[Federal Register: March 15, 2007 (Volume 72, Number 50)]
[Notices]
[Page 12238-12239]
[DOCID:fr15mr07-113]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55425; File No. SR-CBOE-2006-73]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of Amendment No. 2 and Order Granting
Accelerated Approval of Proposed Rule Change as amended, to Amend
Certain of its Rules to Provide for the Listing and Trading of Options
on the CBOE Russell 2000 Volatility Index\sm\ (``RVX\sm\'')

    March 8, 2007.

I. Introduction

    On August 31, 2006, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') a proposed rule change, pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ to amend certain of its rules to
provide for the listing and trading of options on the CBOE Russell 2000
Volatility Index\sm\ (``RVXsm''). On October 20, 2006, CBOE
filed Amendment No. 1 to the proposed rule change. The proposed rule
change, as modified by Amendment No. 1, was published for comment in
the Federal Register on October 30, 2006.\3\ The Commission received no
comments on the proposal. On February 26, 2007, CBOE filed Amendment
No. 2 to the proposed rule change.\4\ This order provides notice of
Amendment No. 2 to the proposed rule change and approves the proposed
rule change as amended.
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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. 54643 (October 23,
2006), 71 FR 63367 (``Notice'').
    \4\ In Amendment No. 2, the Exchange represented that CBOE
Futures Exchange, LLC (``CFE'') does not currently list and trade
RVX futures. The Exchange further represented that it will not list
for trading RVX options until RVX futures have begun trading on CFE.
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II. Description of the Proposal

    The Exchange seeks to list and trade cash-settled, European-style
options on the RVX. The index is calculated using real-time Russell
2000 Index (``RUT'') option bid/ask quotes. RVX uses nearby and second
nearby RUT options with at least 8 days left to expiration and then
weights them to yield a constant, 30-day measure of the expected
volatility of the RUT.
    For each contract month, CBOE will determine the at-the-money
strike price. It will then select the at-the-money and out-of-the money
series with non-zero bid prices and determine the midpoint of the bid-
ask quote for each of these series. The midpoint quote of each series
is then weighted so that the further away that series is from the at-
the-money strike, the less weight that is accorded to the quote. Then,
to compute the index level, CBOE will calculate a volatility measure
for the nearby options and then for the second nearby options. This is
done using the weighted mid-point of the prevailing bid-ask quotes for
all included option series with the same expiration date. These
volatility measures are then interpolated to arrive at a single,
constant 30-day measure of volatility.\5\
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    \5\ The Exchange represented in its filing that the RVX is
calculated in the same manner as other volatility indexes (e.g., the
CBOE Volatility Index (``VIX'')), upon which options have been based
and previously approved by the Commission. A more detailed
explanation of the method used to calculate VIX may be found on
CBOE's Web site at the following internet address: http://www.cboe.com/micro/vix/vixwhite.pdf
.

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    CBOE will compute the index on a real-time basis throughout each
trading day, from 8:30 a.m. until 3:15 p.m. CST. Volatility index
levels will be calculated by CBOE and disseminated at 15-second
intervals to market information vendors via the Options Price Reporting
Authority (``OPRA'').
    Because of the generally limited range in which RVX has fluctuated,
the Exchange proposes to list series at $1.00 or greater strike price
intervals for each expiration on up to 5 RVX option series above and 5
RVX option series below the current index level. Additional series at
$1.00 or greater strike price intervals could be listed for each
expiration as the current index level of RVX moves from the exercise
price of the RVX options series that already have been opened for
trading on the Exchange in order to maintain at least 5 RVX option
series above and 5 RVX option series below the current index level.

    Additionally, the Exchange proposes that it would not list series
with $1.00 intervals within $0.50 of an existing $2.50 strike price
with the same expiration month (e.g., if there is an existing $12.50
strike, the Exchange would not list a $12.00 or $13.00 strike). The
interval between strike prices for RVX long-term option series
(``LEAPs(r)'') will continue to be no less than $2.50.

III. Discussion

    After careful review, the Commission finds that CBOE's proposal to
permit trading in options based on the RVX is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange \6\ and, in particular,
the requirements of Section 6 of the Act \7\ and the rules and
regulations thereunder. The Commission believes that CBOE's proposal
gives options investors the ability to make an additional investment
choice in a manner consistent with the requirements of Section 6(b)(5)
of the Act.\8\ The Commission further believes that trading options on
this volatility index provides investors with an important trading and
hedging mechanism.
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    \6\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    The Commission finds that it is consistent with the Act for CBOE to
apply its rules for trading of broad-based index options to RVX. The
Commission believes that because this volatility index is composed of
options on an index which the Commission has previously determined is
appropriate to treat as broad-based for purposes of CBOE's rules,\9\ it
is appropriate to apply to the RVX options the position limits,
exercise limits and margin requirements that apply to CBOE's component
index options.
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    \9\ See Securities Exchange Act Release No. 31382 (October 30,
1992), 57 FR 52802 (November 5, 1992) (SR-CBOE-92-02).
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    The Commission also notes CBOE's representation that it has
adequate surveillance procedures in place to monitor for manipulation
of the RVX options. In addition, the Commission notes that the Exchange
will use the same surveillance procedures currently utilized for each
of the Exchange's other index options to monitor trading in options on
the RVX and that CBOE believes that these surveillance procedures are
adequate to monitor the trading of options on the RVX. For surveillance
purposes, the Exchange will have complete access to information
regarding trading activity in the pertinent underlying securities.
    As explained by CBOE, the RVX fluctuates in a narrow range, and the
Commission believes that the implementation of $1 strike price
intervals in the RVX option product, within the parameters detailed in
CBOE's proposal, is appropriate. The Commission also finds that CBOE's
trading rules and other product specifications are consistent with the
Act. Because the exercise of these options will be cash-settled, RVX
options will be A.M.-settled on the business day following expiration,
in a manner that will deter manipulation.
    The Commission also notes CBOE's representations that it possesses
the necessary systems capacity to support new series that would result
from the introduction of RVX options and that CBOE also has been
informed that OPRA has the capacity to support such new series.
    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment Nos. 1 and 2 before the 30th day after
the date of publication of notice of filing of Amendment No. 2 in the
Federal Register. In Amendment No. 2, the Exchange represented that
CBOE Futures Exchange, LLC (``CFE'') does not currently list and trade
RVX futures and that the Exchange will not list for trading RVX options
until RVX futures have begun trading on CFE. The Commission believes
that this clarifying language is necessary because the Exchange plans
to use RVX futures prices as a proxy for ``implied forward'' RVX
levels.\10\
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    \10\ See Notice supra note 3.
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-CBOE-2006-73 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2006-73. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2006-73 and should be submitted on or before April
5, 2007.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-CBOE-2006-73), as amended,
be, and hereby is, approved on an accelerated basis.
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    \11\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, pursuant
to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).

