[Federal Register Volume 80, Number 76 (Tuesday, April 21, 2015)]
[Notices]
[Pages 22234-22242]
[FR Doc No: 2015-09066]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74730; File No. SR-NYSEArca-2015-25]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change, and Amendment No. 1 Thereto, To List and Trade
Shares of the iShares iBonds Dec 2021 AMT-Free Muni Bond ETF and
iShares iBonds Dec 2022 AMT-Free Muni Bond ETF Under NYSE Arca Equities
Rule 5.2(j)(3)

April 15, 2015.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on March 31, 2015, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. On April 14, 2015, the Exchange filed Amendment No. 1 to
the proposed rule change, which superseded the original filing. The
Commission is publishing this notice to solicit comments on the
proposed rule change, as amended by Amendment No. 1, from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 list and trade under NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02, the shares of the following series of
the iShares Trust: iShares iBonds Dec 2021 AMT-Free Muni Bond ETF and
iShares iBonds Dec 2022 AMT-Free Muni Bond ETF. The text of the
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade shares (``Shares'') of the
following series of the iShares Trust (the ``Trust'') under NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02, which governs the listing and
trading of Investment Company Units (``Units'') based on fixed income
securities indexes: iShares iBonds Dec 2021 AMT-Free Muni Bond ETF and
iShares iBonds Dec 2022 AMT-Free Muni Bond ETF (each a ``Fund'' and,
collectively, the ``Funds'').\4\
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    \4\ The Commission previously has approved a proposed rule
change relating to listing and trading on the Exchange of Units
based on municipal bond indexes. See Securities Exchange Act Release
Nos. 67985 (October 4, 2012), 77 FR 61804 (October 11, 2012) (SR-
NYSEArca-2012-92) (order approving proposed rule change relating to
the listing and trading of iShares 2018 S&P AMT-Free Municipal
Series and iShares 2019 S&P AMT-Free Municipal Series under NYSE
Arca Equities Rule 5.2(j)(3), Commentary .02); 72523 (July 2, 2014),
79 FR 39016 (July 9, 2014) (SR-NYSEArca-2014-37) (order approving
proposed rule change relating to the listing and trading of iShares
2020 S&P AMT-Free Municipal Series under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02). The Commission also has issued a notice
of filing and immediate effectiveness of a proposed rule change
relating to listing and trading on the Exchange of the iShares
Taxable Municipal Bond Fund. See Securities Exchange Act Release No.
63176 (October 25, 2010), 75 FR 66815 (October 29, 2010) (SR-
NYSEArca-2010-94). The Commission has approved two actively managed
funds of the PIMCO ETF Trust that hold municipal bonds. See
Securities Exchange Act Release No. 60981 (November 10, 2009), 74 FR
59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order approving
listing and trading of PIMCO Short-Term Municipal Bond Strategy Fund
and PIMCO Intermediate Municipal Bond Strategy Fund, among others).
The Commission also has approved listing and trading on the Exchange
of the SPDR Nuveen S&P High Yield Municipal Bond Fund. See
Securities Exchange Act Release No. 63881 (February 9, 2011), 76 FR
9065 (February 16, 2011) (SR-NYSEArca-2010-120).
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    Blackrock Fund Advisors (``BFA'') will be the investment adviser
for the Funds.\5\
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    \5\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, BFA and its related personnel are subject to
the provisions of Rule 204A-1 under the Advisers Act relating to
codes of ethics. This Rule requires investment advisers to adopt a
code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
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    BlackRock Investments, LLC is the Funds' distributor
(``Distributor'').\6\
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    \6\ With respect to the iShares iBonds Dec 2021 AMT-Free Muni
Bond ETF, see Post-Effective Amendment No. 1,380 to the Trust's
registration statement on Form N-1A under the Securities Act of 1933
(15 U.S.C. 77a) (``1933 Act'') and the Investment Company Act of
1940 (``1940 Act'') (15 U.S.C. 80a-1), dated March 26, 2015 (File
Nos. 333-92935 and 811-09729), and, with respect to the iShares
iBonds Dec 2022 AMT-Free Muni Bond ETF, see Post-Effective Amendment
No. 1,381 to the Trust's registration statement on Form N-1A under
the 1933 Act and 1940 Act, dated March 26, 2015 (File Nos. 333-92935
and 811-09729) (each a ``Registration Statement'' and, collectively,
the ``Registration Statements''). The description of the operation
of the Trust and the Funds herein is based, in part, on the
Registration Statements. In addition, the Commission has issued an
order granting certain exemptive relief to the Trust under the 1940
Act. See Investment Company Act Release No. 27608 (December 21,
2006) (File No. 812-13208) (``Exemptive Order'').
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iShares iBonds Dec 2021 AMT-Free Muni Bond ETF
    The Fund will seek to track the investment results of an index
composed of investment-grade U.S. municipal bonds maturing after
December 31, 2020 and before December 2, 2021. Specifically, the Fund
will seek to track the investment results of the S&P AMT-Free Municipal
Series December 2021 Index\TM\ (the ``2021 Index''), which measures the
performance of investment-grade, non-callable U.S. municipal bonds
maturing after December 31, 2020 and before December 2, 2021.\7\ As of
February 10, 2015, there were 4,217 issues in the 2021 Index.
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    \7\ The 2021 Index and the S&P AMT-Free Municipal Series
December 2022 Index\TM\ (or the ``2022 Index'') (described below)
are products of S&P Dow Jones Indices LLC, a subsidiary of McGraw
Hill Financial, Inc. (the ``Index Provider''), which is independent
of the Funds and BFA. The Index Provider determines the composition
and relative weightings of the securities in the 2021 Index and 2022
Index and publishes information regarding the market value of the
2021 Index and 2022 Index. The Index Provider is not a broker-dealer
or affiliated with a broker-dealer and has implemented procedures
designed to prevent the use and dissemination of material, non-
public information regarding the 2021 Index and 2022 Index.
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    The 2021 Index includes municipal bonds primarily from issuers that
are state or local governments or agencies such that the interest on
the bonds is exempt from U.S. federal income taxes and the federal
alternative minimum tax (``AMT''). Each bond must have a rating

