[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Rules and Regulations]
[Pages 48924-48926]
[FR Doc No: 2018-20924]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-0306; Product Identifier 2018-NM-039-AD; Amendment
39-19426; AD 2018-19-25]
RIN 2120-AA64

Airworthiness Directives; Dassault Aviation Airplanes

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

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for all
Dassault Aviation Model FALCON 2000 airplanes. This AD was prompted by
a determination that new or more restrictive airworthiness limitations
are necessary. This AD requires revising the maintenance or inspection
program, as applicable, to incorporate new maintenance requirements and
airworthiness limitations. We are issuing this AD to address the unsafe
condition on these products.

DATES: This AD is effective November 2, 2018.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of November 2,
2018.

ADDRESSES: For service information identified in this final rule,
contact Dassault Falcon Jet Corporation, Teterboro Airport, P.O. Box
2000, South Hackensack, NJ 07606; telephone<PHONE_NUMBER>; internet
http://www.dassaultfalcon.com. You may view this service information at
the FAA, Transport Standards Branch, 2200 South 216th St., Des Moines,
WA. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>. It is also available on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0306.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0306; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, the regulatory evaluation, any comments received, and
other information. The address for Docket Operations (phone: 800-647-
5527) is U.S. Department of Transportation, Docket Operations, M-30,
West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE,
Washington, DC 20590.

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

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would

apply to all Dassault Aviation Model FALCON 2000 airplanes. The NPRM
published in the Federal Register on April 30, 2018 (83 FR 18749). The
NPRM was prompted by a determination that new or more restrictive
airworthiness limitations are necessary. The NPRM proposed to require
revising the maintenance or inspection program, as applicable, to
incorporate new maintenance requirements and airworthiness limitations.
    We are issuing this AD to prevent reduced controllability of the
airplane.
    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA AD
2017-0236, dated November 30, 2017 (referred to after this as the
Mandatory Continuing Airworthiness Information, or ``the MCAI''), to
correct an unsafe condition for all Dassault Aviation Model FALCON 2000
airplanes. The MCAI states:

    The airworthiness limitations for Dassault Falcon 2000
aeroplanes, which are approved by EASA, are currently defined and
published in Aircraft Maintenance Manual (AMM) Airworthiness
Limitations Section (ALS) Chapter 5-40. These instructions have been
identified as mandatory for continued airworthiness.
    Failure to accomplish these instructions could result in an
unsafe condition [i.e., reduced controllability of the airplane].
    EASA previously issued [EASA] AD 2012-0156 [which corresponds to
FAA AD 2014-03-12, Amendment 39-17749 (79 FR 11693, March 3, 2014)
(``AD 2014-03-12'')], requiring the actions described in Dassault
Falcon 2000 AMM Chapter 5-40 (DGT 113876) at Revision 17.
    Since that [EASA] AD was issued, Dassault published Revision 18
of Dassault Falcon 2000 AMM Chapter 5-40 (DGT 113876), containing
new and/or more restrictive maintenance tasks and introducing (among
other changes) the Corrosion Prevention and Control Programme.
    For the reason described above, this [EASA] AD retains the
requirements of EASA AD 2012-0156, which is superseded, and requires
accomplishment of the actions specified in Dassault Falcon 2000 AMM
Chapter 5-40 (DGT 113876) at Revision 18 * * * .

    You may examine the MCAI in the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0306.

Comments

    We gave the public the opportunity to participate in developing
this final rule. We received no comments on the NPRM or on the
determination of the cost to the public.

Conclusion

    We reviewed the relevant data and determined that air safety and
the public interest require adopting this final rule as proposed,
except for minor editorial changes. We have determined that these minor
changes:
     Are consistent with the intent that was proposed in the
NPRM for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR part 51

    Dassault Aviation has issued Chapter 5-40, Airworthiness
Limitations, DGT 113876, Revision 19, dated November 2017, of the
Dassault Falcon 2000 Maintenance Manual. This service information
describes instructions applicable to airworthiness and safe life
limitations. This service information is reasonably available because
the interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects 195 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:
    We have determined that revising the maintenance or inspection
program takes an average of 90 work-hours per operator, although this
figure may vary from operator to operator. In the past, we have
estimated that this action takes 1 work-hour per airplane. Since
operators incorporate maintenance or inspection program changes for
their affected fleet(s), we have determined that a per-operator
estimate is more accurate than a per-airplane estimate. Therefore, we
estimate the total cost per operator to be $7,650 (90 work-hours x $85
per work-hour).

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2018-19-25 Dassault Aviation: Amendment 39-19426; Docket No. FAA-
2018-0306; Product Identifier 2018-NM-039-AD.

(a) Effective Date

    This AD is effective November 2, 2018.

(b) Affected ADs

    This AD affects AD 2010-26-05, Amendment 39-16544 (75 FR 79952,
December 21, 2010) (``AD 2010-26-05''); and AD 2014-03-12, Amendment
39-17749 (79 FR 11693, March 3, 2014) (``AD 2014-03-12'').

(c) Applicability

    This AD applies to all Dassault Aviation Model FALCON 2000
airplanes, certificated in any category, all serial numbers.

(d) Subject

    Air Transport Association (ATA) of America Code 05, Time limits/
maintenance checks.

(e) Reason

    This AD was prompted by manufacturer revisions to the airplane
maintenance manual (AMM) that introduce new or more restrictive
maintenance requirements and airworthiness limitations. We are
issuing this AD to prevent reduced controllability of the airplane.

(f) Compliance

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

(g) Revision of Maintenance or Inspection Program

    Within 90 days after the effective date of this AD, revise the
maintenance or inspection program, as applicable, to incorporate the
information specified in Chapter 5-40, Airworthiness Limitations,
DGT 113876, Revision 19, dated November 2017, of the Dassault Falcon
2000 Maintenance Manual. The initial compliance times for doing the
tasks are at the time specified in Chapter 5-40, Airworthiness
Limitations, DGT 113876, Revision 19, dated November 2017, of the
Dassault Falcon 2000 Maintenance Manual, or within 90 days after the
effective date of this AD, whichever occurs later; except as
required by paragraphs (g)(1) through (g)(3) of this AD. The term
``LDG'' in the ``First Inspection'' column of any table in Chapter
5-40, Airworthiness Limitations, DGT 113876, Revision 19, dated
November 2017, of the Dassault Falcon 2000 Maintenance Manual, means
total airplane landings. The term ``FH'' in the ``First Inspection''
column of any table in Chapter 5-40, Airworthiness Limitations, DGT
113876, Revision 19, dated November 2017, of the Dassault Falcon
2000 Maintenance Manual, means total flight hours. The term ``FC''
in the ``First Inspection'' column of any table in Chapter 5-40,
Airworthiness Limitations, DGT 113876, Revision 19, dated November
2017, of the Dassault Falcon 2000 Maintenance Manual, means total
flight cycles.
    (1) For Task 30-11-09-350-801 identified in the service
information specified in the introductory text of paragraph (g) of
this AD, the initial compliance time is the later of the times
specified in paragraphs (g)(1)(i) and (g)(1)(ii) of this AD.
    (i) At the earlier of the times specified in paragraphs
(g)(1)(i)(A) and (g)(1)(i)(B) of this AD.
    (A) Prior to the accumulation of 2,400 total flight hours or
2,000 total flight cycles, whichever occurs first.
    (B) Within 2,400 flight hours or 2,000 flight cycles after April
7, 2014 (the effective date of AD 2014-03-12), whichever occurs
first.
    (ii) Within 30 days after April 7, 2014 (the effective date of
AD 2014-03-12).
    (2) For Task 52-20-00-610-801-01 identified in the service
information specified in the introductory text of paragraph (g) of
this AD, the initial compliance time is within 24 months after April
7, 2014 (the effective date of AD 2014-03-12).
    (3) The limited service life of part number F2MA721512100 is
3,750 total flight cycles on the part or 6 years since the
manufacturing date of the part, whichever occurs first.