Nancy M. Morris,
Secretary.
 [FR Doc. E7-4758 Filed 3-14-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Rules and Regulations]
[Pages 49482-49483]
[FR Doc No: 2018-21305]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2017-0954; Airspace Docket No. 17-AEA-16]
RIN 2120-AA66

Amendment of Class D and Class E Airspace; Beaver Falls, PA; and
Zelienople, PA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends Class E airspace extending upward from 700
feet or more above the surface at Beaver County Airport Beaver Falls,
PA, as the University of Pittsburg Medical Center Beaver Valley
Heliport has closed, and controlled airspace is no longer required. The
geographic coordinates of the Ellwood City VOR/DME, (incorrectly
identified as VORTAC), is amended in the associated Class E airspace.
Also, the term Airport Facility Directory is replaced with Chart
Supplement. This action also amends Class E airspace extending upward
from 700 feet or more above the surface at Zelienople Municipal Airport
(formerly Zelienople Airport), PA, by recognizing the airport's name
change and updating the airport's geographic coordinates. Controlled
airspace is necessary for the safety and management of instrument
flight rules (IFR) operations at these airports.

DATES: Effective 0901 UTC, January 3, 2019. The Director of the Federal
Register approves this incorporation by reference action under title 1,
Code of Federal Regulations, part 51, subject to the annual revision of
FAA Order 7400.11 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.11C, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11C at NARA, call<PHONE_NUMBER>, or go
to https://www.archives.gov/federal-register/cfr/ibr-locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, 1701
Columbia Ave., College Park, GA 30337; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. 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. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends Class D and Class E airspace at Beaver County Airport,
Beaver Falls, PA, and Zelienople Municipal Airport, Zelienople, PA, to
support IFR operations at these airports.

History

    The FAA published a notice of proposed rulemaking in the Federal
Register (83 FR 13708, March 30, 2018) for Docket No. FAA-2017-0954 to
amend Class D airspace, Class E airspace designated as an extension to
Class D or E surface area, and Class E airspace extending upward from
700 feet or more above the surface at Beaver County Airport, Beaver
Falls, PA, and Zelienople Municipal Airport, Zelienople, PA.
    Interested parties were invited to participate in this rulemaking
effort by submitting written comments on the proposal to the FAA. No
comments were received.
    Subsequent to publication, the FAA found the navaid incorrectly
listed as a VORTAC, instead of as a VOR/DME (VHF omnidirectional range/
distance measuring equipment), and the navaid longitude coordinate was
incorrect in the Beaver Falls, PA, designation, and is corrected in
this rule.
    Class D and E airspace designations are published in paragraph
5000, 6004, and 6005, respectively, of FAA Order 7400.11C dated August
13, 2018, and effective September 15, 2018, which is incorporated by
reference in 14 CFR part 71.1. The Class D and E airspace designations
listed in this document will be published subsequently in the Order.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11C, Airspace
Designations and Reporting Points, dated August 13, 2018, and effective
September 15, 2018. FAA Order 7400.11C is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11C lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Rule

    This amendment to Title 14 Code of Federal Regulations (14 CFR)
part 71 amends Class E airspace extending upward from 700 feet or more
above the surface at Beaver Falls, PA, by removing University of
Pittsburg Medical Center Beaver Valley Heliport, contained within the
Beaver County Airport airspace description, as the heliport has closed.
    The Ellwood City navaid name is corrected to VOR/DME from VORTAC.

The geographic coordinates of the Ellwood City VOR/DME are amended in
the associated Class E airspace to be in concert with the FAA's
aeronautical database. Also, an editorial change is made to the
associated Class E airspace legal descriptions replacing Airport
Facility Directory with Chart Supplement. Controlled airspace is
necessary for the safety and management of instrument flight rules
(IFR) operations at these airports.
    Additionally, the airport name is changed to Zelienople Municipal
Airport, Zelienople, PA, from Zelienople Airport, and the geographic
coordinates of this airport are adjusted to coincide with the FAA's
aeronautical database.
    Finally, the exclusionary language is removed from the airspace
descriptions of both airports, as it is not needed to describe the
boundaries.
    Class D and E airspace designations are published in Paragraphs
5000, 6004, and 6005, respectively, of FAA Order 7400.11C, dated August
13, 2018, and effective September 15, 2018, which is incorporated by
reference in 14 CFR 71.1. The Class E airspace designation listed in
this document will be published subsequently in the Order.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (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);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
only affects air traffic procedures and air navigation, it is certified
that this rule, when promulgated, does not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.11C, Airspace Designations and Reporting
Points, dated August 13, 2018, effective September 15, 2018, is amended
as follows:

Paragraph 5000 Class D Airspace.

* * * * *

AEA PA D Beaver Falls, PA [Amended]

Beaver County Airport, PA
    (Lat. 40[deg]46'21'' N, long. 80[deg]23'29'' W)

    That airspace extending upward from the surface to and including
3,800 feet MSL within a 3.9-mile radius of Beaver County Airport.
This Class D airspace area is effective during the specific dates
and times established in advance by a Notice to Airmen. The
effective date and time will thereafter be continuously published in
the Chart Supplement.

Paragraph 6004 Class E Airspace Designated as an Extension to Class
D or E Surface Area.

* * * * *

AEA PA E4 Beaver Falls, PA [Amended]

Beaver County Airport, PA
    (Lat. 40[deg]46'21'' N, long. 80[deg]23'29'' W)
Ellwood City VOR/DME
    (Lat. 40[deg]49'30'' N, long. 80[deg]12'42'' W)

    That airspace extending upward from the surface within 1.3 miles
each side of the Ellwood City VOR/DME 248[deg] radial extending from
the 3.9-mile radius of Beaver County Airport to 1.3 miles west of
the VOR/DME. This Class E airspace area is effective during the
specific dates and times established in advance by a Notice to
Airmen. The effective date and time will thereafter be continuously
published in the Chart Supplement.

Paragraph 6005 Class E Airspace Areas Extending Upward from 700
feet or More Above the Surface of the Earth.

* * * * *

AEA PA E5 Beaver Falls, PA [Amended]

Beaver County Airport, PA
    (Lat. 40[deg]46'21'' N, long. 80[deg]23'29'' W)
Ellwood City VOR/DME
    (Lat. 40[deg]49'30'' N, long. 80[deg]12'42'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.4-mile radius of Beaver County Airport, and within 1.8-
miles each side of Ellwood City VOR/DME 248[deg] radial extending
from the 6.4-mile radius to the VOR/DME.
* * * * *

AEA PA E5 Zelienople, PA [Amended]

Zelienople Municipal Airport, PA
    (Lat. 40[deg]48'07'' N, long. 80[deg]09'39'' W)

    That airspace extending upward from 700 feet above the surface
within a 6-mile radius of Zelienople Municipal Airport.

    Issued in College Park, Georgia, on September 24, 2018.
Ryan W. Almasy,
Manager, Operations Support Group, Eastern Service Center, Air Traffic
Organization.
[FR Doc. 2018-21305 Filed 10-1-18; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 139 (Thursday, July 19, 2018)]
[Notices]
[Page 34145]
[FR Doc No: 2018-15388]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4366-DR; Docket ID FEMA-2018-0001]

Hawaii; Amendment No. 1 to Notice of a Major Disaster Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Hawaii (FEMA-4366-DR), dated May 11, 2018, and related
determinations.

DATES: This amendment was issued June 14, 2018.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Hawaii is hereby amended to include Individual
Assistance for the following area among those areas determined to have
been adversely affected by the event declared a major disaster by the
President in his declaration of May 11, 2018.

    Hawaii County for Individual Assistance (already designated for
Public Assistance, including direct Federal assistance).

