[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)]
[Notices]
[Pages 11283-11286]
[FR Doc No: 2018-05161]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82844; File No. SR-CboeBZX-2018-016]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Delist
the Shares of the iShares Edge U.S. Fixed Income Balanced Risk ETF From
Listing Pursuant to Rule 14.11(i) and Approval Orders Issued by the
Commission as a Series of Managed Fund Shares, and To Re-List Pursuant
to Rule 14.11(c)(4) as a Series of Index Fund Shares

March 9, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 28, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule

change as described in Items I and II below, which Items have been
prepared by the Exchange. The Exchange has designated this proposal as
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)(iii) thereunder,\4\
which renders it effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 delist the shares of the iShares
Edge U.S. Fixed Income Balanced Risk ETF (the ``Fund'') from listing
pursuant to Rule 14.11(i) and approval orders issued by the Commission
as a series of Managed Fund Shares, and to re-list pursuant to Rule
14.11(c)(4) as a series of Index Fund Shares.
    The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.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 delist the shares of the Fund (the
``Shares'') from listing pursuant to an approval order issued by the
Commission under Rule 14.11(i) related to Managed Fund Shares and re-
listing pursuant to Rule 14.11(c)(4) related to Index Fund Shares \5\
based on Fixed Income Securities.6 7 The Exchange is
submitting this proposal because the index that the Fund proposes to
track meets all of the generic listing standards of Rule
14.11(c)(4)(B)(i) except that the Index includes exposure to U.S.
Treasury futures contracts, which are not contemplated as Index
constituents under Rule 14.11(c).
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    \5\ As provided in Rule 14.11(c)(1)(A)(i), the term ``Index Fund
Share'' means a security that is issued by an open-end management
investment company based on a portfolio of stocks or fixed income
securities or a combination thereof, that seeks to provide
investment results that correspond generally to the price and yield
performance or total return performance of a specified foreign or
domestic stock index, fixed income securities index, or combination
thereof.
    \6\ The Exchange notes that all necessary steps to delist and
re-list the Fund have been taken, including but not limited to: (1)
filing an information statement and prospectus on Form N-14 with the
SEC that notified shareholders of the reorganization and
specifically of the background and reasons for the reorganization,
the financial highlights of the Fund, the principal investment
risks, shareholder rights and obligations and the form of the
Agreement and Plan of Reorganization; and (2) obtaining the board
approval for the reorganization.
    \7\ As defined in Rule 14.11(c)(4), ``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, government-sponsored entity securities (``GSE
Securities''), municipal securities, trust preferred securities,
supranational debt and debt of a foreign country or subdivision
thereof.
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    The Shares began trading on the Exchange on February 26, 2015 after
the Commission issued an order \8\ approving the listing and trading of
the Shares on the Exchange,\9\ which included a number of Continued
Listing Representations.\10\ At that time, the Exchange was required to
file separate proposals under Section 19(b) of the Act before the
listing of any funds listed pursuant to Rule 14.11(i) (``Managed Fund
Shares''). While the Shares would be listed as a series of Index Fund
Shares instead of Managed Fund Shares, the Fund's holdings will
continue meet the applicable Continued Listing Representations from the
Order, except that the Fund plans to track the investment results of an
index, specifically the Bloomberg Barclays U.S. Fixed Income Balanced
Risk Index (the ``Index'').\11\
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    \8\ See Securities Exchange Act Release No. 74297 (February 18,
2015), 80 FR 9788 (February 24, 2015) (SR-BATS-2014-056) (the
``Order'').
    \9\ The Order states that ``the Fund is an actively-managed fund
that does not seek to replicate the performance of a specified
index.''
    \10\ As defined in Rule 14.11(a), ``Continued Listing
Representations'' means any of the statements or representations
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 (as applicable), or the applicability
of Exchange listing rules specified in any filing to list a series
of Other Securities.
    \11\ The Index measures the performance of the corporate and
mortgage portion of the Bloomberg Barclays U.S. Universal Index (the
``Parent Index'') while targeting an equal allocation between
interest rate and credit spread risk.
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    The Index uses a rules-based approach to calculate an equal
volatility-weighted allocation to each of five segments of the Parent
Index: (1) Investment-grade corporate bonds 1-5 year; (2) investment-
grade corporate bonds 5-10 year; (3) high yield corporate bonds rated
BB or higher; (4) high yield corporate bonds rated below BB; and (5)
U.S. agency mortgage-backed securities. Segments with lower credit
spread volatility receive a higher weighting, and segments with higher
credit spread volatility receive a lower weighting, with the result
that the contribution of each segment to overall credit spread
volatility is approximately equal. The Index adjusts interest rate risk
so that it equals credit spread risk by adding either long positions in
U.S. Treasury bonds or short positions in U.S. Treasury futures.
    The Index meets all of the generic listing standards of Rule
14.11(c)(4)(B)(i) except that the Index includes exposure to U.S.
Treasury futures contracts. The Index also meets all of the generic
listing standards applicable to Managed Fund Shares under Rule
14.11(i), including the exposure to U.S. Treasury futures contracts.
The Index also meets the Continued Listing Representations from the
Order related to portfolio holdings. As noted above, the Exchange is
submitting this proposal because the Index contains futures contracts
(U.S. Treasury futures contracts) in a manner permitted pursuant to the
Order, but for which Rule 14.11(c) does not currently contemplate. All
U.S. Treasury futures contracts held by the Fund will trade on markets
that are a member of the Intermarket Surveillance Group (``ISG'') or
affiliated with a member of ISG or with which the Exchange has in place
a comprehensive surveillance sharing agreement.\12\
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    \12\ For a list of the current members and affiliate members of
ISG, see www.isgportal.com. The Exchange notes that not all
components of the Fund's holdings may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
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    Based on the foregoing, the Exchange believes that the proposal is
non-controversial and should be effective upon filing. Specifically,
because: (i) The Index meets the generic listing standards applicable
to Index Fund Shares except the portion of the Index that includes
exposure to U.S. Treasury futures contracts, which are not contemplated
as Index constituents under Rule 14.11(c); (ii) the Index would meet
the generic listing standards for Managed Fund Shares under Rule
14.11(i)(4)(C), including the exposure to U.S. Treasury futures
contracts under

