Model F28 Mark 0070 and 0100 airplanes. The MCAI states:

    Reports were received of electrical arcing between the auxiliary
power unit (APU) starter motor positive terminal and the APU

fuel drain line. Investigation showed that these events were due to
contact between the metal braiding on the APU fuel drain line and
the positive terminal of the APU starter motor.
    This condition, if not corrected, could lead to a fire during
APU start, possibly resulting in damage to the aeroplane.
    In response to these findings, Fokker issued Service Bulletin
(SB) SBF100-49-023, later amended by SB Change Notification (SBCN),
with instructions to install two additional clamps on the APU fuel
supply line and the flexible APU fuel drain line. Consequently, CAA-
NL [Civil Aviation Authority--the Netherlands] issued the
Netherlands AD 92-139 [which corresponds to FAA AD 95-21-20,
Amendment 39-9407 (60 FR 53857, October 18, 1995) (``AD 95-21-20'')]
to require the actions described in Fokker SBF100-49-023.
    Since that [the Netherlands] AD was issued, following reports of
arcing and chafing damage to the APU fuel drain line, the
investigation revealed that the two additional clamps and the
instructions in SBF100-49-023 would not meet the intent of ensuring
sufficient clearance between the APU fuel drain line and the
positive terminal of the APU starter motor.
    To address this potential unsafe condition, Fokker Services
[B.V.] published SBF100-49-037 to introduce a new flexible APU fuel
drain line that is one inch shorter and has one elbow flange, thus
enabling to restore sufficient clearance with the positive terminal
of the APU starter motor.
    For the reasons described above, this AD supersedes CAA-NL [the
Netherlands] AD 92-139 and requires replacement of the flexible APU
fuel drain line, removal of the additional clamps introduced by
SBF100-49-023, and a check to verify sufficient clearance between
the APU fuel drain line and the positive terminal of the APU starter
motor.

    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-2018-
0802.

Relationship Between Proposed AD and AD 95-21-20

    This NPRM would not propose to supersede AD 95-21-20. Rather, we
have determined that a stand-alone AD would be more appropriate to
address the changes in the MCAI. This NPRM would require the removal of
certain clamps and replacement of the flexible APU fuel drain line.
Accomplishment of the proposed actions would then terminate all
requirements of AD 95-21-20.

Related Service Information Under 1 CFR Part 51

    Fokker Services B.V. has issued Fokker Service Bulletin SBF100-49-
037, dated October 31, 2016. This service information describes
procedures for removing certain clamps and replacing the flexible APU
fuel drain line (which includes making sure there is sufficient
clearance between the new APU fuel drain line and the positive terminal
of the APU starter motor and that the earth lead is not chafing against
the fuel supply or the fuel drain line). 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

    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 the relevant information and determined the unsafe
condition described previously is likely to exist or develop on other
products of the same type design.

Proposed Requirements of This NPRM

    This proposed AD would require accomplishing the actions specified
in the service information described previously.

Costs of Compliance

    We estimate that this proposed AD affects 5 airplanes of U.S.
registry. We estimate the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                           Labor cost                               Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
1 work-hour x $85 per hour = $85................................            $963          $1,048          $5,240
----------------------------------------------------------------------------------------------------------------

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 to the Director of the System Oversight
Division.

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 adding the following new airworthiness
directive (AD):

Fokker Services B.V.: Docket No. FAA-2018-0802; Product Identifier
2018-NM-082-AD.

(a) Comments Due Date

    We must receive comments by November 13, 2018.

(b) Affected ADs

    This AD affects AD 95-21-20, Amendment 39-9407 (60 FR 53857,
October 18, 1995) (``AD 95-21-20'').

(c) Applicability

    This AD applies to Fokker Services B.V. Model F28 Mark 0070 and
0100, certificated in any category, all serial numbers.

(d) Subject

    Air Transport Association (ATA) of America Code 49, Airborne
auxiliary power.

(e) Reason

    This AD was prompted by reports of electrical arcing between the
auxiliary power unit (APU) starter motor positive terminal and the
APU fuel drain line. We are issuing this AD to address this unsafe
condition, which could lead to a fire during APU start and possibly
result in damage to the airplane.

(f) Compliance

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

(g) Modification

    Within 12 months after the effective date of this AD: Remove the
two additional clamps, part number (P/N) MS21919WCH5 and P/N
MS21919WCH13, and replace APU fuel drain line P/N D67066-409 with a
new APU fuel drain line P/N W67066-401, in accordance with the
Accomplishment Instructions of Fokker Service Bulletin SBF100-49-
037, dated October 31, 2016.

(h) Terminating Actions for AD 95-21-20

    Accomplishing the actions required by paragraph (g) of this AD
terminates all requirements of AD 95-21-20.

(i) Parts Installation Prohibition

    No person may install APU fuel drain line P/N D67066-409 after
modification of an airplane as required by paragraph (g) of this AD.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Section, Transport Standards 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 International Section, send it to the attention of
the person identified in paragraph (k)(2) of this AD. Information
may be emailed to: [email protected]. 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.
    (2) Contacting the Manufacturer: 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
Section, Transport Standards Branch, FAA; or the European Aviation
Safety Agency (EASA); or Fokker Services B.V.'s EASA Design
Organization Approval (DOA). If approved by the DOA, the approval
must include the DOA-authorized signature.

(k) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA Airworthiness Directive 2017-0008, dated January 16,
2017, 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-2018-0802.
    (2) For more information about this AD, contact Tom Rodriguez,
Aerospace Engineer, International Section, Transport Standards
Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone
and fax<PHONE_NUMBER>.
    (3) For service information identified in this AD, contact
Fokker Services B.V., Technical Services Dept., P.O. Box 1357, 2130
EL Hoofddorp, the Netherlands; telephone +31 (0)88-6280-350; fax +31
(0)88-6280-111; email [email protected]; internet http://www.myfokkerfleet.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>.

    Issued in Des Moines, Washington, on September 14, 2018.
John P. Piccola,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2018-20919 Filed 9-27-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 87, Number 96 (Wednesday, May 18, 2022)]
[Notices]
[Pages 30219-30220]
[FR Doc No: 2022-10678]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP21-463-000]

Texas Eastern Transmission, LP; Notice of Availability of the
Environmental Assessment for the Proposed Holbrook Compressor Station
Units Replacement Project

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) has prepared an environmental assessment (EA) for the
Holbrook Compressor Station Units Replacement Project (Project),
proposed by Texas Eastern Transmission LP (Texas Eastern) in the above-
referenced docket. Texas Eastern requests authorization to abandon 12
existing reciprocating compressor units dating from the 1950s and
replace them with 2 new compressor units at its existing Holbrook
Compressor Station (Station), in Greene County, Pennsylvania.

