[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48878-48879]
[FR Doc No: 2016-17636]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.

Ombudsman Matter Management System, OMB Control No. 3235-XXXX, SEC
File No. 270-797.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'' or ``SEC'') has submitted this new request
for the new collection of information to the Office of Management and
Budget for approval.
    Members of the public who contact the Ombudsman for assistance
currently do so by traditional mail, electronic mail, telephone, and
facsimile. To make

it easier for retail investors and others to contact the Ombudsman
electronically, the Commission is developing the Ombudsman Matter
Management System (``OMMS''), a new, electronic data-collection system
for the receipt, collection, and analysis of inquiries, complaints, and
recommendations from retail investors directed to the SEC Ombudsman and
the Office of the Investor Advocate, and invites comment on OMMS.
Through OMMS, members of the public may request assistance from the
Ombudsman and staff using a web-based form (the ``OMMS Form'') tailored
to gather information about matters within the scope of the Ombudsman's
function and streamline the inquiry and response process.
    The OMMS Form will facilitate communication with the Ombudsman via
an electronic series of basic questions with user-friendly response
features such as radio buttons, drop-down menu responses, pop-up
explanation bubbles, Web page links, fillable narrative text fields,
and document upload options. In addition, the OMMS Form incorporates
functionality that, depending upon certain responses, pre-populates
specific fields, and prompts the user to provide additional
information. By eliciting specific information from the user, the OMMS
Form will facilitate communication between the user and the Ombudsman,
reduce response and resolution times, and maximize Ombudsman staff
resources available for recording, processing, and responding to
matters. The requested information collection is voluntary and will not
change the contact methods currently available.
    The Commission expects that OMMS will be operative and the OMMS
Form publicly available through the Commission's Web site, https://www.sec.gov. The Commission estimates that the total reporting burden
for using the OMMS Form will be 250 hours. The calculation of this
estimate depends on how many members of the public use the form each
year and the estimated time it takes to complete the forms: 500
respondents x 30 minutes = 250 burden hours. The estimates of average
burden hours are made solely for the purposes of the Paperwork
Reduction Act and are not derived from a comprehensive or even
representative survey or study of the cost of Commission rules and
forms. The total estimated one-time cost to the federal government of
creating OMMS and the OMMS Form is $400,000.
    An agency may not conduct or sponsor a collection of information
unless it displays a currently valid control number. No person shall be
subject to any penalty for failing to comply with a collection of
information subject to the PRA that does not display a valid Office of
Management and Budget control number.
    Written comments are invited on all aspects of this proposed
information collection request, in particular: (a) Whether this
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden imposed by the collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology.
    Background documentation for this information collection may be
viewed at the following Web site, www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to
<EMAIL_ADDRESS>and (ii) Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email
to<EMAIL_ADDRESS>Comments must be submitted within 30 days of
this notice.

    Dated: July 21, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17636 Filed 7-25-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: July 27, 2007 (Volume 72, Number 144)]
[Notices]
[Page 41369-41375]
[DOCID:fr27jy07-92]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56117; File No. SR-ISE-2007-47

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Order Granting Accelerated Approval of
Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Adopt
Generic Listing Standards for Index-Linked Securities

July 23, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 26, 2007, the International Securities Exchange, LLC (``ISE''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
On July 17, 2007, the Exchange filed Amendment No. 1 to the proposed
rule change. This order provides notice of the proposed rule change, as
amended, and approves the proposed rule change, as modified by
Amendment No. 1, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to (1) Adopt generic listing standards for
equity index-linked securities (``Equity Index-Linked Securities''),
commodity-linked securities (``Commodity-Linked Securities''), and
currency-linked securities (``Currency-Linked Securities,'' and
together with Equity Index-Linked Securities and Commodity-Linked
Securities, collectively, ``Index-Linked Securities'') under new ISE
Rule 2130, and (2) make conforming changes to ISE Rules 2100 and 2101
in regard to the adoption of the generic listing standards for Index-
Linked Securities. The text of the proposed rule change is available at
the Exchange, the Commission's Public Reference Room, and http://www.ise.com
.

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

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

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

 1. Purpose
    The Exchange proposes to adopt new ISE Rule 2130 (Equity Index-
Linked Securities, Commodity-Linked Securities and Currency-Linked
Securities), which would provide generic listing standards to permit
the trading of Index-Linked Securities on the Exchange pursuant to Rule
19b-4(e) under the Act.\3\ The Exchange seeks to be able to list and/or
trade Index-Linked Securities without individual Commission approval of
each such product pursuant to section 19(b)(2) of the Act.\4\ In
addition, the Exchange proposes to amend ISE Rule 2101(a) to add Index-
Linked Securities to the list of securities that will only trade on the
Exchange pursuant to unlisted trading privileges (``UTP''). Thus, while
the proposal would allow the Exchange to trade Index-Linked Securities
by either listing or trading pursuant to UTP, the Exchange would only
trade Index-Linked Securities pursuant to UTP. In order to trade by
listing such Index-Linked Securities on the Exchange, the Exchange
would first need to seek Commission approval and amend its rules.
Finally, the Exchange proposes to amend ISE Rule 2100(c)(7) to add
Index-Linked Securities to the definition of Equity Securities.
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    \3\ Rule 19b-4(e) provides that the listing and trading of a new
derivative securities product by a self-regulatory organization
(``SRO'') shall not be deemed a proposed rule change if the
Commission has approved the SRO's trading rules, procedures, and
listing standards for the product class that would include the new
derivatives securities product, and the SRO has a surveillance
program for the product class. See 17 CFR 240.19b-4(e)(1).
    \4\ 15 U.S.C. 78s(b)(2).
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    The Exchange represents that any securities it lists and/or trades
pursuant to proposed ISE Rule 2130 will satisfy the standards set forth
therein. The Exchange states that within five business days after
commencement of trading of an Index-Linked Security in reliance on
proposed ISE Rule 2130, the Exchange will file a Form 19b-4(e) with the
Commission.\5\
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    \5\ See 17 CFR 240.19b-4(e)(2)(ii) and 17 CFR 249.820.
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Index-Linked Securities
    Index-Linked Securities are designed for investors who desire to
participate in a specific market segment by providing exposure to one
or more identifiable underlying securities, commodities, currencies,
derivative instruments, or market indexes of the foregoing (the
``Underlying Index'' or ``Underlying Indexes'').\6\ Index-Linked
Securities are the non-convertible debt of an issuer that have a term
of at least one year, but not greater than thirty years, and are tied
to the performance of the Underlying Index.\7\ Index-Linked Securities
may or may not make interest payments based on dividends or other cash
distributions paid on the components comprising the Underlying

Index or Indexes to the holder during their term. Despite the fact that
Index-Linked Securities are linked to an Underlying Index, each will
trade as a single, exchange-listed security.
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    \6\ The Exchange states that the holder of an Index-Linked
Security may or may not be fully exposed to the appreciation and/or
depreciation of the underlying component assets. For example, an
Index-Linked Security may be subject to a ``cap'' on the maximum
principal amount to be repaid to holders or a ``floor'' on the
minimum principal amount to be repaid to holders at maturity.
    \7\ E-mail from Laura Clare, Assistant General Counsel, ISE, to
Edward Cho, Special Counsel, Division of Market Regulation,
Commission, dated July 18, 2007 (confirming the description of
Index-Linked Securities).
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    The Exchange represents that the proposed generic listing standards
will not be applicable to Index-Linked Securities with respect to which
the payment at maturity is based on a multiple of negative performance
of an Underlying Index or Indexes. An Index-Linked Security may or may
not provide ``principal protection,'' i.e., a minimum guaranteed amount
to be repaid.\8\ The Exchange believes that the flexibility to list a
variety of Index-Linked Securities will offer investors the opportunity
to more precisely focus their specific investment strategies.
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    \8\ Some Index-Linked Securities may provide for ``contingent''
protection of the principal amount, whereby the principal protection
may disappear if the Underlying Index at any point in time during
the life of such security reaches a certain predetermined level.
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    Index-Linked Securities do not give the holder any right to receive
a portfolio component, dividend payments, or any other ownership right
or interest in the portfolio or underlying components comprising the
Underlying Index. Pursuant to proposed ISE Rule 2130, the current or
composite value of the Underlying Index will be widely disseminated at
least every 15 seconds during the trading day.