of at least BBB- by Standard & Poor's Ratings Services (``S&P''), Baa3
by Moody's Investors Service, Inc. (``Moody's''), or BBB- by Fitch
Ratings, Inc. (``Fitch'') and must have a minimum maturity par amount
of $2 million to be eligible for inclusion in the 2021 Index. To remain
in the 2021 Index, bonds must maintain a minimum par amount greater
than or equal to $2 million as of each rebalancing date. All bonds in
the 2021 Index will mature after December 31, 2020 and before December
2, 2021. When a bond matures in the 2021 Index, an amount representing
its value at maturity will be included in the 2021 Index throughout the
remaining life of the 2021 Index, and any such amount will be assumed
to earn a rate equal to the performance of the Standard & Poor's
Financial Services LLC's (a subsidiary of The McGraw-Hill Companies,
Inc.) Weekly High Grade Index, municipal tax-exempt notes that are not
subject to federal AMT. The 2021 Index is a market value weighted index
and is rebalanced after the market close on the last business day of
each month.
    The Fund generally will invest at least 80% of its assets in the
securities of the 2021 Index, except during the last months of the
Fund's operations, as described below. The Fund may invest the
remainder of its assets in cash and cash equivalents (including shares
of money market funds affiliated with BFA), as well as in municipal
bonds not included in the 2021 Index, but which BFA believes will help
the Fund track the 2021 Index. The Fund will seek to track the
investment results of the 2021 Index before fees and expenses of the
Fund.
    The Fund will generally hold municipal bond securities issued by
state and local municipalities whose interest payments are exempt from
U.S. federal income tax, the federal AMT and a federal Medicare
contribution tax of 3.8% on ``net investment income,'' including
dividends, interest and capital gains. In addition, the Fund may invest
any cash assets in one or more affiliated municipal money market funds.
In the last months of operation, as the bonds held by the Fund mature,
the proceeds will not be reinvested in bonds but instead will be held
in cash and cash equivalents, including, without limitation, shares of
money market funds affiliated with BFA, AMT-free tax-exempt municipal
notes, variable rate demand notes and obligations, tender option bonds
and municipal commercial paper. These cash equivalents may not be
included in the 2021 Index. Around December 1, 2021, the Fund will wind
up and terminate, and its net assets will be distributed to then-
current shareholders.
    The Exchange is submitting this proposed rule change because the
2021 Index for the Fund does not meet all of the ``generic'' listing
requirements of Commentary .02(a) to NYSE Arca Equities Rule 5.2(j)(3)
applicable to the listing of Units based on fixed income securities
indexes. The 2021 Index meets all such requirements except for those
set forth in Commentary .02(a)(2).\8\ Specifically, as of February 10,
2015, 6.8% of the weight of the 2021 Index components have a minimum
original principal amount outstanding of $100 million or more.
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    \8\ Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3)
provides that components that in the aggregate account for at least
75% of the weight of the index or portfolio each shall have a
minimum original principal amount outstanding of $100 million or
more.
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    As of February 10, 2015, 72% of the weight of the 2021 Index
components was comprised of individual maturities that were part of an
entire municipal bond offering with a minimum original principal amount
outstanding of $100 million or more for all maturities of the offering.
In addition, the total dollar amount outstanding of issues in the 2021
Index was approximately $38.9 billion and the average dollar amount
outstanding of issues in the 2021 Index was approximately $9.2 million.
Further, the most heavily weighted component represented 0.57% of the
weight of the 2021 Index and the five most heavily weighted components
represented 2.51% of the weight of the 2021 Index.\9\ Therefore, the
Exchange believes that, notwithstanding that the 2021 Index does not
satisfy the criterion in NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02 (a)(2), the 2021 Index is sufficiently broad-based to deter
potential manipulation, given that it is comprised of approximately
4217 issues. In addition, the 2021 Index securities are sufficiently
liquid to deter potential manipulation in that a substantial portion
(72%) of the 2021 Index weight is comprised of maturities that are part
of a minimum original principal amount outstanding of $100 million or
more, and in view of the substantial total dollar amount outstanding
and the average dollar amount outstanding of 2021 Index issues, as
referenced above.\10\
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    \9\ Commentary .02(a)(4) to NYSE Arca Equities Rule 5.2(j)(3)
provides that no component fixed-income security (excluding Treasury
Securities and GSE Securities, as defined therein) shall represent
more than 30% of the weight of the index or portfolio, and the five
most heavily weighted component fixed-income securities in the index
or portfolio shall not in the aggregate account for more than 65% of
the weight of the index or portfolio.
    \10\ BFA represents that when bonds are close substitutes for
one another, pricing vendors can use executed trade information from
all similar bonds as pricing inputs for an individual security. This
can make individual securities more liquid, because valuations for a
single security are better estimators of actual trading prices when
they are informed by trades in a large group of closely related
securities. As a result, securities are more likely to trade at
prices close to their valuation when they need to be sold.
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    As of February 10, 2015, 58.2% of the 2021 Index weight consisted
of issues with a rating of AA/Aa2 or higher.
    The 2021 Index value, calculated and disseminated at least once
daily, as well as the components of the 2021 Index and their percentage
weighting, will be available from major market data vendors. In
addition, the portfolio of securities held by the Fund will be
disclosed on the Fund's Web site at www.iShares.com.
    According to the Registration Statement, BFA expects that, over
time, the Fund's tracking error will not exceed 5%. ``Tracking error''
is the difference between the performance (return) of the Fund's
portfolio and that of the 2021 Index.
iShares iBonds Dec 2022 AMT-Free Muni Bond ETF
    According to the Registration Statement, the iShares iBonds Dec
2022 AMT-Free Muni Bond ETF will seek to track the investment results
of an index composed of investment-grade U.S. municipal bonds maturing
after December 31, 2021 and before December 2, 2022. The Fund will seek
to track the investment results of the S&P AMT-Free Municipal Series
December 2022 Index\TM\ (the ``2022 Index''), which measures the
performance of investment-grade, non-callable U.S. municipal bonds
maturing after December 31, 2021 and before December 2, 2022. As of
February 10, 2015, there were 3473 issues in the 2022 Index.
    The 2022 Index includes municipal bonds primarily from issuers that
are state or local governments or agencies such that the interest on
the bonds is exempt from U.S. federal income taxes and the federal
alternative minimum tax (``AMT''). Each bond must have a rating of at
least BBB- by S&P, Baa3 by Moody's, or BBB- by Fitch Ratings, Inc. and
must have a minimum maturity par amount of $2 million to be eligible
for inclusion in the 2022 Index. To remain in the 2022 Index, bonds
must maintain a minimum par amount greater than or equal to $2 million
as of each rebalancing date. All bonds in the 2022 Index will mature in
after December 31, 2021 and before December 2, 2022.

