[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Notices]
[Pages 61641-61647]
[FR Doc No: 2017-28000]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82381; File No. SR-NYSE-2017-69]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rules Relating to Investment Company Units, Index-Linked
Securities and Managed Trust Securities

December 21, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on December 15, 2017, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes (1) to amend Supplementary Material .01 and
.02 to NYSE Rule 5.2(j)(3) to provide for the inclusion of cash in an
index underlying a series of Investment Company Units, which amendments
conform to amendments to NYSE Arca Rule 5.2-E(j)(3) previously approved
by the Securities and Exchange Commission (``Commission''); (2) to
amend NYSE Rule 5.2(j)(6) to exclude Investment Company Units,
securities defined in Section 2 of NYSE Rule 8P (Trading of Certain
Exchange Traded Products) and Index-Linked Securities when applying the
quantitative generic listing criteria applicable to Equity Index-Linked
Securities, which amendments conform to amendments to NYSE Arca 5.2-
E(j)(6) previously approved by the Commission; and (3) to amend NYSE
Rule 8.700 (``Managed Trust Securities'') to permit the use of swaps on
stock indices, fixed income indices, commodity indices, commodities,
currencies, currency indices, or interest rates, and to add EURO STOXX
50 Volatility Index (VSTOXX[supreg]) futures and swaps on VSTOXX to the
financial instruments that an issue of Managed Trust Securities may
hold, which amendments conform to amendments to NYSE Arca Rule 8.700-E
previously approved by the Commission. The proposed rule change is
available on the Exchange's website at www.nyse.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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes (1) to amend Supplementary Material .01 and
.02 to NYSE Rule 5.2(j)(3) to provide for the inclusion of cash in an
index underlying a series of Investment Company Units (``Units''),
which amendments conform to amendments to NYSE Arca Rule 5.2-E(j)(3)
previously approved by the

Securities and Exchange Commission (``Commission''); \4\ (2) to amend
NYSE Rule 5.2(j)(6) to exclude Investment Company Units, securities
defined in Section 2 of NYSE Rule 8P (Trading of Certain Exchange
Traded Products) and Index-Linked Securities when applying the
quantitative generic listing criteria applicable to Equity Index-Linked
Securities, which amendments conform to amendments to NYSE Arca 5.2-
E(j)(6) previously approved by the Commission; \5\ and (3) to amend
NYSE Rule 8.700 (``Managed Trust Securities'') to permit the use of
swaps on stock indices, fixed income indices, commodity indices,
commodities, currencies, currency indices, or interest rates, and to
add VSTOXX futures and swaps on VSTOXX to the financial instruments
that an issue of Managed Trust Securities may hold, which amendments
conform to amendments to NYSE Arca Rule 8.700-E previously approved by
the Commission.\6\
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    \4\ See Securities Exchange Act Release No. 80777 (May 25, 2017)
(SR-NYSEArca-2017-30) (order approving proposed rule change to amend
Commentary .01 and Commentary.02 to NYSE Arca Equities Rule
5.2(j)(3) to provide for the inclusion of cash in an index
underlying a series of Investment Company Units).
    \5\ See Securities Exchange Act Release No. 81442 (August 18,
2017), 82 FR 40178 (August 24, 2017) (SR-NYSEArca-2017-54) (order
approving a proposed rule change to amend the generic listing
criteria applicable to Equity Index-Linked Securities).
    \6\ See Securities Exchange Act Release Nos. 80254 (March 15,
2017), 82 FR 14548 (March 21, 2017) (SR-NYSEArca-2016-96) (order
approving proposed rule change to amend NYSE Arca Equities Rule
8.700 and to list and trade shares of the Managed Emerging Markets
Trust under NYSE Arca Equities Rule 8.700); 82066 (November 13,
2017), 82 FR 54434 (November 17, 2017) (SR-NYSEArca-2017-85) (order
approving proposed rule change to amend NYSE Arca Rule 8.700-E and
to list and trade shares of the ProShares European Volatility
Futures ETF).
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Amendments to NYSE Rule 5.2(j)(3)
    NYSE Rule 5.2(j)(3) permits the trading, whether by listing or
pursuant to unlisted trading privileges (``UTP'') of Units. The
Exchange proposes to amend Supplementary Material .01 and .02 to NYSE
Rule 5.2(j)(3) to permit trading of Units based on an index or
portfolio that includes cash as a component. While Units, like mutual
funds, will generally hold an amount of cash, Rule 5.2(j)(3) currently
provides that components of an index or portfolio underlying a series
of Units consist of securities--namely, US Component Stocks, Non-US
Component Stocks, Fixed Income Securities or a combination thereof. As
described below, the proposed amendments to Supplementary Material .01
and .02 to Rule 5.2(j)(3) would permit inclusion of cash as an index or
portfolio component.
    Currently, Supplementary Material .01(a)(A) provides that an
underlying index or portfolio of US Component Stocks \7\ must meet
specified criteria. The Exchange proposes to amend Supplementary
Material .01(a)(A) to provide that the components of an index or
portfolio underlying a series of Units may also include cash. In
addition, the percentage weighting criteria in Supplementary Material
.01(a)(A)(1) through (4) each would be amended to make clear that such
criteria would be applied only to the US Component Stocks portion of an
index or portfolio. For example, in applying the criteria in proposed
Supplementary Material .01(a)(A)(1),\8\ if 85% of the weight of an
index consists of US Component Stocks and 15% of the index weight is
cash, the requirement that component stocks (excluding Exchange Traded
Products) that in the aggregate account for at least 90% of the weight
of the US Component Stocks portion of the index or portfolio (excluding
such Exchange Traded Products) each will have a minimum market value of
$75 million minimum would be applied only to the 85% portion consisting
of US Component Stocks.
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    \7\ Rule 5.2(j)(3) defines ``US Component Stock'' as 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.
    \8\ Supplementary Material .01(a)(A)(1) provides that component
stocks (excluding Units and Exchange Traded Products) that in the
aggregate account for at least 90% of the weight of the US Component
Stocks portion of the index or portfolio (excluding Units and
securities defined in Section 2 of Rule 8P, collectively ``Exchange
Traded Products'') each will have a minimum market value of at least
$75 million.
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    Supplementary Material .01 (a)(B), which relates to international
or global indexes or portfolios, would be amended to provide that
components of an index or portfolio underlying a series of Units may
consist of (a) only Non-US Component Stocks, (b) Non-US Component
Stocks and cash, (c) both US Component Stocks and Non-US Component
Stocks, or (d) US Component Stocks, Non-US Component Stocks and cash.
In addition, the percentage weighting criteria in Supplementary
Material .01(a)(B)(1) through (4) each would be amended to make clear
that such criteria would be applied only to the combined US and Non-US
Component Stocks portions of an index or portfolio.
    Supplementary Material .02 to NYSE Rule 5.2(j)(3) provides generic
criteria applicable to trading of Units whose underlying index or
portfolio includes Fixed Income Securities.\9\ Currently, Supplementary
Material .02(a)(1) provides that an underlying index or portfolio must
consist of Fixed Income Securities. The Exchange proposes to amend
Supplementary Material .02(a)(1) to provide that the index or portfolio
may also include cash. In addition, the percentage weighting criteria
in Supplementary Material .02(a)(2), (a)(4) and (a)(6) each would be
amended to make clear that such criteria would be applied only to the
Fixed Income Securities portion of an index or portfolio. For example,
in applying the criteria in the proposed amendments to Supplementary
Material .01(a)(2),\10\ if 90% of the weight of an index or portfolio
consists of Fixed Income Securities and 10% of the index weight is
cash, the requirement that Fixed Income Security components accounting
for at least 75% of the Fixed Income Securities portion of the weight
of the index or portfolio each will have a minimum original principal
amount outstanding of $100 million would be applied only to the 90%
portion consisting of Fixed Income Securities.
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    \9\ As defined in Supplementary Material .02 to NYSE Rule
5.2(j)(3), Fixed Income Securities are 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 a
subdivision thereof.
    \10\ Supplementary Material .01(a)(2) provides that Fixed Income
Security components that in aggregate account for at least 75% of
the Fixed Income Securities portion of the weight of the index or
portfolio each will have a minimum original principal amount
outstanding of $100 million or more.
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    The Exchange notes that the Commission has previously approved
Exchange rules allowing portfolios held by issues of Managed Fund
Shares (actively-managed exchange-traded funds) to include cash.\11\
Like the provision in Supplementary Material .01(c) to Rule 8.600,
which states that there is no limit to cash holdings by an issue of
Managed Fund Shares traded under Supplementary Material .01 to Rule
8.600, there is no proposed limit to the weighting of cash in an index
underlying a series of Units. The Exchange believes this is appropriate
in that cash does not, in itself, impose investment or market risk.
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    \11\ See Supplementary Material .01(c) to NYSE Rule 8.600,
approved in Securities Exchange Act Release No. 80214 (March 10,
2017), 82 FR 14050 (March 16, 2017) (SR-NYSE-2016-44) (order
approving proposed rule change to allow the Exchange to trade
pursuant to UTP any NMS Stock listed on another national securities
exchange; establishing listing and trading requirements for Exchange
Traded Products; and adopting new equity trading rules relating to
trading halts of securities traded pursuant to UTP on the Pillar
platform).