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050 Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Brock Long,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2018-15388 Filed 7-18-18; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 78, Number 79 (Wednesday, April 24, 2013)]
[Notices]
[Pages 24300-24301]
[FR Doc No: 2013-09697]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2006-24783; FMCSA-2007-27333; FMCSA-2009-0054; FMCSA-
2011-0010; FMCSA-2010-0201; FMCSA-2011-0024]

Qualification of Drivers; Exemption Applications; Vision

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

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

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SUMMARY: FMCSA announces its decision to renew the exemptions from the
vision requirement in the Federal Motor Carrier Safety Regulations for
15 individuals. FMCSA has statutory authority to exempt individuals
from the vision requirement if the exemptions granted will not
compromise safety. The Agency has concluded that granting these
exemption renewals will provide a level of safety that is equivalent to
or greater than the level of safety maintained without the exemptions
for these commercial motor vehicle (CMV) drivers.

DATES: This decision is effective May 13, 2013. Comments must be
received on or before May 24, 2013.

ADDRESSES: You may submit comments bearing the Federal Docket
Management System (FDMS) numbers: [Docket No. FMCSA-2006-24783; FMCSA-
2007-27333; FMCSA-2009-0054; FMCSA-2011-0010; FMCSA-2010-0201; FMCSA-
2011-0024], using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the on-line instructions for submitting
comments.
     Mail: Docket Management Facility; U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and
5 p.m., Monday through Friday, except Federal Holidays.
     Fax: 1-202-493-2251.
    Instructions: Each submission must include the Agency name and the
docket number for this notice. Note that DOT posts all comments
received without change to http://www.regulations.gov, including any
personal information included in a comment. Please see the Privacy Act
heading below.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov at any time or Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The Federal Docket Management System (FDMS) is
available 24 hours each day, 365 days each year. If you want
acknowledgment that we received your comments, please include a self-
addressed, stamped envelope or postcard or print the acknowledgement
page that appears after submitting comments on-line.
    Privacy Act: Anyone may search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or of the person signing the comment, if
submitted on behalf of an association, business, labor union, etc.).
You may review DOT's Privacy Act Statement for the Federal Docket
Management System (FDMS) published in the Federal Register on December
29, 2010 (75 FR 82132), or you may visit http://www.gpo.gov/fdsys/pkg/FR-2010-12-29/pdf/2010-32876.pdf.

FOR FURTHER INFORMATION CONTACT: Elaine M. Papp, Chief, Medical
Programs Division,<PHONE_NUMBER><EMAIL_ADDRESS>FMCSA,
Department of Transportation, 1200 New Jersey Avenue SE., Room W64-224,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.
Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Background

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may renew an exemption
from the vision requirements in 49 CFR 391.41(b)(10), which applies to
drivers of CMVs in interstate commerce, for a two-year period if it
finds ``such exemption would likely achieve a level of safety that is
equivalent to or greater than the level that would be achieved absent
such exemption.'' The procedures for requesting an exemption (including
renewals) are set out in 49 CFR part 381.

Exemption Decision

    This notice addresses 15 individuals who have requested renewal of
their exemptions in accordance with FMCSA procedures. FMCSA has
evaluated these 15 applications for renewal on their merits and decided
to extend each exemption for a renewable two-year period. They are:

David W. Bennett (NC)
Toby L. Carson (TN)
Johnnie L. Hall (MD)
Clifford D. Johnson (VA)
David J. Kibble (PA)
Michael Lafferty (ID)
Randy M. Lane (PA)
Dionicio Mendoza (TX)
Raymond J. Paiz (CA)
Michael O. Regentik (MI)
Ronald M. Robinson (KY)
Esequiel Rodriguez, Jr. (TX)
George K. Sizemore (NC)
Donald E. Stone (VA)
Richard A. Westfall (OH)

    The exemptions are extended subject to the following conditions:
(1) That each individual has a physical examination every year (a) by
an ophthalmologist or optometrist who attests that the vision in the
better eye continues to meet the requirements in 49 CFR 391.41(b)(10),
and (b) by a medical examiner who attests that the individual is
otherwise physically qualified under 49 CFR 391.41; (2) that each
individual provides a copy of the ophthalmologist's or optometrist's
report to the medical examiner at the time of the annual medical
examination; and (3) that each individual provide a copy of the annual
medical certification to the employer for retention in the driver's
qualification file and retains a copy of the certification on his/her
person while driving for presentation to a duly authorized Federal,
State, or local enforcement official. Each exemption will be valid for
two years unless rescinded earlier by FMCSA. The exemption will be
rescinded if: (1) The person fails to comply with the terms and
conditions of the exemption; (2) the exemption has resulted in a lower
level of safety than was maintained before it was granted; or (3)
continuation of the exemption would not be consistent with the goals
and objectives of 49 U.S.C. 31136(e) and 31315.

Basis for Renewing Exemptions

    Under 49 U.S.C. 31315(b)(1), an exemption may be granted for no
longer than two years from its approval date and may be renewed upon
application for additional two year periods. In accordance with 49
U.S.C. 31136(e) and 31315, each of the 15 applicants has satisfied the
entry conditions for

obtaining an exemption from the vision requirements (71 FR 32183; 71 FR
41310; 72 FR 12666; 72 FR 25831; 73 FR 61925; 74 FR 11988; 74 FR 15586;
74 FR 21427; 75 FR 54958; 75 FR 70078; 76 FR 9856 76 FR 17481; 76 FR
17483; 76 FR 20076; 76 FR 21796; 76 FR 28125). Each of these 15
applicants has requested renewal of the exemption and has submitted
evidence showing that the vision in the better eye continues to meet
the requirement specified at 49 CFR 391.41(b)(10) and that the vision
impairment is stable. In addition, a review of each record of safety
while driving with the respective vision deficiencies over the past two
years indicates each applicant continues to meet the vision exemption
requirements. These factors provide an adequate basis for predicting
each driver's ability to continue to drive safely in interstate
commerce. Therefore, FMCSA concludes that extending the exemption for
each renewal applicant for a period of two years is likely to achieve a
level of safety equal to that existing without the exemption.

Request for Comments

    FMCSA will review comments received at any time concerning a
particular driver's safety record and determine if the continuation of
the exemption is consistent with the requirements at 49 U.S.C. 31136(e)
and 31315. However, FMCSA requests that interested parties with
specific data concerning the safety records of these drivers submit
comments by May 24, 2013.
    FMCSA believes that the requirements for a renewal of an exemption
under 49 U.S.C. 31136(e) and 31315 can be satisfied by initially
granting the renewal and then requesting and evaluating, if needed,
subsequent comments submitted by interested parties. As indicated
above, the Agency previously published notices of final disposition
announcing its decision to exempt these 15 individuals from the vision
requirement in 49 CFR 391.41(b)(10). The final decision to grant an
exemption to each of these individuals was made on the merits of each
case and made only after careful consideration of the comments received
to its notices of applications. The notices of applications stated in
detail the qualifications, experience, and medical condition of each
applicant for an exemption from the vision requirements. That
information is available by consulting the above cited Federal Register
publications.
    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the statutory level of safety should immediately
notify FMCSA. The Agency will evaluate any adverse evidence submitted
and, if safety is being compromised or if continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315, FMCSA will take immediate steps to revoke the
exemption of a driver.