Proposed Listing Criteria for Index-Linked Securities

    The Exchange will apply the following requirements to all issuers
of Index-Linked Securities:
    (A) If the issuer is a company listed on the New York Stock
Exchange, NYSE Arca, Inc., American Stock Exchange LLC, or The NASDAQ
Stock Market LLC, the entity must be a company in good standing (i.e.,
meets the continued listing criteria of such exchange). If not listed,
the issuer must meet the following criteria:
    (i) The issuer shall have assets in excess of $100 million and
stockholders' equity of at least $10 million. In the case of an issuer
which is unable to satisfy the earnings criteria set forth in (ii)
below, the Exchange generally will require the issuer to have the
following: (x) assets in excess of $200 million and stockholders'
equity of at least $10 million; or (y) assets in excess of $100 million
and stockholders' equity of at least $20 million.
    (ii) The issuer's pre-tax income from continuing operations shall
substantially exceed $750,000 in its last fiscal year, or in two of its
last three fiscal years (sovereign issuers will be evaluated on a case-
by-case basis).
    (B) The issuer will be expected to have a minimum tangible net
worth \9\ of $250,000,000. In the alternative, the issuer will be
expected: (i) To have a minimum tangible net worth of $150,000,000; and
(ii) not to have issued Index-Linked Securities, the original issue
price of which, combined with all the issuer's other Index-Linked
Securities listed on a national securities exchange, exceeds 25% of the
issuer's tangible net worth at the time of issuance. If the Index-
Linked Securities are fully and unconditionally guaranteed by an
affiliate of the issuer, the Exchange will rely on such affiliate's
tangible net worth for purposes of these requirements and will include
in its calculation all Index-Linked Securities that are fully and
unconditionally guaranteed by such affiliate.
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    \9\ ``Tangible net worth'' is defined as total assets, less
intangible assets and total liabilities. Intangibles include non-
material benefits such as goodwill, patents, copyrights, and
trademarks.
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    (C) The issuer must be in compliance with Rule 10A-3 under the
Act.\10\
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    \10\ See 17 CFR 240.10A-3 (setting forth the listing standards
relating to audit committees).
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    The Exchange will apply the following requirements to each issue of
Index-Linked Securities:
    (1) The issue must have (a) A minimum public distribution of at
least 1 million units, except if the Index-Linked Securities are traded
in thousand dollar denominations, and (b) at least 400 holders, except
if the Index-Linked Securities are redeemable at the option of the
holders thereof on at least a weekly basis \11\ or the Index-Linked
Securities are traded in thousand dollar denominations;
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    \11\ E-mail from Laura Clare, Assistant General Counsel, ISE, to
Edward Cho, Special Counsel, Division of Market Regulation,
Commission, dated July 18, 2007 (clarifying the exceptions to the
holder distribution requirement).
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    (2) The issue must have a principal amount/aggregate market value
of not less than $4 million;
    (3) The issue must have a term of at least one year, but not
greater than thirty years;
    (4) The issue must be the non-convertible debt of the issuer; and
    (5) The issue must not base its payment at maturity on a multiple
of the negative performance of an Underlying Index or Indexes, although
the payment at maturity may or may not provide for a multiple of the
positive performance of an Underlying Index or Indexes.
    Index-Linked Securities must have at least 400 holders at the time
of listing, except if the Index-Linked Securities are traded in
thousand dollar denominations or the Index-Linked Securities are
redeemable at the option of the holders thereof on at least a weekly
basis. The Exchange believes that a weekly redemption right will ensure
a strong correlation between the market price of the Index-Linked
Securities and the performance of the Underlying Index, as holders will
be unlikely to sell their Index-Linked Securities for less than their
redemption value if they have a weekly right to be redeemed for their
full value. In addition, in the case of Index-Linked Securities with a
weekly redemption feature, the issuer has the ability to issue new
Index-Linked Securities from time to time at the indicative value at
the time of such sale. This provides a ready supply of new Index-Linked
Securities, thereby lessening the possibility that the market price of
such securities will be affected by a scarcity of available Index-
Linked Securities for sale. It also assists in maintaining a strong
correlation between the market price and the indicative value, as
investors will be unlikely to pay more than the indicative value in the
open market if they can acquire Index-Linked Securities from the issuer
at that price.
    The ability to list Index-Linked Securities with these
characteristics without any specific requirements as to the number of
holders is important to the successful listing of such securities.
Issuers issuing these types of Index-Linked Securities generally do not
intend to do so by way of an underwritten offering. Rather, the
distribution arrangement is analogous to that of an exchange traded
fund issuance, in that the issue is launched without any significant
distribution event, and the float increases over time as investors
purchase additional securities from the issuer at the then indicative
value. Investors will generally seek to purchase the securities at a
point when the Underlying Index is at a level that they perceive as
providing an attractive growth opportunity. In the context of such a
distribution arrangement, it is difficult for an issuer to guarantee
its ability to sell to sufficient investors on the listing date to meet
a specific number-of-holders requirement. However, the Exchange
believes that this difficulty in ensuring 400 holders on the listing
date is not indicative of a likely long-term lack of liquidity in
Index-Linked Securities or, for the reasons set forth in the prior
paragraph, of a difficulty in establishing a pricing equilibrium in the
Index-Linked Securities or a successful two-sided market.