Rule 14.11(i)(4)(C)(iv); \13\ (iii) the Index would meet all of the
Continued Listing Representations, which formed the basis for the
Commission's approval in the Order; \14\ (iv) all of the U.S. Treasury
futures contracts included in the Index will be traded on markets that
are a member of ISG or affiliated with a member of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement; and (v) the Index is largely a memorialization of the
strategy previously employed by the Fund and the de-listing and re-
listing is a technical matter of form without substantive change.
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    \13\ The Exchange believes that, while there are certain
differences between Index Fund Shares and Managed Fund Shares, the
policy considerations underpinning the approval of the generic
listing standards for Managed Fund Shares, particularly related to a
portfolio's holdings in listed derivatives, are identical between
Managed Fund Shares and Index Fund Shares, and, as such, an index
underlying a series of Index Fund Shares that holds derivatives in a
manner compliant with Rule 14.11(i)(4)(C)(iv) does not raise any
issues that have not previously been contemplated by the Commission.
See Securities Exchange Act Release No. 78396 (July 22, 2016), 81 FR
49698 (July 28, 2016) (SR-BATS-2015-100).
    \14\ As originally approved by the Commission for the listing
and trading of the Fund as a series of Managed Fund Shares, the
Commission determined in the Order that the proposal was consistent
with the Act, stating that ``the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act, which
requires, among other things, that the Exchange's rules be designed
to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to 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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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \15\ in general and Section 6(b)(5) of the Act \16\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to, and perfect the
mechanism of a free and open market and, in general, to protect
investors and the public interest. Specifically, the Exchange believes
that the proposal is designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to remove impediments to, and perfect the mechanism of a free and open
market and, in general, to protect investors and the public interest.
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    \15\ 15 U.S.C. 78f.
    \16\ 15 U.S.C. 78f(b)(5).
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    The Index meets all of the generic listing standards of Rule
14.11(c)(4)(B)(i) except that the Index includes exposure to U.S.
Treasury futures contracts. The Index also meets all of the generic
listing standards applicable to Managed Fund Shares under Rule
14.11(i), including the exposure to U.S. Treasury futures contracts.
The Index also meets the Continued Listing Representations from the
Order related to portfolio holdings. As noted above, the Exchange is
submitting this proposal because the Index contains futures contracts
(U.S. Treasury futures contracts) in a manner permitted pursuant to the
Order, but for which Rule 14.11(c) does not currently contemplate. All
U.S. Treasury futures contracts held by the Fund will trade on markets
that are a member of ISG or affiliated with a member of ISG or with
which the Exchange has in place a comprehensive surveillance sharing
agreement.
    Based on the foregoing, the Exchange believes that the proposal is
non-controversial and should be effective upon filing. Specifically,
because: (i) The Index meets the generic listing standards applicable
to Index Fund Shares except the portion of the Index that includes
exposure to U.S. Treasury futures contracts, which are not contemplated
as Index constituents under Rule 14.11(c); (ii) the Index would meet
the generic listing standards for Managed Fund Shares under Rule
14.11(i)(4)(C), including the exposure to U.S. Treasury futures
contracts under Rule 14.11(i)(4)(C)(iv); \17\ (iii) the Index would
meet all of the Continued Listing Representations, which formed the
basis for the Commission's approval in the Order; \18\ (iv) all of the
U.S. Treasury futures contracts included in the Index will be traded on
markets that are a member of ISG or affiliated with a member of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement; and (v) the Index is largely a memorialization of
the strategy previously employed by the Fund and the de-listing and re-
listing is a technical matter of form without substantive change.
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    \17\ The Exchange believes that, while there are certain
differences between Index Fund Shares and Managed Fund Shares, the
policy considerations underpinning the approval of the generic
listing standards for Managed Fund Shares, particularly related to a
portfolio's holdings in listed derivatives, are identical between
Managed Fund Shares and Index Fund Shares, and, as such, an index
underlying a series of Index Fund Shares that holds derivatives in a
manner compliant with Rule 14.11(i)(4)(C)(iv) does not raise any
issues that have not previously been contemplated by the Commission.
See Securities Exchange Act Release No. 78396 (July 22, 2016), 81 FR
49698 (July 28, 2016) (SR-BATS-2015-100).
    \18\ As originally approved by the Commission for the listing
and trading of the Fund as a series of Managed Fund Shares, the
Commission determined in the Order that the proposal was consistent
with the Act, stating that ``the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act, which
requires, among other things, that the Exchange's rules be designed
to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to 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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    As such, the Exchange believes that the proposal is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest because
there are no substantive issues raised by this proposal that were not
otherwise addressed by the Order.

