[Federal Register Volume 74, Number 84 (Monday, May 4, 2009)]
[Notices]
[Pages 20512-20513]
[FR Doc No: E9-10116]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59826; File No. SR-NYSEArca-2009-22]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Accelerated Approval of a Proposed Rule Change To List and Trade Shares
of the Grail American Beacon Large Cap Value ETF

April 28, 2009.
    On March 13, 2009, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''),
through its wholly owned subsidiary, NYSE Arca Equities, Inc. (``NYSE
Arca Equities''), filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the Grail
American Beacon Large Cap Value ETF (``Fund'') under NYSE Arca Equities
Rule 8.600. The proposed rule change was published in the Federal
Register on April 6, 2009.\3\ The Commission received no comments on
the proposal. This order grants approval to the proposed rule change on
an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 59651 (March 30,
2009), 74 FR 15548 (``Notice'').
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I. Description of the Proposal

    The Exchange proposes to list and trade the Shares pursuant to NYSE
Arca Equities Rule 8.600, which governs the listing of Managed Fund
Shares.\4\ The Shares will be offered by Grail Advisors ETF Trust
(``Trust''),\5\ a statutory trust organized under the laws of the State
of Delaware and registered with the Commission as an open-end
management investment company. The Exchange states that the Shares will
conform to the initial and continued listing criteria under NYSE Arca
Equities Rule 8.600 and that the Fund will be in compliance with Rule
10A-3 under the Act,\6\ as provided by NYSE Arca Equities Rule 5.3.
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    \4\ See NYSE Arca Equities Rule 8.600.
    \5\ The Trust is registered under the Investment Company Act of
1940 (15 U.S.C. 80a) (``1940 Act''). On January 14, 2009, the Trust
filed with the Commission pre-effective amendment 1 to its
registration statement on Form N-1A under the Securities Act of 1933
(15 U.S.C. 77a), and under the 1940 Act relating to the Fund (File
Nos. 333-148082 and 811-22154) (``Registration Statement'').
    \6\ 17 CFR 240.10A-3.
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    Grail Advisors, LLC (``Manager''), a majority owned subsidiary of
Grail Partners, LLC, is the Fund's investment manager, and American
Beacon Advisors, Inc. (``ABA'') is the Fund's sub-adviser.\7\ The
Fund's investment objective is long-term capital appreciation and
current income. It seeks to achieve its investment objective by
investing at least 80% of its net assets (plus the amount of any
borrowings for investment purposes) in equity securities of large
market capitalization U.S. companies. These companies will generally
have market capitalizations similar to the market capitalizations of
the companies in the Russell 1000[supreg] Index at the time of
investment. The Russell 1000[supreg] Index measures the performance of
the 1,000 largest U.S. companies based on total market capitalization.
The Fund's investments may include common stocks, preferred stocks,
securities convertible into U.S. common stocks, U.S. dollar-denominated
American Depositary Receipts, and U.S. dollar-denominated foreign
stocks traded on U.S. exchanges. The Fund will not purchase or sell
securities in markets outside the United States.
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    \7\ The Exchange states that Grail Advisors, LLC is affiliated
with Grail Securities, LLC, a broker-dealer. As required by
Commentary .07 to NYSE Arca Equities Rule 8.600, the Exchange
represents that the Manager has implemented a ``fire wall'' with
respect to such broker-dealer regarding access to information
concerning composition and/or changes to the Fund's portfolio.
Commentary .07 to NYSE Arca Equities Rule 8.600 also requires
personnel, who make decisions on the open-end fund's portfolio
composition, must be subject to procedures designed to prevent the
use and dissemination of material nonpublic information regarding
the open-end fund's portfolio. In addition, the Exchange represents
that ABA, the Fund's primary sub-adviser, is not affiliated with a
broker-dealer and that any additional Fund sub-advisers that are
affiliated with a broker-dealer will be required to implement a fire
wall with respect to such broker-dealer regarding access to
information concerning the composition and/or changes to the
portfolio.
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    Additional information regarding the Fund, the Shares, the Fund's
investment objective, strategies, policies, and restrictions, risks,
fees and expenses, creations and redemptions of Shares, availability of
information, trading rules and halts, and surveillance procedures,
among other things, can be found in the Registration Statement and in
the Notice, as applicable.

II. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of Section 6 of the
Act \8\ and the rules and regulations thereunder applicable to a
national securities exchange.\9\ In particular, the Commission finds
that the proposal is consistent with Section 6(b)(5) of the Act,\10\
which requires, among other things, that the Exchange's rules be
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
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    \8\ 15 U.S.C. 78f.
    \9\ In approving this proposed rule change the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \10\ 17 U.S.C. 78f(b)(5).
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    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act, which sets forth Congress' finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers and investors of information with respect to
quotations for and transactions in securities. Quotation and last-sale
information for the Shares will be available via the Consolidated Tape
Association high-speed line, and the Exchange will disseminate the
Portfolio Indicative Value (``PIV'') at least every 15 seconds during
the Core Trading Session. In addition, the Fund will make available on
its Web site on each business day the Disclosed Portfolio that will
form the basis for its calculation of the net asset value (``NAV''),
which will be determined as of the close of the regular trading session
on the New York Stock Exchange (ordinarily 4 p.m. Eastern Time) on each
business day. The Fund's Web site will also include additional
quantitative information updated on a daily basis relating to trading
volume, prices, and NAV. Information regarding the market price and
volume of the Shares will be continually available on a real-time basis
throughout the day via electronic services, and the previous day's
closing price and trading volume information for the Shares will be
published daily in the financial sections of newspapers.
    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair

disclosure of information that may be necessary to price the Shares
appropriately and to prevent trading when a reasonable degree of
transparency cannot be assured. The Commission notes that the Exchange
will obtain a representation from the Fund that the NAV per Share will
be calculated daily and that the NAV and the Disclosed Portfolio will
be made available to all market participants at the same time.
Additionally, if it becomes aware that the NAV or the Disclose
Portfolio is not disseminated daily to all market participants at the
same time, the Exchange will halt trading in the Shares until such
information is available to all market participants. Further, if the
PIV is not being disseminated as required, the Exchange may halt
trading during the day in which the disruption occurs; if the
interruption persists past the day in which it occurred, the Exchange
will halt trading no later than the beginning of the trading day
following the interruption.\11\ The Exchange represents that the
Manager has implemented a ``fire wall'' between it and its broker-
dealer affiliate with respect to access to information concerning the
composition and/or changes to the Fund's portfolio.\12\ Finally, the
Commission notes that the Reporting Authority that provides the
Disclosed Portfolio must implement and maintain, or be subject to,
procedures designed to prevent the use and dissemination of material
non-public information regarding the actual components of the
portfolio.\13\
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    \11\ Trading in the Shares may also be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) the extent
to which trading is not occurring in the securities comprising the
Disclosed Portfolio and/or the financial instruments of the Fund; or
(2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present.
    \12\ The Exchange also represents that ABA, the Fund's primary
sub-adviser, is not affiliated with a broker-dealer, and that any
additional Fund sub-advisers that are affiliated with a broker-
dealer will be required to implement a fire wall with respect to
such broker-dealer regarding access to information concerning the
composition and/or changes to the portfolio.
    \13\ See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii).
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    The Exchange has represented that the Shares are equity securities
subject to the Exchange's rules governing the trading of equity
securities. In support of this proposal, the Exchange has made
representations, including:
    (1) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600.
    (2) The Exchange's surveillance procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws.
    (3) Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Circular will discuss the following: (a)
The procedures for purchases and redemptions of Shares and that Shares
are not individually redeemable; (b) NYSE Arca Equities Rule 9.2(a),
which imposes a duty of due diligence on its ETP Holders to learn the
essential facts relating to every customer prior to trading the Shares;
(c) the risks involved in trading the Shares during the Opening and
Late Trading Sessions when an updated PIV will not be calculated or
publicly disseminated; (d) how information regarding the PIV is
disseminated; (e) the requirement that ETP Holders deliver a prospectus
to investors purchasing newly issued Shares prior to or concurrently
with the confirmation of a transaction; and (f) trading information.
    (4) The Fund will be in compliance with Rule 10A-3 under the
Act.\14\
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    \14\ See supra note 6.
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    (5) The Fund will not purchase or sell securities in markets
outside the United States.

