[Federal Register Volume 79, Number 75 (Friday, April 18, 2014)]
[Notices]
[Pages 21981-21986]
[FR Doc No: 2014-08791]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71938; File No. SR-NYSEArca-2013-144]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade
Shares of the ETSpreads HY Long Credit Fund, the ETSpreads HY Short
Credit Fund, the ETSpreads IG Long Credit Fund, and the ETSpreads IG
Short Credit Fund Under NYSE Arca Equities Rule 8.600

April 14, 2014.

I. Introduction

    On December 27, 2013, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to list and trade shares
(``Shares'') of the ETSpreads HY Long Credit Fund, the ETSpreads HY
Short Credit Fund, the ETSpreads IG Long Credit Fund, and the ETSpreads
IG Short Credit Fund (each a ``Fund'' and, collectively, ``Funds'')
under NYSE Arca Equities Rule 8.600. The proposed rule change was
published for comment in the Federal Register on January 15, 2014.\3\
On February 26, 2014, the Commission issued a notice of designation of
a longer period for Commission action on the proposed rule change.\4\
On April 11, 2014, the Exchange filed Amendment

No. 1 to the proposed rule change.\5\ The Commission received no
comments on the proposal. The Commission is publishing this notice to
solicit comments on Amendment No. 1 from interested persons, and is
approving the proposed rule change, as modified by Amendment No. 1
thereto, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 71266 (January 9,
2014), 79 FR 2705 (``Notice'').
    \4\ See Securities Exchange Act Release No. 71618, 79 FR 12254
(March 4, 2014). Pursuant to Section 19(b)(2) of the Act, the
Commission determined that it was appropriate to designate a longer
period within which to take action on the proposed rule change.
Accordingly, the Commission designated April 15, 2014, as the date
by which the Commission should either approve or disapprove or
institute proceedings to determine whether to disapprove the
proposed rule change.
    \5\ In Amendment No. 1, the Exchange expands the information
that would be included in the Funds' Disclosed Portfolios.
Specifically, the investment adviser to the Funds would include the
following information (as applicable) in the Disclosed Portfolios,
which would be updated daily on the Funds' Web site: ticker symbol,
CUSIP number or other identifier, if any; a description of the
holding (including the type of holding, such as the type of swap);
the identity of the security, commodity, index, Reference
Entity(ies) or other asset or instrument underlying the holding, if
any; for options, the option strike price; quantity held (as
measured by, for example, par value, notional value or number of
shares, contracts or units); maturity date, if any; coupon rate, if
any; effective date, if any; market value of the holding; and the
percentage weighting of the holding in a Fund's portfolio.
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II. Description of the Proposal

    The Exchange proposes to list and trade the Shares of each Fund
under NYSE Arca Equities Rule 8.600, which governs the listing and
trading of Managed Fund Shares. The Shares will be offered by Exchange
Traded Spreads Trust (``Trust''), a statutory trust organized under the
laws of the State of Delaware and registered with the Commission as an
open-end management investment company.\6\ ETSpreads, LLC (``Adviser'')
is the investment adviser for each Fund and is a registered investment
adviser under the Investment Advisers Act of 1940 (``Advisers Act'').
ALPS Distributors, Inc. will serve as the principal underwriter and
distributor for each Fund. The Exchange represents that the Adviser is
not registered as a broker-dealer, but is affiliated with a broker-
dealer and has implemented a ``fire wall'' with respect to such broker-
dealer regarding access to information concerning the composition or
changes to the Funds' portfolios.\7\
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    \6\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). According to the Exchange, on April 9, 2013,
the Trust filed with the Commission an amendment to the registration
statement for the Funds on Form N-1A under the Securities Act of
1933 and under the 1940 Act relating to the Funds (File Nos. 333-
148886 and 811-22177) (``Registration Statement''). The Exchange
also states that the Trust has obtained certain exemptive relief
from the Commission under the 1940 Act. See Investment Company Act
Release No. 30378 (February 5, 2013) (``Exemptive Order''). The
Exchange represents that the investments made by the Funds will
comply with the conditions set forth in the Exemptive Order.
    \7\ See Commentary .06 to NYSE Arca Equities Rule 8.600. The
Exchange further represents that in the event (a) the Adviser
becomes newly affiliated with a broker-dealer, or (b) any new
adviser or sub-adviser, if any, is a registered broker-dealer or
becomes affiliated with a broker-dealer, it will implement a fire
wall with respect to its relevant personnel or its broker-dealer
affiliate regarding access to information concerning the composition
or changes to a portfolio, and will be subject to procedures
designed to prevent the use and dissemination of material, non-
public information regarding such portfolio.
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    The Exchange has made the following representations and statements
in describing the Funds and their respective investment strategies,
including other portfolio holdings and investment restrictions.\8\
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    \8\ The Commission notes that additional information regarding
the Trust, the Funds, and the Shares, including information on
swaps, in general, and credit default swaps (``CDS''), in
particular, methodology and construction of the Indices (as defined
below), investment strategies, risks, net asset value (``NAV'')
calculation, creation and redemption procedures, fees, portfolio
holdings, disclosure policies, distributions, and taxes, among other
information, is included in the Notice and the Registration
Statement, as applicable. See Notice and Registration Statement,
supra notes 3 and 6, respectively.
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Description of the Funds
    Each Fund will seek to provide exposure to a long or short position
with respect to a specific segment of the North American corporate
credit markets.\9\ The strategy of each of the Funds involves buying
and selling credit default swaps (``CDS'') to outperform, before fees
and expenses, either a long or short position tied to its benchmark
index. Currently, each Fund will use either the Markit CDX North
American Investment Grade 5-year Total Return Index or the Markit CDX
North American High Yield 5-year Total Return Index (each an ``Index''
or ``CDX Index,'' and collectively, ``Indices'') as its benchmark.\10\
None of the Funds will use leverage, and each Fund will maintain
sufficient assets at all times so that it can meet its payment, margin,
or other obligations without borrowing.\11\ While actual percentages
will vary, it is generally expected that less than 20% of a Fund's
assets will be in CDS and non-principal investments (as described
below), and the balance of a Fund's assets will be U.S. Treasury
securities, money market instruments, and cash.
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    \9\ With respect to a particular credit market, a ``long
position'' means that an investor expects that the issuers of debt
securities in a particular debt market will be able to meet their
obligations in accordance with the terms of such debt securities in
full and on-time. With respect to a particular credit market, a
``short position'' means that an investor expects there will be an
increased likelihood that the issuers of debt securities in a
particular debt market will not be able to meet their obligations in
accordance with the terms of such debt securities in full or on-
time.
    \10\ The Markit CDX North American Investment Grade 5-year Total
Return Index is designed to track the credit quality of 125
investment grade North American debt issuers or the unsubordinated
debt obligations of such debt issuers. The Markit CDX North American
High Yield 5-year Total Return Index is designed to track the credit
quality of 100 high yield North American debt issuers or the
unsubordinated debt obligations of such debt issuers.
    \11\ In general, no leverage means that, for each $100 million
of assets under management, the relevant Fund will be a net buyer or
seller (consistent with its investment objective) of protection on
$100 million.
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A. Principal Investments