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 that
the proposal to allow the Fund to be listed on the Exchange pursuant to
the generic listing standards under Rule 14.11(i)(4)(C) will have no
impact on competition.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \19\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\20\
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    \19\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \20\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.

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    A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\22\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay to allow the
Shares to immediately be listed and traded on the Exchange pursuant to
Rule 14.11(c)(4) instead of Rule 14.11(i). The Exchange represents that
the Index would meet the generic listing standards for Managed Fund
Shares under Rule 14.11(i)(4)(C), including the exposure to U.S.
Treasury futures contracts under Rule 14.11(i)(4)(C)(iv) \23\ and the
Index would meet all of the Continued Listing Representations, which
formed the basis for the Commission's approval in the Order.\24\ The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change operative upon filing.\25\
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    \21\ 17 CFR 240.19b-4(f)(6).
    \22\ 17 CFR 240.19b-4(f)(6)(iii).
    \23\ See supra text accompanying note 17.
    \24\ See supra text accompanying note 18.
    \25\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CboeBZX-2018-016 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-CboeBZX-2018-016. 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-CboeBZX-2018-016, and should be
submitted on or before April 4, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05161 Filed 3-13-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 90 (Wednesday, May 12, 2021)]
[Notices]
[Pages 26140-26143]
[FR Doc No: 2021-09981]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

Petition for Exemption from the Federal Motor Vehicle Theft
Prevention Standard; North American Subaru, INC.

