[Federal Register Volume 84, Number 34 (Wednesday, February 20, 2019)]
[Rules and Regulations]
[Pages 4987-4991]
[FR Doc No: 2019-02748]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0505; Product Identifier 2017-NE-15-AD; Amendment
39-19472; AD 2018-21-14]
RIN 2120-AA64

Airworthiness Directives; Zodiac Aerotechnics Oxygen Mask
Regulators

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Zodiac Aerotechnics (Zodiac) oxygen mask regulators. This AD was
prompted by reports that certain silicon harness inflation hoses
installed on certain flight crew quick donning mask harnesses have
shown an unusually high premature rupture rate. This AD requires
inspection and replacement of certain oxygen mask regulator harness
inflation hoses. We are issuing this AD to address the unsafe condition
on these products.

DATES: This AD is effective March 27, 2019.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of March 27,
2019.

ADDRESSES: For service information identified in this final rule,
contact Zodiac Aerotechnics, 61 rue Pierre Curie BP 1, 78373 Plaisir,
CEDEX, France; phone: +33 1 6486 6964; email:
<EMAIL_ADDRESS>or
<EMAIL_ADDRESS>You may view this service information
at the FAA, Engine & Propeller Standards Branch, 1200 District Avenue,
Burlington, MA 01803. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available on the
internet at http://www.regulations.gov by searching for and locating
Docket No. FAA-2017-0505.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0505; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, the mandatory continuing airworthiness information
(MCAI), the regulatory evaluation, any comments received, and other
information. The address for Docket Operations (phone:<PHONE_NUMBER>) is
U.S. Department of Transportation, Docket Operations, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Erin King, Aerospace Engineer, Boston
ACO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone 781-
238-7655; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain Zodiac oxygen mask
regulators. The NPRM published in the Federal Register on September 25,
2017 (82 FR 44539). The NPRM was prompted by reports that certain
silicon harness inflation hoses installed on certain flight crew quick
donning mask harnesses have shown an unusually high premature rupture
rate. The NPRM proposed to require an inspection and replacement of
oxygen mask regulator harness inflation hoses. We are issuing this AD
to address the unsafe condition on these products.
    The European Union Aviation Safety Agency (EASA), which is the
Technical Agent for the Member States of the European Community, has
issued EASA AD 2014-0142, Revision 01, dated June 11, 2014 (referred to
after this as ``the MCAI''), to address the unsafe condition on these
products. The MCAI states:

    Recent reported occurrences have shown that for harness hoses P/
N 445952, installed on certain flight crew quick donning mask
harnesses (also known as `comfort' harness) having P/N MXH21-1,
suspected silicon batches may have been used during manufacture,
which have shown an unusually high premature rupture rate. The
affected P/N MXH21-1 inflatable harness assembly consists of two
main parts that can be disassembled; the harness itself and the
harness inflation hose, P/N 445952.
    This condition, if not detected and corrected, could lead, in
case of a sudden depressurization event, to a harness rupture,
thereby providing inadequate protection against hypoxia of the
affected flight crew member, possibly resulting in unconsciousness
and consequent reduced control of the aeroplane.

    You may obtain further information by examining the MCAI in the AD
docket on the internet at http://www.regulations.gov by searching for
and locating Docket No. FAA-2017-0505.

Comments

    We gave the public the opportunity to participate in developing
this final rule. The following presents the comments received on the
NPRM and the FAA's response to each comment.

Comment To Figure Reference in Service Information

    NetJets Aviation, Inc. (NetJets) commented that Accomplishment
Instructions, paragraph 3.A.(1) of Zodiac Aerospace Service Bulletin
(SB) MC10-35-274, Revision 02, dated June 25, 2014, references Figure
3; however, there are only Figures 1 and 2 in this SB.
    We agree that Zodiac Aerospace SB MC10-35-274, Revision 02, dated
June 25, 2014, references Figure 3 in error. The FAA, however, is not
responsible for administrative errors in SBs. We did not change this
AD.