Equity Index-Linked Securities Listing Standards
    Equity Index-Linked Securities will be subject to the criteria in
proposed ISE Rule 2130(c) for initial and continued listing. For an
Underlying Index to be appropriate for the initial listing of an Equity
Index-Linked Security, such Underlying Index must be comprised of at
least ten component securities of different issuers. The Underlying
Index must also either (i) be approved for the trading of options or
other derivative securities by the Commission under section 19(b)(2) of
the Act \12\ and rules thereunder, and the conditions set forth in the
Commission's approval order, including comprehensive surveillance
sharing agreements for non-U.S. stocks, continue to be satisfied, or
(ii) meet the following requirements:
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    \12\ 15 U.S.C. 78s(b)(2).
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     Each component security must have a minimum market value
of at least $75 million, except that, for each of the lowest dollar-
weighted component securities in the Underlying Index that in the
aggregate account for no more than 10% of the dollar weight of such
Underlying Index, the market value can be at least $50 million;
     Each component security must have a trading volume in each
of the last six months of not less than 1,000,000 shares, except that
for each of the lowest dollar-weighted component securities in the
Underlying Index that, in the aggregate, account for no more than 10%
of the dollar weight of such Underlying Index, the trading volume shall
be at least 500,000 shares in each of the last six months;
     Underlying Indexes based upon the equal-dollar or modified
equal-dollar weighting methodology must be rebalanced at least
quarterly;
     In the case of a capitalization-weighted or modified
capitalization-weighted Underlying Index, the lesser of the five
highest dollar-weighted component securities in the Underlying Index or
the highest dollar-weighted component securities in the Underlying
Index that, in the aggregate, represent at least 30% of the total
number of component securities in the Underlying Index, each have an
average monthly trading volume of at least 2,000,000 shares over the
previous six months;
     No component security can represent more than 25% of the
dollar weight of the Underlying Index, and the five highest dollar-
weighted component securities in the Underlying Index cannot, in the
aggregate, account for more than 50% of the dollar weight of the
Underlying Index (60% for an Underlying Index consisting of fewer than
25 component securities);
     90% of the Underlying Index's dollar weight and at least
80% of the total number of component securities must meet the then
current criteria for standardized options trading on a national
securities exchange; and
     All component securities must either (A) be securities
(other than foreign country securities and American Depository Receipts
(``ADRs'')) that are issued by a reporting company under the Act that
is listed on a national securities exchange and be an ``NMS stock,'' as
defined in Rule 600 of Regulation NMS,\13\ or (B) be foreign country
securities or ADRs, provided that foreign country securities or foreign
country securities underlying ADRs having their primary trading market
outside the United States on foreign trading markets that are not
members of the Intermarket Surveillance Group (``ISG'') or parties to
comprehensive surveillance sharing agreements with the Exchange cannot,
in the aggregate, represent more than 20% of the dollar weight of the
Underlying Index.
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    \13\ See 17 CFR 242.600(b)(47).
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    The Exchange would commence delisting or removal proceedings of an
Equity Index-Linked Security if any of the standards set forth in the
initial eligibility criteria are not continuously maintained, except
that:
     The criteria that no single component represent more than
25% of the dollar weight of the Underlying Index and the five highest
dollar-weighted components in the Underlying Index cannot represent
more than 50% (or 60% for Underlying Indexes with less than 25
components) of the dollar weight of the Underlying Index, need only be
satisfied for capitalization-weighted, modified capitalization-
weighted, and price-weighted Underlying Indexes as of the first day of
January and July in each year;
     The total number of components in the Underlying Index may
not increase or decrease by more than 33\1/3\% from the number of
components in the Underlying Index at the time of its initial listing,
and in no event may be less than ten components;
     The trading volume of each component security in the
Underlying Index must be at least 500,000 shares for each of the last
six months, except that for each of the lowest dollar-weighted
components in the Underlying Index that, in the aggregate, account for
no more than 10% of the dollar weight of the Underlying Index, trading
volume must be at least 400,000 shares for each of the last six months;
and
     For a capitalization-weighted or modified capitalization-
weighted Underlying Index, the lesser of the five highest dollar-
weighted component securities in the Underlying Index or the highest
dollar-weighted component securities in the Underlying Index that, in
the aggregate, represent at least 30% of the total number of stocks in
the Underlying Index must have an average monthly trading volume of at
least 1,000,000 shares over the previous six months.
    In connection with an Equity Index-Linked Security, the Exchange
will commence delisting or removal proceedings if an Underlying Index
or Indexes fails to satisfy the maintenance standards or conditions for
such Underlying Index or Indexes, as set forth by the Commission in its
order under section 19(b)(2) of the Act \14\ approving the Underlying
Index or Indexes for the trading of options or other derivatives. The
Exchange will also commence delisting or removal proceedings of an
Equity Index-Linked Security under any of the following circumstances:
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    \14\ 15 U.S.C. 78s(b)(2).
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     If the aggregate market value or the principal amount of
the Equity Index-Linked Securities publicly held is less than $400,000;
     If the value of the Underlying Index or composite value of
the Underlying Indexes is no longer calculated and widely disseminated
on at least a 15-second basis during the time the Equity Index-Linked
Securities trade on the Exchange; or
     If such other event occurs or condition exists which, in
the opinion of the Exchange, makes further dealings on the Exchange
inadvisable.
Commodity-Linked Securities Listing Standards
    Commodity-Linked Securities will be subject to the criteria in
proposed ISE Rule 2130(d) for initial and continued listing. An issue
of Commodity-Linked Securities must meet initial listing standards set
forth in either the first or second bullet point below:
     One or more physical commodities or commodity futures,
options or other commodity derivatives, Commodity-Based Trust Shares
(as defined in ISE Rule 2125), or a basket or index of any of the
foregoing (the ``Commodity Reference Asset'') to which the Commodity-
Linked Security is linked shall have been reviewed and approved for the
trading of Commodity-Based Trust Shares, options, or other derivatives
by the Commission under

section 19(b)(2) of the Act \15\ and rules thereunder, and the
conditions set forth in the Commission's approval order, including with
respect to comprehensive surveillance sharing agreements, continue to
be satisfied; or
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    \15\ Id.
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     The pricing information for each component of a Commodity
Reference Asset must be derived from a market which is an ISG member or
affiliate member or with which the Exchange has a comprehensive
surveillance sharing agreement. Notwithstanding the previous sentence,
pricing information for gold and silver may be derived from the London
Bullion Market Association.
    In addition, the issue must meet both of the following initial
listing criteria:
     The value of the Commodity Reference Asset must be
calculated and widely disseminated on at least a 15-second basis during
the time the Commodity-Linked Securities trade on the Exchange; and
     In the case of Commodity-Linked Securities that are
periodically redeemable, the indicative value of the subject Commodity-
Linked Securities must be calculated and widely disseminated by one or
more major market data vendors on at least a 15-second basis during the
time the Commodity-Linked Securities trade on the Exchange.
    The Exchange will commence delisting or removal proceedings if any
of the initial listing criteria described above is not continuously
maintained. Notwithstanding the foregoing, an issue of Commodity-Linked
Securities will not be delisted for a failure to have in place
comprehensive surveillance sharing agreements if the Commodity
Reference Asset has at least ten components, and the Exchange has
comprehensive surveillance sharing agreements with respect to at least
90% of the dollar weight of the Commodity Reference Asset. The Exchange
will also commence delisting or removal proceedings:
     If the aggregate market value or the principal amount of
the Commodity-Linked Securities publicly held is less than $400,000;
     The value of the Commodity Reference Asset is no longer
calculated or available and a new Commodity Reference Asset is
substituted, unless the new Commodity Reference Asset meets the
requirements of proposed ISE Rule 2130; or
     If such other event occurs or condition exists which, in
the opinion of the Exchange, makes further dealings on the Exchange
inadvisable.
Currency-Linked Securities Listing Standards
    Currency-Linked Securities will be subject to the criteria in
proposed ISE Rule 2130(e) for initial and continued listing. An issue
of Currency-Linked Securities must meet the initial listing standards
set forth in either bullet point below:
     One or more currencies, options or currency futures or
other currency derivatives, Currency Trust Shares (as defined in ISE
Rule 2126), or a basket or index of any of the foregoing (the
``Currency Reference Asset'') to which the Currency-Linked Security is
linked shall have been reviewed and approved for the trading of
Currency Trust Shares, options, or other derivatives by the Commission
under section 19(b)(2) of the Act \16\ and rules thereunder, and the
conditions set forth in the Commission's approval order, including with
respect to comprehensive surveillance sharing agreements, continue to
be satisfied; or
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    \16\ Id.
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     The pricing information for each component of a Currency
Reference Asset must be (a) the generally accepted spot price for the
currency exchange rate in question or (y) derived from a market which
is an ISG member or affiliate member or with which the Exchange has in
place a comprehensive surveillance sharing agreement and is the pricing
source for components of a Currency Reference Asset that has previously
been approved by the Commission.
    In addition, the issue must meet both of the following initial
listing criteria:
     The value of the Currency Reference Asset must be
calculated and widely disseminated on at least a 15-second basis during
the time the Currency-Linked Securities trade on the Exchange; and
     In the case of Currency-Linked Securities that are
periodically redeemable, the indicative value of the subject Currency-
Linked Securities must be calculated and widely disseminated by one or
more major market data vendors on at least a 15-second basis during the
time the Currency-Linked Securities trade on the Exchange.
    The Exchange will commence delisting or removal proceedings if any
of the initial listing criteria described above is not continuously
maintained. Notwithstanding the forgoing, an issue of Currency-Linked
Securities will not be delisted for a failure to have in place
comprehensive surveillance sharing agreements if the Currency Reference
Asset has at least ten components, and the Exchange has comprehensive
surveillance sharing agreements with respect to at least 90% of the
dollar weight of the Currency Reference Asset. The Exchange will also
commence delisting or removal proceedings under any of the following
circumstances:
     If the aggregate market value or the principal amount of
the Currency-Linked Securities publicly held is less than $400,000;
     If the value of the Currency Reference Asset is no longer
calculated or available and a new Currency Reference Asset is
substituted, unless the new Currency Reference Asset meets the
requirements of proposed ISE Rule 2130; or
     If such other event occurs or condition exists which, in
the opinion of the Exchange, makes further dealings on the Exchange
inadvisable.
Exchange Rules Applicable to Index-Linked Securities
    Index-Linked Securities traded on the Exchange will be subject to
all Exchange rules governing the trading of equity securities.
Accordingly, the Exchange proposes to amend the definition of ``Equity
Security'' to include Index-Linked Securities.\17\ The Exchange's
equity margin rules and the Exchange's regular trading hours (from 9
a.m. to 4 p.m. Eastern Time) will apply to transactions in Index-Linked
Securities.
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    \17\ See ISE Rule 2100(c)(7).
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Regulatory Information Circular
    Upon evaluating the nature and complexity of each Index-Linked
Security, the Exchange represents that it will prepare and distribute,
if appropriate, a Regulatory Information Circular to Electronic Access
Members (``EAMs'') describing the product. Accordingly, the particular
structure of, and the corresponding risks transacting in, an Index-
Linked Security will be highlighted and disclosed. In particular, the
Regulatory Information Circular will set forth the Exchange's
suitability rule that requires EAMs recommending a transaction in
Index-Linked Securities (1) To determine that such transaction is
suitable for the customer (ISE Rule 610), and (2) to have a reasonable
basis for believing that the customer can evaluate the special
characteristics, and is able to bear the financial risks, of such
transaction. In addition, the Regulatory Information Circular will
reference the requirement that EAMs must deliver a prospectus to
investors purchasing newly issued Index-Linked Securities prior to or
concurrently with the confirmation of a transaction.