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

ACTION: Grant of petition for exemption.

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SUMMARY: This document grants in full the North American Subaru, Inc.'s
(Subaru) petition for exemption from the Federal Motor Vehicle Theft
Prevention Standard (theft prevention standard) for its Toyota GR 86
vehicle line beginning in model year (MY) 2022. The petition is granted
because the agency has determined that the antitheft device to be
placed on the line as standard equipment is likely to be as effective
in reducing and deterring motor vehicle theft as compliance with the
parts-marking requirements of the theft prevention standard. Subaru
also requested confidential treatment for specific information in its
petition. Therefore, no confidential information provided for purposes
of this notice has been disclosed.

DATES: The exemption granted by this notice is effective beginning with
the 2022 model year.

FOR FURTHER INFORMATION CONTACT: Carlita Ballard, Office of
International Policy, Fuel Economy, and Consumer Programs, NHTSA, West
Building, W43-439, NRM-310, 1200 New Jersey Avenue SE, Washington, DC
20590. Ms. Ballard's phone number is<PHONE_NUMBER>. Her fax number is
(202) 493-2990.

SUPPLEMENTARY INFORMATION: Under 49 U.S.C. Chapter 331, the Secretary
of Transportation (and the National Highway Traffic Safety
Administration (NHTSA) by delegation) is required to promulgate a theft
prevention standard to provide for the identification of certain motor
vehicles and their major replacement parts to impede motor vehicle
theft. NHTSA promulgated regulations at 49 CFR part 541 (theft
prevention standard) to require parts-marking for specified passenger
motor vehicles and light trucks. Pursuant to 49 U.S.C. 33106,
manufacturers that are subject to the parts-marking requirements may
petition NHTSA, by delegation, for an exemption for a line of passenger
motor vehicles equipped with an antitheft device as standard equipment
that NHTSA decides is likely to be as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
requirements. In accordance with this statute, NHTSA promulgated 49 CFR
part 543, which establishes the process through which manufacturers may
seek an exemption from the theft prevention standard.
    49 CFR 543.5 provides general submission requirements for petitions
and states that each manufacturer may petition NHTSA for an exemption
of one vehicle line per model year. Among other requirements,
manufacturers must identify whether the exemption is sought under
section 543.6 or section 543.7. Under section 543.6, a manufacturer may
request an exemption by providing specific information about the
antitheft device, its capabilities, and the reasons the petitioner
believes the device to be as effective at reducing and deterring theft
as compliance with the parts-marking requirements. Section

