[Federal Register Volume 84, Number 48 (Tuesday, March 12, 2019)]
[Proposed Rules]
[Pages 8834-8835]
[FR Doc No: 2019-04375]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2019-0105; Airspace Docket No. 19-AGL-9]
RIN 2120-AA66

Proposed Amendment of Class E Airspace; Manistique, MI

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend the Class E airspace extending
upward from 700 feet above the surface and the Class E airspace
extending upward from 1,200 feet above the surface at Schoolcraft
County Airport, Manistique, MI. The FAA is proposing this action as the
result of an airspace review caused by the decommissioning of the
Schoolcraft VHF omnidirectional range (VOR) navigation aid, which
provided navigation information for the instrument procedures at these
airports, as part of the VOR Minimum Operational Network (MON) Program.
The geographic coordinates of the Schoolcraft County Airport would also
be updated to coincide with the FAA's aeronautical database. Airspace
redesign is necessary for the safety and management of instrument
flight rules (IFR) operations at this airport.

DATES: Comments must be received on or before April 26, 2019.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590; telephone
(202) 366-9826, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2019-0105; Airspace Docket No. 19-AGL-9, at the beginning of your
comments. You may also submit comments through the internet at http://www.regulations.gov. You may review the public docket containing the
proposal, any comments received, and any final disposition in person in
the Dockets Office between 9:00 a.m. and 5:00 p.m., Monday through
Friday, except federal holidays.
    FAA Order 7400.11C, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11C at NARA, call<PHONE_NUMBER>, or go
to http://www.archives.gov/federal-register/cfr/ibr-locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Jeffrey Claypool, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. 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. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would amend the Class E airspace extending upward from 700 feet
above the surface and the Class E airspace extending upward form 1,200
feet above the surface at Schoolcraft County Airport, Manistique, MI,
to support IFR operations at this airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2019-0105;
Airspace Docket No. 19-AGL-9.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at http://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in

person in the Dockets Office (see the ADDRESSES section for the address
and phone number) between 9:00 a.m. and 5:00 p.m., Monday through
Friday, except federal holidays. An informal docket may also be
examined during normal business hours at the Federal Aviation
Administration, Air Traffic Organization, Central Service Center,
Operations Support Group, 10101 Hillwood Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11C, Airspace
Designations and Reporting Points, dated August 13, 2018, and effective
September 15, 2018. FAA Order 7400.11C is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11C lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 by amending the Class E airspace extending
upward from 700 feet above the surface to within a 6.5-mile radius
(reduced from a 7-mile radius) of Schoolcraft County Airport,
Manistique, MI; amending the Class E airspace extending upward from
1,200 feet above the surface within a 9-mile radius of Schoolcraft
County Airport; removing the extension to the east of the airport, as
it is no longer required; removing the city associated with the airport
from the airspace legal description to comply with FAA Order 7400.2M,
Procedures for Handling Airspace Matters; and updating the geographic
coordinates of the airport to coincide with the FAA's aeronautical
database.
    This action is necessary due to an airspace review caused by the
decommissioning of the Schoolcraft VOR, which provided navigation
information for the instrument procedures at these airports, as part of
the VOR MON Program.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.11C, dated August 13, 2018, and effective September 15,
2018, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designation listed in this document will be published
subsequently in the Order.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a regulatory evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11C,
Airspace Designations and Reporting Points, dated August 13, 2018, and
effective September 15, 2018, is amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AGL MI E5 Manistique, MI [Amended]

Schoolcraft County Airport, MI
    (Lat. 45[deg]58'29'' N, long. 86[deg]10'19'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.5-mile radius of Schoolcraft County Airport, and that
airspace extending upward from 1,200 feet above the surface within a
9-mile radius of Schoolcraft County Airport.

    Issued in Fort Worth, Texas, on March 4, 2019.
John Witucki,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2019-04375 Filed 3-11-19; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: November 5, 2007 (Volume 72, Number 213)]
[Notices]
[Page 62500]
[DOCID:fr05no07-82]

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SECURITIES AND EXCHANGE COMMISSION

[File No. 500-1]

In the Matter of: BIMS Renewable Energy, Inc. (n/k/a Tung Ding
Resources, Inc.); Order of Suspension of Trading

November 1, 2007.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
BIMS Renewable Energy, Inc. (n/k/a Tung Ding Resources, Inc.), because
it has not filed a periodic report since the period ended June 30,
2004.
    The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in the
securities of the above-listed company.
    Therefore, it is ordered, pursuant to section 12(k) of the
Securities Exchange Act of 1934, that trading in the securities of the
above-listed company is suspended for the period from 9:30 a.m. EDT on
November 1, 2007 through 11:59 p.m. EST on November 14, 2007.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 07-5519 Filed 11-1-07; 10:37 am]

BILLING CODE 8011-01-P


[Federal Register: October 25, 2010 (Volume 75, Number 205)]
[Notices]
[Page 65478-65479]
[DOCID:fr25oc10-48]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OW-2007-0201, FRL-9216-9]

Agency Information Collection Activities: Proposed Collection;
Comment Request; National Listing of Fish Advisories (Renewal), EPA ICR
Number 1959.04, OMB Control Number 2040-0226

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (PRA) (44
U.S.C. 3501 et seq.), this document announces that EPA is planning to
renew an existing approved Information Collection Request (ICR) to the
Office of Management and Budget (OMB). This ICR is scheduled to expire
on February 28, 2011. Before submitting the ICR to OMB for review and
approval, EPA is soliciting comments on specific aspects of the
proposed information collection as described below.

DATES: Comments must be submitted on or before December 27, 2010.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-OW-
2007-0201, by one of the following methods:
     Online: http://www.regulations.gov. Follow the on-line
instructions for submitting comments.
     E-mail<EMAIL_ADDRESS>     Mail: EPA Docket Center, Environmental Protection Agency,
Water Docket, Mailcode C28221T, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460.
     Hand Delivery: EPA Docket, EPA West Room 3334, 1301
Constitution Ave., NW., Washington, DC 20460. Such deliveries are only
accepted during the Docket's normal hours of operation, and special
arrangements should be made for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OW-2007-
0201. EPA's policy is that all comments received will be included in
the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through http://
www.regulations.gov or e-mail. The http://www.regulations.gov Web site
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses. For additional information about EPA's public
docket visit the EPA Docket Center homepage at http://www.epa.gov/
dockets.

FOR FURTHER INFORMATION CONTACT: LCDR Samantha Fontenelle, Office of
Science and Technology, U.S. Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington, DC 20460; telephone number: (202)
566-2083; fax number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

How can I access the docket and/or submit comments?

    EPA has established a public docket for this ICR under Docket ID
No. EPA-HQ-OW-2007-0201, which is available for online viewing at
http://www.regulations.gov, or in person viewing at the Water Docket in
the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution
Ave., NW., Washington, DC. The EPA/DC Public Reading Room is open from
8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal
holidays. The telephone number for the Reading Room is<PHONE_NUMBER>,
and the telephone number for the Water Docket is<PHONE_NUMBER>.
    Use http://www.regulations.gov to obtain a copy of the draft
collection of information, submit or view public comments, access the
index listing of the contents of the docket, and to access those
documents in the public docket that are available electronically. Once
in the system, select ``search,'' then key in the Docket ID number
identified in this document.