(h) No Alternative Actions or Intervals

    After the maintenance or inspection program has been revised as
required by paragraph (g) of this AD, no alternative actions (e.g.,
inspections), or intervals, may be used unless the actions, or
intervals, are approved as an alternative method of compliance
(AMOC) in accordance with the procedures specified in paragraph
(j)(1) of this AD.

(i) Terminating Actions for Other ADs

    (1) Accomplishing the actions required by this AD terminates all
of the requirements of AD 2014-03-12.
    (2) Accomplishing the actions required by paragraph (g) of this
AD terminates the requirements of paragraph (g) of AD 2010-26-05 for
all Dassault Aviation Model FALCON 2000 airplanes.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Section, Transport Standards Branch, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the International Section, send it to the attention of
the person identified in paragraph (k)(2) of this AD. Information
may be emailed to: [email protected]. Before using any
approved AMOC, notify your appropriate principal inspector, or
lacking a principal inspector, the manager of the local flight
standards district office/certificate holding district office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, International
Section, Transport Standards Branch, FAA; or the European Aviation
Safety Agency (EASA); or Dassault Aviation's EASA Design
Organization Approval (DOA). If approved by the DOA, the approval
must include the DOA-authorized signature.

(k) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA AD 2017-0236, dated November 30, 2017, for related
information. This MCAI may be found in the AD docket on the internet
at http://www.regulations.gov by searching for and locating Docket
No. FAA-2018-0306.
    (2) For more information about this AD, contact Tom Rodriguez,
Aerospace Engineer, International Section, Transport Standards
Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone
and fax<PHONE_NUMBER>.

(l) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) Chapter 5-40, Airworthiness Limitations, DGT 113876,
Revision 19, dated November 2017, of the Dassault Falcon 2000
Maintenance Manual.
    (ii) Reserved.
    (3) For service information identified in this AD, contact
Dassault Falcon Jet Corporation, Teterboro Airport, P.O. Box 2000,
South Hackensack, NJ 07606; telephone<PHONE_NUMBER>; internet http://www.dassaultfalcon.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call
206-231-3195.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Des Moines, Washington, on September 14, 2018.
John P. Piccola,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2018-20924 Filed 9-27-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 172 (Thursday, September 7, 2017)]
[Notices]
[Pages 42399-42407]
[FR Doc No: 2017-18935]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81510; File No. SR-BatsBZX-2017-53]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To List and Trade Shares of the
WisdomTree CBOE Russell 2000 PutWrite Strategy Fund, a Series of the
WisdomTree Trust, Under Rule 14.11(c)(3), Index Fund Shares

August 31, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 18, 2017, Bats BZX Exchange, Inc. (``Exchange'' or ``BZX'')
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 Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to list and trade shares of the
WisdomTree CBOE Russell 2000 PutWrite Strategy Fund, a series of the
WisdomTree Trust, under Rule 14.11(c)(3) (``Index Fund Shares''). The
text of the proposed rule change is available at the Exchange's Web
site at www.bats.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
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the

places specified in Item IV below. The Exchange has prepared summaries,
set forth in Sections A, B, and C below, of the most significant 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 list and trade shares (``Shares'') of the
WisdomTree CBOE Russell 2000 PutWrite Strategy Fund (``Fund'') under
Rule 14.11(c)(3), which governs the listing and trading of Index Fund
Shares on the Exchange. The Fund will be an index-based exchange traded
fund (``ETF'').
    The Shares will be offered by the WisdomTree Trust (``Trust''),
which was established as a Delaware statutory trust on December 15,
2005. The Trust is registered with the Commission as an investment
company and has filed a registration statement on Form N-1A
(``Registration Statement'') with the Commission on behalf of the
Fund.\3\
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    \3\ See Post-Effective Amendment No. 595 to Registration
Statement on Form N-1A for the Trust, dated July 27, 2017 (File Nos.
333-132380 and 811-21864). The descriptions of the Fund and the
Shares contained herein are based on information in the Registration
Statement.
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    The Fund's investment objective is to seek investment results that
track the price and yield performance, before fees and expenses, of the
CBOE Russell 2000 PutWrite Index (``Index''). The Index was developed
and is maintained by the Chicago Board Options Exchange, Inc. (``CBOE''
or the ``Index Provider''), used under license from The Frank Russell
Company. None of the Trust, WisdomTree Asset Management, Inc. (the
``Adviser''), Mellon Capital Management (the ``Sub-Adviser''), State
Street Bank and Trust Company (the ``Administrator, ``Custodian,'' and
``Transfer Agent''), or Foreside Fund Services, LLC (the
``Distributor'') is affiliated with the Index Provider.
    The Index tracks the value of a passive investment strategy, which
consists of selling (or ``writing'') Russell 2000 Index put options
(``RUT Puts'') and investing the sale proceeds in one-month Treasury
bills (``RUT Strategy''). The RUT Puts are struck at-the-money and are
sold on a monthly basis, usually the third Friday of the month (i.e.,
the ``Roll Date''), which matches the expiration date of the RUT Puts.
All RUT Puts are standardized options traded on the CBOE. The Index
consists of only two components: RUT Puts and one-month Treasury bills.
    The Exchange is submitting this proposed rule change because the
Index for the Fund does not meet the listing requirements of Rule
14.11(c)(5) applicable to an Index that consists of both U.S. Component
Stocks \4\ and Fixed Income Securities,\5\ which requires that the
equity and fixed income component securities separately meet the
criteria set forth in Rule 14.11(c)(3)(A)(i) and 14.11(c)(4),
respectively. Specifically, the Fund does not meet all of the
``generic'' listing requirements of Rule 14.11(c)(3)(A)(i), applicable
to the listing of Index Fund Shares based upon an index of U.S.
Component Stocks. Rule 14.11(c)(3)(A)(i) sets forth the requirements to
be met by components of an index or portfolio of U.S. Component Stocks.
Because the Index consists primarily of RUT Puts, rather than ``U.S.
Component Stocks'' as defined in Rule 14.11(c)(1)(D), the Index does
not satisfy the requirements of Rule 14.11(c)(3)(A)(i).\6\ The Fixed
Income Security component of the Index, which consists of only one-
month Treasury bills, meets the ``generic'' listing requirements of
Rule 14.11(c)(4).
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    \4\ As defined in Rule 14.11(c)(1)(D), the term ``U.S. Component
Stock'' shall mean an equity security that is registered under
Sections 12(b) or 12(g) of the Act, or an American Depositary
receipt, the underlying equity security of which is registered under
Sections 12(b) or 12(g) of the Act.
    \5\ As defined in Rule 14.11(c)(4), the term ``Fixed Income
Security'' shall mean debt securities that are notes, bonds,
debentures or evidence of indebtedness that include, but are not
limited to, U.S. Department of Treasury securities (``Treasury
Securities''), government-sponsored entity securities (``GSE
Securities''), municipal securities, trust preferred securities
supranational debt and debt of a foreign country or subdivision
thereof.
    \6\ The Exchange notes that the Russell 2000 Index has been
previously approved by the Commission under Section 19(b)(2) of the
Act in connection with the listing and trading of FLEX Options and
Quarterly Index Options, as well as other securities. See, e.g.,
Securities Exchange Act Release Nos. 32694 (July 29, 1993), 58 FR
41814 (July 5, 1993) (approving the listing and trading of FLEX
Options based on the Russell 2000 Index); 32693 (July 29, 1993), 58
FR 41817 (August 5, 1993) (approving the listing and trading of
Quarterly Index Option based on the Russell 2000 Index). Rule
14.11(c)(3)(A)(i)(e) provides that all securities in the applicable
index or portfolio shall be U.S. Component Stocks listed on a
national securities exchange and shall be NMS Stocks as defined in
Rule 600 under Regulation NMS of the Act. Each component stock of
the Russell 2000 Index is a U.S. Component Stock that is listed on a
national securities exchange and is an NMS Stock. Options are
excluded from the definition of NMS Stock. The Fund and the Index
meet all of the requirements of the listing standards for Index Fund
Shares in Rule 14.11(c)(3), except the requirements in Rule
14.11(c)(3)(A)(i)(a)-(e), as the Index consists of options on U.S.
Component Stocks. The Russell 2000 Index consists of U.S. Component
Stocks and satisfies the requirements of Rule 14.11(c)(3)(A)(i)(a)-
(e).
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    The Shares will conform to the initial and continued listing
criteria under Rule 14.11(c), except that the Index will not meet the
requirements of Rule 14.11(c)(3)(A)(i)(a)-(e) in that the Index will
consist of one series of options based on U.S. Component Stocks (i.e.,
RUT Puts), rather than U.S. Component Stocks. The Exchange notes that
the Commission has previously approved a fund that employs a very
similar strategy.\7\
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    \7\ See Securities Exchange Act Release Nos. 74675 (April 8,
2015), 80 FR 20038 (April 14, 2015) (order approving proposed rule
change to list shares of the Wisdom Tree Put Write Strategy Fund)
and 77045 (February 3, 2016), 81 FR 6916 (February 9, 2016) (order
approving a proposed rule change relating to the index underlying
the WisdomTree Put Write Strategy Fund).
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WisdomTree CBOE Russell 2000 PutWrite Strategy Fund Index Methodology
    The Fund seeks to track the performance of an underlying index, the
CBOE Russell 2000 PutWrite Index (``Index''). The Index is based on a
passive investment strategy which consists of overlapping hypothetical
investments in a single series of exchange-listed Russell 2000 Index
options (``RUT Puts'') over a money market account hypothetically
invested in one-month Treasury bills. Specifically, the Index
hypothetically writes at-the-money RUT Puts on a monthly basis, usually
on the third Friday of the month (i.e., the Roll Date), which matches
the expiration date of the hypothetical RUT Puts. All RUT Puts
hypothetically invested in by the Index are standardized options traded
on the CBOE. At each Roll Date, any settlement loss in the Index based
on the expiring RUT Puts is financed by the Treasury bill account and a
new batch of hypothetical at-the-money RUT Puts is sold. Revenue from
their sale is added to the Index's hypothetical Treasury bill account.
On each Roll Date, the revenue from the hypothetical sale of RUT Puts
is hypothetically invested separately at the one-month Treasury bill
rate, and where applicable, any one-month Treasury bills purchased in
the prior month are deemed to mature and hypothetically invested in new
one-month Treasury bills at the one-month Treasury bill rate. As stated
above, all investments used to determine Index value are hypothetical.
Fund's Investment Methodology
    Under Normal Market Conditions,\8\ the Fund will invest not less
than 80%

