[Federal Register: March 28, 2008 (Volume 73, Number 61)]
[Proposed Rules]
[Page 16575-16577]
[DOCID:fr28mr08-14]

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

========================================================================

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-0361; Directorate Identifier 2007-NM-279-AD]
RIN 2120-AA64

Airworthiness Directives; Empresa Brasileira de Aeronautica S.A.
(EMBRAER) Model ERJ 170 and ERJ 190 Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for the
products listed above. This proposed AD results from mandatory
continuing airworthiness information (MCAI) originated by an aviation
authority of another country to identify and correct an unsafe
condition on an aviation product. The MCAI describes the unsafe
condition as:

    A few hydraulic system tube clamps located inside the wing fuel
tanks were found damaged. Further analysis has shown that damage to
multiple clamps may cause sparks inside the tanks, which in turn may
lead to ignition of flammable vapors inside the fuel tanks.

The proposed AD would require actions that are intended to address the
unsafe condition described in the MCAI.

DATES: We must receive comments on this proposed AD by April 28, 2008.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-40, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Operations office (telephone<PHONE_NUMBER>) is
in the ADDRESSES section. Comments will be available in the AD docket
shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Kenny Kaulia, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-2848; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2008-0361;
Directorate Identifier 2007-NM-279-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    The Ag[ecirc]ncia Nacional de Avia[ccedil][atilde]o Civil (ANAC),
which is the aviation authority for Brazil, has issued Brazilian
Airworthiness Directives 2007-04-01R1 and 2007-04-02R1 (including
Erratum, effective December 21, 2007), both effective December 21, 2007
(referred to after this as ``the MCAI''), to correct an unsafe
condition for the specified products. The MCAI states:

    A few hydraulic system tube clamps located inside the wing fuel
tanks were found damaged. Further analysis has shown that damage to
multiple clamps may cause sparks inside the tanks, which in turn may
lead to ignition of flammable vapors inside the fuel tanks.

Corrective action includes replacing tube attachment clamps having
certain part numbers with new tube attachment clamps. You may obtain
further information by examining the MCAI in the AD docket.

Relevant Service Information

    Embraer has issued Service Bulletins 170-29-0006 and 190-29-0003,
both dated October 4, 2006. The actions described in this service
information are intended to correct the unsafe condition identified in
the MCAI.

FAA's Determination and Requirements of This Proposed AD

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

Differences Between This AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have proposed different actions in this AD from those
in the MCAI in order to follow FAA policies. Any such differences are
highlighted in a Note within the proposed AD.

Costs of Compliance

    Based on the service information, we estimate that this proposed AD
would affect about 88 products of U.S. registry. We also estimate that
it would take about 18 work-hours per product to comply with the basic
requirements of this proposed AD. The average labor rate is $80 per
work-hour. Required parts would cost about $269 per product. Where the
service information lists required parts costs that are covered under
warranty, we have assumed that there will be no charge for these costs.
As we do not control warranty coverage for affected parties, some
parties may incur costs higher than estimated here. Based on these
figures, we estimate the cost of the proposed AD on U.S. operators to
be about $150,392, or about $1,709 per product.

Authority for This Rulemaking

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

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. 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.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Safety.

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

    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]

    2. The FAA amends Sec.  39.13 by adding the following new AD:

Empresa Brasileira de Aeronautica S.A. (EMBRAER): Docket No. FAA-
2008-0361; Directorate Identifier 2007-NM-279-AD.

Comments Due Date

    (a) We must receive comments by April 28, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Embraer Model ERJ 170-100 LR, -100 STD, -
100 SE, -100 SU, -200 LR, -200 STD, and -200 SU airplanes; as
identified in Embraer Service Bulletin 170-29-0006, dated October 4,
2006; and Model ERJ 190-100 STD, -100 LR, -100 IGW, -200 STD, -200
LR, and -200 IGW airplanes; as identified in Embraer Service
Bulletin 190-29-0003, dated October 4, 2006; certificated in any
category.