    To meet its respective investment objective, under normal market
conditions,\12\ each Fund intends to invest substantially all of its
assets in: (1) CDS that are cleared by a clearing organization \13\ and
which are either (a) CDS index swaps, including swaps based on the CDX
Index (``CDX Index swaps''), based on multiple CDS relating to the debt
issued by different Reference Entities,\14\ or (b) ``Single Name CDS,''
which are CDS that relate only to the debt issued by a single Reference
Entity; \15\ (2) futures contracts based on CDS or other similar
futures contracts; and (3) obligations of, or those guaranteed by, the
United States government with a maturity of less than six years (``U.S.
Treasury securities''), money market instruments, and cash. Each of the
Funds' investments, including derivatives, will be consistent with its
investment objective.
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    \12\ The term ``under normal market conditions'' includes, but
is not limited to, the absence of extreme volatility or trading
halts in the fixed income markets or the financial markets
generally; events or circumstances causing a disruption in market
liquidity or orderly markets; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption, or any similar intervening circumstance.
    \13\ The Funds intend to use ICE Clear Credit LLC and CME
Clearing as the clearing organizations for their cleared CDS. ICE
Clear Credit LLC is a subsidiary of the IntercontinentalExchange,
Inc. ICE Clear Credit LLC is registered with the Commodity Futures
Trading Commission (``CFTC'') as a clearing house for credit default
swaps, including CDX Index swaps. CME Clearing is a division of
Chicago Mercantile Exchange Inc. (``CME''), which is a subsidiary of
the CME Group Inc. CME is registered with the CFTC as a clearing
house for CDS, including CDX Index swaps.
    \14\ The Exchange states that a ``Reference Entity'' is the
entity whose debt underlies a Single Name CDS. A Reference Entity
can be a corporation, government, or other legal entity that issues
debt of any kind. The Exchange also states that CDX Index swaps are
based on a particular index that includes Single Name CDS of several
Reference Entities.
    \15\ Fund transactions in CDS cleared through a clearing
organization that have been designated by the CFTC or the Commission
as ``made available to trade'' will be executed on exchanges or on a
swap execution facility subject to CFTC or Commission oversight or
regulation.
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1. ETSpreads IG Long Credit Fund
    The investment objective of the Fund is to provide long exposure to
the credit of a diversified portfolio of North

American investment grade debt issuers. With respect to a particular
credit market, a ``long position'' means that an investor expects that
the issuers of debt securities in a particular debt market will be able
to meet their obligations in accordance with the terms of such debt
securities in full and on-time. The Fund will invest, under normal
market conditions, substantially all of its assets in (i) CDS cleared
by a clearing organization which are either (a) CDS index swaps based
on multiple CDS relating to the debt issued by different Reference
Entities, or (b) Single Name CDS based on CDS relating to the debt
issued by a single Reference Entity; (ii) futures contracts based on
CDS or other similar futures contracts; and (iii) U.S. Treasury
securities, money market instruments, and cash. In order to gain
exposure to the investment grade credit market, the Fund will normally
be a net protection seller under its CDS, and will be required to make
payments to the protection buyer when a specified adverse credit event
occurs relating to a Reference Entity.
    If the Fund is successful in meeting its objective, its NAV should
generally increase when the North American investment grade credit
market is improving. Conversely, its NAV should generally decrease when
the North American investment grade credit market is deteriorating.
2. ETSpreads IG Short Credit Fund
    The investment objective of the Fund is to provide short exposure
to the credit of a diversified portfolio of North American investment
grade debt issuers. The Fund will invest, under normal market
conditions, substantially all of its assets in (i) CDS cleared by a
clearing organization which are either (a) CDS index swaps based on
multiple CDS relating to the debt issued by different Reference
Entities, or (b) Single Name CDS based on CDS relating to the debt
issued by a single Reference Entity; (ii) futures contracts based on
CDS or other similar futures contracts; and (iii) U.S. Treasury
securities, money market instruments, and cash. To gain short exposure
to the investment grade credit market, the Fund will normally be a net
protection buyer under its CDS, and therefore will be required to make
the ongoing payments specified under such contracts that represent the
cost of purchasing protection from adverse credit events relating to a
Reference Entity.
    If the Fund is successful in meeting its objective, its NAV should
generally decrease as the North American investment grade credit market
is improving. Conversely, its NAV should generally increase as the
North American investment grade credit market is deteriorating.
3. ETSpreads HY Long Credit Fund
    The investment objective of the Fund is to provide long exposure to
the credit of a diversified portfolio of North American high yield debt
issuers. The Fund will invest, under normal market conditions,
substantially all of its assets in (i) CDS cleared by a clearing
organization which are either (a) CDS index swaps based on multiple CDS
relating to the debt issued by different Reference Entities, or (b)
Single Name CDS based on CDS relating to the debt issued by a single
Reference Entity; (ii) futures contracts based on CDS or other similar
futures contracts; and (iii) U.S. Treasury securities, money market
instruments, and cash. To gain exposure to the high yield credit
market, the Fund will normally be a net protection seller under its
CDS, i.e., it will be required to make payments to the protection buyer
when a specified adverse credit event occurs relating to a Reference
Entity.
    If the Fund is successful in meeting its objective, its NAV should
generally increase when the North American high yield credit market is
rallying, which means that credit quality is improving and differences
or ``spreads'' between the returns on high yield debt securities
generally and the returns on debt securities with comparable maturities
that are essentially free of credit risk (such as U.S. Treasury
securities) are decreasing or ``tightening.'' Conversely, its NAV
should generally decrease when the North American high yield credit
market is falling (going down), credit quality is deteriorating, and
spreads are increasing or ``widening.''
4. ETSpreads HY Short Credit Fund
    The investment objective of the Fund is to provide short exposure
to the credit of a diversified portfolio of North American high yield
debt issuers. The Fund will invest substantially all of its assets in
(i) CDS cleared by a clearing organization which are either (a) CDS
index swaps based on multiple CDS relating to the debt issued by
different Reference Entities, or (b) Single Name CDS based on CDS
relating to the debt issued by a single Reference Entity; (ii) futures
contracts based on CDS or other similar futures contracts; and (iii)
U.S. Treasury securities, money market instruments, and cash. To gain
short exposure to the high yield credit market, the Fund will normally
be a net protection buyer under its CDS, i.e., it will be required to
make the ongoing payments specified under such contracts that represent
the cost of purchasing protection from adverse credit events relating
to a Reference Entity.
    If the Fund is successful in meeting its objective, its NAV should
generally decrease when the North American high yield credit market is
improving. Conversely, its NAV should generally increase as the North
American high yield credit market is deteriorating.