Request To Revise Part for Installation Eligibility

    American Airlines (AA) requested that we revise the phrase in
paragraph (h)(2) of the NPRM from ``inflatable harness assembly'' to
``crew oxygen mask regulator.'' AA reasoned that paragraph 1.A.(1) of
Zodiac Aerospace SB MC10-35-274, Revision 02, dated June 25, 2014,
includes both the inflatable harness assembly part numbers (P/Ns) as
well as the crew oxygen mask regulator P/Ns. The intent is to check the
crew oxygen mask regulator for installation eligibility.
    We agree. We revised the paragraphs in this AD that refer to parts
eligible for installation as the ``crew oxygen mask regulator.''

Request To Add Credit for Previous Actions Paragraph

    AA and NetJets requested that we add a Credit For Previous Actions
paragraph to this AD. AA asked that we give credit for actions required
by this AD if those actions were performed before the effective date of
this AD using Zodiac Aerospace SB MC10-35-274, Revision 01, dated April
18, 2014, or Original Issue, dated March 19, 2014. NetJets asked that
in addition to the SBs mentioned above, we also give credit for using
EASA AD 2014-0142, Revision 01, dated June 11, 2014, to accomplish the
actions required by this AD. AA reasoned that EASA AD 2014-0142,
Revision 01, dated June 11, 2014, allows for compliance with earlier
revisions of the service information.
    We partially agree. We agree to give credit for accomplishing the
required actions if operators used Zodiac Aerospace SB MC10-35-274,
Revision 01, dated April 18, 2014, or Zodiac Aerospace SB MC10-35-274,
Original Issue, dated March 19, 2014, because this meets the intended
safety requirements of this AD. We added a Credit For Previous Actions
paragraph to this AD.
    We disagree with revising the AD to allow for previous credit for
performing EASA AD 2014-0142, Revision 01, dated June 11, 2014, because
this is not necessary and is inconsistent with how we draft ADs.

Request To Clarify the Oxygen Mask Regulator Prohibition

    AA, NetJets, and United Airlines (United) requested clarification
regarding the oxygen mask regulator prohibition in the Installation
Prohibition paragraph of this AD. The commenters reasoned that
paragraph (h)(1), as proposed in the NPRM, prohibited the installation
of certain oxygen mask regulators; whereas, paragraphs (h)(2) and (3)
in the NPRM describe criteria that allow installation. AA requested
that we remove paragraph (h)(1) of this AD. NetJets requested
clarification and possible rewording of paragraph (h)(1) of this AD.
United suggested rewording and reformatting of paragraph (h)(1) of this
AD.
    We partially agree. We agree that we need to clarify this AD to
more clearly describe when a flight crew oxygen mask regulator is
eligible for installation. We revised the Installation Prohibition
paragraph by moving paragraphs (h)(2) and (3) into a Definition
paragraph. We also revised paragraph (h)(1) of the NPRM, now paragraph
(h) in the final rule, to allow the installation of certain oxygen mask
regulators when they meet the criteria specified in paragraph (i)(1) of
this AD.
    We disagree with removing paragraph (h)(1) from this AD (paragraph
(h) in the final rule) because oxygen mask regulators with a P/N listed
in Paragraph 1.A.(1) of Zodiac Aerospace SB MC10-35-274, Revision 02,
dated June 25, 2014, cannot be installed unless they meet the criteria
specified in paragraph (i), Definition, of this AD.

