[Federal Register: July 15, 2009 (Volume 74, Number 134)]
[Notices]
[Page 34383-34385]
[DOCID:fr15jy09-131]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60262; File No. SR-NYSEArca-2009-63]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca
Equities Rules 7.31(x) and 7.31(kk)

July 8, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on July 2, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 proposes to amend NYSE Arca Equities Rule 7.31(x) and
7.31(kk) in order to amend the functionality of Primary Only Orders and
Primary Sweep Orders (collectively ``PO and PSO orders'') routed to the
New York Stock Exchange LLC (``NYSE'') [sic] The text of the proposed
rule change is attached as Exhibit 5 to the 19b-4 form. A copy of this
filing is available on the Exchange's Web site at http://www.nyse.com,
at the Exchange'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 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 Exchange proposes to amend NYSE Arca Equities Rule 7.31(x) and
7.31(kk) to offer Users \4\ additional execution opportunities for
their PO and PSO orders routed to the NYSE. Currently, if PO or PSO
orders routed to the NYSE are not marked immediate-or-cancel (``IOC''),
the orders are not returned to the entering party but remain at the
NYSE, until executed or cancelled. For PO and PSO orders routed to the
NYSE, this executed or cancelled functionality is accomplished by
marking the order as Do-Not-Ship (``DNS''), a designation specific to
the NYSE, which according to NYSE rules, prevents the NYSE from routing
the order to away market centers.\5\ The Exchange proposes to offer
Users the opportunity to override this DNS designation on PO and PSO
orders routed to the NYSE. Where Users choose to override the DNS
designation, PO and PSO orders routed to the NYSE will remain at the
NYSE until executed, routed away, or cancelled.
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    \4\ NYSE Arca Equities Rule 1.1(yy). The term ``User'' shall
mean any ETP Holder or Sponsored Participant who is authorized to
obtain access to the NYSE Arca Marketplace pursuant to Rule 7.29.
    \5\ See NYSE Rule 13, stating that an order marked DNS ``will be
immediately and automatically cancelled if compliance with Exchange
rules or federal securities laws requires that all or part of such
order be routed to another market center for execution.''
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    Whereas the current functionality satisfies both the User's and the
Exchange's obligations pursuant to Regulation NMS, offering this
additional functionality for PO and PSO orders routed to the NYSE will
enhance execution opportunities by expanding access to available
liquidity.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the
Securities Exchange Act of 1934 (the ``Exchange Act''), in general, and
furthers the objectives of Section 6(b)(5) of the Act,\7\ in
particular, in that it is 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. The Exchange
believes the proposed functionality for PO and PSO orders routed to the
NYSE will enhance execution opportunities for Exchange Users by
expanding their access to available liquidity.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    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

    Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) \8\ of the Act and subparagraph (f)(6) of Rule 19b-
4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of 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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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative for 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange requests that the
Commission waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Exchange states that the
proposed rule change does not introduce new or novel functionality, but
that the Exchange is merely offering its Users certain order type
functionality for PO and PSO orders consistent with other current order
types eligible for routing to or entry on the NYSE.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ See SR-NYSEArca-2009-63, Item 7.
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    The Commission believes waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because such waiver will allow implementation of execution
opportunities for Exchange Users without delay.\13\ Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.
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    \13\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78(c)(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.

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-NYSEArca-2009-63 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-NYSEArca-2009-63. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than

those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of 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 No. SR-NYSEArca-2009-63 and should be
submitted on or before August 5, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
 [FR Doc. E9-16711 Filed 7-14-09; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 75, Number 35 (Tuesday, February 23, 2010)]
[Proposed Rules]
[Pages 7998-8001]
[FR Doc No: 2010-3441]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0714; Directorate Identifier 2009-NM-041-AD]
RIN 2120-AA64

Airworthiness Directives; Empresa Brasileira de Aeronautica S.A.
(EMBRAER) Model EMB-135 and -145, -145ER, -145MR, -145LR, -145XR, -
145MP, and -145EP Airplanes

AGENCY: Federal Aviation Administration (FAA), 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:

    It was reported that after commanding the landing gear lever to
down the three green landing gear positioning indication was
displayed followed by the LG/LEVER DISAGREE EICAS [engine indicating
and crew alerting system] message. The crew decided to continue the
approach and landing procedure. As soon as the crew identified that
the landing gear was not extended properly, a go-around procedure
was successfully performed. During maneuver, the airplane settled
momentarily onto the flaps and belly.
* * * * *
    The unsafe condition is the landing gear remaining in the up and
locked position during approach and landing. This condition could be
accompanied by an invalid EICAS landing gear position indication, which
could result in landing with gear in the up position and eliminate
controllability of the airplane on the ground. This may consequently
result in structural damage to the airplane. 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 March 22, 2010.

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.
    For service information identified in this proposed AD, contact
Empresa Brasileira de Aeronautica S.A. (EMBRAER), Technical
Publications Section (PC 060), Av. Brigadeiro Faria Lima, 2170--Putim--
12227-901 S[atilde]o Jose dos Campos--SP--BRASIL; telephone: +55 12
3927-5852 or +55 12 3309-0732; fax: +55 12 3927-7546; e-mail:
<EMAIL_ADDRESS>Internet: http://www.flyembraer.com. You may
review copies of the referenced service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington. For information on the availability of this material at the
FAA, call<PHONE_NUMBER> or<PHONE_NUMBER>.

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: Todd Thompson, Aerospace Engineer,
International Branch, ANN-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-1175; 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-2009-0714;
Directorate Identifier 2009-NM-041-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the

closing date and may amend this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    We proposed to amend 14 CFR part 39 with an earlier NPRM for the
specified products, which was published in the Federal Register on
August 19, 2009 (74 FR 41810). That earlier NPRM proposed to require
actions intended to address the unsafe condition for the products
listed above.
    Paragraph (c) of the original NPRM specifies that the AD applies to
certain airplanes modified by certain Brazilian supplemental type
certificates (STCs) and that are equipped with the affected part.
Brazilian STCs do not apply to U.S. airplanes. The applicability of
this supplemental NPRM would therefore not depend on accomplishment of
the Brazilian STC. We have removed the reference to the Brazilian STCs
from the applicability of this supplemental NPRM. We have coordinated
this issue with Ag[ecirc]ncia Nacional de Avia[ccedil][atilde]o Civil
(ANAC), which is the airworthiness authority for Brazil.

Relevant Service Information

    We have reviewed EMBRAER Service Bulletin 145-32-0120, Revision 02,
dated February 17, 2009. The original NPRM cited EMBRAER Service
Bulletin 145-32-0120, Revision 01, dated November 4, 2008, as the
appropriate source of service information for replacing the landing
gear electronic unit (LGEU) with a new one having a new part number.
EMBRAER Service Bulletin 145-32-0120, Revision 02, dated February 17,
2009, revises the effectivity but adds no new actions. We have revised
paragraphs (g)(1) and (g)(3) (paragraphs (f)(1) and (f)(3) of the
original NPRM) and Note 1 of this supplemental NPRM to refer to
Revision 02. We have also added EMBRAER Service Bulletin 145-32-0120,
Revision 01, dated November 4, 2008, to Table 1 of this supplemental
NPRM to provide credit for actions done in accordance with EMBRAER
Service Bulletin 145-32-0120, Revision 01, dated November 4, 2008.

Comments

    We have considered the following comments received on the original
NPRM.

Request To Include Installation of LGEU Having Part Number (P/N) 355-
022-003 in the Aircraft Maintenance Manual

    American Eagle Airlines requests that we revise the original NPRM
to also allow replacing the LGEU, in accordance with Section 32-32-01
Part II of the EMBRAER Aircraft Maintenance Manual (AMM), as an
acceptable method of compliance with the requirements of paragraph (g)
of the original NPRM. Paragraph (g) of the original NPRM would have
required replacing LGEU having P/N 355-022-002 with P/N 355-002-003, in
accordance with EMBRAER Service Bulletin 145-32-0120, Revision 01,
dated November 4, 2008; or 145LEG-32-0032, Revision 02, dated February
17, 2009; as applicable.
    We disagree with the request. Section 32-32-01 of the EMBRAER AMM
does not include all the actions specified in the Accomplishment
Instructions of EMBRAER Service Bulletin 145-32-0120, Revision 01,
dated November 4, 2008; or 145LEG-32-0032, Revision 02, dated February
17, 2009. Neither the FAA nor the Brazilian authorities approve the
AMM. However, operators may apply for an alternative method of
compliance in accordance with the provisions specified in paragraph
(h)(1) of this supplemental NPRM. No change has been made to this
supplemental NPRM in this regard.