Subject

    (d) Air Transport Association (ATA) of America Code 29:
Hydraulic Power.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:
    A few hydraulic system tube clamps located inside the wing fuel
tanks were found damaged. Further analysis has shown that damage to
multiple clamps may cause sparks inside the tanks, which in turn may
lead to ignition of flammable vapors inside the fuel tanks.
    Corrective action includes replacing tube attachment clamps
having certain part numbers with new tube attachment clamps.

Actions and Compliance

    (f) Within 8,000 flight hours after the effective date of this
AD, unless already done, replace the clamps which attach the
hydraulic tubes inside the wing fuel tanks with new clamps, as
specified in paragraph (f)(1) or (f)(2) of this AD, as applicable;
in accordance with the Accomplishment Instructions of Embraer
Service Bulletin 170-29-0006 or 190-29-0003; both dated October 4,
2006; as applicable.
    (1) For Model ERJ 170 airplanes: Replace any clamp having part
number (P/N) PE27019RF4E with a new clamp having P/N PE27019FS4E;
and any clamp having P/N PE27019RF8E with a new clamp having P/N
PE27019FS8E.
    (2) For Model ERJ 190 airplanes: Replace any clamp having P/N
PE27019RF4E with a new clamp having P/N PE27019FS4E; and any clamp
having P/N PE27019RF6E with a new clamp having P/N PE27019FS6E.

FAA AD Differences

    Note 1: This AD differs from the MCAI and/or service information
as follows. No differences.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, 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:
Kenny Kaulia, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.
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.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI Brazilian Airworthiness Directives 2007-04-
01R1 and 2007-04-02R1 (including Erratum, effective December 21,
2007), both effective December 21, 2007; and Embraer Service
Bulletins 170-29-0006 and 190-29-0003; both dated October 4, 2006;
for related information.

    Issued in Renton, Washington, on March 3, 2008.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
 [FR Doc. E8-6304 Filed 3-27-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 88, Number 146 (Tuesday, August 1, 2023)]
[Notices]
[Pages 50150-50151]
[FR Doc No: 2023-16214]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2020-0015; FRL-11251-01-OMS]

Agency Information Collection Activities; Submission to the
Office of Management and Budget for Review and Approval; Comment
Request; NSPS for the Graphic Arts Industry (Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) has submitted an
information collection request (ICR), NSPS for the Graphic Arts
Industry (EPA ICR Number 0657.14, OMB Control Number 2060-0105) to the
Office of Management and Budget (OMB) for review and approval in
accordance with the Paperwork Reduction Act. This is a proposed
extension of the ICR, which is currently approved through July 31,
2023. Public comments were previously requested via the Federal
Register on July 22, 2022, during a 60-day comment period. This notice
allows for an additional 30 days for public comments.

DATES: Comments may be submitted on or before August 31, 2023.

ADDRESSES: Submit your comments, referencing Docket ID Number EPA-HQ-
OAR-2020-0015, to EPA online using www.regulations.gov (our preferred
method), by email to [email protected], or by mail to: EPA Docket Center,
Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania
Ave. NW, Washington, DC 20460. EPA's policy is that all comments
received will be included in the public docket without change,
including any personal information provided, unless the comment
includes profanity, threats, information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute.
    Submit written comments and recommendations to OMB for the proposed
information collection within 30 days of publication of this notice to
www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under Review--Open for Public
Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Muntasir Ali, Sector Policies and
Program Division (D243-05), Office of Air Quality Planning and
Standards, U.S. Environmental Protection Agency, Research Triangle
Park, North Carolina

27711; telephone number:<PHONE_NUMBER>; email address:
[email protected].