Surveillance
    The Exchange will closely monitor activity in Index-Linked
Securities to identify and deter any potential improper trading
activity in such securities. Additionally, the Exchange represents that
its surveillance procedures are adequate to properly monitor the
trading of Index-Linked Securities. Specifically, the Exchange will
rely on its existing surveillance procedures governing equities,
options, and exchange-traded funds. The Exchange has developed
procedures to closely monitor activity in Index-Linked Securities and
the Underlying Indexes and their components to identify and deter
potential improper trading activity. To the extent applicable, the
Exchange will be able to obtain trading and beneficial holder
information from the primary trading markets for the components of the
Underlying Indexes in relation to Index-Linked Securities, either
pursuant to bilateral information sharing agreements with those markets
or because those markets are full or affiliate members of ISG.
Firewall Procedures
    If the Underlying Index is maintained by a broker-dealer, the
broker-dealer shall erect a ``firewall'' around the personnel
responsible for the maintenance of the Underlying Index or who have
access to information concerning changes and adjustments to the
Underlying Index, and the Underlying Index shall be calculated by a
third party who is not a broker-dealer. Any advisory committee,
supervisory board, or similar entity that advises an Underlying Index
licensor or administrator or that makes decisions regarding the
Underlying Index or portfolio composition, methodology, and related
matters must implement and maintain, or be subject to, procedures
designed to prevent the use and dissemination of material, non-public
information regarding the applicable Underlying Index or portfolio.
Trading Halts
    In the case of Commodity- or Currency-Linked Securities, if the
indicative value or the Commodity Reference Asset value or Currency
Reference Asset value, as the case may be, applicable to a series of
securities is not being disseminated as required, or, in the case of
Equity Index-Linked Securities, if the value of the Underlying Index is
not being disseminated as required, the Exchange may halt trading
during the day on which such interruption first occurs. If such
interruption persists past the trading day in which it occurred, the
Exchange will halt trading no later than the beginning of the trading
day following the interruption. With respect to Index-Linked Securities
admitted to dealings by the Exchange pursuant to UTP, the Exchange will
halt trading in accordance with proposed ISE Rule 2101(a), if such
Index-Linked Security is no longer listed or trading on the primary
listing market.
2. Statutory Basis
    The proposal is consistent with section 6(b) of the Act,\18\ in
general, and section 6(b)(5) of the Act,\19\ in particular, in that it
is designed to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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.
---------------------------------------------------------------------------

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

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

    The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purpose of the Act.

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

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

III. Solicitation of Comments

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

Electronic Comments

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

File Number SR-ISE-2007-47 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE-2007-47. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal offices of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2007-47 and should be
submitted on or before August 17, 2007.

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

    After careful consideration, the Commission finds that the proposed
rule change, as amended, is consistent with the requirements of the Act
and the rules and regulations thereunder applicable to a national
securities exchange.\20\ In particular, the Commission finds that the
proposed rule change is consistent with the requirements of section
6(b)(5) of the Act,\21\ which requires, among other things, that the
Exchange's rules be designed to promote just and equitable principles
of trade, to foster cooperation and coordination with persons engaged
in regulating, clearing, settling, processing information with respect
to, and 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.
---------------------------------------------------------------------------

    \20\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Generic Listing Standards for Index-Linked Securities
    To list and/or trade any issue of Index-Linked Securities, the
Exchange currently must file a proposed rule change with the Commission
pursuant to section 19(b)(1) of the Act \22\ and Rule 19b-4
thereunder.\23\ However, Rule 19b-4(e) under the Act \24\ provides that
the listing and trading of a new derivative securities product by an
SRO will not be deemed a proposed rule change pursuant to Rule 19b-
4(c)(1) under the Act \25\ if the Commission has approved, pursuant to
section 19(b) of the Act, the SRO's trading rules, procedures, and
listing standards for the product class that would include the new
derivative securities product, and the SRO has a surveillance program
for the product class. The Exchange's proposed rules for the listing
and/or trading of Index-Linked Securities pursuant to Rule 19b-4(e)
fulfill these requirements. The Exchange's ability to rely on Rule 19b-
4(e) to list and/or trade Index-Linked Securities that meet the
requirements of proposed ISE Rule 2130 should reduce the timeframe for
bringing these securities to the market and thereby reduce the burdens
on issuers and other market participants, while also promoting
competition and making such securities available to investors more
quickly.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78s(b)(1).
    \23\ 17 CFR 240.19b-4.
    \24\ 17 CFR 240.19b-4(e).
    \25\ 17 CFR 240.19b-4(c)(1).
---------------------------------------------------------------------------

    The Commission has previously approved generic listing standards
that are substantially similar to ISE's proposal.\26\ The Commission
believes that the proposed generic listing standards for Index-Linked
Securities should fulfill the intended objective of Rule 19b-4(e) and
allow securities that satisfy the proposed generic listing standards to
commence trading without the need for public comment and Commission
approval.\27\
---------------------------------------------------------------------------

    \26\ See Securities Exchange Act Release Nos. 55794 (May 22,
2007), 72 FR 29558 (May 29, 2007) (SR-Amex-2007-45) (amending the
generic listing standards for Index-Linked Securities and approving
generic listing standards for Commodity- and Currency-Linked
Securities); and 55687 (May 1, 2007), 72 FR 25824 (May 7, 2007) (SR-
NYSE-2007-27) (approving generic listing standards for Equity Index-
Linked Securities, Commodity-Linked Securities, and Currency-Linked
Securities).
    \27\ The Commission notes that the failure of a particular
product or index to comply with the proposed generic listing
standards under Rule 19b-4(e), however, would not preclude the
Exchange from submitting a separate filing pursuant to Section
19(b)(2), requesting Commission approval to list and trade a
particular equity-, commodity-, or currency-linked product. The
Commission further notes that securities that satisfy ISE's proposed
generic listing standards for Index-Linked Securities would only be
traded on the Exchange pursuant to UTP, pursuant to proposed ISE
Rule 2101(a), and that the Exchange would be required to submit a
separate filing pursuant to Section 19(b)(2) requesting Commission
approval if the Exchange seeks to trade such securities by listing
them. See ISE Rule 2101(a).
---------------------------------------------------------------------------