This approval order is based on the Exchange's representations.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \15\ and the
rules and regulations thereunder applicable to a national securities
exchange.
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    \15\ 15 U.S.C. 78f(b)(5).
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III. Accelerated Approval

    The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\16\ for approving the proposal prior to the thirtieth day
after the date of publication of the Notice in the Federal Register.
The Commission notes that it has approved the listing and trading on
the Exchange of shares of other actively managed exchange-traded funds
based on a portfolio of securities, the characteristics of which are
similar to those to be invested by the Fund.\17\ The Commission also
notes that it has received no comments regarding the proposed rule
change. The Commission finds that the proposed rule change does not
raise any novel regulatory issues and believes that accelerating
approval of this proposal should benefit investors by creating, without
undue delay, additional competition in the market for Managed Fund
Shares.
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    \16\ 15 U.S.C. 78s(b)(2).
    \17\ See, e.g., Securities Exchange Act Release Nos. 58512
(September 11, 2008), 73 FR 53915 (September 17, 2008) (SR-NYSEArca-
2008-85) (approving the listing and trading of shares of the
PowerShares Active U.S. Real Estate Fund); and 57619 (April 4,
2008), 73 FR 19544 (April 10, 2008) (SR-NYSEArca-2008-25) (approving
the listing and trading of shares of the PowerShares Active AlphaQ
Fund, PowerShares Active Alpha Multi-Cap Fund, and PowerShares
Active Mega-Cap Portfolio, among other funds).
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IV. Conclusion

    It is therfore ordered, pursuant to Section 19(b)(2) of the
Act,\18\ that the proposed rule change (SR-NYSEArca-2009-22) be, and it
hereby is, approved on an accelerated basis.
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    \18\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-10116 Filed 5-1-09; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register: November 15, 2007 (Volume 72, Number 220)]
[Notices]
[Page 64213-64215]
[DOCID:fr15no07-62]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Sunshine Act Meeting Notice

November 8, 2007.
    The following notice of meeting is published pursuant to section
3(a) of the government in the Sunshine Act (Pub. L. 94-409), 5 U.S.C.
552b:

Agency Holding Meeting: Federal Energy Regulatory Commission.

Date and Time: November 15, 2007, 10 a.m.

Place: Room 2C, 888 First Street, NE., Washington, DC 20426.

Status: Open.

Matters to be Considered: Agenda.

    *Note Items listed on the agenda may be deleted without further
notice.

Contact Person for More Information: Kimberly D. Bose, Secretary,
Telephone<PHONE_NUMBER>.
    For a recorded message listing items struck from or added to the
meeting, call<PHONE_NUMBER>.
    This is a list of matters to be considered by the Commission. It
does not include a listing of all documents relevant to the items on
the agenda. All public documents, however, may be viewed on line at the
Commission's Web site at http://www.ferc.gov using

the eLibrary link, or may be examined in the Commission's Public
Reference Room.

                                         926th--Meeting; Regular Meeting
                                          [November 15, 2007, 10 a.m.]
----------------------------------------------------------------------------------------------------------------
          Item No.                      Docket No.                                  Company
----------------------------------------------------------------------------------------------------------------
                                                 Administrative
----------------------------------------------------------------------------------------------------------------
A-1........................  AD02-1-000.....................  Agency Administrative Matters.
A-2........................  AD02-7-000.....................  Customer Matters, Reliability, Security and Market
                                                               Operations.
A-3........................  AD06-3-000.....................  Energy Market Update.
----------------------------------------------------------------------------------------------------------------
                                                    Electric
----------------------------------------------------------------------------------------------------------------
E-1........................  ER07-532-000...................  Midwest Independent Transmission System Operator,
                                                               Inc.
E-2........................  ER07-576-000...................  Baltimore Gas and Electric Company.
                             ER07-576-001...................
E-3........................  EL07-62-000....................  Southern California Edison Company.
E-4........................  RC07-3-000.....................  Lee County, Florida.
                             RC07-5-000.....................  Solid Waste Authority of Palm Beach County,
                                                               Florida.
E-5........................  ER07-1383-000..................  Duke Energy Shared Services, Inc.
                             ER07-1384-000..................
E-6........................  ER08-10-000....................  Pepco Holdings, Inc.
E-7........................  EL04-99-001....................  Mississippi Delta Energy Agency and Clarksdale
                                                               Public Utilities Commission v. Entergy Services,
                                                               Inc. and Entergy Operating Companies.
E-8........................  RR07-9-003.....................  North American Electric Reliability Corporation.
                             RR07-10-003....................
E-9........................  OMITTED........................
E-10.......................  EL07-91-000....................  Pacific Gas and Electric Company.
E-11.......................  OMITTED........................
E-12.......................  ER07-547-002...................  ISO New England Inc.
E-13.......................  ER05-1410-005..................  PJM Interconnection, L.L.C.
                             EL05-148-005...................
E-14.......................  ER04-835-006...................  California Independent System Operator
                             EL04-103-001...................   Corporation.
                                                              Pacific Gas and Electric Company v. California
                                                               Independent System Operator Corporation.
E-15.......................  EL05-19-002....................  Golden Spread Electric Cooperative, Inc., Lyntegar
                                                               Electric Cooperative, Inc., Farmers' Electric
                                                               Cooperative, Inc., Lea County Electric
                                                               Cooperative, Inc., Central Valley Electric
                                                               Cooperative, Inc. and Roosevelt County Electric
                                                               Cooperative, Inc. v. Southwestern Public Service
                                                               Company.
                             ER05-168-001...................  Southwestern Public Service Company.
E-16.......................  ER06-629-000...................  California Independent System Operator
                             ER06-629-001...................   Corporation.
                             ER06-630-000...................  California Independent System Operator
                                                               Corporation, Pacific Gas and Electric Company,
                                                               San Diego Gas and Electric Company and Southern
                                                               California Edison Company.
E-17.......................  EL00-95-136....................  San Diego Gas & Electric Company v. Sellers of
                                                               Energy and Ancillary Services into Markets
                                                               Operated by the California Independent System
                                                               Operator and the California Power Exchange
                                                               Corporation.
                             EL00-98-123....................  Investigation of Practices of the California
                                                               Independent System Operator Corporation and the
                                                               California Power Exchange.
E-18.......................  EC07-70-000....................  Entergy Gulf States, Inc. and Calcasieu Power,
                                                               LLC.
E-19.......................  OMITTED........................
----------------------------------------------------------------------------------------------------------------
                                                  Miscellaneous
----------------------------------------------------------------------------------------------------------------
M-1........................  RM07-16-000....................  Filing Via the Internet.
----------------------------------------------------------------------------------------------------------------
                                                       Gas
----------------------------------------------------------------------------------------------------------------
G-1........................  RM08-1-000.....................  Promotion of a More Efficient Capacity Release
                                                               Market.
G-2........................  RP07-508-000...................  Columbia Gulf Transmission Company.
                             RP07-508-001...................
                             RP07-508-002...................
G-3........................  RP07-507-000...................  Columbia Gas Transmission Corporation.
                             RP07-507-001...................
                             RP07-507-002...................
G-4........................  RP07-478-000...................  Columbia Gulf Transmission Company.
                             RP07-478-001...................
                             RP07-478-002...................
G-5........................  RP07-479-000...................  Columbia Gas Transmission Corporation.
                             RP07-479-001...................
                             RP07-479-002...................