SUPPLEMENTARY INFORMATION: This is a proposed extension of the ICR,
which is currently approved through July 31, 2023. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid OMB
control number.
    Public comments were previously requested via the Federal Register
on July 22, 2022, during a 60-day comment period (87 FR 43843). This
notice allows for an additional 30 days for public comments. Supporting
documents, which explain in detail the information that the EPA will be
collecting, are available in the public docket for this ICR. The docket
can be viewed online at www.regulations.gov, or in person at the EPA
Docket Center, WJC West, Room 3334, 1301 Constitution Ave. NW,
Washington, DC. The telephone number for the Docket Center is 202-566-
1744. For additional information about EPA's public docket, visit
http://www.epa.gov/dockets.
    Abstract: The New Source Performance Standards (NSPS) for the
Graphic Arts Industry (40 CFR part 60, subpart QQ) were proposed on
October 28, 1980; promulgated on November 8, 1982; and most recently
amended on April 9, 2004. These regulations apply to each publication
rotogravure printing press (not including proof presses) commencing
either construction, or modification, or reconstruction after the date
of proposal. New facilities include those that commenced either
construction, or modification, or reconstruction after the date of
proposal. This information is being collected to assure compliance with
40 CFR part 60, subpart QQ.
    Form numbers: None.
    Respondents/affected entities: Owners or operators of graphic arts
facilities.
    Respondent's obligation to respond: Mandatory (40 CFR part 60,
subpart QQ).
    Estimated number of respondents: 6 (total).
    Frequency of response: Initially, occasionally, and semiannually.
    Total estimated burden: 470 hours (per year). Burden is defined at
5 CFR 1320.3(b).
    Total estimated cost: $56,200 (per year), which includes $0 in
annualized capital/startup and/or operation & maintenance costs.
    Changes in the estimates: There is a decrease of 1,590 hours in the
total estimated respondent burden compared with the ICR currently
approved by OMB. This decrease in burden is an adjustment based on a
review of sources listed on the Enforcement Compliance History Online
(ECHO) database and consultations with industry indicating that the
estimated number of sources in this renewal should be lowered. The ECHO
sources listed included 6 active respondents subject to subpart QQ.
Additionally, consultations with Gravure Association of Americas
identified two companies with operations using the publication
rotogravure printing process, both of which owned facilities included
in the ECHO list. Based on consultations, EPA's ECHO database, and
comparisons with previous ICRs, the industry is currently declining. As
a result, it is assumed no new respondents will be added over the next
three years. Labor costs have also been adjusted to correct an error in
the previous ICR's calculations resulting from managerial and technical
labor rates being transposed and applied incorrectly to each other's
labor hours.

Courtney Kerwin,
Director, Regulatory Support Division.
[FR Doc. 2023-16214 Filed 7-31-23; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 83, Number 18 (Friday, January 26, 2018)]
[Notices]
[Pages 3735-3736]
[FR Doc No: 2018-01352]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2017-D-6878]

Hypertension: Developing Fixed-Dose Combination Drugs for
Treatment; Draft Guidance for Industry; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

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SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
the availability of a draft guidance for industry entitled
``Hypertension: Developing Fixed-Dose Combination Drugs for
Treatment.'' The purpose of this guidance is to assist sponsors in the
clinical development of

fixed-dose combination drugs for the treatment of hypertension. The
guidance focuses on development of two-drug combinations of previously
approved drugs.

DATES: Submit either electronic or written comments on the draft
guidance by March 27, 2018 to ensure that the Agency considers your
comment on this draft guidance before it begins work on the final
version of the guidance.

ADDRESSES: You may submit comments on any guidance at any time as
follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2017-D-6878 for ``Hypertension: Developing Fixed-Dose Combination
Drugs for Treatment; Draft Guidance for Industry.'' Received comments
will be placed in the docket and, except for those submitted as
``Confidential Submissions,'' publicly viewable at https://www.regulations.gov or at the Dockets Management Staff between 9 a.m.
and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.
    You may submit comments on any guidance at any time (see 21 CFR
10.115(g)(5)).
    Submit written requests for single copies of the draft guidance to
the Division of Drug Information, Center for Drug Evaluation and
Research, Food and Drug Administration, 10001 New Hampshire Ave.
Hillandale Building, 4th Floor, Silver Spring, MD 20993-0002. Send one
self-addressed adhesive label to assist that office in processing your
requests. See the SUPPLEMENTARY INFORMATION section for electronic
access to the draft guidance document.