Request To Revise Compliance Times

    The Airline Pilots Association requests that we revise the
compliance times to 12 months for replacing all LGEUs. The original
NPRM specifies replacing LGEUs having P/N 355-022-002 having serial
numbers (S/Ns) 1000 through 1999 with new LGEUs having P/N 355-022-003
within 12 months after the effective date of the AD. It also specifies
replacing LGEUs having P/N 355-022-002 having other serial numbers with
new LGEUs having P/N 355-022-003 within 30 months after the effective
date of this AD. The commenter provides no justification for this
request.
    We disagree with the request to revise the compliance times. All
LGEUs identified in this AD have the potential to fail. However,
according to the manufacturer's data, LGEUs having P/N 1000 through
1999 have certain internal components that could fail sooner than the
internal components of the other LGEUs. For this reason LGEUs having P/
N 1000 through 1999 should be removed and replaced sooner than the
other LGEUs. By replacing LGEUs having P/N 1000 through 1999 sooner as
a result of a shorter compliance time, the same level of safety for all
operators of the affected airplane is maintained. No change has been
made to this supplemental NPRM in this regard.

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 proposed different actions in this AD from those
in the MCAI in order to follow FAA policies. Any such differences are
highlighted in a Note within the proposed AD.

Explanation of Change to Costs of Compliance

    Since issuance of the original NPRM, we have increased the labor
rate used in the Costs of Compliance from $80 per work-hour to $85 per
work-hour. The Costs of Compliance information, below, reflects this
increase in the specified hourly labor rate.

Costs of Compliance

    Based on the service information, we estimate that this proposed AD
would affect about 711 products of U.S. registry. We also estimate that
it would take about 2 work-hours per product to comply with the basic
requirements of this proposed AD. The average labor rate is $85 per
work-hour. Required parts would cost about $0 per product.

Where the service information lists required parts costs that are
covered under warranty, we have assumed that there will be no charge
for these costs. As we do not control warranty coverage for affected
parties, some parties may incur costs higher than estimated here. Based
on these figures, we estimate the cost of the proposed AD on U.S.
operators to be $120,870, or $170 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, Incorporation by
reference, Safety.

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

    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:

Empresa Brasileira de Aeronautica S.A. (EMBRAER): Docket No. FAA-
2009-0714; Directorate Identifier 2009-NM-041-AD.

Comments Due Date

    (a) We must receive comments by March 22, 2010.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Empresa Brasileira de Aeronautica S.A.
(EMBRAER) Model EMB-135BJ, -135ER, -135KE, -135KL, -135LR, -145, -
145ER, -145MR, -145LR, -145XR, -145MP, and -145EP airplanes;
certificated in any category; equipped with landing gear electronic
unit (LGEU) having part number (P/N) 355-022-002.

Subject

    (d) Air Transport Association (ATA) of America Code 32: Landing
gear.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:

    It was reported that after commanding the landing gear lever to
down the three green landing gear positioning indication was
displayed followed by the LG/LEVER DISAGREE EICAS [engine indicating
and crew alerting system] message. The crew decided to continue the
approach and landing procedure. As soon as the crew identified that
the landing gear was not extended properly, a go-around procedure
was successfully performed. During maneuver, the airplane settled
momentarily onto the flaps and belly.
* * * * *
The unsafe condition is the landing gear remaining in the up and
locked position during approach and landing. This condition could be
accompanied by an invalid EICAS landing gear position indication,
which could result in landing with gear in the up position and
eliminate controllability of the airplane on the ground. This may
consequently result in structural damage to the airplane. Required
actions include replacing the LGEU with a new one having a new part
number.

Compliance

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

Actions

    (g) Unless already done, do the following actions:
    (1) Within 12 months after the effective date of this AD,
replace any LGEU having P/N 355-022-002 having a serial number (S/N)
1000 through 1999 inclusive with a new LGEU having P/N 355-022-003,
in accordance with the Accomplishment Instructions of EMBRAER
Service Bulletin 145-32-0120, Revision 02, dated February 17, 2009;
or 145LEG-32-0032, Revision 02, dated February 17, 2009; as
applicable.
    (2) As of 12 months after the effective date of this AD, no
person may install on any airplane an LGEU having a P/N 355-022-002
having a S/N 1000 through 1999 inclusive.
    (3) Within 30 months after the effective date of this AD,
replace any LGEU having P/N 355-022-002 having a serial number not
identified in paragraph (g)(1) of this AD, with a new LGEU having P/
N 355-022-003, in accordance with the Accomplishment Instructions of
EMBRAER Service Bulletin 145-32-0120, Revision 02, dated February
17, 2009; or 145LEG-32-0032, Revision 02, dated February 17, 2009;
as applicable.
    (4) As of 30 months after the effective date of this AD, no
person may install on any airplane an LGEU having a P/N 355-022-002
and a serial number not identified in paragraph (g)(1) of this AD.
    (5) Replacing the LGEU is also acceptable for compliance with
the requirements of paragraph (g) of this AD if done before the
effective date of this AD in accordance with one of the service
bulletins identified in Table 1 of this AD:

                    Table 1--Credit Service Bulletins
------------------------------------------------------------------------
   Embraer Service  Bulletin--        Revision--            Dated--
------------------------------------------------------------------------
145LEG-32-0032..................  Original..........  October 8, 2008.
145LEG-32-0032..................  01................  November 4, 2008.
145-32-0120.....................  Original..........  September 15,
                                                       2008.
145-32-0120.....................  01................  November 4, 2008.
------------------------------------------------------------------------

FAA AD Differences

    Note 1: This AD differs from the MCAI and/or service information
as follows:
    Although EMBRAER Service Bulletins 145LEG-32-0032, Revision 02,
dated February 17, 2009; and 145-32-0120, Revision 02, dated
February 17, 2009; specify that no person may install on any
airplane an LGEU having P/N 355-022-002 as of 30 months after the
effective date of this AD, we have determined that no LGEU having P/
N 355-022-002 with a S/N 1000 through 1999 inclusive may be
installed as of 12 months after the effective date of this AD.
Allowing installation of those serial numbers beyond 12 months would
not address the identified unsafe condition and ensure an adequate
level of safety. This difference has been coordinated with the
Ag[ecirc]ncia Nacional de Avia[ccedil][atilde]o Civil (ANAC).

Other FAA AD Provisions

    (h) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19. Send information to ATTN: Todd
Thompson, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your principal maintenance inspector (PMI) or
principal avionics inspector (PAI), as appropriate, or lacking a
principal inspector, your local Flight Standards District Office.
The AMOC approval letter must specifically reference this AD.
    (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 (44
U.S.C. 3501 et seq.), the Office of Management and Budget (OMB) has
approved the information collection requirements and has assigned
OMB Control Number 2120-0056.

Related Information

    (i) Refer to MCAI ANAC Airworthiness Directive 2009-01-01,
effective January 8, 2009, as corrected by Brazilian Airworthiness
Directive Errata, effective January 20, 2009; and Embraer Service
Bulletins 145-32-0120, Revision 02, dated February 17, 2009; and
145LEG-32-0032, Revision 02, dated February 17, 2009; for related
information.