What information is EPA particularly interested in?

    Pursuant to section 3506(c)(2)(A) of the PRA, EPA specifically
solicits comments and information to enable it to:
    (i) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the Agency,
including whether the information will have practical utility;
    (ii) Evaluate the accuracy of the Agency's estimate of the burden
of the proposed collection of information,

including the validity of the methodology and assumptions used;
    (iii) Enhance the quality, utility, and clarity of the information
to be collected; and
    (iv) Minimize the burden of the collection of information on those
who are to respond, including through the use of appropriate automated
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses. In particular, EPA is requesting comments from
very small businesses (those that employ less than 25) on examples of
specific additional efforts that EPA could make to reduce the paperwork
burden for very small businesses affected by this collection.

What should I consider when I prepare my comments for EPA?

    You may find the following suggestions helpful for preparing your
comments:
    1. Explain your views as clearly as possible and provide specific
examples.
    2. Describe any assumptions that you used.
    3. Provide copies of any technical information and/or data you used
that support your views.
    4. If you estimate potential burden or costs, explain how you
arrived at the estimate that you provide.
    5. Offer alternative ways to improve the collection activity.
    6. Make sure to submit your comments by the deadline identified
under DATES.
    7. To ensure proper receipt by EPA, be sure to identify the Docket
ID number assigned to this action in the subject line on the first page
of your response. You may also provide the name, date, and Federal
Register citation.

What information collection activity or ICR does this apply to?

    Affected entities: Entities potentially affected by this action are
Administrators of Public Health and Environmental Quality Programs in
State and Tribal governments (NAICS 92312/SIC 9431 and NAICS 92411/SIC
9511).
    Title: National Listing of Fish Advisories (Renewal).
    ICR numbers: EPA ICR No. 1959.04, OMB Control No. 2040-0226.
    ICR status: This ICR is currently scheduled to expire on February
28, 2011. An Agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information, unless it displays
a currently valid OMB control number. The OMB control numbers for EPA's
regulations in title 40 of the CFR, after appearing in the Federal
Register when approved, are listed in 40 CFR part 9, are displayed
either by publication in the Federal Register or by other appropriate
means, such as on the related collection instrument or form, if
applicable. The display of OMB control numbers in certain EPA
regulations is consolidated in 40 CFR part 9.
    Abstract: The National Listing of Fish Advisories (NLFA) Database
contains information on the number of advisories issued by each State,
territory, or Tribe annually. The advisory information collected
identifies the waterbody under advisory, the fish or shellfish species
and size ranges included in the advisory, the chemical contaminants and
residue levels causing the advisory to be issued, the waterbody type
(river, lake, estuary, coastal waters), and the target populations to
whom the advisory is directed. This information is collected under the
authority of section 104 of the Clean Water Act, which provides for the
collection of information to be used to protect human health and the
environment. The results of the survey are shared with States,
territories, Tribes, other Federal agencies, and the general public
through the NLFA database and the distribution of biennial fish
advisory fact sheets. The responses to the survey are voluntary and the
information requested is part of the State public record associated
with the advisories. No confidential business information is requested.
    Burden Statement: The annual public reporting and recordkeeping
burden for the collection of information is estimated to average 36.26
hours per response. Burden means the total time, effort, or financial
resources expended by persons to generate, maintain, retain, disclose
or provide information to or for a Federal agency. This includes the
time needed to review instructions; develop, acquire, install, and
utilize technology and systems for the purposes of collecting,
validating, and verifying information, processing and maintaining
information, and disclosing and providing information; adjust the
existing ways to comply with any previously applicable instructions and
requirements which have subsequently changed; train personnel to be
able to respond to a collection of information; search data sources;
complete and review the collection of information; and transmit or
otherwise disclose the information.
    The ICR provides a detailed explanation of the Agency's estimate,
which is only briefly summarized here:
    Estimated total number of potential respondents: Up to 92.
    Frequency of response: Annual.
    Estimated total average number of responses for each respondent: 3.
    Estimated total annual burden hours: 3,336 labor hours.
    Estimated total annual burden costs: $125,697.09. No capital or
startup costs are required.

Are there changes in the estimates from the last approval?

    There is a decrease of 229 hours in the total estimated respondent
burden compared with that identified in the ICR currently approved by
OMB. This decrease reflects a change in how the States, Tribes and
territories provide the fish advisory data to EPA. The data tool is no
longer being used by States to enter data into the NLFA database.

What is the next step in the process for this ICR?

    EPA will consider the comments received and amend the ICR as
appropriate. The final ICR package will then be submitted to OMB for
review and approval pursuant to 5 CFR 1320.12. At that time, EPA will
issue another Federal Register notice pursuant to 5 CFR
1320.5(a)(1)(iv) to announce the submission of the ICR to OMB and the
opportunity to submit additional comments to OMB. If you have any
questions about this ICR or the approval process, please contact the
technical person listed under FOR FURTHER INFORMATION CONTACT.

    Dated: October 15, 2010.
Ephraim S. King,
Director, Office of Science and Technology.
[FR Doc. 2010-26882 Filed 10-22-10; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: May 1, 2008 (Volume 73, Number 85)]
[Proposed Rules]
[Page 23995-23997]
[DOCID:fr01my08-17]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-0179; Directorate Identifier 2007-NM-367-AD]
RIN 2120-AA64

Airworthiness Directives; Bombardier Model DHC-8-102, DHC-8-103,
DHC-8-106, DHC-201, DHC-8-202, DHC-8-301, DHC-8-311, and DHC-8-315
Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Supplemental notice of proposed rulemaking (NPRM); reopening of
comment period.

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SUMMARY: We are revising an earlier NPRM for the products listed above.
This action revises the earlier NPRM by expanding the scope. This
proposed AD results from mandatory continuing airworthiness information
(MCAI) originated by an aviation authority of another country to
identify and correct an unsafe condition on an aviation product. The
MCAI describes the unsafe condition as:

    Bombardier Aerospace has completed a system safety review of the
aircraft fuel system against fuel tank safety standards * * *.

    [A]ssessment showed that supplemental maintenance tasks
[inspections of fuel tank bonding jumpers, wiring harnesses, and
drain valve components, among other items and actions; and
applicable corrective actions] are required to prevent potential
ignition sources inside the fuel system, which could result in a
fuel tank explosion. * * *

The proposed AD would require actions that are intended to address the
unsafe condition described in the MCAI.