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    The Exchange believes the proposed amendments, by permitting
inclusion of cash as a component of indexes underlying series of Units,
would provide issuers of Units with additional choice in indexes
permitted to underlie Units that are permitted to trade on the
Exchange, which would enhance competition among market participants, to
the benefit of investors and the marketplace. In addition, the proposed
amendments would provide investors with greater ability to hold Units
based on underlying indexes that may accord more closely with an
investor's assessment of market risk, in that some investors may view
cash as a desirable component of an underlying index under certain
market conditions.
Amendments to NYSE Rule 5.2 (j)(6)
    The Exchange proposes to amend NYSE Rule 5.2 (j)(6) to exclude
Investment Company Units (``Units'') and securities defined in Section
2 of NYSE Rule 8P (collectively, together with Units, ``Derivative
Securities Products''),\12\ as well as Index-Linked Securities,\13\
when applying the quantitative generic listing criteria applicable to
Equity Index-Linked Securities.\14\
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    \12\ Units are securities that represent an interest in a
registered investment company that could be organized as a unit
investment trust, an open-end management investment company, or a
similar entity, that holds securities comprising, or otherwise based
on or representing an interest in, an index or portfolio of
securities or securities in another registered investment company
that holds such securities. See NYSE Rule 5.2 (j)(3). The following
securities currently are included in Section 2 of NYSE Rule 8P:
Portfolio Depositary Receipts (Rule 8.100); Trust Issued Receipts
(Rule 8.200); Commodity-Based Trust Shares (Rule 8.201); Currency
Trust Shares (Rule 8.202); Commodity Index Trust Shares (Rule
8.203); Commodity Futures Trust Shares (Rule 8.204); Partnership
Units (Rule 8.300); Paired Trust Shares (Rule 8.400);Trust Units
(Rule 8.500); Managed Fund Shares (Rule 8.600); and Managed Trust
Securities (Rule 8.700).
    \13\ Index-Linked Securities are securities that qualify for
Exchange listing and trading under NYSE Rule 5.2(j)(6). The
securities described in Rule 5.2(j)(3), Rule 5.2(j)(6) and Section 2
of Rule 8P, as referenced above, would include securities listed on
another national securities exchange pursuant to substantially
equivalent listing rules.
    \14\ The Commission has approved amendments to NYSE Arca Rule
5.2-E(j)(6) that are substantially identical to those proposed
herein. See Securities Exchange Act Release No. 81442 (August 18,
2017), 82 FR 40178 (August 24, 2017) (SR-NYSEArca-2017-54) (order
approving a proposed rule change to amend the generic listing
criteria applicable to Equity Index-Linked Securities).
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    Equity Index-Linked Securities are securities that provide for the
payment at maturity (or earlier redemption) based on the performance of
an underlying index or indexes of equity securities, securities of
closed end management investment companies registered under the
Investment Company Act of 1940 (``1940 Act'') \15\ and/or Units.\16\ In
addition to certain other generic listing criteria, Equity Index-Linked
Securities must satisfy the generic quantitative initial and continued
listing criteria under NYSE Rule 5.2 (j)(6)(B)(I) in order to become,
and continue to be, listed and traded on the Exchange. Certain of the
applicable quantitative criteria specify minimum or maximum thresholds
that must be satisfied with respect to, for example, market value,
trading volume, and dollar weight of the index represented by a single
component or groups of components.
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    \15\ 15 U.S.C. 80-1.
    \16\ See Rule 5.2(j)(6)(B)(I)(1).
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    The applicable initial quantitative listing criteria include (i)
that each underlying index is required to have at least ten component
securities; \17\ (ii) that each component security has a minimum market
value of at least $75 million, except that for each of the lowest
dollar weighted component securities in the index that in the aggregate
account for no more than 10% of the dollar weight of the index, the
market value can be at least $50 million; (iii) that component stocks
that in the aggregate account for at least 90% of the weight of the
index each have a minimum global monthly trading volume of 1,000,000
shares, or minimum global notional volume traded per month of
$25,000,000, averaged over the last six months; (iv) that no underlying
component security represents more than 25% of the dollar weight of the
index, and the five highest dollar weighted component securities in the
index do not in the aggregate account for more than 50% of the dollar
weight of the index (60% for an index consisting of fewer than 25
component securities); and (v) that 90% of the index's numerical value
and at least 80% of the total number of component securities meet the
then current criteria for standardized option trading set forth in NYSE
Arca Rule 5.3-O; except that an index will not be subject to this last
requirement if (a) no underlying component security represents more
than 10% of the dollar weight of the index and (b) the index has a
minimum of 20 components.\18\ The applicable continued quantitative
listing criteria require that (1) no single component represent more
than 25% of the dollar weight of the index and the five highest dollar
weighted components in the index cannot represent more than 50% (or 60%
for indexes with less than 25 components) of the dollar weight of the
index, need only be satisfied at the time the index is rebalanced; \19\
and (2) component stocks that in the aggregate account for at least 90%
of the weight of the index each have a minimum global monthly trading
volume of 500,000 shares, or minimum global notional volume traded per
month of $12,500,000, averaged over the last six months.\20\
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    \17\ See Rule 5.2 (j)(6)(B)(I)(1)(a).
    \18\ See Rule 5.2 (j)(6)(B)(I)(1)(b)(i)-(iv).
    \19\ See Rule 5.2 (j)(6)(B)(I)(2)(a)(i).
    \20\ See Rule 5.2 (j)(6)(B)(I)(2)(a)(ii).
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    The Exchange proposes to amend NYSE Rule 5.2 (j)(6)(B)(I)(1)(a),
which provides that each underlying index is required to have at least
ten component securities, to provide that there will be no minimum
number of component securities if one or more issues of Derivative
Securities Products or Index-Linked Securities constitute, at least in
part, component securities underlying an issue of Equity Index-Linked
Securities. The proposed amendment to NYSE Rule 5.2 (j)(6)(B)(I)(1)(a)
also would provide that the securities described in Rule 5.2 (j)(3))
and Section 2 of Rule 8P (that is, Derivative Securities Products), and
Rule 5.2 (j)(6) (that is, Index-Linked Securities), as referenced in
proposed amended Rule 5.2 (j)(6)(B)(I)(1)(b)(2) and Rule 5.2
(j)(6)(B)(I)(2)(a) would include securities listed on another national
securities exchange pursuant to substantially equivalent listing rules.
    The Exchange also proposes to exclude Derivative Securities
Products and Index-Linked Securities from consideration when
determining whether the applicable quantitative generic thresholds have
been satisfied under the initial listing standards specified in NYSE
Rule 5.2 (j)(6)(B)(I)(1)(b)(i)-(iv) and the continued listing standards
specified in NYSE Rules 5.2 (j)(6)(B)(I)(2)(a)(i) and (ii).\21\ Thus,
for example, when