    Issued in Renton, Washington, on February 16, 2010.
Stephen P. Boyd,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2010-3441 Filed 2-22-10; 8:45 am]
BILLING CODE 4910-13-P


Post-Expedition Assessment & Verification 1. Prepare A/V information and submit

   65

$   4,225

$   4,875

$   6,500

Env.Doc. None

Supp.Info. None

Post-Exp. A/V None

Env.Doc. None

Supp.Info. None

Post-Exp. A/V None

See Table 1

$  4,225

$   4,875

$   6,500

  Respondent                                                Respondent Rate Range                        Capital/           O & M	 No. of	             Totals for Respondent Rate Range   ICR Activity:                       IEEs  Hrs/Yr     $65/hour          $75/hour         $100/hour      Startup Cost      Cost           Respondents    $65/hour        $75/hour     $100/hour

"Subsequent Years" for Multi-Year IEE under MODEL 3

Supplemental Information 1.  Prepare and submit supplemental information

Post-Expedition Assessment & Verification 1. Prepare A/V information and submit

25

$   1,625

$   1,875

$   2,500

Supp.Info. None

Post-Exp. A/V None

Supp.Info. None

Post-Exp. A/V None

See Table 1

$   1,625

$   1,875

$   2,500

	 	TABLE 1.  IEEs - TOTAL ESTIMATED HOURS AND COST FOR THE THREE IEE MODELS WITH 3.5% ESCALATION RATE

Core IEE for One Operator and One IEE       Totals for Respondent Rate Range                                                       Hours			$65/hour	$75/hour	$100/hour YEAR ONE									  185			$ 12,025               $ 13,875               $ 18,500 YEAR TWO (3.5% estimated CPI escalation rate)                                                                  185                                      12,446                  14,361	   19,148 YEAR THREE (3.5% estimated CPI escalation rate)                                                              185                                      12,881                   14,863	   19,818 TOTAL ESTIMATED POTENTIAL HOURS and COST:                                                     555                                   $ 37,352                $ 43,099	$ 57,466 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:                                  185                                   $ 12,451                $ 14,366	$ 19,155 Revised IEE for One Operator and One IEE       Totals for Respondent Rate Range                                                             Hours			$65/hour	$75/hour	$100/hour YEAR ONE                                                                                65                                   $   4,225               $  4,875	$   6,500 YEAR TWO (3.5% estimated CPI escalation rate)                                                                    65                                        4,373                   5,046                    6,728 YEAR THREE (3.5% estimated CPI escalation rate)                                                                65                                        4,526                   5,223                    6,963 TOTAL ESTIMATED POTENTIAL HOURS and COST:                                                     195                                   $ 13,124               $15,144	  $ 20,191 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:                                    65                                   $   4,375               $ 5,048                 $   6,730

"Multi-Year" IEE for One Operator and One IEE - A Multi-Year IEE consists of a Revised IEE and, for each of the subsequent four years, an annual submission of the advance notice and confirmation that the information provided in the Multi-Year IEE is unchanged.  See above for the hours and cost per operator for the "Revised" IEE for the initial year.  The hours and cost per operator for the subsequent years follows for which hours and cost are calculated for "Subsequent Year Multi-Year" IEE submissions.

"Subsequent Year Multi-Year" IEE for One Operator 													     Totals for Respondent Rate Range 										Hours			$65/hour	$75/hour	$100/hour YEAR ONE									   25			$   1,625              $ 1,875		$   2,500 YEAR TWO (3.5% estimated CPI escalation rate)					   25	   		     1,692	                 1,941		     2,588 YEAR THREE (3.5% estimated CPI escalation rate)					   25			     1,751                 2.009		     2,679 TOTAL ESTIMATED POTENTIAL HOURS and COST:				   75			$   5,068    	$ 5,825	              $   7,767 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:			   35			$   1,689 	$ 2,407		$   2,589

Average Estimated Hours and Cost for One Operator Initiating and Continuing with a Multi-Year IEE During This ICR Renewal Period

"Revised" IEE based on $75/hour rate                                                                                65		$   4,875 "Subsequent Year Multi-Year" IEE based on $75/hour rate for two subsequent year                  25hrs x 2 =50$1,875 x 2 =       $   3,750 TOTAL ESTIMATED POTENTIAL HOURS and COST:                                                                                115		$ 8,625 (over 3-year life of this ICR Renewal) AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:                                                                39		$   2,875 (over 3-year life of this ICR Renewal)

	Exhibit 1C:  CEEs - ESTIMATED RESPONDENT HOURS AND COST

Respondent                                                    Respondent Rate Range                     Capital/             O & M	 No. of	              Totals for Respondent Rate Range ICR Activity:                       CEEs  Hrs/Yr  $65/hour          $75/hour         $100/hour         Startup Cost      Cost           Respondents    $65/hour        $75/hour     $100/hour

Environmental Documentation

1. Study the regulations 2. Search reference sources for existing information and compile information from company records 3. Prepare CEE and submit 4. Revise in response to EPA's comments and submit

Post-Expedition Assessment & Verification

1. Prepare A/V information and submit

300

$ 19,500

$ 22,500

$ 30,000

Env. Doc.

None

Post-Exp. A/V

None

Env. Doc.

Copying  $ 0 Mailing      0 ___________               $ 0

Post-Exp. A/V

Copying  $   0 Mailing        0 ____________                 $   0

                $ 0

     1

$ 19,500

$ 22,500

$ 30,000

Totals for Respondent Rate Range                                                             Hours			$65/hour	$75/hour	$100/hour YEAR ONE                                                                                300                                  $ 19,500               $ 22,500	$ 30,000 YEAR TWO (3.5% estimated CPI escalation rate)                                                                   300                                    20,183                  23,288	   31,050 YEAR THREE (3.5% estimated CPI escalation rate)                                                               300                                    20,889                  24,103	   32,137 TOTAL ESTIMATED POTENTIAL HOURS and COST:                                                      900                                 $ 60, 572                69,891	   93,187 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:                                   300                                 $ 20,191                  23,297	   31,062

Assumptions:

1.  Exhibit 1C represents the estimated hours and cost for CEEs.  In fact, no CEEs were submitted during the nineteen austral summer seasons the Rule has been in effect.  For purposes of estimating the potential maximum hours and cost associated with CEEs over the three-year life of the ICR, the three-year projection assumes submission of one CEE per year for each of the next three years.  Although one respondent per year is estimated for purposes of the cost calculations, EPA anticipates that the actual number of nongovernmental expeditions with activities that will likely proceed with less than minor or transitory impacts may well be reduced to less than one respondent per year. 2.  Estimates for preparation of a CEE are based on estimated time that would be needed to comply with the Final Rule at Section 8.4, preparation of environmental documents, generally, and Section 8.8, comprehensive environmental evaluation. 3.  The cost estimates are based on industry labor rates obtained during informal consultations with industry representatives and include overhead and fringe benefits.  The three rates used in the calculations represent the rates provided by the industry representatives.  The $75/hour intermediate rate is used for summary purposes.  See Part D for additional information on the consultations with affected respondents.

	1D.  REPORTING FOR EMERGENCIES - ESTIMATED RESPONDENT HOURS AND COST

  Respondent            			  Respondent Rate Range                       Capital/             O & M     No. of      Totals for Respondent Rate Range                    ICR Activity: CEEs  Hrs/Yr  $65/hour          $75/hour         $100/hour        Startup Cost            Cost           Respondents    $65/hour        $75/hour     $100/hour

Reporting for Cases of Emergency 1. Initial Report 2. Full Report

Post-Emergency Assessment & Verification 1. Prepare A/V information and submit

300

$ 19,500

$ 22,500

$ 30,000

Reporting

None

Post A/V

None

Reporting

Copying   $ 0 Mailing      0 ____________                      $ 0

Post A/V

Copying   $   0 Mailing        0 ____________          $    0

         $  0

      1

$ 19,500

$ 22,500

$ 30,000

There were no emergencies that required reporting during the fifteen austral summer seasons the Rule has been in effect.  An incident requiring emergency reporting could occur in the subsequent years.  The following cost estimates are not additive, however, since only one such emergency in 10 years is estimated.

                                                                               Totals for Respondent Rate Range                                                             Hours			$65/hour	$75/hour	$100/hour YEAR ONE                                                                                300                                  $ 19,500               $ 22,500	$ 30,000 YEAR TWO (3.5% estimated CPI escalation rate)                                                                   300                                    20,183                  23,288	   31,050 YEAR THREE (3.5% estimated CPI escalation rate)                                                               300                                    20,889                  24,103	   32,137 TOTAL ESTIMATED POTENTIAL HOURS and COST:                                                      900                                 $ 60, 572                69,891	   93,187 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:                                   300                                 $ 20,191                  23,297	   31,062

Assumptions:

1.  Reporting for Cases of Emergency is based on the Final Rule at Section 8.10, Cases of emergency, which requires notice and reporting for activities taken in cases of emergency which would have otherwise required the preparation of a CEE.  The estimate is based on reporting requirements only, not the actual cost of the emergency response action.  The hours and cost estimate assumes one such emergency per 10 years. 2.  Only one incident requiring emergency reporting is estimated to occur over a 10-year period.  In fact, there was no emergency reporting during the ten austral summer seasons the Rule has been in effect. 3.  The cost estimates are based on industry labor rates obtained during informal consultations with industry representatives and include overhead and fringe benefits.  The three rates used in the calculations represent the rates provided by the industry representatives.  The $75/hour intermediate rate is used for summary purposes.  See Part D for additional information on the consultations with affected respondents.

