[Federal Register: February 1, 2008 (Volume 73, Number 22)]
[Notices]
[Page 6232-6233]
[DOCID:fr01fe08-129]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57203; File No. SR-CHX-2007-18]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change, as Modified by Amendment No.
1 Thereto, To Make Administrative Changes to Its Routing Rules

January 25, 2008.
    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 July 6, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') 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 the CHX.
On January 22, 2008, the Exchange filed Amendment No. 1 to the proposed
rule change. The Commission is publishing this notice to solicit
comments on the proposed rule change, as amended, from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The CHX proposes to amend its rules to make administrative changes
that are designed to allow third-party routers to provide better
service to their customers. The text of this proposed rule change is
available at the CHX, on the Exchange's Web site at http://www.chx.com/rules/proposed_rules.htm
, and in the Commission's Public Reference

Room.

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

    In its filing with the Commission, the CHX included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The CHX 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
    Under the Exchange's rules, the Exchange's Matching System will not
execute an order if its execution would be improper under Rule 611 of
Regulation NMS under the Act (an ``improper trade-through'').\3\
Similarly, the Exchange's Matching System will not display an order if
its display would improperly lock or cross other markets.\4\ In these
situations, the Exchange either cancels the order back to the
participant that submitted it or routes the order to the destination of
the participant's choice, all at the direction of the participant.\5\
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    \3\ See Article 20, Rule 5.
    \4\ See Article 20, Rule 6.
    \5\ The participant is responsible for ensuring that it has a
relationship with its chosen destination to permit the requested
access. The Exchange is not involved in the execution of the order--
any execution of the order is the responsibility of the destination
to which the order was sent. The Exchange, however, reports any
execution or cancellation of the order by the other destination to
the participant that submitted the order and notifies the other
venue of any cancellations or changes to the order submitted by the
order-sending participant. See Article 20, Rule 5, Interpretation
and Policy .03(b).
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    Under this proposal, the Exchange seeks to make three
administrative changes to its routing rules to permit these third-party
routers to provide better service to their customers. The

first proposed change would allow a participant and a routing
destination to request that the CHX flip any executions into the
participant's account and report that second leg of the away-market
transaction to clearing.\6\ This service would give the order-sending
participant the option of consolidating its clearing reports in
specific locations.
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    \6\ For example, if the Exchange routes a participant's buy
order to the participant's chosen destination (Router ABC) and
Router ABC gets an execution of that order in another market against
market maker XYZ, the first leg of the transaction (ABC buying from
XYZ) will be reported to clearing by the other market. The Router
ABC would send an execution report back to the Exchange (for routing
to the original order-sending participant). Under this proposal, if
the participant and Router ABC had requested, the Exchange would
take the execution report and create a clearing-only record,
flipping the execution from Router ABC's account to the account of
the order-sending participant (ABC selling to the order-sending
participant).
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    The second proposed change would allow the CHX (and a routing
destination) to determine whether additional agreements with CHX
participants are needed to implement the routing functionality for all
orders, except a cross with satisfy or an outbound ISO.\7\ While the
CHX believes that most routing destinations will require that order-
senders sign additional agreements for any services that the
destinations might provide, the CHX wants to provide flexibility for
destinations to make choices appropriate to their business models.
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    \7\ The routing of an outbound ISO or a cross with satisfy will
be provided pursuant to the agreements described in section (c)(1)
of Interpretation .03 to Rule 5, to the extent that the agreements
are applicable to a specific routing decision. See Article 20, Rule
5, Proposed Interpretation and Policy .03(c)(1).
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    Finally, the third proposed change would allow a participant to ask
its chosen destination to use the participant's own give-up (rather
than the routing destination's give-up) when routing orders to other
markets as part of a cross with satisfy or an outbound ISO.\8\ We
believe that some participants--that already have good give-ups in
other markets--might prefer that the routing service use those give-ups
rather than its own.
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    \8\ See Article 20, Rule 5, Proposed Interpretation and Policy
.03(c).
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    The Exchange believes that these proposed changes do not
substantially change the existing routing process, but instead simply
provide additional flexibility to the third-party routing services that
participants might desire to use.\9\
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    \9\ Because these proposals do not make substantive changes to
the Exchange's routing structure, the Exchange believes that its
routing of orders to a participant's chosen destination would
continue to be a facility of the Exchange, but the destinations
chosen by each participant would not constitute Exchange facilities.
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2. Statutory Basis
    The CHX believes the proposal is consistent with the requirements
of the Act and the rules and regulations thereunder that are applicable
to a national securities exchange, and, in particular, with the
requirements of Section 6(b).\10\ The proposed rule change is
consistent with Section 6(b)(5) of the Act \11\ because it would
promote just and equitable principles of trade, remove impediments to,
and perfect the mechanism of, a free and open market and a national
market system, and, in general, protect investors and the public
interest by allowing the Exchange to provide additional flexibility to
its participants and the destinations to which the Exchange should
route their orders.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will
impose any burden on competition.