    Issued on: April 12, 2013.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2013-09697 Filed 4-23-13; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)]
[Notices]
[Pages 34185-34186]
[FR Doc No: 2015-14479]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75130; File No. SR-ISE-2015-19]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend the Schedule of Fees

June 9, 2015.
    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 June 1, 2015, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission the proposed rule change, as described in Items I, II, and
III below, which items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The ISE proposes to amend the Schedule of Fees to increase certain
complex order fees in Select Symbols, and to introduce tiered fees for
certain Market Maker complex orders based on affiliated Priority
Customer complex order volume. The text of the proposed rule change is
available on the Exchange's Web site (http://www.ise.com), at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.

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

1. Purpose
    The purpose of the proposed rule change is to increase certain
complex order fees in Select Symbols,\3\ and to introduce tiered fees
for certain Market Maker \4\ complex orders based on affiliated
Priority Customer \5\ complex order volume. Currently, the Exchange
charges complex order taker fees in Select Symbols that are $0.43 per
contract for Market Maker orders,\6\ and $0.44 per contract for Non-ISE
Market Maker,\7\ Firm Proprietary \8\/Broker-Dealer,\9\ and
---------------------------------------------------------------------------

    \3\ ``Select Symbols'' are options overlying all symbols listed
on the ISE that are in the Penny Pilot Program.
    \4\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Rule
100(a)(25).
    \5\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in ISE Rule 100(a)(37A).
    \6\ ISE Market Makers making or taking liquidity receive a
discount of $0.02 when trading against Priority Customer orders
preferenced to them in the Complex Order Book in equity options that
are able to be listed and traded on more than one options exchange.
This discount does not apply to FX Options Symbols or to option
classes designated by the Exchange to receive a guaranteed
allocation pursuant to ISE Rule 722(b)(3)(i)(B).
    \7\ A ``Non-ISE Market Maker'' is a market maker as defined in
Section 3(a)(38) of the Securities Exchange Act of 1934, as amended,
registered in the same options class on another options exchange.
    \8\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account.
    \9\ A ``Broker-Dealer'' order is an order submitted by a member
for a broker-dealer account that is not its own proprietary account.
---------------------------------------------------------------------------

    Professional Customer \10\ orders.\11\ The Exchange also charges an
equivalent maker fee in Select Symbols that applies specifically when
trading against Priority Customer orders. The Exchange now proposes to
increase the above fees for Non-ISE Market Maker, Firm Proprietary/
Broker-Dealer, and Professional Customer orders to $0.47 per contract.
For Market Maker orders, the Exchange proposes to charge a tiered fee
based on total affiliated Priority Customer complex order average daily
volume (``ADV'').\12\ As proposed, Market Makers with a total
affiliated Priority Customer ADV of up to 149,999 contracts will pay a
fee of $0.46 per contract, while Market Makers with a total affiliated
Priority Customer Complex ADV of 150,000 or more contracts will pay
fees at the current rate of $0.43 per contract.\13\
---------------------------------------------------------------------------

    \10\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer.
    \11\ Priority Customer Complex Orders are not charged maker/
taker fees and are instead provided a volume based rebate that
ranges from $0.30 per contract to $0.46 per contract in Select
Symbols.
    \12\ As is the case for other fees based on affiliated member
volume, the Exchange will continue to aggregate eligible volume from
affiliated members in determining total affiliated Priority Customer
Complex ADV, provided there is at least 75% common ownership between
the Members as reflected on each Member's Form BD, Schedule A.
     For purposes of determining Priority Customer Complex ADV, any
day that the complex order book is not open for the entire trading
day may be excluded from such calculation; provided that the
Exchange will only remove the day for members that would have a
lower ADV with the day included.
    \13\ The fee for the highest volume tier achieved will be
applied retroactively to all eligible volume once the threshold has
been reached.
     Preferenced Market Makers will continue to be eligible for a
$0.02 per contract discount as described in footnote 6 above.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\14\ in general, and
Section 6(b)(4) of the Act,\15\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed fee increase is reasonable
and equitable as the proposed fees are set at levels that the Exchange
believes will continue to be attractive to market participants that
trade on ISE, and offset rebates provided to Priority Customer complex
orders, which were recently

increased.\16\ Moreover, the proposed fees are competitive with fees
charged by other options exchanges and remain attractive to members for
this reason. The Exchange notes that Priority Customer orders will
continue to receive complex order rebates, while other market
participants will continue to pay a fee. The Exchange does not believe
that this is unfairly discriminatory as a Priority Customer is by
definition not a broker or dealer in securities, and does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). This limitation does
not apply to participants whose behavior is substantially similar to
that of market professionals, including Professional Customers, who
will generally submit a higher number of orders (many of which do not
result in executions) than Priority Customers. With respect to Market
Maker orders, the Exchange believes that it is reasonable and equitable
to charge lower fees to Market Makers with significant affiliated
Priority Customer complex order volume, as this will incentivize
members to bring additional order flow to ISE, creating additional
liquidity to the benefit of all members that trade complex orders on
the Exchange. The Exchange notes that the proposed tiered structure
will allow Market Makers to continue to pay the same fees that they pay
today by executing, through their affiliates, sufficient Priority
Customer complex order volume to qualify for the lower fee. The
Exchange does not believe that it is unfairly discriminatory only to
provide these lower fees to Market Maker orders as Market Makers are
subject to additional requirements and obligations (such as quoting
requirements) that other market participants are not.
---------------------------------------------------------------------------

    \16\ See Securities Exchange Act Release No. 74525 (March 18,
2015), 80 FR 15646 (March 24, 2015) (SR-ISE-2015-09).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\17\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
believes that the proposed complex order fees remain competitive with
fees charged by other options exchanges. The Exchange operates in a
highly competitive market in which market participants can readily
direct their order flow to competing venues. In such an environment,
the Exchange must continually review, and consider adjusting, its fees
and rebates to remain competitive with other exchanges. For the reasons
described above, the Exchange believes that the proposed fee changes
reflect this competitive environment.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \18\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\19\ because it establishes a due, fee, or other charge
imposed by ISE.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings 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_ADDRESS>Please include
File Number SR-ISE-2015-19 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE-2015-19. 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 ISE. 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-ISE-2015-19 and should be
submitted on or before July 6, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14479 Filed 6-12-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: December 10, 2008 (Volume 73, Number 238)]
[Notices]
[Page 75148-75150]
[DOCID:fr10de08-100]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59055; File Nos. SR-Amex-2008-68; SR-BSE-2008-51; SR-
CBOE-2008-72; SR-ISE-2008-58; SR-NYSEArca-2008-66; and SR-Phlx-2008-58]

Self-Regulatory Organizations; American Stock Exchange LLC,
Boston Stock Exchange, Inc., Chicago Board Options Exchange,
Incorporated, International Securities Exchange, LLC, NYSE Arca, Inc.,
and Philadelphia Stock Exchange, Inc.; Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Changes Relating to the
Listing and Trading Options on Shares of the iShares COMEX Gold Trust
and the iShares Silver Trust