Listing and Trading Index-Linked Securities
    Taken together, the Commission finds that ISE's proposal contains
adequate rules and procedures to govern the listing and trading of
Index-Linked Securities pursuant to Rule 19b-4(e) on the Exchange. All
such securities listed and/or traded under their respective generic
standards will be subject to the full panoply of ISE rules and
procedures that currently govern the trading of equity securities on
the Exchange.
    As set forth more fully above, ISE has proposed size, earnings, and
minimum tangible net worth requirements for each issuer, as well as
minimum public distribution and shareholder, principal amount/aggregate
market value, and minimum term thresholds for each issuance of Index-
Linked Securities.\28\ In addition, the Exchange's proposal requires
that the assets (or their derivatives) underlying such securities must
either have (1) Been reviewed and approved for trading by the
Commission, or (2) in the case of Equity Index-Linked Securities, such
underlying assets or their derivatives have sufficient market value and
trading volume and not constitute an unreasonable percentage of the
overall dollar weight of the Underlying Index, or, in the case of
Commodity- and Currency-Linked Securities, their pricing information be
reliable or derived from certain required sources. These requirements
are designed to ensure that the trading markets for the underlying
components are adequately capitalized and sufficiently liquid. The
Commission believes that these requirements should minimize the
potential for manipulation.
---------------------------------------------------------------------------

    \28\ The Commission notes that ISE's proposed initial
requirements for all issuers and issuances of Index-Linked
Securities are substantially similar to those adopted by other
exchanges. See supra note 26.
---------------------------------------------------------------------------

    The Commission also finds that (1) In the case of Equity Index-
Linked Securities, the requirement that all component securities must
either be securities issued by a reporting company under the Act that
is listed on a national securities exchange and be an NMS stock (as
defined in Rule 600 of Regulation NMS) \29\ or be foreign country
securities or ADRs, so long as such foreign country securities or
foreign country securities underlying the ADRs that are primarily
traded on foreign markets, which are not ISG members or parties to
comprehensive surveillance sharing agreements, do not in the aggregate
represent more than 20% of the dollar weight of the Underlying Index,
and (2) in the case of Commodity-Linked and Currency-Linked Securities
with at least ten components, the requirement that at least 90% of the
dollar weight of the corresponding Commodity Reference Asset or
Currency Reference Asset, as the case may be, must have comprehensive
surveillance sharing agreements with the Exchange, in each case, should
aid the Exchange in identifying potential trading and other violations
of its rules. The Commission believes that such a requirement will
contribute to the transparency of the applicable Underlying Index. The
Commission also notes that, by requiring pricing information for the
relevant components to be readily available, the proposed listing
standards of ISE Rule 2130 should help ensure a fair and orderly market
for Index-Linked Securities listed and/or traded pursuant to Rule 19b-
4(e).
---------------------------------------------------------------------------

    \29\ See 17 CFR 242.600(b)(47).
---------------------------------------------------------------------------

    The Exchange has also developed delisting criteria that will permit
it to suspend trading of Index-Linked Securities in circumstances that
make further dealings in such products inadvisable. The Commission
believes that the delisting criteria should help ensure that a minimum
level of liquidity exists for each such security to allow for the
maintenance of fair and orderly markets. Also, in the event that the
value of the Underlying Index for Index-Linked Securities (or, for
Commodity-Linked and Currency-Linked Securities that are periodically
redeemable, the corresponding indicative value) is no longer calculated
and widely disseminated on at least a 15-second basis, the Exchange may
halt trading during the day on which the interruption first occurs;
however, if the interruption persists past the trading day on which it
occurred, the Exchange will halt trading no later than the beginning of
the trading day following the interruption and will commence delisting
proceedings. The Commission also notes that, because Index-Linked
Securities would only be traded on the Exchange pursuant to UTP under
proposed ISE Rule 2101(a), the Exchange would halt the trading of such
securities if such Index-Linked

Securities are no longer listed or trading on the original listing
market.
Surveillance
    The Commission notes that any Index-Linked Securities approved for
listing and/or trading would be subject to the Exchange's existing
surveillance procedures governing equities, options, and exchange-
traded funds, as well as procedures the Exchange represents it has
developed to closely monitor activity in such securities and the
Underlying Indexes and/or portfolios. The Exchange also has represented
that its surveillance procedures are adequate to properly monitor the
trading of Index-Linked Securities listed pursuant to the proposed
generic listing standards and that it will be able to obtain necessary
trading and beneficial holder information from the primary trading
markets for the underlying components, either pursuant to bilateral
information sharing agreements with those markets or because those
markets are full or affiliate members of ISG.
Regulatory Information Circular
    The Exchange has represented that it will distribute, as
appropriate, a Regulatory Information Circular to EAMs describing the
product, the specific structure of the product, and the corresponding
risks of transacting in Index-Linked Securities. In addition, the
Regulatory Information Circular will set forth the Exchange's
suitability requirements with respect to recommendations in
transactions in Index-Linked Securities to customers and the prospectus
delivery requirements.
Firewall Procedures
    The Exchange has further represented that if the Underlying Index
is maintained by a broker-dealer, such broker-dealer will establish a
``firewall'' around personnel responsible for the maintenance of such
Underlying Index or who have access to information concerning changes
and adjustments to the Underlying Index. As an added measure, a third-
party who is not a broker-dealer will be required to calculate the
value of the Underlying Index. In addition, the Exchange has stated
that any advisory committee, supervisory board, or similar entity that
advises an Underlying Index licensor or administrator or that makes
decisions regarding the Underlying Index or portfolio composition,
methodology, and related matters must implement and maintain, or be
subject to, procedures designed to prevent the use and dissemination of
material, non-public information regarding the applicable Underlying
Index or portfolio.
Acceleration
    The Commission finds good cause for approving the proposed rule
change, as modified by Amendment No. 1 thereto, before the 30th day
after the date of publication of notice of filing thereof in the
Federal Register. The Exchange requested accelerated approval of the
proposal to facilitate the prompt trading of Index-Linked Securities
pursuant to UTP based on the specified criteria of proposed ISE Rules
2100, 2101, and 2130. The Commission notes that the Exchange's proposed
generic listing standards for Index-Linked Securities are substantially
based on previously approved listing standards for such securities \30\
and presently is not aware of any regulatory issue that should cause it
to revisit that finding or would preclude the trading of such
securities on the Exchange. Therefore, accelerating approval of this
proposal should benefit investors by creating, without undue delay,
additional competition in the market for Index-Linked Securities,
subject to the standards and representations discussed herein.
Therefore, the Commission finds good cause, consistent with section
19(b)(2) of the Act,\31\ to approve the proposed rule change on an
accelerated basis.
---------------------------------------------------------------------------

    \30\ See supra note 26.
    \31\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\32\ that the proposed rule change (SR-ISE-2007-47), as modified by
Amendment No. 1 thereto, be, and it hereby is, approved on an
accelerated basis.
---------------------------------------------------------------------------

    \32\ Id.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\33\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14502 Filed 7-26-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 87, Number 63 (Friday, April 1, 2022)]
[Proposed Rules]
[Pages 19026-19029]
[FR Doc No: 2022-06771]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-0155; Project Identifier MCAI-2021-00585-T]
RIN 2120-AA64