B. Non-Principal Investments of the Funds

    While each Fund will invest, under normal market conditions,
substantially all of its assets as described above under each Fund's
principal investment strategies, each Fund may invest in, to the extent
that CDS cleared by a clearing organization are not available, fully
collateralized non-cleared CDS transactions,\16\ and (1) to the extent
available, options that are cleared through a clearing organization
regulated or subject to the oversight of the CFTC or the Commission
\17\ and (2) if options cleared through a clearing organization are not
available, fully collateralized non-cleared OTC options, in each case,
relating to the following: options on CDS, options on CDS futures,
options on CDS indexes and options on U.S. Treasury securities.\18\
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    \16\ To reduce the credit risk that arises in connection with
investments in non-cleared swaps, each of the Funds generally will
enter into an agreement with each counterparty based on a Master
Agreement published by the International Swaps and Derivatives
Association, Inc. that provides for the netting of its overall
exposure to its counterparty. The Adviser will assess or review, as
appropriate, the creditworthiness of each potential or existing
counterparty to an over-the-counter (``OTC'') contract pursuant to
guidelines approved by the Adviser. Furthermore, the Adviser on
behalf of the Funds will only enter into OTC contracts with
counterparties who are, or are affiliates of, (a) banks regulated by
a United States federal bank regulator, (b) swap dealers or
securities based swap dealers regulated by the CFTC and/or the
Commission, (c) broker-dealers regulated by the Commission, or (d)
insurance companies domiciled in the United States. Existing
counterparties will be reviewed periodically by the Adviser. The
Funds also may require that the counterparty be highly rated or
provide collateral or other credit support.
    \17\ Fund transactions in options cleared through a clearing
organization that have been designated by the CFTC or the Commission
as ``made available to trade'' will be executed by the Funds on an
exchange or on a swap execution facility subject to CFTC or
Commission oversight or regulation.
    \18\ The Exchange states that each of the Funds' CDS
transactions, whether cleared or uncleared, and the options
described above will be subject to CFTC or Commission reporting,
including the reporting of detailed transaction data to swap data
repositories subject to CFTC or the Commission oversight or
regulation. According to the Exchange, all swap transaction data,
including data on options, will be available to the CFTC and the
Commission and certain bank or other regulators. In addition, with
certain exceptions (e.g., delays for large block trades), a portion
of each CDS transaction's data will be available to major market
data vendors on a real time, though anonymous, basis.

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    Each Fund also may utilize other types of swap agreements,
including but not limited to: total return swaps on debt, equity or CDS
or indexes relating to the foregoing; bond or corporate credit index
swaps; and interest rate swaps. A Fund may utilize these swap
agreements in an attempt to gain exposure to the investments used to
meet its investment objective in a market without actually purchasing
those investments, or to hedge a position.
    Each Fund may invest in the securities of other investment
companies, consistent with the requirements of Section 12(d)(1) of the
1940 Act, or any rule, regulation or order of the Commission or
interpretation thereof.
    Each Fund may enter into repurchase agreements with financial
institutions, which may be deemed to be loans. Each Fund follows
certain procedures designed to minimize the risks inherent in such
agreements. These procedures include effecting repurchase transactions
only with large, well-capitalized, and well-established financial
institutions whose condition will be continually monitored by the
Adviser. In addition, the value of the collateral underlying the
repurchase agreement will always be at least equal to the repurchase
price, including any accrued interest earned on the repurchase
agreement.

C. The Funds' Investment Restrictions

    Each of the Funds may hold up to an aggregate amount of 15% of its
net assets in illiquid investments (calculated at the time of
investment) in accordance with Commission staff guidance. The Funds
will monitor their portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will take appropriate steps in order
to maintain adequate liquidity if, through a change in values, net
assets, or other circumstances, more than 15% of a Fund's net assets
are held in illiquid investments. Illiquid investments include
investments subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.
    The Funds will not invest in any equity securities except for
investment company securities, and will be non-diversified, which means
that a Fund may invest its assets in a smaller number of issuers than a
diversified fund. In addition, the Funds intend to invest only in
futures contracts traded on exchanges that are subject to CFTC or
Commission oversight or regulation.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Exchange
Act and the rules and regulations thereunder applicable to a national
securities exchange.\19\ In particular, the Commission finds that the
proposed rule change, as modified by Amendment No. 1 thereto, is
consistent with Section 6(b)(5) of the Exchange Act,\20\ which
requires, among other things, that the Exchange's rules be designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. The Commission notes that the Funds and the Shares must
comply with the requirements of NYSE Arca Equities Rule 8.600 for the
Shares to be listed and traded on the Exchange.
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    \19\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \20\ 15 U.S.C. 78f(b)(5).
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    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Exchange Act,\21\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. Quotation and last-sale
information for the Shares and exchange-traded investment company
securities will be available via the Consolidated Tape Association
(``CTA'') high-speed line. Information regarding market price and
trading volume of the Shares will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services. Information regarding the previous day's closing
price and trading volume information for the Shares will be published
daily in the financial section of newspapers.
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    \21\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    The Commission also believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. On each business day, before commencement of trading in Shares
in the Core Trading Session (9:30 a.m. to 4:00 p.m. Eastern Time) on
the Exchange, the Funds will disclose on their Web site the Disclosed
Portfolio, as defined in NYSE Arca Equities Rule 8.600(c)(2), that will
form the basis for the Funds' calculation of NAV at the end of the
business day.\22\ The Web site information will be publicly available
at no charge. The NAV per Share of each Fund will be calculated by The
Bank of New York Mellon and determined as of the close of regular
trading on the Exchange (ordinarily 4:00 p.m. Eastern Time) on each day
that the Exchange is open. The Exchange will obtain a representation
from the issuer of the Shares that the NAV per share will be calculated
daily and that the NAV and the Disclosed Portfolio will be made
available to all market participants at the same time.
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    \22\ Under accounting procedures followed by the Funds, trades
made on the prior business day (T) will be booked and reflected in
NAV on the current business day (T+1). Accordingly, the Funds will
be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
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    According to the Exchange, market participants, particularly large
institutional investors, regularly receive executable and indicative
quotations on CDS from dealers. In addition, intra-day and end-of-day
prices for all Single Name CDS, CDS index swaps, or other financial
instruments held by a Fund will be available through major market data
vendors or broker-dealers or on the exchanges on which they are traded.
Major market vendors which provide intra-day and end-of-day prices for
both Single Name CDS and CDS index swaps include Markit, Credit Market
Analysis Ltd., and Bloomberg L.P. Bloomberg L.P., Thomson Reuters
Corporation, and similar data vendors provide intra-day and end-of-day
pricing data for U.S. Treasury securities and money market instruments.
Exchanges which provide intraday and end-of-day prices for futures and
options on futures include ICE Futures and CME Group. Broker-dealers
provide intraday and end-of-day prices for non-cleared swaps and
options, including options on Single Name CDS and options on CDS index
swaps.
    The Exchange further states that ICE Clear Credit LLC and CME
Clearing provide daily price and transaction information for swaps that
it or its affiliate clears by subscription to its members and other
market participants.