DATES: We must receive comments on this proposed AD by May 21, 2008.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-40, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Operations office (telephone<PHONE_NUMBER>) is
in the ADDRESSES section. Comments will be available in the AD docket
shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Rocco Viselli, Aerospace Engineer,
Airframe and Propulsion Branch, ANE-171, FAA, New York Aircraft
Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, New
York 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2008-0179;
Directorate Identifier 2007-NM-367-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    We proposed to amend 14 CFR part 39 with an earlier NPRM for the
specified products, which was published in the Federal Register on
February 19, 2008 (73 FR 9055). That earlier NPRM proposed to require
actions intended to address the unsafe condition for the products
listed above.
    Since that earlier NPRM was issued, we have determined that for
certain airplanes the initial compliance times for doing the tasks
specified in paragraph (f)(1) of the earlier NPRM must be reduced. That
earlier NPRM resulted from Canadian Airworthiness Directive CF-2007-32,
dated December 17, 2007 (referred to after this as ``the MCAI'').
    The MCAI does not provide an initial compliance time for doing the
tasks for certain airplanes. For those airplanes, in the earlier NPRM
we proposed an initial compliance time that started from the effective
date of the AD; or the date of issuance of the original Canadian
standard airworthiness certificate or the date of issuance of the
original Canadian export certificate of airworthiness; whichever occurs
later. Although unstated in the MCAI, we have determined that the
intent of the MCAI is for the initial compliance time to start from the
initial delivery date of the airplane in order to address the
identified unsafe condition in a timely manner. We have also revised
the initial compliance times for clarity by providing a threshold and
grace period for each task. We have revised this supplemental NPRM by
adding Table 2 to specify the initial compliance times for each task.
You may obtain further information by examining the MCAI in the AD
docket.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of the same
type design.
    Certain changes described above expand the scope of the earlier
NPRM. As a result, we have determined that it is necessary to reopen
the comment period to provide additional opportunity for the public to
comment on this proposed AD.

Differences Between This AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have required different actions in this AD from those
in the MCAI in order to follow our FAA policies. Any such differences
are highlighted in a NOTE within the AD.

Costs of Compliance

    Based on the service information, we estimate that this proposed AD
would affect about 122 products of U.S. registry. We also estimate that
it would take about 1 work-hour per product to comply with the basic
requirements of this proposed AD. The average labor rate is $80 per
work-hour. Based on these figures, we estimate the cost of the proposed
AD on U.S. operators to be $9,760, or $80 per product.

Authority for This Rulemaking

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

Regulatory Findings

    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); 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.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, 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

    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]

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

Bombardier, Inc. (Formerly de Havilland, Inc.): Docket No. FAA-2008-
0179; Directorate Identifier 2007-NM-367-AD.

Effective Date

    (a) We must receive comments by May 21, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to all Bombardier Model DHC-8-102, DHC-8-
103, DHC-8-106, DHC-201, DHC-8-202, DHC-8-301, DHC-8-311, and DHC-8-
315 airplanes, certificated in any category, all serial numbers.

    Note 1: This AD requires revisions to certain operator
maintenance documents to include new inspections. Compliance with
these inspections is required by 14 CFR 91.403(c). For airplanes
that have been previously modified, altered, or repaired in the
areas addressed by these inspections, the operator may not be able
to accomplish the inspections described in the revisions. In this
situation, to comply with 14 CFR 91.403(c), the operator must
request approval for an alternative method of compliance according
to paragraph (g) of this AD. The request should include a
description of changes to the required inspections that will ensure
the continued operational safety of the airplane.

Subject

    (d) Air Transport Association (ATA) of America Code 28: Fuel.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:
    Bombardier Aerospace has completed a system safety review of the
aircraft fuel system against fuel tank standards introduced in
Chapter 525 of the Airworthiness Manual through Notice of Proposed
Amendment (NPA) 2002-043. The identified non-compliances were then
assessed using Transport Canada Policy Letter No. 525-001, to
determine if mandatory corrective action is required.
    The assessment showed that supplemental maintenance tasks
[inspections of fuel tank bonding jumpers, wiring harnesses, and
drain valve components, among other items and actions; and
applicable corrective actions] are required to prevent potential
ignition sources inside the fuel system, which could result in a
fuel tank explosion. Revisions have been made to Part 2
``Airworthiness Limitations List'' of the DHC-8 Maintenance Program
Manuals to introduce the required maintenance tasks.
    The corrective action is revising the Airworthiness Limitations
Section of the Instructions for Continued Airworthiness to
incorporate new limitations for fuel tank systems.

Actions and Compliance

    (f) Unless already done, do the following actions.
    (1) Within 60 days after the effective date of this AD, or
before December 16, 2008, whichever occurs first, revise the
Airworthiness Limitations Section (ALS) of the Instructions for
Continued Airworthiness to incorporate the fuel system limitations
tasks identified in the de Havilland temporary revisions (TRs) to
Part 2 ``Airworthiness Limitations List'' of the Dash 8 Series
Maintenance Program Manuals (``the MPMs''). The TRs are listed in
Table 1 of this AD. For the tasks identified in the TRs, the initial
compliance times start at the later of the applicable ``Threshold''
and ``Grace Period'' times specified in Table 2 of this AD, and the
repetitive limitation tasks must be accomplished thereafter at the
interval specified in the TRs to the MPM, except as provided by
paragraphs (f)(2), (f)(3), (f)(4), and (g)(1) of this AD.

                      Table 1.--Temporary Revisions
------------------------------------------------------------------------
             Model               de Havilland TR            MPM
------------------------------------------------------------------------
DHC-8-102, DHC-8-103, and DHC-  AWL-110, dated     Dash 8 Series 100
 8-106 airplanes.                August 31, 2007.   MPM, Product Support
                                                    Manual (PSM) 1-8-7,
                                                    Part 2,
                                                    ``Airworthiness
                                                    Limitations List''.
DHC-8-201, and DHC-8-202        AWL 2-43, dated    Dash 8 Series 200
 airplanes.                      August 31, 2007.   MPM, PSM 1-82-7,
                                                    Part 2,
                                                    ``Airworthiness
                                                    Limitations List''.
DHC-8-301, DHC-8-311, and DHC-  AWL 3-109, dated   Dash 8 Series 300
 8-315 airplanes.                August 31, 2007.   MPM, PSM 1-83-7,
                                                    Part 2,
                                                    ``Airworthiness
                                                    Limitations List''.
------------------------------------------------------------------------

                      Table 2.--Initial Inspections
------------------------------------------------------------------------
                               Compliance time (whichever occurs later)
         Description         -------------------------------------------
                                    Threshold           Grace period
------------------------------------------------------------------------
Tasks with 6,000 flight       Before the            Within 2,000 flight
 hours/36 month intervals.     accumulation of       hours or 12 months
                               6,000 total flight    after the effective
                               hours, or within 36   date of this AD,
                               months since new,     whichever occurs
                               whichever occurs      first.
                               first.
Tasks with 18,000 flight      Before the            Within 6,000 flight
 hours/108 month intervals.    accumulation of       hours or 36 months
                               18,000 total flight   after the effective
                               hours, or within      date of this AD,
                               108 months since      whichever occurs
                               new, whichever        first.
                               occurs first.
Tasks with 72,000 flight      Before the            Within 600 flight
 hours/36 year intervals.      accumulation of       hours or 3 months
                               72,000 total flight   after the effective
                               hours, or within 36   date of this AD,
                               years since new,      whichever occurs
                               whichever occurs      first.
                               first.
------------------------------------------------------------------------

    Note 2: The actions required by paragraph (f)(1) of this AD may
be done by inserting a copy of the applicable TR listed in Table 1
of this AD into the Airworthiness Limitations section of the
applicable MPM listed in Table 1 of this AD. When the applicable TR
has been included in general revisions of the applicable MPM, the
general revisions may be inserted in the MPM, provided the relevant
information in the general revision is identical to that in the
applicable TR.