Request To Remove Hose Part Numbers

    United requested that we clarify references to specific harness
inflation hose P/Ns in the Applicability paragraph, paragraph (c), and
the Required Actions paragraph, specifically paragraphs (g)(2) and (3),
of this AD. United noted that these P/Ns are not identified on the
inflation harness assemblies after the hoses are installed on a crew
oxygen mask assembly. United reasoned that although detailed shop
records would likely itemize the hose P/Ns, they are unaware of any
parts `data plate' or `data tag' on the inflation harness assemblies
that identify the hose P/Ns after they are installed on a crew oxygen
mask assembly.
    We partially agree. We agree that the hose P/Ns are not required in
the Applicability paragraph of this AD. We revised the applicability,
paragraph (c), of this AD by removing the references to the
installation hose and its P/Ns.
    We disagree with removing the hose P/Ns from paragraphs (g)(2) and
(3) of this AD. Although the commenter correctly points out that there
is no data tag or data plate affixed to the hose, these P/Ns are useful
to operators who can determine the hose P/N. Additionally, identifying
the hose P/Ns in this AD is consistent with EASA AD 2014-0142, Revision
01, dated June 11, 2014.

Request To Increase the Compliance Time

    United and AA requested, respectively, that we increase the
compliance time from 24 months to 36 or to 48 months. The commenters
reasoned that operators experienced supply issues when trying to comply
with AD 2015-08-07 and many operators requested extensions to the
compliance time. The supply situation was worsened because some oxygen
mask regulator harnesses needed to be replaced because of illegible or
non-existent part marking.
    We partially agree. We agree to increase the compliance time to 36
months to ensure that suppliers can provide the parts because of the
possibility there will be supply issues. Zodiac has not been able to
determine inventory because they do not know the number of parts in use
by U.S. operators. Increasing the compliance time by 12 months still
meets the safety objectives of this AD. Our understanding from Zodiac
is that they recommend hose replacement every 72 months, and given that
all of the affected hoses were manufactured between 2008 and 2010, many
of the affected hoses likely have been removed from service.
    We disagree with increasing the compliance time to 48 months
because 36 months is sufficient to comply with the required actions of
this AD. Additionally, we do not want to extend, beyond a reasonable
time, the period for which suspect parts can remain on aircraft. We
revised paragraph (g)(1) of this AD to increase the compliance time to
36 months.

Request To Decrease the Compliance Time

    The Airline Pilots Association International (ALPA) requested that
the compliance time decrease from 24 months to 12 months. ALPA reasoned
that greater than 40 months have passed since EASA AD 2014-0142,
Revision 01, dated June 11, 2014, became effective. ALPA also noted
that the required time to comply with the AD is one work-hour. Based on
these factors the compliance time of this AD should be decreased to
minimize risk.
    We disagree. We note that operators may have difficulty obtaining
replacement parts within a shortened compliance time. Also, the
compliance time of 36 months after the effective date of this AD meets
the safety objectives of this AD. We did not change this AD.

Request To Remove the P/Ns That Are Not Eligible for the ``W'' Marking

    AA and United requested that we remove the reference to inflatable
harness assembly P/Ns that have been re-marked with a ``W'' from the
Installation Prohibition, of this AD. The commenters reasoned that
adding a ``W'' applies only to oxygen mask regulator assemblies that
have inflation harness assemblies, P/N MXH21-31, installed per Zodiac
Aerospace SB MA_B_C_F10-35-260, dated October 19, 2012, or later
revisions.
    We agree. When an oxygen mask is modified per Zodiac SB MA_B_C_F10-
35-260 and marked with a ``W,'' the P/N also changes to MXH21-31.
Therefore, only P/N MXH21-31 is marked with a ``W.'' Paragraph (h)(3)
of the NPRM incorrectly implied that P/N MXH20-1 and P/N MXH21-1 might
also be marked with a ``W.'' We revised this AD by removing the
reference to remarking P/Ns MXH20-1 and MXH21-1 with a ``W.''

Request To Include Inflatable Harness Assemblies Marked With an ``I''

    AA requested that we include inflatable harness assembly marked
with an ``I'' on the metal bushing to Required Actions, paragraph
(g)(3), of this AD. AA reasoned that inflatable harness assemblies with
an ``I'' on the metal bushings have been inspected and are not affected
by this AD.
    We agree. Based on paragraph 2.E. of Zodiac SB MC10-35-274,
Revision 02, dated June 25, 2014, marking an ``I'' on the metal bushing
of the inflatable harness indicates accomplishment of the SB. We have
revised paragraph (g)(3) of this AD to note that inflatable harness
assemblies with metal bushings marked with an ``I'' are not affected by
this AD.