of its assets in RUT Puts and one month or three-month U.S. Treasury
bills. The Fund may invest up to 20% of its net assets (in the
aggregate) in other investments, that are not included in the Index,
but which the Adviser or the Sub-Adviser believes will help the Fund to
track the Index and that will be disclosed daily (``Other Assets'').
The Fund's investment strategy will be designed to write a sequence of
one-month, at-the-money, RUT Puts and invest cash and Other Assets
targeted to achieve one-month Treasury bill rates. The number of RUT
Puts written will vary from month to month, but will be limited to
permit the amount held in the Fund's investment in Treasury bills to
finance the maximum possible loss from final settlement of the RUT
Puts. According to the Registration Statement, the Fund will generally
use a sampling strategy in seeking to track the Index.
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    \8\ The term ``Normal Market Conditions'' includes, but is not
limited to, the absence of trading halts in the applicable financial
markets generally; operational issues causing dissemination of
inaccurate market information or system failures; or force majeure
type events such as natural or man-made disaster, act of God, armed
conflict, act of terrorism, riot or labor disruption, or any similar
intervening circumstance. In response to adverse market, economic,
political, or other conditions, the Fund reserves the right to
invest in U.S. government securities, other money market instruments
(as defined below), and cash, without limitation, as determined by
the Adviser or Sub-Adviser. In the event the Fund engages in these
temporary defensive strategies that are inconsistent with its
investment strategies, the Fund's ability to achieve its investment
objectives may be limited.
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    The new RUT Puts will be struck and sold on a monthly basis on the
Roll Date, (i.e., the same Roll Date at that used by the Index), which
matches the expiration date of the current RUT Puts. The strike price
of the new RUT Puts will be based on the strike price of Russell 2000
Index put options listed on the CBOE with the closest strike price
below the last value of the Russell 2000 Index reported before 11:00
a.m. ET. For example, if the last Russell 2000 Index value reported
before 11:00 a.m. ET is 1,137.02 and the closest listed Russell 2000
Index put option with a strike price below 1,137.02 is 1,130, then the
1,130 strike RUT put option will be sold by the Fund.
    Russell 2000 Index options traded on CBOE are highly liquid, with
average daily trading volume in 2016 of 71,365 contracts, with a
notional size per contract of $117,169. The Exchange represents that
the daily trading volume of at-the-money 30-day RUT Puts on each of the
three recent Roll Dates was as follows: For Roll Date of April 21, 2017
(expiry May 19, 2017), strike price of 1375, 315 contracts on Roll
Date, 209 average contracts per day through expiration; for Roll Date
of May 19, 2017 (expiry June 16, 2017), strike price of 1370, 1,133
contracts on Roll Date, 701 average contracts per day through
expiration; and for Roll Date of June 16, 2017 (expiry July 21, 2017),
strike price of 1400, 545 contracts on Roll Date, 527 average contracts
per day through expiration.\9\ Moreover, the proceeds of the sales of
the RUT Puts will be invested in U.S. Treasury bills, which are also
highly liquid instruments.
---------------------------------------------------------------------------

    \9\ Source: CBOE.
---------------------------------------------------------------------------

    The daily high, low and last reported sales prices on each of the
Roll Dates for RUT Puts at-the-money are as follows: Roll Date of April
21, 2017 (expiry May 19, 2017, strike price of 1375, daily high:
$23.54, low: $21.88, last: $22.40; Roll Date of May 19, 2017 (expiry
June 16, 2017), strike price of 1370, daily high: $27.39, low: $20.15,
last: $23.97; and Roll Date of June 16, 2017 (expiry July 21, 2017),
strike price of 1400, daily high: $24.90, low: $18.46, last:
$18.67.\10\
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    \10\ Source: CBOE.
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    The Exchange estimates that on launch date, the Fund would hold
approximately $2.5-$5.0 million in cash and cash equivalents (e.g.,
one-month Treasury bills). This estimate is based on a minimum of
100,000-200,000 Shares being created at an estimated initial offering
price of $25 per Share.
    The Exchange believes that sufficient protections are in place to
protect against market manipulation of the Fund's Shares and RUT Puts
for several reasons: (i) Surveillance by the Exchange, CBOE \11\ and
the Financial Industry Regulatory Authority (``FINRA'') designed to
detect violations of the federal securities laws and self-regulatory
organization (``SRO'') rules; (ii) the large number of financial
instruments tied to the specified securities; and (iii) the ETF
creation/redemption arbitrage mechanism tied to the large pool of
liquidity of the Fund's underlying investments, as more fully described
below.
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    \11\ The Exchange notes that CBOE is a member of the Intermarket
Surveillance Group (``ISG'').
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    Trading in the Shares and the underlying Fund investments will be
subject to the federal securities laws and Exchange, CBOE and FINRA
rules and surveillance programs.\12\ In this regard, the Exchange has
in place a surveillance program for transactions in ETFs to ensure the
availability of information necessary to detect and deter potential
manipulations and other trading abuses, thereby making the Shares less
readily susceptible to manipulation as assets in the portfolio--
comprised primarily of RUT Puts and U.S. Treasury bills--will be
acquired in extremely liquid and highly regulated markets.
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    \12\ The Exchange notes that CBOE is a member of the Option
Price Regulatory Surveillance Authority, which was established in
2006, to provide efficiencies in looking for insider trading and
serves as a central organization to facilitate collaboration in
insider trading and investigations for the U.S. options exchanges.
For more information, see http://www.cboe.com/aboutcboe/legal/departments/orsareg.aspx.
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    Russell 2000 index options are among the most liquid options in the
U.S. and derive their value from the actively traded Russell 2000 Index
components. RUT Puts are cash-settled with no delivery of stocks or
ETFs, and trade in competitive auction markets with price and quote
transparency. The Exchange believes the highly regulated Russell 2000
Index options markets and the broad base and scope of the Russell 2000
Index make securities that derive their value from the index, including
RUT Puts, less susceptible to market manipulation in view of market
capitalization and liquidity of the Russell 2000 Index components,
price and quote transparency, and arbitrage opportunities.
    Because the pricing of the Shares is tied to the Fund's underlying
assets (RUT Puts and U.S. Treasury bills), all of which are traded in
efficient, diversified and liquid markets, the Exchange also expects
the liquidity in the congruent creation/redemption arbitrage mechanism
to keep the Shares' market pricing in line such that the Shares'
pricing would not materially differ from their net asset value. The
Exchange believes that the efficiency and liquidity of the markets for
RUT Puts, related derivatives, and U.S. Treasury bills are sufficiently
great to deter fraudulent or manipulative acts associated with the
Fund's Shares price. Coupled with the extensive surveillance programs
of the SROs described above, the Exchange does not believe that trading
in the Fund's Shares would present manipulation concerns.
Other Assets
    The Fund may invest up to 20% of its net assets (in the aggregate)
in Other Assets. Other Assets includes only the following: Short-term,
high quality securities issued or guaranteed by the U.S. government and
non-U.S. governments,\13\ and each of their agencies and
instrumentalities; U.S. government sponsored enterprises; repurchase
agreements backed by U.S. government and non-U.S. government
securities; money market mutual funds; deposit and other obligations of
U.S. and non-U.S. banks and financial institutions (``money market