determining compliance with NYSE Rule 5.2 (j)(6)(B)(I)(1)(b)(ii),
component stocks, excluding Derivative Securities Products or Index-
Linked Securities, that in the aggregate account for at least 90% of
the remaining index weight would be required to have a minimum global
monthly trading volume of 1 million shares, or minimum global notional
volume traded per month of 25 million, averaged over the last six
months.
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    \21\ NYSE Rules 5.2 (j)(6)(B)(I)(2)(a)(i) and (ii) provide that
the Exchange will maintain surveillance procedures for securities
listed under Rule 5.2 (j)(6) and may halt trading in such securities
and will initiate delisting proceedings pursuant to Rule 5.5(m)
(unless the Commission has approved the continued trading of the
subject Index-Linked Security), if any of the standards set forth in
Rules 5.2 (j)(6)(B)(I)(1)(a) and 5.2 (j)(6)(B)(I)(1)(b)(2) are not
continuously maintained, except that: (i) The criteria that no
single component represent more than 25% of the dollar weight of the
index and the five highest dollar weighted components in the index
cannot represent more than 50% (or 60% for indexes with less than 25
components) of the dollar weight of the index, need only be
satisfied at the time the index is rebalanced (Rule 5.2
(j)(6)(B)(I)(2)(a)(i)), and (ii) component stocks that in the
aggregate account for at least 90% of the weight of the index each
will have a minimum global monthly trading volume of 500,000 shares,
or minimum global notional volume traded per month of $12,500,000,
averaged over the last six months (Rule 5.2 (j)(6)(B)(I)(2)(a)(ii)).
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    The Exchange proposes further to provide that the weighting
limitation for the five highest weighted component securities in an
index in NYSE Rules 5.2 (j)(6)(B)(I)(1)(b)(iii) and 5.2
(j)(6)(B)(I)(2)(a)(i) would apply ``to the extent applicable.'' \22\
When considered in conjunction with the proposed amendment to NYSE Rule
5.2 (j)(6)(B)(I)(1)(a) referenced above, this language would make clear
that an index that includes Derivative Securities Products or Index-
Linked Securities may include fewer than five component securities.
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    \22\ The phrase ``to the extent applicable'' also is included in
Supplementary Material .01(a)(A)(3) to NYSE Rule 5.2 (j)(3) for
Investment Company Units and Supplementary Material .01(a)(1)(C) to
NYSE Rule 8.600 for Managed Fund Shares.
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    The Exchange believes that it is appropriate to exclude Derivative
Securities Products and Index-Linked Securities from the generic
listing and continued listing criteria specified above for Equity
Index-Linked Securities because Derivative Securities Products and
Index-Linked Securities that may be included in an index or portfolio
underlying a series of Equity Index-Linked Securities are themselves
subject to specific initial and continued listing requirements of the
exchange on which they are listed. Also, Derivative Securities Products
and Index-Linked Securities would have been listed and traded on an
exchange pursuant to a filing submitted under Sections 19(b)(2) or
19(b)(3)(A) of the Act,\23\ or would have been listed by an exchange
pursuant to the requirements of Rule 19b-4(e) under the Act.\24\
Derivative Securities Products and Index-Linked Securities are
derivatively priced, and, therefore, the Exchange does not believe that
it is necessary to apply the generic quantitative criteria (e.g.,
market capitalization, trading volume, or component weighting)
applicable to securities that are not Derivative Securities Products or
Index-Linked Securities (e.g., common stocks) to such products.
Finally, by way of comparison, Derivative Securities Products are
excluded from consideration when determining whether the components of
Units satisfy the applicable listing criteria in Rule 5.2 (j)(3),\25\
and both Derivative Securities Products and Index-Linked Securities are
excluded from the applicable listing criteria for Managed Fund Shares
holding equity securities in Supplementary Material .01 to Rule
8.600.\26\
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    \23\ 15 U.S.C. 78s(b)(2); 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(e).
    \25\ See Supplementary Material .01 to NYSE Rule 5.2 (j)(3). See
also, Securities Exchange Act Release No. 57751 (May 1, 2008), 73 FR
25818 (May 7, 2008) (SR-NYSEArca-2008-29) (order approving
amendments to the eligibility criteria for components of an index
underlying Investment Company Units).
    \26\ See Supplementary Material .01 to NYSE Rule 8.600. See
also, Securities Exchange Act Release No. 78397 (July 22, 2016), 81
FR 49320 (July 27, 2016) (SR-NYSEArca-2015-110) (order approving
amendments to NYSE Arca Equities Rule 8.600 to adopt generic listing
standards for Managed Fund Shares).
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    The Exchange also proposes (1) to replace ``investment company
units'' with ``Investment Company Units'' in two places in NYSE Rule
5.2 (j)(6)(B)(I)(1) in order to conform to other usages of this term in
Exchange rules; and (2) to replace the word ``Index'' with ``index'' in
two places in Rule 5.2 (j)(6)(B)(I)(2)(a)(i) to conform to other usages
of this word in Rule 5.2 (j)(6)(B)(I)(2).
Amendments to NYSE Rule 8.700
    NYSE Rule 8.700 permits the trading, whether by listing or pursuant
to UTP, of Managed Trust Securities pursuant to UTP. The Exchange
proposes to amend NYSE Rule 8.700 to permit the use of swaps on stock
indices, fixed income indices, commodity indices, commodities,
currencies, currency indices, or interest rates, and to add VSTOXX
futures and swaps on VSTOXX to the financial instruments that an issue
of Managed Trust Securities may hold. The proposed amendments are
substantially identical to amendments to NYSE Arca Rule 8.700-E
approved by the Commission for issues of Managed Trust Securities
listed and traded on NYSE Arca, Inc.\27\
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    \27\ See note 6, supra.
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    The Exchange proposes to amend NYSE Rule 8.700(c)(1) to specify
that the trust issuing a series of Managed Trust Securities, or any
series of such trust, is not registered or required to be registered as
an investment company. This change makes clear that issuers of Managed
Trust Securities are not investment companies under the 1940 Act, and,
therefore, distinguishes issuances of Managed Trust Securities from,
for example, Managed Fund Shares traded pursuant to NYSE Rule 8.600 or
Investment Company Units traded pursuant to NYSE Rule 5.2(j)(3).
    Permitting the use of swaps as referenced above would provide
additional flexibility to an issuer of Managed Trust Securities seeking
to achieve its investment objective. For example, because the markets
for certain futures contracts may be unavailable or cost prohibitive as
compared to other derivative instruments, swaps may be an efficient
alternative for an issuer of Managed Trust Securities to obtain the
desired asset exposure. Additionally, swaps would allow parties to
replicate desired returns. As such, the increased flexibility afforded
by the ability of an issuer of Managed Trust Securities to use swaps
may enhance investor returns by facilitating the ability to more
economically seek its investment objective, thereby reducing the costs
incurred by such issuer. Permitting the use of such futures would
provide additional flexibility to an issuer of Managed Trust Securities
seeking to achieve its investment objective by allowing such issuer to
gain additional asset exposure to currencies and commodities. The
Exchange also proposes to amend NYSE Rule 8.700(c)(1) to specify cash
and cash equivalents as permitted trust holdings. Such instruments
would be held, as needed, to secure a trust's trading obligations with
respect to its positions in other financial instruments.
    With respect to adding futures or swaps on VSTOXX to the financial
instruments in which an issue of Managed Trust Securities may hold, the
Exchange believes that the proposed amendment to will provide investors
with the ability to better diversify and hedge their portfolios using
an exchange traded security without having to trade directly in
underlying futures contracts, and will facilitate the listing and
trading on the Exchange of additional Managed Trust Securities that
will enhance competition among market participants, to the benefit of
investors and the marketplace.\28\
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    \28\ The VSTOXX is based on EURO STOXX 50 Index (``Index'')
real-time option prices that are listed on the Eurex Exchange and
are designed to reflect the market expectations of near-term up to
long-term volatility by measuring the square root of the implied
variances across all options of a given time to expiration. The
Index includes 50 stocks that are among the largest free-float
market capitalization stocks from 11 Eurozone countries. For
additional information regarding VSTOXX, see Securities Exchange Act
Release No. 82066 (November 13, 2017), 82 FR 54434 (November 17,
2017) (SR-NYSEArca-2017-85) (order approving proposed rule change to
amend NYSE Arca Rule 8.700-E and to list and trade shares of the
ProShares European Volatility Futures ETF).
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2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement

under Section 6(b)(5) \29\ that an exchange have rules that are
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to remove impediments
to, and perfect the mechanism of a free and open market and, in
general, to protect investors and the public interest.
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    \29\ 15 U.S.C. 78f(b)(5).
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    The proposed rule changes are designed to perfect the mechanism of
a free and open market and, in general, to protect investors and the
public interest. The basis under the Exchange Act for this proposed
rule change is the requirement under Section 6(b)(5) that an exchange
have rules that are designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to remove impediments to, and perfect the mechanism of a free and open
market and, in general, to protect investors and the public interest.
    With respect to the proposed amendments to NYSE Rule 5.2(j)(3), the
Exchange notes that, as described above, the percentage weighting
criteria in Supplementary Material .01(a)(B)(1) through (4) to Rule
5.2(j)(3) each would be amended to make clear that such criteria would
be applied only to the combined US and Non-US Component Stocks portions
of an index or portfolio. The percentage weighting criteria in
Supplementary Material .02(a)(2), (a)(4) and (a)(6) to NYSE Rule
5.2(j)(3) each would be amended to make clear that such criteria would
be applied only to the Fixed Income Securities portion of an index or
portfolio. Such applications of the proposed amendments would assure
that the weighting requirements in Supplementary Material .01 and .02
would continue to be applied only to securities in an index or
portfolio, and would not be diluted as a result of inclusion of a cash
component. In addition, the addition of cash as a permitted component
of indexes underlying Units traded on the Exchange pursuant to Rule
19b-4(e) does not raise regulatory issues because cash does not, in
itself, impose investment or market risk and is not susceptible to
manipulation.
    The Exchange believes these proposed amendments to NYSE Rule
5.2(j)(3), by permitting inclusion of cash as a component of indexes
underlying series of Units, would provide issuers of Units with
additional choice in indexes permitted to underlie Units that are
permitted to trade on the Exchange pursuant to UTP, which would enhance
competition among market participants, to the benefit of investors and
the marketplace. In addition, the proposed amendments would provide
investors with greater ability to hold Units based on underlying
indexes that may accord more closely with an investor's assessment of
market risk.
    With respect to the proposed amendments to NYSE Rule 5.2(j)(6), the
Exchange believes that the proposed change would facilitate the listing
and trading of additional types of Equity Index-Linked Securities,
which would enhance competition among market participants, to the
benefit of investors and the marketplace. The proposed change would
also result in greater efficiencies in the listing process with respect
to Equity Index-Linked Securities by eliminating an unnecessary
consideration regarding underlying components, which would therefore
remove impediments to, and perfect the mechanism of, a free and open
market. In addition, the proposed amendment to the Equity Index-Linked
Securities listing criteria is intended to protect investors and the
public interest in that it is consistent with the manner in which
Derivative Securities Products are also excluded from consideration
when determining whether the components of an index or portfolio
underlying an issue of Units satisfy the applicable listing
criteria,\30\ and both Derivative Securities Products and Index-Linked
Securities are excluded from the applicable listing criteria for
Managed Fund Shares holding equity securities in Supplementary Material
.01 to Rule 8.600.\31\ Additionally, Equity Index-Linked Securities
would remain subject to all existing listing standards, thereby
maintaining existing levels of investor protection. The Exchange
believes that the proposed rule change is designed to prevent
fraudulent and manipulative acts and practices because the Equity
Index-Linked Securities would continue to be listed and traded on the
Exchange pursuant to the initial and continued listing criteria in Rule
5.2 (j)(6). Further, the proposed change would not impact the existing
listing process for Derivative Securities Products and Index-Linked
Securities, whereby the exchanges on which such securities are listed
must, for example, submit proposed rule changes with the Commission
prior to listing and trading.
---------------------------------------------------------------------------

    \30\ See supra, note 18.
    \31\ See supra, note 19.
---------------------------------------------------------------------------

    The Exchange believes that it is appropriate to exclude Derivative
Securities Products and Index-Linked Securities from the generic
criteria specified above for Equity Index-Linked Securities because
Derivative Securities Products and Index-Linked Securities that may be
included in an index or portfolio underlying a series of Equity Index-
Linked Securities are themselves subject to specific initial and
continued listing requirements of the exchange on which they are
listed. For example, Units listed and traded on the Exchange are
subject to the listing standards specified under NYSE Rule 5.2 (j)(3).
Also, such Derivative Securities Products and Index-Linked Securities
would have been listed and traded on an exchange pursuant to a filing
submitted under Sections 19(b)(2) or 19(b)(3)(A) of the Act,\32\ or
would have been listed by an exchange pursuant to the requirements of
Rule 19b-4(e) under the Act.\33\ The Exchange believes that
quantitative factors--such as market value, global monthly trading
volume, or weighting--when applied to index components (such as common
stocks) underlying a series of Equity Index-Linked Securities, are
relevant criteria in establishing that such series is sufficiently
broad-based to minimize potential manipulation.\34\ Derivative
Securities Products and Index-Linked Securities, however, are
derivatively priced, and, therefore, the Exchange does not believe that
it is necessary to apply the generic quantitative criteria applicable
to securities that are not Derivative Securities Products and Index-
Linked Securities (e.g., common stocks) to such products. Derivative
Securities Products are excluded from consideration on NYSE when
determining whether the components of Units satisfy the applicable
listing criteria,\35\ and both Derivative Securities

Products and Index-Linked Securities are excluded from the applicable
listing criteria for Managed Fund Shares holding equity securities in
Supplementary Material .01 to Rule 8.600. Moreover, for shares of
Derivative Securities Products that are not listed on an exchange
pursuant to an exchange's generic listing rules, the Commission must
first approve an exchange's proposed rule change under Section 19(b) of
the Act regarding a particular Derivative Securities Product or Index-
Linked Securities, which is subject to the representations and
restrictions included in such proposed rule change.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(2); 15 U.S.C. 78s(b)(3)(A).
    \33\ 17 CFR 240.19b-4(e).
    \34\ See, e.g., Securities Exchange Act Release No. 54739
(November 9, 2006), 71 FR 66693 (SR-Amex-2006-78) (order approving
generic listing standards for Portfolio Depositary Receipts and
Index Fund Shares based on international or global indexes), in
which the Commission stated that ``these standards are reasonably
designed to ensure that stocks with substantial market
capitalization and trading volume account for a substantial portion
of any underlying index or portfolio, and that when applied in
conjunction with the other applicable listing requirements, will
permit the listing only of ETFs that are sufficiently broad-based in
scope to minimize potential manipulation.''
    \35\ See Supplementary Material .01 to NYSE Rule 5.2 (j)(3). See
also Securities Exchange Act Release No. 57751 (May 1, 2008), 73 FR
25818 (May 7, 2008) (SR-NYSEArca-2008-29) (order approving
amendments to eligibility criteria for components of an index
underlying Investment Company Units), in which the Commission noted
that ``based on the trading characteristics of Derivative Securities
Products, it may be difficult for component Derivative Securities
Products to satisfy certain quantitative index criteria, such as the
minimum market value and trading volume limitations. However,
because Derivative Securities Products are themselves subject to
specific initial and continued listing requirements, the Commission
believes that it would be reasonable to exclude Derivative
Securities Products, as components, from certain index component
eligibility criteria for [Investment Company] Units.''
---------------------------------------------------------------------------

    The Exchange also believes it is appropriate to exclude Derivative
Securities Products and Index-Linked Securities from the requirement
under NYSE Rule 5.2 (j)(6)(B)(I)(1)(b)(iv) that 90% of the applicable
index's numerical value and at least 80% of the total number of
component securities will meet the criteria for standardized option
trading set forth in NYSE Arca Rule 5.3-O. NYSE Arca Rule 5.3-O
includes criteria for securities underlying option contracts approved
for listing and trading on NYSE Arca. The Exchange does not believe
that criteria in NYSE Arca Rule 5.3-O should be applied to Derivative
Securities Products and Index-Linked Securities because such securities
are subject to separate numerical and other criteria included in the
applicable exchange listing rules, including both generic listing rules
permitting listing pursuant to Rule 19b-4(e) and non-generic listing
rules. Derivative Securities Products and Index-Linked Securities that
are the subject of a Commission approval order under Section 19(b) of
the Act also are subject to specific representations made in the
applicable Rule 19b-4 filing. These include representations regarding
the existence of comprehensive surveillance agreements between the
applicable exchange and the principal markets for certain financial
instruments underlying Derivative Securities Products, or percentage
limitations on assets (e.g., non-U.S. stocks, futures and options)
whose principal market is not a member of the Intermarket Surveillance
Group (``ISG'').\36\
---------------------------------------------------------------------------