Request To Delay the Installation Prohibition Start Time

    United requested that we add ``within 60 days of the effective date
of this AD'' to the Installation Prohibition of this AD to provide more
time before prohibiting the installation of the affected flight crew
oxygen mask regulators. United reasoned that immediately restricting
the installation of the affected regulators after the effective date of
this AD is a logistical challenge and can be counterproductive. United
is also concerned that material orders will be over abundantly placed
to compensate for not knowing the modification status of their mask
inventory. United believes that offsetting the start of a parts
installation prohibition period would not significantly increase the
risk.
    We disagree. Given the increased compliance time allowed in
paragraph (g)(1) of this AD, operators should have time to assess their
inventory and make accurate purchases to replace affected parts. It
would not be in the interest of safety to allow the period for which
suspect parts could remain on the aircraft to continue for any period
after this AD is published. We did not change this AD.

Conclusion

    We reviewed the relevant data, considered the comments received,
and determined that air safety and the public interest require adopting
this final rule with the changes described previously and minor
editorial changes. We have determined that these minor changes:
     [Agr]re consistent with the intent that was proposed in
the NPRM for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.
    We also determined that these changes will not increase the
economic burden on any operator or increase the scope of this final
rule.

Related Service Information Under 1 CFR Part 51

    We reviewed Zodiac Aerospace SB MC10-35-274, Revision 02, dated
June 25, 2014. The SB describes procedures for inspecting and
replacing, if necessary, oxygen mask regulator inflatable harnesses.
This service information is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects an unknown number of oxygen mask
regulators installed on, but not limited to, various aircraft of U.S.
registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
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                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Date of manufacturing code review.............  0.1 work-hours x $85 per hour =               $0           $8.50
                                                 $8.50.
Hose replacement..............................  0.3 work-hours x $85 per hour =         1,465.00        1,490.50
                                                 $25.50.
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Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness

Division, but during this transition period, the Executive Director has
delegated the authority to issue ADs applicable to engines, propellers,
and associated appliances to the Manager, Engine and Propeller
Standards Branch, Policy and Innovation Division.

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2018-21-14 Zodiac Aerotechnics (formerly Intertechnique): Amendment
39-19472; Docket No. FAA-2017-0505; Product Identifier 2017-NE-15-
AD.

(a) Effective Date

    This AD is effective March 27, 2019.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Zodiac Aerotechnics (Zodiac) MC10 series crew
oxygen mask regulators fitted with an inflatable harness assembly,
part number (P/N) MXH20-1 or MXH21-1.

(d) Subject

    Joint Aircraft System Component (JASC) Code 3510, Crew Oxygen
System.

(e) Unsafe Condition

    This AD was prompted by reports that certain silicon harness
inflation hoses installed on certain flight crew quick donning mask
harnesses (also known as `comfort' harness) have shown an unusually
high premature rupture rate. We are issuing this AD to prevent a
harness rupture during a sudden depressurization event. The unsafe
condition, if not addressed, could result in hypoxia and subsequent
unconsciousness of the affected flight crew member, and consequent
reduced control of the aircraft.