instruments''); \14\ Russell 2000 ETF put options,\15\ Russell 2000
Index futures and/or options on Russell 2000 Index futures; \16\ total
return swaps; \17\ other exchange traded products (``ETPs''); \18\ non-
exchange-traded registered open-end investment companies (i.e., mutual
funds); and variable or floating interest rate securities.\19\ The
foregoing investments shall include buying the applicable derivative
instrument or selling the applicable derivative instrument (i.e.,
writing the applicable put option) and investing the proceeds.
---------------------------------------------------------------------------

    \13\ The Treasury securities in which the Fund may invest will
include variable rate Treasury securities, whose rates are adjusted
daily (or at such other increment as may later be determined by the
Department of the Treasury) to generally correspond with the rate
paid on one-month Treasury securities.
    \14\ All money market instruments acquired by the Fund will be
rated investment grade, except that a Fund may invest in unrated
money market instruments that are deemed by the Adviser or Sub-
Adviser to be of comparable quality to money market securities rated
investment grade. The term ``investment grade,'' for purposes of
money market instruments only, is intended to mean securities rated
A1 or A2 by one or more nationally recognized statistical rating
organizations.
    \15\ The Fund may invest up to 10% of its assets in over-the-
counter Russell 2000 put options (``OTC Russell 2000 Index put
options'').
    \16\ The Fund will limit its direct investments in futures and
options on futures to the extent necessary for the Adviser to claim
the exclusion from regulation as a ``commodity pool operator'' with
respect to the Fund under Rule 4.5 promulgated by the Commodity
Futures Trading Commission (``CFTC''), as such rule may be amended
from time to time. Under Rule 4.5 as currently in effect, the Fund
would limit its trading activity in futures and options on futures
(excluding activity for ``bona fide hedging purposes,'' as defined
by the CFTC) such that it will meet one of the following tests: (i)
Aggregate initial margin and premiums required to establish its
futures and options on futures positions will not exceed 5% of the
liquidation value of the Fund's portfolio, after taking into account
unrealized profits and losses on such positions; or (ii) aggregate
net notional value of its futures and options on futures positions
will not exceed 100% of the liquidation value of the Fund's
portfolio, after taking into account unrealized profits and losses
on such positions. The exchange-listed futures contracts in which
the Fund may invest will be listed on exchanges in the U.S. Each of
the exchange-listed futures contracts in which the Fund may invest
will be listed on exchanges that are members of ISG.
    \17\ The Fund may use total return swaps to create positions
equivalent to investments in RUT Puts and the component securities
underlying the Russell 2000 Index. The Fund's investments in total
return swap agreements will be backed by investments in U.S.
government securities in an amount equal to the exposure of such
contracts.
    \18\ The Fund may invest in shares of both taxable and tax-
exempted money market funds. When used herein, ETPs may include,
without limitation, Index Fund Shares (as described in Rule
14.11(c)); Linked Securities (as described in Rule 14.11(d));
Portfolio Depositary Receipts (as described in Rule 14.11(b));
Trust-Issued Receipts (as described in Rule 14.11(f)); Commodity-
Based Trust Shares (as described in Rule 14.11(e)(4)); Currency
Trust Shares (as described in Rule 14.11(e)(5)); Commodity Index
Trust Shares (as described in Rule 14.11(e)(6)); Trust Units (as
described in Rule 14.11(e)(9)); Managed Fund Shares (as described in
Rule 14.11(i)), and closed-end funds. The ETPs in which the Fund may
invest all will be listed and traded on U.S. exchanges. The Fund may
invest in the securities of ETPs registered under the 1940 Act
consistent with the requirements of Section 12(d)(1) of the 1940 Act
or any rule, regulation or order of the Commission or interpretation
thereof. The Fund will only make such investments in conformity with
the requirements of Section 817 of the Internal Revenue Code of
1986. The ETPs in which the Fund may invest will primarily be index-
based ETFs that hold substantially all of their assets in securities
representing a specific index. The Fund will not invest in leveraged
(e.g., 2X, -2X, 3X, or -3X) ETPs.
    \19\ The Fund may invest in securities (in addition to U.S.
Treasury securities, described above) that have variable or floating
interest rates which are readjusted on set dates (such as the last
day of the month) in the case of variable rates or whenever a
specified interest rate change occurs in the case of a floating rate
instrument. Variable or floating interest rates generally reduce
changes in the market price of securities from their original
purchase price because, upon readjustment, such rates approximate
market rates. Accordingly, as interest rates decrease or increase,
the potential for capital appreciation or depreciation is less for
variable or floating rate securities than for fixed rate
obligations.
---------------------------------------------------------------------------

Investment Restrictions
    The Fund may hold up to an aggregate of 15% of its net assets in
illiquid assets (calculated at the time of investment). The Fund will
monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid assets. Illiquid assets include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.\20\
---------------------------------------------------------------------------

    \20\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the Securities Act of 1933 (15 U.S.C.
77a).
---------------------------------------------------------------------------

    The Fund will not invest in any non-U.S. equity securities. The
Fund's investments will be consistent with the Fund's investment
objective and will not be used to enhance leverage.\21\
---------------------------------------------------------------------------

    \21\ The Fund will include appropriate risk disclosure in its
offering documents, including leveraging risk. Leveraging risk is
the risk that certain transactions of a fund, including a fund's use
of derivatives, may give rise to leverage, causing a fund to be more
volatile than if it had not been leveraged. To mitigate leveraging
risk, the Adviser will segregate or earmark liquid assets or
otherwise cover the transactions that give rise to such risk. See 15
U.S.C. 80a-18; Investment Company Act Release No. 10666 (April 18,
1979), 44 FR 25128 (April 27, 1979); Dreyfus Strategic Investing,
Commission No-Action Letter (June 22, 1987); Merrill Lynch Asset
Management, L.P., Commission No-Action Letter (July 2, 1996).
---------------------------------------------------------------------------