    (2) For those tasks with 6,000 flight hours/36 month limitation
task intervals: For airplanes that have accumulated 4,000 total
flight hours or more, or 24 months or more since new, as of the
effective date of this AD, do the initial limitation tasks within
2,000 flight hours or 12 months after the effective date of this AD,
whichever occurs first. Thereafter, repeat the limitation tasks at
intervals not to exceed 6,000 flight hours or 36 months, whichever
occurs first.
    (3) For those tasks with 18,000 flight hours/108 month
limitation task intervals: For airplanes that have accumulated
12,000 total flight hours or more, or 72 months or more since new,
as of the effective date of this AD, do the initial limitation tasks
within 6,000 flight hours or 36 months after the effective date of
this AD, whichever occurs first. Thereafter, repeat the limitation
tasks at intervals not to exceed 18,000 flight hours or 108 months,
whichever occurs first.
    (4) After accomplishing the actions specified in paragraphs
(f)(1), (f)(2), and (f)(3) of this AD, no alternative inspections/
limitation tasks or inspection/limitation task intervals may be used
unless the inspections/limitation tasks or inspection/limitation
task intervals are part of a later revision of Part 2
``Airworthiness Limitations List'' of the applicable de Havilland
Dash 8 Series MPM listed in Table 3 of this AD, that is approved by
the Manager, New York Aircraft Certification Office (ACO), FAA, or
the Transport Canada Civil Aviation (TCCA) (or its delegated agent);
or unless inspections/limitation tasks or inspection/limitation task
intervals are approved as an alternative method of compliance (AMOC)
in accordance with the procedures specified in paragraph (g)(1) of
this AD.

                  Table 3.--Maintenance Program Manuals
------------------------------------------------------------------------
            Model                                 MPM
------------------------------------------------------------------------
DHC-8-102, DHC-8-103, and DHC- Dash 8 Series 100 MPM, PSM 1-8-7, Part 2,
 8-106 airplanes.               ``Airworthiness Limitations List,''
                                Revision 17, dated April 19, 2005.
DHC-8-201, and DHC-8-202       Dash 8 Series 200 MPM, PSM 1-82-7, Part
 airplanes.                     2, ``Airworthiness Limitations List,''
                                Revision 5, dated August 15, 2001.
DHC-8-301, DHC-8-311, and DHC- Dash 8 Series 300 MPM, PSM 1-83-7, Part
 8-315 airplanes.               2, ``Airworthiness Limitations List,''
                                Revision 16, dated August 15, 2001.
------------------------------------------------------------------------

FAA AD Differences

    Note 3: This AD differs from the MCAI and/or service information
as follows: No differences.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York 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: Rocco Viselli, Aerospace Engineer, Airframe and
Propulsion Branch, ANE-171, FAA, New York Aircraft Certification
Office, 1600 Stewart Avenue, Suite 410, Westbury, New York 11590;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before using any
approved AMOC on any airplane to which the AMOC applies, notify your
appropriate principal inspector (PI) in the FAA Flight Standards
District Office (FSDO), or lacking a PI, your local FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI Canadian Airworthiness Directive CF-2007-32,
dated December 17, 2007, and the temporary revisions listed in Table
1 of this AD.

    Issued in Renton, Washington, on April 24, 2008.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E8-9575 Filed 4-30-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 90 (Thursday, May 9, 2013)]
[Notices]
[Pages 27217-27218]
[FR Doc No: 2013-11008]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP13-836-000.
    Applicants: Southern Natural Gas Company, LLC.
    Description: Map Update--2013 to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5041.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-837-000.
    Applicants: Texas Gas Transmission, LLC.
    Description: Implement PAL and HOT on Laterals to be effective 6/1/
2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5047.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-838-000.
    Applicants: WBI Energy Transmission, Inc.
    Description: 2013 System Maps to be effective 4/30/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5079.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-839-000.
    Applicants: ANR Pipeline Company.
    Description: Cashout Surcharge 2013 to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5084.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-840-000.
    Applicants: Northern Natural Gas Company.
    Description: 20130430 Negotiated Rate to be effective 5/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5085.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-841-000.
    Applicants: Florida Gas Transmission Company, LLC.
    Description: New Service Agreement to be effective 5/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5129.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-842-000.
    Applicants: Florida Gas Transmission Company, LLC.
    Description: Update Non-Conforming List to be effective 5/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5131.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-843-000.
    Applicants: Golden Pass Pipeline LLC.
    Description: 2013 Annual Operational Purchases and Sales Report.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5143.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-844-000.
    Applicants: Natural Gas Pipeline Company of America.
    Description: EOG Negotiated Rate Filing to be effective 5/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5144.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-845-000.
    Applicants: ETC Tiger Pipeline, LLC.
    Description: ETC Tiger 2013--System Map Filing to be effective 6/1/
2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5152.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-846-000.
    Applicants: Midcontinent Express Pipeline LLC.
    Description: Fuel Tracking Filing to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5163.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-847-000.
    Applicants: Black Marlin Pipeline Company.
    Description: Annual Cash-Out Report of Black Marlin Pipeline
Company.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5187.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-848-000.
    Applicants: Cheyenne Plains Gas Pipeline Company, L.
    Description: CPG Annual Fuel and L&U Filing to be effective 6/1/
2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5219.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-849-000.
    Applicants: Algonquin Gas Transmission, LLC.
    Description: Brooklyn Union April 2013 Releases to be effective 5/
1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5246.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-850-000.
    Applicants: Discovery Gas Transmission LLC.
    Description: System Map Update to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5275.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-851-000.
    Applicants: Fayetteville Express Pipeline LLC.
    Description: FEP 2013 Semi-Annual Fuel Filing 4/30/13 to be
effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5297.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-852-000.
    Applicants: Chandeleur Pipe Line Company.
    Description: Chandeleur Section 4 Tariff System Map to be effective
6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5309.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-853-000.
    Applicants: Dominion Transmission, Inc.
    Description: DTI--System Map Update to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5311.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-854-000.
    Applicants: Dominion Cove Point LNG, LP.
    Description: DCP--System Map Update to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5314.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-855-000.
    Applicants: Florida Gas Transmission Company, LLC.
    Description: Map Filing on 4-30-13 to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5340.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-856-000.
    Applicants: Trunkline Gas Company, LLC.
    Description: Map Filing on 4-30-13 to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5346.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-857-000.
    Applicants: Sea Robin Pipeline Company, LLC.
    Description: Map Filing on 4-30-13 to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5350.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-858-000.
    Applicants: Great Lakes Gas Transmission Limited Par.
    Description: Map Update to be effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5379.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-859-000.
    Applicants: ETC Tiger Pipeline, LLC.
    Description: ETC Tiger 2013 Semi-Annual Fuel Filing 4/30/2013 to be
effective 6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5456.

    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-860-000.
    Applicants: Golden Pass Pipeline LLC.
    Description: 2013 Annual Retainage Rate Adjustment to be effective
6/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5478.
    Comments Due: 5 p.m. ET 5/13/13.

