[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Rules and Regulations]
[Pages 61098-61100]
[FR Doc No: 2015-24465]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-1419; Directorate Identifier 2014-NM-183-AD;
Amendment 39-18279; AD 2015-20-01]
RIN 2120-AA64

Airworthiness Directives; Lockheed Martin Corporation/Lockheed
Martin Aeronautics Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for all
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company Model
188 series airplanes. This AD was prompted by an evaluation by the
design approval holder (DAH) indicating the left and right lower
surface panels of the wings are subject to widespread fatigue damage
(WFD). This AD requires repetitive inspections for cracking at these
panels, and repair if necessary. The AD also requires a one-time bolt-
hole eddy current inspection of all open holes for cracking, repair if
necessary, and modification. We are issuing this AD to prevent fatigue
cracking of the left and right lower surface panels of the wings, which
could result in reduced structural integrity of the airplane.

DATES: This AD is effective November 13, 2015.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of November 13,
2015.

ADDRESSES: For service information identified in this AD, contact
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company,
Airworthiness Office, Dept. 6A0M, Zone 0252, Column P-58, 86 S. Cobb
Drive, Marietta, GA 30063; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>;
email<EMAIL_ADDRESS>Internet http://www.lockheedmartin.com/ams/tools/TechPubs.html. You may view this referenced service information
at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW.,
Renton, WA. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
1419.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
1419; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, the regulatory evaluation, any comments received, and
other information. The address for the Docket Office (phone: 800-647-
5527) is Docket Management Facility, U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Carl Gray, Aerospace Engineer,
Airframe Branch, ACE-117A, FAA, Atlanta Aircraft Certification Office
(ACO), 1701 Columbia Avenue, College Park, GA 30337; phone: 404-474-
5554; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to all Lockheed Martin
Corporation/Lockheed Martin Aeronautics Company Model 188 series
airplanes. The NPRM published in the Federal Register on June 5, 2015
(80 FR 32069). The NPRM was prompted by an evaluation by the DAH
indicating the left and right lower surface panels of the wings are
subject to WFD. The NPRM proposed to require repetitive inspections for
cracking at these panels, and repair if necessary. The NPRM also
proposed to require a one-time bolt-hole eddy current inspection of all
open holes for cracking, repair if necessary, and modification. We are
issuing this AD to prevent fatigue cracking of the left and right lower
surface panels of the wings, which could result in reduced structural
integrity of the airplane.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the NPRM (80 FR 32069, June 5,
2015) or on the determination of the cost to the public.

Conclusion

    We reviewed the available data and determined that air safety and
the public interest require adopting this AD as proposed, except for
minor editorial changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM (80 FR 32069, June 5, 2015) for correcting the unsafe condition;
and
     Do not add any additional burden upon the public than was
already proposed in the NPRM 80 FR 32069, June 5, 2015).

Related Service Information Under 1 CFR Part 51

    We reviewed Lockheed Martin Electra Service Bulletin 88/SB-707C,
Revision C, dated April 30, 2014. The service information describes
procedures for repetitive inspections for cracking of the left and
right lower surface panels of the wings on the inboard and outboard
sides of the buttock line (BL) 65 splice joint, and repair. This
service information also describes procedures for a one-time bolt-hole
eddy current inspection of all open holes for cracking, repair, and
modification of the BL 65 wing root joint. 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 of this AD.

Costs of Compliance

    We estimate that this AD affects 4 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
            Action                   Labor cost         Parts cost      Cost per product          operators
----------------------------------------------------------------------------------------------------------------
X-ray or ultrasonic            Up to 40 work-hours x              $0  Up to $3,400........  Up to $13,600.
 inspections.                   $85 per hour = up to
                                $3,400.
Bolt hole inspections........  60 work-hours x $85                 0  $5,100..............  $20,400.
                                per hour = $5,100.
Modification.................  400 work-hours x $85            5,000  $39,000.............  $156,000.
                                per hour = $ 34,000.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary repairs that
would be required based on the results of the inspections. We have no
way of determining the number of aircraft that might need these
repairs.

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
               Action                                Labor cost                    Parts cost        product
----------------------------------------------------------------------------------------------------------------
Repair.............................  500 work-hours x $85 per hour = $42,500..               0          $42,500
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2015-20-01 Lockheed Martin Corporation/Lockheed Martin Aeronautics
Company: Amendment 39-18279; Docket No. FAA-2015-1419; Directorate
Identifier 2014-NM-183-AD.

(a) Effective Date

    This AD is effective November 13, 2015.

(b) Affected ADs

    This AD affects AD 81-03-53R1, Amendment 39-4301 (Docket No. 81-
NW-97-AD) (47 FR 3347, January 25, 1982).

(c) Applicability

    This AD applies to Lockheed Martin Corporation/Lockheed Martin
Aeronautics Company Model 188A and 188C airplanes, certificated in
any category, serial numbers 1001 and subsequent.

(d) Subject

    Air Transport Association (ATA) of America Code 57, Wings.

(e) Unsafe Condition

    This AD was prompted by an evaluation by the design approval
holder indicating the left and right lower surface panels of the
wings are subject to widespread fatigue damage. We are issuing this
AD to prevent fatigue cracking of the left and right lower surface
panels of the wings on the inboard and outboard sides of the buttock
line (BL) 65 splice joint, which could result in reduced structural
integrity of the airplane.

(f) Compliance

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

(g) Inspections and Repair

    At the later of the times specified in paragraphs (g)(1) and
(g)(2) of this AD: Inspect for cracking of the inboard and outboard
sides of the lower splice joint at BL 65, using X-ray, ultrasonic,
and bolt-hole eddy current inspection techniques, as applicable, and
repair any cracking found, in accordance with the Accomplishment
Instructions of Lockheed Martin Electra Service Bulletin 88/SB-707C,
Revision C, dated April 30, 2014. All applicable repairs must be
done before further flight. Repeat the inspections at intervals not
to exceed 2,000 flight hours, until the modification required by
paragraph (h) of this AD has been done. Accomplishing the
inspections required by this paragraph terminates the inspections
required by paragraphs A. and B. of AD 81-03-53R1, Amendment 39-4301
(Docket No. 81-NW-97-AD) (47 FR 3347, January 25, 1982).
    (1) Before the accumulation of 19,000 total flight hours.
    (2) Within 600 flight hours or 365 days after the effective date
of this AD, whichever occurs first.

(h) Modification

    At the later of the times specified in paragraphs (h)(1) and
(h)(2) of this AD: Do a bolt-hole eddy current inspection of all
open holes for cracking, repair any cracking found before further
flight, and modify the BL 65 wing root lower joint, in accordance
with the Accomplishment Instructions of Lockheed

Martin Electra Service Bulletin 88/SB-707C, Revision C, dated April
30, 2014. Accomplishing this modification terminates the inspections
required by paragraph (g) of this AD.
    (1) Before the accumulation of 29,000 total flight hours.
    (2) Within 600 flight hours or 365 days after the effective date
of this AD, whichever occurs first.