    In order to reduce interest rate risk, the Fund will generally
maintain a weighted average portfolio maturity of 180 days or less on
average (not to exceed 18 months) and will not purchase any money
market instrument with a remaining maturity of more than 397 calendar
days. The ``average portfolio maturity'' of a Fund is the average of
all current maturities of the individual securities in the Fund's
portfolio. The Fund's actual portfolio duration may be longer or
shorter depending on market conditions.
    The Fund intends to qualify each year as a regulated investment
company (a ``RIC'') under Subchapter M of the Internal Revenue Code of
1986, as amended.\22\ The Fund will invest its respective assets, and
otherwise conduct its operations, in a manner that is intended to
satisfy the qualifying income, diversification and distribution
requirements necessary to establish and maintain RIC qualification
under Subchapter M. The Fund is to be considered ``non-diversified.'' A
non-diversified classification means that the Fund is not limited by
the 1940 Act with regard to the percentage of total assets that be
invested in the securities of a single issuer. As a result, the Fund
may invest more of its total assets in the securities of a single
issuer or a smaller number of issuers than if it were classified as a
diversified fund.
---------------------------------------------------------------------------

    \22\ 26 U.S.C. 851.
---------------------------------------------------------------------------

Creation and Redemption of Shares
    According to the Registration Statement, the Fund will issue and
redeem Shares on a continuous basis at net asset value (``NAV''),\23\
only in large blocks of shares (``Creation Units''), in transactions
with Authorized Participants. Creation Units generally will consist of
50,000 Shares, though this may change from time to time. Creation Units
are not expected to consist of less than 25,000 Shares.
---------------------------------------------------------------------------

    \23\ The NAV of the Fund's Shares generally will be calculated
once daily Monday through Friday as of the close of regular trading
on the New York Stock Exchange (NYSE''), generally 4:00 p.m. ET (the
``NAV Calculation Time''). NAV per Share will be calculated by
dividing the Fund's net assets by the number of Fund shares
outstanding.
---------------------------------------------------------------------------

    The consideration for purchase of a Creation Unit of the Fund
generally will consist of either (i) the in-kind deposit of a
designated portfolio of securities (the ``Deposit Securities'') per
Creation

Unit and the ``Cash Component'' (defined below), computed as described
below or (ii) the cash value of the Deposit Securities (``Deposit
Cash'') and the ``Cash Component,'' computed as described below.
Because non-exchange traded derivatives and certain listed derivatives
are not currently eligible for in-kind transfer, they will be
substituted with an amount of cash of equal value (i.e., Deposit Cash)
when the Fund processes purchases of Creation Units in-kind.
Specifically, the Fund will not accept exchange-traded or over-the-
counter options, exchange traded futures (or options on futures), and
total return swaps as Deposit Securities.
    When accepting purchases of Creation Units for cash, the Fund may
incur additional costs associated with the acquisition of Deposit
Securities that would otherwise be provided by an in-kind purchase.
Together, the Deposit Securities or Deposit Cash, as applicable, and
the Cash Component constitute the ``Fund Deposit,'' which represents
the minimum initial and subsequent investment amount for a Creation
Unit of the Fund. The Cash Component is an amount equal to the
difference between the NAV of the Shares (per Creation Unit) and the
market value of the Deposit Securities or Deposit Cash, as applicable.
The Cash Component serves the function of compensating for any
difference between the NAV per Creation Unit and the market value of
the Deposit Securities or Deposit Cash, as applicable.
    A portfolio composition file, to be sent via the National
Securities Clearing Corporation (``NSCC''), will be made available on
each business day, prior to the opening of business on the Exchange
(currently 9:30 a.m. ET) containing a list of the names and the
required amount of each security in the Deposit Securities to be
included in the current Fund Deposit for the Fund (based on information
about the Fund's portfolio at the end of the previous business day). In
addition, on each business day, the estimated Cash Component, effective
through and including the previous business day, will be made available
through NSCC. The Fund Deposit is subject to any applicable adjustments
as described in the Registration Statement.
    All purchase orders must be placed by an ``Authorized
Participant.'' An Authorized Participant must be either a broker-dealer
or other participant in the Continuous Net Settlement System
(``Clearing Process'') of the NSCC or a participant in The Depository
Trust Company (``DTC'') with access to the DTC system, and must execute
an agreement with the Distributor that governs transactions in the
Fund's Creation Units. In-kind portions of purchase orders will be
processed though the Clearing Process when it is available.
    Shares of the Fund may be redeemed only in Creation Units at their
NAV next determined after receipt of a redemption request in proper
form by the Fund through the Distributor and only on a business day.
The Fund, through the NSCC, will make available immediately prior to
the opening of business on each business day, the list of the names and
quantities of the Fund's portfolio securities that will be applicable
(subject to possible amendment or correction) to redemption requests
received in proper form on that day (``Fund Securities''). Redemption
proceeds for a Creation Unit will be paid either in-kind or in cash or
a combination thereof, and Fund Securities and Deposit Securities may
differ. With respect to in-kind redemptions of the Fund, redemption
proceeds for a Creation Unit will consist of Fund Securities plus cash
in an amount equal to the difference between the NAV of the Shares
being redeemed, as next determined after a receipt of a request in
proper form, and the value of the Fund Securities (the ``Cash
Redemption Amount''). In the event that the Fund Securities have a
value greater than the NAV of the Shares, a compensating cash payment
equal to the differential will be required to be made by or through an
Authorized Participant by the redeeming shareholder. Notwithstanding
the foregoing, at the Trust's discretion, an Authorized Participant may
receive the corresponding cash value of the securities in lieu of the
in-kind securities representing one or more Fund Securities.\24\
Because non-exchange traded derivatives and certain listed derivatives
are not eligible for in-kind transfer, they will be substituted with an
amount of cash of equal value when the Fund processes redemptions of
Creation Units in-kind. Specifically, the Fund will transfer the
corresponding cash value of exchange-traded options, exchange-traded
futures, exchange-traded options on futures contracts, and total return
swap agreements in lieu of in-kind securities.
---------------------------------------------------------------------------

    \24\ The Adviser represents that, to the extent the Trust
effects the redemption of Shares in cash, the value of the
redemption payment will equal the NAV per share.
---------------------------------------------------------------------------

    For an order involving a Creation Unit to be effectuated at the
Fund's NAV on a particular day, it must be received by the Distributor
by or before the deadline for such order (``Order Cut-Off Time''). The
Order Cut-Off Time for creation and redemption orders for the Fund will
be as described in the Registration Statement, but not later than 4:00
p.m. ET. A standard creation or redemption transaction fee (as
applicable) will be imposed to offset transfer and other transaction
costs that may be incurred by the Fund.
Availability of Information
    The Trust's Web site (www.wisdomtree.com), which will be publicly
available prior to the public offering of Shares, will include a form
of the prospectus for the Fund that may be downloaded. The Web site
will include additional quantitative information updated on a daily
basis, including, for the Fund: (1) The most recently reported NAV,
mid-point of the bid/ask spread at the time of calculation of such NAV
(the ``Bid/Ask Price''),\25\ and a calculation of the premium and
discount of the Bid/Ask Price against the NAV; and (2) data in chart
format displaying the frequency distribution of discounts and premiums
of the daily Bid/Ask Price against the NAV, within appropriate ranges,
for each of the four previous calendar quarters.
---------------------------------------------------------------------------

    \25\ The Bid/Ask Price of the Fund will be determined using the
midpoint of the highest bid and the lowest offer on the Exchange as
of the time of calculation of the Fund's NAV. The records relating
to Bid/Ask Prices will be retained by the Fund and its service
providers.
---------------------------------------------------------------------------