    The EA assesses the potential environmental effects of the
construction and operation of the Project in accordance with the
requirements of the National Environmental Policy Act (NEPA). The FERC
staff concludes that approval of the Project would result in some
adverse environmental impacts. However, if the Project is constructed
and operated in accordance with the mitigation measures discussed in
this EA, and our recommendations, approval of the proposed Project
would not constitute a major federal action significantly affecting the
quality of the human environment.
    The Commission mailed a copy of the Notice of Availability for this
EA to federal, state, and local government representatives and
agencies; elected officials; non-governmental organizations,
environmental, and public interest groups; potentially interested
Indian tribes; affected landowners; and newspapers and libraries in the
project area. The EA is only available in electronic format. It may be
viewed and downloaded from the FERC's website (www.ferc.gov), on the
natural gas environmental documents page (https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents). In
addition, the EA may be accessed by using the eLibrary link on the
FERC's website. Click on the eLibrary link (https://elibrary.ferc.gov/eLibrary/search), select ``General Search'' and enter the docket number
in the ``Docket Number'' field, (i.e., CP21-463). Be sure you have
selected an appropriate date range. For assistance, please contact FERC
Online Support at [email protected] or toll free at (866) 208-
3676, or for TTY, contact<PHONE_NUMBER>.
    The EA is not a decision document. It presents Commission staff's
independent analysis of the environmental issues for the Commission to
consider when addressing the merits of all issues in this proceeding.
    Any person wishing to comment on the EA may do so. Your comments
should focus on the EA's disclosure and discussion of potential
environmental effects, reasonable alternatives, and measures to avoid
or lessen environmental impacts. The more specific your comments, the
more useful they will be. To ensure consideration of your comments, it
is important that the Commission receive your comments on or before
5:00 p.m. Eastern Time on June 13, 2022.
    For your convenience, there are three methods you can use to file
your comments to the Commission. The Commission encourages electronic
filing of comments and has staff available to assist you at (866) 208-
3676 or [email protected]. Please carefully follow these
instructions so that your comments are properly recorded.
    (1) You can file your comments electronically using the eComment
feature on the Commission's website (www.ferc.gov) under the link to
FERC Online. This is an easy method for submitting brief, text-only
comments on a project;
    (2) You can also file your comments electronically using the
eFiling feature on the Commission's website (www.ferc.gov) under the
link to FERC Online. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' You must select the type of filing you are making. If
you are filing a comment on a particular project, please select
``Comment on a Filing''; or
    (3) You can file a paper copy of your comments by mailing them to
the Commission. Be sure to reference the project docket number (CP21-
463-000) on your letter. Submissions sent via the U.S. Postal Service
must be addressed to: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC
20426. Submissions sent via any other carrier must be addressed to:
Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission,
12225 Wilkins Avenue, Rockville, Maryland 20852.
    Filing environmental comments will not give you intervenor status,
but you do not need intervenor status to have your comments considered.
Only intervenors have the right to seek rehearing or judicial review of
the Commission's decision. At this point in this proceeding, the
timeframe for filing timely intervention requests has expired. Any
person seeking to become a party to the proceeding must file a motion
to intervene out-of-time pursuant to Rule 214(b)(3) and (d) of the
Commission's Rules of Practice and Procedures (18 CFR 385.214(b)(3) and
(d)) and show good cause why the time limitation should be waived.
Motions to intervene are more fully described at https://www.ferc.gov/ferc-online/ferc-online/how-guides.
    Additional information about the Project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website (www.ferc.gov) using the eLibrary link. The eLibrary link
also provides access to the texts of all formal documents issued by the
Commission, such as orders, notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to https://www.ferc.gov/ferc-online/overview to
register for eSubscription.

    Dated: May 12, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-10678 Filed 5-17-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: June 27, 2007 (Volume 72, Number 123)]
[Notices]
[Page 35279-35288]
[DOCID:fr27jn07-105]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55937; File No. SR-ASDAQ-2007-001]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change as Modified by Amendment No. 2
to Amend Nasdaq's ``Clearly Erroneous'' Rule

June 21, 2007.
    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 January 22, 2007, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been substantially prepared by Nasdaq. On June 1, 2007,
Nasdaq filed Amendment No. 1 to the proposed rule change.\3\ On June
12, 2007, Nasdaq filed Amendment No. 2 to the proposed rule change.\4\
The Commission is publishing this notice to solicit comments on the
proposed rule change, as modified by Amendment No. 2, from interested
persons.
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    \1\ 5 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced the proposed rule change in its
entirety. Nasdaq withdrew Amendment No. 1 on June 14, 2007.
    \4\ Amendment No. 2 replaced the proposed rule change in its
entirety.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Nasdaq proposes to clarify the applicability of Nasdaq Rule 11890
to transactions resulting from unauthorized or manipulative trading
activity. Nasdaq will implement the proposed rule change immediately
upon approval by the Commission.
    The text of the proposed rule change is below. Proposed new
language is italicized; proposed deletions are in brackets.
* * * * *

11890. Clearly Erroneous Transactions

    (a) Authority to Review Transactions Pursuant to Complaint of
Market Participant
    (1) Scope of Authority
    (A) Subject to the limitations described in paragraph
(a)(2)[(C)](D) below, [officers] officials of Nasdaq designated by its
President shall, pursuant to the procedures set forth in paragraph
(a)(2) below, have the authority to review any transaction arising out
of the use or operation of any execution or communication system owned
or operated by Nasdaq and approved by the Commission[, including
transactions entered into by a member of a national securities exchange
with unlisted trading privileges in Nasdaq-listed securities (a ``UTP
Exchange'') through such a system]; provided, however, that the parties
to the transaction must be readily identifiable by Nasdaq through its
systems. A Nasdaq [officer] official shall review transactions with a
view toward maintaining a fair and orderly market and the protection of
investors and the public interest. Based upon this review, the
[officer] official shall decline to act upon a disputed transaction if
[the officer] he or she believes that the transaction under dispute is
not clearly erroneous. If the [officer] official determines the
transaction in dispute is clearly erroneous, however, he or she shall
declare that the transaction is null and void or modify one or more
terms of the transaction. When adjusting the terms of a transaction,
the Nasdaq [officer] official shall seek to adjust the price and/or
size of the transaction to achieve an equitable rectification of the
error that would place the parties to a transaction in the same
position, or as close as possible to the same position, as they would
have been in had the error not occurred. For the purposes of this Rule,
the terms of a transaction are clearly erroneous if:
    (i) the transaction is eligible for review under the Rule, and [if]
    (ii) either
    a. there is an obvious error in any term, such as price, number of
shares or other unit of trading, or identification of the security, or
    b. the person seeking review of the transaction has represented
that it resulted from an order submitted by a person that was not
authorized to submit that order into Nasdaq or from an account used for
the purpose of effecting a manipulation of the market for the security.
    (2) Procedures for Reviewing Transactions
    (A) Except as provided in paragraph (a)(2)(B), [A]any member[,
member of a UTP Exchange,] or person associated with a[ny such] member
that seeks to have a transaction reviewed pursuant to paragraph (a)(1)
hereof shall submit a written complaint to Nasdaq MarketWatch in
accordance with the following time parameters:
    (i) for transactions occurring at or after 9:30 a.m.[, Eastern
Time], but prior to 10:00 a.m.[, Eastern Time], complaints must be
received by Nasdaq by 10:30 a.m.[, Eastern Time]; and
    (ii) for transactions occurring at any other time [prior to 9:30
a.m., Eastern Time and at or after 10:00 a.m., Eastern Time],
complaints must be received by Nasdaq within thirty minutes of
execution time.
    (B) In the case of an Outlier Transaction, a member or person
associated with a member that seeks to have a transaction reviewed
pursuant to paragraph (a)(1) hereof shall submit a written complaint to
Nasdaq MarketWatch in accordance with the following time parameters:
    (i) for transactions occurring at or after 9:30 a.m. but prior to
10:00 a.m., complaints must be received by Nasdaq by 11:30 a.m.;
    (ii) for transactions occurring prior to 9:30 a.m. or between 10:00
a.m. and the close of the Regular Session, complaints must be received
by Nasdaq within ninety minutes of execution time; and
    (iii) for transactions occurring after the close of the Regular
Session, complaints must be received by Nasdaq prior to 9:30 a.m. the
next trading day.
    [(B)](C) Once a complaint has been received in accord with
paragraph (a)(2)(A) or (B) above, the complainant shall have up to
thirty (30) minutes, or such longer period as specified by Nasdaq
staff, to submit any supporting written information concerning the
complaint necessary for a determination under paragraph (a)(1). Such
supporting information must include the approximate time of
transaction(s), security symbol, number of shares, price(s), contra
broker(s) if the transactions are not anonymous, Nasdaq system used to
execute the transactions, and the factual basis for believing that the
trade is clearly erroneous [the reason the review is being sought]. If
Nasdaq receives a complaint that does not contain all of the required
supporting information, Nasdaq shall immediately notify the filer that
the complaint is deficient.
    [(C)](D) Following the expiration of the period for submission of
supporting material, a Nasdaq [officer] official shall determine
whether the complaint is eligible for review. A complaint shall not be
eligible for review under paragraph (a) unless:
    (i) the complainant has provided all of the supporting information
required under paragraph (a)(2)[(B)](C), and
    (ii) For trades in Nasdaq securities executed during the Regular
Session [between 9:30 a.m. and 4:00 p.m. Eastern Time], or trades in
non-Nasdaq securities executed during the Regular Session after
[between the time when] the [p]Primary [m]Market for the security first
posts an executable two-side quote [for its regular market trading
session and 4:00 p.m. Eastern Time], the price of a transaction to buy
(sell) that is the subject of the complaint is greater than (less than)
the [best offer (best bid)] Inside Price by an amount that equals or
exceeds the minimum threshold set forth below:

------------------------------------------------------------------------
             Inside price                       Minimum threshold
------------------------------------------------------------------------
$0-$0.99..............................  $0.02 + (0.10 x Inside Price)
$1.00-$4.99...........................  $0.12 + (0.07 x (Inside Price-
                                         $1.00))
$5.00-$14.99..........................  $0.40 + (0.06 x (Inside Price-
                                         $5.00))

$15 or more...........................  $1.00
------------------------------------------------------------------------

    [For a transaction to buy (sell) a Nasdaq security, the inside
price shall be the best offer (best bid) in Nasdaq at the time that the
first share of the order that resulted in the disputed transaction was
executed, and for a transaction to buy (sell) a non-Nasdaq security,
the inside price shall be the national best offer (best bid) at the
time that the first share of the order that resulted in the disputed
transaction was executed. A ``Nasdaq security'' means a security for
which transaction reports are disseminated under the Nasdaq UTP Plan,
and a ``non-Nasdaq security'' means a security for which transaction
reports are disseminated under the Consolidated Tape Association Plan.
The ``primary market'' for a non-Nasdaq Security is the market
designated as the primary market under the Consolidated Tape
Association Plan.]
    [(D)](E) If a complaint is determined to be eligible for review,
the counterparty to the trade shall be notified of the complaint via
telephone or other method permitted by paragraph (d) by Nasdaq staff
and shall have up to thirty (30) minutes, or such longer period as
specified by Nasdaq staff, to submit any supporting written information
concerning the complaint necessary for a determination under paragraph
(a)(1). Either party to a disputed trade may request the written
information provided by the other party pursuant to paragraph (a)(2).
    [(E)](F) Notwithstanding paragraphs (a)(2)[(B)](C) and [(D)](E)
above, once a party to a disputed trade communicates that it does not
intend to submit any further information concerning a complaint, the
party may not thereafter provide additional information unless
requested to do so by Nasdaq staff. If both parties to a disputed trade
indicate that they have no further information to provide concerning
the complaint before their respective thirty-minute information
submission period has elapsed, then the matter may be immediately
presented to a Nasdaq [officer] official for a determination pursuant
to paragraph (a)(1) above.
    [(F)](G) Each member[, member of a UTP Exchange,] or person
associated with a[ny such] member involved in the transaction shall
provide Nasdaq with any information that it requests in order to
resolve the matter on a timely basis notwithstanding the time
parameters set forth in paragraphs (a)(2)[(B)](C) and [(D)](E) above.
    [(G)](H) Once a party has applied to Nasdaq for review and the
transaction has been determined to be eligible for review, the
transaction shall be reviewed and a determination rendered, unless (i)
both parties to the transaction agree to withdraw the application for
review prior to the time a decision is rendered pursuant to paragraph
(a)(1), or (ii) the complainant withdraws its application for review
prior to the notification of counterparties pursuant to paragraph
(a)(2)[(D)](E).
    (b) Procedures for Reviewing Transactions on Nasdaq's Own Motion.
    In the event of (i) a disruption or malfunction in the use or
operation of any quotation, execution, communication, or trade
reporting system owned or operated by Nasdaq and approved by the
Commission, or (ii) extraordinary market conditions or other
circumstances in which the nullification or modification of
transactions may be necessary for the maintenance of a fair and orderly
market or the protection of investors and the public interest, the
President of Nasdaq or any Executive Vice President designated by the
President may, on his or her own motion, review any transaction arising
out of or reported through any such quotation, execution,
communication, or trade reporting system[, including transactions
entered into by a member of a UTP Exchange through the use or operation
of such a system, but excluding transactions that are entered into
through, or reported to, a UTP Exchange]. A Nasdaq officer acting
pursuant to this subsection may declare any such transaction null and
void or modify the terms of any such transaction if the officer
determines that (i) the transaction is clearly erroneous, or (ii) such
actions are necessary for the maintenance of a fair and orderly market
or the protection of investors and the public interest; provided,
however, that the officer [must] shall take action pursuant to this
subsection [within thirty (30) minutes of] as soon as possible after
detection of the transaction except in the event of extraordinary
circumstances, in which event the officer must take action by [3:00
p.m.,]9:30 a.m. [Eastern Time,] on the next trading day following the
date of the transaction at issue.
    (c) Review by the Market Operations Review Committee (``MORC'')
    (1) Subject to the limitations described in paragraph (c)(2), a
member[, member of a UTP Exchange,] or person associated with a[ny
such] member may appeal a determination made under paragraph (a) to the
MORC. A member[, member of a UTP Exchange,] or person associated with
a[ny such] member may appeal a determination made under paragraph (b)
to the MORC unless the officer making the determination also determines
that the number of the affected transactions is such that immediate
finality is necessary to maintain a fair and orderly market and to
protect investors and the public interest. An appeal must be made in
writing, and must be received by Nasdaq within thirty (30) minutes
after the person making the appeal is given the notification of the
determination being appealed, except that if Nasdaq notifies the
parties of action taken pursuant to paragraph (b) after 4:00 p.m., the
appeal must be received by Nasdaq by 9:30 a.m. the next trading day.
Once a written appeal has been received, the counterparty to the trade
that is the subject of the appeal will be notified of the appeal and
both parties shall be able to submit any additional supporting written
information up until the time the appeal is considered by the MORC.
Either party to a disputed trade may request the written information
provided by the other party during the appeal process. An appeal to the
MORC shall not operate as a stay of the determination being appealed,
and the scope of the appeal shall be limited to trades which the person
making the appeal is a party. Subject to the limitations described in
paragraph (c)(2), once a party has appealed a determination to the
MORC, the determination shall be reviewed and a decision rendered,
unless (i) both parties to the transaction agree to withdraw the appeal
prior to the time a decision is rendered by the MORC, or (ii) the party
filing the appeal withdraws its appeal prior to the notification of
counterparties under this paragraph (c)(1). Upon consideration of the
record, and after such hearings as it may in its discretion order, the
MORC, pursuant to the standards set forth in this rule, shall affirm,
modify, reverse, or remand the determination.
    (2) If a Nasdaq [officer] official determines under paragraph
(a)(2)[(C)](D) that a transaction is not eligible for review, a party
appealing such determination must allege in its appeal a mistake of
material fact upon which it believes the [officer's] official's
determination was based. If the MORC concludes that an appeal of such a
determination does not allege a mistake of material fact, the
determination shall become final and binding. If the MORC concludes
that an appeal of such a determination alleges a mistake of material
fact, Nasdaq shall notify the counterparty to the transaction and the
determination shall be reviewed by the MORC as provided under paragraph
(c)(1). If the MORC then finds that the