FOR FURTHER INFORMATION CONTACT: Naomi Lowy, Center for Drug Evaluation
and Research, Food and Drug Administration, 10903 New Hampshire Ave.
Bldg. 22, Rm. 4204, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a draft guidance for industry
entitled ``Hypertension: Developing Fixed-Dose Combination Drugs for
Treatment.'' The purpose of this guidance is to assist sponsors in the
clinical development of fixed-dose combination drugs for the treatment
of hypertension. The guidance focuses on development of two-drug
combinations of previously approved drugs.
    This draft guidance is being issued consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the current thinking of FDA on developing
fixed-dose combination drugs for treatment of hypertension. It does not
establish any rights for any person and is not binding on FDA or the
public. You can use an alternative approach if it satisfies the
requirements of the applicable statutes and regulations. This guidance
is not subject to Executive Order 12866.

II. Electronic Access

    Persons with access to the internet may obtain the draft guidance
at either https://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/default.htm or
https://www.regulations.gov.

    Dated: January 19, 2018.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2018-01352 Filed 1-25-18; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 76, Number 85 (Tuesday, May 3, 2011)]
[Notices]
[Pages 24942-24943]
[FR Doc No: 2011-10716]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64353; File No. SR-FINRA-2011-020]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to
FINRA's Trading Activity Fee Rate for Transactions in Covered Equity
Securities

April 27, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 26, 2011, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to amend Section 1 of Schedule A to the FINRA
By-Laws to adjust the rate of FINRA's Trading Activity Fee (``TAF'')
for transactions in covered equity securities.
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA, 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, FINRA 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. FINRA 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
    FINRA's primary member regulatory pricing structure consists of the
following fees: The Personnel Assessment (PA); the Gross Income
Assessment (GIA); and the Trading Activity Fee (TAF). These fees are
used to fund FINRA's regulatory activities, including examinations;
financial monitoring; and FINRA's policymaking, rulemaking, and
enforcement activities.\3\ Because the proceeds from these fees are
used to fund FINRA's regulatory mandate, Section 1 of Schedule A to
FINRA's By-Laws notes that ``FINRA shall periodically review these
revenues in conjunction with costs to determine the applicable rate.''
\4\
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    \3\ See FINRA By-Laws, Schedule A, Sec.  1(a).
    \4\ Id.
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    FINRA initially adopted the TAF in 2002 as a replacement for an
earlier regulatory fee based on trades reported to Nasdaq's Automated
Confirmation Transaction system then in place.\5\ Currently, the TAF is
generally assessed on the sale of all exchange registered securities
wherever executed (except debt securities that are not TRACE-Eligible
Securities), over-the-counter equity securities, security futures,
TRACE-Eligible Securities (provided that the transaction is a
Reportable TRACE Transaction), and all municipal securities subject to
Municipal Securities Rulemaking Board (``MSRB'') reporting
requirements. The rules governing the TAF also include a list of
transactions exempt from the TAF.\6\
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    \5\ See Securities Exchange Act Release No. 46416 (August 23,
2002), 67 FR 55901 (August 30, 2002).
    \6\ See FINRA By-Laws, Schedule A, Sec.  1(b)(2).
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    The current TAF rates are $0.000075 per share for each sale of a
covered equity security, with a maximum charge of $3.75 per trade;
$0.002 per contract for each sale of an option; $0.04 per contract for
each round turn transaction of a security future; and $0.00075 per bond
for each sale of a covered TRACE-Eligible Security and/or municipal
security, with a maximum charge of $0.75 per trade. In addition, if the
execution price for a covered security is less than the TAF rate on a
per share, per contract, or round turn transaction basis, then no TAF
is assessed.
    The current TAF rate for covered equity securities of $0.000075 per
share has been in place for over six years.\7\ Over that time period,
FINRA has proposed the restructuring of both the GIA and the PA. For
example, effective January 1, 2010, the GIA and PA were restructured to
stabilize cash flows by shifting a greater portion of the regulatory
fees from the GIA, which is based on industry revenue, to the PA, which
is based on the more constant figure of registered persons, while
seeking to remain revenue neutral to FINRA.\8\
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    \7\ See Securities Exchange Act Release No. 50485 (October 1,
2004), 69 FR 60445 (October 8, 2004); NASD Notice to Members 04-84
(November 2004).
    \8\ See Securities Exchange Act Release No. 61042 (November 20,
2009), 74 FR 62616 (November 30, 2009); see also Regulatory Notice
09-68 (November 2009).
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    As FINRA noted when it restructured the GIA and the PA, because the
GIA is assessed based on a member's annual gross revenue for the
preceding calendar year, FINRA's revenues derived from the GIA are
subject to the year-to-year volatility of members' revenues. A similar
unpredictability of revenue flows exists with the TAF. The TAF
generally is assessed on sales of securities by members and is
collected from clearing firms on a monthly basis. Although the TAF is
generally charged on transactions in equity securities, TRACE-
reportable securities, options, and futures, over 95% of TAF revenue is
generated by transactions in covered equity securities. Thus, FINRA's
revenue from the TAF is substantially affected by changes in trading
volume in the equities markets. Because of the substantial decrease in
average daily share volumes (ADSV) since 2009, FINRA has seen a
commensurate substantial decline in revenue from the TAF.
    To stabilize revenue flows necessary to support FINRA's regulatory
mission, FINRA is proposing an increase to the