(i) No Reporting Required

    Although Lockheed Martin Electra Service Bulletin 88/SB-707C,
Revision C, dated April 30, 2014, specifies to submit a report of
crack findings, this AD does not include that requirement.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Atlanta Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. In accordance with 14
CFR 39.19, send your request to your principal inspector or local
Flight Standards District Office, as appropriate. If sending
information directly to the manager of the ACO, send it to the
attention of the person identified in paragraph (k) of this AD.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    For more information about this AD, contact Carl Gray, Aerospace
Engineer, Airframe Branch, ACE-117A, FAA, Atlanta ACO, 1701 Columbia
Avenue, College Park, GA 30337; phone:<PHONE_NUMBER>; fax: 404-474-
5605; email<EMAIL_ADDRESS>
(l) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Lockheed Martin Electra Service Bulletin 88/SB-707C,
Revision C, dated April 30, 2014.
    (ii) Reserved.
    (3) For service information identified in this AD, contact
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company,
Airworthiness Office, Dept. 6A0M, Zone 0252, Column P-58, 86 S. Cobb
Drive, Marietta, GA 30063; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>;
email<EMAIL_ADDRESS>Internet http://www.lockheedmartin.com/ams/tools/TechPubs.html.
    (4) You may view this service information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call
425-227-1221.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on September 17, 2015.
John P. Piccola, Jr.,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-24465 Filed 10-8-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 77, Number 147 (Tuesday, July 31, 2012)]
[Notices]
[Pages 45357-45359]
[FR Doc No: 2012-18603]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2012-D-0524]

Draft Guidance for Industry and Food and Drug Administration
Staff; Acceptance and Filing Review for Premarket Approval
Applications; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of the draft guidance entitled ``Acceptance and Filing
Review for Premarket Approval Applications (PMAs).'' The purpose of the
acceptance and filing reviews is to make a threshold determination
about whether an application is administratively complete. This
guidance document is intended to clarify the criteria for accepting and
filing a PMA, thereby assuring the consistency of our acceptance and
filing decisions. This guidance is applicable to original PMAs and PMA
panel-track supplements reviewed in the Center for Devices and
Radiological Health (CDRH) and the Center for Biologics Evaluation and
Research. This draft guidance is not final nor is it in effect at this
time.

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the agency considers your comment on this
draft guidance before it begins work on the final version of the
guidance, submit either electronic or written comments on the draft
guidance by September 14, 2012.

ADDRESSES: Submit written requests for single copies of the draft
guidance document entitled ``Acceptance and Filing Review for Premarket
Approval Applications (PMAs)'' to the Division of Small Manufacturers,
International and Consumer Assistance, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 4613, Silver Spring, MD 20993-0002; or Office of
Communication, Outreach and Development (HFM-40), Center for Biologics
Evaluation and Research, Food and Drug Administration, 1401 Rockville
Pike, suite 200N, Rockville, MD 20852-1448. Send one self-addressed
adhesive label to assist that office in processing your request, or fax
your request to<PHONE_NUMBER>. See the SUPPLEMENTARY INFORMATION section
for information on electronic access to the guidance.
    Submit electronic comments on the draft guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
rm. 1061, Rockville, MD 20852. Identify comments with the docket number
found in brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: Nicole Wolanski, Center for Devices
and Radiological Health, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 66, Rm. 1650, Silver Spring, MD 20993-0002, 301-
796-6570; or Stephen Ripley, Center for Biologics Evaluation and
Research (HFM-17), Food and Drug Administration, 1401 Rockville Pike,
suite 200N, Rockville, MD 20852-1448,<PHONE_NUMBER>.

I. Background

    The PMA regulation (21 CFR 814.42(e)) identifies the criteria that,
if not met, may serve as a basis for refusing to file a PMA. These
criteria are discussed in the guidance document ``Guidance for Industry
and FDA Staff Premarket Approval Application Filing Review,'' dated May
1, 2003. This document has been used by FDA staff and the device
industry to help elucidate the broad preclinical and clinical issues
that need to be addressed in a PMA and the key decisions to be made
during the filing process.
    To further focus the Agency's review resources on complete
applications, which will provide a more efficient approach to ensuring
that devices that have a reasonable assurance of safety and
effectiveness reach patients as quickly as possible, we have modified
the PMA filing guidance. In this guidance entitled, ``Acceptance and
Filing Review for Premarket Approval Applications (PMAs),'' we have
separated the requirements for PMA filing into: (1) Acceptance criteria
and (2) filing criteria. Acceptance review involves an early assessment
of the completeness of the application, and informing the applicant in
a written response within the first 15 calendar days of receipt of the
application whether any administrative elements are missing, and if so,
identifying the missing administrative element(s).
    In order to enhance the consistency of our acceptance and filing
decisions and to help applicants understand the types of information
FDA needs to conduct a substantive review of a PMA, this guidance and
associated checklist clarify the necessary elements and contents of a
complete PMA application. The process we outline is applicable to all
devices reviewed in a PMA application. Acceptance and filing decisions
will be made for all original PMA applications and panel-track PMA
supplements.
    This guidance is not significantly different from the 2003 PMA
guidance document. The ``preliminary questions'' remain the same and
the ``filing review questions'' have been separated into ``acceptance
decision questions'' (i.e., is the file administratively complete) and
``filing decision questions'' (i.e., are data consistent with the
protocol, final device design, and proposed indications). In addition,
it should be noted that this document is focused on the regulatory and
scientific criteria for making an ``Accept'' or ``Refuse to Accept''
decision as well as ``File'' or ``Not File'' decision for a PMA. It
specifically does not alter the following administrative aspects of the
PMA filing process: The timeframe for the filing review phase (i.e., 45
days); the processes for document tracking, distribution, and handling;
and the procedures for assembling the review team and setting up the
filing meeting.

II. Significance of Guidance

    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 Agency's current thinking on acceptance
and filing reviews for PMAs. It does not create or confer any rights
for or on any person and does not operate to bind FDA or the public. An
alternative approach may be used if such approach satisfies the
requirements of the applicable statute and regulations.

III. Electronic Access

    Persons interested in obtaining a copy of the draft guidance may do
so by using the Internet. A search capability for all CDRH guidance
documents is available at http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/GuidanceDocuments/default.htm. Guidance
documents are also available at http://www.regulations.gov. To receive
``Acceptance and Filing Review for Premarket Approval Applications
(PMAs),'' you may either send an email request to<EMAIL_ADDRESS>to
receive an electronic copy of the document or send a fax request to
301-847-8149 to receive a hard copy. Please use the document number
1792 to identify the guidance you are requesting.