	Exhibit 2A: PERMs - ESTIMATED FEDERAL GOVERNMENT HOURS AND COST

                                                                Federal Gov't.           Federal Gov't.       Capitol/	  O & M    	                 No. of	       Cost/              Total ICR Activity: PERM                                              hours/year     $75/hour	     Startup Cost             Cost                      Respondents       Operator           Cost/Year

PERMs  from U.S.-Based Operators:

1. Post PERM receipt on WWW, provide copies to interested Federal agencies and public, if requested 2. Review PERM and any public comments, provide comments to and consult with operator 3. Provide copies of revised/final PERM to interested Federal agencies, review, and notify operator, if necessary 4. Maintain file

Post-Expedition Assessment & Verification

1. Review A/V information - NOT REQUIRED FOR PERMs

   12

 $   905

PERM

      None

Post-Exp A/V

       None

PERM

Copying   $   5 FR Pub.          0 Store Files     10 ___________                  $  15

Post-Exp A/V

None

$    0

       1

$    920

$    920

                                                      Hours	   Cost YEAR ONE				 				12	$    920 YEAR TWO (3.5% estimated CPI escalation rate)			              12	      952 YEAR THREE (3.5% estimated CPI escalation rate)		                            12	      985 TOTAL ESTIMATED POTENTIAL BURDEN and COST:			36	$ 2,857 AVERAGE EST. BURDEN and COST PER YEAR PER OPERATOR:	12	$    952 Assumptions: 1.  Exhibit 2A represents the estimated hours and cost for PERMs.  In fact, during the fifteen austral summer seasons the Rule has been in effect, only three PERMs were submitted as the final documentation for an expedition.  For purposes of estimating the potential maximum hours and cost associated with PERMs over the three-year life of the ICR, the three-year projection assumes submission of one PERM per year for each of the next three years.  Although one respondent per year is estimated for purposes of the cost calculations, EPA anticipates that the actual number of nongovernmental expeditions with activities that will likely proceed with less than minor or transitory impacts may well be reduced to less than one respondent per year. 2.  Estimates for review of a PERM is estimated as 25% of the respondent's time, or 10 hours, to prepare a PERM that would be in compliance with the Final Rule at Section 8.4, preparation of environmental documents, generally, and Section 8.6, preliminary environmental review, and two hours for administrative activities. 3. Hours and cost associated with preparation of higher level EIA documentation, if necessary, is addressed in Exhibits 2B (IEEs) and 2C (CEEs) 4.  Based on EPA's experience for the nineteen austral summer seasons the Rule has been in effect, EPA estimates that the administrative costs have been no more than about 2% of the total estimated costs for the Federal government.  Because this percentage is so low, the Federal government costs in Exhibit 2A through 2E are all calculated at the $75.38/hour rate for technical activities.

            Exhibit 2B:  IEEs - ESTIMATED FEDERAL GOVERNMENT HOURS AND COST

                                 			 Federal Gov't.       Federal Gov't.	       Capitol/	O & M                   No. of	            Cost/          Total ICR Activity: IEEs                                hours/year             $75/hour          Startup Cost          Cost                    Respondents         Operator      Cost/Year

Environmental Documentation MODEL 1: "Core" IEE

1. Post IEE receipt on WWW, provide copies to interested Federal agencies and public, if requested 2. Review IEE and any public comments, provide comments to and consult with operator 3. Provide copies of revised/final IEE to interested Federal agencies, review , and notify operator, if necessary 4. Maintain file

Supplemental Information

1.  Review supplemental information

Post-Expedition Assessment & Verification

1. Review A/V information -

Core IEE

      80

1

        1

      82

$   6,000

$        75

$      75

 $   6,150

Core IEE

      None

Supp. Info.

       None

Post-Exp A/V

       None

Core IEE

Copying $ 47 Store Files  0* ___________               $ 0

*File storage includes Supp. and A/V Information

Supp. Info.

Included above

Post-Exp A/V

*Included above

               $ 57

  See Table 3

$   6,207

$   18,621

                                                             Federal Gov't.   Federal Gov't.	   Capitol/	       O & M    	        No. of	          Cost/              Total                               ICR Activity: IEEs               hours/year       $75/hour	Startup Cost                 Cost                  Respondents        Operator            Cost/Year

Environmental Documentation MODEL 2:  "Revised" IEE

1. Post IEE receipt on WWW, provide copies to interested Federal agencies and public, if requested 2. Review IEE and any public comments, provide comments to and consult with operator 3. Provide copies of revised/final IEE to interested Federal agencies, review, and notify operator, if necessary 4. Maintain file

Supplemental Information

1.  Review supplemental information

Post-Expedition Assessment & Verification

1. Review A/V information -

Revised IEE

      40

        1

      1

      42

$   3,000

$        75

$      75

 $   3,150

Revised IEE

      None

Supp. Info.

       None

Post-Exp A/V

       None

Revised IEE

Copying $ 47 Store Files  0* ___________               $ 0

*File storage includes Supp. and A/V Information

Supp. Info.

Included above

Post-Exp A/V

*Included above

               $ 0

  See Table 2

$   3,197

	                                     Federal Gov't.	Federal Gov't.	Capitol/                  O & M    	                       No. of	         Cost/               Total ICR Activity: IEEs                     hours/year      $75/hour            Startup Cost                  Cost                                    IEE              IEE               Cost/Year

Environmental Documentation MODEL 3:  "Multi-Year" IEE

Year 1:  "Revised" IEE

1. Post IEE receipt on WWW, provide copies to interested Federal agencies and public, if requested 2. Review IEE and any public comments, provide comments to and consult with operator 3. Provide copies of revised/final IEE to interested Federal agencies, review , and notify operator, if necessary 4. Maintain file

Supplemental Information

1.  Review supplemental information

Post-Expedition Assessment & Verification

1. Review A/V information

Years 2 and 3: "Subsequent Years Multi-Year" IEE

1. Post IEE with supplemental information receipt on WWW, provide copies to interested Federal agencies and public, if requested 2. Review IEE with supplemental information and any public comments, provide comments to and consult with operator 3. Provide copies of revised/final IEE to interested Federal agencies, review , and notify operator, if necessary 4. Maintain file

Post-Expedition Assessment & Verification

1. Review A/V information -

      40

      1

1

20

1

$   3,000

$75

-------------------------------------------------------------------------------- $75 $ 3,150

Years 2 and 3

$       1,500

$      75 ________  $   1,575

      None

       None

Year 1 Copying $ 47 Store Files  10* ___________               $ 57

*File storage includes Supp. and A/V Information

Years 2 and 3 Copying $   47 Store Files  10* ___________               $ 57

*File storage includes Supp. and A/V Information

  See Table 2 12

12

See Table 2 $3,207

$ 1,632

$38,484

$19,584

Assumptions:

1.  IEEs would need to comply with the Rule at Section 8.4, preparation of environmental documents, generally, and Section 8.7, initial environmental evaluation. 2.   "Core" IEE and associated supplemental information comprises the IEE package for the initial submittal of an IEE by an operator. 3.   "Revised" IEE and associated supplemental information comprises the IEE package for a current year's submittal developed through revision of a previous year's submittal. 4.  A Multi-Year IEE consists of a Revised IEE and the associated supplemental information in the initial year and, for each of the subsequent four years, an annual submission of the advance notice and confirmation that the information provided in the Multi-Year IEE is unchanged. 5.  Supplemental information for purposes of the costs estimated in Exhibit 2B and Table 2 refers to supplemental information submitted regarding the specifics of the tours/expedition (e.g., dates, number of tours, etc.) rather than supplemental information of a more technical nature that is incorporated into the "Core" or "Revised" IEE by reference.  The one hour for review of the supplemental information is assigned to EPA to simplify the model and calculations.