    On each business day, before commencement of trading in Shares
during Regular Trading Hours on the Exchange, the Trust will disclose
on its Web site the following information regarding each portfolio
holding, as applicable to the type of holding: Ticker symbol, CUSIP
number or other identifier, if any; a description of the holding
(including the type of holding, such as the type of swap); the identity
of the security, index or other asset or instrument underlying the
holding, if any; for options, the option strike price; quantity held
(as measured by, for example, par value, notional value or number of
shares, contracts or units); maturity date, if any; effective date, if
any; coupon rate, if any; market value of the holding; and the
percentage weighting of the holding in the Fund's portfolio. The Web
site information will be publicly available at no charge.
    In addition, a portfolio composition file, which will include the
security names and quantities of securities and other assets required
to be delivered in exchange for the Fund's Shares, together with
estimates and actual cash components, will be publicly disseminated
prior to the opening of the Exchange via the NSCC. The portfolio

will represent one Creation Unit of the Fund. Authorized Participants
may refer to the portfolio composition file for information regarding
RUT Puts, short-term U.S. Treasury Securities, money market
instruments, and any other instrument that may comprise the Fund's
portfolio on a given day.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and its Form N-
CSR and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder
Reports will be available free upon request from the Trust, and those
documents and the Form N-CSR may be viewed on screen or downloaded from
the Commission's Web site at www.sec.gov. Information regarding market
price and trading volume for the Shares will be continually available
on a real-time basis throughout the day on brokers' computer screens
and other electronic services. Information regarding the previous day's
closing price and trading volume information for the Shares will be
published daily in the financial section of newspapers. Quotation and
last sale information for the Shares and any ETPs it which it invests
will be available via the Consolidated Tape Association (``CTA'') high-
speed line. Quotation and last sale information for U.S. exchange-
listed options contracts cleared by The Options Clearing Corporation
will be available via the Options Price Reporting Authority. The intra-
day, closing and settlement prices of exchange-traded portfolio assets,
including ETPs, futures and options will be readily available from the
securities exchanges and futures exchanges trading such securities and
futures, as the case may be, automated quotation systems, published or
other public sources, or online information services such as Bloomberg
or Reuters. Price information on fixed income portfolio securities,
including money market instruments, and other Fund assets traded in the
over-the-counter markets, is available from major broker-dealer firms
or market data vendors, as well as from automated quotation systems,
published or other public sources, or online information services. In
addition, the value of the Index will be published by one or more major
market data vendors every 15 seconds during Regular Trading Hours \26\
on the Exchange. Information about the Index constituents, the
weighting of the constituents, the Index's methodology and the Index's
rules will be available at no charge on the Index Provider's Web site
at www.CBOE.com.
---------------------------------------------------------------------------

    \26\ As defined in Rule 1.5(w), the term ``Regular Trading
Hours'' means the time between 9:30 a.m. and 4:00 p.m. Eastern Time.
---------------------------------------------------------------------------

    In addition, the Intraday Indicative Value (``IIV''), as defined in
Rule 14.11(c)(3)(C), will be widely disseminated at least every 15
seconds during Regular Trading Hours by one or more major market
vendors.\27\ All Fund holdings will be included in calculating the IIV.
---------------------------------------------------------------------------

    \27\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available IIV's
taken from the CTA or other data feeds.
---------------------------------------------------------------------------

    The dissemination of the IIV is intended to allow investors to
determine the value of the underlying portfolio of the Fund on a daily
basis and to approximate that value throughout the trading day. The
intra-day, closing and settlement prices of debt securities and money
market instruments will be readily available from published and other
public sources or on-line information services. Price information
regarding investment company securities, including ETFs, will be
available from on-line information services and from the Web site for
the applicable investment company security.
    Additional information regarding the Trust and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosures policies,
distributions and taxes is included in the Registration Statement. All
terms relating to the Fund that are referred to, but not defined in,
this proposed rule change are defined in the Registration Statement.
Initial and Continued Listing
    The Shares will conform to the initial and continued listing
criteria under Bats Rule 14.11(c)(3), except that the Index will not
meet the requirements of Rule 14.11(c)(3)(A)(i)(a)-(e) in that the
Index will consist of one series of options based on U.S. Component
Stocks (i.e., RUT Puts), rather than U.S. Component Stocks. The
Exchange represents that, for initial and/or continued listing, the
Fund will be in compliance with Rule 10A-3 \28\ under the Act, as
provided by Rule 14.10. A minimum of 100,000 Shares for the Fund will
be outstanding at the commencement of trading on the Exchange. The
Exchange will obtain a representation from the issuer of the Shares
that the NAV per Share will be calculated daily and that the NAV and
will be made available to all market participants at the same time.
---------------------------------------------------------------------------

    \28\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Funds. The Exchange will halt trading in
the Shares under the conditions specified in BZX Rule 11.18. Trading
may be halted because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. These may
include: (1) The extent to which trading is not occurring in the
securities and/or the financial instruments composing the daily
disclosed portfolio of the Funds; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares also will be
subject to Rule 14.11(c)(1)(B)(iv), which sets forth circumstances
under which Shares of a Fund may be halted.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. The Exchange will
allow trading in the Shares from 8:00 a.m. until 5:00 p.m. Eastern Time
and has the appropriate rules to facilitate transactions in the Shares
during all trading sessions. As provided in BZX Rule 11.11(a), the
minimum price variation for quoting and entry of orders in securities
traded on the Exchange is $0.01, with the exception of securities that
are priced less than $1.00, for which the minimum price variation for
order entry is $0.0001.
Surveillance
    The Exchange believes that its surveillance procedures are adequate
to properly monitor the trading of the Shares on the Exchange during
all trading sessions and to deter and detect violations of Exchange
rules and the applicable federal securities laws. Trading of the Shares
through the Exchange will be subject to the Exchange's surveillance
procedures for derivative products, including Index Fund Shares. The
issuer has represented to the Exchange that it will advise the Exchange
of any failure by the Fund to comply with the continued listing
requirements, and, pursuant to its obligations under Section 19(g)(1)
of the Exchange Act, the Exchange will surveil for compliance with the
continued listing requirements. FINRA conducts certain cross-market
surveillances on behalf of the Exchange pursuant to a regulatory
services agreement. The

Exchange is responsible for FINRA's performance under this regulatory
services agreement. If the Fund is not in compliance with the
applicable listing requirements, the Exchange will commence delisting
procedures under Exchange Rule 14.12.
    The Exchange or FINRA, on behalf of the Exchange, will communicate
as needed regarding trading in the Shares, futures contracts, ETPs, and
exchange-traded options contracts with other markets and other entities
that are members of the ISG and may obtain trading information
regarding trading in the Shares, futures contracts, exchange-traded
options contracts and ETPs from such markets and other entities. In
addition, the Exchange may obtain information regarding trading in the
Shares, futures contracts, exchange-traded options contracts, and ETPs
from markets and other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement.\29\ All futures contracts (and options on futures), listed
options and ETPs held by the Fund will be traded on U.S. exchanges, all
of which are members of ISG or are exchanges with which the Exchange
has in place a comprehensive surveillance sharing agreement. In
addition, the Exchange is able to access, as needed, trade information
for certain fixed income securities held by the Fund reported to
FINRA's Trade Reporting and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