TAF rate for covered equity securities from $0.000075 per share to
$0.000090 per share, with a corresponding increase to the per-
transaction cap for covered equity securities from $3.75 to $4.50.\9\
As noted above, FINRA has not adjusted the TAF rate for covered equity
securities in over six years,\10\ and FINRA believes that increasing
the TAF rate on these securities by $0.000015 per share is the minimum
increase necessary to bring the revenue from the TAF to its needed
levels to adequately fund FINRA's member regulatory obligations. As
with the prior restructuring of the GIA and PA described above, the
proposed increase to the TAF rate on transactions in covered equity
securities seeks to remain revenue neutral to FINRA (i.e., as adjusted,
FINRA would aim to receive a substantially similar amount in revenue
from the TAF as the TAF has generated in prior years).
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    \9\ Because, as noted above, transactions in covered equity
securities account for over 95% of TAF revenues, FINRA is not
proposing adjustments to the TAF rates for other types of
securities.
    \10\ In 2004, FINRA decreased the TAF rate for covered equity
securities. Before the adjustment, the TAF rate for covered equity
securities was $0.0001 per share with a maximum charge of $10 per
trade. In 2004, FINRA also expanded the scope of the TAF to cover
transactions in corporate debt securities reportable to TRACE and
transactions in municipal securities subject to the MSRB reporting
requirements. See NASD Notice to Members 04-84 (November 2004).
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    The effective date of the proposed rule change will be July 1,
2011. FINRA will announce the effective date of the proposed rule
change in a Regulatory Notice.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\11\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees, and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls. As noted above, FINRA has not adjusted the TAF rate for
transactions in covered equity securities for over six years. Because
of the recent decrease in trading volumes in the equity markets, FINRA
believes that the proposed rate change to the TAF is now necessary to
ensure that FINRA can continue to maintain a robust regulatory program
and meet its regulatory obligations effectively while attempting to
remain revenue neutral.
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    \11\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
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

    Written comments were neither solicited nor received.

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

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2011-020 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-FINRA-2011-020. 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 website
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of FINRA.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File No. SR-FINRA-2011-020
and should be submitted on or before May 24, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-10716 Filed 5-2-11; 8:45 am]
BILLING CODE 8011-01-P