543.7 permits a manufacturer to request an exemption under a more
streamlined process if the vehicle line is equipped with an antitheft
device (an ``immobilizer'') as standard equipment that complies with
one of the standards specified in that section.\1\
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    \1\ 49 CFR 543.7 specifies that the manufacturer must include a
statement that their entire vehicle line is equipped with an
immobilizer that meets one of the following standards:
    (1) The performance criteria (subsections 8 through 21) of
C.R.C, c. 1038.114, Theft Protection and Rollaway Prevention (in
effect March 30, 2011), as excerpted in appendix A of [part 543];
    (2) National Standard of Canada CAN/ULC-S338-98, Automobile
Theft Deterrent Equipment and Systems: Electronic Immobilization
(May 1998);
    (3) United Nations Economic Commission for Europe (UN/ECE)
Regulation No. 97 (ECE R97), Uniform Provisions Concerning Approval
of Vehicle Alarm System (VAS) and Motor Vehicles with Regard to
Their Alarm System (AS) in effect August 8, 2007; or
    (4) UN/ECE Regulation No. 116 (ECE R116), Uniform Technical
Prescriptions Concerning the Protection of Motor Vehicles Against
Unauthorized Use in effect on February 10, 2009.
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    Section 543.8 establishes requirements for processing petitions for
exemption from the theft prevention standard. As stated in section
543.8(a), NHTSA processes any complete exemption petition. If NHTSA
receives an incomplete petition, NHTSA will notify the petitioner of
the deficiencies. Once NHTSA receives a complete petition the agency
will process it and, in accordance with section 543.8(b), will grant
the petition if it determines that, based upon substantial evidence,
the standard equipment antitheft device is likely to be as effective in
reducing and deterring motor vehicle theft as compliance with the
parts-marking requirements of part 541.
    Section 543.8(c) requires NHTSA to issue its decision either to
grant or to deny an exemption petition not later than 120 days after
the date on which a complete petition is filed. If NHTSA does not make
a decision within the 120-day period, the petition shall be deemed to
be approved and the manufacturer shall be exempt from the standard for
the line covered by the petition for the subsequent model year.\2\
Exemptions granted under part 543 apply only to the vehicle line or
lines that are subject to the grant and that are equipped with the
antitheft device on which the line's exemption was based, and are
effective for the model year beginning after the model year in which
NHTSA issues the notice of exemption, unless the notice of exemption
specifies a later year.
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    \2\ 49 U.S.C. 33106(d).
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    Sections 543.8(f) and (g) apply to the manner in which NHTSA's
decisions on petitions are to be made known. Under section 543.8(f), if
the petition is sought under section 543.6, NHTSA publishes a notice of
its decision to grant or deny the exemption petition in the Federal
Register and notifies the petitioner in writing. Under section
543.8(g), if the petition is sought under section 543.7, NHTSA notifies
the petitioner in writing of the agency's decision to grant or deny the
exemption petition.
    This grant of petition for exemption considers North American
Subaru, Inc.'s (Subaru) petition for its Toyota GR 86 vehicle line
beginning in MY 2022. Subaru is the manufacturer of the Toyota GR 86
vehicle line as defined in 49 U.S.C. 32101(5), and is the manufacturer
of the vehicle line as indicated on the label required by 49 CFR part
567. Accordingly, NHTSA determined that Subaru can use its one
exemption request per model year for the Toyota GR 86 vehicle line
beginning in MY 2022.
    Subaru's petition is granted under 49 U.S.C. 33106 and 49 CFR
543.8(c), which state that if the Secretary of Transportation (NHTSA,
by delegation) does not make a decision about a petition within 120
days of the petition submission, the petition shall be deemed to be
approved and the manufacturer shall be exempt from the standard for the
line covered by the petition for the subsequent model year. Separately,
based on the information provided in Subaru's petition, NHTSA has
determined that the antitheft device to be placed on its vehicle line
as standard equipment is likely to be as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
requirements of the theft prevention standard.