IV. Paperwork Reduction Act of 1995

    This draft guidance refers to currently approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
collections of information in 21 CFR part 814, subpart B, have been
approved under OMB control number 0910-0231.

V. Comments

    Interested persons may submit to the Division of Dockets Management
(see ADDRESSES), either electronic or written comments regarding this
document. It is only necessary to send one set of comments. Identify
comments with the

docket number found in brackets in the heading of this document.
Received comments may be seen in the Division of Dockets Management
between 9 a.m. and 4 p.m., Monday through Friday.

    Dated: July 24, 2012.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2012-18603 Filed 7-30-12; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register: May 10, 2010 (Volume 75, Number 89)]
[Rules and Regulations]
[Page 25766-25770]
[DOCID:fr10my10-5]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2010-0239]
RIN 1625-AA00

Safety Zones; Marine Events Within the Captain of the Port Sector
Northern New England Area of Responsibility

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing eight safety zones for marine
events within the Captain of the Port Sector Northern New England area
of responsibility for regattas, power boat races, parades, and
fireworks displays. This action is necessary to provide for the safety
of life on navigable waters during the events. Entry into, transit
through, mooring or anchoring within these zones is prohibited unless
authorized by the Captain of the Port Sector Northern New England.

DATES: This rule is effective in the CFR on May 10, 2010 through 11:59
p.m. on September 29, 2010. This rule is effective with actual notice
for purposes of enforcement beginning at 10 a.m. on May 1, 2010.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2010-0239 and are available online
by going to http://www.regulations.gov, inserting USCG-2010-0239 in the
``Keyword'' box, and then clicking ``Search.'' They are also available
for inspection or copying at the Docket Management Facility (M-30),
U.S. Department of Transportation, 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 FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or e-mail Lieutenant Junior Grade Laura van der Pol, Waterways
Management Division at Coast Guard Sector Northern New England,
telephone<PHONE_NUMBER>, e-mail<EMAIL_ADDRESS>If you have
questions on viewing the docket, call Renee V. Wright, Program Manager,
Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Regulatory Information

    The Coast Guard is issuing this temporary final rule without prior
notice and opportunity to comment pursuant to authority under section
4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because publishing a NPRM is impractical as
the Coast Guard did not receive notification of the specific location
or planned dates for the events in sufficient time to issue a NPRM
without delaying this rulemaking. Further, it is contrary to public
interest to delay the effective date of this rule. Delaying the
effective date by first publishing a NPRM and holding a comment period
would be contrary to the rule's objectives of ensuring safety of life
on the navigable waters during these scheduled events as immediate
action is needed to protect persons and vessels from the hazards
associated with vessels participating in regattas, races and parades as
well as the hazardous nature of fireworks including unexpected
detonation and burning debris.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. In addition to the reasons stated
above, this rule is intended to ensure the safety of the event
participants, spectators and other waterway users thus any delay in the
rule's effective date would be impractical.

Basis and Purpose

    Marine events are frequently held on the navigable waters within
the area of responsibility for Captain of the Port Sector Northern New
England. These events include sailing regattas, parades, power boat
races, fireworks displays, and other vessel races. Based on the nature
of the events, large number of participants and spectators, and the
event locations, the Coast Guard has determined that the events listed
in this rule could pose a risk to participants or waterway users if
normal vessel traffic were to interfere with the event. Possible
hazards include risks of participant injury or death resulting from
near or actual contact with non-participant vessels traversing through
the safety zones. In order to protect the safety of all waterway users
including event participants and spectators, this temporary rule
establishes safety zones for the time and location of each event.
    This rule prevents vessels from entering, transiting, mooring or
anchoring within areas specifically designated as safety zones during
the periods of enforcement unless authorized by the Captain of the Port
or designated on-scene patrol personnel. On-scene patrol personnel may
be comprised of local, state or federal officials authorized to act in
support of the Coast Guard.
    The Coast Guard has ordered safety zones or special local
regulations for all of these eight areas for past events and has not
received public comments or concerns regarding the impact to waterway
traffic from these annual events.

Discussion of Rule

    This temporary rule creates safety zones for all navigable waters
within the described area of each event as follows: A safety zone 50
yards in radius from all participants in the Downeast Adventure Race on
the St. Croix River in Calais, Maine to be enforced from 10 a.m. to 2
p.m. on May 1, 2010; a safety zone of 350 yard radius from the Hampton
Beach Fireworks launch site in the vicinity of Hampton Beach, New
Hampshire to be enforced from 8 p.m. to 10:30 p.m. every Saturday,
Sunday, and Wednesday from May 5, 2010, through September 29, 2010; a
safety zone 50 yards in radius around all participants in the Tall
Ships visit to Portsmouth Regatta and Parade in the vicinity of
Portsmouth Harbor, New Hampshire, to be enforced from 10 a.m. through 7
p.m. on May 28, 2010 through May 31, 2010; a safety zone 50 yards in
radius around all participants in the Bar Harbor Blessing of the Ships
in the vicinity of Bar Harbor, Maine to be enforced from 12 p.m.
through 1:30 p.m. on June 6, 2010; a safety zone 50 yards in radius
around all participants in the Boothbay Harbor Lobster Boat Races in
Boothbay Harbor, Maine to be enforced from 10 a.m. until 3 p.m. on June
19, 2010; a safety zone 50 yards in radius

around all participants in the Rockland Harbor Lobster Boat Races in
the vicinity of Rockland Harbor, Maine, to be enforced from 10 a.m.
until 3 p.m. on June 20, 2010; a safety zone 50 yards in radius around
all participants in the Windjammer Days Parade of Ships in the vicinity
of Boothbay Harbor, Maine, to be enforced from 12 p.m. until 5 p.m. on
June 22 and 23, 2010; a safety zone 350 yards in radius from the
fireworks launch site in the vicinity of Boothbay Harbor, Maine, for
the Windjammer Days Fireworks to be enforced from 8 p.m. until 10:30
p.m. on June 23, 2010. As large numbers of spectator vessels are
expected to congregate around the location of these events, the safety
zones are needed to protect both spectators and participants from the
safety hazards created by the event. During the enforcement period of
the safety zones, persons and vessels will be prohibited from entering,
transiting, remaining within, anchoring or mooring within the zone
unless specifically authorized by the Captain of the Port or his
designated representatives. The Coast Guard may be assisted by other
federal, state and local agencies in the enforcement of these safety
zones.
    The Coast Guard determined that these safety zones will not have a
significant impact on vessel traffic due to the temporary nature and
limited size of the safety zones and the fact that vessels are allowed
to transit the navigable waters outside of the safety zones.
    Advanced public notifications will also be made to the local
maritime community by the Local Notice to Mariners as well as Broadcast
Notice to Mariners.