______________________________________________________________________________________________________ TABLE 2.  IEEs - TOTAL ESTIMATED HOURS AND COST FOR THE THREE IEE MODELS, 3.5% ESCALATION RATE

Core IEE for One Operator and One IEE - (Core IEE + Supplemental Information + A/V Information + O&M)                                                       HOURS		COST YEAR ONE	82			$   6,207 YEAR TWO (3.5% estimated CPI escalation rate)	    82			     		    6,424 YEAR THREE (3.5% estimated CPA escalation rate)                           82		  6,649 TOTAL ESTIMATED POTENTIAL HOURS and COST:  	  246			$  19,280 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR            82		$   6,427

Revised IEE for One Operator and One IEE - (Revised IEE + Supplemental Information + A/V Information + O&M)                                                       HOURS		COST YEAR ONE                                                                         42		$   3,207 YEAR TWO (3.5% estimated CPI escalation rate)                               42	           3,319 YEAR THREE (3.5% estimated CPA escalation rate)                           42	           3,435 TOTAL ESTIMATED POTENTIAL HOURS and COST:                         126		 $ 9,961 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR            42		$   3,320

"Multi-Year" IEE for One Operator and One IEE - A "Multi-Year" IEE consists of a "Revised" IEE and, for each of the subsequent four years, an annual submission of the advance notice and confirmation that the information provided in the Multi-Year IEE is unchanged.  See above for the hours and cost per operator for the "Revised" IEE for the initial year.  The hours and cost per operator for the subsequent years follows for which hours and cost are calculated for "Subsequent Year Multi-Year" IEE submissions.

"Subsequent Year Multi-Year" IEE for One Operator - (Supplemental Information + A/V Information + O&M) 									HOURS		COST YEAR ONE								     21		$   1,632 YEAR TWO (3.5% estimated CPI escalation rate)				     21                  1,689 YEAR THREE (3.5% estimated CPA escalation rate)			                   21	                 1,748 TOTAL ESTIMATED POTENTIAL HOURS and COST:			     63		$   5,069 AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR		     21		$   1,690

Average Estimated Hours and Cost for One Operator Initiating and Continuing with a Multi-Year IEE During This ICR Renewal Period "Revised" IEE for One Operator and One IEE                                                       HOURS		COST "Revised" IEE                                                                      42		$   3,207 "Subsequent Year Multi-Year" IEE - cost for 2 years                     21 hrs x 2 = 42	       $1,632 x 2 =3,264 TOTAL ESTIMATED POTENTIAL HOURS AND COST:                          84		$   6,471 (over 3-year life of this ICR Renewal) AVERAGE EST. HOURS and COST PER YEAR PER OPERATOR:            28		$   2,157 (over 3-year life of this ICR Renewal)

	Exhibit 2C:  CEEs - ESTIMATED FEDERAL GOVERNMENT HOURS AND COST

                                                         Federal Gov't.	Federal Gov't.	Capitol/	             O & M    	        No. of	  Cost/       Total                    ICR Activity: CEE                       hours/year         $75/hour          Startup Cost             Cost                   Respondents      Operator   Cost/Year

CEEs  from U.S.-Based Operators:

1. Post CEE receipt on WWW, provide copies to interested Federal agencies and public, if requested 2. Prepare/publish FR notices for receipt of draft CEE and NOA for final CEE; copy and transmit final CEE to Parties 3. Review draft CEE and any public comments, provide comments to and consult with operator 4. Provide copies of revised/final CEE to interested Federal agencies and public, if requested, and to Parties,  review, and notify operator, if necessary 5. Maintain file

Post-Expedition Assessment & Verification

1. Review A/V information -

CEE

  135

Post-Exp A/V

      15

     150

CEE

$   10,125 Post-Exp A/V

$    1,125

 $ 11,250

CEE

  None

Post-Exp A/V

  None

CEE

Copying  $$1.365 FR Pub.       $306 Store Files    10* _____________                $1,681*

*Includes CEE and A/V Information

Post-Exp A/V

* Included above

               $1,681

      1

$ 12,931

$12,931

YEAR ONE						150	$12,931 YEAR TWO (3.5% estimated CPI escalation rate on $12,590)		150	$13,384 YEAR THREE (35% estimated CPI escalation rate on $13,031)		150	$13,852 TOTAL ESTIMATED POTENTIAL BURDEN and COST:		450	$40,167 AVERAGE EST. BURDEN and COST PER YEAR PER OPERATOR:	150	$13,389

Assumptions: 1.  Exhibit 2C represents the estimated hours and cost for CEEs.  In fact, no CEEs were submitted during the fifteen austral summer seasons the Rule has been in effect.  For purposes of estimating the potential maximum hours and cost associated with CEEs over the three-year life of the ICR, the three-year projection assumes submittal of one CEE per year for each of the next three years.  Although one respondent per year is estimated for purposes of the cost calculations, EPA anticipates that the actual number of nongovernmental expeditions with activities that will likely proceed with less than minor or transitory impacts may well be reduced to less than one respondent per year. 2.  Estimates for review of a CEE is estimated as 50% of the respondent's time, or 120 hours, to prepare a CEE that would be in compliance with the Final Rule at Section 8.4, preparation of environmental documents, generally, and Section 8.8, comprehensive environmental evaluation, with an additional 15 hours for administrative activities, and 50% of respondent's time for assessment and verification procedures for review of the information. 3. EPA would publish Federal Register notices for domestic CEEs, and the Department of State would publish the Federal Register notice and circulate copies of CEEs to all Parties and others that may request copies.

	Exhibit 2D:  Reporting for Emergencies - Estimated Federal Government Hours and Cost

                                                           Federal Gov't.	Federal Gov't.	Capitol/	       O & M    	      No. of	    Total     ICR Activity:                                     CEE    hours/year       $70/hour                Startup Cost     Cost         Respondents        Cost/Year

Reporting for Cases of Emergency

1. Notify Parties 2. Provide initial and full report to interested Federal agencies and review 3. Provide full report to Parties 4. Review A/V information 5. Maintain files

  150

  $ 11,250

None

Copying  $$1.365  FR Pub.       $0 Store Files    10* _____________                $1,375*

       1

$ 11,250     1,375 ________ $12,625

YEAR ONE							150	$12,625 YEAR TWO (3.5% estimated CPI escalation rate of $12,410) 	              150	  13,037 YEAR THREE (3.5% estimated CPI escalation rate for $12,845)	150	  13,495

Assumptions:

1.  Reporting for Cases of Emergency is based on the Final Rule at Section 8.10, Cases of emergency, which would require notice and reporting for activities taken in cases of emergency which would have otherwise required the preparation of a CEE.  The estimate is based on reporting requirements only, not the actual cost of the emergency response action.  The hours and cost estimate assumes one such emergency per 10 years. 2.  Only one incident requiring emergency reporting is estimated to occur over a 10-year period.  In fact, there was no emergency reporting during the fifteen austral summer seasons the Rule has been in effect.  An incident requiring emergency reporting could occur in the subsequent years.  The cost estimates for reporting for cases of emergency are not additive because only one such emergency in 10 years is estimated. 3. Estimates for review of an Emergency Report is estimated as 50% of the respondent's time to prepare the Emergency Report that would be in compliance with the Final Rule at Section 8.10, or 120 hours, and 50% of respondent's time for assessment and verification procedures for review of the information, or 15 hours,s. 3. The Department of State is responsible for notification of Parties and follow-up coordination with the Parties; hours have been allocated to the DOS accordingly.

	Exhibit 2E:  Coordinating Review of Information Received from Other Parties - Estimated Federal Government Hours and Cost

                                                             Federal Gov't.	Federal Gov't.	    Capitol/	       O & M    	    No. of	                        Total ICR Activity: Other Party Docs.                            hours/year       $75/hour           Startup Cost           Cost             Respondents                    Cost/Year

Coordinate Review of Information Received from Other Parties

1. Prepare and publish FR notice of receipt of draft CEE, provide copies to interested Federal agencies and public, if requested 2. Review draft CEE and provide inter-agency response to Party 3. Provide copies of other documents (including final CEEs, annual list of IEEs, national procedures, significant monitoring information) to interested Federal agencies and public, if requested 4. Post receipt of significant monitoring information on WWW and provide copies to interested Federal agencies and public, if requested 5.  Maintain files

110

$8,250

None

Copying  $   198* FR Pub     306 Store Files  10 ____________               $ 514

* Copying per document: Draft CEE $90 Final CEE  90 Other doc.  18

See:  Assum. 2, below

See: Assum. 2, below

Assumptions:

1.  The Department of State would be responsible for compliance with the Final Rule at Section 8.12, Coordination of reviews from other Parties. 2.  The calculations in Exhibit 2E are based on receipt of a CEE from another Party.  One Draft CEE was received from other Parties during the fifteen austral summer seasons the Rule has been in effect other than the annual list of IEEs.  There is no way to anticipate receipt of environmental documents from the Parties, other than the annual list of IEEs, on an annual basis.  There is no burden or cost to the respondents associated with receipt of documents from the Parties, therefore, the costs are not further defined.