G-6........................  RP07-396-001...................  Tennessee Gas Pipeline Company.
                             RP07-396-002...................
G-7........................  RP07-443-000...................  Iroquois Gas Transmission System, L.P.
                             RP07-443-001...................
G-8........................  RP04-99-003....................  Indicated Shippers v. Tennessee Gas Pipeline
                                                               Company.
G-9........................  RP07-504-000...................  Algonquin Gas Transmission, LLC.
----------------------------------------------------------------------------------------------------------------
                                                      Hydro
----------------------------------------------------------------------------------------------------------------
H-1........................  P-7115-038.....................  Homestead Energy Resources, LLC.
H-2........................  P-1390-005.....................  Southern California Edison Company.
                             P-1390-007.....................
                             P-1390-040.....................
H-3........................  P-11841-004....................  Ketchikan Public Utilities.
H-4........................  P-12734-003....................  Midwest Hydraulics, Inc.
H-5........................  P-2219-024.....................  Garkane Energy Cooperative, Inc.
----------------------------------------------------------------------------------------------------------------
                                                  Certificates
----------------------------------------------------------------------------------------------------------------
C-1........................  CP01-368-006...................  Transcontinental Gas Pipe Line Corporation.
                             CP01-369-004...................  Williams Gas Processing--Gulf Coast Company, L.P.
                             CP03-11-006....................  Jupiter Energy Corporation.
C-2........................  CP06-45-005....................  Northwest Pipeline Corporation.
C-3........................  CP07-411-000...................  Texas Eastern Transmission, LP.
C-4........................  CP06-459-000...................  Transwestern Pipeline Company, LLC.
                             CP07-9-000.....................  El Paso Natural Gas Company.
C-5........................  OMITTED........................
----------------------------------------------------------------------------------------------------------------

Kimberly D. Bose,
Secretary.

    A free webcast of this event is available through http://www.ferc.gov.
 Anyone with Internet access who desires to view this

event can do so by navigating to http://www.ferc.gov's Calendar of

Events and locating this event in the Calendar. The event will contain
a link to its Web cast. The Capitol Connection provides technical
support for the free Web casts. It also offers access to this event via
television in the DC area and via phone bridge for a fee. If you have
any questions, visit http://www.CapitolConnection.org or contact

Danelle Springer or David Reininger at<PHONE_NUMBER>.
    Immediately following the conclusion of the Commission Meeting, a
press briefing will be held in the Commission Meeting Room. Members of
the public may view this briefing in the designated overflow room. This
statement is intended to notify the public that the press briefings
that follow Commission meetings may now be viewed remotely at
Commission headquarters, but will not be telecast through the Capitol
Connection service.

 [FR Doc. E7-22292 Filed 11-14-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Notices]
[Pages 44178-44179]
[FR Doc No: 2015-18135]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75487; File No. SR-DTC-2015-007]

Self-Regulatory Organizations; The Depository Trust Company;
Order Approving Proposed Rule Change Regarding the Discontinuance of
the Distribution of Fractional Shares in Respect of Corporate Actions
for New Issues in DTC's System

July 20, 2015.

I. Introduction

    On May 27, 2015, The Depository Trust Company (``DTC'') filed with
the Securities and Exchange Commission (``Commission'') proposed rule
change SR-DTC-2015-007 pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to discontinue the option offered by DTC to
issuers that allows for the distribution of fractional shares of
securities in DTC's system, when DTC is handling fractional
dispositions of shares resulting from corporate actions, for new
issues, as more fully described below. The proposed rule change was
published for comment in the Federal Register on June 8, 2015.\3\ The
Commission did not receive comment letters regarding the proposed
change. For the reasons discussed below, the Commission is granting
approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 75094 (June 2, 2015), 80
FR 32425 (June 8, 2015) (File No. SR-DTC-2015-007).
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II. Description of the Proposed Rule Change

    The following is a description of the proposed rule change, as
provided by DTC:
    DTC's purpose with the proposed rule change is to discontinue the
option offered by DTC to issuers that allows for the distribution of
fractional shares of securities in DTC's system, when DTC is handling
fractional dispositions of shares resulting from corporate actions, for
new issues, as more fully described below.\4\
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    \4\ Terms not otherwise defined herein have the meaning set
forth in the DTC Rules and Procedures (``DTC Rules''), available at
http://www.dtcc.com/legal/rules-and-procedures.aspx.
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Background

    When a securities issue is made eligible at DTC, DTC has offered
three options to the issuer for handling the disposition of fractional
shares in DTC's system resulting from a corporate action for the issue.
The issuer may: (i) Round up to the next full share or drop fractions,
(ii) pay ``cash-in-lieu'' of fractional shares, or (iii) issue the
fractional shares into an identifying number (``Fractional
Identifier'') generated by DTC.\5\ The assets comprising the
disposition of fractional shares, whether in the form of shares or
cash, once received from the issuer's transfer or paying agent, are
credited by DTC in proportional amounts to the respective accounts of
Participants depending on the amount shares of the issue they have on
deposit. Participants then distribute credits on their own books, as
applicable, to their customers that hold beneficial interests in those
shares.
---------------------------------------------------------------------------

    \5\ The Fractional Identifier generated for the third option
above has been separate from the CUSIP[supreg] identifier
(``CUSIP'') that is universally recognized by the marketplace.
---------------------------------------------------------------------------

    The first two options for handling the disposition of fractional
shares are specified in the DTC Distributions Service Guide (``Guide'')
\6\ and DTC's Operational Arrangements (``OA'').\7\ Distributions of
fractional shares in DTC's system under the third option are delivered
to Participants in accordance with the provisions of DTC Rule 6 that
are applicable to DTC services related to Deposited Securities.\8\
---------------------------------------------------------------------------

    \6\ See the Guide, p. 31, available at http://www.dtcc.com/~/
media/Files/Downloads/legal/service-guides/
Distributions%20Service%20Guide%20FINAL%20November%202014.pdf.
    \7\ See the OA, p. 31, available at http://www.dtcc.com/~/media/
Files/Downloads/legal/issue-eligibility/eligibility/operational-
arrangements.pdf.
    \8\ See DTC Rules (Rule 6 (Services)), p. 45, available at
http://www.dtcc.com/~/media/Files/Downloads/legal/rules/
dtc_rules.pdf.
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Proposal

    Fractional shares are not tradable. The distribution of fractional
shares in respect of corporate actions reduces efficiencies for
investors in an issue, including with respect to the value and
transferability of assets delivered, as investors are required to wait
for an extended period for the aggregation of fractional shares into a
full share that may be traded. Tracking, processing and reporting of
fractional shares separately from the associated CUSIP, which are
necessitated by this process, increases costs to DTC and the industry.
    In order to improve efficiencies for investors and reduce costs for
DTC and the industry, DTC has proposed to discontinue the option for
issuers to distribute any fractional shares for new issues into DTC's
system. DTC will continue to allow issuers undergoing a corporate
action with a choice between:

(i) the rounding up and dropping of fractions, and (ii) the payment of
cash-in-lieu of fractional shares. DTC will maintain the Fractional
Identifiers previously designated for existing fractional shares within
DTC, and continue to perform corporate actions processing with respect
to those Fractional Identifiers.

Implementation

    The effective date of the proposed rule change will be announced
via a DTC Important Notice.

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \9\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and rules and regulations thereunder applicable
to such organization. Section 17A(b)(3)(F) of the Act requires, among
other things, that the rules of a clearing agency be designed to
promote the prompt and accurate clearance and settlement of securities
transactions, as well as, in general, protect investors and the public
interest.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2)(C).
    \10\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds the proposed rule change consistent with the
Act. More specifically, the Commission finds that the proposed rule
change is consistent with section 17A(b)(3)(F) of the Act.\11\ By
eliminating the distribution of fractional shares for new issues within
DTC's system, the proposed rule change should, as represented by DTC,
improve efficiencies for investors relating to the disposition of
fractional shares in corporate-action events, as well as reduce the
costs for DTC and the industry relating to DTC tracking, processing and
reporting on separate Fractional Identifiers for those issues,
consistent with the provisions of section 17A(b)(3)(F) of the Act which
require that the rules of the clearing agency be designed, among other
things, to promote the prompt and accurate clearance and settlement of
securities transactions, as well as, in general, to protect investors
and the public interest.\12\
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    \11\ Id.
    \12\ Id.
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of section 17A of the Act \13\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the Act,
that proposed rule change SR-DTC-2015-007 be, and hereby is,
approved.\14\
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    \14\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18135 Filed 7-23-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 28 (Tuesday, February 11, 2020)]
[Notices]
[Pages 7806-7811]
[FR Doc No: 2020-02631]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88131; File No. SR-NYSEAMER-2019-38]

Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, To Allow Certain
Flexible Equity Options To Be Cash Settled

February 5, 2020.