determination was based on a mistake of material fact, the MORC shall
remand the matter for adjudication under paragraph (a); otherwise, the
determination shall become final and binding.
    (3) The decision of the MORC pursuant to an appeal, or a
determination by a Nasdaq [officer] official that is not appealed,
shall be final and binding upon all parties and shall constitute final
Nasdaq action on the matter in issue. Any determination by a Nasdaq
[officer] official pursuant to paragraph (a) or (b) or any decision by
the MORC pursuant to paragraph (c) shall be rendered without prejudice
as to the rights of the parties to the transaction to submit their
dispute to arbitration.
    (4) The party initiating the appeal shall be assessed a $500.00 fee
if the MORC upholds the decision of the Nasdaq [officer] official. In
addition, in instances where Nasdaq, on behalf of a member, requests a
determination by another market center that a transaction is clearly
erroneous, Nasdaq will pass any resulting charges through to the
relevant member.
    (d) Communications
    (1) All materials submitted to Nasdaq or the MORC pursuant to this
Rule shall be submitted within the time parameters specified herein via
such telecommunications procedures as Nasdaq may announce from time to
time in a[n] Notice to Members or Head Trader Alert. Materials shall be
deemed received at the time indicated by the telecommunications
equipment (e.g., facsimile machine or computer) receiving the
materials. Nasdaq, in its sole and absolute discretion, reserves the
right to reject or accept any material that is not received within the
time parameters specified herein. All times stated in this rule and
related Interpretive Material are Eastern Time.
    (2) Nasdaq shall provide affected parties with prompt notice of
determinations under this Rule via facsimile machine, electronic mail,
or telephone (including voicemail); provided, however, that if an
officer nullifies or modifies a large number of transactions pursuant
to paragraph (b), Nasdaq may instead provide notice to parties via
Nasdaq telecommunications protocols, a press release, or any other
method reasonably expected to provide rapid notice to many market
participants.
    (e) Definitions
    For purposes of this Rule and related Interpretive Material:
    (1) ``Inside Price'' means:
    (A) for a transaction to buy (sell) a Nasdaq security, the best
offer (best bid) in Nasdaq at the time that the first share of an order
or the first share of a series of orders that resulted in disputed
transactions was executed, and
    (B) for a transaction to buy (sell) a non-Nasdaq security, the
national best offer (best bid) at the time that the first share of an
order or the first share of a series of orders that resulted in the
disputed transactions was executed.
    (2) ``Nasdaq security'' means a security for which transaction
reports are disseminated under the Nasdaq UTP Plan.
    (3) ``Non-Nasdaq security'' means a security for which transaction
reports are disseminated under the Consolidated Tape Association Plan.
    (4) ``Outlier Transaction'' means a transaction that:
    (A) is executed at a price that meets the following parameters:
    (i) in the case of a transaction for a Nasdaq security executed
during the Regular Session, the price is 50% or more away from the
Inside Price;
    (ii) in the case of a transaction for a non-Nasdaq security
executed during the Regular Session after the Primary Market has posted
its first two-sided quote, the price is 50% or more away from the
Inside Price;
    (iii) in the case of a transaction for a Nasdaq security or non-
Nasdaq security executed outside of the Regular Session, or a non-
Nasdaq security executed during the Regular Session before the Primary
Market has posted its first two-sided quote, the price is 50% or more
away from the closing price of the security in the most recent Regular
Session; and
    (B) the loss value of all transactions at issue in the complaint
exceeds $10,000. The loss value is measured by multiplying the number
of shares by the difference between the execution price and price with
which the execution price is compared under paragraph (e)(4)(A).
    (5) ``Primary Market'' means:
    (A) for a Nasdaq security, the Nasdaq Market Center, and
    (B) for a non-Nasdaq Security, the market designated as the primary
market under the Consolidated Tape Association Plan.
    (6) ``Regular Session'' means the primary trading session for a
particular security on its Primary Market, which is generally 9:30 a.m.
through 4:00 or 4:15 p.m.

IM-11890-1. Refusal to Abide by Rulings of a Nasdaq [Officer] Official
or the MORC

    It shall be considered conduct inconsistent with just and equitable
principles of trade for any member to refuse to take any action that is
necessary to effectuate a final decision of a Nasdaq [officer] official
or the MORC under Rule 11890.

IM-11890-2. Review by Panels of the MORC

    For purposes of Rule 11890 and other Nasdaq Rules that permit
review of Nasdaq decisions by the MORC, a decision of the MORC may be
rendered by a panel of the MORC. In the case of a review of a
determination by a Nasdaq [officer] official under Rule
11890(a)(2)[(C)](D) that a transaction is not eligible for review
(including a review of the sufficiency of allegations contained in an
appeal regarding such a determination), the panel may consist of one or
more members of the MORC, provided that no more than 50 percent of the
members of any panel are directly engaged in market making activity or
employed by a member whose revenues from market making activity exceed
ten percent of its total revenues. In all other cases, the panel shall
consist of three or more members of the MORC, provided that no more
than 50 percent of the members of any panel are directly engaged in
market making activity or employed by a member firm whose revenues from
market making activity exceed ten percent of its total revenues.

IM-11890-3. Application of Rule 11890(a)(2)[(C)](D)

    The following example is intended to assist market participants in
understanding the minimum price deviation thresholds in paragraph
(a)(2)[(C)](D) and their effect on the eligibility of transactions for
review under Rule 11890.
    ABCD, a Nasdaq [listed] security, has an [i]Inside [market]Price of
(bid) $12.00-$12.05 (ask). Market Maker A (MMA) enters a market order
to buy 10,000 shares, although it had intended a market order for 1,000
shares. The size of the order is such that the order `sweeps' the
Nasdaq Market Center order file, which reflects 1,000 shares of
liquidity offered at each of ten prices ranging from $12.05 to $12.95.
Executions occur, moving through the depth of file, as follows:

    The inside offer at the time the first share of the order was
executed is $12.05, so the minimum price deviation threshold is
determined using the following formula: $0.40 + (0.06 x (Inside Price-
$5.00)) = $0.40 + (0.06 x ($12.05-$5.00)) = $0.82. Thus, to be eligible
for review, a transaction must be at a price that is at least $0.82
higher than the original best offer price (i.e., $12.05 + $0.82 =
$12.87). MMA could petition for review of trades 9 and
10, priced at $12.90 and $12.95 respectively, but trades
1 through 8 would not be eligible for review. The
sole basis for an appeal to the MORC of the determination that trades
1 through 8 are not eligible for review would be an
assertion of a mistake of material fact. For example, an appeal could
be based upon an assertion that the Nasdaq [officer] official had made
an arithmetical error in determining the minimum price deviation
threshold, or had erred in determining the applicable [inside price]
Inside Price.

IM-11890-4. Clearly Erroneous Transaction Guidance for Filings under
Rule 11890(a) and Single Stock Events under Rule 11890(b)

    Nasdaq is providing the following guidance on how it [generally]
considers:
     all complaints filed by market participants under Rule
11890(a); and
     [many] most events involving a single security considered
on Nasdaq's own motion pursuant to Rule 11890(b).
    Nasdaq generally considers a transaction to be clearly erroneous
when the print is substantially inconsistent with the market price that
existed at the time of execution of the first share of one or a series
of orders that resulted in disputed transactions. Nasdaq would not
consider a trade clearly erroneous, and therefore would not break or
modify it, if it was priced within a range of the preceding market
price, as described in detail below. In making such a determination,
Nasdaq takes into account the circumstances at the time of the
transaction, the maintenance of a fair and orderly market, and the
protection of investors and the public interest. Participants in Nasdaq
are responsible for ensuring that the appropriate price and type of
order are entered into Nasdaq's systems. Simple assertion by a firm
that it made a mistake in entering an order or a quote, or that it
failed to pay attention or to update a quote, may not be sufficient to
establish that a transaction was clearly erroneous.
Numerical Factors for Review
    Nasdaq primarily considers the execution price of a trade in
determining whether it is clearly erroneous,  and breaks trades that
are more than a specified percentage away from a Reference Price that
is indicative of prior market conditions. The range away from a
Reference Price beyond which trades may be broken is referred to as the
Numerical Threshold. As a corollary to this policy, Nasdaq does not
break trades that are at the Numerical Threshold or between the
Reference Price and the Numerical Threshold, as set forth in the chart
below.