Exhibit 3:  SUMMARY - ESTIMATED RESPONDENT/FEDERAL GOVERNMENT HOURS AND COST

CHART 1:  Summary for Respondents and Federal Government - Estimated Total and Annual Average hours and cost for each type of environmental document that is submitted by a Respondent under the Final Rule

                                     PERM

                                   Core IEE

                                  Revised IEE

                        Subsequent Year Multi-Year IEE

                                      CEE

                                   Emergency                                    Reporting

Hours  Cost Hours    Cost Hours    Cost Hours    Cost Hours    Cost Hours    Cost

Respondent      Year 1      Year 2      Year 3

TOTAL Annual Average

  40    $ 3,000   40    $ 3,105   40    $ 3,214

120    $ 9,319   40    $ 3,106

  185      $13,875   185      $14,361   185      $14,863

  555      $43,099   185      $14,366

    65     $ 4,875     65     $ 5,046     65     $ 5,223

  195     $15,144     65     $ 5,048

  25       $ 1,875   25      $ 1,941   25       $ 2,009      75      $ 5,825   25       $ 1,942

  300   $ 22,500   300   $ 23,288   300   $ 24,103

  900   $ 69,891   300   $ 23,297

 300   $ 22,500   300   $ 23,288   300   $ 24,103

Federal Government      Year 1      Year 2      Year 3

TOTAL Annual Average

  12    $    920   12    $    952   12    $    985

  36    $ 2,857   12    $    952

   82       $ 6,207    82       $ 6,424    82      $ 6,649

 246       $19,280    82       $  6,427

   42      $ 3,207    42      $ 3,319    42     $ 3,435

 126      $9,961    42      $  3,320

  21      $ 1,632   21       $ 1,689   21      $ 1,748

  63       $ 5,069   21       $ 1,690

  150   $ 12,931   150   $ 13,384   150   $ 13,852

  450   $ 40,167   150   $ 13,389

 150     $12,625  150     $13,037  150     $13,495

TOTAL Annual Average

156    $12,176   52    $  4,058

 801       $62,379  267       $20,793

 321      $25,105  107      $  8,368

138     $ 10,894   46       $  3,632

1350 $110,058   450  $ 36,686

CHART 2:  Summary for Respondents and Federal Government - Estimated total hours and costs for Multi-Year IEE as the anticipated level and type of environmental document most respondents submit under the Final Rule for the 3-year ICR renewal (Year 1 = "Revised" IEE, Years 2 and 3 = "Subsequent Year Multi-Year" IEE)

Multi-Year IEE

          	   Total Hours 3-Year Total	Annual 3-Yr Average

                       Total Cost 3-Year Total                   Annual 3-Yr Average

Respondent (for one operator)

   115 hours	 38 hrs per op per yr

$    8,625	$  2,875 per operator per year

Federal Government (for one op.)

      84 hours	 28 hrs per op per year

$      6,471	$  2,157 per op per year

TOTALS - For one operator

    199 hours	 66 hrs per op per yr

$    15,096                           $  5,032 per op per year

NOTES: Annual Average is the average per respondent per year.  Chart 1 presents the maximum hours and cost for a respondent.  Chart 2 presents the maximum hours and cost based on the anticipated level and type of environmental document a respondent would likely submit under the Final Rule.  The $75/hour intermediate rate is used for summary purposes.  The hours and cost estimates for Emergency Reporting assume one such emergency per 10 years.

CHART 3: Summary for Respondents and Federal Government - Estimated hours and costs for environmental documentation for 3-year period of this ICR renewal. Summary assumes 19 operators per year with 3 new operators and 16 repeat operators each year.  For the 16 repeat operators, the assumptions are that 2 will prepare "Revised" IEEs and 14will prepare "Multi-Year" IEEs.  For Chart 3, the calculations use the "Annual Average" from Chart 1for "Core," "Revised," and "Subsequent Year, Multi-Year" IEEs and the hours and cost in Chart 2 for the "Multi-Year" IEE.

Operators: 19 operators each year for the 3-year ICR renewal period

      Respondent Burden  Hours                                            Cost

      Federal Government Burden Hours			Cost

3 new operators submit "Core" IEEs each year       Burden per year       Total 3-year burden

185 x 3 =    555    	$14,366 x 3 = $ 43,098   555 x 3 = 1,665	$43,098 x 3 = $129,294

  82 x 3 =    246	     $6,427 x 3 = $  19,281 246 x 3 = 738	     $19,281 x 3 = $57,843

2 of 16 repeat operators submit "Revised" IEEs each year       Burden per year       Total 3-year burden

  65 x 2 =    130	$  5,048 x 2 = $  10,096 130 x 3  =    390	$10,096 x 3 = $   30,288

  42 x 2 =    84	$  3,320 x 2 = $ 6,640 84 x 3 =    252	$6,640 x 3 = $ 19,920

14of 16 repeat operators submit new "Multi-Year" IEEs       Burden per year       Total 3-year burden

  38 x 14=  532    	$  2,875 x 14 = $   40,250 532 x 3 =  1,596  	$40,250 x 3 = $ 120,750

  28 x 14 = 392	$ 2,157 x 14 = $30,198 392 x 3 =   1176   	$30,198 x 3 = $90,594

ANNUAL TOTAL BURDEN for 19 operators ANNUAL TOTAL BURDEN per operator TOTAL 3-YEAR BURDEN for 19 operators TOTAL 3-YEAR BURDEN per operator

        1,217	 $93,444              64                                 $    4,918         3,651                                 $280,332            192                                 $ 14,754

            722	$ 56,119             38                                $   2,954         2,166                               $ 168,357            114                               $   8,861

EXHIBIT 4:  SUMMARY FOR RESPONDENTS AND FEDERAL GOVERNMENT - O&M COSTS

Estimated O&M costs for Respondents and the Federal Government and O&M breakout within the total cost burden.

Operators: 19 operators each year for the 3-year ICR renewal period

      Respondent Burden  O&M Cost	          O&M + Labor = Total Cost

      Federal Government Burden O&M Cost	        O&M + Labor = Total Cost

3 new operators submit "Core" IEEs each year       Burden per year       Total 3-year burden

$   0                                 $0  +   43,098 = $  43,098 $           0                         $0   + 129,294 = $129,294

$   57 x 3 = $171     $ 171  +   19,281 = $  19,452 $171 x 3 = $513     $ 513  +  57,843 = $58,356

2 of 15 repeat operators submit "Revised" IEEs each year       Burden per year       Total 3-year burden

$    0                                $  0  +   10,096 = $  10,096 $    0                                $  0 +    30,288 = $   30,288

$   57 x 2 = $   114     $ 114 +  6,640 = $ 6,754 $   114 x 3 = $342     $ 342 +   19,920 = $ 20,262

14 of 16 repeat operators submit new "Multi-Year" IEEs       Burden per year       Total 3-year burden

$  0                                  $ 0 +   40,250 = $ 40,250 $  0                                  $ 0 + 120,750 = $ 120,750

$   57 x 14 = $ 798     $ 798  +  30,198 = $30,996 $ 798    x 3 = $2,394    $ 2,394 +   90,594 = $92,988

ANNUAL TOTAL BURDEN for 19 operators ANNUAL TOTAL BURDEN per operator TOTAL 3-YEAR BURDEN for 19 operators TOTAL 3-YEAR BURDEN per operator

             O&M        Labor                    Total Cost              $ 0      +   93,444   = 	$93,444              $  0 +     4,918 =	$    4,918              $ 0 +     280,332 =	$280,322             $ 0 +   14,754 =	$  14,754

             O&M        Labor	             Total Cost              $1,083 +   57,202 =	              $ 58,285              $   57 +     3,010 =	              $    3,067              $3,249 + 171,606 =	              $174,855              $   171 +   9,032 =	              $ 9,203

	PART B OF THE SUPPORTING STATEMENT 	STATISTICAL SURVEY

      This collection of information does not use or is otherwise based on a statistical survey.                                                                                SmartBenefits Transit FF ReassignSmartBenefits Transit FF Reassign