When a bond matures in the 2022 Index, an amount representing its value
at maturity will be included in the 2022 Index throughout the remaining
life of the 2022 Index, and any such amount will be assumed to earn a
rate equal to the performance of the Standard & Poor's Financial
Services LLC's Weekly High Grade Index, which consists of Moody's
Investment Grade-1 municipal tax-exempt notes that are not subject to
federal AMT. The 2022 Index is a market value weighted index and is
rebalanced after the market close on the last business day of each
month.
    The Fund generally will invest at least 80% of its assets in the
securities of the 2022 Index, except during the last months of the
Fund's operations, as described below. The Fund may invest the
remainder of its assets in cash and cash equivalents (including shares
of money market funds affiliated with BFA), as well as in municipal
bonds not included in the 2022 Index, but which BFA believes will help
the Fund track the 2022 Index. The Fund will seek to track the
investment results of the 2022 Index before fees and expenses of the
Fund.
    The Fund will generally hold municipal bond securities issued by
state and local municipalities whose interest payments are exempt from
U.S. federal income tax, the federal AMT and a federal Medicare
contribution tax of 3.8% on ``net investment income,'' including
dividends, interest and capital gains. In the last months of operation,
as the bonds held by the Fund mature, the proceeds will not be
reinvested in bonds but instead will be held in cash and cash
equivalents, including, without limitation, shares of money market
funds affiliated with BFA, AMT-free tax-exempt municipal notes,
variable rate demand notes and obligations, tender option bonds and
municipal commercial paper. These cash equivalents may not be included
in the 2022 Index. Around December 1, 2022, the Fund will wind up and
terminate, and its net assets will be distributed to then-current
shareholders.
    The Exchange is submitting this proposed rule change because the
2022 Index for the Fund does not meet all of the ``generic'' listing
requirements of Commentary .02(a) to NYSE Arca Equities Rule 5.2(j)(3)
applicable to the listing of Units based on fixed income securities
indexes. The 2022 Index meets all such requirements except for those
set forth in Commentary .02(a)(2).\11\ Specifically, as of February 10,
2015, 5.8% of the weight of the 2022 Index components have a minimum
original principal amount outstanding of $100 million or more.
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    \11\ Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3)
provides that components that in the aggregate account for at least
75% of the weight of the index or portfolio each shall have a
minimum original principal amount outstanding of $100 million or
more.
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    As of February 10, 2015, 72.4% of the weight of the 2022 Index
components was comprised of individual maturities that were part of an
entire municipal bond offering with a minimum original principal amount
outstanding of $100 million or more for all maturities of the offering.
In addition, the total dollar amount outstanding of issues in the 2022
Index was approximately $30.5 billion and the average dollar amount
outstanding of issues in the 2022 Index was approximately $8.8 million.
Further, the most heavily weighted component represented 0.55% of the
weight of the 2022 Index and the five most heavily weighted components
represented 2.67% of the weight of the 2022 Index.\12\ Therefore, the
Exchange believes that, notwithstanding that the 2022 Index does not
satisfy the criterion in NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02 (a)(2), the 2022 Index is sufficiently broad-based to deter
potential manipulation, given that it is comprised of approximately
3473 issues. In addition, the 2022 Index securities are sufficiently
liquid to deter potential manipulation in that a substantial portion
(72.4%) of the 2022 Index weight is comprised of maturities that are
part of an offering with a minimum original principal amount
outstanding of $100 million or more, and in view of the substantial
total dollar amount outstanding and the average dollar amount
outstanding of 2022 Index issues, as referenced above.\13\
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    \12\ Commentary .02(a)(4) to NYSE Arca Equities Rule 5.2(j)(3)
provides that no component fixed-income security (excluding Treasury
Securities and GSE Securities, as defined therein) shall represent
more than 30% of the weight of the index or portfolio, and the five
most heavily weighted component fixed-income securities in the index
or portfolio shall not in the aggregate account for more than 65% of
the weight of the index or portfolio.
    \13\ BFA represents that when bonds are close substitutes for
one another, pricing vendors can use executed trade information from
all similar bonds as pricing inputs for an individual security. This
can make individual securities more liquid, because valuations for a
single security are better estimators of actual trading prices when
they are informed by trades in a large group of closely related
securities. As a result, securities are more likely to trade at
prices close to their valuation when they need to be sold.
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    As of February 10, 2015, 59.7% of the 2022 Index weight consisted
of issues with a rating of AA/Aa2 or higher.
    The 2022 Index value, calculated and disseminated at least once
daily, as well as the components of the 2022 Index and their percentage
weighting, will be available from major market data vendors. In
addition, the portfolio of securities held by the Fund will be
disclosed on the Fund's Web site at www.iShares.com.
    According to the Registration Statement, BFA expects that, over
time, the Fund's tracking error will not exceed 5%. ``Tracking error''
is the difference between the performance (return) of the Fund's
portfolio and that of the 2022 Index.
    The Exchange represents that: (1) Except for Commentary .02(a)(2)
to NYSE Arca Equities Rule 5.2(j)(3), the 2021 Index and 2022 Index
currently satisfy all of the generic listing standards under NYSE Arca
Equities Rule 5.2(j)(3); (2) the continued listing standards under NYSE
Arca Equities Rules 5.2(j)(3) and 5.5(g)(2) applicable to Units shall
apply to the Shares of a Fund; and (3) the Trust is required to comply
with Rule 10A-3 \14\ under the Act for the initial and continued
listing of the Shares of a Fund. In addition, the Exchange represents
that the Shares of the Funds will comply with all other requirements
applicable to Units including, but not limited to, requirements
relating to the dissemination of key information such as the value of
the 2021 Index and 2022 Index, respectively, and the Intraday
Indicative Value (``IIV''),\15\ rules governing the trading of equity
securities, trading hours, trading halts, surveillance, and the
Information Bulletin to Equity Trading Permit Holders (``ETP
Holders''), as set forth in Exchange rules applicable to Units and
prior Commission orders approving the generic listing rules applicable
to the listing and trading of Units.\16\
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    \14\ 17 CFR 240.10A-3.
    \15\ The IIV will be widely disseminated by one or more major
market data vendors at least every 15 seconds during the Exchange's
Core Trading Session of 9:30 a.m. to 4:00 p.m., Eastern time.
Currently, it is the Exchange's understanding that several major
market data vendors display and/or make widely available IIVs taken
from the Consolidated Tape Association (``CTA'') or other data
feeds.
    \16\ See, e.g., Securities Exchange Act Release Nos. 55783 (May
17, 2007), 72 FR 29194 (May 24, 2007) (SR-NYSEArca-2007-36) (order
approving NYSE Arca generic listing standards for Units based on a
fixed income index); 44551 (July 12, 2001), 66 FR 37716 (July 19,
2001) (SR-PCX-2001-14) (order approving generic listing standards
for Units and Portfolio Depositary Receipts); 41983 (October 6,
1999), 64 FR 56008 (October 15, 1999) (SR-PCX-98-29) (order
approving rules for listing and trading of Units).
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    The current value of the 2021 Index and 2022 Index will be widely
disseminated by one or more major market data vendors at least once per
day, as required by NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02(b)(ii).