    \36\ See, e.g., Securities Exchange Act Release No. 76719
(December 21, 2015), 80 FR 80859 (December 28, 2015) (order
approving Exchange listing and trading of shares of the Guggenheim
Total Return Bond ETF (``Fund'') under NYSE Arca Equities Rule
8.600), which filing stated: ``Not more than 10% of the net assets
of the Fund in the aggregate invested in equity securities (other
than non-exchange-traded investment company securities) will consist
of equity securities whose principal market is not a member of the
ISG or is a market with which the Exchange does not have a
comprehensive surveillance sharing agreement. In addition, not more
than 10% of the net assets of the Fund in the aggregate invested in
futures contracts or exchange-traded options contracts will consist
of futures contracts or exchange-traded options contracts whose
principal market is not a member of ISG or is a market with which
the Exchange does not have a comprehensive surveillance sharing
agreement.''
---------------------------------------------------------------------------

    The Exchange believes it is appropriate to provide that the
weighting limitation for the five highest weighted component securities
in an index in NYSE Rules 5.2 (j)(6)(B)(I)(1)(b)(iii) and 5.2
(j)(6)(B)(I)(2)(a)(i) would apply ``to the extent applicable.'' When
considered in conjunction with the proposed amendment to NYSE Rule 5.2
(j)(6)(B)(I)(1)(a) referenced above, this language would make clear
that an index that includes Derivative Securities Products or Index-
Linked Securities may include fewer than five component securities. In
addition, the phrase ``to the extent applicable'' is included in
Supplementary Material .01(a)(A)(3) to NYSE Rule 5.2 (j)(3) for
Investment Company Units and Supplementary Material .01(a)(1)(C) to
NYSE Rule 8.600 for Managed Fund Shares.
    The proposed replacement of ``investment company units'' with
``Investment Company Units'' in two places in NYSE Rule 5.2
(j)(6)(B)(I)(1) is appropriate as such changes conform to other usages
of this term in Exchange rules. The proposed replacement of the word
``Index'' with ``index'' in two places in Rule 5.2
(j)(6)(B)(I)(2)(a)(i) is appropriate as such changes would conform to
other usages of this word in Rule 5.2 (j)(6)(B)(I)(2).
    The proposed amendment to NYSE Rule 8.700(c)(1) to specify that the
trust issuing a series of Managed Trust Securities is not an investment
company or similar entity makes clear that issuers of Managed Trust
Securities are not investment companies under the 1940 Act, and,
therefore, distinguishes issuances of Managed Trust Securities from,
for example, Managed Fund Shares traded under NYSE Rule 8.600 or
Investment Company Units traded under NYSE Rule 5.2(j)(3). In
permitting the use of specified swaps, the proposed amendment to NYSE
Rule 8.700 would provide additional flexibility to an issuer of Managed
Trust Securities seeking to achieve its investment objective.
Additionally, swaps would allow parties to replicate desired returns.
As such, the increased flexibility afforded by the ability of an issuer
of Managed Trust Securities to use swaps may enhance investor returns
by facilitating the ability to more economically seek its investment
objective, thereby reducing the costs incurred by such issuer. The
Exchange's proposal to amend NYSE Rule 8.700(c)(1) to specify cash and
cash equivalents as permitted trust holdings is appropriate in that
such holdings would be held, as needed, to secure its trading
obligations with respect to its positions in other financial
instruments, and, therefore, may assist a trust in fulfilling its
investment objective. Permitting the use of futures on currency indices
and commodity indices would provide additional flexibility to an issuer
of Managed Trust Securities seeking to achieve its investment objective
by allowing such issuer to gain additional asset exposure to currencies
and commodities. With respect to adding futures or swaps on VSTOXX to
the financial instruments in which an issue of Managed Trust Securities
may hold, the Exchange believes that the proposed amendment to will
provide investors with the ability to better diversify and hedge their
portfolios using an exchange traded security without having to trade
directly in underlying futures contracts.
    The Exchange has in place surveillance procedures that are adequate
to properly monitor trading in Investment Company Units, Index-Linked
Securities and Managed Trust Securities in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws. Such procedures will continue to be adequate to
properly monitor trading in Investment Company Units, Index-Linked
Securities and Managed Trust Securities in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws following implementation of the rule changes proposed
in this filing. Investment Company Units, Index-Linked Securities and
Managed Trust Securities listed and traded pursuant to NYSE Rules
5.2(j)(3), 5.2 (j)(6) and 8.700, respectively, are included within the
definition of ``security'' or ``securities'' as such terms are used in
the Exchange rules and, as such, are subject to Exchange rules and
procedures that currently govern the trading of securities on the
Exchange. Trading in the securities will be halted under the conditions
specified in NYSE Rules 5.5(g)(2)(b), 5.2 (j)(6)(E) and 8.700(e)(2)(D),
respectively.
    For these reasons, the Exchange believes that the proposal is
consistent with 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 believes the
proposed rule change will enhance competition by permitting Exchange
trading of additional types of Units, Index-Linked Securities and
Managed Trust Securities, which would 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

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

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \37\ and Rule 19b-4(f)(6) thereunder.\38\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\39\
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \38\ 17 CFR 240.19b-4(f)(6).
    \39\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \40\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \40\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-NYSE-2017-69 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2017-69. 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 website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2017-69 and should be submitted on
or before January 18, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\41\
---------------------------------------------------------------------------

    \41\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-28000 Filed 12-27-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 205 (Tuesday, October 23, 2018)]
[Notices]
[Page 53524]
[FR Doc No: 2018-23177]

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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meetings

TIME AND DATE: 3:00 p.m. on Thursday, October 25, 2018.

PLACE: The meeting will be held at the Commission's headquarters, 100 F
Street NE, Washington, DC 20549.

STATUS: This meeting will be closed to the public.

MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
    The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
    Commissioner Jackson, as duty officer, voted to consider the items
listed for the closed meeting in closed session.
    The subject matters of the closed meeting will be:
    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings;
    Resolution of litigation claims;
    Adjudicatory matters; and
    Other matters relating to enforcement proceedings.
    At times, changes in Commission priorities require alterations in
the scheduling of meeting items.

CONTACT PERSON FOR MORE INFORMATION: For further information and to
ascertain what, if any, matters have been added, deleted or postponed;
please contact Brent J. Fields from the Office of the Secretary at
(202) 551-5400.

    Dated: October 18, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018-23177 Filed 10-19-18; 11:15 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Proposed Rules]
[Pages 62024-62026]
[FR Doc No: 2016-21165]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-9056; Directorate Identifier 2016-NM-007-AD]
RIN 2120-AA64

Airworthiness Directives; Saab AB, Saab Aeronautics (Formerly
Known as Saab AB, Saab Aerosystems) Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain Saab AB, Saab Aeronautics Model SAAB 2000 airplanes. This
proposed AD was prompted by an occurrence that was reported of rudder
pedal restriction on a SAAB Model 2000 airplane with the large potable
water system (LPWS) installed, equipped with in-line heaters.

This proposed AD would require installation of shrinkable tubes on the
water piping of the basic potable water system (BPWS). We are proposing
this AD to prevent water spray in case of a failed pipe or coupling
during water filling on the ground. This condition, if not corrected,
could freeze parts of the flight control system possibly resulting in
reduced control of the airplane.