Additionally, pricing intraday regarding various CDS index swaps is
provided free to the public, with a fifteen minute delay, on the Markit
Web site (https://source.markit.com). Daily trading volume of cleared
swaps transacted via the ICE Clear Credit LLC and CME Clearing clearing
organizations is also available through their respective Web sites.
    According to the Exchange, another source of intra-day information
about Single Name CDS prices is the market for OTC corporate bonds on
which the CDS are based. Because CDS represent the credit risk
component of corporate bonds, and the effect of interest rate changes
on the prices of corporate bonds is readily calculable, market
professionals are able to obtain substantial information about the
intra-day value of CDS based on data on the intra-day value of the
underlying corporate bonds (short-term variations between the bond and
CDS markets do arise, and may occur more frequently when such markets
are volatile). One source of bond price information is the Financial
Industry Regulatory Authority's (``FINRA'') Trace Reporting and
Compliance System (``TRACE''). TRACE reports executed prices on
corporate bonds, including high-yield bond transactions. TRACE reported
prices are available without charge on the FINRA Web site on a ``real
time'' basis (subject to a fifteen minute delay) and also are available
by subscription from various information providers. In addition,
authorized participants and other market participants, particularly
those that regularly deal or trade in corporate bonds, have access to
intra-day corporate bond prices from a variety of sources other than
TRACE, such as Thomson Reuters, Interactive Data and MarketAxess.
    The Exchange states that the intraday, closing, and settlement
prices of U.S. Treasury securities, money market instruments, and
repurchase agreements will be readily available from published or other
public sources, or major market data vendors such as Bloomberg and
Thomson Reuters. Price information regarding exchange-traded options is
available from the exchanges on which such instruments are traded and
from Market Data Express's (an affiliate of Chicago Board Options
Exchange) Customized Option Pricing Service. Price information
regarding OTC options is available from major market data vendors.
Intra-day and closing price information for shares of exchange-listed
investment company securities are available from the exchange on which
such securities are principally traded and from major market data
vendors. The NAV of any investment company security investment will be
readily available on the Web site of the relevant investment company
and from major market data vendors. Major market data vendors also
provide intra-day and end-of-day prices for total return swaps, bond,
or corporate credit index swaps, and interest rate swaps.
    The Exchange states that the Portfolio Indicative Value of the
Funds, as defined in NYSE Arca Equities Rule 8.600(c)(3), will be
widely disseminated by one or more major market data vendors at least
every 15 seconds during the Core Trading Session.\23\ In addition, the
Web site for the Funds will include a form of the prospectus for the
Funds and additional data relating to NAV and other applicable
quantitative information. The Exchange represents that trading in
Shares of the Funds will be halted if the circuit breaker parameters in
NYSE Arca Equities Rule 7.12 have been reached. Trading also may be
halted because of market conditions or for reasons that, in the view of
the Exchange, make trading in the Shares inadvisable,\24\ and trading
in the Shares will be subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth circumstances under which Shares of
the Funds may be halted.
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    \23\ According to the Exchange, several major market data
vendors display or make widely available Portfolio Indicative Values
taken from the CTA or other data feeds.
    \24\ These reasons may include: (1) the extent to which trading
is not occurring in the securities or the financial instruments
comprising the Disclosed Portfolio of a Fund; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance
of a fair and orderly market are present. The Exchange represents
that it may consider all relevant factors in exercising its
discretion to halt or suspend trading in the Shares of a Fund.
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    The Exchange states that it has a general policy prohibiting the
distribution of material, non-public information by its employees. The
Commission notes that, consistent with NYSE Arca Equities Rule
8.600(d)(2)(B)(ii), the Reporting Authority, must implement and
maintain, or be subject to, procedures designed to prevent the use and
dissemination of material, non-public information regarding the actual
components of each Fund's portfolio.\25\ The Exchange states that the
Adviser has implemented a ``fire wall'' with respect to its broker-
dealer affiliate regarding access to information concerning the
composition or changes to the Funds' portfolios.\26\ Prior to the
commencement of trading, the Exchange will inform its Equity Trading
Permit Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares. FINRA, on
behalf of the Exchange,\27\ will communicate as needed regarding
trading in the Shares, futures, exchange-listed options, and exchange-
listed investment company securities with other markets and other
entities that are members of the Intermarket Surveillance Group
(``ISG'').\28\ The Exchange also states that FINRA, on behalf of the
Exchange, may obtain trading information regarding trading in the
Shares, futures, exchange-listed options, and exchange-listed
investment company securities from such markets and other entities. In
addition, the Exchange may obtain information regarding trading in the
Shares, futures, exchange-listed options, and exchange-listed
investment company securities from markets and other entities that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. FINRA, on behalf of the Exchange, also
is able to access, as needed, trade information for certain fixed-
income securities held by the Funds reported to FINRA's TRACE.
---------------------------------------------------------------------------

    \25\ See NYSE Arca Equities Rule 8.600(d)(2)(D).
    \26\ See supra note 7 and accompanying text. The Exchange states
that an investment adviser to an open-end fund is required to be
registered under the Advisers Act. As a result, the Adviser and its
related personnel are subject to the provisions of Rule 204A-1 under
the Advisers Act relating to codes of ethics.
    \27\ The Exchange states that FINRA surveils trading on the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
    \28\ For a list of the current members of ISG, see
www.isgportal.org.
---------------------------------------------------------------------------

    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. In support of this
proposal, the Exchange has made representations, including:
    (1) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions (Opening, Core, and Late
Trading Sessions).
    (2) The Shares will conform to the initial and continuing listing
criteria under NYSE Arca Equities Rule 8.600.
    (3) Trading in the Shares will be subject to the existing trading
surveillances, administered by FINRA on behalf of the Exchange, which
are designed to detect violations of Exchange rules and applicable
federal securities laws, and that these procedures are adequate to
properly monitor Exchange trading of the Shares in all trading sessions
and to detect and help deter violations of Exchange rules

and federal securities laws applicable to trading on the Exchange.
    (4) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders in an Information Bulletin of the
special characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss the following: (a)
the procedures for purchases and redemptions of Shares in creation unit
aggregations (and that Shares are not individually redeemable); (b)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its Equity Trading Permit Holders to learn the essential facts
relating to every customer prior to trading the Shares; (c) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated Portfolio Indicative Value will not be
calculated or publicly disseminated; (d) how information regarding the
Portfolio Indicative Value is disseminated; (e) the requirement that
Equity Trading Permit Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (f) trading information.
    (5) For initial and continued listing, the Funds will be in
compliance with Rule 10A-3 under the Exchange Act,\29\ as provided by
NYSE Arca Equities Rule 5.3.
---------------------------------------------------------------------------

    \29\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (6) Each Fund's investments, including derivatives, will be
consistent with its respective investment objective.
    (7) A Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid investments (calculated at the time of investment).
    (8) A minimum of 100,000 Shares for each Fund will be outstanding
at the commencement of trading on the Exchange.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice, and
the Exchange's description of the Funds.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment No. 1 thereto, is consistent with
Section 6(b)(5) of the Act \30\ and the rules and regulations
thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Solicitation of Comments on Amendment No. 1

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 1
is consistent with the Act.
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2013-144 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArc-2013-144. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site http://www.sec.gov/rules/sro.shtml.
    Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.
    All submissions should refer to File Number SR-NYSEArca-2013-144
and should be submitted on or before May 9, 2014.

V. Accelerated Approval of Proposed Rule Change As Modified by
Amendment No. 1

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the thirtieth day
after the date of publication of notice in the Federal Register. The
proposed Amendment supplements the proposed rule change by expanding
the amount of disclosure regarding the Funds' holdings. The Commission
believes that this additional information will benefit market
participants. Accordingly, the Commission finds good cause, pursuant to
Section 19(b)(2) of the Act,\31\ to approve the proposed rule change,
as modified by Amendment No. 1, on an accelerated basis.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\32\ that the proposed rule change (SR-NYSEArca-2013-144), as
modified by Amendment No. 1 thereto, be, and it hereby is, approved on
an accelerated basis.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
---------------------------------------------------------------------------

    \33\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-08791 Filed 4-17-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 24 (Friday, February 5, 2016)]
[Notices]
[Pages 6254-6256]
[FR Doc No: 2016-02253]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP16-397-000,
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Sec.  4(d) Rate Filing: 01/20/16 Negotiated Rates--
Mercuria Energy Gas Trading LLC (HUB) 7540-89 to be effective 1/19/
2016.
    Filed Date: 1/20/16.
    Accession Number: 20160120-5069.
    Comments Due: 5 p.m. ET 2/1/16.