The IIV for Shares of a Fund will be disseminated by one or more major
market data vendors, updated at least every 15 seconds during the
Exchange's Core Trading Session, as required by NYSE Arca Equities Rule
5.2(j)(3), Commentary .02(c).
Correlation Among Municipal Bond Instruments With Common
Characteristics
    With respect to the Funds, BFA represents that the nature of the
municipal bond market and municipal bond instruments makes it feasible
to categorize individual issues represented by CUSIPs (i.e., the
specific identifying number for a security) into categories according
to common characteristics-- specifically, rating, geographical region,
purpose (i.e., general obligation bonds, revenue bonds or ``double-
barreled'' bonds),\17\ and maturity. Bonds that share similar
characteristics tend to trade similarly to one another; therefore,
within these categories, the issues may be considered fungible from a
portfolio management perspective, allowing one CUSIP to be represented
by another that shares similar characteristics for purposes of
developing an investment strategy. Therefore, while 6.8% of the weight
of the 2021 Index and 5.8% of the weight of the 2022 Index components
have a minimum original principal amount outstanding of $100 million or
more, the nature of the municipal bond market makes the issues
relatively fungible for investment purposes when aggregated into
categories such as ratings, geographical region, purpose and maturity.
In addition, within a single municipal bond issuer, there are often
multiple contemporaneous or sequential issuances that have the same
rating, structure and maturity, but have different CUSIPs; these
separate issues by the same issuer are also likely to trade similarly
to one another.
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    \17\ General obligation (``GO'') bonds are backed by the full
faith and credit of the issuer and by its taxing power. Revenue
bonds (``REV'') are payable solely from net or gross non-tax
revenues derived from a specific project. Double barreled (``DB'')
GO bonds are secured by both a specific revenue stream and by the
taxing power of the issuer. As of February 10, 2015, the market
value of GO, REV and DB bonds in the 2021 Index was approximately
$14.3 billion, $23.4 billion and $1.3 million, respectively,
representing 36.7%, 60.0% and 3.3% of the 2021 Index weight,
respectively. As of February 10, 2015, the market value of GO, REV
and DB bonds in the 2022 Index was approximately $11.7 billion, $
17.8 billion and $987 million, respectively, representing 38.4%,
58.4% and 3.2% of the 2022 Index weight, respectively.
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    BFA represents that iShares municipal bond funds are managed
utilizing the principle that municipal bond issues are generally
fungible in nature when sharing common characteristics, and
specifically make use of the four categories referred to above. In
addition, this principle is used in, and consistent with, the portfolio
construction process for other iShares funds--namely, portfolio
optimization. These portfolio optimization techniques are designed to
facilitate the creation and redemption process, and to enhance
liquidity (among other benefits, such as reducing transaction costs),
while still allowing each fund to closely track its reference index.
    In addition, individual CUSIPs within the 2021 Index and 2022 Index
that share characteristics with other CUSIPs based on the four
categories described above have a high yield to maturity correlation,
and frequently have a correlation of one or close to one. Such
correlation demonstrates that the CUSIPs within their respective
category behave similarly; this reinforces the fungible nature of
municipal bond issues for purposes of developing an investment
strategy.
    Attached as Exhibit 3 to this proposed rule change are two examples
reflecting the correlation among CUSIPs in the 2021 Index and 2022
Index, respectively.\18\ These examples show the correlation of
selected constituents that share three common characteristics: rating,
purpose and geographical region. Example 1 relating to the 2021 Index
shows the yield to maturity of issues sharing the following
characteristics: Rating AA/Aa; \19\ West; GO Bonds maturing July 1,
2021. Example 2 relating to the 2022 Index shows the yield to maturity
of issues sharing the following characteristics: Rating AA/Aa; West; GO
Bonds maturing July 1, 2022.
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    \18\ Source: Standard and Poor's, January 1, 2014 to January 1,
2015, daily evaluated prices. Evaluated prices, as defined by
Standard and Poor's, are based on a methodology that incorporates,
among other things, trade data, broker dealer quotes, new issue
pricing, and certain fundamental characteristics such as credit
quality and sector.
    \19\ This is a composite rating among Standard & Poor's, Moody's
and Fitch ratings. Under BFA's methodology, the median rating is
used if all three ratings are available; the lowest rating is used
if only two ratings are available; and, if only one rating is
available, that one is used.
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Creation and Redemption of Shares
    According to the Registration Statement, each Fund will issue and
redeem Shares on a continuous basis at the net asset value per Share
(``NAV'') only in a large specified number of Shares called a
``Creation Unit'', or multiples thereof, with each Creation Unit
consisting of 50,000 Shares, provided, however, that from time to time
a Fund may change the number of Shares (or multiples thereof) required
for each Creation Unit, if a Fund determines such a change would be in
the best interests of a Fund.
    The consideration for purchase of Creation Units of a Fund
generally will consist of the in-kind deposit of a designated portfolio
of securities (including any portion of such securities for which cash
may be substituted) (i.e., the Deposit Securities), which constitutes a
representative sample of the securities of the 2021 Index or 2022
Index, as applicable,\20\ and the Cash Component computed as described
below. Together, the Deposit Securities and the Cash Component
constitute the ``Fund Deposit,'' which represents the minimum initial
and subsequent investment amount for a Creation Unit of a Fund.
---------------------------------------------------------------------------

    \20\ According to the Registration Statement, ``representative
sampling'' is an indexing strategy that involves investing in a
representative sample of securities that collectively has an
investment profile similar to the 2021 Index or 2022 Index,
respectively. The securities selected are expected to have, in the
aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental
characteristics (such as return variability, duration, maturity or
credit ratings and yield) and liquidity measures similar to those of
the Index. A Fund may or may not hold all of the securities in the
2021 Index or 2022 Index.
---------------------------------------------------------------------------

    The portfolio of securities required for purchase of a Creation
Unit may not be identical to the portfolio of securities a Fund will
deliver upon redemption of a Fund's Shares. The Deposit Securities and
Fund Securities (as defined below), as the case may be, in connection
with a purchase or redemption of a Creation Unit, generally will
correspond pro rata, to the extent practicable, to the securities held
by such Fund. As the planned termination date of a Fund approaches, and
particularly as the bonds held by a Fund begin to mature, a Fund would
expect to effect both creations and redemptions increasingly for cash.
    The Cash Component will be an amount equal to the difference
between the NAV of the Shares (per Creation Unit) and the ``Deposit
Amount,'' which will be an amount equal to the market value of the
Deposit Securities, and serve to compensate for any differences between
the NAV per Creation Unit and the Deposit Amount. A Fund currently will
offer Creation Units for in-kind deposits but reserves the right to
utilize a ``cash'' option in lieu of some or all of the applicable
Deposit Securities for creation of Shares.
    BFA will make available through the National Securities Clearing
Corporation (``NSCC'') on each business day, prior to the opening of
business on the Exchange, the list of names and the