DATES: We must receive comments on this proposed AD by October 24,
2016.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    For service information identified in this NPRM, contact Saab AB,
Saab Aeronautics, SE-581 88, Link[ouml]ping, Sweden; telephone +46 13
18 5591; fax +46 13 18 4874; email<EMAIL_ADDRESS>
Internet http://www.saabgroup.com. You may view this referenced service
information at the FAA, Transport Airplane Directorate, 1601 Lind
Avenue SW., Renton, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

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-2016-
9056; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Operations office (telephone<PHONE_NUMBER>) is in the ADDRESSES section.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Shahram Daneshmandi, Aerospace
Engineer, International Branch, ANM-116, Transport Airplane
Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356;
telephone<PHONE_NUMBER> ; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2016-9056;
Directorate Identifier 2016-NM-007-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA
Airworthiness Directive 2016-0013, dated January 14, 2016 (referred to
after this as the Mandatory Continuing Airworthiness Information, or
``the MCAI''), to correct an unsafe condition for certain Saab AB, Saab
Aeronautics Model SAAB 2000 airplanes. The MCAI states:

    An occurrence was reported of rudder pedal restriction on a SAAB
2000 aeroplane with the Large Potable Water System (LPWS) installed,
equipped with in-line heaters (options 38:201 and 38:201-1).
Subsequent investigation showed that this event was the result of a
ruptured in-line heater attachment, causing water leakage at the
inlet tubing for the in-line heater in the lower part of the forward
fuselage (Zone 116). In flight, the water froze on the rudder
control mechanism, causing the rudder pedal restriction. Analysis
after the reported event indicates that the pitch control mechanism
(including pitch disconnect/spring unit) may also be frozen, which
would prevent disconnection and normal pitch control.
    This condition, if not corrected, could result in further
occurrences of water spray, possibly resulting in reduced control of
the aeroplane.
    To address this potential unsafe condition, EASA issued
Emergency AD 2013-0172-E, to require deactivation of the LPWS.
Following that, EASA AD 2013-0172R1 introduced a temporary
alternative procedure for filling, reactivation and operation of the
LPWS.
    Finally, EASA AD 2014-0255 was issued, superseding EASA AD 2013-
0172R1, to require a modification allowing reactivating of the
system and the use of regular filling procedures.
    Although the Basic Potable Water System (BPWS) does not contain
an in-line heater, which was the major risk contributor and the
actual cause of the previous leakage events in the LPWS, a Zonal
Safety Analysis performed by SAAB concluded that the implementation
of spray shield (tube/hose) for the water piping is necessary for
the BPWS as well, to protect the flight controls and electrical
equipment from water spray in case of a failed pipe or coupling
during water filling on ground.
    Consequently SAAB developed a modification and issued Service
Bulletin (SB) 2000-38-012 to provide modification instructions to
install shrinkable tubes as spray shields.
    For reasons described above, this [EASA] AD requires
installation of shrinkable tubes on the water piping of the BPWS.

    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-2016-
9056.

Related Service Information Under 1 CFR Part 51

    Saab has issued Service Bulletin 2000-38-012, dated August 20,
2015. The service information describes how to install shrinkable tubes
on the water piping of the BPWS. 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.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of the same
type design.

Costs of Compliance

    We estimate that this proposed AD affects 7 airplanes of U.S.
registry.
    We also estimate that it would take about 6 work-hours per product
to comply with the basic requirements of this proposed AD. The average
labor rate is $85 per work-hour. Required parts would cost about $3,650
per product. Based on these figures, we estimate the cost of this
proposed AD on U.S. operators to be $29,120 or $4,160 per product.

Authority for This Rulemaking

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

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    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.

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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):

Saab AB, Saab Aeronautics (formerly known as Saab AB, Saab
Aerosystems): Docket No. FAA-2016-9056; Directorate Identifier 2016-
NM-007-AD.

(a) Comments Due Date

    We must receive comments by October 24, 2016.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to certain Saab AB, Saab Aeronautics (formerly
known as Saab AB, Saab Aerosystems) Model SAAB 2000 airplanes,
certificated in any category, serial numbers 017, 019 through 021
inclusive, 027 through 028 inclusive, 030, 034, 040, 050, and 052.

(d) Subject

    Air Transport Association (ATA) of America Code 38, Water/waste.

(e) Reason

    This AD was prompted by an occurrence that was reported of
rudder pedal restriction on a SAAB Model 2000 airplane with the
large potable water system (LPWS) installed, equipped with in-line
heaters. We are issuing this AD to prevent water spray in case of a
failed pipe or coupling during water filling on the ground. This
condition, if not corrected, could freeze parts of the flight
control system, possibly resulting in reduced control of the
airplane.

(f) Compliance

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

(g) Repair of Basic Potable Water System (BPWS)

    Within 24 months after the effective date of this AD, install
shrinkable tubes on the water piping of the BPWS, in accordance with
the Accomplishment Instructions of SAAB Service Bulletin 2000-38-
012, dated August 20, 2015.

(h) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch Aircraft Certification Office (ACO), 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 Branch/ACO, send it to ATTN: Sharam
Daneshmandi, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton,
WA 98057-3356; telephone<PHONE_NUMBER> ; fax<PHONE_NUMBER>.
Information may be emailed to<EMAIL_ADDRESS>
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. The AMOC approval letter must specifically reference this
AD.
    (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
Branch, ANM-116, Transport Airplane Directorate, FAA; or the
European Aviation Safety Agency (EASA); or Saab AB, Saab
Aerosystems' EASA Design Organization Approval (DOA). If approved by
the DOA, the approval must include the DOA-authorized signature.

(i) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA Airworthiness Directive 2016-0013, dated January 14,
2016, 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-2016-9056.
    (2) For service information identified in this AD, contact Saab
AB, Saab Aeronautics, SE-581 88, Link[ouml]ping, Sweden; telephone
+46 13 18 5591; fax +46 13 18 4874; email
<EMAIL_ADDRESS>Internet http://www.saabgroup.com. You may view this service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA.
For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.

    Issued in Renton, Washington, on August 24, 2016.
John P. Piccola, Jr.,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2016-21165 Filed 9-7-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 147 (Friday, July 31, 2015)]
[Notices]
[Pages 45699-45700]
[FR Doc No: 2015-18822]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Noise Exposure Map Notice; Receipt of Noise Compatibility Program
and Request for Review, Ted Stevens Anchorage International Airport and
Lake Hood Seaplane Base, Anchorage, Alaska

AGENCY: Federal Aviation Administration, DOT.

ACTION: Notice.

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SUMMARY: The Federal Aviation Administration (FAA) announces its
determination that the Noise Exposure Maps submitted by the Alaska
Department of Transportation & Public Facilities for Ted Stevens
Anchorage International Airport and Lake Hood Seaplane Base under the
provisions of 49 U.S.C. 47501 et. seq. (Aviation Safety and Noise
Abatement Act) are in compliance with applicable requirements. The FAA
also announces that it is reviewing a proposed Noise Compatibility
Program that was submitted for Ted Stevens Anchorage International
Airport and Lake Hood Seaplane Base and that this program will be
approved or disapproved on or before January 23, 2016.

DATES: Effective Date: The effective date of the FAA's determination on
the Noise Exposure Maps and of the start of its review of the
associated Noise Compatibility Program is July 27, 2015. The public
comment period ends September 25, 2015.

ADDRESSES: All comments, other than those properly addressed to local
land use authorities; will be considered by the FAA to the extent
practicable. Copies of the Noise Exposure Maps, the FAA's evaluation of
the maps, and the proposed Noise Compatibility Program are available
for examination by appointment at the following locations:

Federal Aviation Administration, Alaskan Region, Airports Division, 222
W. 7th Avenue, Annex Building, Rm. A36, Anchorage, Alaska 99513.
Ted Stevens Anchorage International Airport, 5000 W. International
Airport Rd. Suite C3820, Anchorage, Alaska 99502.

FOR FURTHER INFORMATION CONTACT: Leslie Grey, Federal Aviation
Administration, Anchorage, AK,

Alaskan Region Airports Division, 222 W. 7th Avenue, Box #14,
Anchorage, Alaska 99513,<PHONE_NUMBER>. Comments on the proposed Noise
Compatibility Program should also be submitted to the above office.