    Docket Numbers: RP13-861-000.
    Applicants: Trailblazer Pipeline Company LLC.
    Description: Trailblazer Pipeline Company LLC submits tariff filing
per 154.204: Rate Schedule FTB Original Filing of Sheet-based to
Section-based to be effective 5/1/2013.
    Filed Date: 4/30/13.
    Accession Number: 20130430-5488.
    Comments Due: 5 p.m. ET 5/13/13.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, and service can be found at:
http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other
information, call<PHONE_NUMBER> (toll free). For TTY, call (202) 502-
8659.

    Dated May 1, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-11008 Filed 5-8-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 194 (Thursday, October 6, 2011)]
[Notices]
[Pages 62102-62103]
[FR Doc No: 2011-25793]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65445; File No. SR-CBOE-2011-086)

 Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Proposed Rule To Increase the Number of Series
Permitted per Class in the Short Term Option Series Program

September 30, 2011.
    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 September 19, 2011, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    Chicago Board Options Exchange, Incorporated proposes to amend
Rules 5.5 and 24.9 to increase the number of Short Term Options Series
that may be opened for each option class that participates in the
Exchange's Short Term Option Series Program (``Weeklys Program'') from
20 series to 30 series. The text of the rule proposal is available on
the Exchange's Web site (http://www.cboe.org/legal), at the Exchange's
Office of the Secretary, and at the Commission's public reference room.

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

    In its filing with the Commission, the self-regulatory organization
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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The purpose of this proposed rule change is to amend Rules 5.5 and
24.9 to increase the number of Short Term Options Series (``Weekly
options'') that may be opened for each option class that participates
in the Exchange's Short Term Option Series Program (``Weeklys
Program'').\3\ Currently, a total of 20 series may be opened for
trading in each class that participates in the Weeklys Program. The
Exchange is proposing to increase this to a total of 30 series per
class that may be opened for trading.\4\
---------------------------------------------------------------------------

    \3\ On July 12, 2005, the Commission approved the Weeklys
Program on a pilot basis. See Securities Exchange Act Release No.
52011 (July 12, 2005), 70 FR 41451 (July 19, 2005) (SR-CBOE-2004-
63). The Weeklys Program was made permanent on April 27, 2009. See
Securities Exchange Act Release No. 59824 (April 27, 2009), 74 FR
20518 (May 4, 2009) (SR-CBOE-2009-018).
    \4\ The Exchange previously increased the total number of series
per Weeklys option class from 7 to 20 series. See Securities
Exchange Act Release No. 58870 (October 28, 2008), 73 FR 65430
(November 3, 2008) (SR-CBOE-2008-110) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change to Short Term Series
Option Program).
---------------------------------------------------------------------------

    The Weeklys Program is codified in Rule 5.5 and 24.9. These rules
provide that after an option class has been approved for listing and
trading on the Exchange, the Exchange may open for trading on any
Thursday or Friday that is a business day series of options on no more
than fifteen option classes that expire on the Friday of the following
business week that is a business day. The strike price of each Weekly
option has to be fixed with approximately the same number of strike
prices being opened above and below the value of the underlying
security at about the time that the Weekly options are initially opened
for trading on the Exchange, and with strike prices being within thirty
percent (30%) above or below the closing price of the underlying
security from the preceding day. The Exchange is not proposing any
changes to these additional Weeklys Program limitations.
    The principal reason for the proposed expansion is market demand
for additional series in Weekly option classes in which the maximum
number of series (20) has already been reached. Specifically, the
Exchange has observed increased demand for more series when market
moving events, such as corporate events and large price swings, have
occurred during the life span of an affected Weekly option class.
Currently, in order to be able to respond to market demand, the
Exchange is forced to delete or delist certain series in order to make
room for more in demand series.\5\ The Exchange finds this method to be
problematic for two reasons.
---------------------------------------------------------------------------

    \5\ The Exchange deletes series with no open interest and
delists series with open interest if those series are open for
trading on another exchange.
---------------------------------------------------------------------------

    First, the Exchange has received requests to keep series that it
intends to delete/delist to make room for more in demand series. While
market participants may access other markets for the deleted/delisted
series, the Exchange would prefer to provide market participants with
their preferred choice of markets to trade--CBOE. Second, this method
can lead to competitive disadvantages among exchanges. If one exchange
is actively responding to market demand by deleting/delisting and
adding series, if another exchange is the last to list the less
desirable series with open interest, that exchange is stuck with those
series and unable to list the in demand series (because to do so would
result in more than 20 series being listed on that exchange). As a
result, the maximum number of series per class of options that
participates in the Weeklys Program should be increased to 30 so that
exchanges can list the full panoply of series that other exchange list
and which the market demands.
    To affect this change, the Exchange is proposing to amend Rule 5.5
and 24.9. Specifically, the Exchange is proposing to limit the initial
number of series that may be opened for trading to 20 series and to
limit the number of additional series that may be opened for trading to
10 series.\6\
---------------------------------------------------------------------------

    \6\ Series must be added pursuant to the existing listing
parameters set forth in Rule 5.5 and 24.9. Initial series shall be
within 30% above or below the closing price of the underlying
security on the preceding day. Any additional strike prices listed
by the Exchange shall be within thirty percent (30%) above or below
the current price of the underlying security. The Exchange may also
open additional strike prices of Short Term Option Series that are
more than 30% above or below the current price of the underlying
security provided that demonstrated customer interest exists for
such series, as expressed by institutional, corporate or individual
customers or their brokers. Market-Makers trading for their own
account shall not be considered when determining customer interest.
---------------------------------------------------------------------------

    With regard to the impact of this proposal on system capacity, the
Exchange has analyzed its capacity and represents that it and the
Options Price Reporting Authority (``OPRA'') have the necessary systems
capacity to handle the potential additional traffic associated with
trading of an expanded number of series for classes that participate in
the Weeklys Program.
    The Exchange believes that the Weeklys Program has provided
investors with greater trading

opportunities and flexibility and the ability to more closely tailor
their investment and risk management strategies and decisions.
Therefore, the Exchange requests a modest expansion of the current
Weeklys Program.
    It is expected that other options exchanges that have adopted a
Weeklys Program will submit similar proposals.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) \7\ of the Act and the rules and regulations under
the Act, in general, and furthers the objectives of Section 6(b)(5),\8\
in particular, in that it 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 facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system, and, in general, to protect
investors and the public interest. The Exchange believes that expanding
the number of series per option class eligible to participate in the
Weeklys Program will allow the investing public and other market
participants to better manage their risk exposure, and would benefit
investors by giving them more flexibility to closely tailor their
investment decisions in a greater number of securities. While the
expansion of the Weeklys Program will generate additional quote
traffic, the Exchange does not believe that this increased traffic will
become unmanageable since the proposal is limited to a fixed number of
series per class. Further, the Exchange does not believe that the
proposal will result in a material proliferation of additional series
because it is limited to a fixed number of series per class and the
Exchange does not believe that the additional price points will result
in fractured liquidity.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition 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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (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 self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2011-086 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2011-086. 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of CBOE. 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 publicly available. All
submissions should refer to File Number SR-CBOE-2011-086 and should be
submitted on or before October 27, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-25793 Filed 10-5-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 185 (Tuesday, September 26, 2023)]
[Notices]
[Pages 66111-66114]
[FR Doc No: 2023-20808]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98450; File No. SR-ISE-2023-08]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Granting
Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To
Make Permanent Certain P.M.-Settled Pilots

September 20, 2023.