required number or par value of each Deposit Security and the amount of
the Cash Component to be included in the current Fund Deposit (based on
information as of the end of the previous business day) for a Fund.
    The identity and number or par value of the Deposit Securities will
change pursuant to changes in the composition of a Fund's portfolio and
as rebalancing adjustments and corporate action events will be
reflected from time to time by BFA with a view to the investment
objective of a Fund. The composition of the Deposit Securities may also
change in response to adjustments to the weighting or composition of
the component securities constituting the 2021 Index or 2022 Index.
    Each Fund reserves the right to permit or require the substitution
of a ``cash in lieu'' amount to be added to the Cash Component to
replace any Deposit Security that may not be available in sufficient
quantity for delivery or that may not be eligible for transfer through
the Depository Trust Company (``DTC'').
    Creation Units may be purchased only by or through a DTC
participant that has entered into an ``Authorized Participant
Agreement'' (as described in the applicable Registration Statement)
with the Distributor (an ``Authorized Participant''). Except as noted
below, all creation orders must be placed for one or more Creation
Units and must be received by the Distributor in proper form no later
than the closing time of the regular trading session of the Exchange
(normally 4:00 p.m., Eastern time) in each case on the date such order
is placed in order for creation of Creation Units to be effected based
on the NAV of Shares of a Fund as next determined on such date after
receipt of the order in proper form. Orders requesting substitution of
a ``cash in lieu'' amount generally must be received by the Distributor
no later than 2:00 p.m., Eastern time. On days when the Exchange or the
bond markets close earlier than normal, a Fund may require orders to
create Creation Units to be placed earlier in the day.
    Fund Deposits must be delivered through the Federal Reserve System
(for cash and government securities) and through DTC (for corporate and
municipal securities) by an Authorized Participant. The Fund Deposit
transfer must be ordered by the DTC participant in a timely fashion so
as to ensure the delivery of the requisite number of Deposit Securities
through DTC to the account of a Fund by no later than 3:00 p.m.,
Eastern time, on the ``Settlement Date''. The Settlement Date is
generally the third business day after the transmittal date.
    A standard creation transaction fee will be imposed to offset the
transfer and other transaction costs associated with the issuance of
Creation Units.
    Shares of a Fund may be redeemed only in Creation Units at the NAV
next determined after receipt of a redemption request in proper form by
the Distributor and only on a business day. BFA will make available
through the NSCC, prior to the opening of business on the Exchange on
each business day, the designated portfolio of securities (including
any portion of such securities for which cash may be substituted) that
will be applicable (subject to possible amendment or correction) to
redemption requests received in proper form on that day (``Fund
Securities''). Fund Securities received on redemption may not be
identical to Deposit Securities that are applicable to creations of
Creation Units.
    Unless cash redemptions are available or specified for a Fund, the
redemption proceeds for a Creation Unit generally will consist of a
specified amount of cash, Fund Securities, plus additional cash in an
amount equal to the difference between the NAV of the Shares being
redeemed, as next determined after the receipt of a request in proper
form, and the value of the specified amount of cash and Fund
Securities, less a redemption transaction fee. A Fund currently will
redeem Shares for Fund Securities, but a Fund reserves the right to
utilize a ``cash'' option for redemption of Shares.
    A standard redemption transaction fee will be imposed to offset
transfer and other transaction costs that may be incurred by a Fund.
    Redemption requests for Creation Units of a Fund must be submitted
to the Distributor by or through an Authorized Participant no later
than 4:00 p.m. Eastern time on any business day, in order to receive
that day's NAV. The Authorized Participant must transmit the request
for redemption in the form required by a Fund to the Distributor in
accordance with procedures set forth in the Authorized Participant
Agreement.
    Detailed descriptions of the Funds, the 2021 Index and 2022 Index,
procedures for creating and redeeming Shares, transaction fees and
expenses, dividends, distributions, taxes, risks, and reports to be
distributed to beneficial owners of the Shares can be found in the
Registration Statements or on the Web site for the Funds
(www.iShares.com), as applicable.
Net Asset Value
    The NAV of a Fund normally will be determined once daily Monday
through Friday, generally as of the regularly scheduled close of
business of the New York Stock Exchange (``NYSE'') (normally 4:00 p.m.,
Eastern time) on each day that the NYSE is open for trading, based on
prices at the time of closing provided that (a) any Fund assets or
liabilities denominated in currencies other than the U.S. dollar will
be translated into U.S. dollars at the prevailing market rates on the
date of valuation as quoted by one or more data service providers and
(b) U.S. fixed-income assets may be valued as of the announced closing
time for trading in fixed-income instruments in a particular market or
exchange. The NAV of a Fund will be calculated by dividing the value of
the net assets of a Fund (i.e., the value of its total assets less
total liabilities) by the total number of outstanding Shares of a Fund,
generally rounded to the nearest cent.
    The value of the securities and other assets and liabilities held
by a Fund will be determined pursuant to valuation policies and
procedures approved by the Trust's Board of Trustees (``Board''). A
Fund's assets and liabilities will be valued on the basis of market
quotations, when readily available.
    Each Fund will value fixed-income portfolio securities using prices
provided directly from one or more broker-dealers, market makers, or
independent third-party pricing services which may use matrix pricing
and valuation models, as well as recent market transactions for the
same or similar assets, to derive values. Certain short-term debt
securities may be valued on the basis of amortized cost.
    Generally, trading in non-U.S. securities, U.S. government
securities, money market instruments and certain fixed-income
securities is substantially completed each day at various times prior
to the close of business on the NYSE. The values of such securities
used in computing the NAV of a Fund are determined as of such times.
    When market quotations are not readily available or are believed by
BFA to be unreliable, a Fund's investments will be valued at fair
value. Fair value determinations will be made by BFA in accordance with
policies and procedures approved by the Trust's Board. BFA may conclude
that a market quotation is not readily available or is unreliable if a
security or other asset or liability does not have a price source due
to its lack of liquidity, if a market quotation differs significantly
from recent price quotations or otherwise no longer appears to reflect
fair value, where the security or other asset or liability is thinly
traded, or where there is a significant event subsequent to the

most recent market quotation. A ``significant event'' is an event that,
in the judgment of BFA, is likely to cause a material change to the
closing market price of the asset or liability held by a Fund.
    Fair value represents a good faith approximation of the value of an
asset or liability. The fair value of an asset or liability held by a
Fund is the amount a Fund might reasonably expect to receive from the
current sale of that asset or the cost to extinguish that liability in
an arm's-length transaction.
Availability of Information
    On each business day, each Fund will disclose on its Web site the
portfolio that will form the basis for a Fund's calculation of NAV at
the end of the business day.\21\
---------------------------------------------------------------------------

    \21\ Under accounting procedures followed by a Fund, trades made
on the prior business day (``T'') will be booked and reflected in
NAV on the current business day (``T+1''). Accordingly, a Fund will
be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

    On a daily basis, a Fund will disclose for each portfolio security
or other financial instrument of a Fund the following information on
the Funds' Web site: Ticker symbol (if applicable), name of security
and financial instrument, a common identifier such as CUSIP or ISIN (if
applicable), number of shares (if applicable), and dollar value of
securities and financial instruments held in the portfolio, and
percentage weighting of the security and financial instrument in the
portfolio. The Web site information will be publicly available at no
charge.
    The current value of the 2021 Index and 2022 Index will be widely
disseminated by one or more major market data vendors at least once per
day, as required by NYSE Arca Equities Rule 5.2(j)(3), Commentary .02
(b)(ii). The IIV for Shares of a Fund will be disseminated by one or
more major market data vendors, updated at least every 15 seconds
during the Exchange's Core Trading Session, as required by NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02(c).
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), a Fund's Shareholder Reports, and its Form N-CSR
and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder
Reports are available free upon request from the Trust, and those
documents and the Form N-CSR and Form N-SAR may be viewed on-screen or
downloaded from the Commission's Web site at www.sec.gov. Information
regarding market price and trading volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers.
    Quotation and last sale information for the Shares of each Fund
will be available via the Consolidated Tape Association (``CTA'') high
speed line. Quotation information for investment company securities
(excluding ETFs) may be obtained through nationally recognized pricing
services through subscription agreements or from brokers and dealers
who make markets in such securities. Price information regarding
municipal bonds, AMT-free tax-exempt municipal notes, variable rate
demand notes and obligations, tender option bonds and municipal
commercial paper is available from third party pricing services and
major market data vendors.
Trading Rules
    The Exchange deems the Shares of the Funds to be equity securities,
thus rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares of the Funds
will trade on the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m.
Eastern time in accordance with NYSE Arca Equities Rule 7.34 (Opening,
Core, and Late Trading Sessions). The Exchange has appropriate rules to
facilitate transactions in the Shares during all trading sessions. As
provided in NYSE Arca Equities Rule 7.6, Commentary .03, the minimum
price variation (``MPV'') for quoting and entry of orders in equity
securities traded on the NYSE Arca Marketplace is $0.01, with the
exception of securities that are priced less than $1.00 for which the
MPV for order entry is $0.0001.
    The Shares of each Fund will conform to the initial and continued
listing criteria under NYSE Arca Equities Rules 5.2(j)(3) and
5.5(g)(2), respectively (except for those set forth in Commentary
.02(a)(2)). The Exchange represents that, for initial and/or continued
listing, the Fund [sic] will be in compliance with Rule 10A-3 \22\
under the Act, as provided by NYSE Arca Equities Rule 5.3. A minimum of
100,000 Shares for each Fund will be outstanding at the commencement of
trading on the Exchange. The Exchange will obtain a representation from
the issuer of the Shares that the NAV per Share of each Fund will be
calculated daily and that the NAV per Share will be made available to
all market participants at the same time.
---------------------------------------------------------------------------