Airworthiness Directives; MHI RJ Aviation ULC (Type Certificate
Previously Held by Bombardier, Inc.) Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain MHI RJ Aviation ULC Model CL-600-2B19 (Regional Jet Series
100 & 440) airplanes; Model CL-600-2C10 (Regional Jet Series 700, 701 &
702) airplanes; Model CL-600-2C11 (Regional Jet Series 550) airplanes;
Model CL-600-2D15 (Regional Jet Series 705) airplanes; Model CL-600-
2D24 (Regional Jet Series 900) airplanes; and Model CL-600-2E25
(Regional Jet Series 1000) airplanes. This proposed AD was prompted by
reports of displayed headings changing from MAG to TRU with no pilot
action, which may result in misleading heading information on both
primary function displays (PFDs) and multi-function displays (MFDs),
and misleading course information on flight management systems (FMS).
This proposed AD would require amending the existing airplane flight
manual (AFM) to provide the flightcrew with updated procedures for
accurate heading and course information. The FAA is proposing this AD
to address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by May 16,
2022.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact MHI RJ
Aviation ULC, 12655 Henri-Fabre Blvd., Mirabel, Qu[eacute]bec J7N 1E1
Canada; Widebody Customer Response Center North America toll-free
telephone +1-844-272-2720 or direct-dial telephone +1-514-855-8500; fax
+1-514-855-8501; email [email protected]; internet https://mhirj.com.
You may view this service information at the FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St., Des
Moines, WA. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2022-0155; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this NPRM, any comments
received, and other information. The street address for Docket
Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Thomas Niczky, Aerospace Engineer,
Avionics and Electrical Systems Section, FAA, New York ACO Branch, 1600
Stewart Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>;
email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2022-0155; Project Identifier
MCAI-2021-00585-T'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
the proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this NPRM.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to
Thomas Niczky, Aerospace Engineer, Avionics and Electrical Systems
Section, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; email [email protected]. Any commentary that the FAA receives which is not
specifically designated as CBI will be placed in the public docket for
this rulemaking.

Background

    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued TCCA AD CF-2021-19, issued May 13,
2021 (TCCA AD CF-2021-19) (also referred to after this as the Mandatory
Continuing Airworthiness Information, or the MCAI), to correct an
unsafe condition for certain MHI RJ Aviation ULC Model CL-600-2B19
(Regional Jet Series 100 & 440) airplanes; Model CL-600-2C10 (Regional
Jet Series 700, 701 & 702) airplanes; Model CL-600-2C11 (Regional Jet
Series 550) airplanes; Model CL-600-2D15 (Regional Jet Series 705)
airplanes; Model CL-600-2D24 (Regional Jet Series 900) airplanes; and
Model CL-600-2E25 (Regional Jet Series 1000) airplanes. You may examine
the MCAI in the AD docket at https://www.regulations.gov by searching
for and locating Docket No. FAA-2022-0155.
    This proposed AD was prompted by reports of displayed headings
changing from MAG to TRU with no pilot action, which may result in
misleading heading information on both PFDs and MFDs, and misleading
course information on FMS. This misleading information may occur on
airplanes with certain inertial reference systems (IRSs); the IRS is
part of the navigation system and provides data on the airplane's
position. The FAA is proposing this AD to prevent operation outside the
terrain and obstacle protection provided in instrument procedure and
route designs, which could result in reduced operational safety
margins. See the MCAI for additional background information.

Related Service Information Under 1 CFR Part 51

    MHI RJ Aviation ULC has issued the following service information,
which provides a procedure for revising, among other procedures, the
``Uncommanded True Heading Indication.''
     Section 05-15--Instrument Systems, of Chapter 5, ABNORMAL
PROCEDURES, of MHI RJ Model CL-600-2B19 AFM, CSP A-012, Volume 1,
Revision 74, dated July 3, 2020.
    Bombardier has issued the following service information, which
provides a procedure for revising, among other procedures, the
``Uncommanded True Heading Indication.'' These documents are distinct
since they apply to different airplane models.
     Section 05-15--Instrument Systems, of Chapter 5, ABNORMAL
PROCEDURES, of Bombardier CRJ Series Regional Jet Model CL-600-2C10
(Series 700, 701, 702) and CL-600-2C11 (Series 550) AFM, CSP B-012,
Revision 30, dated February 28, 2020.
     Section 05-15--Instrument Systems, of Chapter 5, ABNORMAL
PROCEDURES, of Bombardier CRJ Series Regional Jet Model CL-600-2D24
(Series 900) and Model CL-600-2D15 (Series 705) AFM, CSP C-012,
Revision 24, dated March 27, 2020.
     Section 05-15--Instrument Systems, of Chapter 5, ABNORMAL
PROCEDURES, of Bombardier CRJ Series Regional Jet Model CL-600-2E25
(Series 1000) AFM, CSP D-012, Revision 23, dated February 14, 2020.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

FAA's Determination

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

Proposed AD Requirements in This NPRM

    This proposed AD would require accomplishing the actions specified
in the service information already described.
    TCCA AD CF-2021-19 requires operators to ``advise all flight
crews'' of revisions to the AFM, and thereafter to ``operate the
aircraft accordingly.'' However, this proposed AD would not
specifically require those actions as those actions are already
required by FAA regulations. FAA regulations require operators furnish
to pilots any changes to the AFM (for example, 14 CFR 121.137), and to
ensure the pilots are familiar with the AFM (for example, 14 CFR
91.505). As with any other flightcrew training requirement, training on
the updated AFM content is tracked by the operators and recorded in
each pilot's training record, which is available for the FAA to review.
FAA regulations also require pilots to follow the procedures in the
existing AFM including all updates. 14 CFR 91.9 requires that any
person operating a civil aircraft must comply with the operating
limitations specified in the AFM. Therefore, including a requirement in
this proposed AD to operate the airplane according to the revised AFM
would be redundant and unnecessary.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 1,113 airplanes of U.S. registry. The FAA estimates the
following costs to comply with this proposed AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
                          Labor cost                              Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
1 work-hour x $85 per hour = $85.............................              $0              $85          $94,605
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

MHI RJ Aviation ULC (Type Certificate Previously Held by Bombardier,
Inc.): Docket No. FAA-2022-0155; Project Identifier MCAI-2021-00585-
T.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by May 16, 2022.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to MHI RJ Aviation ULC (type certificate
previously held by Bombardier, Inc.) airplanes, certificated in any
category, as identified in paragraphs (c)(1) through (3) of this AD.
    (1) Model CL-600-2B19 (Regional Jet Series 100 & 440) airplanes
equipped with inertial reference system (IRS) part number (P/N)
465020-0400-0400,<PHONE_NUMBER>-0401,<PHONE_NUMBER>-0402, or 465020-
0400-0403.
    (2) Model CL-600-2C10 (Regional Jet Series 700, 701 & 702)
airplanes, Model CL-600-2C11 (Regional Jet Series 550) airplanes,
Model CL-600-2D15 (Regional Jet Series 705) airplanes, and Model CL-
600-2D24 (Regional Jet Series 900) airplanes, equipped with IRS P/N
465020-0400-0401,<PHONE_NUMBER>-0402 or<PHONE_NUMBER>-0403.
    (3) Model CL-600-2E25 (Regional Jet Series 1000) airplanes,
equipped with IRS P/N<PHONE_NUMBER>-0402 or<PHONE_NUMBER>-0403.

(d) Subject

    Air Transport Association (ATA) of America Code 34; Navigation
System.