December 4, 2008.
    Six options exchanges filed with the Securities and Exchange
Commission (``Commission'') proposed rule changes pursuant to Section
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule
19b-4 \2\ thereunder to list and trade options on shares of the iShares
COMEX Gold Trust and the iShares Silver Trust (``iShares Trust
Options''). Specifically, NYSE Arca, Inc. (``NYSE Arca'') submitted its
proposal on June 24, 2008; the Chicago Board Options Exchange,
Incorporated (``CBOE'') submitted its proposal on July 3, 2008; the
International Securities Exchange, LLC (``ISE'') submitted its proposal
on July 14, 2008; the Philadelphia Stock Exchange, Inc. (``Phlx'')
submitted its proposal on July 23, 2008; the American Stock Exchange
LLC (``Amex'') \3\ submitted its proposal on August 20, 2008; and the
Boston Stock Exchange, Inc. (``BSE'') submitted its proposal on
November 12, 2008. The proposals (collectively, the ``Proposals'')
submitted by the Amex, BSE, CBOE, ISE, NYSE Arca, and Phlx
(collectively, the ``Exchanges'') are substantively identical. The
Commission is publishing this notice to solicit comments on the
Proposals from interested persons and is approving the Proposals on an
accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On September 29, 2008, the Commission approved the merger of
The Amex Membership Corporation, Amex's parent, with NYSE Euronext.
See Securities Exchange Act Release No. 58673 (September 29, 2008),
73 FR 57707 (October 3, 2008) (SR-NYSE-2008-60 and SR-Amex-2008-62)
(approving the merger). As a result, Amex was renamed NYSE Alternext
US LLC. For the purposes of this order, the Commission will still
refer to Amex.
---------------------------------------------------------------------------

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

    The Exchanges each propose to amend certain of their respective
rules to enable the listing and trading of iShares Trust Options on
their markets. The text of the Proposals is available at each of the
respective Exchanges, the Commission's Public Reference Room, and
http://www.amex.com, http://www.bostonoptions.com, http://www.cboe.com,
http://www.iseoptions.com, http://www.nysearca.com, and http://
www.phlx.com.

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

    In their filings with the Commission, the Exchanges included
statements concerning the purpose of, and basis for, the Proposals. The
text of these statements may be examined at the places specified in
Item III below. The Exchanges have prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    Recently, the Commission approved the Exchanges' proposals to list
and trade options on the SPDR Gold Trust.\4\ Now, the Exchanges propose
to list and trade iShares Trust Options.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release Nos. 57894 (May 30,
2008), 73 FR 32061 (June 5, 2008) (SR-Amex-2008-15; SR-CBOE-2005-11;
SR-ISE-2008-12; SR-NYSEArca-2008-52; and SR-Phlx-2008-17); 58136
(July 10, 2008), 73 FR 40884 (July 16, 2008) (SR-BSE-2008-41)
(``SPDR Gold Trust Options Approval Orders'').
---------------------------------------------------------------------------

    Currently, the rules of the Exchanges permit only certain ``Units''
(also referred to herein as exchange traded funds (``ETFs'')) to
underlie options traded on their markets.\5\ Specifically, to be
eligible as an underlying security for options traded on the Exchanges,
an ETF must represent: (i) Interests in registered investment companies
(or series thereof) organized as open-end management investment
companies, unit investment trusts or similar entities that hold
portfolios of securities, and/or financial instruments including, but
not limited to, stock index futures contracts, options on futures,
options on securities and indexes, equity caps, collars and floors,
swap agreements, forward contracts, repurchase agreements and reverse
purchase agreements (``Financial Instruments''), and money market
instruments, including, but not limited to, U.S. government securities
and repurchase agreements (``Money Market Instruments'') comprising or
otherwise based on or representing investments in indexes or portfolios
of securities and/or Financial Instruments and Money Market Instruments
(or that hold securities in one or more other registered investment
companies that themselves hold such portfolios of securities and/or
Financial Instruments and Money Market Instruments); or (ii) interests
in a trust or similar entity that holds a specified non-U.S. currency
deposited with the trust or similar entity when aggregated in some
specified minimum number may be surrendered to the trust by the
beneficial owner to receive the specified non-U.S. currency and pays
the beneficial owner interest and other distributions on deposited non-
U.S. currency, if any, declared and paid by the trust; or (iii)
commodity pool interests principally engaged, directly or indirectly,
in holding and/or managing portfolios or baskets of securities,
commodity futures contracts, options on commodity futures contracts,
swaps, forward contracts and/or options on physical commodities and/or
non-U.S. currency; or (iv) are shares of the SPDR Gold Trust. The
Proposals would expand the types of ETFs that may be

approved for options trading on the Exchanges to include shares of the
iShares COMEX Gold Trust and the iShares Silver Trust.
---------------------------------------------------------------------------

    \5\ See Amex Rule 915 Commentary .06 and .10; Boston Options
Exchange (``BOX'') Rules, Chapter IV, Section 3(i); Interpretation
and Policy .06 to CBOE Rule 5.3; ISE Rule 5.2(h); NYSE Arca Rule
5.3(g); and Phlx Rule 1009 Commentary .06.
---------------------------------------------------------------------------

    Apart from allowing iShares Trust Options to be traded on the
Exchanges as described above, the Exchanges' listing standards would
remain unchanged. ETFs on which options may be listed and traded would
still have to be listed and traded on a national securities exchange
and satisfy the other listing standards set forth in the respective
rules of each of the Exchanges.\6\
---------------------------------------------------------------------------

    \6\ Id.
---------------------------------------------------------------------------

    Specifically, all ETFs underlying options would also continue to be
required to: (1) Meet the criteria and guidelines under the Exchanges'
rules for underlying ETFs; or (2) be available for creation or
redemption each business day from or through the issuer in cash or in
kind at a price related to net asset value, and the issuer must be
obligated to issue Units in a specified aggregate number even if some
or all of the investment assets required to be deposited have not been
received by the issuer, subject to the condition that the person
obligated to deposit the investments has undertaken to deliver the
investment assets as soon as possible and such undertaking is secured
by the delivery and maintenance of collateral consisting of cash or
cash equivalents satisfactory to the issuer, as provided in the
respective prospectus.\7\
---------------------------------------------------------------------------

    \7\ See Amex Rule 915 Commentary .06 and .10; BOX Rule Chapter
IV, Section 3(i)(A)-(B); Interpretation and Policy .01 and .06 to
CBOE Rule 5.3; ISE Rule 502(h)(A)-(B); NYSE Arca Rule 5.3(g)(1)(A)-
(B); and Phlx Rule 1009 Commentary .06.
---------------------------------------------------------------------------

    The Exchanges each propose that the current continued listing
standards for options on ETFs would apply to iShares Trust Options.
Specifically, options on Units may be subject to the suspension of
opening transactions as follows: (1) Following the initial twelve-month
period beginning upon the commencement of trading of the Units, there
are fewer than 50 record and/or beneficial holders of the Units for 30
or more consecutive trading days; (2) the value of the index or
portfolio of securities, non-U.S. currency, or portfolio of commodities
including commodity futures contracts, options on commodity futures
contracts, swaps, forward contracts and/or options on physical
commodities and/or Financial Instruments and Money Market Instruments
on which Units are based is no longer calculated or available; or (3)
such other event occurs or condition exists that in the opinion of the
exchanges makes further dealing on the exchange inadvisable.\8\
---------------------------------------------------------------------------