    \22\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Trading Halts
    The Exchange will halt trading in the Shares if the circuit breaker
parameters of NYSE Arca Equities Rule 7.12 have been reached. In
exercising its discretion to halt or suspend trading in the Shares, the
Exchange may consider factors such as the extent to which trading in
the underlying securities is not occurring or whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present, in addition to other factors that may
be relevant. If the IIV (as defined in Commentary .01 to Rule
5.2(j)(3)) or the value of the 2021 Index or 2022 Index is not being
disseminated as required, the Exchange may halt trading during the day
in which the interruption to the dissemination of the IIV or the 2021
Index value or 2022 Index value occurs. If the interruption to the
dissemination of the IIV, 2021 Index value or 2022 Index value persists
past the trading day in which it occurred, the Exchange will halt
trading.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit Holders in an Information Bulletin (``Bulletin'')
of the special characteristics and risks associated with trading the
Shares. Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares in Creation Unit
aggregations (and that Shares are not individually redeemable); (2)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its Equity Trading Permit Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated IIV will not be calculated or publicly
disseminated; (4) how information regarding the IIV is disseminated;
(5) the requirement that Equity Trading Permit Holders deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (6) trading
information.
    In addition, the Bulletin will reference that a Fund is subject to
various fees and expenses described in the Registration Statement. The
Bulletin will discuss any exemptive, no-action, and interpretive relief
granted by the Commission from any rules under the Act. The Bulletin
will also disclose that the NAV for the Shares will be calculated after
4:00 p.m. Eastern time each trading day.

2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under section 6(b)(5) \23\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
5.2(j)(3). The Exchange represents that trading in the Shares will be
subject to the existing trading surveillances, administered by the
Financial Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange, which are designed to detect violations of Exchange rules and
applicable federal securities laws.\24\ The Exchange represents that
these procedures are adequate to properly monitor Exchange trading of
the Shares in all trading sessions and to deter and detect violations
of Exchange rules and federal securities laws applicable to trading on
the Exchange. FINRA, on behalf of the Exchange, will communicate as
needed regarding trading in the Shares with other markets or other
entities that are members of the Intermarket Surveillance group
(``ISG''), and FINRA may obtain trading information regarding trading
in the Shares from such markets or entities. FINRA also can access data
obtained from the Municipal Securities Rulemaking Board relating to
municipal bond trading activity for surveillance purposes in connection
with trading in the Shares. FINRA, on behalf of the Exchange, is able
to access, as needed, trade information for certain fixed income
securities held by a Fund reported to FINRA's Trade Reporting and
Compliance Engine (``TRACE''). In addition, the Exchange may obtain
information regarding trading in the Shares from markets or other
entities that are members of ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    \24\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

    The Index Provider is not a broker-dealer or affiliated with a
broker-dealer and has implemented procedures designed to prevent the
use and dissemination of material, non-public information regarding the
2021 Index and 2022 Index. As of February 10, 2015, there were 4,217
issues in the 2021 Index. As of February 10, 2015, 6.8% of the weight
of the 2021 Index components have a minimum original principal amount
outstanding of $100 million or more. As of February 10, 2015, 72% of
the weight of the 2021 Index components was comprised of individual
maturities that were part of an entire municipal bond offering with a
minimum original principal amount outstanding of $100 million or more
for all maturities of the offering. In addition, the total dollar
amount outstanding of issues in the 2021 Index was approximately $38.9
billion and the average dollar amount outstanding of issues in the 2021
Index was approximately $9.2 million. Further, the most heavily
weighted component represented 0.57% of the weight of the 2021 Index
and the five most heavily weighted components represented 2.51% of the
weight of the 2021 Index.\25\ Therefore, the Exchange believes that,
notwithstanding that the Index does not satisfy the criterion in NYSE
Arca Equities Rule 5.2(j)(3), Commentary .02 (a)(2), the Index is
sufficiently broad-based to deter potential manipulation, given that it
is comprised of approximately 4217 issues. In addition, the 2021 Index
securities are sufficiently liquid to deter potential manipulation in
that a substantial portion (72%) of the 2021 Index weight is comprised
of maturities that are part of a minimum original principal amount
outstanding of $100 million or more, and in view of the substantial
total dollar amount outstanding and the average dollar amount
outstanding of Index issues.
---------------------------------------------------------------------------

    \25\ Commentary .02(a)(4) to NYSE Arca Equities Rule 5.2(j)(3)
provides that no component fixed-income security (excluding Treasury
Securities and GSE Securities, as defined therein) shall represent
more than 30% of the weight of the index or portfolio, and the five
most heavily weighted component fixed-income securities in the index
or portfolio shall not in the aggregate account for more than 65% of
the weight of the index or portfolio.
---------------------------------------------------------------------------

    As of February 10, 2015, there were 3473 issues in the 2022 Index.
As of February 10, 2015, 5.8% of the weight of the 2022 Index
components have a minimum original principal amount outstanding of $100
million or more. As of February 10, 2015, 72.4% of the weight of the
2022 Index components was comprised of individual maturities that were
part of an entire municipal bond offering with a minimum original
principal amount outstanding of $100 million or more for all maturities
of the offering. In addition, the total dollar amount outstanding of
issues in the 2022 Index was approximately $30.5 billion and the
average dollar amount outstanding of issues in the 2022 Index was
approximately $8.8 million. Further, the most heavily weighted
component represented 0.55% of the weight of the 2022 Index and the
five most heavily weighted components represented 2.67% of the weight
of the 2022 Index.\26\ Therefore, the Exchange believes that,
notwithstanding that the 2022 Index does not satisfy the criterion in
NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 (a)(2), the 2022
Index is sufficiently broad-based to deter potential manipulation,
given that it is comprised of approximately 3473 issues. In addition,
the 2022 Index securities are sufficiently liquid to deter potential
manipulation in that a substantial portion (72.4%) of the 2022 Index
weight is comprised of maturities that are part of an offering with a
minimum original principal amount outstanding of $100 million or more,
and in view of the substantial total dollar amount outstanding and the
average dollar amount outstanding of 2022 Index issues, as referenced
above.
---------------------------------------------------------------------------

    \26\ Commentary .02(a)(4) to NYSE Arca Equities Rule 5.2(j)(3)
provides that no component fixed-income security (excluding Treasury
Securities and GSE Securities, as defined therein) shall represent
more than 30% of the weight of the index or portfolio, and the five
most heavily weighted component fixed-income securities in the index
or portfolio shall not in the aggregate account for more than 65% of
the weight of the index or portfolio.
---------------------------------------------------------------------------

    The 2021 Index value and 2022 Index value, calculated and
disseminated at least once daily, as well as the components of the 2021
Index and 2022 Index and their percentage weightings, will be available
from major market data vendors. In addition, the portfolio of
securities held by the Funds will be disclosed on the Funds' Web site
at www.iShares.com. The IIV for Shares of the Funds will be
disseminated by one or more major market data vendors, updated at least
every 15 seconds during the Exchange's Core Trading Session. According
to the Registration Statement, BFA expects that, over time, a Fund's
tracking error will not exceed 5%. BFA represents that bonds that share
similar characteristics, as described above, tend to trade similarly to
one another; therefore, within these categories, the issues may be
considered fungible from a portfolio management perspective. Within a
single municipal bond issuer, BFA represents that separate issues by
the same issuer are also likely to trade similarly to one another. In
addition, BFA represents that individual CUSIPs within the 2021 Index
and 2022 Index that share