------------------------------------------------------------------------
                                [Range Away from
                                Reference Price]    Numerical Threshold--
       Execution Price        Numerical Threshold--    Outside Regular
                                 Regular Session           Session

------------------------------------------------------------------------
$0.20 and under.............  The minimum           The minimum
                               threshold required    threshold that
                               for adjudication      would be required
                               under Rule            for adjudication
                               11890(a)(2)(D)(ii).   under Rule
                                                     11890(a)(2)(D)(ii)
                                                     if it were
                                                     applicable outside
                                                     of the Regular
                                                     Session
Over $0.20 and up to $1.75    [Equal to or greater  20%
 [and under].                  than t]The minimum
                               threshold required
                               for adjudication
                               under Rule
                               11890(a)(2)[(C)](D)
                               (ii).
Over $1.75 and up to $25....  10%.................  20%
Over $25 and up to $50......  5%..................  10%
Over $50....................  3%..................  6%
------------------------------------------------------------------------

    Nasdaq uses [different] Reference Prices based on the time of the
trade and the listing venue of the security in order to establish an
appropriate comparison point. These Reference Prices are detailed
below.
    [In unusual circumstances, however, Nasdaq may use a different
Reference Price.]

------------------------------------------------------------------------
  Time of Trade and Listing
            Venue                           Reference Price
------------------------------------------------------------------------
Nasdaq[-listed] securities     Inside Price [The best bid (best offer)
 during [for trades executed    (``BBO'') in Nasdaq at the time of
 between 9:30 am and 4:00 pm    execution of first share of the disputed
 Eastern Time (``]Regular       order]
 Session['')].
Non-Nasdaq[-listed]            Inside Price [The national BBO at the
 securities for trades          time of execution of first share of the
 executed during Regular        disputed order]
 Session and after [p]Primary
 [m]Market has posted first
 two-sided quote.
Non-Nasdaq[-listed]            Inside Price [The national BBO at the
 securities for trades          time of execution of first share of the
 executed during Regular        disputed order]. If [national BBO]the
 Session and before             Inside Price does not appear
 [p]Primary [m]Market has       substantially related to the market,
 posted first two-sided quote.  Nasdaq may consider other Reference
                                Prices including the opening trade,
                                indication of interest and first two-
                                sided quote in the [p]Primary [m]Market
                                (which may occur after the execution)
                                and the closing price for the prior
                                Regular Session [for the security's
                                primary market].
Nasdaq[-listed] securities     Closing price of security for the last
 and non-Nasdaq[-listed]        Regular Session on the security's
 securities outside of          [p]Primary [m]Market. If the closing
 Regular Session [for trades    price does not appear substantially
 executed after 4:00 pm and     related to the market, Nasdaq may
 before 9:30 am Eastern Time].  consider other References Prices,
                                including the prices of other trades in
                                the trading session or the Inside Price.
------------------------------------------------------------------------

    In unusual circumstances, Nasdaq may use a different Reference
Price in determining which trades to break. For example, in the case of
several large orders that execute at multiple prices, a Reference Price
based on a weighted average of the best bid (best offer) (``BBO'') at
relevant times may be used rather than a Reference Price based solely
on the Inside Price.
    It may also be necessary to use a higher Numerical Threshold if,
after market participants have been alerted to the existence of
erroneous activity, the price of the security returns toward its prior
trading range but continues to trade beyond the price at which trades
would normally be broken. Nasdaq also may use different Numerical
Thresholds in events that involve other markets in an effort to
coordinate a Numerical Threshold that is consistent across markets.
    Finally, Nasdaq could break or adjust all trades in a security if a
pervasive mistake resulted in trading that should not have occurred.
For example, trades in a security that was incorrectly authorized for
trading prior to the date of its actual initial public offering would
all be broken. Similarly, if Nasdaq systems executed orders in the
Nasdaq opening cross or closing cross at a price that was inconsistent
with the rules governing the operation of the crosses, either due to a
Nasdaq system error or because an underlying erroneous order resulted
in an erroneous opening or closing price, Nasdaq may break or adjust
all of the affected trades.
Additional Factors
    In occasional circumstances, Nasdaq may consider additional factors
in determining whether a transaction is clearly erroneous (provided the
applicable Numerical Threshold is exceeded). These include:
     Material news released for the security
     Suspicious trading activity
     System malfunctions or disruptions
     Locked or crossed markets
     Trading in the security was recently halted/resumed
     The security is an initial public offering
     Volume and volatility for the security
     Stock-split, reorganization or other corporate action
     Validity of consolidated tape trades and quotes and Nasdaq
BBO comparison to national BBO
     General volatility of market conditions
     Reason for the error

Suspicious Trading Activity

    As reflected in Rule 11890(a)(1)(A), Nasdaq may determine that a
transaction is clearly erroneous if the person seeking review has
represented that it resulted from an order submitted by a person that
was not authorized to submit that order into Nasdaq or from an account
used for the purpose of effecting a manipulation of the market for the
security. Nasdaq may adjudicate such transactions under Rule 11890(a),
or may address them under Rule 11890(b) if their effect on the market
is such that nullification or modification of a large number of
transactions may be necessary for the maintenance of a fair and orderly
market or the protection of investors and the public interest.
    While an assertion of suspicious trading activity may provide the
basis for reviewing transactions, it does not provide a basis for
altering the application of the factors used in determining whether to
nullify or modify trades. Thus, the minimum price threshold required
for adjudication under Rule 11890(a)(2)(D)(ii) would be applicable in
the case of unauthorized or manipulative transactions being adjudicated
under Rule 11890(a). Moreover, Nasdaq would apply the Numerical
Thresholds described above in determining which trades to break. For
example, if the best offer in a security during the Regular Session was
$20 prior to the execution of the first share of a series of
unauthorized buy orders that executed at prices ranging from $20 to
$30, the usual Numerical Threshold would be 10%, or $22.00, and trades
above that price could be broken.
Additional Information Concerning Rule 11890(b)
    Nasdaq may on its own motion review transactions in any security in
the event of:
     A disruption or malfunction in the use or operation of any
quotation, execution, communication, or trade reporting system owned or
operated by Nasdaq and approved by the SEC;
     Extraordinary market conditions or other circumstances in
which the nullification or modification of transactions may be
necessary for the maintenance of a fair and orderly market or the
protection of investors and the public interest.
    Consequently, Rule 11890(b) is focused on systemic problems that
involve large numbers of parties or trades, or market conditions where
it would not be in the best interests of the market to proceed under
the processes set forth in Rule 11890(a). Sometimes events involving a
single security will meet the standards of Rule 11890(b). However,
market participants should not assume that Rule 11890(b) will be
available where, for example, they failed to file a complaint within
the time periods specified in Rule 11890(a). The rule could be
available, however, in cases where a trade not eligible for
adjudication under Rule 11890(a) nevertheless could present systemic
risks if permitted to stand.
    The guidance set forth in IM-11890-4 applies to many events
involving a single security adjudicated pursuant to Rule 11890(b).
However, Nasdaq may apply the guidance set forth in IM-11890-5 to some
events involving a single security, such as some situations where
trading activity occurs in multiple market centers and Nasdaq is acting
in consultation with other markets.