I. Specific Petition Content Requirements Under 49 CFR 543.6

    Pursuant to 49 CFR part 543, Exemption from Vehicle Theft
Prevention, Subaru petitioned for an exemption for its specified
vehicle line from the parts-marking requirements of the theft
prevention standard, beginning in MY 2022. Subaru petitioned under 49
CFR 543.6, Petition: Specific content requirements, which, as described
above, requires manufacturers to provide specific information about the
antitheft device installed as standard equipment on all vehicles in the
line for which an exemption is sought, the antitheft device's
capabilities, and the reasons the petitioner believes the device to be
as effective at reducing and deterring theft as compliance with the
parts-marking requirements.
    More specifically, section 543.6(a)(1) requires petitions to
include a statement that an antitheft device will be installed as
standard equipment on all vehicles in the line for which the exemption
is sought. Under section 543.6(a)(2), each petition must list each
component in the antitheft system, and include a diagram showing the
location of each of those components within the vehicle. As required by
section 543.6(a)(3), each petition must include an explanation of the
means and process by which the device is activated and functions,
including any aspect of the device designed to: (1) Facilitate or
encourage its activation by motorists; (2) attract attention to the
efforts of an unauthorized person to enter or move a vehicle by means
other than a key; (3) prevent defeating or circumventing the device by
an unauthorized person attempting to enter a vehicle by means other
than a key; (4) prevent the operation of a vehicle which an
unauthorized person has entered using means other than a key; and (5)
ensure the reliability and durability of the device.\3\
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    \3\ 49 CFR 543.6(a)(3).
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    In addition to providing information about the antitheft device and
its functionality, petitioners must also submit the reasons for their
belief that the antitheft device will be effective in reducing and
deterring motor vehicle theft, including any theft data and other data
that are available to the petitioner and form a basis for that
belief,\4\ and the reasons for their belief that the agency should
determine that the antitheft device is likely to be as effective as
compliance with the parts-marking requirements of part 541 in reducing
and deterring motor vehicle theft. In support of this belief, the
petitioners should include any statistical data that are available to
the petitioner and form the basis for the petitioner's belief that a
line of passenger motor vehicles equipped with the antitheft device is
likely to have a theft rate equal to or less than that of passenger
motor vehicles of the same, or a similar, line which have parts marked
in compliance with part 541.\5\
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    \4\ 49 CFR 543.6(a)(4).
    \5\ 49 CFR 543.6(a)(5).
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    The following sections describe Subaru's petition information
provided pursuant to 49 CFR part 543, Exemption from Vehicle Theft
Prevention. To the extent that specific information in Subaru's
petition is subject to a properly filed confidentiality request, that
information was not disclosed as part of this notice.\6\
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    \6\ 49 CFR 512.20(a).

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II. Subaru's Petition for Exemption

    In a petition dated November 11, 2020, Subaru requested an
exemption from the parts-marking requirements of the theft prevention
standard for the Toyota GR 86 vehicle line beginning with MY 2022.
    In its petition, Subaru provided a detailed description and diagram
of the identity, design, and location of the components of the
antitheft device for the Toyota GR 86 vehicle line. Subaru stated that
its MY 2022 Toyota GR 86 vehicle line will be installed with an engine
immobilizer device as standard equipment, as required by 543.6(a)(1).
Subaru also stated it will offer a ``Smart Key'' system on all trim
lines, which includes keyless access and push start functions.
Specifically, key components of the ``smart entry'' system will include
a keyless access engine control unit (ECU), steering lock ECU, engine
ECU, an interior antenna, push button ignition switch, and an access
key. Subaru also stated that there is a diagnosis tool used to perform
a key ID code registration to the immobilizer module. Subaru stated
that its antitheft device will also include an alarm system as standard
equipment. Subaru stated that its alarm system will monitor door status
and key ID, and opening of a door or hood will activate the alarm
system. Subaru further stated that visual and audio features will
attract attention to the efforts of an unauthorized person to enter or
move the vehicle by sounding the vehicle's horn and illuminating the 4-
way flashing hazard lamps.
    Pursuant to section 543.6(a)(3), Subaru explained the means and
process by which the immobilizer device is activated and functions.
Subaru stated that its antitheft system and immobilization features are
designed and constructed within the vehicle's overall CAN (controller
area network) electrical architecture which means the antitheft system
cannot be separated by rerouting or tapping into particular wires or
connectors. Subaru further stated that the immobilization features will
prevent operation of the vehicle by preventing the starting or
operation of the engine even if an unauthorized person was to gain
entry into the vehicle.
    Subaru stated that its Toyota GR 86 ``smart key'' system is
activated when the ignition is at the ``OFF'' position or the door is
opened/closed while propulsion system is off and ignition is at the
``ON'' or ``ACC'' position. Deactivation occurs after the driver gets
in the vehicle with the access key and pushes the button ignition
switch while pressing the brake pedal, random codes are then
transmitted to the access key from the keyless access ECU through the
interior antenna. Once the access key receives the signal, it returns
the encrypted code. When pushing the push button ignition switch once
again, the power is turned off and the security indicator lamp blinks.
Subaru stated that this method of activation will facilitate and
encourage its activation by motorists because it requires nothing more
than the removal of the key from the ignition switch when the vehicle
is not being used.
    As required in section 543.6(a)(3)(v), Subaru provided information
on the reliability and durability of its proposed device. To ensure
reliability and durability of the device, Subaru conducted tests based
on its own specified standards and provided a detailed list of the
tests conducted. Subaru stated that it believes that its device is
reliable and durable because it complied with its own specific design
standards and the antitheft device is installed on other vehicle lines
for which the agency has granted a parts-marking exemption.
    Subaru stated that its theft rates have been low per the National
Insurance Crime Bureau's 2019 report on America's 10 most stolen
vehicles. However, Subaru compared its proposed device to other Subaru
antitheft devices that NHTSA has determined to be as effective in
reducing and deterring motor vehicle theft as would compliance with the
parts-marking requirements. Specifically, Subaru stated that the theft
rate of the MY 2008 Impreza (not parts marked, standard engine
immobilizer) decreased by almost 51% as compared to the MY 2007 Impreza
(parts marked with optional engine immobilizer). Subaru stated that the
antitheft system included on the Toyota GR 86 vehicle line is the same
system employed on the Subaru Ascent car line, for which NHTSA
determined that the system was likely as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
requirements of the theft prevention standard.\7\
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    \7\ 82 FR 57650 (Dec. 06, 2017).
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    Subaru also stated that the National Crime Information Center's
(NCIC) theft data showed that there was a 70% reduction in theft
experienced when comparing the MY 1987 Ford Mustang vehicle thefts
(with immobilizers) to MY 1995 Ford Mustang vehicle thefts (without
immobilizers). On the basis of the above and other cited comparisons,
Subaru has concluded that its proposed immobilizer system is no less
effective than those devices installed on lines for which NHTSA has
already granted full exemptions.