    Docket Numbers: RP16-398-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Sec.  4(d) Rate Filing: 01/20/16 Negotiated Rates--
Sequent Energy Management (HUB) 3075-89 to be effective 1/19/2016.
    Filed Date: 1/20/16.
    Accession Number: 20160120-5070.
    Comments Due: 5 p.m. ET 2/1/16.

    Docket Numbers: RP16-399-000.
    Applicants: Equitrans, L.P.
    Description: Sec.  4(d) Rate Filing: Service Priority Update to be
effective 2/20/2016.
    Filed Date: 1/20/16.
    Accession Number: 20160120-5144.
    Comments Due: 5 p.m. ET 2/1/16.

    Docket Numbers: RP16-400-000.
    Applicants: Gulf South Pipeline Company, LP.
    Description: Sec.  4(d) Rate Filing: Rate Case Settlement Amendment
Filing 8 to be effective 12/1/2015.
    Filed Date: 1/21/16.
    Accession Number: 20160121-5065.
    Comments Due: 5 p.m. ET 2/2/16.

    Docket Numbers: RP16-401-000.
    Applicants: High Point Gas Transmission, LLC.
    Description: Compliance filing Compliance of Cost and Revenue
Study.
    Filed Date: 1/22/16.
    Accession Number: 20160122-5044.
    Comments Due: 5 p.m. ET 2/3/16.

    Docket Numbers: RP16-402-000.
    Applicants: Empire Pipeline, Inc.
    Description: Sec.  4(d) Rate Filing: Update to ISS Rate Schedule
(Empire) to be effective 1/1/2016.
    Filed Date: 1/22/16.
    Accession Number: 20160122-5065.
    Comments Due: 5 p.m. ET 2/3/16.

    Docket Numbers: RP16-403-000.
    Applicants: Texas Eastern Transmission, LP.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates--Feb 2016.
Chevron TEAM2014 Releases to be effective 2/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5000.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-404-000.
    Applicants: Algonquin Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates for Feb 2016.
Colonial Releases to be effective 2/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5016.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-405-000.
    Applicants: Transcontinental Gas Pipe Line Company,
    Description: Sec.  4(d) Rate Filing: Negotiated Rates--Cherokee
AGL--Replacement Shippers--Feb 2016 to be effective 2/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5070.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-406-000.
    Applicants: Big Sandy Pipeline, LLC.
    Description: Compliance filing Big Sandy Fuel Filing effective 3-1-
2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5080.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-407-000.
    Applicants: Transcontinental Gas Pipe Line Company,
    Description: Sec.  4(d) Rate Filing: Maiden Delivery Lateral 3 Yr
Update Filing to be effective 3/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5108.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-408-000.
    Applicants: Kinder Morgan Illinois Pipeline LLC.
    Description: Penalty Revenue Crediting Report of Kinder Morgan
Illinois Pipeline LLC.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5180.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-409-000.
    Applicants: Panhandle Eastern Pipe Line Company, LP.
    Description: Compliance filing NAESB Version 3.0 Compliance to be
effective 4/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5209.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-410-000.
    Applicants: Trunkline Gas Company, LLC.
    Description: Compliance filing NAESB Version 3.0 Compliance to be
effective 4/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5212.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-411-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Sec.  4(d) Rate Filing: 01/27/16 Negotiated Rates--
Mercuria Energy Gas Trading LLC (HUB) 7540-89 to be effective 1/23/
2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5223.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-412-000.
    Applicants: Golden Triangle Storage, Inc.
    Description: Compliance filing Proposed Revisions to FERC Gas
Tariff to Comply With Order No. 587-W to be effective 4/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5230.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-413-000.
    Applicants: Granite State Gas Transmission, Inc.
    Description: Compliance filing Compliance to Commission Order 587-W
to be effective 4/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5299.
    Comments Due: 5 p.m. ET 2/8/16.
    Docket Numbers: RP16-414-000.
    Applicants: Midwestern Gas Transmission Company.
    Description: Sec.  4(d) Rate Filing: Non-Conforming and Negotiated
Rate Agreements--Northern Illinois Gas Company to be effective 2/1/
2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5394.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-415-000.
    Applicants: Florida Gas Transmission Company, LLC.
    Description: Compliance filing NAESB Version 3.0 Compliance to be
effective 4/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5411.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-416-000.
    Applicants: Kinetica Energy Express, LLC.
    Description: Compliance filing Compliance Filing for Order Nos.
587-W and 809 to be effective 4/1/2016.
    Filed Date: 1/27/16.
    Accession Number: 20160127-5442.
    Comments Due: 5 p.m. ET 2/8/16.

    Docket Numbers: RP16-417-000.
    Applicants: Questar Overthrust Pipeline Company.
    Description: Sec.  4(d) Rate Filing: ? 13.1 Version 4.0.0 to be
effective 3/1/2016.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5041.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-418-000.
    Applicants: Southern LNG Company, L.L.C.
    Description: Sec.  4(d) Rate Filing: Dredging Surcharge Cost
Adjustment--2016 to be effective 3/1/2016.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5043.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-419-000.
    Applicants: Great Lakes Gas Transmission Limited Par.
    Description: Semi-Annual Transporter's Use Report of Great Lakes
Gas Transmission Limited Partnership.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5092.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-420-000.
    Applicants: Kinder Morgan Louisiana Pipeline Company.
    Description: Penalty Revenue Crediting Report of Kinder Morgan
Louisiana Pipeline Company LLC.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5158.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-421-000.
    Applicants: MoGas Pipeline LLC.
    Description: Sec.  4(d) Rate Filing: MoGas NRA Filing to be
effective 2/1/2016.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5215.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-422-000.
    Applicants: Monroe Gas Storage Company, LLC.
    Description: Compliance filing MGS--Order 809--Compliance Filing--
Scheduling Timeline to be effective 4/1/2016.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5224.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-423-000.
    Applicants: Perryville Gas Storage LLC.
    Description: Compliance filing PER--Order 809--Compliance Filing--
Scheduling Timeline to be effective 4/1/2016.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5233.
    Comments Due: 5 p.m. ET 2/9/16.

    Docket Numbers: RP16-424-000.
    Applicants: Cadeville Gas Storage LLC.
    Description: Compliance filing CAD--Order 809--Compliance Filing--
Scheduling Timeline to be effective 4/1/2016.
    Filed Date: 1/28/16.
    Accession Number: 20160128-5236.
    Comments Due: 5 p.m. ET 2/9/16.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.

Filings in Existing Proceedings

    Docket Numbers: RP15-101-006.
    Applicants: Florida Gas Transmission Company, LLC.
    Description: Compliance filing RP15-101 Settlement Compliance
Filing to be effective 2/1/2016.
    Filed Date: 1/20/16.
    Accession Number: 20160120-5134.
    Comments Due: 5 p.m. ET 2/1/16.

    Docket Numbers: RP16-233-002.