Regulatory Analyses

    We developed this rule after considering numerous statutes and
executive orders related to rulemaking. Below we summarize our analyses
based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, and does not
require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order.
    The Coast Guard determined that this rule is not a significant
regulatory action for the following reasons: The safety zones will be
of limited duration, they cover only a small portion of the navigable
waterways, and the events are designed to avoid, to the extent
possible, deep draft, fishing, and recreational boating traffic routes.
In addition, vessels requiring entry into the area of the safety zones
may be authorized to do so by the Captain of the Port.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will
not have a significant economic impact on a substantial number of small
entities. This rule will affect the following entities, some of which
may be small entities: The owners or operators of vessels intending to
transit or anchor in the designated safety zones during the enforcement
periods stated for each event in the List of Subjects.
    The safety zones will not have a significant economic impact on a
substantial number of small entities for the following reasons: The
safety zones will be of limited size and of short duration, and vessels
that can safely do so may navigate in all other portions of the
waterways except for the areas designated as safety zones.
Additionally, before the effective period, the Coast Guard will issue
notice of the time and location of each safety zone through a Local
Notice to Mariners and Broadcast Notice to Mariners.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small
entities in understanding the rule so that they can better evaluate its
effects on them and participate in the rulemaking process.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

Taking of Private Property

    This rule will not cause a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,

because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

Environment

    We have analyzed this temporary rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have
concluded this action is one of a category of actions that do not
individually or cumulatively have a significant effect on the human
environment. This rule is categorically excluded, under figure 2-1,
paragraph (34)(g), of the Instruction as this rule involves
establishing safety zones. An environmental analysis checklist and a
categorical exclusion determination will be available in the docket
where indicated under ADDRESSES.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, and Waterways.

0
For the reasons discussed in the preamble, the Coast Guard amends 33
CFR Part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for Part 165 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapters 701, 3306,
3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5;
Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security
Delegation No. 0170.1.

0
2. Add Sec.  165.T01-0239 to read as follows:

Sec.  165.T01-0239  Safety zones; Marine events within the Captain of
the Port Sector Northern New England Area of Responsibility.

    (a) Safety zones. (1) The following areas are designated safety
zones:
    (2) Locations. For all fireworks events listed in the events table
in this paragraph (a)(2), all navigable waters within a 350 yard radius
of the fireworks launch site. For all power boat races, regattas, boat
parades, rowing races, and paddling boat races, all vessels not
associated with the event must maintain a 50 yard radius around all
vessels participating in the event.

                              Events Table
------------------------------------------------------------------------
             5.0                                  MAY
------------------------------------------------------------------------
5.1 Downeast Adventure Race..  Event Type: Rowing and paddling boat
                                race.
                               Sponsor: Washington County Community
                                College.
                               Date: May 1, 2010.
                               Enforcement Time: 10 am to 2 pm.
                               Location: The regulated area includes all
                                U.S. waters in the Saint Croix River
                                from the launch site in Calais, Maine at
                                approximate position
                                45[deg]11[min]24[sec] N,
                                067[deg]16[min]48[sec] W (NAD 83),
                                following the river bank to the end site
                                at position 44[deg]10[min]07[sec] N,
                                067[deg]14[min]29[sec] W (NAD 83).
------------------------------------------------------------------------
5.2 Hampton Beach Fireworks..  Event Type: Fireworks display.
                               Sponsor: Hampton Beach Village District.
                               Dates: Every Wednesday, Saturday and
                                Sunday from May 5, 2010 through
                                September 29, 2010, as specified in the
                                USCG District 1 Local Notice to Mariners
                                at: http://www.navcen.uscg.gov/LNM/
                                default.htm.
                               Enforcement Time: 8 pm to 10:30 pm.
                               Location: In the vicinity of the Hampton
                                Beach, New Hampshire waterfront in
                                approximate position
                                42[deg]54[min]33[sec] N,
                                070[deg]48[min]38[sec] W (NAD 83).
------------------------------------------------------------------------
5.3 Tall Ships Visiting        Event Type: Regatta and boat parade.
 Portsmouth.                   Sponsor: Portsmouth Maritime Commission,
                                Inc.
                               Date: May 28 through May 31, 2010
                                Enforcement Time: 10 am to 7 pm.
                               Location: The regulated area includes all
                                waters of Portsmouth Harbor, New
                                Hampshire within the following points
                                (NAD 83):
                               43[deg]03[min]11[sec] N
                                070[deg]42[min]26[sec] W
                               43[deg]03[min]18[sec] N
                                070[deg]41[min]51[sec] W
                               43[deg]04[min]42[sec] N
                                070[deg]42[min]11[sec] W
                               43[deg]04[min]28[sec] N
                                070[deg]44[min]12[sec] W
                               43[deg]05[min]36[sec] N
                                070[deg]45[min]56[sec] W
                               43[deg]05[min]29[sec] N
                                070[deg]46[min]09[sec] W
                               43[deg]04[min]19[sec] N
                                070[deg]44[min]16[sec] W