SUPPLEMENTARY INFORMATION: This Notice announces that the FAA finds
that the Noise Exposure Maps submitted for Ted Stevens Anchorage
International Airport and Lake Hood Seaplane Base are in compliance
with applicable requirements of 14 CFR part 150, effective July 27,
2015. Further, FAA is reviewing a proposed Noise Compatibility Program
under Part 150 in conjunction with the Noise Exposure Map which will be
approved or disapproved on or before January 23, 2016. This notice also
announces the availability of this Program for public review and
comment.
    Under 49 U.S.C., Section 47503, the Aviation Safety and Noise
Abatement Act, (the Act), an airport operator may submit to the FAA
Noise Exposure Maps which meet applicable regulations and which depict
non-compatible land uses as of the date of submission of such maps, a
description of projected aircraft operations, and the ways in which
such operations will affect such maps. The Act requires such maps to be
developed in consultation with interested and affected parties in the
local community, government agencies, and persons using the airport.
    An airport operator who has submitted Noise Exposure Maps that are
found by FAA to be in compliance with the requirements of Part 150,
promulgated pursuant to the Act, may submit a Noise Compatibility
Program for FAA approval which sets forth the measures the operator has
taken or proposes to take to reduce existing non-compatible uses and
prevent the introduction of additional non-compatible uses.
    The Alaska Department of Transportation & Public Facilities
submitted to the FAA on December 19, 2014 Noise Exposure Maps,
descriptions and other documentation that were produced during the
conducted between November 17, 2011 and December 19, 2014. It was
requested that the FAA review this material as the Noise Exposure Maps,
as described in Section 47503 of the Act, and that the noise mitigation
measures, to be implemented jointly by the airports and surrounding
communities, be approved as a Noise Compatibility Program under Section
47504 of the Act.
    The FAA has completed its review of the Noise Exposure Maps and
accompanying documentation submitted by the Alaska Department of
Transportation & Public Facilities. The documentation that constitutes
the ``Noise Exposure Maps'' as defined in Section 150.7 of Part 150
include: Figure D31 Exisitng Noise Exposure Map--2009 and Figure I1
Future Noise Exposre Map--2020 and the accompanying documentation are
in compliance with applicable requirements. This determination is
effective on July 27, 2015. FAA's determination on the airport
operator's Noise Exposure Maps is limited to a finding that the maps
were developed in accordance with the procedures contained in Appendix
A of 14 CFR part 150. Such determination does not constitute approval
of the airport operator's data, information or plans, or a commitment
to approve a Noise Compatibility Program or to fund the implementation
of that Program.
    If questions arise concerning the precise relationship of specific
properties to noise exposure contours depicted on a Noise Exposure Map
submitted under Section 47503 of the Act, it should be noted that the
FAA is not involved in any way in determining the relative locations of
specific properties with regard to the depicted noise exposure
contours, or in interpreting the Noise Exposure Maps to resolve
questions concerning, for example, which properties should be covered
by the provisions of Section 47506 of the Act. These functions are
inseparable from the ultimate land use control and planning
responsibilities of local government. These local responsibilities are
not changed in any way under Part 150 or through FAA's review of Noise
Exposure Maps. Therefore, the responsibility for the detailed
overlaying of noise exposure contours onto the map depicting properties
on the surface rests exclusively with the airport operator that
submitted those maps, or with those public agencies and planning
agencies with which consultation is required under Section 47503 of the
Act. The FAA has relied on the certification by the airport operator,
under Section 150.21 of Part 150, that the statutorily required
consultation has been accomplished.
    The FAA has formally received the Noise Compatibility Program for
Ted Stevens Anchorage International Airport and Lake Hood Seaplane
Base, also effective on July 27, 2015. Preliminary review of the
submitted material indicates that it conforms to the requirements for
the submittal of Noise Compatibility Programs, but that further review
will be necessary prior to approval or disapproval of the program. The
formal review period, limited by law to a maximum of 180 days, will be
completed on or before January 23, 2016.
    The FAA's approval or disapproval of each specific measure proposed
by an airport sponsor in a Noise Compatibility Plan is determined by
applying approval criteria prescribed in 14 CFR 150.35(b). Only
measures that meet the approval criteria can be approved and considered
for Federal funding eligibility. Note that FAA approval or disapproval
of a measure only indicates whether that measure would, if implemented,
be consistent with the purposes of 14 CFR part 150. When an ROA measure
is disapproved by the FAA, airport sponsors are not precluded from and
are encouraged to work with the FAA and their communities outside of
the rigors of the Part 150 process to implement initiatives that
provide noise benefits for the surrounding community. Approval of a
measure does not constitute a FAA funding commitment or decision to
implement that measure.
    Interested persons are invited to comment on the proposed program
with specific reference to these factors. To maximize the effectiveness
of comments and the FAAs understanding of them, comments should be as
specific as possible identifying the concern(s) as well as suggested or
desired resolution to the concern(s). When possible, quote text and
cite details such as page and section numbers, NCP measure number, etc.
to which the comment(s) pertain(s). This commenting procedure is
intended to ensure that substantive comments and concerns are made
available to the FAA in a timely manner so that the FAA has an
opportunity to address them in its Record of Approval. Please note, all
comments in their entirety become part of the public record, including
any personal information provided in the comment including name,
address, phone number, etc.
    To arrange an appointment to review the documents and any questions
may be directed to the individual named above under the heading, FOR
FURTHER INFORMATION CONTACT.

    Issued in Anchorage, Alaska, July 27, 2015.
Byron K. Huffman,
Manager, Alaskan Region Airports Division.
[FR Doc. 2015-18822 Filed 7-30-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 96 (Monday, May 19, 2014)]
[Notices]
[Page 28709]
[FR Doc No: 2014-11469]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2524-021]

Grand River Dam Authority; Notice of Environmental Site Review

    On June 11, 2014, Commission staff will hold an environmental site
review for the Salina Pumped Storage Hydroelectric Project No. 2524-
021. The project is located on the Saline Creek arm of Lake Hudson in
the Grand River basin in Mayes County, Oklahoma. The purpose of the
site review is to introduce the Commission's contractor team to the
project. All participants should be prepared to provide their own
transportation.
    The site review will take place on Wednesday, June 11, 2014 at 10
a.m. c.s.t. at the project. The specific meeting place is TBD and will
be provided to all registrants ahead of the site review.
    All participants planning to attend the site visit should RSVP to
Jacklyn Jaggars of the GRDA at<EMAIL_ADDRESS>or<PHONE_NUMBER> by
Friday, June 6, 2014.
    If you have any questions, please contact either Stephen Bowler at
(202) 502-6861 or via email at<EMAIL_ADDRESS>or Jeanne
Edwards at<PHONE_NUMBER> or via email at<EMAIL_ADDRESS>
    Dated: May 12, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014-11469 Filed 5-16-14; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Notices]
[Pages 69285-69287]
[FR Doc No: 2023-22122]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2014-0214; FMCSA-2015-0116; FMCSA-2019-0030; FMCSA-
2019-0031; FMCSA-2019-0033; FMCSA-2019-0034]

Qualification of Drivers; Exemption Applications; Epilepsy and
Seizure Disorders

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), Department
of Transportation (DOT).

ACTION: Notice of renewal of exemptions; request for comments.

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SUMMARY: FMCSA announces its decision to renew exemptions for seven
individuals from the requirement in the Federal Motor Carrier Safety
Regulations (FMCSRs) that interstate commercial motor vehicle (CMV)
drivers have ``no established medical history or clinical diagnosis of
epilepsy or any other condition which is likely to cause loss of
consciousness or any loss of ability to control a CMV.'' The exemptions
enable these individuals who have had one or more seizures and are
taking anti-seizure medication to continue to operate CMVs in
interstate commerce.

DATES: The exemptions were applicable on October 4, 2023. The
exemptions expire on October 4, 2025. Comments must be received on or
before November 6, 2023. Each group of renewed exemptions were
applicable on the dates stated in the discussions below and will expire
on the dates stated in the discussions below. Comments must be received
on or before November 6, 2023.