    Applicants: SG Resources Mississippi, L.L.C.
    Description: Compliance filing SG Resources Mississippi, L.L.C.--
Revised Compliance Filing to be effective 12/31/2015.
    Filed Date: 1/21/16.
    Accession Number: 20160121-5069.
    Comments Due: 5 p.m. ET 2/2/16.

    Any person desiring to protest in any of the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR 385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system by

clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: February 1, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-02253 Filed 2-4-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: March 29, 2010 (Volume 75, Number 59)]
[Notices]
[Page 15479-15480]
[DOCID:fr29mr10-106]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61762; File No. SR-NSCC-2010-02]

Self-Regulatory Organizations; The National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change to Aggregate Obligations in Certain Securities Transactions
Designated for Settlement on a Trade-for-Trade Basis

March 23, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 4, 2010, The
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared primarily by NSCC. NSCC filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) \3\
thereunder so that the proposal was effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

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

    The purpose of the proposed rule change is to allow NSCC to
aggregate obligations in certain securities transactions designated for
settlement on a trade-for-trade basis.

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

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A),
(B) and (C) below, of the most significant aspects of such
statements.\4\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries
prepared by NSCC.
---------------------------------------------------------------------------

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

    NSCC may designate some or all transactions in a security to settle
on a trade-for-trade basis.\5\ In such cases, NSCC marks the
transaction as a Special Trade and provides the counterparties with
corresponding receive and deliver instructions to settle the
transaction between themselves. Independent of action by NSCC, members
may also agree to settle a transaction on a trade-for-trade basis and
mark it as a Special Trade.
---------------------------------------------------------------------------

    \5\ This practice is addressed by NSCC's Rules and Procedures in
the section titled ``Procedure II. Trade Comparison and Recording
Service.''
---------------------------------------------------------------------------

    NSCC proposes amending its Rules so that when NSCC is responsible
for designating a transaction to settle as a Special Trade it may
aggregate the daily receive and deliver obligations in that security
between the counterparties. As a result, each counterparty at the end
of the day would have only one aggregate receive obligation and one
aggregate deliver obligation in the designated security as opposed to
individually settling the multiple transactions.\6\ The resulting buy
order obligation and sell order obligation between the counterparties
would not be netted against each other.\7\ Receive and deliver orders
for transactions designated by Members as Special Trades would continue
to be issued on an individual transaction basis.
---------------------------------------------------------------------------

    \6\ As is currently the case for trade-for-trade items, NSCC
would not guaranty the settlement of transactions aggregated
pursuant to this proposal.
    \7\ For example, if on a given day Broker A has 15 buys against
Broker B in Security X, the transactions would be aggregated into
one receive obligation for A and one deliver obligation for B.
Likewise, if Broker A has 20 sells with Broker B on that same day
for the same security, those items would also be aggregated into one
deliver obligation for A and one receive obligation for B. In this
example, A and B would each have two settlement obligations with the
other party for Security X rather than the 35 obligations each would
have without aggregation.
---------------------------------------------------------------------------

    To facilitate this proposal, NSCC would amend Procedure II of its
Rules to provide for aggregated receive and deliver instructions for
trade-for-trade items and to clarify that receive and deliver
instructions for trade-for-trade items are reported on the Consolidated
Trade Summary. The proposed changes to NSCC's Rules can be found in
Exhibit 5 to proposed rule change SR-NSCC-2010-02 at http://
www.dtcc.com/downloads/legal/rule_filings/2010/nscc/2010-02.pdf.
    NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \8\ and the rules and
regulations thereunder applicable to NSCC because the proposed rule
change promotes efficiencies in the clearance and settlement of
securities transactions by modifying NSCC's Rules to reduce the number
of settlement obligations for members when NSCC designates a
transaction as a Special Trade.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have any
impact or impose any burden on competition.

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

    Written comments relating to the proposed rule change have not yet
been solicited or received. NSCC will notify the Commission of any
written comments received by NSCC.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(4) \10\ thereunder
because the proposed rule change effects a change in an existing
service of a registered clearing agency that: (i) Does not adversely
affect the safeguarding of securities or funds in the custody or
control of the clearing agency or for which it is responsible and (ii)
does not significantly affect the respective rights or obligations of
the clearing agency or persons using the service. At any time within
sixty days of the filing of such rule change, the Commission may
summarily abrogate such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

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

     Electronic comments may be submitted by using the
Commission's

Internet comment form (http://www.sec.gov/rules/sro.shtml), or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File No. SR-NSCC-2010-02 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2010-02. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at the principal office of NSCC and on NSCC's
Web site at http://www.dtcc.com/downloads/legal/rule_filings/2010/
nscc/2010-02.pdf.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to file number SR-NSCC-2010-02
and should be submitted on or before April 19, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6873 Filed 3-26-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 29 (Tuesday, February 14, 2017)]
[Rules and Regulations]
[Pages 10541-10544]
[FR Doc No: 2017-01338]

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Rules and Regulations
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Federal Register / Vol. 82, No. 29 / Tuesday, February 14, 2017 /
Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2014-0571; Directorate Identifier 2014-NM-059-AD;
Amendment 39-18782; AD 2017-02-03]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
The Boeing Company Model 767-200, -300, and -400ER series airplanes.
This AD was prompted by a report of a malfunction of the engine
indication and crew alerting system (EICAS) during flight. This AD
requires, for certain airplanes, a general visual inspection of the
spray shield, and related investigative and corrective actions if
necessary. We are issuing this AD to address the unsafe condition on
these products.

DATES: This AD is effective March 16, 2017.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of March 16,
2017.

ADDRESSES: For service information identified in this final rule,
contact Boeing Commercial Airplanes, Attention: Data & Services
Management, P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; telephone
206-544-5000, extension 1; fax<PHONE_NUMBER>; Internet https://www.myboeingfleet.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>. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2014-
0571.

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-2014-
0571; 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 AD, the regulatory evaluation, any comments received, and
other information. The address for the Docket Office (phone: 800-647-
5527) is Docket Management Facility, U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Stanley Chen, Aerospace Engineer,
Cabin Safety and Environmental Systems Branch, ANM-150S, FAA, Seattle
Aircraft Certification Office (ACO), 1601 Lind Avenue SW., Renton, WA
98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a supplemental notice of proposed rulemaking (SNPRM) to
amend 14 CFR part 39 by adding an AD that would apply to certain The
Boeing Company Model 767-200, -300, and -400ER series airplanes. The
SNPRM published in the Federal Register on April 13, 2016 (81 FR 21762)
(``the SNPRM''). We preceded the SNPRM with a notice of proposed
rulemaking (NPRM) that published in the Federal Register on August 14,
2014 (79 FR 47597) (``the NPRM''). The NPRM proposed to require an
inspection for plastic couplings, corrective actions if necessary, and
installation of new spray shrouds. The NPRM was prompted by a report of
a malfunction of the engine indication and crew alerting system (EICAS)
during flight. The SNPRM proposed, for certain airplanes, a general
visual inspection of the spray shield and related investigative and
corrective actions if necessary. We are issuing this AD to prevent an
uncontrolled water leak from a defective potable water system coupling,
which could cause the main equipment center (MEC) line replaceable
units (LRUs) to become wet, resulting in an electrical short and
potential loss of several functions essential for safe flight.