I. Introduction

    On October 17, 2019, NYSE American LLC (``NYSE American'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend Rules 903G and 906G to allow certain
Flexible Exchange (``FLEX'') Equity Options to be cash settled.\3\ The
proposal, as modified by Amendment No. 1, would allow FLEX Equity
Options to be cash settled where the underlying security is an
Exchange-Traded Fund (``ETF'') that meets prescribed criteria (``FLEX
ETF Option'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ For the definition of ``FLEX Equity Option,'' see infra note
7.
---------------------------------------------------------------------------

    The proposed rule change was published for comment in the Federal
Register on November 7, 2019.\4\ On December 18, 2019, the Commission
extended the time period within which to approve the proposed rule
changes, disapprove the proposed rule changes,

or institute proceedings to determine whether to approve or disapprove
the proposed rule changes, to February 5, 2020.\5\ On February 4, 2020,
the Exchange filed Amendment No. 1 to the proposed rule change, which
supersedes the original filing in its entirety.\6\ The Commission has
received no comments on the proposed rule change. The Commission is
publishing this notice to solicit comments on Amendment No. 1 from
interested persons, and is approving the proposed rule change, as
modified by Amendment No. 1, on an accelerated basis.
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    \4\ See Securities Exchange Act Release No. 87444 (November 1,
2019), 84 FR 60120 (November 7, 2019) (``Notice'').
    \5\ See Securities Exchange Act Release No. 87792 (December 18,
2019), 84 FR 71053 (December 26, 2019).
    \6\ In Amendment No. 1, the Exchange: (1) Limited cash
settlement as a contract term to those FLEX Equity Options whose
underlying security is an ETF; (ii) proposed to aggregate positions
in cash-settled FLEX ETF Options with positions in physically-
settled options on the same underlying ETF for purposes of position
and exercise limits; (3) proposed to limit the number of ETFs that
could underlie cash-settled FLEX ETF Options to no more than 50
underlying ETFs and set a tiebreaker if there are more than 50; (4)
specified that the Exchange will provide the Commission with annual
reports for five years that include, at a minimum, certain trading
information and analysis, and, if any, recommendations, regarding
the trading of cash-settled FLEX ETF Options; and (5) proposed some
clarifying changes to its original proposal. Amendment No. 1
replaces and supersedes the original filing in its entirety and is
available at: https://www.nyse.com/publicdocs/nyse/markets/nyse-american/rule-filings/filings/2020/NYSEAmex-2019-38,%20Am.%201.pdf.
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II. Description of the Proposal, as Modified by Amendment No. 1

    The Exchange has proposed to amend NYSE American Rule 903G(c) to
allow for cash settlement of certain FLEX Equity Options.\7\ FLEX
Equity Options permit investors to specify certain options contract
terms, within parameters set forth in the Exchange's FLEX rules, such
as exercise style, expiration date, and exercise prices.\8\ Currently,
FLEX Equity Options are settled by physical delivery of the underlying
security.\9\ The Exchange proposed, in the case of a FLEX Equity Option
with an underlying security that is an Exchange-Traded Fund (i.e., a
FLEX ETF Option) and that meets prescribed criteria, to allow
settlement either by delivery in cash or, as currently permitted under
the Exchange rules, by physical delivery of the underlying
security.\10\
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    \7\ A ``FLEX Option'' is a customized options contract that is
subject to the rules of Section 15, Flexible Exchange Options. See
NYSE American Rule 900G(b)(1). A ``FLEX Equity Option'' is an option
on a specified underlying equity security that is subject to the
rules of Section 15. See NYSE American Rule 900G(b)(10).
    \8\ See NYSE American Rule 903G.
    \9\ See NYSE American Rule 903G(c)(3)(i). There is one exception
for a specific type of option called FLEX Binary Return Derivatives
(``ByRDs''). See NYSE American Rules 900G(b)(17), 903G(c)(3)(ii),
and 910ByRDs.
    \10\ See proposed NYSE American Rule 903G(c)(3)(ii). The
Exchange proposed conforming changes to NYSE American Rule
903G(c)(3) to reflect that the proposed rule change would add a
second exception to the general requirement for physical settlement
for FLEX Equity Options on an eligible ETF. See proposed NYSE
American Rule 903G(c)(3)(i) and (iii).
---------------------------------------------------------------------------

    As proposed, the Exchange would allow for the cash settlement of a
FLEX ETF Option if the underlying ETF, measured over the prior six-
month period, has (1) an average daily notional value of at least $500
Million; and (2) a national average daily volume (``ADV'') of at least
4,680,000 shares.\11\ The Exchange proposed to determine bi-annually
the underlying ETFs that satisfy these notional value and trading
volume requirements by using trading statistics for the previous six-
months.\12\ The Exchange also proposed to permit cash settlement as a
contract term on no more than 50 underlying ETFs, and that if more than
50 underlying ETFs satisfy the notional value and trading volume
requirements, to select the top 50 securities based on the ETFs with
the highest ADV after meeting the initial requirements.\13\ Further,
the Exchange's proposed rule states that if the Exchange determines
pursuant to the bi-annual review that an underlying ETF ceases to
satisfy the specified criteria, any new position overlying such
security entered into would be required to have exercise settlement by
physical delivery and any open positions overlying such security would
be able to be traded only to close the position.\14\
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    \11\ See proposed NYSE American Rule 903G(c)(3)(ii).
    \12\ See proposed NYSE American Rule 903G(c)(3)(ii)(A). The
Exchange stated that it plans to conduct the bi-annual review on
January 1 and July 1 of each year, announce the results via a Trader
Update, and permit FLEX ETF Options any new ETFs that qualify to
have cash settlement as a contract term beginning on February 1 and
August 1 of each year. See Amendment No. 1, supra note 6, at n.8.
    \13\ See proposed NYSE American Rule 903G(c)(3)(ii)(A).
    \14\ See proposed NYSE American Rule 903G(c)(3)(ii)(B). The
Exchange represented that it will provide guidance to reflect that
an Exchange member acting as a market maker in cash-settled FLEX ETF
Options can enter into an opening transaction to facilitate closing
only transactions of another market participant when such orders are
restricted to closing only transactions. See Amendment No. 1, supra
note 6, at 5. The Exchange noted in its proposal that this is
consistent with how it addresses other situations when transactions
in certain options series are restricted to closing-only
transactions and represented that this interpretation is consistent
with a market maker's duty to maintain fair and orderly markets as
set forth in NYSE American Rule 920NY. See Amendment No. 1, supra
note 6, at n.10 (citing https://www.nyse.com/publicdocs/nyse/markets/arca-options/rule-interpretations/2017/NYSE%20Arca%20Options%20RB%2017-01.pdf).
---------------------------------------------------------------------------

    In support of its proposal, the Exchange stated that it believes it
is appropriate to introduce cash settlement as an alternative contract
term to the select group of ETFs because they are ``among the most
highly liquid and actively-traded securities,'' \15\ and that the deep
liquidity and robust trading activity in these ETFs, in the Exchange's
view, mitigate against historic concerns regarding susceptibility to
manipulation.\16\ The Exchange stated that it believes that average
daily notional value is an appropriate proxy for selecting underlying
ETFs that are not readily susceptible to manipulation because it
believes that as a general matter, the more expensive an underlying
ETF's price, the less cost-effective manipulation could become, and
that manipulation of the price of an ETF encounters greater difficulty
the more volume that is traded.\17\ In addition, the Exchange stated
that it believes an ADV requirement of 4,680,000 shares a day is
appropriate because it represents average trading in the underlying ETF
of 200 shares per second.\18\ The Exchange stated that it believes that
while no security is immune from all manipulation, the combination of
average daily notional value and ADV as prerequisite requirements would
limit cash settlement of FLEX ETF Options to those underlying
securities that would be less susceptible to manipulation in order to
establish a settlement price.\19\ The Exchange further stated that it
believes that permitting cash settlement as a contract term for FLEX
ETF Options would broaden the base of investors that use FLEX Options
to manage their trading and investment risk, including investors that
currently trade in the OTC market for customized options, where
settlement restrictions do not apply.\20\
---------------------------------------------------------------------------

    \15\ See Amendment No. 1, supra note 6, at 5.
    \16\ See Amendment No. 1, supra note 6, at 5.
    \17\ See Notice, supra note 4, 84 FR at 60120. See also
Amendment No. 1, supra note 6, at 6-7. To calculate average daily
notional value, the Exchange summed the notional value of each trade
for each symbol (i.e., the number of shares times the price for each
execution in the security) and divided that total by the number of
trading days in the six-month period (from July 1, 2019 through
December 31, 2019) reviewed by the Exchange. See Amendment No. 1,
supra note 6, at 6-7.
    \18\ See Notice, supra note 4, 84 FR at 60120. See also
Amendment No. 1, supra note 6, at 7.
    \19\ See Amendment No. 1, supra note 6, at 7.
    \20\ See Amendment No. 1, supra note 6, at 8.
---------------------------------------------------------------------------

    The Exchange represented that the table below provides the list of
the 26 securities that, as of December 31, 2019, would be eligible to
have cash settlement as a contract term.\21\
---------------------------------------------------------------------------

    \21\ See Amendment No. 1, supra note 6, at 7-8.