IM-11890-5. Clearly Erroneous Transaction Guidance for Multi-Stock
Events

    Nasdaq is providing the following guidance on how it [generally]
considers multi-stock events adjudicated on Nasdaq's own motion
pursuant to Rule 11890(b).
    Nasdaq generally considers a transaction to be clearly erroneous
when the print is substantially inconsistent with the market price that
existed at the time of execution of the first share of one or a series
of orders that resulted in disputed transactions. Nasdaq would not
consider a trade clearly erroneous, and therefore would not break or
modify it, if it was priced within a range of the preceding market
price, as described in detail below. In making such a determination,
Nasdaq takes into account the circumstances at the time of the
transaction, the maintenance of a fair and orderly market, and the
protection of investors and the public interest. Participants in Nasdaq
are responsible for ensuring that the appropriate price and type of
order are entered into Nasdaq's systems. Simple assertion by a firm
that it made a mistake in entering an order or a quote, or that it
failed to pay attention or to update a quote, may not be sufficient to
establish that a transaction was clearly erroneous.
    Nasdaq may on its own motion review transactions in any security in
the event of:
     A disruption or malfunction in the use or operation of any
quotation, execution, communication, or trade reporting system owned or
operated by Nasdaq and approved by the SEC; or
     Extraordinary market conditions or other circumstances in
which the

nullification or modification of transactions may be necessary for the
maintenance of a fair and orderly market or the protection of investors
and the public interest.
    Consequently, Rule 11890(b) is focused on systemic problems that
involve large numbers of parties or trades, or market conditions where
it would not be in the best interests of the market to proceed under
the processes set forth in Rule 11890(a). Even in cases involving
multiple securities, however, market participants should not assume
that Rule 11890(b) will be available where, for example, they failed to
file a complaint within the time periods specified in Rule 11890(a).
The rule could be available, however, in cases where a trade not
eligible for adjudication under Rule 11890(a) nevertheless could
present systemic risks if permitted to stand. The determination of
whether to adjudicate an event under Rule 11890(b) is made by Nasdaq in
its sole discretion pursuant to the terms of the rule.

Numerical Factors for Review

    Nasdaq primarily considers the execution prices of the trades in
question in determining whether trades should be nullified in a multi-
stock event pursuant to Rule 11890(b). [Generally all trades more than
10% away from the Reference Price would be clearly erroneous.] The
range away from a Reference Price beyond which trades may be broken is
referred to as the Numerical Threshold, and is 10% (except in the
circumstances described below). As a corollary to this policy, Nasdaq
does not break trades that are at the Numerical Threshold or between
the Reference Price and the Numerical Threshold.
    NASDAQ uses [different] Reference Prices based on time of the trade
in order to establish an appropriate comparison point. These Reference
Prices are detailed below. [In unusual circumstances, however, Nasdaq
may use a different Reference Price.]

------------------------------------------------------------------------
             Time of Trade                       Reference Price
------------------------------------------------------------------------
All trades executed during the Regular   Inside Price
 Session after the market opening        [For Nasdaq-listed securities,
 process [of trading during regular       the best bid (best offer)
 market hours and until the end of        (``BBO'') in Nasdaq at the
 regular market hours]                    time of execution of first
                                          share of the disputed order]
                                         [For Non-Nasdaq-listed
                                          securities, the national BBO
                                          at the time of execution of
                                          first share of the disputed
                                          order]
All securities for trades executed:      The closing price of the
[squf] outside of the Regular Session     security for the Regular
[squf] after 4:00 p.m., Eastern Time      Session [regular market hours]
 (ET)                                     on the security's [primary
[squf] before 9:30 a.m., ET]              market]Primary Market. If the
[squf] during the market opening          closing price does not appear
 process [for regular market hours]       substantially related to the
                                          market, Nasdaq may consider
                                          other References Prices,
                                          including the prices of other
                                          trades in the trading session
                                          or the Inside Price.
------------------------------------------------------------------------

    In unusual circumstances, however, Nasdaq may use a different
Reference Price in determining which trades to break. For example, in
the case of several large orders that execute at multiple prices, a
Reference Price based on a weighted average of the best bid (best
offer) (``BBO'') at relevant times may be used rather than a Reference
Price based solely on the Inside Price.
    It may also be necessary to use a higher Numerical Threshold if,
after market participants have been alerted to the existence of
erroneous activity, the price of the security returns toward its prior
trading range but continues to trade beyond the price at which trades
would normally be broken. Nasdaq also may use different Numerical
Thresholds in events that involve other markets in order to coordinate
a Numerical Threshold that is consistent across markets.
    Finally, Nasdaq could break or adjust all trades in a security if a
pervasive mistake resulted in trading that should not have occurred.
For example, trades in a security that was incorrectly authorized for
trading prior to the date of its actual initial public offering would
all be broken. Similarly, if Nasdaq systems executed orders in the
Nasdaq opening cross or closing cross at a price that was inconsistent
with the rules governing the operation of the crosses, either due to a
Nasdaq system error or because an underlying erroneous order resulted
in an erroneous opening or closing price, Nasdaq may break or adjust
all of the affected trades.
    In occasional circumstances, Nasdaq may consider additional factors
in determining whether the transactions are clearly erroneous (provided
the applicable Numerical Threshold is exceeded). These include:
    [squf] Material news released for individual securities
    [squf] Suspicious trading activity
    Nasdaq may also apply the guidance set forth in IM 11890-5 to some
events involving a single security, such as some situations where
trading activity occurs in multiple market centers and Nasdaq is acting
in consultation with other markets.

Suspicious Trading Activity

    As reflected in Rule 11890(a)(1)(A), Nasdaq may determine that a
transaction is clearly erroneous if the person seeking review has
represented that it resulted from an order submitted by a person that
was not authorized to submit that order into Nasdaq or from an account
used for the purpose of effecting a manipulation of the market for the
security. Nasdaq may adjudicate such transactions under Rule 11890(b)
if their effect on the market is such that nullification or
modification of a large number of transactions may be necessary for the
maintenance of a fair and orderly market or the protection of investors
and the public interest.
    While an assertion of suspicious trading activity may provide the
basis for reviewing transactions, it does not provide a basis for
altering the application of the factors used in determining whether to
nullify or modify trades. Thus, Nasdaq would apply the Numerical
Thresholds described above in determining which trades to break. For
example, if the best offer in a security during the Regular Session was
$20 prior to the execution of the first share of a series of
unauthorized buy orders that executed at prices ranging from $20 to
$30, the usual Numerical Threshold would be 10%, or $22.00, and trades
above that price could be broken.
* * * * *

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

    In its filing with the Commission, Nasdaq 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. Nasdaq 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
Application of Rule 11890 to Suspicious Trading Activity
    Nasdaq is amending Rule 11890, which covers the breaking or
adjusting of trades determined to be clearly erroneous, to clarify the
scope of its application to unauthorized and/or manipulative trading
activity that could disrupt fair and orderly markets. In recent months,
financial regulators have become aware of market manipulation schemes
in which criminals manipulate stock prices by illegally gaining access
to legitimate accounts.\5\ Accordingly, Nasdaq is proposing to amend
the definition of ``clearly erroneous,'' which currently refers to an
obvious error in any term of a transaction, to make it clear that
unauthorized trading activity fits within the definition. However,
Nasdaq believes that the rule should not be drafted in a manner that
makes an artificial distinction between manipulative activity
undertaken through ``hijacked'' accounts and similar manipulations
effected through accounts where an individual is technically authorized
to enter orders but may take other measures to conceal identity. In
short, Nasdaq believes that the scope of Rule 11890 should be broad
enough to allow an appropriate response to any form of unauthorized or
manipulative trading activity, including ``cyber attacks'' on the
infrastructure of the financial system by terrorist organizations or
attempts to manipulate stock prices by illegally gaining access to
legitimate accounts or opening new accounts using false information.\6\
---------------------------------------------------------------------------