    \8\ See Amex Rule 916 Commentary .07 and .11; BOX Rule Chapter
IV, Section 3(i); Interpretation and Policy .08 to CBOE Rule 5.4;
ISE Rule 503(h); NYSE Arca Rule 5.4(k); and Phlx Rule 1010
Commentary .08.
---------------------------------------------------------------------------

    In addition, shares of the iShares COMEX Gold Trust and the iShares
Silver Trust would not be deemed to meet the requirements for continued
approval, and the Exchanges would not open for trading any additional
series of option contracts of the class covering shares of the iShares
COMEX Gold Trust and the iShares Silver Trust, if the shares cease to
be an ``NMS stock'' as provided for in rules of the Exchanges \9\ or
are halted from trading on their primary market.
---------------------------------------------------------------------------

    \9\ See Amex Rule 916 Commentary .07 and .11; BOX Rule Chapter
IV, Section 3(i); Interpretation and Policy .01 to CBOE Rule 5.4;
ISE Rule 503(h); NYSE Arca Rule 5.4(b); and Phlx Rule 1010.
---------------------------------------------------------------------------

    The Exchanges each represent that the addition of the iShares COMEX
Gold Trust and the iShares Silver Trust to types of Units that may
underlie listed options traded on the respective exchange would not
have any effect on the rules pertaining to position and exercise limits
\10\ or margin.\11\
---------------------------------------------------------------------------

    \10\ See Amex Rules 904 and 905; BOX Rules Chapter III, Sections
7 and 9; CBOE Rules 4.11 and 4.12; ISE Rules 412 and 414; NYSE Arca
Rules 6.8 and 6.9; and Phlx Rules 1001 and 1002.
    \11\ See Amex Rule 462; BOX Rules Chapter XIII, Sections 3; CBOE
Rule 12.3; ISE Rule 1202; NYSE Arca Rules 4.15 and 4.16; and Phlx
Rule 722.
---------------------------------------------------------------------------

    The Exchanges also represent that the respective surveillance
procedures applicable to iShares Trust Options would be similar to
those applicable to all other options on ETFs currently traded on the
Exchanges. In addition, the Exchanges note that they may obtain
information from the New York Mercantile Exchange, Inc. (``NYMEX'')
through the Intermarket Surveillance Group (``ISG'') related to any
financial instrument traded there that is based, in whole or in part,
upon an interest in, or performance of, gold or silver.
2. Statutory Basis
    The Exchanges each state that amending its rules to accommodate the
listing and trading of iShares Trust Options will benefit investors by
providing them with valuable risk management tools. Accordingly, the
Exchanges believe that the proposed rule changes are consistent with
the requirements of Section 6(b) of the Act \12\ in general, and
further the objectives of Section 6(b)(5) \13\ of the Act in
particular, in that they are 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchanges each believe that the proposed rule changes will not
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    The Exchanges each state that no written comments were solicited or
received with respect to the proposed rule changes.

III. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Nos. SR-Amex-2008-68; SR-BSE-2008-51; SR-CBOE-2008-72; SR-ISE-
2008-58; SR-NYSEArca-2008-66; and SR-Phlx-2008-58 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 Numbers SR-Amex-2008-68; SR-BSE-
2008-51; SR-CBOE-2008-72; SR-ISE-2008-58; SR-NYSEArca-2008-66; and SR-
Phlx-2008-58. This file number should be included on the subject line
if e-mail is used. To help the Commission process and review your
comments more efficiently, please use only one method. The Commission
will post all comments on the Commission's Internet Web site (http://
www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent
amendments, all written statements with respect to the proposed rule
change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the

public in accordance with the provisions of 5 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Room, 100 F Street, NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Numbers SR-Amex-2008-68; SR-BSE-2008-51; SR-CBOE-2008-72; SR-ISE-
2008-58; SR-NYSEArca-2008-66; and SR-Phlx-2008-58 and should be
submitted on or before December 31, 2008.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful consideration, the Commission finds that the
Proposals are consistent with the requirements of the Act and the rules
and regulations thereunder applicable to national securities exchanges
\14\ and, in particular, the requirements of Section 6 of the Act.\15\
Specifically, the Commission finds that the Proposals are consistent
with Section 6(b)(5) of the Act,\16\ which requires, among other
things, that the rules of a national securities exchange be designed 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. In accordance with the Memorandum of
Understanding entered into between the Commodity Futures Trading
Commission (``CFTC'') and the Commission on March 11, 2008, and in
particular the addendum thereto concerning Principles Governing the
Review of Novel Derivative Products, the Commission believes that novel
derivative products that implicate areas of overlapping regulatory
concern should be permitted to trade in either or both a CFTC- or
Commission-regulated environment, in a manner consistent with laws and
regulations (including the appropriate use of all available exemptive
and interpretive authority).
---------------------------------------------------------------------------

    \14\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
    \15\ 15 U.S.C. 78f.
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As national securities exchanges, each of the Exchanges is required
under Section 6(b)(1) of the Act \17\ to enforce compliance by its
members, and persons associated with its members, with the provisions
of the Act, Commission rules and regulations thereunder, and its own
rules. In addition, brokers that trade iShares Trust Options will also
be subject to best execution obligations and FINRA rules.\18\
Applicable rules of the Exchanges also require that customers receive
appropriate disclosure before trading iShares Trust Options.\19\
Further, brokers opening accounts and recommending options transactions
must comply with relevant customer suitability standards.\20\
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b)(1).
    \18\ See FINRA Rule 2320.
    \19\ See Amex Rule 926; BOX Rules Chapter XI, Section 17; CBOE
Rule 9.15; ISE Rule 616; NYSE Arca Rule 9.18(g); and Phlx Rule 1029.
    \20\ See FINRA Rules 2860, 2860-2 and 2310; Amex Rule 923; BOX
Rules Chapter XI, Section 11; CBOE Rules 9.7 and 9.9; ISE Rules 608
and 610; NYSE Arca Rule 918(b)-(c); and Phlx Rules 1024 and 1026.
---------------------------------------------------------------------------

    iShares Trust Options will trade as options under the trading rules
of each of the Exchanges. These rules, among other things, are designed
to avoid trading through better displayed prices for iShares Trust
Options available on other exchanges and, thereby, satisfy each
exchange's obligation under the Options Intermarket Linkage Plan.\21\
Series of the iShares Trust Options will be subject to the Exchanges'
rules regarding continued listing requirements, including standards
applicable to the underlying iShares COMEX Gold Trust and the iShares
Silver Trust. Shares of the iShares COMEX Gold Trust and the iShares
Silver Trust must continue to be traded through a national securities
exchange or through the facilities of a national securities
association, and must be ``NMS stock'' as defined under Rule 600 of
Regulation NMS.\22\ In addition, the underlying shares must continue to
be available for creation or redemption each business day from or
through the issuer in cash or in kind at a price related to net asset
value.\23\ If shares of the iShares COMEX Gold Trust and the iShares
Silver Trust fail to meet these requirements, the Exchanges will not
open for trading any new series of iShares Trust Options.
---------------------------------------------------------------------------