(f) Compliance

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

(g) Required Actions

    (1) Within 36 months after the effective date of this AD,
determine the date of manufacturing (DMF) code of each inflatable
harness assembly, P/N MXH20-1 and P/N MXH21-1, fitted to a flight
crew oxygen mask regulator, having a P/N listed in Planning
Information, paragraph 1.A.(1), of Zodiac Aerospace Service Bulletin
(SB) MC10-35-274, Revision 02, dated June 25, 2014. A review of
airplane delivery or maintenance records is acceptable to make the
determination as specified in this paragraph, provided those records
can be relied upon for that purpose, and the DMF of the inflatable
harness assembly, P/N MXH20-1 or P/N MXH21-1, as applicable, can be
conclusively identified from that review.
    (2) If during the review required by paragraph (g)(1) of this
AD, the DMF code of the inflatable harness assembly, P/N MXH20-1 or
P/N MXH21-1, is found to be between 0850-S and 1051-S (inclusive):
Within 36 months after the effective date of this AD, replace the
harness inflation hose, P/N 445186 or P/N 445952, as applicable,
with a part eligible for installation, or remove the inflatable
harness assembly from the mask regulator and replace it with an
inflatable harness assembly eligible for installation.
    (3) An oxygen mask regulator equipped with an inflatable harness
assembly, P/N MXH20-1 or P/N MXH21-1, having a DMF code of November
2008 (0845-S or 08/45-S) or earlier, and those with a DMF code of
January 2011 (1101-S or 11/01-S) or later, are excluded from the
requirements of this AD, provided it can be demonstrated that
neither the inflatable harness assembly, nor the harness inflation
hose, P/N 445186 or P/N 445952, as applicable, was replaced on that
mask. An oxygen mask regulator with an inflatable harness assembly,
P/N MXH20-1 or P/N MXH21-1, and with an inflatatable harness
assembly with a metal bushing that has been marked with an ``I'' is
also excluded from the requirements of this AD. A review of airplane
delivery or maintenance records is acceptable to make the
determination, provided those records can be relied upon for that
purpose.

(h) Installation Prohibition

    After the effective date of this AD, do not install on any
airplane a flight crew oxygen mask regulator with a P/N listed in
Planning Information, paragraph 1.A.(1), of Zodiac SB MC10-35-274,
Revision 02, dated June 25, 2014, unless it meets the definition of
a part eligible for installation in paragraph (i) of this AD.

(i) Definition

    (1) After the effective date of this AD, a part eligible for
installation is a crew oxygen mask regulator with:
    (i) A P/N identified in Planning Information, paragraph 1.A.(1),
of Zodiac Aerospace SB MC10-35-274, Revision 02, dated June 25,
2014, provided it has been determined that a P/N MXH20-1 or P/N
MXH21-1 inflatable harness installed on that crew oxygen mask
regulator has been inspected, and re-marked with an ``I'' as
required by Material Information, paragraph 2.E. of Zodiac Aerospace
SB MC10-35-274, Revision 02, dated June 25, 2014; or
    (ii) a P/N identified in Planning Information, paragraph
1.A.(1), of Zodiac Aerospace SB MC10-35-274, Revision 02, dated June
25, 2014, provided it has been determined that an inflatable
harness, P/N MXH21-31, is installed.
    (2) [Reserved]

(j) Credit for Previous Actions

    You may take credit for the inspection and replacement of the
oxygen mask regulator harness inflation hose required by paragraphs
(g)(1) and (2) of this AD, if you performed the inspection and
replacement using the Accomplishment Instructions, paragraph 3, of
Zodiac Aerospace SB MC10-35-274, Initial Issue, dated March 19,
2014, or Revision 01, dated April 18, 2014.

(k) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, FAA, Boston ACO Branch, Compliance and
Airworthiness Division, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. In
accordance with 14 CFR 39.19, send your request to your principal
inspector or local Flight Standards District Office, as appropriate.
If sending information directly to the manager of the ACO Branch,
send it to the attention of the person identified in paragraph
(l)(1) of this AD. You may email your request to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(l) Related Information

    (1) For more information about this AD, contact Erin King,
Aerospace Engineer, Boston ACO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>

    (2) Refer to European Union Aviation Safety Agency AD 2014-0142,
Revision 01, dated June 11, 2014, for more information. You may
examine the EASA AD in the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-
2017-0505.