                               43[deg]04[min]22[sec] N
                                070[deg]42[min]33[sec] W
------------------------------------------------------------------------
6.0                                               JUNE
------------------------------------------------------------------------
6.1 Bar Harbor Blessing of     Event Type: Regatta and boat parade.
 the Fleet.                    Sponsor: Town of Bar Harbor, Maine.
                               Date: June 6, 2010.
                               Enforcement Time: 12 pm to 1:30 pm.
                               Location: The regulated area includes all
                                waters of Bar Harbor, Maine within the
                                following points (NAD 83):
                               44[deg]23[min]32[sec] N
                                068[deg]12[min]19[sec] W
                               44[deg]23[min]30[sec] N
                                068[deg]12[min]00[sec] W
                               44[deg]23[min]37[sec] N
                                068[deg]12[min]00[sec] W
                               44[deg]23[min]35[sec] N
                                068[deg]12[min]19[sec] W
------------------------------------------------------------------------
6.2 Boothbay Harbor Lobster    Event Type: Power boat race.
 Boat Races.                   Sponsor: Boothbay Harbor Lobster Boat
                                Race Committee.
                               Date: June 19, 2010.
                               Enforcement Time: 10 am to 3 pm.
                               Location: The regulated area includes all
                                waters of Boothbay Harbor, Maine within
                                the following points (NAD 83):
                               43[deg]50[min]04[sec] N
                                069[deg]38[min]37[sec] W
                               43[deg]50[min]54[sec] N
                                069[deg]38[min]06[sec] W
                               43[deg]50[min]49[sec] N
                                069[deg]37[min]50[sec] W
                               43[deg]50[min]00[sec] N
                                069[deg]38[min]20[sec] W
------------------------------------------------------------------------
6.3 Rockland Harbor Lobster    Event Type: Power boat race.
 Boat Races.                   Sponsor: Rockland Harbor Lobster Boat
                                Race Committee.
                               Date: June 20, 2010.
                               Enforcement Time: 10 am to 3 pm.
                               Location: The regulated area includes all
                                waters of Rockland Harbor, Maine within
                                the following points (NAD 83):
                               44[deg]05[min]59[sec] N
                                069[deg]04[min]53[sec] W
                               44[deg]06[min]43[sec] N
                                069[deg]05[min]25[sec] W
                               44[deg]06[min]50[sec] N
                                069[deg]05[min]05[sec] W
                               44[deg]06[min]05[sec] N
                                069[deg]04[min]34[sec] W
------------------------------------------------------------------------
6.4 Windjammer Days Parade of  Event Type: Regatta and boat parade.
 Ships.                        Sponsor: Boothbay Region Chamber of
                                Commerce.
                               Date: June 22 & 23, 2010.
                               Enforcement Time: 12 pm to 5 pm.
                               Location: The regulated area includes all
                                waters of Boothbay Harbor, Maine within
                                the following points (NAD 83):
                               43[deg]51[min]02[sec] N
                                069[deg]37[min]33[sec] W
                               43[deg]50[min]47[sec] N
                                069[deg]37[min]31[sec] W
                               43[deg]50[min]23[sec] N
                                069[deg]37[min]57[sec] W
                               43[deg]50[min]01[sec] N
                                069[deg]37[min]45[sec] W
                               43[deg]50[min]01[sec] N
                                069[deg]38[min]31[sec] W
                               43[deg]50[min]25[sec] N
                                069[deg]38[min]25[sec] W
                               43[deg]50[min]49[sec] N
                                069[deg]37[min]45[sec] W
------------------------------------------------------------------------
6.5 Windjammer Days Fireworks  Event Type: Fireworks display.
                               Sponsor: Boothbay Harbor Region Chamber
                                of Commerce.
                               Date: June 23, 2010.
                               Enforcement Time: 8 pm to 10:30 pm.
                               Location: In the vicinity of McFarland
                                Island, Boothbay Harbor, Maine in
                                approximate position
                                43[deg]50[min]38[sec] N,
                                069[deg]37[min]57[sec] W (NAD 83).
------------------------------------------------------------------------

     (b) Notification. Coast Guard Sector Northern New England will
cause notice of the enforcement of these temporary safety zones to be
made by all appropriate means to affect the widest publicity among the
effected segments of the public, including publication in the Local
Notice to Mariners and Broadcast Notice to Mariners.
    (c) Effective period. This rule is effective from 10 a.m. on May 1,
2010, through 11:59 p.m. on September 29, 2010.
    (d) Enforcement period. This section will be enforced for the
duration of each event indicated in the table in paragraph (a)(2) of
this section. If the event is cancelled due to inclement weather, this
section is in effect for the day following the scheduled time listed in
the table above. Notification of events held on a rain date will be
made by Broadcast Notice to Mariners.
    (e) Regulations. (1) The general regulations contained in 33 CFR
165.23 apply. During the enforcement period, entry into, transiting,
remaining within, mooring or anchoring within these safety zones is
prohibited unless authorized by the Captain of the Port or his
designated representatives.

    (2) These temporary safety zones are closed to all vessel traffic,
except as may be permitted by the Captain of the Port or his designated
representatives. Vessel operators given permission to enter or operate
in the safety zones must comply with all directions given to them by
the Captain of the Port or his designated representatives. Vessels that
are granted permission by the Captain of the Port or designated
representative to enter or remain within a safety zone may be required
to be at anchor or moored to a waterfront facility such that the
vessel's location will not interfere with the progress of the event. At
all times when a vessel has been granted permission to enter within a
safety zone, it shall endeavor to maintain at least 50 yards distance
from any event participant unless otherwise directed.
    (3) The ``designated representative'' is any Coast Guard
commissioned, warrant, or petty officer who has been designated by the
Captain of the Port to act on his behalf. The designated representative
will be aboard either a Coast Guard or Coast Guard Auxiliary vessel.
    (4) Vessel operators desiring to enter or operate within the safety
zones shall telephone the Captain of the Port at<PHONE_NUMBER>, or his
designated representative via VHF Channel 16 to obtain permission to do
so.
    (5) The Captain of the Port or his designated representative may
delay or terminate any event listed in the events table in paragraph
(a)(2) of this section to ensure safety. Such action may be required as
a result of weather, vessel traffic density, spectator activities or
participant behavior.

    Dated: April 27, 2010.
J.B. McPherson,
Captain, U.S. Coast Guard, Captain of the Port, Sector Northern New
England.
[FR Doc. 2010-10948 Filed 5-7-10; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 78, Number 117 (Tuesday, June 18, 2013)]
[Notices]
[Pages 36621-36625]
[FR Doc No: 2013-14450]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69748; File No. SR-BATS-2013-032]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 2.11, Entitled ``BATS Trading, Inc. as Outbound Router''

June 12, 2013.
    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 3, 2013, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

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

    The Exchange filed a proposal to amend Rule 2.11, entitled ``BATS
Trading, Inc. as Outbound Router'', and Rule 21.9, entitled ``Order
Routing'', with respect to the authority of the Exchange or BATS
Trading, Inc. (``BATS Trading'') to cancel orders on the Exchange's
equity securities platform (``BATS Equities'') and equity options
platform (``BATS Options'') when a technical or system issue occurs, as
well as to describe the operation of an error account for BATS Trading.
    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange filed a proposal The Exchange proposes to amend Rule
2.11(a) by amending subparagraph (4) and adding new subparagraphs (6)
and (7) that address the authority of the Exchange or BATS Trading to
cancel orders when a technical or systems issue occurs and to describe
the operation of an error account for BATS Trading as it relates to
BATS Equities.\5\ The Exchange also proposes to amend Rule 21.9 by
adding subparagraphs (g) and (h) that address the authority of the
Exchange or BATS Trading to cancel options orders when a technical or
systems issue occurs and to describe the operation of an error account
for BATS Trading as it relates to BATS Options.
---------------------------------------------------------------------------