    \29\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all of the components
of the portfolio for the Fund may trade on exchanges that are
members of the ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (1) The procedures for purchases
and redemptions of Shares in Creation Units (and that Shares are not
individually redeemable); (2) BZX Rule 3.7, which imposes suitability
obligations on Exchange members with respect to recommending
transactions in the Shares to customers; (3) how information regarding
the IIV and Index value is disseminated; (4) the risks involved in
trading the Shares during the Pre-Opening \30\ and After Hours Trading
Sessions \31\ when an updated Intraday Indicative Value will not be
calculated or publicly disseminated; (5) the requirement that members
deliver a prospectus to investors purchasing newly issued Shares prior
to or concurrently with the confirmation of a transaction; and (6)
trading information.
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    \30\ The Pre-Opening Session is from 8:00 a.m. to 9:30 a.m.
Eastern Time.
    \31\ The After Hours Trading Session is from 4:00 p.m. to 5:00
p.m. Eastern Time.
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    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Funds. Members purchasing Shares from the Funds for
resale to investors will deliver a prospectus to such investors. The
Information Circular will also discuss any exemptive, no-action, and
interpretive relief granted by the Commission from any rules under the
Act.
    In addition, the Information Circular will reference that each Fund
is subject to various fees and expenses described in the Registration
Statement. The Information Circular will also disclose the trading
hours of the Shares of the Funds and the applicable NAV calculation
time for the Shares. The Information Circular will disclose that
information about the Shares of the Funds will be publicly available on
the Funds' Web site. In addition, the Information Circular will
reference that the Trust is subject to various fees and expenses
described in each Fund's Registration Statement.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \32\ in general and Section 6(b)(5) of the Act \33\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
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    \32\ 15 U.S.C. 78f.
    \33\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed on the Exchange pursuant to the initial and
continued listing criteria in Bats Rule 14.11(c)(3), except that the
Index will consist solely of RUT Puts and Treasury bills, rather than
U.S. Component Stocks. The Exchange believes that the proposed rule
change is designed to prevent fraudulent and manipulative acts and
practices in that the Shares will be listed and traded on the Exchange
pursuant to the listing criteria in Bats Rule 14.11(c). The Exchange
believes that its surveillances, which generally focus on detecting
securities trading outside of their normal patterns which could be
indicative of manipulative or other violative activity, and associated
surveillance procedures are adequate to properly monitor the trading of
the Shares on the Exchange during all trading sessions and to deter and
detect violations of Exchange rules and the applicable federal
securities laws. FINRA and the Exchange, as applicable, may each obtain
information via ISG from other exchanges that are members of ISG, and
in the case of the Exchange, from other market or entities with which
the Exchange has entered into a comprehensive surveillance sharing
agreement.
    The Index Provider is not registered as an investment adviser or
broker-dealer and is not affiliated with any broker-dealers. The
Adviser is not registered as, or affiliated with, any broker-dealer.
The Sub-Adviser is affiliated with multiple broker-dealers and has
implemented a ``fire wall'' with respect to such broker-dealers and
their personnel regarding access to information concerning the
composition and/or changes to the Index. In addition, Sub-Adviser
personnel who make decisions regarding the Fund's portfolio are subject
to procedures designed to prevent the use and dissemination of material
nonpublic information regarding the Fund's portfolio. The Adviser and
the Index Provider have represented that a fire wall exists around the
respective personnel who have access to information concerning changes
and adjustments to the Index. All exchange-listed options, futures
contracts and ETPs held by the Fund will be traded on U.S. exchanges,
all of which are members of ISG or are exchanges with which the
Exchange has in place a comprehensive surveillance sharing agreement.
    Under Normal Market Conditions, not less than 80% of the Fund's
total assets will be comprised of RUT Puts and U.S. Treasury bills,
although the Fund may also invest up to 20% of its total assets in
Other Assets. Other Assets includes only the following: short-term,
high quality securities issued or guaranteed by the U.S. government and
non-U.S. governments, and each of their agencies

and instrumentalities; U.S. government sponsored enterprises;
repurchase agreements backed by U.S. government and non-U.S. government
securities; money market mutual funds; money market instruments;
Russell 2000 ETF put options,\34\ Russell 2000 Index futures and/or
options on Russell 2000 Index futures; \35\ total return swaps; \36\
other ETPs; non-exchange-traded registered open-end investment
companies (i.e., mutual funds); and variable or floating interest rate
securities.
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    \34\ The Fund may invest up to 10% of its net assets in OTC
Russell 2000 Index put options.
    \35\ The Fund's investments in listed futures contracts will be
backed by investments in U.S. government securities in an amount
equal to the exposure of such contracts.
    \36\ The Fund's investments in total return swap agreements will
be backed by investments in U.S. government securities in an amount
equal to the exposure of such contracts.
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    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
consistent with Commission guidance. The Fund therefore will not use
derivative instruments to enhance leverage. The Fund will not invest in
non-U.S. equity securities.
    All statements and representations made in this filing regarding
the index composition, the description of the portfolio or reference
assets, limitations on portfolio holdings or reference assets,
dissemination and availability of index, reference asset, and intraday
indicative values, and the applicability of Exchange rules specified in
this filing shall constitute continued listing requirements for the
Fund. The issuer has represented to the Exchange that it will advise
the Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. FINRA conducts certain cross-market
surveillances on behalf of the Exchange pursuant to a regulatory
services agreement. The Exchange is responsible for FINRA's performance
under this regulatory services agreement. If the Fund is not in
compliance with the applicable listing requirements, the Exchange will
commence delisting procedures under Bats Rule 14.12.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily every day the
NYSE is open, and that the NAV will be made available to all market
participants at the same time. In addition, a large amount of
information will be publicly available regarding the Fund and the
Shares, thereby promoting market transparency.
    Moreover, the IIV will be widely disseminated by one or more major
market data vendors at least every 15 seconds during Regular Trading
Hours. On each business day, before commencement of trading in the
Shares on the Exchange during Regular Trading Hours, the Fund will
disclose on its Web site the portfolio that will form the basis for the
Fund's calculation of NAV at the end of the business day. Information
regarding market price and trading volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services, and quotations
and last sale information will be available via the CTA high-speed
line. Information relating to U.S. exchange-listed options is available
via the Options Price Reporting Authority. Quotation and last sale
information for the Shares and any ETPs it which it invests will be
available via the CTA high-speed line. Quotation and last sale
information for U.S. exchange-listed options contracts cleared by The
Options Clearing Corporation will be available via the Options Price
Reporting Authority. The intra-day, closing and settlement prices of
exchange-traded portfolio assets, including ETPs, futures and exchange-
traded options contracts will be readily available from the securities
exchanges and futures exchange trading such securities and futures, as
the case may be, automated quotation systems, published or other public
sources, or online information services such as Bloomberg or Reuters.
Such price information on fixed income portfolio securities, including
money market instruments, and other Fund assets traded in the over-the-
counter markets, including bonds and money market instruments is
available from major broker-dealer firms or market data vendors, as
well as from automated quotation systems, published or other public
sources, or online information services. The Web site for the Fund will
include the prospectus for the Fund and additional data relating to NAV
and other applicable quantitative information. Moreover, prior to
commencement of trading, the Exchange will inform its Members in an
Information Circular of the special characteristics and risks
associated with trading the Shares. If the Exchange becomes aware that
the NAV is not being disseminated to all market participants at the
same time, it will halt trading in the Shares until such time as the
NAV is available to all market participants. With respect to trading
halts, the Exchange may consider all relevant factors in exercising its
discretion to halt or suspend trading in the Shares of the Funds.
Trading also may be halted because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the securities and/or the financial instruments composing
the daily disclosed portfolio of each Fund; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance of a
fair and orderly market are present. Trading in the Shares also will be
subject to Rule 14.11(c)(1)(B)(iv), which sets forth circumstances
under which Shares of a Fund may be halted. If the IIV of any of [sic]
the Fund or value of the Index are [sic] not being disseminated as
required, the Exchange may halt trading during the day in which the
interruption to the dissemination of the IIV or index value occurs. In
addition, as noted above, investors will have ready access to
information regarding the Fund's holdings, the IIV, the Fund's
portfolio, and quotation and last sale information for the Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an additional type of exchange-traded product that will enhance
competition among market participants, to the benefit of investors and
the marketplace. As noted above, the Shares will be subject to the
existing trading surveillances, which are designed to detect violations
of Exchange rules and federal securities laws applicable to trading on
the Exchange. The Exchange or FINRA, on behalf of the Exchange, will
communicate as needed regarding trading in the Shares, ETPs, futures
contracts, and exchange-traded options contracts with other market and
other entities that are members of ISG and may obtain trading
information in the Shares, futures contracts, exchange-traded options
contracts, and ETPs from such markets and other entities. In addition,
the Exchange may obtain information regarding trading in the Shares,
futures contracts, exchange-traded options contracts, and ETPs from
markets and other entities that are members of ISG or with which the

Exchange has in place a comprehensive surveillance sharing agreement.
In addition, as noted above, investors will have ready access to
information regarding the Fund's holdings, the IIV, and quotation and
last sale information for the Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

(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 purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of an
additional type of Index Fund Shares that will enhance competition
among market participants, to the benefit of investors and the
marketplace.