(m) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Zodiac Aerospace Service Bulletin MC10-35-274, Revision 02,
dated June 25, 2014.
    (ii) [Reserved]
    (3) For service information identified in this AD, contact
Zodiac Aerotechnics, 61 rue Pierre Curie BP 1, 78373 Plaisir, CEDEX,
France; phone: +33 1 6486 6964; email:
<EMAIL_ADDRESS>or
<EMAIL_ADDRESS>    (4) You may view this service information at FAA, Engine &
Propeller Standards Branch, 1200 District Avenue, Burlington, MA
01803. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Burlington, Massachusetts, on February 13, 2019.
Robert J. Ganley,
Manager, Engine and Propeller Standards Branch, Aircraft Certification
Service.
[FR Doc. 2019-02748 Filed 2-19-19; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 118 (Thursday, June 19, 2014)]
[Notices]
[Page 35209]
[FR Doc No: 2014-14439]

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SECURITIES AND EXCHANGE COMMISSION

[File No. 500-1]

In the Matter of Crescent Banking Co., Data Storage Consulting
Services, Inc., First National Bancshares, Inc., Infosmart Group, Inc.,
Marco Community Bancorp, Inc., and Sun River Energy, Inc. (n/k/a New
River Exploration, Inc.); Order of Suspension of Trading

June 17, 2014
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Crescent Banking Co. because it has not filed any periodic reports
since the period ended March 31, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Data Storage Consulting Services, Inc. because it has not filed any
periodic reports since the period ended March 31, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
First National Bancshares, Inc. because it has not filed any periodic
reports since the period ended March 31, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Infosmart Group, Inc. because it has not filed any periodic reports
since the period ended March 31, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Marco Community Bancorp, Inc. because it has not filed any periodic
reports since the period ended June 30, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Sun River Energy, Inc. (n/k/a New River Exploration, Inc.) because it
failed to include the required audited financial statements for the
fiscal year ended April 30, 2011 in its Form 10-K for the period ended
April 30, 2012, and failed to file any periodic reports since it filed
a Form 10-Q for the period ended July 31, 2012.
    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 companies.
    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 companies is suspended for the period from 9:30 a.m. EDT
on June 17, 2014, through 11:59 p.m. EDT on June 30, 2014.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-14439 Filed 6-17-14; 4:15 pm]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Notices]
[Pages 12656-12658]
[FR Doc No: 2017-04205]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80121; File No. SR-MIAX-2017-09]

Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend MIAX Options Rule 519, MIAX Order Monitor