[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Notices]
[Pages 71381-71384]
[FR Doc No: 2022-25355]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96331; File No. SR-IEX-2022-09]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Pursuant to
IEX Rule 15.110 To Amend IEX's Fee Schedule

November 16, 2022.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on November 7, 2022, the Investors Exchange LLC (``IEX'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the
Commission a proposed rule change to amend the fees applicable to
Members \6\ (the ``Fee Schedule''), pursuant to IEX Rule 15.110(a) and
(c). Changes to the Fee Schedule pursuant to this proposal are
effective upon filing,\7\ and the Exchange plans to implement the
changes on December 1, 2022.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ See IEX Rule 1.160(s).
    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    The text of the proposed rule change is available at the Exchange's
website at www.iextrading.com, at the principal office of the Exchange,
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and the
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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fee Schedule,\8\ pursuant to IEX
Rule 15.110(a) and (c), to modestly increase: (i) the fees applicable
to executions of and with non-displayed orders; (ii) the fees
applicable to executions that remove displayed liquidity; (iii) and the
fees applicable to the opening process for non-listed securities. The
Exchange also proposes to reduce the fees for executions of securities
priced below $1.00 per share and to make related and conforming
changes.
---------------------------------------------------------------------------

    \8\ See IEX Fee Schedule, available at https://exchange.iex.io/resources/trading/fee-schedule/.
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Non-Displayed Trading Fees
    The Exchange currently charges Members a standard fee of $0.0009
per share for non-displayed transactions, both adding and removing
liquidity, with an execution price greater than or equal to $1.00.\9\
IEX has not changed this fee for non-displayed adding and removing
orders since it launched as an Exchange in 2016,\10\ although certain
fee code combinations can result in a free execution for non-displayed
adding and removing orders.\11\
---------------------------------------------------------------------------

    \9\ See supra note 5 [sic].
    \10\ See Securities Exchange Act Release No. 78550 (August 11,
2016), 81 FR 54873 (August 17, 2016) (SR-IEX-2016-09).
    \11\ Non-displayed Retail orders, Retail Liquidity Providing
orders, and orders subject to the ``Internalization Fee'' (the
Member executes against resting liquidity added by such Member) all
execute for free. See IEX Fee Schedule.
---------------------------------------------------------------------------

    IEX recently conducted an assessment of its non-displayed adding
and removing fees, including an assessment of the fees charged by its
competitors, and determined that charging $0.0009 to remove non-
displayed liquidity places IEX's fee well below the most inexpensive
``maker-taker'' \12\ venues which range from $0.0026 to $0.0029.\13\

Similarly, IEX's fee for adding non-displayed liquidity places it well
below the most inexpensive ``taker-maker'' \14\ venues, which range
from $0.0024 to $0.0030.\15\ Additionally, IEX notes that several
taker-maker exchanges also charge $0.0010 for orders that add non-
displayed midpoint liquidity.\16\
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    \12\ In a ``maker-taker'' model, an exchange will typically pay
a rebate for an order that adds liquidity and charge a fee for an
order that removes liquidity.
    \13\ See, e.g., MIAX Pearl Equities Fee Schedule (charging a
standard fee of $0.0029 for orders that remove liquidity), https://www.miaxequities.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Equities_Fee_Schedule_09012022.pdf; NYSE Fee Schedule
(charging a standard fee of at least $0.0026 for orders that remove
non-displayed liquidity), https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf
    \14\ In a ``taker-maker'' model (also called an ``inverted''
exchange), an exchange will typically pay a rebate for an order that
removes liquidity (or offer a free execution) and charge a fee for
an order that adds liquidity.
    \15\ See, e.g., Cboe BYX Fee Schedule (charging a standard fee
of $0.0024 to add non-displayed liquidity, https://www.cboe.com/us/equities/membership/fee_schedule/byx/; Cboe EDGA Fee Schedule
(charging a standard fee of $0.0030 to add non-displayed liquidity),
https://www.cboe.com/us/equities/membership/fee_schedule/edga/.
    \16\ This fee is charged by Cboe BYX and EDGA, see supra note 12
[sic], and also Nasdaq BX, http://nasdaqtrader.com/Trader.aspx?id=bx_pricing.
---------------------------------------------------------------------------

    Therefore, IEX is proposing to modestly raise its non-displayed
adding and removing fees for securities priced at or above $1.00 from
$0.0009 to $0.0010, with no changes to non-displayed transactions that
currently execute free of charge.\17\ These fee increases are designed
to offset increased costs to operate the Exchange. IEX notes that in
the past five years, the Exchange has not adopted transaction fee
changes designed to increase overall fee revenue. During that time the
costs of operating the Exchange, including the costs to subscribe to
other exchanges' technology products, have increased considerably.
---------------------------------------------------------------------------

    \17\ See supra note 8.
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Displayed Removing Fees
    Currently, orders that add displayed liquidity to the Exchange
execute free of charge, while orders that remove displayed liquidity
are charged $0.0006 (for orders priced greater than or equal to $1.00
per share). IEX is not proposing to make any changes to the fees
charged for adding displayed liquidity, but is proposing to increase
the fee for removing displayed liquidity to $0.0009.
    IEX notes that its current fee for removing displayed liquidity is
well below those charged by all the maker-taker exchanges (each of
which charges a standard fee of $0.0030 for removing displayed
liquidity \18\) and is even lower than the fees charged by one ``taker-
maker'' exchange, Nasdaq BX, which charges a standard fee of $0.0007
for orders that remove liquidity.\19\
---------------------------------------------------------------------------

    \18\ See, e.g., MIAX Pearl Equities Fee Schedule, https://www.miaxequities.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Equities_Fee_Schedule_09012022.pdf; NYSE Fee Schedule,
https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf; Nasdaq Fee Schedule, http://nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
    \19\ See Nasdaq BX, http://nasdaqtrader.com/Trader.aspx?id=bx_pricing.
---------------------------------------------------------------------------

    As with the proposed changes to the non-displayed trading fees,
this modest proposed fee increase is designed to offset increased costs
to operate the Exchange as described above.
Opening Process Fees
    IEX currently charges a fee of $0.0009 per share for executions
equal to or greater than $1.00 per share in IEX's opening process for
securities listed on other exchanges. Because this fee has been set at
the same level as the non-displayed adding and removing fees, IEX is
proposing to similarly increase the opening process fee to $0.0010.
This modest proposed fee increase is also designed to offset increased
costs to operate the Exchange as described above.
Sub-Dollar Execution Fees
    Currently, IEX charges .30% of the Total Dollar Value (``TDV'') for
all executions below $1.00 per share, unless another fee code
combination results in a free execution (e.g., a retail order that
removes displayed liquidity). This can create a significant pricing
disparity between taking orders for executions above and below $1.00.
For example, in a 1,000-share execution at $1.01 the taker would pay a
fee of $0.60, while a 1,000-share execution at $0.99 would pay a fee of
$2.97 or approximately five times the fee for the $1.01 execution. IEX
therefore believes it is fairer and more equitable to synchronize its
sub-dollar transaction fees with its fees for executions above $1 per
share.
    Thus, IEX proposes to reduce the non-displayed sub-dollar execution
and opening process fees from 0.30% of TDV to 0.10% of TDV (more
comparable to the new $0.0010 fee for non-displayed executions).
Similarly, as proposed, any sub-dollar executed orders that add
displayed liquidity would be charged no fee, while any sub-dollar
executed orders that remove displayed liquidity would be charged a fee
of 0.09% of TDV.
    IEX notes that its sub-dollar execution fees are currently higher
than those charged by several other exchanges. For example, taker-maker
exchange Cboe BYX charges 0.10% of TDV for transactions that remove
liquidity,\20\ while taker-maker exchange Cboe EDGA and maker-taker
exchange NYSE both charge no fee for sub-dollar executions that either
add or remove liquidity.\21\
---------------------------------------------------------------------------

    \20\ See Cboe BYX Fee Schedule, supra note 12 [sic].
    \21\ See Cboe EDGA Fee Schedule, supra note 12 [sic]; see also
NYSE Fee Schedule, supra, note 10 [sic].
---------------------------------------------------------------------------