----------------------------------------------------------------------------------------------------------------
                                                                              Average daily      Average daily
              Symbol                            Security name                 notional value    volume  (7/1/19-
                                                                            (7/1/19-12/31/19)      12/31/19)
----------------------------------------------------------------------------------------------------------------
SPY..............................  SPDR S&P 500 ETF Trust.................    $19,348,446,943         64,473,579
GDX..............................  VanEck Vectors Gold Miners ETF.........      1,642,832,369         59,224,665
EEM..............................  iShares MSCI Emerging Markets ETF......      2,452,054,515         58,392,976
XLF..............................  Financial Select Sector SPDR Fund......      1,326,369,702         51,114,805
VXX..............................  iPath Series B S&P 500 VIX Short-Term          771,760,803         34,481,358
                                    Futures ETN.
XOP..............................  SPDR S&P Oil & Gas Exploration &               634,221,618         28,045,372
                                    Production ETF.
QQQ..............................  Invesco QQQ Trust......................      4,881,991,635         25,290,206
EWZ..............................  iShares MSCI Brazil ETF................      1,021,953,287         23,573,072
EFA..............................  iShares MSCI EAFE ETF..................      1,547,095,600         23,547,995
FXI..............................  iShares China Large-Cap ETF............        962,138,508         23,499,870
IWM..............................  iShares Russell 2000 ETF...............      2,850,264,638         18,418,308
HYG..............................  iShares iBoxx High Yield Corporate Bond      1,596,947,580         18,385,570
                                    ETF.
GDXJ.............................  VanEck Vectors Junior Gold Miners ETF..        644,620,425         16,792,343
TQQQ.............................  ProShares UltraPro QQQ.................      1,107,279,835         16,739,207
XLU..............................  Utilities Select Sector SPDR Fund......      1,037,188,333         16,587,526
XLE..............................  Energy Select Sector SPDR Fund.........        857,120,647         14,338,385
IEMG.............................  iShares Core MSCI Emerging Markets ETF.        690,635,496         13,711,914
XLP..............................  Consumer Staples Select Sector SPDR            740,499,207         12,203,155
                                    Fund.
TLT..............................  iShares 20+ Year Treasury Bond ETF.....      1,482,683,513         10,608,009
XLK..............................  Technology Select Sector SPDR Fund.....        846,007,077         10,319,276
XLI..............................  Industrial Select Sector SPDR Fund.....        771,117,183          9,884,799
LQD..............................  iShares iBoxx Investment Grade               1,215,543,560          9,602,402
                                    Corporate Bond ETF.
GLD..............................  SPDR Gold Trust........................      1,335,356,112          9,569,458
XLV..............................  Health Care Select Sector SPDR Fund....        776,822,924          8,333,845
IYR..............................  iShares U.S. Real Estate ETF...........        641,445,902          6,981,265
JNK..............................  SPDR Bloomberg Barclays High Yield Bond        632,969,484          5,845,332
                                    ETF.
----------------------------------------------------------------------------------------------------------------

    The Exchange proposed that cash-settled FLEX ETF Options would be
subject to the position limits set forth in NYSE American Rule 904 and
the exercise limits set forth in NYSE American Rule 905, which rules
also apply to the standardized options market.\22\ In addition, the
Exchange proposed that positions in cash-settled options will be
aggregated with all positions in physically-settled options on the same
underlying ETF for the purpose of calculating the position limits set
forth in Rule 904, and the exercise limits set forth in Rule 905.\23\
---------------------------------------------------------------------------

    \22\ See proposed NYSE American Rule 906G(b)(ii). The Exchange
represented that, out of the 26 underlying ETFs that would currently
be eligible to have cash settlement as a contract term, 18 would
have a position limit of 250,000 contracts (see NYSE American Rule
904, Commentary .07(a)) and the position limit for the other eight
underlying securities would be as follows: For QQQ and SPY,
1,800,000 contracts; for IWM and EEM, 1,000,000 contracts; and for
FXI, EFA, EWZ and TLT, 500,000 contracts (see NYSE American Rule
904, Commentary .07(f)). See Amendment No. 1, supra note 6, at 9-10.
The Commission notes that, under the Exchange's rules, the
applicable exercise limits will be the same as the position limits.
    \23\ See proposed NYSE American Rule 906G(b)(ii). The Exchange
also proposes a non-substantive amendment to Rule 906G to renumber
current NYSE American Rule 906G(b)(ii) as new NYSE American Rule
906G(b)(iii). The Exchange stated that, given that each of the
underlying securities that would currently be eligible to have cash-
settlement as a contract term have established position and exercise
limits applicable to physically-settled options, the Exchange
believes it is appropriate for the same position and exercise limits
to also apply to cash-settled options. See Notice, supra note 4, 84
FR at 60122. See also Amendment No. 1, supra note 6, at 9.
---------------------------------------------------------------------------

    The Exchange noted in its filing that cash-settled FLEX ETF Options
would not be available for trading until The Options Clearing
Corporation (``OCC'') represents to the Exchange that it is fully able
to clear and settle such options.\24\ The Exchange stated that it
represents that it and The Options Price Reporting Authority (``OPRA'')
have the necessary systems capacity to handle the additional traffic
associated with the listing of cash-settled FLEX ETF Options, and that
it believes that its members will not have a capacity issue as a result
of the proposed rule change.\25\ The Exchange also represented that it
does not believe the proposed rule change will cause fragmentation of
liquidity.\26\ The Exchange further represented that it will monitor
for any effects additional trading volume from the proposal may have on
both market fragmentation and capacity of the Exchange's automated
systems.\27\
---------------------------------------------------------------------------

    \24\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 10.
    \25\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 10.
    \26\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 10.
    \27\ See Notice, supra note 4, 84 FR at 60123. See also,
Amendment No. 1, supra note 6, at 10.
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    The Exchange stated that it believes that it has an adequate
surveillance program in place for cash-settled FLEX ETF Options and
intends to apply the same program procedures that it applies to the
Exchange's other options products.\28\ The Exchange represented, among
other things, that its existing trading surveillances are adequate to
monitor the trading in the underlying securities and subsequent trading
of options on those securities on the Exchange, including cash-settled
FLEX ETF Options.\29\ The Exchange noted that the regulatory program
operated by and overseen by NYSE Regulation includes cross-market
surveillance designed to identify manipulative and other improper
trading that may occur on the Exchange and other markets.\30\ The
Exchange also represented, among other things, that it believes its
existing surveillance technologies and procedures adequately address
potential concerns regarding possible manipulation of the settlement
value at or near the close of the market.\31\ In addition, the Exchange
stated that it believes that improvements in audit trails,
recordkeeping practices, and inter-exchange cooperation over the last
two decades have greatly increased the

Exchange's ability to detect and punish attempted manipulative
activities.\32\
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    \28\ See Amendment No. 1, supra note 6, at 11.
    \29\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 11.
    \30\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 11.
    \31\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 11. The Commission notes that the
Exchange's surveillance procedures are described in more detail in
the Notice and in Amendment No. 1 and that these descriptions are
substantively identical. See Notice, supra note 4, 84 FR 60123-24;
Amendment No. 1, supra note 6, at 11-12.
    \32\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 12.
---------------------------------------------------------------------------