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

    No written comments were either solicited or received.

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

    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 the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-CHX-2007-18 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-CHX-2007-18. 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CHX-2007-18 and should be
submitted on or before February 22, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-1787 Filed 1-31-08; 8:45 am]

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[Federal Register: November 27, 2009 (Volume 74, Number 227)]
[Rules and Regulations]
[Page 62217-62219]
[DOCID:fr27no09-6]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0571; Directorate Identifier 2009-NM-004-AD;
Amendment 39-16096; AD 2009-24-08]
RIN 2120-AA64

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

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Boeing Model 777-200, -200LR, -300, and -300ER series airplanes. This
AD requires inspections for scribe lines in the skin along lap joints,
butt joints, certain external doublers, and the large cargo door
hinges; and related investigative and corrective actions if necessary.
This AD results from reports of scribe lines found at lap joints and
butt joints, around external doublers, and at locations where external
decals had been removed. We are issuing this AD to detect and correct
scribe lines, which can develop into fatigue cracks in the skin.
Undetected fatigue cracks can grow and cause sudden decompression of
the airplane.

DATES: This AD is effective January 4, 2010.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of January 4,
2010.

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

Examining the AD Docket

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

FOR FURTHER INFORMATION CONTACT: Berhane Alazar, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
917-6577; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an airworthiness directive (AD) that would apply to
all Boeing Model 777 series airplanes. That NPRM was published in the
Federal Register on June 25, 2009 (74 FR 30245). That NPRM proposed to
require inspections for scribe lines in the skin along lap joints, butt
joints, certain external doublers, and the large cargo door hinges; and
related investigative and corrective actions if necessary.

Comments

    We gave the public the opportunity to participate in developing
this AD. We considered the comment received from the one commenter.

Request To Eliminate Reporting Requirement for Negative Findings

    Boeing requests that we revise paragraph (k) of the NPRM to
eliminate the requirement to report negative findings. Boeing states
that this requirement deviates from Boeing Alert Service Bulletin 777-
53A0054, dated August 7, 2008, in that the service bulletin specified
that operators report findings of cracking. Boeing states that since
the Model 777 fleet is young relative to the inspection thresholds,
this reporting requirement may last for decades and it would involve
hundreds of airplanes. Boeing states that after a period of time, the
requirement would become redundant and is therefore an unnecessary
burden.
    We agree with the commenter for the reasons provided. We revised
paragraph (k) of the final rule to eliminate the requirement to report
negative findings.

Explanation of Change To Applicability

    We have revised the applicability of this AD to identify model
designations as published in the type certificate data sheet for the
affected models listed in Boeing Alert Service Bulletin 777-53A0054,
dated August 7, 2008.

Conclusion

    We reviewed the relevant data, considered the comment received, and
determined that air safety and the public interest require adopting the
AD with the changes described previously. We also determined that these
changes will not increase the economic burden on any operator or
increase the scope of the AD.

Costs of Compliance

    We estimate that this AD affects 129 airplanes of U.S. registry.
The following table provides the estimated costs for U.S. operators to
comply with this AD. A work-hour estimate is not available for the
inspection for an external repair doubler since the inspection required
can be different depending on the in-service repair history of the
airplane. This inspection affects up to 129 U.S.-registered airplanes.

                                                                 Table--Estimated costs
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                                                                                Number of
                                                             Average                                                     U.S.-
              Action                      Work hours        labor rate          Parts             Cost per product     registered        Fleet cost
                                                             per hour                                                  airplanes
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Exploratory Inspection............  9 to 34..............          $80  None.................  $720 to $2,720.......          129  $92,880 to
                                                                                $350,880
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Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2009-24-08 Boeing: Amendment 39-16096. Docket No. FAA-2009-0571;
Directorate Identifier 2009-NM-004-AD.