I. Introduction

    On February 23, 2023, Nasdaq ISE LLC (``ISE'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
make permanent the pilot program to permit the listing and trading of
options based on \1/5\ the value of the Nasdaq-100 Index (``Nasdaq-
100'') and the Exchange's nonstandard expirations pilot program
(collectively, the ``Programs''). The proposed rule change was
published for comment in the Federal Register on March 2, 2023.\3\ On
April 7, 2023, pursuant to section 19(b)(2) of the Act,\4\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ On May 11, 2023, the Exchange filed Amendment No. 1 to the
proposed rule change (``Amendment No. 1'').\6\ On May 31, 2023, the
Commission instituted proceedings to determine whether to approve or
disapprove the proposed rule change and published Amendment No. 1 for
notice and comment.\7\ On August 28, 2023, the Commission designated a
longer period for Commission action on proceedings to determine whether
to approve or disapprove the proposed rule change, as modified by
Amendment No. 1.\8\ The Commission did not receive any comment letters
and is approving the proposed rule change, as modified by Amendment No.
1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 96979 (February 24,
2023), 88 FR 13182 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 97261, 88 FR 22509
(April 13, 2023). The Commission designated May 31, 2023, as the
date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to approve or disapprove,
the proposed rule change.
    \6\ In Amendment No. 1, the Exchange inserts two footnotes and
amends a sentence in order to further clarify parts of the empirical
analysis performed by the Exchange. Amendment No. 1 is available at:
https://www.sec.gov/comments/sr-ise-2023-08/srise202308.htm.
    \7\ See Securities Exchange Act Release No. 97626, 88 FR 37110
(June 6, 2023).
    \8\ See Securities Exchange Act Release No. 98233, 88 FR 60516
(September 1, 2023). The Commission designated October 28, 2023, as
the date by which the Commission shall either approve or disapprove
the proposed rule change.
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II. Background

    When cash-settled \9\ index options were first introduced in the
1980s, they generally utilized closing-price settlement procedures
(i.e., p.m. settlement).\10\ The Commission became concerned with the
impact of p.m.-settled, cash-settled index options on the underlying
cash equities markets, and in particular, added market volatility and
sharp price movements near the close on expiration days.\11\ These
concerns were heightened during the ``triple-witching'' hour on the
third Friday of March, June, September, and December when index
options, index futures, and options on index futures expired
concurrently.\12\ Academic research at the time provided at least some
evidence suggesting that futures and options expirations contributed to
excess volatility and reversals around the close on those days.\13\
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    \9\ The seller of a ``cash-settled'' index option pays out the
cash value of the applicable index on expiration or exercise. A
``physical delivery'' option, like equity and ETF options, involves
the transfer of the underlying asset rather than cash. See
Characteristics and Risks of Standardized Options, available at:
https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document.
    \10\ See Securities Exchange Act Release No. 65256 (September 2,
2011), 76 FR 55969, at 55972 (September 9, 2011) (SR-C2-2011-008)
(Order approving proposed rule change to establish a pilot program
to list and trade SPXPM options on the C2 Options Exchange,
Incorporated) (``C2 SPXPM Approval'').
    \11\ See id.
    \12\ See id.
    \13\ See Securities and Exchange Commission, Division of
Economic Risk and Analysis, Memorandum dated February 2, 2021 on
Cornerstone Analysis of PM Cash-Settled Index Option Pilots
(September 16, 2020) (``Pilot Memo'') at 5, available at: https://www.sec.gov/files/Analysis_of_PM_Cash_Settled_Index_Option_Pilots.pdf (citing, among
other papers, Stoll, Hans R., and Robert E. Whaley, ``Expiration day
effects of index options and futures,'' Monograph Series in Finance
and Economics, no. 3 (1986)).
---------------------------------------------------------------------------

    In light of the concerns with p.m. settlement and to help
ameliorate the price effects associated with expirations

of p.m.-settled, cash-settled index products, in 1987, the Commodity
Futures Trading Commission approved a proposed rule change by the
Chicago Mercantile Exchange (``CME'') to provide for a.m. settlement
\14\ for index futures, including futures on the S&P 500 Index.\15\ The
Commission subsequently approved a proposed rule change by Cboe Options
Exchange (``Cboe Options'') to list and trade a.m.-settled options on
the S&P 500 Index.\16\ In 1992, the Commission approved Cboe Options'
proposal to transition all of its European-style cash-settled options
on the S&P 500 Index to a.m. settlement.\17\ However, in 1993, the
Commission approved a proposed rule change allowing Cboe Options to
list p.m.-settled options on certain broad-based indexes, including the
S&P 500, expiring at the end of each calendar quarter (since approved
as permanent).\18\ Starting in 2006, the Commission approved a number
of proposals, on a pilot basis, permitting Cboe Options to introduce
other index options with p.m.-settlement. These include p.m.-settled
index options expiring weekly (other than the third Friday) and at the
end of each month,\19\ as well as p.m.-settled S&P 500 Index options
and Mini-S&P 500 Index options expiring on the third Friday of the
month.\20\
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    \14\ The exercise settlement value for an a.m.-settled index
option is determined by reference to the reported level of the index
as derived from the opening prices of the component securities on
the business day before expiration.
    \15\ See Proposed Amendments Relating to the Standard and Poor's
500, the Standard and Poor's 100 and the Standard Poor's OTC Stock
Price Index Futures Contract, 51 FR 47053 (December 30, 1986)
(notice of proposed rule change from the CME). See also Securities
Exchange Act Release No. 24367 (April 17, 1987), 52 FR 13890 (April
27, 1987) (SR-CBOE-87-11) (noting that the CME moved the S&P 500
futures contract's settlement value to opening prices on the
delivery date).
    \16\ See Securities Exchange Act Release No. 24367 (April 17,
1987), 52 FR 13890 (April 27, 1987) (SR-CBOE-87-11).
    \17\ See Securities Exchange Act Release No. 30944 (July 21,
1992), 57 FR 33376 (July 28, 1992) (SR-CBOE-92-09). The Commission
also approved proposals by other options markets to transfer most of
their cash-settled index products to a.m. settlement. See, e.g.,
Securities Exchange Act Release No. 25804 (June 15, 1988), 53 FR
23475 (June 22, 1988) (SR-NYSE-87-11 and 88-04).
    \18\ See Securities Exchange Act Release No. 31800 (February 1,
1993), 58 FR 7274 (February 5, 1993) (SR-CBOE-92-13). See also
Securities Exchange Act Release Nos. 54123 (July 11, 2006), 71 FR
40558 (July 17, 2006) (SR-CBOE-2006-65); and 60164 (June 23, 2009),
74 FR 31333 (June 30, 2009) (SR-CBOE-2009-029).
    \19\ See Securities Exchange Act Release Nos. 62911 (September
14, 2010), 75 FR 57539 (September 21, 2010) (SR-CBOE-2009-075);
76529 (November 30, 2015), 80 FR 75695 (December 3, 2015) (SR-CBOE-
2015-106); and 78531 (August 10, 2016), 81 FR 54643 (August 16,
2016) (SR-CBOE-2016-046).
    \20\ See Securities Exchange Act Release Nos. 68888 (February 8,
2013), 78 FR 10668 (February 14, 2013) (SR-CBOE-2012-120); and 70087
(July 31, 2013), 78 FR 47809 (August 6, 2013) (SR-CBOE-2013-055).
---------------------------------------------------------------------------