III. Decision to Grant the Petition

    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.8(b), the agency grants
a petition for exemption from the parts-marking requirements of part
541, either in whole or in part, if it determines that, based upon
substantial evidence, the standard equipment antitheft device is likely
to be as effective in reducing and deterring motor vehicle theft as
compliance with the parts-marking requirements of part 541 or if deemed
approved under 49 U.S.C. 33106(d). As discussed above, in this case,
Subaru's petition is granted under 49 U.S.C. 33106(d).
    However, separately, NHTSA also finds that Subaru has provided
adequate reasons for its belief that the antitheft device for its
vehicle line is likely to be as effective in reducing and deterring
motor vehicle theft as compliance with the parts-marking requirements
of the theft prevention standard. This conclusion is based on the
information Subaru provided about its antitheft device. NHTSA believes,
based on Subaru's supporting evidence, that the antitheft device
described for its vehicle line is likely to be as effective in reducing
and deterring motor vehicle theft as compliance with the parts-marking
requirements of the theft prevention standard.
    The agency concludes that Subaru's antitheft device will provide
the five types of performance features listed in section 543.6(a)(3):
Promoting activation; attracting attention to the efforts of
unauthorized persons to enter or operate a vehicle by means other than
a key; preventing defeat or circumvention of the device by unauthorized
persons; preventing operation of the vehicle by unauthorized entrants;
and ensuring the reliability and durability of the device.
    The agency notes that 49 CFR part 541, Appendix A-1, identifies
those lines that are exempted from the theft prevention standard for a
given model year. 49 CFR 543.8(f) contains publication requirements
incident to the disposition of all part 543 petitions. Advanced
listing, including the release of future product nameplates, the
beginning model year for which the petition is granted and a general
description of the antitheft device is necessary in order to notify law
enforcement agencies of new vehicle lines exempted from the parts-
marking requirements of the theft prevention standard.