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding, or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change; or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-BatsBZX-2017-53 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BatsBZX-2017-53. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing will also 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-BatsBZX-2017-53 and should be
submitted on or before September 28, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
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    \37\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18935 Filed 9-6-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: October 8, 2008 (Volume 73, Number 196)]
[Notices]
[Page 59029-59031]
[DOCID:fr08oc08-122]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[U.S. DOT Docket No. NHTSA-2008-0156]

Reports, Forms, and Record Keeping Requirements

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Notice of request for public comment on proposed collection of
information.

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SUMMARY: Before a Federal agency can collect certain information from
the public, it must receive approval from the Office of Management and
Budget (OMB). Under procedures established by the Paperwork Reduction
Act of 1995, before seeking OMB approval, Federal agencies must solicit
public comment on proposed collections of information, including
extensions and reinstatements of previously approved collections. This
document describes one collection of information for which NHTSA
intends to seek OMB approval.

DATES: Comments must be received on or before December 8, 2008.

ADDRESSES: Comments should refer to the docket number and be submitted
to: U.S. Department of Transportation, Docket Management Facility, West
Building, 1200 New Jersey Ave., SE., Room W12-140, Washington, DC
20590. Docket hours are 9 a.m. to 5 p.m., Monday through Friday, except
Federal holidays. You may call the docket at<PHONE_NUMBER>. You may also
submit comments electronically at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Berning, Contracting Officer's
Technical Representative, Office of Behavioral Safety Research (NTI-
131), National Highway Traffic Safety Administration, 1200 New Jersey
Ave, SE., Washington, DC 20590. Ms. Berning's phone number is 202-366-
5587 and the email address is<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act of 1995,
before an agency submits a proposed collection of information to OMB
for approval, it must publish a document in the Federal Register
providing a 60-day comment period and otherwise consult with members of
the public and affected agencies concerning each proposed collection of
information. The OMB has promulgated regulations describing what must
be included in such a document. Under OMB's regulations (at 5 CFR
1320.8(d)), an agency must ask for public comment on the following:

    (i) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
    (ii) The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
    (iii) How to enhance the quality, utility, and clarity of the
information to be collected; and
    (iv) How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
    In compliance with these requirements, NHTSA asks public comment on
the following proposed collection of information:

Estimate of Crash Risk of Impaired Driving

    Type of Request--New information collection requirement.
    OMB Clearance Number--None.
    Form Number--This collection of information uses no standard forms.
    Requested Expiration Date of Approval--June 30, 2011.
    Summary of the Collection of Information--NHTSA proposes to conduct
a case-control study to assess the crash risk of alcohol-positive,
drug-positive, and alcohol plus drug-positive drivers. Case-control
studies are studies designed to identify factors that may contribute to
a condition of interest (in this case crash involvement) by comparing a
group of individuals who show the condition of interest (e.g., a motor
vehicle crash) with a group who do not (e.g., drivers not involved in a
crash). Case-control studies are an epidemiologically proven
alternative to designs such as randomized controlled trials that cannot
be used to evaluate injury-related outcomes. A key element of the case-
control design is the matching of cases (e.g., crash-involved drivers)
with controls (non-crashes-involved drivers) by exposure conditions
(e.g., day of the week, time of the day, same street, same spot, same
driving direction, etc.) and then assessing the increased or decreased
risk attributable to other measured factors, such as alcohol and other
drugs. Data collection would take place for at least one year in one
community. Researchers would conduct 2,500 surveys with crash-involved
drivers and 5,000 non-crash involved drivers. Crashes occurring within
the selected site's boundaries that meet the study design criteria
(e.g., tow-away, injury crashes, and fatal crashes) and that are not on
limited access highways (e.g., interstate roadways) will be eligible
for inclusion in the study. The research team will consist of a data
collector (who is also a licensed phlebotomist) and an on-duty law
enforcement officer. The police department dispatcher will notify that
officer of all crashes that are called in and the team will respond to
crashes reported during the shift. The team will use a sampling
procedure to determine which crashes to attend. The team's police
officer will then make contact with the on-scene investigating officer
and then will briefly introduce the data collector to the driver(s).
The data collector will then ask the driver (or drivers) to participate
in a voluntary, confidential, research survey.
    The survey includes questions about alcohol and drug use and
impaired driving, a Blood Alcohol Concentration (BAC) breath test,
collection of an oral fluid specimen, and collection of a blood sample.
The results of the breath and biological samples will not be known to
the researchers on site. Breath alcohol test results will be downloaded
and analyzed later. Biological samples will be analyzed later at a
central laboratory by a trained toxicologist.
    Drivers must be at least age 16 to participate (18 years to provide
a blood sample), speak English, not be in emotional or physical
distress, not be driving a commercial vehicle, and be able to
understand that they are being asked to voluntarily participate in a
confidential research study and that participation will have no effect
on their status with the police, courts, hospital, insurance companies,
or department of motor vehicles. For those potential participants who
are transported to a hospital, researchers will collaborate with the
emergency departments to collect study data from those who are capable
and able to voluntarily agree to participate in the study. Similar data
will be collected on fatally injured drivers through the Medical
Examiner's Office. The human subject protections procedures of each
hospital will be followed as well as procedures of the Federal Office
of Human Research Protections. For those potential participants who are
arrested, the data collector will approach the driver after all
processing by the police is complete.
    The team will randomly select control-case drivers matched to crash
cases. Cases will be matched in terms of roadway location, direction of
travel, day of week, and time of driving. A road sign will indicate
``Voluntary Survey Ahead.'' The team's police officer will flag down
the first available vehicle after the data collector indicates that he/
she is ready to commence data collection. The data collector will
invite the driver to participate in a voluntary confidential research
survey and explain the details of the data collection. The same survey
questions as noted above will be used. There will be two completed
control cases (surveys) for each crash included in the study, for a
total of 5,000 control cases.
    Description of the Need for the Information and Proposed Use of the
Information--The National Highway Traffic Safety Administration's
(NHTSA) mission is to save lives, prevent injuries, and reduce
healthcare and other economic costs associated with motor vehicle
crashes. The agency's goal is to reduce the rate of fatalities in .08+
BAC crashes per 100 million vehicle miles traveled to 0.45 in 2011 (the
rate in 2006 was .50). NHTSA also has the responsibility to reduce
drug-involved driving. Little is known about the actual crash risk
associated with drivers having consumed psychoactive drugs other than
alcohol, alone and in combination with alcohol. This study would
significantly add to the body of knowledge about that important issue,
providing critical data on the crash risk of alcohol-positive and drug-
positive drivers on the road. The results of the study will be used by
NHTSA to help guide policy development and countermeasure programs
intended to reduce the risk on our highways presented by impaired
drivers.
    Description of the Likely Respondents (Including Estimated Number,
and Proposed Frequency of Response to the Collection of Information)--
Under this proposed effort, the Contractor would conduct a pilot test
of approximately 100 cases of the survey procedures and then spend
approximately one year collecting 2,500 crash cases and 5,000 randomly
selected control cases in one community.
    Estimate of the Total Annual Reporting and Record Keeping Burden
Resulting from the Collection of Information--NHTSA estimates that
participants will spend an average of 20 minutes each to complete the
survey, for a total of 2,508 hours for the 100 pilot case respondents
and 7,500 study respondents. The respondents would not incur any
reporting cost or record keeping burden from the data collection.

    Authority: 44 U.S.C. Section 3506(c)(2)(A).

    Issued on October 8, 2008.
Jeff Michael,
Acting Associate Administrator, Research and Program Development.
 [FR Doc. E8-23742 Filed 10-7-08; 8:45 am]

BILLING CODE 4910-59-P