    The Exchange represented that it is a member of the Intermarket
Surveillance Group (``ISG'') under the Intermarket Surveillance Group
Agreement dated June 20, 1994.\33\ The ISG members work together to
coordinate surveillance and investigative information sharing in the
stock and options markets.\34\ For surveillance purposes, the Exchange
stated that it would have access to information regarding trading
activity in the pertinent underlying securities.\35\
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    \33\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 12.
    \34\ See Notice, supra note 4, 84 FR at 60123. See also
Amendment No. 1, supra note 6, at 12.
    \35\ See Notice, supra note 4, 84 FR at 60124. See also
Amendment No. 1, supra note 6, at 12.
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    Finally, the Exchange represented that, given the novel
characteristics of cash-settled FLEX ETF Options, the Exchange will
conduct a review of the trading in cash-settled FLEX ETF Options over
an initial five-year period and furnish annual reports to the SEC based
on this review.\36\ At a minimum, the reports will provide a comparison
between the trading volume of all cash-settled FLEX ETF Options listed
under the proposed rule and physically-settled options on the same
underlying security, the liquidity of the market for such options
products and the underlying ETFs, and any manipulation concerns arising
in connection with the trading of cash-settled FLEX ETF Options under
the proposed rule, and will also discuss any recommendations the
Exchange may have for enhancements to the listing standards based on
its review.\37\
---------------------------------------------------------------------------

    \36\ See Amendment No. 1, supra note 6, at 13. The Exchange
stated that it would provide the first report within 60 days after
the first anniversary of the initial listing date of the first cash-
settled FLEX ETF Option under the proposal and that each subsequent
report will be provided within 60 days of the anniversary of the
initial listing date on an annual basis up until and including year
five. Id.
    \37\ See Amendment No. 1, supra note 6, at 13.
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III. Discussion and Commission Findings

    After careful review of the proposal, as modified by Amendment No.
1, the Commission finds that the proposed rule change, as modified by
Amendment No. 1, is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\38\ In particular, the Commission finds that the proposed
rule change, as modified by Amendment No. 1, is consistent with Section
6(b)(5) of the Act,\39\ which requires, among other things, that the
rules of a national securities exchange be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------

    \38\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \39\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that the Exchange's modified proposal would
allow cash settlement for FLEX Equity Options only on ETFs, and only
where the underlying ETF, as measured over the prior six-month period,
has (1) an average daily notional value of at least $500 Million; and
(2) a national ADV of at least 4,680,000 shares.\40\ The Commission
notes, and the Exchange has represented, that the 26 ETFs currently
eligible using the proposed criteria appear to be among some of the
most liquid and actively-traded ETFs based on their average daily
volume and average notional value. The Commission believes that, by
limiting the trading of options permitted to have cash settlement to
those with underlying ETFs and only where these ETFs are liquid and
actively traded, along with the other proposed requirements, appears to
be reasonably designed to mitigate concerns about the susceptibility to
manipulation of such cash-settled FLEX ETF Options and their underlying
ETFs and the potential for market disruption. Additionally, the
proposed aggregated position and exercise limits and surveillance
procedures discussed below, taken together with the liquid and active
markets in the underlying eligible ETFs, also appears reasonably
designed to address and mitigate concerns about the potential for
manipulation and market disruption in markets for the options and the
underlying securities.
---------------------------------------------------------------------------

    \40\ See supra note 11 and accompanying text.
---------------------------------------------------------------------------

    The Commission also notes that the Exchange has proposed to use the
same position limits and exercise limits for cash-settled FLEX ETF
Options that are applicable to the non-FLEX standardized options
market, and to aggregate the positions in cash-settled FLEX ETF Options
with all positions in physically-settled options on the same underlying
ETF for purposes of calculating the position and exercise limits.\41\
The Commission has previously recognized that position and exercise
limits serve as a regulatory tool designed to address manipulative
schemes and adverse market impact surrounding the use of options and
that the limits can be useful to prevent investors from disrupting the
market in securities underlying the options as well as the options
market itself.\42\ The Commission believes therefore that establishing
position and exercise limits at the same levels as those in the non-
FLEX standardized options market and aggregating those positions with
all physically-settled options on the same underlying ETFs \43\ can
further help mitigate the concerns that the limits are designed to
address about the potential for manipulation and market disruption in
the options and the underlying securities.
---------------------------------------------------------------------------

    \41\ See supra notes 22-23 and accompanying text.
    \42\ See Securities Exchange Act Release No. 82770 (February 23,
2018), 83 FR 8907, 8910 (March 1, 2018) (SR-CBOE-2017-057).
    \43\ The aggregation of position and exercise limits would
include all positions on physically-settled FLEX and non-FLEX
options on the same underlying ETFs.
---------------------------------------------------------------------------

    The Commission notes that the Exchange will conduct a biannual
review of the underlying ETFs to determine whether they no longer meet
the requirements for cash-settled FLEX ETF Options on those ETFs.\44\
The Commission believes that this requirement is a reasonable means to
limit cash settlement to those FLEX ETF Options that only overlie ETFs
that continue to meet the specified liquidity and trading volume
standards. The Commission also believes that while, as part of the
biannual review, the Exchange can identify new underlying ETFs that
meet the requirements and are thus eligible for cash-settled FLEX ETF
Options, limiting the number of qualifying underlying ETFs to 50 will
prevent the scope of cash settlement on FLEX ETF Options from growing
considerably without an evaluation about whether the level of the
requirements remains reasonable.\45\ The Commission further believes
that selecting the top 50 securities based on ETFs with the highest
ADV, if more than 50 ETFs otherwise meet the requirements in Rule
903(G)(c)(3)(ii), appears to be a reasonable tiebreaker. In addition,
the Commission notes that, should the Exchange determine, pursuant to
the bi-annual review that an underlying ETF ceases to satisfy the

requirements under Rule 903(G)(c)(3)(ii), any new options position
overlying such ETF would be required to have exercise settlement by
physical delivery and any open cash-settled FLEX ETF Option positions
may be traded only to close the position.\46\ The Commission believes
that this provision is a reasonable means to address how to wind down
an outstanding cash-settled FLEX ETF Option where the underlying ETF no
longer qualifies under the liquidity and volume criteria, thereby
addressing manipulation concerns, while still allowing market
participants to close out positions.
---------------------------------------------------------------------------

    \44\ See supra note 12 and accompanying text.
    \45\ See supra note 13 and accompanying text. At the same time,
the overall limit of 50 ETFs that can underlie cash settled FLEX ETF
Options should also provide the Exchange with flexibility to add
additional ETFs that meet the Exchange's requirements given that the
current eligible list of ETFs as of December 31, 2019 contains 26
ETFs.
    \46\ See supra note 14 and accompanying text.
---------------------------------------------------------------------------

    The Commission recognizes that the proposal is unique in that it
would allow options on ETFs that currently are only available to be
traded on a national securities exchange with physical settlement to
now have a cash-settlement alternative. The Exchange, acknowledging the
``novel characteristics'' of its proposal has committed to perform
periodic data analyses with written assessments and to make such
analyses and assessments available to the Commission on an annual basis
for the first five years of trading in the subject options.\47\ As
noted above, the Exchange has also stated that the reports will discuss
any recommendations it has on enhancements to its proposed listing
standards based on these reviews. The Commission notes that the annual
reports will allow the Commission and the Exchange to evaluate, among
other things, the impact such options have, and any potential adverse
effects, on price volatility and the market for the underlying ETFs,
the component securities underlying the ETFs, and the options on the
same underlying ETFs and make appropriate recommendations, if any, in
response to the reports.
---------------------------------------------------------------------------

    \47\ See supra notes 36-37 and accompanying text.
---------------------------------------------------------------------------

    The Commission notes that surveillance is important, among other
things, to detect and deter fraudulent and manipulative trading
activity as well as other violations of Exchange rules and the federal
securities laws. The Exchange has represented that it has adequate
surveillance procedures in place to monitor trading in these options
and the underlying securities, including to detect manipulative trading
activity in both the options and the underlying ETF.\48\ The Exchange
further asserted that the liquidity and active markets in the
underlying ETFs, and the high number of market participants in both the
underlying ETFs and existing options on the ETFs, helps to minimize the
possibility of manipulation. The Commission notes that the proposed
surveillance, along with the liquidity criteria and position and
exercise limits requirements, appear to be reasonably designed to
mitigate manipulation concerns. The Commission further notes that under
Section 19(g) of the Act, the Exchange, as a self-regulatory
organization, is required to enforce compliance by its members and
persons associated with its members with the Act, the rules and
regulations thereunder, and the rules of the Exchange.\49\ The
Commission understands that the Exchange performs ongoing evaluations
of its surveillance program to ensure its continued effectiveness and
the Commission would, therefore, expect the Exchange to continue to
review its surveillance procedures on an ongoing basis and make any
necessary enhancements and/or modifications that may be needed for the
cash settlement of FLEX ETF Options.
---------------------------------------------------------------------------