    If Subaru decides not to use the exemption for its requested
vehicle line, the manufacturer must formally notify the agency. If such
a decision is made, the line must be fully marked as required by 49 CFR
541.5 and 541.6 (marking of major component parts and replacement
parts).
    NHTSA notes that if a manufacturer to which an exemption has been
granted wishes in the future to modify the device on which the
exemption is based, the company may have to submit a petition to modify
the exemption. Section 543.8(d) states that a part 543 exemption
applies only to vehicles that belong to a line exempted under this part
and equipped with the antitheft device on which the line's exemption is
based. Further, section 543.10(c)(2) provides for the submission of
petitions ``to modify an exemption to permit the use of an antitheft
device similar to but differing from the one specified in the
exemption.'' \8\
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    \8\ The agency wishes to minimize the administrative burden that
section 543.10(c)(2) could place on exempted vehicle manufacturers
and itself. The agency did not intend in drafting part 543 to
require the submission of a modification petition for every change
to the components or design of an antitheft device. The significance
of many such changes could be de minimis. Therefore, NHTSA suggests
that if a manufacturer with an exemption contemplates making any
changes, the effects of which might be characterized as de minimis,
it should consult the agency before preparing and submitting a
petition to modify.
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    For the foregoing reasons, the agency hereby announces a grant in
full of Subaru's petition for exemption for the Toyota GR 86 vehicle
line from the parts-marking requirements of 49 CFR part 541, beginning
with its MY 2022 vehicles.

    Issued under authority delegated in 49 CFR 1.95 and 501.8.

Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2021-09981 Filed 5-11-21; 8:45 am]
BILLING CODE 4910-59-P


[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Notices]
[Pages 18272-18273]
[FR Doc No: 2015-07696]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74609; File No. SR-NYSEARCA-2013-107]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting an
Extension to Limited Exemption From Rule 612(c) of Regulation NMS In
Connection With the Exchange's Retail Liquidity Program Until September
30, 2015

March 30, 2015.
    On December 23, 2013, the Securities and Exchange Commission
(``Commission'') issued an order pursuant to its authority under Rule

612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted NYSE
Arca, Inc. (the ``Exchange'' or ``NYSEArca'') a limited exemption from
the Sub-Penny Rule in connection with the operation of the Exchange's
Retail Liquidity Program (the ``Program'').\2\ The limited exemption
was granted concurrently with the Commission's approval of the
Exchange's proposal to adopt the Program for a one-year pilot term.\3\
The exemption was granted coterminous with the effectiveness of the
pilot Program; both the pilot Program and exemption are scheduled to
expire on April 14, 2015.
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 71176 (December 23,
2013), 78 FR 79524 (December 30, 2013) (SR-NYSEARCA-2013-107) (``RLP
Approval Order'').
    \3\ See id.
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    The Exchange now seeks to extend the exemption until September 30,
2015.\4\ The Exchange's request was made in conjunction with an
immediately effective filing that extends the operation of the Program
through the same date.\5\ In its request to extend the exemption, the
Exchange notes that the participation in the Program has increased more
recently. Accordingly, the Exchange has asked for additional time to
allow itself and the Commission to analyze more robust data concerning
the Program, which the Exchange committed to provide to the
Commission.\6\ For this reason and the reasons stated in the Order
originally granting the limited exemption, the Commission finds that
extending the exemption, pursuant to its authority under Rule 612(c) of
Regulation NMS, is appropriate in the public interest and consistent
with the protection of investors.
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    \4\ See Letter from Martha Redding, Senior Counsel and Assistant
Secretary, NYSE, to Brent J. Fields, Secretary, Securities and
Exchange Commission, dated March 19, 2015.
    \5\ See Securities Exchange Act Release No. 74572 (March 24,
2015), 80 FR 16705 (March 30, 2015) (SR-NYSEARCA-2015-22).
    \6\ See RLP Approval Order, supra note 2, 78 FR at 79529.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of
Regulation NMS, the Exchange is granted a limited exemption from Rule
612 of Regulation NMS that allows it to accept and rank orders priced
equal to or greater than $1.00 per share in increments of $0.001, in
connection with the operation of its Retail Liquidity Program, until
September 30, 2015.
    The limited and temporary exemption extended by this Order is
subject to modification or revocation if at any time, the Commission
determines that such action is necessary or appropriate in furtherance
of the purposes of the Securities Exchange Act of 1934. Responsibility
for compliance with any applicable provisions of the Federal securities
laws must rest with the persons relying on the exemption that is the
subject of this Order.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07696 Filed 4-2-15; 8:45 am]
 BILLING CODE 8011-01-P