Effective Date

    (a) This airworthiness directive (AD) is effective January 4,
2010.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Boeing Model 777-200, -200LR, -300, and -
300ER series airplanes, certificated in any category, as identified
in Boeing Alert Service Bulletin 777-53A0054, dated August 7, 2008.

Subject

    (d) Air Transport Association (ATA) of America Code 53:
Fuselage.

Unsafe Condition

    (e) This AD results from reports of scribe lines found at lap
joints and butt joints, around external doublers, and at locations
where external decals had been cut. We are issuing this AD to detect
and correct scribe lines, which can develop into fatigue cracks in
the skin. Undetected fatigue cracks can grow and cause sudden
decompression of the airplane.

Compliance

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

Inspection

    (g) At the applicable times specified in paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 777-53A0054, dated
August 7, 2008, except as provided in paragraphs (h) and (j) of this
AD, do detailed exploratory inspections for scribe lines in the skin
along lap joints, butt joints, certain external doublers, and the
large cargo door hinges. Do all applicable related investigative and
corrective actions at the times specified in the service bulletin,
by accomplishing all actions specified in the Accomplishment
Instructions of the service bulletin, except as provided by
paragraph (i) of this AD.

    Note 1:  The inspection exemptions described in NOTES 1.-5. in
paragraph 1.E. of Boeing Alert Service Bulletin 777-53A0054, dated
August 7, 2008, apply to this AD.

Exceptions to Service Bulletin Specifications

    (h) Where Boeing Alert Service Bulletin 777-53A0054, dated
August 7, 2008, specifies a compliance time after the date on the
service bulletin, this AD requires compliance within the specified
compliance time after the effective date of this AD.
    (i) Where Boeing Alert Service Bulletin 777-53A0054, dated
August 7, 2008, specifies to contact Boeing for appropriate action,
accomplish applicable actions using a method approved in accordance
with the

procedures specified in paragraph (l) of this AD.
    (j) Where paragraph 1.E. of Boeing Alert Service Bulletin 777-
53A0054, dated August 7, 2008, specifies to ``contact Boeing for
inspection requirements for operation beyond 60,000 total flight-
cycles after first repaint,'' for those airplanes, this AD requires
contacting the Manager, Seattle Aircraft Certification Office (ACO),
for all inspection requirements of this AD and doing the
requirements.

Report

    (k) At the applicable time specified in paragraph (k)(1) or
(k)(2) of this AD: Submit a report of positive findings of cracks
found during the inspection required by paragraph (g) of this AD to
the Boeing Commercial Airplane Group, P.O. Box 3707, Seattle,
Washington 98124-2207. Alternatively, operators may submit reports
to their Boeing field service representatives. The report must
contain, at a minimum, the inspection results, a description of any
discrepancies found, the airplane serial number, and the number of
flight cycles and flight hours on the airplane. Under the provisions
of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the Office
of Management and Budget (OMB) has approved the information
collection requirements contained in this AD and has assigned OMB
Control Number 2120-0056.
    (1) If the inspection was done on or after the effective date of
this AD: Submit the report within 30 days after the inspection.
    (2) If the inspection was done before the effective date of this
AD: Submit the report within 30 days after the effective date of
this AD.

Alternative Methods of Compliance (AMOCs)

    (l)(1) The Manager, Seattle ACO, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. Send information to ATTN: Berhane Alazar, Aerospace
Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft
Certification Office, 1601 Lind Avenue, SW., Renton, Washington
98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Or, e-mail
information to<EMAIL_ADDRESS>    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your principal maintenance inspector (PMI) or
principal avionics inspector (PAI), as appropriate, or lacking a
principal inspector, your local Flight Standards District Office.
The AMOC approval letter must specifically reference this AD.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD, if it is approved by an
Authorized Representative for the Boeing Commercial Airplanes
Delegation Option Authorization Organization who has been authorized
by the Manager, Seattle ACO, to make those findings. For a repair
method to be approved, the repair must meet the certification basis
of the airplane and the approval must specifically refer to this AD.

Material Incorporated by Reference

    (m) You must use Boeing Alert Service Bulletin 777-53A0054,
dated August 7, 2008, to do the actions required by this AD, unless
the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P. O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone
206-544-5000, extension 1; fax<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com.
    (3) You may review copies of the service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington. For information on the availability of this material at
the FAA, call<PHONE_NUMBER> or<PHONE_NUMBER>.
    (4) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html.

    Issued in Renton, Washington, on November 12, 2009.
Stephen P. Boyd,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-28169 Filed 11-25-09; 8:45 am]

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