(e) Unsafe Condition

    This AD was prompted by reports of displayed headings changing
from MAG to TRU with no pilot action, which may result in misleading
heading information on both primary function displays (PFDs) and
multi-function displays (MFDs), and misleading

course information on flight management systems (FMSs). The FAA is
issuing this AD to prevent operation outside the terrain and
obstacle protection provided in instrument procedure and route
designs, which could result in reduced operational safety margins.

(f) Compliance

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

(g) Amend Existing Airplane Flight Manual (AFM)

    Within 30 days after the effective date of this AD: Revise the
existing AFM to incorporate the information specified in Section 05-
15--Instrument Systems, of Chapter 5, ABNORMAL PROCEDURES, of the
applicable AFM identified in Figure 1 to paragraph (g) of this AD.
[GRAPHIC] [TIFF OMITTED] TP01AP22.003

(h) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO Branch, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. In
accordance with 14 CFR 39.19, send your request to your principal
inspector or local Flight Standards District Office, as appropriate.
If sending information directly to the manager of the certification
office, send it to ATTN: Program Manager, Continuing Operational
Safety, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>. Before using any
approved AMOC, notify your appropriate principal inspector, or
lacking a principal inspector, the manager of the local flight
standards district office/certificate holding district office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or MHI RJ
Aviation ULC's TCCA Design Approval Organization (DAO). If approved
by the DAO, the approval must include the DAO-authorized signature.

(i) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) TCCA AD CF-2021-19, issued May 13, 2021, for related
information. This MCAI may be found in the AD docket on the internet
at https://www.regulations.gov by searching for and locating Docket
No. FAA-2022-0155.
    (2) For more information about this AD, contact Thomas Niczky,
Aerospace Engineer, Avionics and Electrical Systems Section, FAA,
New York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY
11590; telephone<PHONE_NUMBER>; email [email protected].
    (3) For service information identified in this AD, contact MHI
RJ Aviation ULC, 12655 Henri-Fabre Blvd., Mirabel, Qu[eacute]bec J7N
1E1 Canada; Widebody Customer Response Center North America toll-
free telephone +1-844-272-2720 or direct-dial telephone +1-514-855-
8500; fax +1-514-855-8501; email [email protected]; internet https://mhirj.com. You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>.

    Issued on March 25, 2022.
Ross Landes,
Deputy Director for Regulatory Operations, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2022-06771 Filed 3-31-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 46 (Friday, March 8, 2013)]
[Notices]
[Pages 15065-15067]
[FR Doc No: 2013-05415]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69029; File No. SR-NSX-2013-08]

Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Fee and Rebate Schedule

March 4, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act '' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on February 26, 2013, National Stock
Exchange, Inc. (``NSX[supreg]'' or ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change, as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comment on the proposed rule change from
interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange is proposing to amend its Fee and Rebate Schedule (the
``Fee Schedule'') issued pursuant to Exchange Rule 16.1(a) to charge
Equity Trading Permit (``ETP'') Holders \3\ $0.0020 per share when
using a Midpoint-Seeker Order \4\ in the Exchange's automatic execution
mode of interaction (``Auto-Ex Mode'') \5\ to remove liquidity in a
security that is priced at or above $1.00.
---------------------------------------------------------------------------

    \3\ Exchange Rule 1.5 defines the term ``ETP'' as an Equity
Trading Permit issued by the Exchange for effecting approved
securities transactions on the Exchange's Trading Facilities.
    \4\ NSX Rule 11.11(c)(13). See also SR-NSX-2013-07.
    \5\ Under Auto-Ex mode the Exchange matches and executes like-
priced orders in accordance with the process described in Exchange
Rule 11.13(b)(1).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
Web site at www.nsx.com, at the Exchange's principal office, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Section I of its Fee Schedule to
charge ETP Holders $0.0020 per share when using a Midpoint-Seeker Order
in the Exchange's Auto-Ex Mode to remove liquidity in a security that
is priced at or above $1.00. The Midpoint Seeker Order is an Immediate-
or-Cancel (``IOC'') \6\ order that ETP Holders may use to execute
against orders that are posted on the NSX Book \7\ at a price equal to
or better than the midpoint of

the Protected National Best Bid or Offer (``NBBO'').\8\
---------------------------------------------------------------------------

    \6\ Under Exchange Rule 11.11(b)(1), an ``Immediate-or-Cancel
Order'' is a ``limit order that is to be executed in whole or in
part as soon as such order is received, and the portion not so
executed'' is to be cancelled.
    \7\ Exchange Rule 1.5. ``NSX Book'' is defined as ``System's
electronic file of orders.''
    \8\ Exchange Rule 1.5. ``Protected NBBO'' is defined as ``the
national best bid or offer that is a protected quotation.''
---------------------------------------------------------------------------

    Under Section I of the Fee Schedule, the Exchange currently charges
ETP Holders that do not execute at least 50,000 shares of added
liquidity in a month using the Exchange's Auto-Ex Mode a per share fee
of $0.0030 for any marketable order that removes liquidity. ETP Holders
that execute more than 50,000 shares of added liquidity per month in
Auto-Ex Mode are eligible for fees and rebates under either the
Variable or Fixed Fee Schedules under Section I. Instead of paying the
above described fees when removing liquidity in Auto-Ex Mode, ETP
Holders will now pay the proposed lower fixed fee of $0.0020 per share
when using the Midpoint-Seeker Order to remove liquidity in securities
priced at or above $1.00.\9\ The Exchange believes the proposed fee
will encourage (i) ETP Holders that want to interact with Midpoint-
Seeker Orders to post additional liquidity on the NSX Book, and (ii)
ETP Holders that are seeking executions at prices better than the
Protected NBBO to use the Midpoint-Seeker Order. The Exchange does not
propose to amend the fee for securities priced below $1.00.
---------------------------------------------------------------------------

    \9\ Executed Midpoint-Seeker Orders will be included in the ADV
calculation but not be subject to additional fees under Section I of
the Fee Schedule.
---------------------------------------------------------------------------

Operative Date and Notice

    The Exchange intends to make the proposed modifications, which are
effective upon filing, operative as of the commencement of trading on
March 1, 2013. Pursuant to Exchange Rule 16.1(c), the Exchange will
``provide ETP Holders with notice of all relevant dues, fees,
assessments and charges of the Exchange'' through the issuance of an
Information Circular and will post a copy of the rule filing on the
Exchange's Web site (www.nsx.com).
2. Statutory Basis
    The Exchange believes that the proposed fixed fee for Midpoint-
Seeker Orders that remove liquidity is consistent with the provisions
of Section 6(b) of the Act,\10\ in general, and Section 6(b)(4) of the
Act,\11\ in particular, in that it is reasonable and equitably
allocated amongst ETP Holders because all ETP Holders are eligible to
submit (or not submit) these types of orders, and may do so at their
discretion during the course of the month. The lower per share fee for
the Midpoint-Seeker Order is a reasonable method to encourage (i) ETP
Holders that want to interact with Midpoint-Seeker Orders to post
additional liquidity on the NSX Book, and (ii) ETP Holders that are
seeking executions at prices better than the Protected NBBO to use the
Midpoint-Seeker Order. The increased liquidity provided by additional
order flow to the Exchange benefits all investors by offering
additional potential for execution and cost savings. Furthermore, the
Exchange believes that the proposed lower fee for Midpoint Seeker
Orders is consistent with the provisions of Section 6(b)(5) of the
Act,\12\ because it is not unfairly discriminatory amongst ETP Holders.
As stated above, ETP Holders are eligible to submit (or not submit)
these types of orders, and may do so at their discretion during the
course of the month.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues. In such an environment, the Exchange must continually
review, and consider adjusting, its fees and rebates to remain
competitive with other exchanges. For the reasons described above, the
Exchange believes that the proposed rule change reflects this
competitive environment.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. ETP Holders using the
Midpoint-Seeker Order will be charged a lower per share fee for
removing liquidity rather than being charged the Exchange's standard
fees under Section I of the Fee Schedule. The lower per share fee is
designed to increase liquidity by encouraging ETP Holders to use
Midpoint Seeker Orders. As stated above, the Exchange operates in a
highly competitive market in which market participants can readily
favor competing venues. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and rebates to
remain competitive with other exchanges.