February 28, 2017.
    Pursuant to the provisions of 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 February 23, 2017, Miami International
Securities Exchange, LLC (``MIAX Options'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') a proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the Exchange. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 519, MIAX
Order Monitor.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.miaxoptions.com/rule-filings, at MIAX's
principal office, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 519, MIAX Order Monitor, to
clarify the behavior of the Order Size Protection functionality
(defined below) described in paragraph (b) and to make minor, non-
substantive changes to the rule as described below. The Exchange also
proposes to amend Rule 519 by removing the option for a Member \3\ to
disable the risk protection features described in paragraphs (b)-(d) of
the rule: Order Size Protection, Open Order Protection, and Open
Contract Protection, respectively, which are all defined below.
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    \3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
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    The MIAX Order Monitor is a risk management feature of the
Exchange's System.\4\ Pursuant to paragraph (b) of Rule 519, the MIAX
Order Monitor prevents certain orders from executing or being placed on
the Book \5\ if the size of the order exceeds the Order Size Protection
designated by the Member submitting the order (proposed ``Order Size
Protection'').\6\ If the maximum size of an order is not designated by
the Member, the Exchange will set a default maximum value which will be
determined by the Exchange and announced to Members through a
Regulatory Circular.\7\
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    \4\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
    \5\ The term ``Book'' means the electronic book of buy and sell
orders and quotes maintained by the System. See Exchange Rule 100.
    \6\ See Exchange Rule 519(b).
    \7\ The Exchange notes that the current default maximum order
size is 10,000 contracts.
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    Pursuant to paragraph (c) of Rule 519, the MIAX Order Monitor
rejects any orders that exceed the maximum number of open orders held
in the System on behalf of a particular Member (the ``Open Order
Protection'').\8\ If the maximum number of open orders is not
designated by the Member, the Exchange will set a default maximum value
which will be determined by the Exchange and announced to Members
through a Regulatory Circular.\9\
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    \8\ See Exchange Rule 519(c).
    \9\ The Exchange notes that the current default maximum number
of open orders is 30,000.
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    Pursuant to paragraph (d) of Rule 519, the MIAX Order Monitor
rejects any orders that cause the number of open contracts represented
by orders held in the System on behalf of a particular Member (the
``Open Contract Protection'') \10\ to exceed a specified maximum number
of contracts. If the maximum number of open contracts is not designated
by the Member, the Exchange will set a default maximum value which will
be determined by the Exchange and announced to Members through a
Regulatory Circular.\11\
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    \10\ See Exchange Rule 519(d).
    \11\ The Exchange notes that the current default maximum number
of open contracts is 1,000,000.
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    The Exchange also proposes to make minor, non-substantive changes
to paragraph (b) to make the language clear and consistent with the
remainder of the rule. The Exchange proposes to amend the heading of
paragraph (b) from ``Order Size Protections'' to ``Order Size
Protection'' to more accurately reflect the scope of the functionality.
Additionally, the Exchange proposes to change the rule text to more
accurately describe that the functionality operates on a per order
basis. The Exchange proposes to make clarifying changes to the second
sentence by changing the first occurrence of ``orders'' to ``an order''
and changing the second occurrence of ``orders'' to ``order'' and
placing it after the word ``maximum'' so the proposed revised sentence
would read, ``[i]f the maximum size of an order is not designated by
the Member, the Exchange will set a maximum order size on behalf of the
Member by default.'' The Order Size Protection operates on an order by
order basis, and the Exchange believes the revised language more
accurately describes the functionality.
    Additionally, the Exchange proposes to amend paragraph (b) to
eliminate the option for Members to disable the Order Size Protection.
The proposed sentence will read, ``[m]embers may designate the order
size protection on a firm wide basis.'' Should a Member fail to
designate an Order Size Protection value, the Exchange will apply a
default setting, which it will determine and announce to Members
through a Regulatory Circular.
    The Exchange also proposes to amend paragraph (c) to remove the
option for Members to disable the Open Order Protection. If a Member
does not designate an appropriate value, the Exchange will apply a
default value, which it will determine and announce to Members through
a Regulatory Circular.