    \5\ See, e.g., SEC Litigation Release No. 20037 (March 12,
2007).
    \6\ Clay Wilson, Congressional Research Service, Computer Attack
and Cyber Terrorism: Vulnerabilities and Policy Issues for Congress
(April 1, 2005); Jeffrey Garten, Markets' resilience to terror is no
reason to relax, Financial Times (September 11, 2006); Financial
Services Sector Coordinating Council, Protecting the U.S. Critical
Financial Infrastructure: An Agenda for 2005 (2005).
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    The rule change further provides that although suspicious trading
activity may provide a basis for determining a trade to be clearly
erroneous, it would not provide a basis for altering the application of
price-based numerical factors in determining whether to break
particular trades. As described in SR-NASDAQ-2006-046,\7\ Nasdaq
primarily considers the execution price of a trade in determining
whether it is clearly erroneous, and breaks trades that are more than a
specified percentage away from a Reference Price that is indicative of
prior market conditions. The range away from a Reference Price beyond
which trades may be broken, expressed as a percentage or minimum
deviation, is referred to as the Numerical Threshold.\8\ Thus, Nasdaq
would apply the numerical factors described in IM-11890-4 and IM-11890-
5 in determining which trades to break.\9\ For example, if the best
offer in a security during a market's Regular Session \10\ was $20
prior to the execution of the first share of a series of unauthorized
buy orders that executed at prices ranging from $20 to $30, the usual
Numerical Threshold would be 10%, or $22.00, and higher-priced trades
could be broken. Similarly, the minimum price threshold required for
adjudication under Rule 11890(a)(2)(D)(ii) would be applicable in the
case of unauthorized or manipulative transactions being adjudicated
under Rule 11890(a).
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    \7\ Securities Exchange Act Release No. 54854 (December 1,
2006), 71 FR 71208, 71211 (December 8, 2006) (SR-NASDAQ-2006-046).
    \8\ As a corollary to its policy, Nasdaq does not break trades
that are at the Numerical Threshold or between the Reference Price
and the Numerical Threshold.
    \9\ IM-11890-4 provides guidance on how Nasdaq considers: (1)
all complaints filed by market participants under Rule 11890(a) and
(2) most events involving a single security considered on Nasdaq's
own motion pursuant to Rule 11890(b). IM-11890-5 provides guidance
on the remaining events involving a single security considered on
Nasdaq's own motion pursuant to Rule 11890(b), such as some
situations where trading activity occurs in multiple market centers
and Nasdaq is acting in consultation with other markets. IM-11890-5
also provides guidance on how Nasdaq considers multi-stock events
adjudicated on Nasdaq's own motion pursuant to Rule 11890(b).
Telephone conversation by and between John Yetter, Senior Associate
General Counsel, Nasdaq, and David Hsu, Special Counsel, Division of
Market Regulation, Commission, on June 20, 2007.
    \10\ The proposed rule change adds the defined term ``Regular
Session'' to the rule, and defines it as ``the primary trading
session for a particular security on its Primary Market, which is
generally 9:30 a.m. through 4:00 or 4:15 p.m.
---------------------------------------------------------------------------

    Nasdaq believes that it is important to allow transactions priced
close to the inside market or other reference price to stand, even if
the transactions directly resulted from a mistake, system error or
account intrusion. This ensures that market participants have economic
incentives to develop and maintain internal controls with a goal of
preventing erroneous trading activity. It should also be noted that
Nasdaq refers market participants for investigation by the NASD in its
capacity as Nasdaq's regulatory services provider in all circumstances
where a firm's erroneous trades raise questions as to the adequacy of
its computer systems and internal controls. Nasdaq believes that
enhanced controls by brokerage firms may play an important role in
reducing the incidence of account intrusions, as well as system and
human errors.\11\
---------------------------------------------------------------------------

    \11\ Nasdaq maintains records of each clearly erroneous
complaint that it receives. This file includes: the filer's written
complaint as required by Rule 11890(a)(2), any further written
correspondence or notes of oral communications made by the Nasdaq
MarketWatch analyst, any relevant screen shots or other market
information retained by the analysts, and a record of the decisions
by the Nasdaq official and the Market Operations Review Committee,
if the official's decision is appealed. In the event of an account
intrusion, Nasdaq requires written confirmation from the filer that
the erroneous trade resulted from an account intrusion unless
provided in the filer's original written complaint. Nasdaq refers
all clearly erroneous complaints that raise regulatory concerns,
including all cases alleging account intrusion, to NASD on a timely
basis and also provides NASD with information on all complaints on a
monthly basis.
---------------------------------------------------------------------------

Numerical Thresholds
    The proposed rule change also amends IM-11890-4 and -5 to provide
some additional guidance regarding the application of price-based
factors under Rule 11890. The Reference Price generally used under Rule
11890 is the best bid/best offer (``BBO'') in Nasdaq, or the national
BBO, for trading during the Regular Session, and the closing price on a
stock's primary market for late and early trading. As described in SR-
NASDAQ-2006-046,\12\ however, Nasdaq may use a different Reference
Price in unusual circumstances. Thus, in a case where material news
about a security was released after market close for the security and a
trade occurring after 4 p.m. and before 9:30 a.m. is at issue, Nasdaq
may use a Reference Price derived from after-hours trading activity
rather than the closing price of the security. Similarly, in the case
of several large orders that execute at multiple prices, a Reference
Price based on a weighted average of the BBO at relevant times may be
used rather than a Reference Price based solely on the BBO immediately
prior to the execution of the first share of the order. Nasdaq believes
that it would enhance the clarity of the Interpretive Material to add
these examples from the prior filing directly to the text. Nasdaq also
proposes to amend the Interpretive Material to add examples of cases
where Nasdaq may apply alternative Numerical Thresholds in determining
which trades to break. For example, it may be necessary to use a higher
Numerical Threshold if, after market participants have been alerted to
the

existence of erroneous activity, the price of a security returns toward
its prior trading range but continues to trade beyond the price at
which trades would normally be broken. Nasdaq also may use different
Numerical Thresholds in events that involve other markets in order to
coordinate a break point that is consistent across markets. For
example, if the bulk of trades in a stock not listed on Nasdaq occurred
in the stock's primary market, Nasdaq would generally seek to reach a
result consistent with the primary market.
---------------------------------------------------------------------------

    \12\ See supra note 7.
---------------------------------------------------------------------------

    Finally, the amended Interpretive Material provides that Nasdaq
could break or modify all trades in a security if a pervasive mistake
resulted in trading that should not have occurred. For example, trades
in a security that was incorrectly authorized for trading prior to the
date of its actual initial public offering would all be broken.
Similarly, if Nasdaq systems executed orders in the Nasdaq opening
cross or closing cross at a price that was inconsistent with the rules
governing the operation of the crosses, either due to a Nasdaq system
error or because an underlying erroneous order resulted in an erroneous
opening or closing price, Nasdaq may break or adjust all of the
affected trades.
    Nasdaq is also amending the Numerical Thresholds under IM-11890-4
for trading outside the Regular Session, to establish wider ranges
within which trades are permitted to stand. The change reflects the
diminished depth of the market during after hours and pre-market
trading sessions; market participants trading during these sessions
must accept the fact that orders are more likely to exhaust liquidity
available at the inside price than is the case during the Regular
Session. Accordingly, Nasdaq believes that the Numerical Thresholds
should be doubled during these times. For example, a trade at $40 per
share could be broken if more than 10% away from the Reference Price
during the Regular Session, but could not be broken during the pre-
market or after hours sessions unless it was more than 20% away from
the Reference Price.
    Nasdaq is also amending the language of Rule 11890(a)(2)(B) to make
it clear that persons seeking review of transactions must present a
factual basis for believing that the trade is clearly erroneous. Nasdaq
cannot, within the context of an adjudication that must be conducted
within a short period of time, determine all of the factual
circumstances associated with a particular trade or set of trades.
Thus, for example, if a trader files for adjudication and states that
he mistakenly entered an order for 400,000 shares rather than the
intended order size of 4,000, Nasdaq cannot, on a real-time basis,
determine whether this is accurate. Nevertheless, Nasdaq believes that
it is generally incumbent on persons seeking review actually to allege
a human or system error, rather than merely stating that the order was
``filled away'' or at ``a bad price.'' \13\ Requiring the statement of
a factual basis also allows NASD to evaluate, after the fact, whether a
particular market participant is abusing the clearly erroneous process
or employing poor internal controls. Individuals and firms found to
have misled Nasdaq about the cause of the alleged error would be
subject to disciplinary action for misleading a self-regulatory
organization.
---------------------------------------------------------------------------