Comments

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

Request To Include Latest Service Information

    Boeing requested that we revise the SNPRM to include the latest
service information--Boeing Alert Service Bulletin 767-38A0073,
Revision 3, dated September 8, 2016, which added 10 airplanes to the
effectivity. The revised service information also added Part 5 of the
Work Instructions to enhance the hose installation between location 6
and location 9 for an airplane on which a post-production configuration
change had been made. Boeing noted that future revisions could be
published as conditions dictate.
    We partially agree with the request.
    To require Revision 3 in this AD would necessitate issuing another
supplemental NPRM to solicit comments on the merits of this change. We
have determined that an unsafe condition exists, and delaying this
action further would be inappropriate.
    However, we have added new content to paragraph (i) of this AD to
specify an additional method of compliance that was not part of the
SNPRM. This additional method of compliance allows the use of Revision
3 for the coupling inspection and spray shroud installation specified
in paragraph (g) of this AD.
    This AD retains the applicability specified in paragraph (c) of the
proposed AD (in the SNPRM). That is, this AD affects Model 767-200, -
300, and -400ER series airplanes that are identified in Boeing Alert
Service Bulletin 767-38A0073, Revision 2, dated August 10, 2015.
    Likewise, this AD retains the specific compliance method specified
in paragraphs (g) and (h) of the proposed AD (in the SNPRM). That is,
the actions must be done in accordance with Boeing Alert Service
Bulletin 767-38A0073, Revision 2, dated August 10, 2015. (See ``Request
to Revise Description of

Affected Airplanes'' for an explanation of the revision of paragraphs
(g) and (h) of the proposed AD (in the SNPRM).)
    For the 10 airplanes added in Boeing Alert Service Bulletin 767-
38A0073, Revision 3, dated September 8, 2016, we might consider
additional rulemaking to mandate the actions specified in this AD.

Request To Revise Description of Affected Airplanes

    Boeing requested that we revise paragraphs (g) and (h) of the
proposed AD (in the SNPRM) to remove the references to airplane groups.
Boeing explained that this change would simplify the wording of the AD
and avoid a potential mismatch between the AD and the service
information if grouping is adjusted in the future. Boeing stated that
the release of Boeing Alert Service Bulletin 767-38A0073, Revision 3,
dated September 8, 2016, makes paragraph (g) of the proposed AD (in the
SNPRM) incorrect because it does not account for newly added groups 14
and 15. Boeing also noted that future revisions could be published as
conditions indicate.
    We partially agree with the request. Paragraphs (g) and (h) of the
proposed AD (in the SNPRM) have been revised to restructure the content
into paragraph (g) in this AD and remove the references to specific
airplane groups. As stated previously, we might consider future
rulemaking to mandate the actions in this AD for the airplanes
identified as Groups 14 and 15 in Boeing Alert Service Bulletin 767-
38A0073, Revision 3, dated September 8, 2016.

Request for Clarification of Requirements

    Boeing requested that we revise paragraph (h) of the proposed AD
(in the SNPRM) (now paragraph (g)(2) in this AD) to change the phrase
``applicable related investigative and corrective actions'' to
``applicable corrective actions.'' Boeing indicated that this change
would clarify the intent of the proposed AD because, as written, the
proposed AD could be misinterpreted as requiring both the inspection
for discrepant shields and the resulting corrective action before
further flight.
    We disagree to remove the phrase ``related investigative
[actions],'' as requested. As explained in the SNPRM, related
investigative actions are follow-on actions that (1) are related to the
primary action, and (2) further investigate the nature of any condition
found; related investigative actions in an AD could include, for
example, inspections. Specifically, in this AD, the phrase ``related
investigative actions'' includes testing and repairing potable water
system leaks. We have not changed this final rule regarding this issue.

Request To Clarify Incorporation by Reference

    Paragraph (k) of the proposed AD (in the SNPRM) stated that Boeing
Alert Service Bulletin 767-38A0073, dated November 12, 2013; and Boeing
Service Bulletin 767-38A0073, Revision 1, dated November 5, 2014; are
not ``incorporated by reference in this AD.'' Boeing requested that we
delete that statement because its intent is unclear and could be
misinterpreted.
    We agree that clarification is necessary. Paragraph (k) in the
proposed AD (in the SNPRM) provides credit for compliance with the AD
for work completed using earlier revisions of the service information
that are not specifically mandated by the AD, while the latest revision
of the service information would be mandated. Although Boeing Alert
Service Bulletin 767-38A0073, dated November 12, 2013, and Boeing
Service Bulletin 767-38A0073, Revision 1, dated November 5, 2014, will
not be incorporated by reference in this AD, we agree to remove that
statement from paragraph (k) of the AD.

Request To Revise Phrasing in ``Credit for Previous Actions'' Paragraph

    Boeing requested that we revise paragraph (k) of the proposed AD
(in the SNPRM) to account for additional revisions that may be
necessary to identify in the AD, depending on the effective date of the
AD. Boeing stated that the proposed AD (in the SNPRM) would exclude
some groups from being given credit for accomplishment of the
referenced service information. Boeing stated that if airlines have
completed all actions in accordance with Boeing Alert Service Bulletin
767-38A0073, Revision 2, dated August 10, 2015, or Boeing Alert Service
Bulletin 767-38A0073, Revision 3, dated September 8, 2016, no groups
should be excluded.
    We do not agree that it is necessary to revise the service
information identified in paragraph (k) of this AD. As stated
previously, Boeing Alert Service Bulletin 767-38A0073, Revision 3,
dated September 8, 2016, is included in paragraph (i) of this AD to
provide an additional method of compliance for the requirements of
paragraph (g) of this AD. Additional credit for accomplishment of
Revision 3 is therefore unnecessary. This AD will provide credit for
only the accomplishment of Boeing Alert Service Bulletin 767-38A0073,
dated November 12, 2013; and Boeing Service Bulletin 767-38A0073,
Revision 1, dated November 5, 2014.

Effect of Winglets on Accomplishment of the Proposed Actions

    Aviation Partners Boeing stated that the installation of winglets
per supplemental type certificate (STC) ST01920SE does not affect the
accomplishment of the manufacturer's service instructions.
    We agree with the commenter that STC ST01920SE does not affect the
accomplishment of the manufacturer's service instructions. Therefore,
the installation of STC ST01920SE does not affect the ability to
accomplish the actions required by this AD. We have not changed this AD
in this regard.