    \5\ BATS Trading is a facility of the Exchange. Accordingly,
under Rule 2.11, the Exchange is responsible for filing with the
Commission rule changes and fees relating to the functions of BATS
Trading. In addition, the Exchange is using the phrase ``BATS
Trading or the Exchange'' in this rule filing to reflect the fact
that a decision to take action with respect to orders affected by a
technical or systems issue may be made in the capacity of BATS
Trading or the Exchange depending on the circumstances of the issue.
     From time to time, the Exchange also uses non-affiliate third-
party broker-dealers to provide outbound routing services (i.e.,
third-party Routing Brokers). In those cases, orders are submitted
to the third-party Routing Broker through BATS Trading, the third-
party Routing Broker routes the orders to the Routing Destination in
its name, and any executions are submitted for clearance and
settlement in the name of BATS Trading so that any resulting
positions are delivered to BATS Trading upon settlement. As
described above, BATS Trading normally arranges for any resulting
securities positions to be delivered to the Member that submitted
the corresponding order to the Exchange. If error positions (as
defined in proposed Rule 2.11(a)(7)) result in connection with the
Exchange's use of a third-party Routing Broker for outbound routing,
and those positions are delivered to BATS Trading through the
clearance and settlement process, BATS Trading would be permitted to
resolve those positions in accordance with proposed Rule
2.11(a)(7)(B)-(E). If the third-party Routing Broker received error
positions in connection with its role as a routing broker for the
Exchange, and the error positions were not delivered to BATS Trading
through the clearance and settlement process, then the third-party
Routing Broker would resolve the error positions itself and BATS
Trading would not be permitted to accept the error positions, as set
forth in proposed Rule 2.11(a)(7)(B).
---------------------------------------------------------------------------

    BATS Trading is the approved routing broker of the Exchange for
both BATS Equities and BATS Options, subject to the conditions listed
in Rule 2.11, 2.12, and 21.9. The Exchange relies on BATS Trading to
provide outbound routing services from itself to routing destinations
of BATS Trading (``Routing Destinations''). Additionally, BATS Equities
relies on BATS Trading to provide inbound routing services for BATS Y-
Exchange, Inc. (``BYX'').\6\ When BATS Trading routes orders to a
Routing Destination, it does so by sending a corresponding order in its
own name to the Routing Destination. In the normal course, routed
orders that are executed at Routing Destinations are submitted for
clearance and settlement in the name of BATS Trading, and BATS Trading
arranges for any resulting securities positions to be delivered to the
Member that submitted the corresponding order to the Exchange.
---------------------------------------------------------------------------

    \6\ The Exchange has authority to receive inbound routes of
equities orders by BATS Trading from BYX. See Securities Exchange
Act Release No. 66808 (April 13, 2012), 77 FR 23294 (April 18, 2012)
(SR-BATS-2012-013).
---------------------------------------------------------------------------

Examples of Situations That May Lead to Cancelled Orders
    A technical or systems issue may arise at BATS Trading, a Routing
Destination, or the Exchange that may cause the Exchange or BATS
Trading to take steps to cancel orders if the Exchange or BATS Trading
determines that such action is necessary to maintain a fair and orderly
market. The examples set forth below describe some of the situations in
which the Exchange or BATS Trading may decide to cancel orders.\7\
---------------------------------------------------------------------------

    \7\ The examples described in this filing are not intended to be
comprehensive or exclusive. Rule 2.11 and 21.9, as proposed, would
provide general authority for the Exchange or BATS Trading to cancel
orders in order to maintain fair and orderly markets when technical
and systems issues occur and would also set forth the manner in
which error positions may be handled by the Exchange or BATS
Trading. The proposed rule change is not limited to addressing order
cancellation or error positions resulting only from the specific
examples described in this filing.

    Example 1.  If BATS Trading or a Routing Destination experiences
a technical or systems issue that results in BATS Trading not
receiving responses to immediate or cancel (``IOC'') orders that it
sent to the Routing Destination and that issue is not resolved in a
timely manner, BATS Trading or the Exchange would seek to cancel the
routed orders affected by the issue.\8\ For

instance, if BATS Trading experiences a connectivity issue affecting
the manner in which it sends or receives order messages to or from
Routing Destinations, it may be unable to receive timely execution
or cancellation reports from the Routing Destinations, and BATS
Trading or the Exchange may consequently seek to cancel the affected
routed orders. Once the decision is made to cancel those routed
orders, any cancellation that a Member submitted to the Exchange on
its initial order during such a situation would be honored.\9\
---------------------------------------------------------------------------

    \8\ In a normal situation (i.e., one in which a technical or
systems issue does not occur), BATS Trading should receive an
immediate response to an IOC order from a Routing Destination and
would pass the resulting fill or cancellation on to the Member.
After submitting an order that is routed to a Routing Destination,
if a Member sends an instruction to cancel that order, the
cancellation is held by the Exchange until a response is received
from the Routing Destination. For instance, if the Routing
Destination executes that order, the execution would be passed on to
the Member and the cancellation instruction would be disregarded.
    \9\ If a Member did not submit a cancellation to the Exchange,
however, that initial order would remain ``live'' and thus be
eligible for execution or posting on the Exchange, and neither the
Exchange nor BATS Trading would treat any execution of that initial
order or any subsequent routed order related to that initial order
as an error.
---------------------------------------------------------------------------

    Example 2.  If the Exchange experiences a systems issue, the
Exchange may take steps to cancel all outstanding orders affected by
that issue and notify affected Members of the cancellations. In
those cases, the Exchange would seek to cancel any routed orders
related to the Members' initial orders.

Examples of Situations That May Lead to Error Positions
    In some instances, the technical or systems issue at BATS Trading,
a Routing Destination, the Exchange, or a non-affiliate third party
Routing Broker may also result in BATS Trading acquiring an error
position that it must resolve. The examples set forth below describe
some of the circumstances in which error positions may arise.

    Example A.  Error positions may result from routed orders that
the Exchange or BATS Trading attempts to cancel but that are
executed before the Routing Destination receives the cancellation
message or that are executed because the Routing Destination is
unable to process the cancellation message. Using the situation
described in Example 1 above, assume that the Exchange seeks to
cancel orders routed to a Routing Destination because it is not
receiving timely execution or cancellation reports from the Routing
Destination. In such a situation, BATS Trading may still receive
executions from the Routing Destination after connectivity is
restored, which it would not then allocate to Members because of the
earlier decision to cancel the affected routed orders. Instead, BATS
Trading would post those positions into its error account and
resolve the positions in the manner described below.
    Example B.  Error positions may result from an order processing
issue at a Routing Destination. For instance, if a Routing
Destination experienced a systems problem that affects its order
processing, it may transmit back a message purporting to cancel a
routed order, but then subsequently submit an execution of that same
order (i.e., a locked-in trade) to The Depository Trust & Clearing
Corporation (``DTCC'') for clearance and settlement. In such a
situation, the Exchange would not then allocate the execution to the
Member because of the earlier cancellation message from the Routing
Destination. Instead, BATS Trading would post those positions into
its error account and resolve the positions in the manner described
below.
    Example C.  Error positions may result if BATS Trading receives
an execution report from a Routing Destination but does not receive
clearing instructions for the execution from the Routing
Destination. For instance, assume that a Member sends the Exchange
an order to buy 100 shares of ABC stock, which causes BATS Trading
to send an order to a Routing Destination that is subsequently
executed, cleared, and closed out by that Routing Destination, and
the execution is ultimately communicated back to that Member. On the
next trading day (T+1), if the Routing Destination does not provide
clearing instructions for that execution, BATS Trading would still
be responsible for settling that Member's purchase, but would be
left with a short position in its error account.\10\ BATS Trading
would resolve the position in the manner described below.
---------------------------------------------------------------------------