    \21\ See Amex Rule 942; BOX Rules Chapter XII, Section 3; CBOE
Rule 6.83; ISE Rule 1902; NYSE Arca Rule 6.94; and Phlx Rule 1085.
Specifically, each of the exchanges is a participant in the Options
Intermarket Linkage Plan.
    \22\ 17 CFR 242.600.
    \23\ See Amex Rule 915 Commentary .06 and .10; BOX Rules Chapter
IV, Section 3(i); Interpretation and Policy .06 to CBOE Rule 5.3;
ISE Rule 502(a)-(b); NYSE Arca Rule 5.3(a)-(b); and Phlx Rule 1009
Commentary .06.
---------------------------------------------------------------------------

    The Exchanges have all represented that they have surveillance
programs in place for the listing and trading of options based on the
iShares COMEX Gold Trust and the iShares Silver Trust. For example, the
Exchanges may obtain trading information via the ISG from the NYMEX
related to any financial instrument traded there that is based, in
whole or in part, upon an interest in, or performance of, gold or
silver. Additionally, the listing and trading of iShares Trust Options
will be subject to the Exchanges' rules pertaining to position and
exercise limits \24\ and margin.\25\
---------------------------------------------------------------------------

    \24\ See Amex Rules 904 and 905; BOX Rules Chapter III, Sections
7 and 9; CBOE Rules 4.11 and 4.12; ISE Rules 412 and 414; NYSE Arca
Rules 6.8 and 6.9; and Phlx Rules 1001 and 1002.
    \25\ See Amex Rule 462; BOX Rules Chapter XIII, Section 3; CBOE
Rule 12.3; ISE Rule 1202; NYSE Arca Rules 4.15 and 4.16; and Phlx
Rule 722. See also FINRA Rules 2860 and 2860-1.
---------------------------------------------------------------------------

    In addition, the Commission finds good cause, pursuant to Section
19(b)(2) of the Act,\26\ for approving the Proposals prior to the
thirtieth day after the date of publication of notice in the Federal
Register. The Proposals are similar to proposals previously approved by
the Commission to list and trade options on shares of the SPDR Gold
Trust.\27\ Therefore, the Commission does not believe that the
Proposals raise any new regulatory issues. Accordingly, the Commission
finds that there is good cause, consistent with Section 6(b)(5) of the
Act,\28\ to approve the Proposals on an accelerated basis.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(b)(2).
    \27\ See SPDR Gold Trust Options Approval Orders, supra note 4.
    \28\ 15 U.S.C. 78s(b)(5).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\29\ that the Proposals (SR-Amex-2008-68; SR-BSE-2008-51; SR-CBOE-
2008-72; SR-ISE-2008-58; SR-NYSEArca-2008-66; and SR-Phlx-2008-58) are
hereby approved on an accelerated basis.
---------------------------------------------------------------------------

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

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\30\
---------------------------------------------------------------------------

    \30\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-29200 Filed 12-9-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 123 (Thursday, June 25, 2020)]
[Rules and Regulations]
[Pages 38052-38055]
[FR Doc No: 2020-13659]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0568; Project Identifier MCAI-2020-00505-A;
Amendment 39-21148; AD 2020-13-03]
RIN 2120-AA64

Airworthiness Directives; XtremeAir GmbH Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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

SUMMARY: The FAA is superseding Airworthiness Directive (AD) 2018-07-15
for certain XtremeAir GmbH Model XA42 airplanes. This AD results from

mandatory continuing airworthiness information (MCAI) issued by the
aviation authority of another country to identify and correct an unsafe
condition on an aviation product. The MCAI describes the unsafe
condition as cracking of the diagonal struts of the engine mount frame
with potential detachment of the engine from the airplane. The FAA is
issuing this AD to require actions to address the unsafe condition on
these products.

DATES: This AD is effective July 15, 2020.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of July 15,
2020.
    The FAA must receive comments on this AD by August 10, 2020.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this AD, contact XtremeAir
GmbH, Harzstrasse 2, Am Flughafen Cochstedt, D-39444 Hecklingen,
Germany; phone: +49 39267 60999 0; fax: +49 39267 60999 20; email:
<EMAIL_ADDRESS>internet: https://www.xtremeair.com. You may review
copies of the referenced service information at the FAA, Airworthiness
Products Section, Operational Safety Branch, 901 Locust, Kansas City,
Missouri 64106. For information on the availability of this material at
the FAA, call<PHONE_NUMBER>. It is also available on the internet at
https://www.regulations.gov by searching for locating Docket No. FAA-
2020-0568.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0568; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this AD, any comments received, and other information. The street
address for Docket Operations is listed above. Comments will be
available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Jim Rutherford, Aerospace Engineer,
FAA, Policy and Innovation Divsion, 901 Locust, Room 301, Kansas City,
Missouri 64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The FAA issued AD 2018-07-15, Amendment 39-19246 (83 FR 15036;
April 9, 2018) (``AD 2018-07-15'') to address an unsafe condition on
XtremeAir GmbH Model XA42 airplanes equipped with an engine mount part
number XA42-7120-151. AD 2018-07-15 required repetitive inspections of
the engine mount strut junction for cracks and was based on MCAI
originated by an aviation authority of another country. The FAA issued
AD 2018-07-15 to detect and address cracking of the engine mount frame,
which could lead to detachment of the engine in-flight and result in
loss of control.

Actions Since AD 2018-07-15 Was Issued

    Since the FAA issued AD 2018-07-15, during a scheduled maintenance
inspection of a Model XA42 airplane, an occurrence was reported of
separation of both left-hand and right-hand diagonal struts of the
engine mount frame.
    The European Union Aviation Safety Agency (EASA), which is the
Technical Agent for the Member States of the European Community,
superseded its MCAI and issued EASA AD No. 2019-0239R1, dated December
18, 2019 (referred to after this as ``the MCAI''), to correct this
unsafe condition for XtremeAir GmbH Model XA42 airplanes. The MCAI
states:

    After that AD [EASA Emergency AD 2018-0050-E] was issued, during
a scheduled maintenance inspection of an XA42 airplane, an
occurrence was reported of separation of both left-hand and right-
hand diagonal struts of the affected part.
    This condition, if not detected and corrected, could lead to in-
flight detachment of the engine, possibly resulting in loss of
control of the airplane.
    Prompted by this new finding, XtremeAir issued the SB [XtremeAir
Service Bulletin SB-XA42-2019-008, Issue A.00] to provide
limitations and inspection instructions. Consequently, EASA issued
Emergency AD 2019-0239-E, retaining the requirements of EASA
Emergency AD 2018-0050-E, which was superseded, reducing the
inspection interval to each pre-flight check and requiring an
Aircraft Flight Manual (AFM) limitation to prohibit aerobatic
manoeuvers, and installation of a corresponding placard.
    Since that AD was issued, the investigations were completed, and
based on the outcome, XtremeAir revised the SB (now at revision
B.00), providing instructions to accomplish the repetitive
inspections at a different regime.
    For the reason described above, this AD is revised accordingly
to update the inspection interval, and to allow the removal of the
prohibition to accomplish aerobatic manoeuvers.
    This AD is still considered an interim action and further AD
action may follow.

    You may examine the MCAI on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0568.