Conforming Changes to the Fee Schedule
    As part of this fee change, IEX proposes to remove the bullet in
the ``Transaction Fees'' section that states that ``Executions below
$1.00 are assessed a fee of 0.30% of TDV unless the Fee Code
Combination results in a FREE execution'' and add a new column to its
``Fee Code Combinations and Associated Fees'' table to list the fees
charged for sub-dollar executions, to reflect the proposed fee changes.
In addition, IEX proposes to incorporate the existing fees for auctions
in IEX listed securities into the new column.\22\
---------------------------------------------------------------------------

    \22\ There are no IEX listed securities.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\23\ in general, and furthers the
objectives of section 6(b)(4) \24\ of the Act, in particular, in that
it is designed to provide for the equitable allocation of reasonable
fees among IEX Members and persons using its facilities. Additionally,
IEX believes that the proposed changes to the Fee Schedule are
consistent with the investor protection objectives of section 6(b)(5)
\25\ of the Act, in particular, in that they are 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 mechanism of a free and open
market and a national market system, and, in general, to protect
investors and the public interest; and are not designed to permit
unfair discrimination between customers, brokers, or dealers.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(4).
    \25\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed changes to non-displayed
order executions (and opening process executions) are reasonable, fair
and equitable, non-discriminatory, and consistent with the Act. The
Exchange operates in a highly competitive market in which market
participants can readily direct order flow to competing venues if they
deem fee levels at a particular venue to be excessive. Within that
context, charging $0.0010 per share (or 0.10% of TDV for sub-dollar
executions) for orders that add or remove non-displayed liquidity, as
well

as opening process orders, is designed to set IEX's non-displayed
pricing squarely within the fees charged by maker-taker exchanges to
remove liquidity and taker-maker exchanges to add liquidity. Keeping
IEX's prices competitive with those of other markets is designed to
incentivize more market participants to trade on IEX and avail
themselves of IEX's deep pool of non-displayed liquidity, which is
consistent with the overall goal of enhancing market quality.
    The Exchange also believes that the proposed changes to executions
that remove displayed liquidity are reasonable, fair and equitable,
non-discriminatory, and consistent with the Act. As noted above, the
Exchange operates in a highly competitive market in which market
participants can readily direct order flow to competing venues if they
deem fee levels at a particular venue to be excessive. Within that
context, charging $0.0009 per share (or .09% of TDV for sub-dollar
executions) for orders that remove displayed liquidity (coupled with
continuing to offer free executions for orders that add displayed
liquidity) is designed to keep IEX's displayed trading prices
competitive with those of other exchanges. IEX believes that such
competitive prices should incentivize Members and other market
participants to enter displayed orders on IEX by providing a pricing
incentive for such orders without offering rebates, thereby
contributing to price discovery and price formation, which is
consistent with the overall goal of enhancing market quality.
    Other exchanges use ``maker-taker'' or ``taker-maker'' fee
structures that apply different fees to orders that add versus remove
liquidity, generally providing a rebate rather than charging a fee to
adding or removing orders. In a ``maker-taker'' model an exchange will
typically pay a rebate for an order that adds liquidity and charge a
fee for an order that removes liquidity. The Exchange is not proposing
to pay a rebate, but as proposed the fee to remove displayed liquidity
will still be lower than the fee to add or remove non-displayed
liquidity and will be within the range (and in many cases much less
than) the fees charged by competing exchanges to remove displayed or
non-displayed liquidity.\26\ Consequently, IEX does not believe that
the proposed fee structure for adding or remove non-displayed
liquidity, or for removing displayed liquidity, raises any new or novel
issues that the Commission has not already considered in the context of
other exchanges' fees. The Exchange believes that this fee structure
will attract and incentivize displayed order flow as well as order flow
seeking to trade with displayed order flow. Additionally, increases in
displayed liquidity would contribute to the public price discovery
process which would benefit all market participants and protect
investors and the public interest.
---------------------------------------------------------------------------

    \26\ See Cboe BZX Fee Schedule (charging $0.0030 per share for
any liquidity removing transactions), available at https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/; MIAX
Pearl Equities Free Schedule (charging $0.0030 per share for any
liquidity removing executions), available at https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_PEARL_Equities_Fee_Schedule_01292021.pdf; MEMX Fee Schedule
(charging $0.0026 per share for any liquidity removing executions),
available at https://info.memxtrading.com/fee-schedule/; Nasdaq
Equity 7 Section 118(a) (charging $0.0030 per share for any
liquidity removing executions), available at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-equity-7; NYSE
Fee Schedule (charging $0.00275 per share for any liquidity removing
executions), available at https://www.nyse.com/markets/nyse/trading-info/fees.
---------------------------------------------------------------------------

    The Exchange also believes that it is reasonable to decrease the
fees it charges for sub-dollar executions to synchronize those fees
with the fees charged for executions at or above $1.00. These fees will
result in lower transaction costs for sub-dollar executions at IEX,
including for the first time allowing sub-dollar executions that add
liquidity to execute free of charge.
    The Exchange further believes that the proposed fee change is
consistent with the Act's requirement that the Exchange provide for an
equitable allocation of fees that is also not unfairly discriminatory.
As proposed, the fees for adding and removing displayed and non-
displayed liquidity will apply in an equal and nondiscriminatory manner
to all Members. All Members are eligible to enter displayed or non-
displayed orders and orders to remove displayed or non-displayed
orders. Moreover, to the extent the proposed change is successful in
incentivizing the entry and execution of displayed orders on IEX, such
greater liquidity will benefit all market participants by increasing
price discovery and price formation as well as market quality and
execution opportunities.
    In addition, the Exchange believes that it is reasonable to add a
new column to the Fee Code Combinations and Associated Fees table to
reflect the proposed fee changes and to provide information to Members
on the relevant charges, including indicating how sub-dollar pricing
will apply to all possible fee code combinations. This addition to the
Fee Schedule will provide additional clarity for Members on transaction
fees, consistent with the objectives of section 6(b)(1) \27\ of the
Act. The revisions are designed to reflect the fee changes, and also to
provide enhanced clarity to the applicable Fee Code Combinations and
Associated Fees, so the Exchange does not believe that adding such
information raises any new or novel issues not already considered by
the Commission. Accordingly, the Exchange believes that it is
reasonable to revise the Fee Code Combinations as proposed in order to
reflect the applicable fees.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

    Further, the Exchange believes that it is reasonable to make a
conforming change to delete the provision in the Fee Schedule
specifying that all sub-dollar executions are assessed a fee of 0.30%
of TDV unless the Fee Code Combination results in a free execution. As
discussed in the Purpose section, this language is no longer accurate
because sub-dollar execution fees will now be synchronized with the
fees charged for executions at or above $1.00, and deletion will avoid
any unnecessary confusion as to the applicable fees.

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. The Exchange does not
believe that the proposed fees will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The Exchange operates in a highly competitive
market in which market participants can easily direct their orders to
competing venues, including off-exchange venues, if its fees are viewed
as non-competitive. Moreover, IEX notes that the proposed fees are
designed to enhance competition by incentivizing the entry of liquidity
on IEX and thereby increasing the Exchange's pool of both displayed and
non-displayed liquidity to the benefit of all market participants.
Further, subject to the SEC rule filing process, other exchanges could
adopt similar fees.
    The Exchange also does not believe that the proposed rule change
will impose any burden on intramarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act. While Members
that remove displayed liquidity or add or remove non-displayed
liquidity will be subject to different fees based on this usage, those
differences are not based on the type of Member entering orders but

on whether the Member chose to submit displayed or non-displayed
liquidity providing orders. Every Member would benefit from the
availability of more liquidity on the Exchange that the proposed fees
are designed to incentivize. The related and conforming changes are
designed, as discussed in the Purpose and Statutory Basis sections, to
provide additional clarity and remove superfluous provisions.
Accordingly, the Exchange does not believe that these changes will have
any impact on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to section
19(b)(3)(A)(ii) \28\ of the Act.
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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 under
section 19(b)(2)(B) \29\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 protected]. Please include
File Number SR-IEX-2022-09 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-IEX-2022-09. This file
number should be included in the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Section, 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 will also be available for inspection
and copying at the IEX's principal office. All comments received will
be posted without change. Persons submitting comments are cautioned
that we do not redact or edit personal identifying information from
comment submissions. You should submit only information that you wish
to make available publicly. All submissions should refer to File Number
SR-IEX-2022-09 and should be submitted on or before December 13, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25355 Filed 11-21-22; 8:45 am]
BILLING CODE 8011-01-P