    \10\ To the extent that BATS Trading incurred a loss in covering
its positions, short or long, it would submit reimbursement claim to
that Routing Destination.
---------------------------------------------------------------------------

    Example D.  Error positions may result from a technical or
systems issue that causes orders to be executed in the name of BATS
Trading that are not related to BATS Trading's function as the
Exchange's routing broker and are not related to any corresponding
orders of Members. As a result, BATS Trading would not be able to
assign any positions resulting from such an issue to Members.
Instead, BATS Trading would post those positions into its error
account and resolve the positions in the manner described below.
    Example E.  Error positions may result from a technical or
systems issue at the Exchange through which the Exchange does not
receive sufficient notice that a Member that has executed trades on
the Exchange has lost the ability to clear trades through DTCC, as
well as where the Exchange received notice of such Member's loss of
ability to clear trades through DTCC, but, because of a technical or
systems issue at the Exchange, the Exchange was unable to react to
such notice in a timely manner. In such a situation, the Exchange
would not have valid clearing information, which would prevent the
trade from being automatically processed for clearance and
settlement on a locked-in basis. Accordingly, BATS Trading would
assume that Member's side of the trades so that the counterparties
can settle the trades. BATS Trading would post those positions into
its error account and resolve the positions in the manner described
below.
    Example F.  Error positions may result from a technical or
systems issue at the Exchange that does not involve routing of
orders through BATS Trading. For example, a situation may arise in
which a posted order was validly cancelled, but the system
erroneously matched that order with an order that was seeking to
access it. In such a situation, BATS Trading would have to assume
the side of the trade opposite the order seeking to access the
cancelled order. BATS Trading would post the position in its error
account and resolve the position in the manner described below.

    In each of the circumstances described above, it is possible that
neither the Exchange nor BATS Trading may learn about an error position
until T+1, either: (1) During the clearing process when a Routing
Destination has submitted to DTCC a transaction for clearance and
settlement for which BATS Trading never received an execution
confirmation; or (2) when a Routing Destination does not recognize a
transaction submitted by BATS Trading to DTCC for clearance and
settlement. Moreover, the affected Members' trades may not be nullified
absent express authority under BATS rules.\11\
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    \11\ See, e.g., Rule 11.17 (regarding clearly erroneous
executions).
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BATS Equities--Proposed Amendments to Rule 2.11
    The Exchange proposes to amend Rule 2.11(a) to add new paragraphs
(6) and (7) and to add certain language to Rule 2.11(a)(4).
Specifically, the Exchange proposes to amend Rule 2.11(a)(4) to state
that BATS Trading may employ an error account in compliance with
proposed paragraph (a)(7). Under paragraph (6) of the proposed rule,
the Exchange or BATS Trading would be expressly authorized to cancel
orders as may be necessary to maintain fair and orderly markets if a
technical or systems issue occurred at the Exchange, BATS Trading, or a
Routing Destination.\12\ The Exchange or BATS Trading would be required
to provide notice of the cancellation to affected Members as soon as is
practicable.
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    \12\ Such a situation may not cause the Exchange to declare
self-help against the routing destination pursuant to Rule 611 of
Regulation NMS. If the Exchange or BATS Trading determines to cancel
orders routed to a routing destination under proposed Rule
2.11(a)(7), but does not declare self-help against that routing
destination, the Exchange would continue to be subject to the trade-
through requirements in Rule 611 with respect to that routing
destination.
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    Paragraph (a)(7)(A) of the proposed rule would permit BATS Trading
to maintain an error account for the purpose of addressing positions
that are the result of an execution or executions that are not clearly
erroneous \13\ under

Rule 11.17 and result from a technical or systems issue at BATS
Trading, the Exchange, a Routing Destination, or a non-affiliate third-
party Routing Broker that affects one or more orders (``Error
Positions''). By definition, an Error Position would not include any
position that results from an order submitted by a Member to the
Exchange that is executed on the Exchange and automatically processed
for clearance and settlement on a locked-in basis. Under paragraph
(a)(7)(B) of the proposed rule, BATS Trading also would not be
permitted to accept any positions in its error account from an account
of a Member and could not permit any Member to transfer any positions
from the Member's account to BATS Trading's error account under the
proposed rule.\14\ However, under paragraph (a)(7)(C) of the proposed
rule, if a technical or systems issue results in the Exchange not
having valid clearing instructions for a Member to a trade, BATS
Trading may assume that Member's side of the trade so that the trade
can be processed for clearing and settlement on a locked-in basis.\15\
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    \13\ As defined in Rule 11.17(a), a transaction executed on the
Exchange is ``clearly erroneous'' when there is an obvious error in
any term, such as price, number of shares or other unit of trading,
or identification of the security.
    \14\ The purpose of this provision is to clarify that BATS
Trading may address error positions under the proposed rule that are
caused by a technical or systems issue, but that BATS Trading may
not accept from a Member positions that are delivered to the Member
through the clearance and settlement process, even if those
positions may have been related to a technical or systems issue at
BATS Trading, the Exchange, a Routing Destination of BATS Trading,
or a non-affiliate third-party Routing Broker. This provision would
not apply, however, to situations like the one described in Example
C in which BATS Trading incurred a short position to settle a
Member's purchase, as the Member did not yet have a position in its
account as a result of the purchase at the time of BATS Trading's
action (i.e., BATS Trading's action was necessary for the purchase
to settle into the Member's account). Similarly, the provision would
not apply to situations like the one described in Example F, where a
system issue caused one Member to receive an execution for which
there was not an available contra-party, in which case action by
BATS Trading would be necessary for the position to settle into that
Member's account. Moreover, to the extent a Member receives locked-
in positions in connection with a technical or systems issue, that
Member may seek to rely on BATS Rule 11.16 if it experiences a loss.
That rule provides Members with the ability to file claims against
the Exchange for ``losses resulting directly from the malfunction of
the Exchange's physical equipment, devices and/or programming or the
negligent acts or omissions of its employees.''
    \15\ See Example E above.
---------------------------------------------------------------------------