characteristics with other CUSIPs based on the four categories
described above have a high yield to maturity correlation, and
frequently have a correlation of one or close to one.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information will be publicly available regarding
the Funds and the Shares, thereby promoting market transparency. The
Funds' portfolio holdings will be disclosed on the Funds' Web site
daily after the close of trading on the Exchange and prior to the
opening of trading on the Exchange the following day. Moreover, the IIV
will be widely disseminated by one or more major market data vendors at
least every 15 seconds during the Exchange's Core Trading Session. The
current values of the 2021 Index and 2022 Index will be disseminated by
one or more major market data vendors at least once per day.
Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services, and
quotation and last sale information will be available via the CTA high-
speed line. The Web site for the Funds will include the prospectus for
the Funds and additional data relating to NAV and other applicable
quantitative information. Moreover, prior to the commencement of
trading, the Exchange will inform its ETP Holders in an Information
Bulletin of the special characteristics and risks associated with
trading the Shares. If the Exchange becomes aware that the NAV is not
being disseminated to all market participants at the same time, it will
halt trading in the Shares until such time as the NAV is available to
all market participants. With respect to trading halts, the Exchange
may consider all relevant factors in exercising its discretion to halt
or suspend trading in the Shares of the Funds. Trading also may be
halted because of market conditions or for reasons that, in the view of
the Exchange, make trading in the Shares inadvisable. If the IIV, the
2021 Index value or the 2022 Index value are not being disseminated as
required, the Corporation may halt trading during the day in which the
interruption to the dissemination of the IIV, the 2021 Index value or
the 2022 Index value occurs. If the interruption to the dissemination
of the IIV, the 2021 Index value or the 2022 Index value persists past
the trading day in which it occurred, the Corporation will halt
trading. Trading in Shares of the Funds will be halted if the circuit
breaker parameters in NYSE Arca Equities Rule 7.12 have been reached or
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable, and trading in the
Shares will be subject to NYSE Arca Equities Rule 7.34, which sets
forth circumstances under which Shares of the Funds may be halted. In
addition, investors will have ready access to information regarding the
IIV, and quotation and last sale information for the Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an additional type of exchange-traded fund that holds municipal bonds
and that will enhance competition among market participants, to the
benefit of investors and the marketplace. As noted above, the Exchange
has in place surveillance procedures relating to trading in the Shares
and may obtain information via ISG from other exchanges that are
members of ISG or with which the Exchange has entered into a
comprehensive surveillance sharing agreement. In addition, investors
will have ready access to information regarding the IIV and quotation
and last sale information for the Shares.

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 purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of another
exchange-traded product that holds municipal securities and that will
enhance competition among market participants, to the benefit of
investors and the marketplace.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1, 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-NYSEArca-2015-25 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2015-25. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-

NYSEArca-2015-25 and should be submitted on or before May 12, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
---------------------------------------------------------------------------

    \27\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-09066 Filed 4-20-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 132 (Wednesday, July 10, 2013)]
[Rules and Regulations]
[Pages 41285-41286]
[FR Doc No: 2013-15532]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2013-0383; Directorate Identifier 2013-CE-008-AD;
Amendment 39-17498; AD 2013-13-10]
RIN 2120-AA64

Airworthiness Directives; Pilatus Aircraft Ltd. Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for all
PILATUS Aircraft Ltd. Model PC-7 airplanes. This AD results from
mandatory continuing airworthiness information (MCAI) issued by an
aviation authority of another country to identify and correct an unsafe
condition on an aviation product. The MCAI describes the unsafe
condition as a need to incorporate new revisions into the Limitations
section of the FAA-approved maintenance program (e.g., maintenance
manual). The limitations were revised to include an emergency fuel
control system adjustment test. We are issuing this AD to require
actions to address the unsafe condition on these products.

DATES: This AD is effective August 14, 2013.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of August 14,
2013.

ADDRESSES: You may examine the AD docket on the Internet at http://www.regulations.gov or in person at Document Management Facility, U.S.
Department of Transportation, Docket Operations, M-30, West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC
20590.
    For service information identified in this AD, contact PILATUS
AIRCRAFT LTD., Customer Technical Support (MCC), P.O. Box 992, CH-6371
STANS, Switzerland; telephone: +41 (0)41 619 67 74; fax: +41 (0)41 619
67 73; Internet: http://www.pilatus-aircraft.com or email:
<EMAIL_ADDRESS>You may review copies of the
referenced service information at the FAA, Small Airplane Directorate,
901 Locust, Kansas City, Missouri 64106. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Doug Rudolph, Aerospace Engineer, FAA,
Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri
64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
The NPRM was published in the Federal Register on April 26, 2013 (78 FR
24689). The NPRM proposed to correct an unsafe condition for the
specified products. The MCAI states:

    This Airworthiness Directive (AD) is prompted by changes to the
Airworthiness Limitations Section (ALS) of the Aircraft Maintenance
Manual (AMM), which adds life-limits, revises life-limits or adds
inspections not previously identified.
    These documents include the maintenance instructions and/or
airworthiness limitations developed by Pilatus Aircraft Ltd. and
approved by FOCA. Failure to comply with these instructions and
limitations could potentially lead to unsafe condition.
    Pilatus Aircraft Ltd. published Pilatus PC-7 AMM report no.
01715 revision 31 dated 30 November 2012 to incorporate a 300 Flight
Hour (FH) hour inspection on the Emergency Fuel Control System
(FCS).
    For the reason described above, this AD requires the
implementation and the compliance with this new maintenance
requirement.

You may obtain further information by examining the MCAI in the AD
docket.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the NPRM (78 FR 24689, April 26,
2013) or on the determination of the cost to the public.

Conclusion

    We reviewed the relevant data and determined that air safety and
the public interest require adopting the AD as proposed except for
minor editorial changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM (78 FR 24689, April 26, 2013) for correcting the unsafe condition;
and
     Do not add any additional burden upon the public than was
already proposed in the NPRM (78 FR 24689, April 26, 2013).

Costs of Compliance

    We estimate that this AD will affect 15 products of U.S. registry.
We also estimate that it will take about 1 work-hour per product to
comply with the basic requirements of this AD. The average labor rate
is $85 per work-hour. Required parts will cost about $10 per product.
    Based on these figures, we estimate the cost of this AD on U.S.
operators to be $1,425, or $95 per product.

Authority for This Rulemaking

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

Regulatory Findings

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

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains the NPRM (78 FR 24689, April 26,
2013), the regulatory

evaluation, any comments received, and other information. The street
address for the Docket Office (telephone<PHONE_NUMBER>) is in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2013-13-10 Pilatus Aircraft Ltd.: Amendment 39-17498; Docket No.
FAA-2013-0383; Directorate Identifier 2013-CE-008-AD.

(a) Effective Date

    This airworthiness directive (AD) becomes effective August 14,
2013.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to PILATUS Aircraft Ltd. Model PC-7 airplanes,
all serial numbers, certificated in any category.

(d) Subject

    Air Transport Association of America (ATA) Code 76: Engine
Controls.

(e) Reason

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) originated by an aviation authority of another
country to identify and correct an unsafe condition on an aviation
product. The MCAI describes the unsafe condition as a need to
incorporate new revisions into the Limitations section of the FAA-
approved maintenance program (e.g., maintenance manual). The
limitations were revised to include an emergency fuel control system
adjustment test. We are issuing this AD to ensure the continued
operational safety of the affected airplanes.