Conclusion

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

Related Service Information Under 1 CFR Part 51

    We reviewed Boeing Alert Service Bulletin 767-38A0073, Revision 2,
dated August 10, 2015; and Boeing Alert Service Bulletin 767-38A0073,
Revision 3, dated September 8, 2016. The service information describes
procedures for a general visual inspection for plastic potable water
couplings, and applicable related investigative and corrective actions;
installation of new spray shrouds; and a general visual inspection of
the spray shield to determine if it has two slits and is installed
correctly, and applicable related investigative and corrective actions.
These documents are distinct since they are revisions of the same
service information and have different airplane groupings for different
configurations. This service information is reasonably available
because the interested parties have access to it through their normal
course of business or by the means identified in the ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects 136 airplanes of U.S. registry. We
estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
             Action                  Labor cost        Parts cost       Cost per product          operators
----------------------------------------------------------------------------------------------------------------
Part 1--inspection (Groups 1-3,  Up to 3 work-hours              $0  Up to $255...........  Up to $34,680.
 9, and 11, Configuration 1;      x $85 per hour =
 Groups 4-8, 10, and 12-13)       $255.
 (136 airplanes).
Part 2--inspection (Group 9,     2 work-hours x $85               0  $170.................  $5,440.
 Configuration 1; and Group 10)   per hour = $170.
 (32 airplanes).
Part 3--installation of spray    3 work-hours x $85             330  $585.................  $79,560.
 shrouds (136 airplanes).         per hour = $255.
Part 4--inspection (Groups 1-3,  2 work-hours x $85               0  $170.................  $5,100.
 9, and 11, Configuration 2)      per hour = $170.
 (30 airplanes).
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary on-condition
actions that would be required based on the results of the inspection.
We have no way of determining the number of aircraft that might need
these actions:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                 Action                          Labor cost           Parts cost          Cost per product
----------------------------------------------------------------------------------------------------------------
Related investigative actions..........  3 work-hours x $85 per                 $0  $255.
                                          hour = $255.
Corrective actions.....................  Up to 1 work-hour x $85                53  Up to $138.
                                          per hour = $85.
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some of the costs of this AD may be
covered under warranty, thereby reducing the cost impact on affected
individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our cost
estimate.

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

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2017-02-03 The Boeing Company: Amendment 39-18782; Docket No. FAA-
2014-0571; Directorate Identifier 2014-NM-059-AD.

(a) Effective Date

    This AD is effective March 16, 2017.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 767-200, -300, and -
400ER series airplanes, certificated in any category, as identified
in Boeing Alert Service Bulletin 767-38A0073, Revision 2, dated
August 10, 2015.

(d) Subject

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

(e) Unsafe Condition

    This AD was prompted by a report of a malfunction of the engine
indication and crew alerting system (EICAS) during flight. We are
issuing this AD to prevent an uncontrolled water leak from a
defective potable water system coupling, which could cause the main
equipment center (MEC) line replaceable units (LRUs) to become wet,
resulting in an electrical short and potential loss of several
functions essential for safe flight.

(f) Compliance

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

(g) Inspection of Couplings and Installation of Spray Shrouds

    For Groups and Configurations as identified in Boeing Alert
Service Bulletin 767-38A0073, Revision 2, dated August 10, 2015, as
applicable: At the applicable times identified in paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 767-38A0073,
Revision 2, dated August 10, 2015, except as required by paragraph
(h) of this AD, do the actions specified in paragraphs (g)(1) and
(g)(2) of this AD, as applicable.
    (1) Do a general visual inspection for plastic potable water
couplings; do all applicable related investigative and corrective
actions; and install new spray shrouds, including a new hose
assembly, as applicable; in accordance with the Accomplishment
Instructions of Boeing Alert Service Bulletin 767-38A0073, Revision
2, dated August 10, 2015. Do all applicable related investigative
and corrective actions within the applicable compliance time
identified in paragraph 1.E., ``Compliance,'' of Boeing Alert
Service Bulletin 767-38A0073, Revision 2, dated August 10, 2015,
except as required by paragraph (h) of this AD.
    (2) Within 72 months after the effective date of this AD, do a
general visual inspection of the spray shield to determine if it has
two slits and is installed correctly, and before further flight, do
all applicable related investigative and corrective actions, in
accordance with the Accomplishment Instructions of Boeing Alert
Service Bulletin 767-38A0073, Revision 2, dated August 10, 2015.

    Note 1 to paragraph (g) of this AD:  Operators can take optional
protective measures to cover or shield their equipment against water
spray when performing the Potable Water System Leakage Test, as
specified in Boeing Alert Service Bulletin 767-38A0073, Revision 2,
dated August 10, 2015.

(h) Exception to the Service Information

    Where paragraph 1.E., ``Compliance,'' of Boeing Alert Service
Bulletin 767-38A0073, Revision 2, dated August 10, 2015, specifies a
compliance time ``after the original issue date of this service
bulletin,'' this AD requires compliance within the specified
compliance time after the effective date of this AD.

(i) Additional Method of Compliance

    Boeing Alert Service Bulletin 767-38A0073, Revision 3, dated
September 8, 2016, is acceptable for compliance with the
requirements of paragraph (g) of this AD, as applicable to the
Groups and Configurations as identified in Boeing Alert Service
Bulletin 767-38A0073, Revision 3, dated September 8, 2016.

(j) Parts Installation Prohibition

    As of the effective date of this AD, no person may install any
plastic potable water coupling having part number (P/N) CA620 series
or P/N CA625 series on any airplane.

(k) Credit for Previous Actions

    For airplanes in Groups 4 through 8, 10, 12, and 13, as
identified in Boeing Alert Service Bulletin 767-38A0073, Revision 2,
dated August 10, 2015: This paragraph provides credit for the
actions specified in paragraph (g) of this AD, if those actions were
performed before the effective date of this AD using Boeing Alert
Service Bulletin 767-38A0073, dated November 12, 2013; or Boeing
Service Bulletin 767-38A0073, Revision 1, dated November 5, 2014.

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle 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 manager of the ACO, send it to the
attention of the person identified in paragraph (m)(1) of this AD.
Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair, modification, or alteration required by this AD
if it is approved by the Boeing Commercial Airplanes Organization
Designation Authorization (ODA) that has been authorized by the
Manager, Seattle ACO, to make those findings. To be approved, the
repair method, modification deviation, or alteration deviation must
meet the certification basis of the airplane, and the approval must
specifically refer to this AD.
    (4) For service information that contains steps that are labeled
as Required for Compliance (RC), the provisions of paragraphs
(l)(4)(i) and (l)(4)(ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step
and any figures identified in an RC step, must be done to comply
with the AD. If a step or substep is labeled ``RC Exempt,'' then the
RC requirement is removed from that step or substep. An AMOC is
required for any deviations to RC steps, including substeps and
identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted
methods in accordance with the operator's maintenance or inspection
program without obtaining approval of an AMOC, provided the RC
steps, including substeps and identified figures, can still be done
as specified, and the airplane can be put back in an airworthy
condition.

(m) Related Information

    (1) For more information about this AD, contact Stanley Chen,
Aerospace Engineer, Cabin Safety and Environmental Systems Branch,
ANM-150S, FAA, Seattle Aircraft Certification Office (ACO), 1601
Lind Avenue SW., Renton, WA 98057-3356; phone:<PHONE_NUMBER>; fax:
425-917-6590; email<EMAIL_ADDRESS>    (2) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (n)(3) and (n)(4) of this AD.

(n) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Boeing Alert Service Bulletin 767-38A0073, Revision 2, dated
August 10, 2015.
    (ii) Boeing Alert Service Bulletin 767-38A0073, Revision 3,
dated September 8, 2016.
    (3) For Boeing service information identified in this AD,
contact Boeing Commercial Airplanes, Attention: Data & Services
Management, P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207;
telephone<PHONE_NUMBER>, extension 1; fax<PHONE_NUMBER>; Internet
https://www.myboeingfleet.com.
    (4) 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
425-227-1221.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on January 11, 2017.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2017-01338 Filed 2-13-17; 8:45 am]
 BILLING CODE 4910-13-P