Relative Service Information Under 1 CFR Part 51

    The FAA reviewed XtremeAir GmbH Mandatory Service Bulletin SB-XA42-
2019-008, Issue B.00, dated December 4, 2019. The service information
contains procedures for inspection of the area of the junction of the
left-hand and right-hand diagonal struts of the engine mount, forward
of the oil cooler, for cracks. This service information is reasonably
available because the interested parties have access to it through
their normal course of business or by the means identified in the
ADDRESSES section.

FAA's Determination and Requirements of the AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with this State of Design Authority,
it has notified the FAA of the unsafe condition described in the MCAI
and service information referenced above. The FAA is issuing this AD
because it evaluated all information provided by the State of Design
Authority and determined the unsafe condition exists and is likely to
exist or develop on other products of the same type design.

FAA's Determination of the Effective Date

    An unsafe condition exists that requires the immediate adoption of
this AD. The FAA has found that the risk to the flying public justifies
waiving notice and comment prior to adoption of this rule because
cracking of the engine mount frame could lead to in-flight detachment
of the engine and result in loss of control of the airplane. AD 2018-
07-15 only required an inspection of the left-hand diagonal strut.
Since AD 2018-07-15 was issued, an occurrence was reported of
separation of both the left-hand and right-hand diagonal struts of the
engine mount frame. The

additional inspection required by this AD is necessary to detect cracks
in the right-hand diagonal strut of the engine mount frame. Therefore,
the FAA finds that notice and opportunity for public comment before
issuing this AD are impracticable. In addition, for the reasons stated
above, the FAA finds that good cause exists for making this amendment
effective in fewer than 30 days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and the FAA did not precede it by notice and opportunity for
public comment. The FAA invites you to send any written relevant data,
views, or arguments about this AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2020-0568;
Project Identifier MCAI-2020-00505-A'' at the beginning of your
comments. The FAA specifically invites comments on the overall
regulatory, economic, environmental, and energy aspects of this AD. The
FAA will consider all comments received by the closing date and may
amend this AD because of those comments.
    The FAA will post all comments we receive, without change, to
https://www.regulations.gov, including any personal information you
provide. The FAA will also post a report summarizing each substantive
verbal contact received about this AD.

Costs of Compliance

    The FAA estimates that this AD will affect 16 products of U.S.
registry. The FAA also estimates that it will take 0.5 work-hour per
product per inspection cycle to inspect the diagonal struts of the
engine mount. The average labor rate is $85 per work-hour. Required
parts would cost about $0 per product.
    Based on these figures, the FAA estimates the cost of the
inspection on U.S. operators to be $680.00 or $42.50 per product per
inspection cycle.
    In addition, the FAA estimates that replacing an engine mount, if
necessary, will take 24 work-hours and require parts costing $5,000,
for a cost of $7,040 per product. The FAA has no way of determining the
number of products that may need this action.

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.
    The FAA is 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 Flexibility Act

    The requirements of the Regulatory Flexibility Act (RFA) do not
apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt
a rule without prior notice and comment. Because FAA has determined
that it has good cause to adopt this rule without notice and comment,
RFA analysis is not required.

Regulatory Findings

    The FAA determined that 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, and
    (2) Will not affect intrastate aviation in Alaska.

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:
0
a. Removing Airworthiness Directive 2018-07-15, Amendment 39-19246 (83
FR 15036, April 9, 2018); and
0
b. Adding the following new AD:

2020-13-03 XtremeAir GmbH Airplanes: Amendment 39-21148; Docket No.
FAA-2020-0568; Project Identifier MCAI-2020-00505-A.

(a) Effective Date

    This airworthiness directive (AD) becomes effective July 15,
2020.

(b) Affected ADs

    This AD replaces AD 2018-07-15, Amendment 39-19246 (83 FR 15036,
April 9, 2018).

(c) Applicability

    This AD applies to XtremeAir GmbH Model XA42 airplanes, all
serial numbers, certificated in any category.

(d) Subject

    Air Transport Association of America (ATA) Code 71: Power Plant.

(e) Reason

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) issued by the aviation authority of another
country to identify and address an unsafe condition on an aviation
product. The MCAI describes the unsafe condition as cracking of the
diagonal struts of the engine mount frame. The FAA is issuing this
AD to prevent the in-flight detachment of the engine, which could
result in loss of control of the airplane.

(f) Actions and Compliance

    For airplanes with an engine mount part number (P/N) XA42-7120-
151 installed, unless already done, do the following actions in
paragraphs (f)(1) and (2) of this AD.
    (1) Before the next acrobatic flight after July 15, 2020 (the
effective date of this AD) or before the engine mount accumulates 50
hours time-in-service (TIS), whichever occurs later, and thereafter
at intervals not to exceed 10 acrobatic flights, visually inspect
the junction of the left-hand and right-hand diagonal struts of the
engine mount, forward of the oil cooler, for cracks in the area
shown in the photographs in XtremeAir GmbH Mandatory Service
Bulletin SB-XA42-2019-008, Issue B.00, dated December 4, 2019. For
purposes of this AD, an acrobatic flight is counted for each flight
during which a load factor of 6g is exceeded.
    (i) If there is a crack, before further flight, replace the
engine mount with an airworthy engine mount with zero hours TIS, an
engine mount that has passed the inspection required by this AD, or
an engine mount that is not P/N XA42-7120-151.
    (ii) After completing the initial inspection, begin or continue
to count the acrobatic flights and record in the maintenance
records.
    (2) As of July 15, 2020 (the effective date of this AD), do not
install on the airplane an engine mount P/N XA42-7120-151 unless it
is an airworthy engine mount with zero hours TIS or is an engine
mount that has passed the inspection required by this AD.

(g) Installation Prohibition

    For airplanes without engine mount P/N XA42-7120-151 installed,
as of July 15, 2020 (the effective date of this AD), do not install
engine mount P/N XA42-7120-151.

(h) Alternative Methods of Compliance (AMOCs)

    The Manager, Small Airplane Standards Branch, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. Send information to ATTN: Jim
Rutherford, Aerospace Engineer, FAA, Policy and Innovation Divsion,
901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816)
329-4165; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>Before
using any approved AMOC on any airplane to which the AMOC applies,
notify your appropriate principal inspector (PI) in the FAA Flight
Standards District Office (FSDO), or lacking a PI, your local FSDO.

(i) Special Flight Permit

    Special flight permits are prohibited.

(j) Related Information

    Refer to MCAI European Union Aviation Safety Agency AD No. 2019-
0239R1, dated December 18, 2019, for related information. You may
examine the MCAI on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2020-0568.

(k) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference 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) XtremeAir GmbH Mandatory Service Bulletin SB-XA42-2019-008,
Issue B.00, dated December 4, 2019.
    (ii) [Reserved]
    (3) For XtremeAir GmbH service information identified in this
AD, contact XtremeAir GmbH, Harzstrasse 2, Am Flughafen Cochstedt,
D-39444 Hecklingen, Germany; phone: +49 39267 60999 0; fax: +49
39267 60999 20; email<EMAIL_ADDRESS>internet: https://www.xtremeair.com.
    (4) You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 901
Locust, Kansas City, Missouri 64106. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>. It is
also available on the internet at https://www.regulations.gov by
searching for locating Docket No. FAA-2020-0568.
    (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, email<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on June 10, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-13659 Filed 6-24-20; 8:45 am]
BILLING CODE 4910-13-P