    Under paragraph (a)(7)(D), in connection with a particular
technical or systems issue, BATS Trading or the Exchange would be
permitted to either (i) assign all resulting Error Positions to
Members; or (ii) have all resulting Error Positions liquidated, as
described below. Any determination to assign or liquidate Error
Positions, as well as any resulting assignments, would be required to
be made in a nondiscriminatory fashion.
    BATS Trading or the Exchange would be required to assign all Error
Positions resulting from a particular technical or systems issue to the
applicable Members affected by that technical or systems issue if BATS
Trading or the Exchange: (i) Determines that it has accurate and
sufficient information (including valid clearing information) to assign
the positions to all of the applicable Members affected by that
technical or systems issue; (ii) determines that it has sufficient time
pursuant to normal clearance and settlement deadlines to evaluate the
information necessary to assign the positions to all of the applicable
Members affected by that technical or systems issue; and (iii) does not
determine to cancel all orders affected by that technical or systems
issue.
    For example, a technical or systems issue of limited scope or
duration may occur at a Routing Destination and the resulting trades
may be submitted for clearance and settlement by such Routing
Destination to DTCC. If there were a small number of trades, there may
be sufficient time to match positions with Member orders and avoid
using the error account.
    There may be scenarios, however, where BATS Trading determines that
it is unable to assign all Error Positions resulting from a particular
technical or systems issue to all of the affected Members, or
determines to cancel all affected routed orders. For example, in some
cases, the volume of questionable executions and positions resulting
from a technical or systems issue might be such that the research
necessary to determine which Members to assign those executions to
could be expected to extend past the normal settlement cycle for such
executions. Furthermore, if a Routing Destination experiences a
technical or systems issue after BATS Trading has transmitted IOC
orders to it that prevents BATS Trading from receiving responses to
those orders, BATS Trading or the Exchange may determine to cancel all
routed orders affected by that issue. In such a situation, BATS Trading
or the Exchange would not pass on to the Members any executions on the
routed orders received from the Routing Destination.
    Proposed Rule 2.11(a)(7)(D) would require BATS Trading to liquidate
Error Positions as soon as practicable.\16\ In liquidating Error
Positions, BATS Trading would be required to provide complete time and
price discretion for the trading to liquidate the Error Positions to a
third-party broker-dealer and could not attempt to exercise any
influence or control over the timing or methods of trading to liquidate
the Error Positions.\17\ BATS Trading also would be required to
establish and enforce policies and procedures reasonably designed to
restrict the flow of confidential and proprietary information between
the third-party broker-dealer and BATS Trading/the Exchange associated
with the liquidation of the Error Positions.
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    \16\ If BATS Trading determines in connection with a particular
technical or systems issue that some error positions can be assigned
to some affected Members, but other error positions cannot be
assigned, BATS Trading would be required under the proposed rule to
liquidate all such error positions (including those positions that
could be assigned to the affected Members).
    \17\ This provision is not intended to preclude BATS Trading
from providing the third-party broker with standing instructions
with respect to the manner in which it should handle all error
account transactions. For example, BATS Trading might instruct the
broker to treat all orders as ``not held'' and to attempt to
minimize any market impact on the price of the stock being traded.
---------------------------------------------------------------------------

    Under proposed paragraph (a)(7)(E), BATS Trading and the Exchange
would be required to make and keep records to document all
determinations to treat positions as Error Positions and all
determinations for the assignment of Error Positions to Members or the
liquidation of Error Positions, as well as records associated with the
liquidation of Error Positions through the third-party broker-dealer.
BATS Options--Proposed Amendments to Rule 21.9
    In order to maintain consistency between analogous services offered
by BATS Equities and BATS Options, the Exchange proposes to modify the
rules of BATS Options to conform with the changes described above
related to the cancellation of orders and the management of the BATS
Trading error account as it relates to BATS Equities. Accordingly, the
exchange proposes to add paragraphs (g) to Rule 21.9.
    As proposed, Rule 21.9(g)(1) and (2) are identical to the
description set forth in proposed Rule 2.11(a)(6) and (7) and described
above with the exception of minor references necessary due to the
difference between rules applicable to BATS Equities and BATS Options.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the

requirements of Section 6 of the Act.\18\ Specifically, the Exchange
believes that the proposed rule change is consistent with Section
6(b)(5) of the Act,\19\ in that it is designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest, and it is not designed to permit unfair discrimination
among customers, brokers, or dealers. The Exchange believes that this
proposal is in keeping with those principles since BATS Trading's or
the Exchange's ability to cancel orders during a technical and systems
issue and to maintain an error account facilitates the smooth and
efficient operation of the market. Specifically, the Exchange believes
that allowing BATS Trading or the Exchange to cancel orders during a
technical or systems issue would allow the Exchange to maintain fair
and orderly markets. Moreover, the Exchange believes that allowing BATS
Trading to assume Error Positions in an error account and to liquidate
those positions, subject to the conditions set forth in the proposed
amendments to Rule 2.11 and 21.9, would be the least disruptive means
to correct these errors, except in cases where BATS Trading can assign
all such Error Positions to all affected Members of the Exchange.
Overall, the proposed amendments are designed to ensure full trade
certainty for market participants and to avoid disrupting the clearance
and settlement process. The proposed amendments are also designed to
provide a consistent methodology for handling Error Positions in a
manner that does not discriminate among Members. The proposed
amendments are also consistent with Section 6 of the Act insofar as
they would require BATS Trading to establish controls to restrict the
flow of any confidential information between the third-party broker and
BATS Trading/the Exchange associated with the liquidation of Error
Positions.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f.
    \19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposed
amendment will align the Exchange's rules with other competing market
centers. Specifically, the rule change proposed herein is substantially
similar to the rules of other exchanges, including NASDAQ Stock Market
LLC (``Nasdaq'') Rule 4758(d), Nasdaq Options Market (``NOM'') Chapter
VI, Section 11(g), NYSE Arca Equities, Inc. (``Arca'') Rule 7.45(d)(2),
and EDGX Exchange, Inc. (``EDGX'') Rule 2.11(a).

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \20\ and Rule 19b-4(f)(6)
\21\ thereunder.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative
delay. The Commission believes that waiver of the operative delay is
consistent with the protection of investors and the public interest.
Such waiver would allow the Exchange, without delay, to implement the
proposed rule change, which is designed to provide a consistent
methodology for handling Error Positions in a manner that does not
discriminate among Members. The Commission also notes that the proposed
rule change is based on, and substantially similar to, rules of NYSE
Arca, Inc.,\22\ EDGX Exchange, Inc,\23\ and NASDAQ Stock Market
LLC,\24\ which the Commission previously approved. Accordingly, the
Commission designates the proposal operative upon filing.\25\
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    \22\ See Securities Exchange Act Release No. 66963 (May 10,
2012), 77 FR 28919 (May 16, 2012) (SR-NYSEArca-2012-22).
    \23\ See Securities Exchange Act Release No. 67010 (May 17,
2012), 77 FR 30564 (May 23, 2012) (SR-EDGX-2012-08).
    \24\ See Securities Exchange Act Release No. 67281 (June 27,
2012), 77 FR 39543 (July 3, 2012) (SR-NASDAQ-2012-057).
    \25\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is 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-BATS-2013-032 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-BATS-2013-032. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,

Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BATS-2013-032 and should be
submitted on or before July 9, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-14450 Filed 6-17-13; 8:45 am]
BILLING CODE 8011-01-P