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

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

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

    The proposed rule change has taken effect upon filing pursuant to
Section 19(b)(3)(A)(ii) of the Exchange Act \13\ and subparagraph
(f)(2) of Rule 19b-4.\14\ At any time within 60 days of the filing of
such proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     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-NSX-2013-08 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSX-2013-08. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the

Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room on official business days between the hours of 10:00
a.m. and 3:00 p.m. Copies of such filing also will be available for
inspection and copying at the principal offices of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NSX-2013-08, and should be
submitted on or before March 29, 2013.

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

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-05415 Filed 3-7-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 245 (Friday, December 21, 2018)]
[Rules and Regulations]
[Pages 65485-65486]
[FR Doc No: 2018-27566]

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

Federal Aviation Administration

14 CFR Part 21

Docket No. FAA-2018-0860]

Primary Category Airworthiness Design Standards; Vertical
Aviation Technologies (VAT) Model S-52L Rotorcraft

AGENCY: Federal Aviation Administration, DOT.

ACTION: Issuance of final airworthiness design standards.

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

SUMMARY: These airworthiness design standards are issued to Vertical
Aviation Technologies (VAT) for certification of the Model S-52L
rotorcraft under the regulations for primary category aircraft.

DATES: These airworthiness design standards are effective January 22,
2019.

FOR FURTHER INFORMATION CONTACT: Michael Hughlett, Aviation Safety
Engineer, Rotorcraft Standards Branch, Policy and Innovation Division,
FAA, 10101 Hillwood Pkwy., Fort Worth, Texas 76177; telephone (817)
222-5110; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Any person may obtain a copy of this
information by contacting the person named above under FOR FURTHER
INFORMATION CONTACT.

Background

    The primary category for aircraft was created specifically for the
simple, low performance personal aircraft. Section 21.17(f) provides a
means for applicants to propose airworthiness standards for their
particular primary category aircraft. The FAA procedure establishing
appropriate airworthiness standards includes reviewing and possibly
revising the applicants' proposal, publication of the submittal in the
Federal Register for public review and comment, and addressing the
comments. After all necessary revisions, the standards are published as
approved FAA airworthiness standards.

Comments

    Proposed Primary Category Airworthiness Design Standards; Vertical
Aviation Technologies (VAT) Model S-52L rotorcraft was published in the
Federal Register on September 26, 2018 (83 FR 48574). No comments were
received, and the airworthiness design standards are adopted as
proposed.

Applicability

    These airworthiness design standards under the primary category
rule are applicable to the VAT Model S-52L rotorcraft. Should VAT wish
to apply these airworthiness design standards to other rotorcraft
models, VAT must submit a new airworthiness design standard application
under the primary rule category.

Conclusion

    This action affects only certain airworthiness design standards on
the VAT Model S-52L rotorcraft. It is not a standard of general
applicability and it affects only the applicant who applied to the FAA
for approval of these features on the rotorcraft.

Citation

    The authority citation for these airworthiness standards is as
follows:

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

Final Airworthiness Standards for Acceptance Under the Primary Category

    CAR 13 effective 03/5/1952 as follows:
    13.0, 13.10, 13.11, 13.12, 13.13, 13.14, 13.16(a), 13.16(b),
13.16(d), 13.17, 13.18, 13.19, 13.20, 13.21, 13.100, 13.101, 13.102,
13.103, 13.104, 13.110, 13.111, 13.112, 13.113, 13.114, 13.115, 13.150,
13.151, 13.153, 13.155, 13.156, 13.157.
    CAR 13 effective 05/16/1953 as follows:
    13.1, 13.15, 13.152, 13.154.
    14 CFR 33 through amendment 33-9 as follows:
    33.4, Appendix A33.
    14 CFR 33 through amendment 33-30 as follows:
    33.7(b).
    14 CFR 27 through amendment 27-0, except as noted below:
     27.853 at amendment 27-37,
     27.1351 at amendment 27-13,
     27.1357 at amendment 27-13,
     27.1529 at amendment 27-18,
     27.561 is replaced with VAT.561,
     27.785 is replaced with VAT.785.
    14 CFR 27 through amendment 27-30 as follows:
    27.952(a), 27.952(c), 27.952(f), 27.952(g).
    14 CFR 27 through amendment 27-35 as follows:
    27.975(b).
    VAT.561 General:
    (a) The rotorcraft, although it may be damaged in emergency landing
conditions on land or water, must be designed as prescribed in this
section to protect the occupants under those conditions.
    (b) The structure must be designed to give each occupant every
reasonable chance of escaping serious injury in a minor crash landing
when--
    (1) Proper use is made of seats, belts, and other safety design
provisions;
    (2) The wheels are retracted (where applicable); and
    (3) The occupant experiences the following ultimate inertia forces
relative to the surrounding structure:
    (i) Upward--4.0g.
    (ii) Forward--8.0g.
    (iii) Sideward--8.0g.
    (iv) Downward--12.0g.
    (v) Rearward--4.0g.
    (c) The supporting structure must be designed to restrain, under
any ultimate inertial load up to those specified in this paragraph, any
item of mass above and/or behind the crew and passenger

compartment that could injure an occupant if it came loose in an
emergency landing. Items of mass to be considered include, but are not
limited to, rotors, transmissions, and engines. The items of mass must
be restrained for the following ultimate inertial load factors:
    (1) Upward--1.5g.
    (2) Forward--4.0g.
    (3) Sideward--2.0g.
    (4) Downward--4.0g
    VAT.785 Seats and berths:
    (a) The seats and berths, and their supporting structures, must be
designed for loads resulting from the specified flight and landing
conditions, including the emergency landing conditions of VAT.561.
    (b) The reactions from safety belts and harnesses must be
considered.
    (c) Each pilot seat must be designed for the reactions resulting
from the application of the pilot forces prescribed in Sec. 27.397.
    (d) The structural analysis and testing of the structures specified
in paragraphs (a) through (c) may be simplified--
    (1) By assuming that the critical load in each direction, as
determined from the prescribed flight, ground, and emergency landing
conditions, acts separately; or
    (2) By using selected combinations of loads, if the required
strength in the specified directions is proven.
    (e) Each occupant's seat must have a combined safety belt and
shoulder harness with a single-point release. Each pilot's combined
safety belt and shoulder harness must allow each pilot, when seated
with safety belt and shoulder harness fastened, to perform all
functions necessary for flight operations. There must be a means to
secure belts and harnesses, when not in use, to prevent interference
with the operation of the rotorcraft and with rapid egress in an
emergency.
    (f) Each occupant must be protected from serious head injury by a
safety belt plus a shoulder harness that will prevent the head from
contacting any injurious object.
    (g) The safety belt and shoulder harness must meet the static
strength requirements specified by this rotorcraft type certification
basis.
    VAT.963 Fuel tanks: general:
    Each flexible fuel tank bladder or liner must be approved or shown
to be suitable for the particular application and must be puncture-
resistant. Puncture resistance must be shown by meeting TSO-C80
paragraph 16.0 requirements using a minimum puncture force of 250
pounds.
    14 CFR 36 through amendment 36-30 as follows:
     Subpart H

    Issued in Ft. Worth, Texas, on December 12, 2018.
Jorge Castillo,
Acting Manager, Rotorcraft Standards Branch, Policy and Innovation
Division, Aircraft Certification Service.
[FR Doc. 2018-27566 Filed 12-20-18; 8:45 am]
 BILLING CODE 4910-13-P