    Subsequently, other exchanges, including ISE, sought to permit the
listing and trading of p.m.-settled options on certain broad-based
indices. In February 2018, the Commission approved ISE's nonstandard
expirations pilot program on a pilot basis (``Nonstandard Pilot'').\21\
In March 2018, the Commission approved ISE's pilot to permit the
listing and trading of options based on the Nasdaq 100 Reduced Value
Index (``NQX'' or ``NQX options'') on a pilot basis (``NQX
Pilot'').\22\ In the course of approving both Programs, the Commission
reiterated its concern about the potential impact on the market at
expiration for the underlying component stocks for a p.m.-settled,
cash-settled index option.\23\ However, the Commission also recognized
the potential impact was unclear.\24\ The Commission approved the
Programs on a pilot basis to allow the Exchange and the Commission to
monitor for and assess any potential for adverse market effects.\25\ In
order to facilitate this assessment, the Exchange committed to provide
the Commission with data and analysis for each pilot \26\ and to make
such data publicly available.\27\ In addition to the Exchange's data
and analysis, Cornerstone Research also conducted an analysis at the
direction of Staff from the Commission's Division of Economic and Risk
Analysis. The analysis utilizes the level of expiring p.m.-settled
index options open interest and the measures of volatility and price
reversals for the corresponding index futures, the underlying cash
index, and index component securities in the minutes leading up to and
immediately following the market close to study the effects of pilot
programs allowing p.m.-settled index options. The Pilot Memo is
discussed in more detail below.
---------------------------------------------------------------------------

    \21\ See Securities Exchange Act Release No. 92612 (February 1,
2018), 83 FR 5470 (February 7, 2018) (SR-ISE-2017-111)
(``Nonstandard Approval Order''). The Commission subsequently
approved a proposed rule change to amend the Program to allow the
Exchange to also list p.m.-settled Tuesday and Thursday expirations
on the Nasdaq-100. See Securities Exchange Act Release No. 95393
(July 29, 2022), 87 FR 47807 (August 4, 2022) (SR-ISE-2022-13).
    \22\ See Securities Exchange Act Release No. 82911 (March 20,
2018), 83 FR 12966 (March 26, 2018) (SR-ISE-2017-106) (``NQX
Approval Order'').
    \23\ See Nonstandard Approval Order, 83 FR at 5472 and NQX
Approval Order 83 FR at 12967. See also Securities Exchange Act
Release Nos. 64599 (June 3, 2011), 76 FR 33798, 33801-02 (June 9,
2011) (order instituting proceedings to determine whether to approve
or disapprove a proposed rule change to allow the listing and
trading of SPXPM options); C2 SPXPM Approval, 76 FR at 55972-76; and
68888 (February 8, 2013), 78 FR 10668, 10669 (February 14, 2013)
(order approving the listing and trading of SPXPM on Cboe Options).
    \24\ See NQX Approval Order, 83 FR at 12967.
    \25\ See NQX Approval Order, 83 FR at 12967 and Nonstandard
Approval Order, 83 FR at 5473.
    \26\ See NQX Approval Order, 83 FR at 12966-12967 and
Nonstandard Approval Order, 83 FR at 5471-5472.
    \27\ See, e.g., Securities Exchange Act Release Nos. 85672
(April 17, 2019), 84 FR 16899, at 16899 (April 23, 2019) (SR-ISE-
2019-11) (stating the Exchange will make public on its website any
data and analysis it submits to the Commission under the Nonstandard
Pilot); and 86071 (June 10, 2019) 84 FR 27822, at 27823 (June 14,
2019) (SR-ISE-2019-18) (stating the Exchange is making public on its
website data and analysis previously submitted to the Commission
under the NQX Pilot and committing to make public any data or
analyses submitted in the future).
---------------------------------------------------------------------------

III. Description of the Proposal, as Modified by Amendment No. 1

    The Exchange proposes to make permanent the Nonstandard Pilot and
the NQX pilot. The Nonstandard Pilot permits the Exchange to open p.m.-
settled options on broad-based indexes that expire (1) on the last day
of the trading month (``EOM expirations'') and (2) on any Monday,
Wednesday, or Friday (other than the third Friday-of-the-month or days
that coincide with an EOM expiration) and, with respect to options on
the Nasdaq-100 (``NDX'' or ``NDX options''), any Tuesday or Thursday
(other than days that coincide with the third Friday-of-the-month or an
EOM expiration). The NQX Pilot permits the listing of NQX options,
which are European-style and cash-settled, and have a contract
multiplier of 100. The contract specifications for NQX options mirror
those of the NDX options contract listed on the Exchange, except that
NQX options are based on \1/5\ of the value of the Nasdaq-100, and are
p.m.-settled pursuant to Options 4A, section 12(a)(6) of the ISE Rules.
    The Nonstandard Pilot was extended on multiple occasions, including
recently, and is set to expire on November 6, 2023.\28\ Similarly, the
NQX Pilot was extended on multiple occasions and is set to expire on
November 6, 2023.\29\
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    \28\ See Securities Exchange Act Release No. 97386 (April 26,
2023), 88 FR 27545, at 27546-27547 (May 2, 2023) (SR-ISE-2023-09)
(``Programs Extension'').
    \29\ See id.
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    The Exchange states it has provided pilot data to the Commission
with respect to the Programs, pursuant to the Nonstandard Approval
Order and the NQX Approval order.\30\ The Exchange

also states it provides ongoing monthly data in addition to the data
provided in the Notice.\31\ Now, the Exchange proposes to make the
Programs permanent.
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    \30\ See Notice, 88 FR at 13197. The Exchange has made public on
its website data and analyses previously submitted to the Commission
under the Programs. See http://www.nasdaqtrader.com/Trader.aspx?id=currentregulatory.
    \31\ See Programs Extension, 88 FR at 27546-27547.
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IV. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\32\ In particular, the Commission finds that the
proposed rule change, as modified by Amendment No. 1, is consistent
with section 6(b)(5) of the Act,\33\ which requires, among other
things, that the Exchange's rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest. In its proposal
to make the Programs permanent, the Exchange addressed market capacity
around the market close and provided an empirical assessment of the
impact of its p.m.-settled index options on options market quality.
Each of these elements is discussed in greater detail below. As stated
above, no comments were received on the proposed rule change.
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    \32\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \33\ 15 U.S.C. 78f(b)(5).
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Market Impact Considerations

    The Exchange's analysis presents data that the introduction of
p.m.-settlement is correlated with an increase in options trading tied
to the Nasdaq-100.\34\ The data shows an increase in trading volume and
notional open interest for NDX and NQX options during the sample
period.\35\
---------------------------------------------------------------------------