    Finally, the Exchange proposes to amend paragraph (d) to remove the
option for Members to disable the Open Contract Protection. If a Member
does not designate an appropriate value, the Exchange will apply a
default value, which it will determine and announce to Members through
a Regulatory Circular.
    The proposed rule change is designed to protect market participants
by eliminating the option for Members to disable the Order Size
Protection, Open Order Protection, and Open Contract Protection
features of the MIAX Order Monitor. The proposed rule change ensures
that settings are in place, either provided by the Member or the
Exchange, that can be used to (i) avoid the potential submission of
erroneously sized orders to the Exchange (Order Size Protection), (ii)
prevent market participants from exceeding the number of open orders in
the System (Open Order Protection), or (iii) the number of open
contracts represented by orders in the System (Open Contract
Protection).
    In addition, the Exchange believes that clarifying the operation of
the Order Size Protection functionality will enable market participants
to better understand the risk protections available on the Exchange.
    The Exchange notes that some of its rules are incorporated by
reference by MIAX PEARL,\12\ and in addition, that MIAX Options and
MIAX PEARL have other rules in common. MIAX Options and MIAX PEARL also
have a number of common Members and where feasible the Exchange intends
to implement similar behavior of matching rules on each Exchange to
provide consistency between the Exchanges so as to avoid confusion
among Members. Aligning similar rules on MIAX Options and MIAX PEARL
provides transparency and clarity in the rules and minimizes the
potential for confusion, thereby protecting investors and the public
interest.
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    \12\ See MIAX PEARL Exchange Rules Chapter III, VII, VIII, IX,
XI, XIII, XIV, XV, and XVI.
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    The Exchange will announce the implementation date of the proposed
rule change by Regulatory Circular to be published no later than 60
days following the operative date of the proposed rule. The
implementation date will be no later than 60 days following the
issuance of the Regulatory Circular.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with
Section 6(b) of the Act \13\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \14\ 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, 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.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The proposed rule change is designed to protect investors and the
public interest by eliminating the option for market participants to
disable Order Size Protection, Open Order Protection, and Open Contract
Protection, which ensures either a value provided by the firm or a
default Exchange setting is used, to help market participants avoid the
potential submission of orders to the Exchange that would cause them to
be at unintended risk levels. The proposed rule change ensures that all
orders being submitted to the Exchange have risk protection settings in
place. Eliminating a market participant's ability to disable Order Size
Protection will help reduce the negative impacts of receiving an
erroneously sized order. Eliminating a market participant's ability to
disable Open Order and Open Contract Protections will ensure that risk
protections are in place to account for sudden, unanticipated
volatility in individual options, and will serve to preserve an orderly
market in a transparent and uniform manner, increase overall market
confidence, and promote fair and orderly markets and further the
protection of investors.
    The Exchange believes that all market participants will benefit
from the proposed change to the Rule. Market participants are
vulnerable to risks stemming from market events which may cause them to
send a large number of orders or receive multiple, automatic executions
before they can adjust their order exposure in the market. Without
adequate risk management tools, such as the MIAX Order Monitor, market
participants could reduce the amount of order flow and liquidity that
they provide to the market. Such actions may undermine the quality of
the markets available to customers and other market participants.
Accordingly, the proposed amendments to the MIAX Order Monitor should
instill additional confidence in market participants that submit orders
to the Exchange that there are adequate risk protections in place, and
thus should encourage market participants to submit additional order
flow to the Exchange, thereby removing impediments to and perfecting
the mechanisms of a free and open market and a national market system,
and in general, protecting investors and the public interest.
    In addition, the Exchange believes that the proposed amendment
removes impediments to and perfects the mechanisms of a free and open
market and a national market system and, in general, protects investors
and the public interest by helping to eliminate potential confusion on
behalf of market participants by clearly describing the Order Size
Protection functionality. Further, the Exchange believes that
clarifying the operation of the risk protections available on the
Exchange promotes the protection of investors and the public interest
by helping market participants avoid the potential submission and
subsequent execution of erroneously sized orders.
    Finally, the Exchange notes that some of its rules are incorporated
by reference by MIAX PEARL,\15\ and in addition, that MIAX Options and
MIAX PEARL have other rules in common. MIAX Options and MIAX PEARL also
have a number of common Members and where feasible the Exchange intends
to implement similar behavior of matching rules on each Exchange to
provide consistency between the Exchanges so as to avoid confusion
among Members. Aligning similar rules on MIAX Options and MIAX PEARL
provides transparency and clarity in the rules and minimizes the
potential for confusion, thereby protecting investors and the public
interest.
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    \15\ See supra note 12.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Specifically, the Exchange
believes the proposed changes will not impose any burden on intra-
market competition because it applies to all MIAX Options participants
equally. In addition, the Exchange does not believe the proposal will
impose any burden on inter-market competition as the proposal is
intended to protect investors by providing further transparency
regarding the MIAX Order Monitor feature.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \16\ and Rule 19b-4(f)(6) \17\
thereunder.
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR- MIAX-2017-09 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MIAX-2017-09. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-MIAX-2017-09 and should be
submitted on or before March 27, 2017.
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    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04205 Filed 3-3-17; 8:45 am]
BILLING CODE 8011-01-P