ADDRESSES: You may submit comments identified by the Federal Docket
Management System Docket No. FMCSA-2014-0214, Docket No. FMCSA-2015-
0116, Docket No. FMCSA-2019-0030, Docket No. FMCSA-2019-0031, Docket
No. FMCSA-2019-0033, or Docket No. FMCSA-2019-0034 using any of the
following methods:

     Federal eRulemaking Portal: Go to www.regulations.gov/,
insert the docket number (FMCSA-2014-0214, FMCSA-2015-0116, FMCSA-2019-
0030, FMCSA-2019-0031, FMCSA-2019-0033, or FMCSA-2019-0034) in the
keyword box and click ``Search.'' Next, sort the results by ``Posted
(Newer-Older),'' choose the first notice listed, and click on the
``Comment'' button. Follow the online instructions for submitting
comments.
     Mail: Dockets Operations; U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Washington, DC 20590-0001.
     Hand Delivery: West Building Ground Floor, 1200 New Jersey
Avenue SE, Washington, DC, 20590-0001 between 9 a.m. and 5 p.m. ET
Monday through Friday, except Federal Holidays.
     Fax:<PHONE_NUMBER>.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation'' portion of the SUPPLEMENTARY
INFORMATION section for instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: Ms. Christine A. Hydock, Chief,
Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE,
Washington, DC 20590-0001,<PHONE_NUMBER>, [email protected]. Office
hours are from 8:30 a.m. to 5 p.m. ET Monday through Friday, except
Federal holidays. If you have questions regarding viewing or submitting
material to the docket, contact Dockets Operations,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation

A. Submitting Comments

    If you submit a comment, please include the docket number for this
notice (Docket No. FMCSA-2014-0214, Docket No. FMCSA-2015-0116, Docket
No. FMCSA-2019-0030, Docket No. FMCSA-2019-0031, Docket No. FMCSA-2019-
0033, or Docket No. FMCSA-2019-0034), indicate the specific section of
this document to which each comment applies, and provide a reason for
each suggestion or recommendation. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that FMCSA can contact you if there are questions
regarding your submission.
    To submit your comment online, go to www.regulations.gov/, insert
the docket number (FMCSA-2014-0214, FMCSA-2015-0116, FMCSA-2019-0030,
FMCSA-2019-0031, FMCSA-2019-0033, or FMCSA-2019-0034) in the keyword
box and click ``Search.'' Next, sort the results by ``Posted (Newer-
Older),'' choose the first notice listed, click the ``Comment'' button,
and type your comment into the text box on the following screen. Choose
whether you are submitting your comment as an individual or on behalf
of a third party and then submit.
    If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. FMCSA will consider all comments and
material received during the comment period.

B. Viewing Comments

    To view comments go to www.regulations.gov. Insert the docket
number (FMCSA-2014-0214, FMCSA-2015-0116, FMCSA-2019-0030, FMCSA-2019-
0031, FMCSA-2019-0033, or FMCSA-2019-0034) in the keyword box and click
``Search.'' Next, sort the results by ``Posted (Newer-Older),'' choose
the first notice listed, and click ``Browse Comments.'' If you do not
have access to the internet, you may view the docket online by visiting
Dockets Operations on the ground floor of the DOT West Building, 1200
New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5
p.m. ET Monday through Friday, except Federal holidays. To be sure
someone is there to help you, please call<PHONE_NUMBER> or (202) 366-
9826 before visiting Dockets Operations.

C. Privacy Act

    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments
from the public on the exemption request. DOT posts these comments,
without edit, including any personal information the commenter
provides, to www.regulations.gov. As described in the system of records
notice DOT/ALL 14 (Federal Docket Management System), which can be
reviewed at https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices, the comments are searchable by the name of
the submitter.

II. Background

    Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption
from the FMCSRs for no longer than a 5-year period if it finds such
exemption would likely achieve a level of safety that is equivalent to,
or greater than, the level that would be achieved absent such
exemption. The statutes also allow the Agency to renew exemptions at
the end of the 5-year period. However, FMCSA grants medical exemptions
from the FMCSRs for a 2-year period to align with the maximum duration
of a driver's medical certification.
    The physical qualification standard for drivers regarding epilepsy
found in 49 CFR 391.41(b)(8) states that a person is physically
qualified to drive a CMV if that person has no established medical
history or clinical diagnosis of epilepsy or any other condition which
is likely to cause the loss of consciousness or any loss of ability to
control a CMV.
    In addition to the regulations, FMCSA has published advisory
criteria \1\ to assist Medical Examiners in determining whether drivers
with certain medical conditions are qualified to operate a CMV in
interstate commerce.
---------------------------------------------------------------------------

    \1\ These criteria may be found in Appendix A to Part 391--
Medical Advisory Criteria, section H. Epilepsy: Sec.  391.41(b)(8),
paragraphs 3, 4, and 5, which is available on the internet at
https://www.gpo.gov/fdsys/pkg/CFR-2015-title49-vol5/pdf/CFR-2015-title49-vol5-part391-appA.pdf.
---------------------------------------------------------------------------

    The seven individuals listed in this notice have requested renewal
of their exemptions from the epilepsy and seizure disorders prohibition
in Sec.  391.41(b)(8), in accordance with FMCSA procedures.
Accordingly, FMCSA has evaluated these applications for renewal on
their merits and decided to extend each exemption for a renewable 2-
year period.

III. Request for Comments

    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the statutory level of safety should immediately
notify FMCSA. The Agency will evaluate any adverse evidence submitted
and, if safety is being compromised or if continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315(b), FMCSA will take immediate steps to revoke the
exemption of a driver.

IV. Basis for Renewing Exemptions

    In accordance with 49 U.S.C. 31136(e) and 31315(b), each of the
seven applicants has satisfied the renewal conditions for obtaining an
exemption from the epilepsy and seizure disorders prohibition. The
seven drivers in this notice remain in good standing with the Agency,
have maintained their medical monitoring and have not exhibited any
medical issues that would compromise their ability to safely operate a
CMV

during the previous 2-year exemption period. In addition, for
commercial driver's license (CDL) holders, the Commercial Driver's
License Information System and the Motor Carrier Management Information
System are searched for crash and violation data. For non-CDL holders,
the Agency reviews the driving records from the State Driver's
Licensing Agency. These factors provide an adequate basis for
predicting each driver's ability to continue to safely operate a CMV in
interstate commerce. Therefore, FMCSA concludes that extending the
exemption for each renewal applicant for a period of 2 years is likely
to achieve a level of safety equal to that existing without the
exemption.
    As of October 4, 2023, and in accordance with 49 U.S.C. 31136(e)
and 31315(b), the following seven individuals have satisfied the
renewal conditions for obtaining an exemption from the epilepsy and
seizure disorders prohibition in the FMCSRs for interstate CMV drivers:

Douglas Day (IN)
Dennis Klamm (MN)
Michael Miller (TX)
Ryan Moore (NC)
William Swann (MD)
Tyler Tilseth (NM)
Adam Wilson (MN)

    The drivers were included in docket number FMCSA-2014-0214, FMCSA-
2015-0116, FMCSA-2019-0030, FMCSA-2019-0031, FMCSA-2019-0033, or FMCSA-
2019-0034. Their exemptions are applicable as of October 4, 2023 and
will expire on October 4, 2025.

V. Conditions and Requirements

    The exemptions are extended subject to the following conditions:
(1) each driver must remain seizure-free and maintain a stable
treatment during the 2-year exemption period; (2) each driver must
submit annual reports from their treating physicians attesting to the
stability of treatment and that the driver has remained seizure-free;
(3) each driver must undergo an annual medical examination by a
certified ME, as defined by Sec.  390.5; and (4) each driver must
provide a copy of the annual medical certification to the employer for
retention in the driver's qualification file, or keep a copy of his/her
driver's qualification file if he/she is self-employed. The driver must
also have a copy of the exemption when driving, for presentation to a
duly authorized Federal, State, or local enforcement official. The
exemption will be rescinded if: (1) the person fails to comply with the
terms and conditions of the exemption; (2) the exemption has resulted
in a lower level of safety than was maintained before it was granted;
or (3) continuation of the exemption would not be consistent with the
goals and objectives of 49 U.S.C. 31136(e) and 31315(b).

VI. Preemption

    During the period the exemption is in effect, no State shall
enforce any law or regulation that conflicts with this exemption with
respect to a person operating under the exemption.

VII. Conclusion

    Based on its evaluation of the seven exemption applications, FMCSA
renews the exemptions of the aforementioned drivers from the epilepsy
and seizure disorders prohibition in Sec.  391.41(b)(8). In accordance
with 49 U.S.C. 31136(e) and 31315(b), each exemption will be valid for
2 years unless revoked earlier by FMCSA.

Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2023-22122 Filed 10-4-23; 8:45 am]
BILLING CODE 4910-EX-P