    \34\ See Notice, 88 FR at 13184.
    \35\ See id.
---------------------------------------------------------------------------

    In addition to reviewing the data and analysis provided by the
Exchange, the Commission reviewed the analysis in the Pilot Memo, which
evaluates whether higher levels of expiring open interest in p.m.-
settled index options results in increased volatility and price
reversals around the close. The Pilot Memo shows that the market share
for p.m.-settled options, in particular options on S&P 500 Index, has
grown substantially since 2007.\36\ The Pilot Memo examines whether and
to what extent expiring open interest in p.m.-settled index options is
empirically related with the tendency of the corresponding index
futures, the underlying index, or index components to experience
increased transitory volatility and price reversals around the time of
market close on expiration dates. The Pilot Memo concludes that,
although expiring p.m.-settled index option open interest may have a
statistically significant relationship with volatility and price
reversals of the underlying index, index futures, and index component
securities around the market close, the magnitude of the effect is
economically very small.\37\ For example, the largest settlement event
that occurred during the time period studied in the Pilot Memo (a
settlement of $100.4 billion of notional on December 29, 2017) had an
estimated impact on the futures price of only approximately 0.02% (a
predicted impact of $0.54 relative to a closing futures price of
$2,677).\38\
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    \36\ See Pilot Memo at 2. The Pilot Memo also examined options
on the Russell 2000 Index and the Nasdaq-100. However, during the
time period covered by the study (2007-2018), the markets for both
a.m.- and p.m.-settled options on these indexes were very small
compared to the size of that for S&P 500 Index options. In addition,
because p.m.-settled NDX options were only introduced in 2018, the
number of observations for NDX options was much smaller than for
other indexes. See id. at 4.
    \37\ See id. at 3.
    \38\ See id.
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    In order to analyze the effect of a very large increase in
settlement volume for Nasdaq-100 p.m.-settled options contracts, the
Exchange uses the estimated regression coefficients in the Pilot Memo
to estimate the change in the volatility of index futures prices when
settlement volume increased from the 25th percentile to the 75th
percentile.\39\ For both the S&P 500 Index and the Nasdaq-100, the
Exchange estimates the relative impact would be small for both
indexes.\40\
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    \39\ See Notice, 88 FR at 13195.
    \40\ See id.
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    The Exchange also provides additional analysis on market capacity
around the market close.\41\ Specifically, the Exchange presents data
that the closing auction volume on the equity market have become much
larger than the opening auction, which may indicate that there is
sufficient liquidity in closing auctions to absorb liquidity demand
associated with p.m.-settlement of NDX and NQX options.\42\ In
addition, the Exchange states that the liquidity available at or around
the close would be able to mitigate any excess volatility created by
the options settlement at the market close.\43\
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    \41\ See id. at 13195-13196.
    \42\ See id. at 13196.
    \43\ See id.
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    Further, the Exchange represents that it has sufficient systems
capacity to handle p.m.-settled options on broad-based indexes with
nonstandard expirations dates and has not encountered any issues or
adverse market effects as a result of listing them.\44\
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    \44\ See Notice, 88 FR at 13197.
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Market Quality Considerations

    The Exchange also completed an analysis intended to evaluate
whether the Programs impacted the quality of the NDX options market.
Specifically, the Exchange presents findings on three market
characteristics: trading volume, open interest, and spreads. The
Exchange concludes that there is no evidence that NDX and NQX options
contracts, which are p.m.-settled, would result in reduced trading
activity or degradation in market quality of the a.m.-settled index
options.\45\ The Exchange notes within its analysis that it seems
unlikely that the introduction of NQX option contracts had a
significant impact on the market quality of the full-sized NDX option
contracts.\46\
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    \45\ See id. at 13184.
    \46\ The Exchange states that given that the size of the market
(measured in volume) for NQX options volume is small compared to
that of other p.m.-settled NDX options, the Exchange believes the
introduction of NQX option contracts is unlikely to adversely impact
the market quality of a.m.-settled NDX options. See Amendment No. 1,
supra note 6.
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    Further, the Exchange observed a consistent decrease in relative
quoted spread from 2017 to 2022 for NDX options.\47\ When the Exchange
compared the spread trend of NDX monthly contracts to that of QQQ
monthly contracts, the Exchange states that the results suggest that
there is gradual decrease in both the NDX monthly contracts spread and
the QQQ contracts spread during the sample period.\48\ The Exchange
uses duration weighted relative quoted spread as a measure of the cost
of trading and examines whether the introduction of p.m.-settled index
options results in any deterioration of spreads for am-settled NDX
options.\49\ The Exchange finds a consistent decrease in the relative
quoted spread is prevalent from 2017 to 2022 and no obvious change in
the trend following the introduction of p.m.-settled index options.\50\
The analysis also considered whether the move from a.m. settlement to
p.m. settlement for Friday weekly expirations

(other than third-Friday-of-the-month) led to changes in spreads for
those contracts.\51\ The sample timeframe was from July 2017 through
August 2018.\52\ The relative quoted spread decreased during first part
of 2018 and increase in May and June 2018; however, it remained
comparable to the 2017 average.\53\ Overall, the Exchange observes no
evidence of deterioration of spreads associated with the introduction
of p.m.-settled NDX options.\54\
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    \47\ See Notice, 88 FR at 13191.
    \48\ See id. at 13192, 13197.
    \49\ See id. at 13190-13191.
    \50\ See id.
    \51\ See id. at 13194.
    \52\ See id. The Exchange used a regression analysis to test
whether the spread of NDX contracts changed after the introduction
of p.m.-settled index options. See id. The regression model is meant
to study the effect of the introduction of Friday p.m.-settled NDX
options expirations (on all but the third Friday of the month) that
occurred in January 2018. See Amendment No. 1, supra note 6.
    \53\ See Notice, 88 FR at 13194.
    \54\ See id.
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    The Commission believes that the evidence contained in the
Exchange's filing, the Exchange's pilot data and reports, and the Pilot
Memo analysis demonstrate that the Programs have benefitted investors
and other market participants by providing more flexible trading and
hedging opportunities while also having no disruptive impact on the
market. The market for p.m.-settled options has grown in size over the
course of the Programs, and analysis of the pilot data did not identify
any significant economic impact on the underlying component securities
surrounding the close as a result of expiring p.m.-settled options nor
did it indicate a deterioration in market quality (as measured by
relative quoted spreads) for an existing product when a new p.m.-
settled expiration was introduced. Further, significant changes in
closing procedures in the decades since index options moved to a.m.
settlement may also serve to mitigate the potential impact of p.m.-
settled index options on the underlying cash markets.
    Accordingly, the Commission finds that the proposed rule change, as
modified by Amendment No. 1, is consistent with section 6(b)(5) of the
Act \55\ and the rules and regulations thereunder applicable to a
national securities exchange.
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    \55\ 15 U.S.C. 78f(b)(5).
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V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\56\ that the proposed rule change (SR-ISE-2023-08), as modified by
Amendment No. 1, be, and hereby is, approved.
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    \56\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\57\
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    \57\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-20808 Filed 9-25-23; 8:45 am]
BILLING CODE 8011-01-P