    \48\ See supra notes 28-35 and accompanying text. Among other
things, the Exchange noted that its regulatory program included
cross-market surveillance designed to identify manipulative and
other improper trading, including spoofing, algorithm gaming,
marking the close and open, as well as more general abusive behavior
related to front running, wash sales, quoting/routing, and Reg SHO
violations, that may occur on the Exchange and other markets.
Furthermore, the Exchange stated that it has access to information
regarding trading activity in the pertinent underlying securities as
a member of ISG. See Amendment No. 1, supra note 6, at 11-12. See
also id. at n.15.
    \49\ 15 U.S.C. 78s(g).
---------------------------------------------------------------------------

    In approving the proposed rule change, the Commission notes that
cash-settled FLEX ETF Options will be subject to the same trading rules
and procedures that currently govern the trading of other FLEX Options
on the Exchange, with the exception of the rules to accommodate the
cash settlement feature being approved herein. The Commission also
notes that the Exchange has represented that it will monitor any effect
additional options series listed under the proposal have on market
fragmentation and the capacity of the Exchange's automated systems. The
Commission notes that FLEX ETF Options, as the Exchange represented,
cannot be traded until OCC represents to the Exchange that it is fully
able to clear and settle such options.\50\ Finally, the Commission
expects that the Exchange will take prompt action, including timely
communication with the Commission and with other self-regulatory
organizations responsible for oversight of trading in options, the
underlying ETFs, and the ETFs' component securities, should any
unanticipated adverse market effects develop.
---------------------------------------------------------------------------

    \50\ See supra note 24 and accompanying text. The Commission
understands that, as of the date of this Order, OCC has not yet made
the necessary representations for the Exchange to be able to
commence trading.
---------------------------------------------------------------------------

    Based on the Exchange's representations with respect to the
proposed cash-settlement of FLEX Equity Options, whose underlying
security is an ETF, and for the foregoing reasons, the Commission finds
that the proposed rule change, as modified by Amendment No. 1, is
consistent with the Act.

IV. Accelerated Approval of Proposed Rule Change, as Modified By
Amendment No. 1

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the thirtieth day
after the date of publication of notice of the filing of Amendment No.
1 in the Federal Register. As discussed above, Amendment No. 1 modified
the original proposed rule change to limit the cash settlement of FLEX
Equity Options to underlying ETFs, with a maximum cap of 50 such ETFs,
that have met the originally proposed average daily notional value and
national average daily volume requirements, using average daily volume
as a tiebreaker if more than 50 ETFs otherwise qualify. Amendment No 1
also modified the original proposal to require that the proposed
position and exercise limits for cash-settled FLEX ETF Options be
aggregated with all physically-settled options on the same underlying
ETF. Amendment No. 1 stated that the Exchange would provide a report to
the Commission annually for five years providing an analysis, along
with any recommendations, concerning the trading of cash-settled FLEX
ETF Options. Finally, Amendment No. 1 made some additional clarifying
changes to the original proposal.
    The Commission notes that the changes made to the original proposal
in Amendment No. 1 narrows the scope of the proposed rule change and
limits its applicability to ETFs, which should help to mitigate
potential risks of manipulation and market disruption. The amendment to
aggregate position and exercise limits also addressed similar concerns.
Furthermore, the Commission notes that the original, broader proposal,
including the proposed numerical eligibility criteria applied to the
underlying ETFs, was published for comment in the Federal Register and
no comments were received. The Exchange's annual report requirement
also supplements the

proposal and should help the Exchange and the Commission in assessing
any potential market impacts, including on price volatility, from the
trading of the cash-settled FLEX ETF Options under the proposal. In
addition, Amendment No. 1 clarifies and provides additional explanation
relating to the proposed rule change. The changes and additional
information in Amendment No. 1 have also assisted the Commission in
evaluating the proposal and finding that the proposal is consistent
with the Act.
    Accordingly, the Commission finds good cause, pursuant to Section
19(b)(2) of the Act,\51\ to approve the proposed rule change, SR-
NYSEAMER-2019-38, as modified by Amendment No. 1, on an accelerated
basis.
---------------------------------------------------------------------------

    \51\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Solicitation of Comments on Amendment No. 1 to the Proposed Rule
Change

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 1
to 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-NYSEAMER-2019-38 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEAMER-2019-38. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEAMER-2019-38 and should be submitted
on or before March 3, 2020.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\52\ that the proposed rule change (SR-NYSEAMER-2019-38), as
modified by Amendment No. 1, be, and hereby is, approved.
---------------------------------------------------------------------------

    \52\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\53\
---------------------------------------------------------------------------

    \53\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02631 Filed 2-10-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 2 (Tuesday, January 5, 2016)]
[Notices]
[Page 242]
[FR Doc No: 2015-33171]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2015-N-0001]

Advisory Committee; Food Advisory Committee, Renewal

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice; renewal of advisory committee.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing the
renewal of the Food Advisory Committee by the Commissioner of Food and
Drugs (the Commissioner). The Commissioner has determined that it is in
the public interest to renew the Food Advisory Committee for an
additional 2 years beyond the charter expiration date. The new charter
will be in effect until the December 18, 2017.

DATES: Authority for the Food Advisory Committee will expire on
December 18, 2017, unless the Commissioner formally determines that
renewal is in the public interest.

FOR FURTHER INFORMATION CONTACT: Karen Strambler, Center for Food
Safety and Applied Nutrition, Office of Regulations, Policy, and Social
Sciences, Food and Drug Administration, 5100 Paint Branch Pkwy.,
College Park, MD 20740,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Pursuant to 41 CFR 102-3.65 and approval by
the Department of Health and Human Services pursuant to 45 CFR part 11
and by the General Services Administration, FDA is announcing the
renewal of the Food Advisory Committee. The committee is a
discretionary Federal advisory committee established to provide advice
to the Commissioner.

I. Objectives and Scope of Activities

    The Food Advisory Committee (the Committee) advises the
Commissioner or designee in discharging responsibilities as they relate
to helping to ensure safe and effective drugs for human use and, as
required, any other product for which FDA has regulatory
responsibility.

II. Description of Duties

    The Committee reviews and evaluates emerging food safety,
nutrition, and other food- or cosmetic-related health issues that FDA
considers of primary importance for its food and cosmetics programs.
The Committee may be charged with reviewing and evaluating available
data and making recommendations on matters such as those relating to:
(1) Broad scientific and technical food- or cosmetic-related issues;
(2) the safety of food ingredients and new foods; (3) labeling of foods
and cosmetics; (4) nutrient needs and nutritional adequacy; and (5)
safe exposure limits for food contaminants. The Committee may also be
asked to provide advice and make recommendations on ways of
communicating to the public the potential risks associated with these
issues and on approaches that might be considered for addressing the
issues.

III. Membership and Designation

    The Committee shall consist of a core of 15 voting members
including the Chair. Members and the Chair are selected by the
Commissioner or designee from among authorities knowledgeable in the
fields of physical sciences, biological and life sciences, food
science, risk assessment, nutrition, food technology, molecular
biology, epidemiology, and other relevant scientific and technical
disciplines. Members will be invited to serve for overlapping terms of
up to 4 years. Almost all non-Federal members of this committee serve
as Special Government Employees. The core of voting members may include
two technically qualified member(s), selected by the Commissioner or
designee, who are identified with consumer interests and are
recommended by either a consortium of consumer-oriented organizations
or other interested persons. In addition to the voting members, the
Committee may include two non-voting member(s) who are identified with
industry interests.
    Further information regarding the most recent charter and other
information can be found at http://www.fda.gov/AdvisoryCommittees/CommitteesMeetingMaterials/FoodAdvisoryCommittee/ucm120646.htm or by
contacting the Designated Federal Officer (see FOR FURTHER INFORMATION
CONTACT). In light of the fact that no change has been made to the
committee name or description of duties, no amendment will be made to
21 CFR 14.100.
    This document is issued under the Federal Advisory Committee Act (5
U.S.C. app.). For general information related to FDA advisory
committees, please visit us at http://www.fda.gov/AdvisoryCommittees/default.htm.