    \13\ Nasdaq notes, however, that several circumstances exist in
which price itself may provide a conclusive basis for determining
that an error occurred. For example, if a market participant entered
an order in a non-Nasdaq security for execution after 9:30 a.m., but
the primary market delayed its opening in the security until a later
time, an execution may occur at a price substantially unrelated to
the primary market's opening price of the security. Similarly, an
execution of an order for an exchange-traded fund at a price that is
substantially out-of-line with the intraday indicative value for the
fund may provide prima facie evidence of an error. There have also
been circumstances in which an employee of a member firm notices an
execution at a price a substantial percentage (i.e., well in excess
of 10%) away from the best bid/best offer, is unable to contact the
responsible trader to obtain an explanation, and files for a
nullification of the trade based solely on its price.
---------------------------------------------------------------------------

Other Changes
    Nasdaq is amending the time limits for market participants to file
for an adjudication under Rule 11890(a) in cases where the price of the
transaction at issue is more than 50% away from the applicable inside
price (or the closing price, for trading outside the Regular Session or
before the primary market has posted its first two-sided quote),
provided that the value of the transactions at issue is more than
$10,000.\14\ If these criteria are met, the transaction is defined as
an ``Outlier Transaction,'' and the parties to the trade are given an
extra hour to petition for review if the trade occurred during the
Regular Session or during pre-market hours, or until 9:30 a.m. the next
trading day if the trade occurred after hours. The reason for the
change is to provide greater assurance that trades that are egregiously
out of line with prevailing market prices are not permitted to stand,
provided that the dollar value of the trades is significant.
---------------------------------------------------------------------------

    \14\ Measured by multiplying the number of shares at issue in
the trades by the difference between the execution price and price
with which the execution price is compared under the rule.
---------------------------------------------------------------------------

    Nasdaq is also making several minor procedural modifications to the
rule. First, Nasdaq is amending the language of Rule 11890(a)(2)(E) to
allow Nasdaq to notify the counterparty to a trade about an erroneous
event by telephone or other means consistent with the communications
provisions of Rule 11890(d). While Nasdaq currently intends to continue
notifying counterparties by telephone, the proposed change would give
Nasdaq the flexibility to incorporate more electronic communications in
the future. Pursuant to Rule 11890(d), any change to the method of
communication must be announced by Nasdaq in a Notice to Members or
Head Trader Alert.
    Second, Nasdaq is amending Rule 11890(b) to replace a statement
that Nasdaq should, except in extraordinary circumstances, take action
under the subsection within thirty (30) minutes of detection of an
erroneous transaction, with a statement that Nasdaq should act as soon
as possible. Time is always of the essence when determinations must be
made under the rule, but as a practical matter, many events adjudicated
under Rule 11890(b) involve coordination between multiple market
centers, and the time required to gather and evaluate information
needed to make a determination is often in excess of 30 minutes.
Accordingly, Nasdaq is amending the rule to provide that a
determination must be made as soon as possible, except in extraordinary
circumstances, in which case the outside time limit for a determination
under the paragraph (b) will be 9:30 a.m. the next trading day (rather
than 3 p.m., as currently provided).
    Third, Nasdaq is amending Rule 11890 and the Interpretative
Material in several places to replace the word ``officer'' with the
word ``official.'' The intent of this change is to allow adjudications
under Rule 11890(a) to be made by any duly designated Nasdaq employee,
rather than limiting that authority to persons that are officers of
Nasdaq within the meaning of its limited liability company agreement
(e.g., persons with the title of Vice President or President). The
change will broaden the scope of persons permitted to adjudicate claims
under the Rule, thereby allowing more efficient adjudications. All
persons designated under the Rule will have appropriate background in
market structure and the requirements of the Rule; designated persons
are likely to be employees of Nasdaq's MarketWatch regulatory unit.
Nasdaq is not, however, modifying Rule

11890(b), which requires decisions to break or modify trades on
Nasdaq's own motion to be made by senior officers only. Consistent with
current practice, all adjudications under 11890(a) and (b) will
continue to be made on a ``no-names basis'' (i.e., the adjudicator does
not know the identities of the market participants that will be
affected by the decision).
    Finally, Nasdaq is amending the rule to add a consolidated
paragraph of definitions of terms used in the rule and to delete
obsolete references to transactions entered into by a member of a
national securities exchange with unlisted trading privileges in Nasdaq
securities. Although Nasdaq's former SuperMontage system allowed other
exchanges to enter orders directly, the current Nasdaq Market Center
does not retain this functionality. Rather, other exchanges and their
members can access Nasdaq through broker-dealers that are members of
Nasdaq, including broker-dealers owned by exchanges.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\15\ in general, and with
Section 6(b)(5) of the Act,\16\ in particular, in that the proposal is
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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f.
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) As the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding, or (ii) as to
which Nasdaq consents, the Commission will:
    (A) By order approve the 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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-NASDAQ-2007-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2007-001. This
file number should be included on the subject line if e-mail 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 inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of Nasdaq. 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-NASDAQ-2007-001 and
should be submitted on or before July 18, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-12426 Filed 6-26-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: December 18, 2009 (Volume 74, Number 242)]
[Notices]
[Page 67305-67306]
[DOCID:fr18de09-122]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Petition for Waiver of Compliance

    In accordance with Part 211 of Title 49 Code of Federal Regulations
(CFR), notice is hereby given that the Federal Railroad Administration
(FRA) has received a request for a waiver of compliance from certain
requirements of its safety standards. The individual petition is
described below, including the party seeking relief, the regulatory
provisions involved, the nature of the relief being requested, and the
petitioner's arguments in favor of relief.

Railserve, Inc.

(Waiver Petition Docket Number FRA-2009-0115)

    The Railserve, Inc. (RASX) of Atlanta, Georgia, has petitioned for
a permanent waiver of compliance for two (2) locomotives from the
requirements of the Railroad Safety Glazing Standards, Title 49 CFR
Part 223, which require certified glazing in all windows. The reporting
marks on these locomotives

are RASX 2120 and RASX 1286. These locomotives are used in switching
operations inside the Kinder Morgan chemical plant in Houston, Texas.
The switching operations involve interchange with the Union Pacific
Railroad for inbounds and outbounds only, on the trackage that is less
than \1/4\ mile long. RASX states that there is no history of vandalism
at the Kinder Morgan chemical plant in Houston, Texas, and that both
locomotives are parked inside the plant at all times. The top speed of
operations is 5 mph. RASX has stated that to install glass at FRA
specifications would be cost prohibitive. Interested parties are
invited to participate in these proceedings by submitting written
views, data, or comments. FRA does not anticipate scheduling a public
hearing in connection with these proceedings since the facts do not
appear to warrant a hearing. If any interested party desires an
opportunity for oral comment, they should notify FRA, in writing,
before the end of the comment period and specify the basis for their
request.
    All communications concerning these proceedings should identify the
appropriate docket number (e.g., Waiver Petition Docket Number FRA-
2009-0115) and may be submitted by any of the following methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue, SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
    Communications received within 45 days of the date of this notice
will be considered by FRA before final action is taken. Comments
received after that date will be considered as far as practicable. All
written communications concerning these proceedings are available for
examination during regular business hours (9 a.m.-5 p.m.) at the above
facility. All documents in the public docket are also available for
inspection and copying on the Internet at the docket facility's Web
site at http://www.regulations.gov.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the document (or signing the
document, if submitted on behalf of an association, business, labor
union, etc.). You may review DOT's complete Privacy Act Statement in
the Federal Register published on April 11, 2000 (65 FR 19477) or at
http://www.dot.gov/privacy.html.

     Issued in Washington, DC on December 11, 2009.
Grady C. Cothen, Jr.,
Deputy Associate Administrator for Safety Standards and Program
Development.
[FR Doc. E9-30200 Filed 12-17-09; 8:45 am]

BILLING CODE 4910-06-P