    Dated: December 30, 2015.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2015-33171 Filed 1-4-16; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register Volume 84, Number 28 (Monday, February 11, 2019)]
[Rules and Regulations]
[Pages 3095-3097]
[FR Doc No: 2019-01703]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2018-0236; Airspace Docket No. 18-AGL-8]
RIN 2120-AA66

Amendment of Class D and E Airspace; Eau Claire, WI

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action modifies Class D airspace, Class E airspace
designated as a surface area, and Class E airspace extending upward
from 700 feet above the surface at Chippewa Valley Regional Airport,
Eau Claire, WI. This action is a result of an airspace review caused by
the decommissioning of the Eau Claire non-directional radio beacon
(NDB)/outer compass locator (LOM). The name and geographic coordinates
of Chippewa Valley Regional Airport and the name of May Clinic Health
System-Eau Claire Heliport are also updated to coincide with the FAA's
aeronautical database.

DATES: Effective 0901 UTC, April 25, 2019. The Director of the Federal
Register approves this incorporation by reference action under Title 1
Code of Federal Regulations part 51, subject to the annual revision of
FAA Order 7400.11 and publication of conforming amendments.

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

FOR FURTHER INFORMATION CONTACT: Jeffrey Claypool, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends Class D airspace, Class E airspace designated as a surface
area, and Class E airspace extending upward from 700 feet above the
surface at Chippewa Valley Regional Airport, Eau Claire, WI, to support
instrument flight rule operations at the airport.

History

    The FAA published a notice of proposed rulemaking in the Federal
Register (83 FR 25969; June 5, 2018) for Docket No. FAA-2018-0236 to
amend Class D airspace, Class E airspace designated as a surface area,
and Class E airspace extending upward from 700 feet above the surface
at Chippewa Valley Regional Airport, Eau Claire, WI. Interested parties
were invited to participate in this rulemaking effort by submitting
written comments on the proposal to the FAA. No comments were received.
    Class D and E airspace designations are published in paragraph
5000, 6002, and 6005, respectively, of FAA Order 7400.11C, dated August
13, 2018, and effective September 15, 2018, which is incorporated by
reference in 14 CFR 71.1. The Class E airspace designations listed in
this document will be published subsequently in the Order.

Availability and Summary of Documents for Incorporation by Reference

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

The Rule

    This amendment to Title 14 Code of Federal Regulations (14 CFR)
part 71:
    Amends the Class D airspace at Chippewa Valley Regional Airport,
Eau Claire, WI, by adding an extension 1 mile each side of the 215[deg]
bearing from the airport from the 4.3-mile radius to 4.5 miles south of
the airport; adding an extension 1 mile each side of the 224[deg]
bearing from the Chippewa Valley RGNL: RWY 22 LOC from the 4.3-mile
radius to 4.5 miles south of the airport; removing the name of the city
associated with the airport in the airspace legal description to comply
with a change to FAA Order 7400.2L, Procedures for Handling Airspace
Matters; and amending the part-time language from ``The effective date
and time will thereafter be continuously published in advance by Notice
to Airmen.'' to ``The effective date and time will thereafter be
continuously published in the Chart Supplement.'' in compliance with
FAA Order 7400.2L;
    Amends the Class E airspace designated as a surface area to within
a 4.3-mile radius (reduced from a 4.4-mile radius) of the Chippewa
Valley Regional Airport (formerly Eau Claire County Airport); removes
the Eau Claire County Airport Localizer and the associated extension
from the airspace legal description; adds an extension 1 mile each side
of the 215[deg] bearing from the airport from the 4.3-mile radius to
4.5 miles south of the airport; adds an extension 1 mile each side of
the 224[deg] bearing from the Chippewa Valley RGNL: RWY 22 LOC from the
4.3-mile radius to 4.5 miles south of the airport; changes the status
of the airspace to part-time and adds part-time language to the
airspace legal description; and updates the name and geographic
coordinates of the airport to coincide with the FAA's aeronautical
database; and
    Amends the Class E airspace extending upward from 700 feet above
the surface to within a 6.8-mile radius (increased from a 6.7-mile
radius) at Chippewa Valley Regional Airport; removes the extension to
the southwest of the airport associated with the localizer; amends the
extension north of the airport to within 4 miles (increased from 3.1
miles) each side of the Eau Claire VORTAC 004[deg] radial from the 6.8-
mile radius to 7 miles north of the airport; and updates the geographic
coordinates of Chippewa Valley Regional Airport and the name of Mayo
Clinic Health System-Eau Claire Heliport (formerly Luther Hospital) to
coincide with the FAA's aeronautical database.
    This action is due to an airspace review caused by the
decommissioning of the Eau Claire NDB/LOM.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a regulatory evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that only affects air traffic procedures and air navigation, it is
certified that this rule, when promulgated, does not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.

Environmental Review

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

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

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

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

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

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

Sec.  71.1   [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11C,

Airspace Designations and Reporting Points, dated August 13, 2018, and
effective September 15, 2018, is amended as follows:

Paragraph 5000 Class D Airspace.

* * * * *

AGL WI D Eau Claire, WI [Amended]

Chippewa Valley Regional Airport, WI
    (Lat. 44[deg]51'57'' N, long. 91[deg]29'03'' W)
Chippewa Valley RGNL: RWY 22 LOC
    (Lat. 44[deg]51'31'' N, long. 91[deg]29'37'' W)

    That airspace extending upward from the surface to and including
3,500 feet MSL within a 4.3-mile radius of Chippewa Valley Regional
Airport, and within 1 mile each side of the 215[deg] bearing from
the airport from the 4.3-mile radius to 4.5 miles south of the
airport, and within 1 mile each side of the 224[deg] bearing from
the Chippewa Valley RGNL: RWY 22 LOC from the 4.3-mile radius to 4.5
miles south of the airport. This Class D airspace area is effective
during the specific dates and times established in advance by Notice
to Airmen. The effective date and time will thereafter be
continuously published in the Chart Supplement.

Paragraph 6002 Class E Airspace Areas Designated as Surface Areas.

* * * * *

AGL WI E2 Eau Claire, WI [Amended]

Chippewa Valley Regional Airport, WI
    (Lat. 44[deg]51'57'' N, long. 91[deg]29'03'' W)
Chippewa Valley RGNL: RWY 22 LOC
    (Lat. 44[deg]51'31'' N, long. 91[deg]29'37'' W)

    That airspace extending upward from the surface to and including
3,500 feet MSL within a 4.3-mile radius of the Chippewa Valley
Regional Airport, and within 1 mile each side of the 215[deg]
bearing from the airport from the 4.3-mile radius to 4.5 miles south
of the airport, and within 1 mile each side of the 224[deg] bearing
from the Chippewa Valley RGNL: RWY 22 LOC from the 4.3-mile radius
to 4.5 miles south of the airport. This Class E airspace area is
effective during the specific dates and times established in advance
by Notice to Airmen. The effective date and time will thereafter be
continuously published in the Chart Supplement.

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

* * * * *

AGL WI E5 Eau Claire, WI [Amended]

Chippewa Valley Regional Airport, WI
    (Lat. 44[deg]51'57'' N, long. 091[deg]29'03'' W)
Eau Claire VORTAC
    (Lat. 44[deg]53'52'' N, long. 091[deg]28'43'' W)
Mayo Clinic Health System-Eau Claire Heliport, WI, Point In Space
Coordinates
(Lat. 44[deg]48'24'' N, long. 091[deg]31'51'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.8-mile radius of Chippewa Valley Regional Airport, and
within 4 miles each side of the Eau Claire VORTAC 004[deg] radial
extending from the 6.8-mile radius to 7 miles north of the airport,
and within a 6-mile radius of the point in space serving the Mayo
Clinic Health System-Eau Claire Heliport.

    Issued in Fort Worth, Texas, on February 4, 2019.
John A. Witucki,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2019-01703 Filed 2-8-19; 8:45 am]
BILLING CODE 4910-13-P