(f) Actions and Compliance

    Unless already done, do the following actions as specified in
paragraphs (f)(1) and (f)(2) of this AD:
    (1) Within the next 90 days after August 14, 2013 (the effective
date of this AD) and repetitively thereafter at intervals not to
exceed 300 hours time-in-service, do the Emergency Fuel Control
System-Adjustment/Test following the Functional Test Procedures on
pages 501 and 502 of Section 76-20-00, Emergency Fuel Control
System, of Chapter 76, Engine Controls, dated November 30, 2010,
found in PILATUS PC-7 Turbo Trainer Aircraft Maintenance Manual,
Document No. 01715, Revision 27 USA, dated November 30, 2010.

    Note 1 to paragraph (f)(1) of this AD:  Federal Office of Civil
Aviation of Switzerland AD No. HB-2013-003, dated April 2, 2013,
requires inserting, in its entirety, the revised Chapter/Section 05-
10-20, Time Limited Inspection Requirements, of PILATUS PC-7 Turbo
Trainer Aircraft Maintenance Manual, Document No. 01715, Revision
31, dated November 30, 2012, into the Limitations section of the
aircraft maintenance manual. However, only the section referring to
Chapter 76--Engine Controls found on page 4 of the revised Chapter 5
pertains to the requirements of this AD. Other chapters in the
revised Chapter 5 are covered in other AD actions.

    (2) As a result of the functional test required in paragraph
(f)(1) of this AD, if a discrepancy is found that is not identified
in the document listed in paragraph (f)(1) of this AD, before
further flight after finding the discrepancy, contact Pilatus
Aircraft Ltd. at the address specified in paragraph (i)(3) of this
AD for an FAA-approved repair scheme approved specifically for
compliance with this AD and incorporate the repair.

(g) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Standards Office, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. Send
information to ATTN: Doug Rudolph, Aerospace Engineer, FAA, Small
Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri
64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>Before using any approved AMOC on any airplane
to which the AMOC applies, notify your appropriate principal
inspector (PI) in the FAA Flight Standards District Office (FSDO),
or lacking a PI, your local FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.

(h) Related Information

    Refer to Federal Office of Civil Aviation (FOCA) AD HB-2013-003,
dated March 19, 2013, which can be found in the AD docket on the
Internet at http://www.regulations.gov, and PILATUS PC-7 Maintenance
Manual, Time Limited Inspection Requirements, 50-10-20, pages 1
through 6, dated November 30, 2012, which can be obtained from the
manufacturer at the address specified in paragraph (i)(3) of this
AD, for related information.

(i) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Emergency Fuel Control System-Adjustment/Test, pages 501 and
502 of Section 76-20-00, Emergency Fuel Control System, of Chapter
76, Engine Controls, dated November 30, 2010, found in PILATUS PC-7
Turbo Trainer Aircraft Maintenance Manual (AFM), Document No. 01715,
Revision 27 USA, dated November 30, 2010.

    Note 2 to paragraph (i)(2)(i) of this AD: The correct revision
level for the AFM is only indicated on page 1 of the Publication
Transmittal Letter.

    (ii) Reserved.
    (3) For PILATUS Aircraft Ltd. service information identified in
this AD, contact PILATUS AIRCRAFT LTD., Customer Technical Support
(MCC), P.O. Box 992, CH-6371 STANS, Switzerland; telephone: +41
(0)41 619 67 74; fax: +41 (0)41 619 67 73; Internet: http://
www.pilatus-aircraft.com or email<EMAIL_ADDRESS>    (4) You may view this service information at the FAA, Small
Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For
information on the availability of this material at the FAA, call
(816) 329-4148.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Kansas City, Missouri, on June 24, 2013.
John Colomy,
Acting Manager, Small Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2013-15532 Filed 7-9-13; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 86, Number 195 (Wednesday, October 13, 2021)]
[Proposed Rules]
[Pages 56845-56846]
[FR Doc No: 2021-22193]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0805; Airspace Docket No. 20-AWP-57]
RIN 2120-AA66

Proposed Modification of Class E Airspace; Inyokern Airport, CA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to modify the Class E airspace at
Inyokern Airport, Inyokern, CA. This action also proposes two
administrative updates to the Class E5 text header. This action would
ensure the safety and management of instrument flight rules (IFR)
operations at the airport.

DATES: Comments must be received on or before November 29, 2021.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, Washington, DC 20590; telephone:
1-800-647-5527, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2021-0805; Airspace Docket No. 20-AWP-57, at the beginning of your
comments. You may also submit comments through the internet at https://www.regulations.gov.
    FAA Order JO 7400.11F, Airspace Designations and Reporting Points,
and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order JO 7400.11F at NARA, email
[email protected] or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Matthew Van Der Wal, Federal Aviation
Administration, Western Service Center, Operations Support Group, 2200
S 216th Street, Des Moines, WA 98198; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority,
as it would modify the Class E airspace at Inyokern Airport, Inyokern,
CA, to support IFR operations at the airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Persons wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2021-0805;
Airspace Docket No. 20-AWP-57''. The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Northwest Mountain Regional Office of the Federal
Aviation Administration, Air Traffic Organization, Western Service
Center, Operations Support Group, 2200 S 216th Street, Des Moines, WA
98198.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order JO 7400.11F, Airspace
Designations and Reporting Points, dated August 10, 2021, and effective
September 15, 2021. FAA Order JO 7400.11F is publicly available as
listed in the ADDRESSES section of this document. FAA Order JO 7400.11F
lists Class A, B, C, D, and E airspace areas, air traffic service
routes, and reporting points.

The Proposal

    The FAA is proposing an amendment to 14 CFR part 71 by modifying
the Class E airspace, extending upward from 700 feet above the surface
at Inyokern Airport, Inyokern, CA. This airspace is designed to contain
departing IFR aircraft until reaching 1,200 feet above the surface and
arriving IFR aircraft descending below 1,500 feet above the surface. To
properly contain arriving IFR aircraft performing a circling maneuver,
the circular radius of the airport should be increased from ``2 miles''
to ``4 miles''. To properly contain departing IFR aircraft flying
toward or over rising terrain, the airspace southwest of the airport
should be widened and lengthened.
    This action also proposes two administrative updates to the Class
E5 text header. The airport name in the second line of the text header
should be amended from ``Inyokern Municipal Airport'' to ``Inyokern
Airport'', to match the FAA database. The geographic coordinates in the
third line of the text header should be updated to

``lat. 35[deg]39'31'' N, long. 117[deg]49'46'' W'', to match the FAA
database.
    Class E5 airspace designations are published in paragraph 6005 of
FAA Order JO 7400.11F, dated August 10, 2021, and effective September
15, 2021, which is incorporated by reference in 14 CFR 71.1. The Class
E airspace designations listed in this document will be published
subsequently in the Order.
    FAA Order JO 7400.11, Airspace Designations and Reporting Points,
is published yearly and effective on September 15.

Regulatory Notices and Analyses

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

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

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

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

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

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO
7400.11F, Airspace Designations and Reporting Points, dated August 10,
2021, and effective September 15, 2021, is amended as follows:

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

* * * * *

AWP CA E5 Inyokern, CA [Amended]

Inyokern Airport, CA
    (Lat. 35[deg]39'31'' N, long. 117[deg]49'46'' W)

    That airspace extending upward from 700 feet above the surface
within a 4-mile radius of the airport, and within 2.7 miles each
side of the 215[deg] bearing from the airport extending from the 4-
mile radius to 11.6 miles southwest of Inyokern Airport, excluding
that airspace within Restricted Area R-2505 and R-2506.

    Issued in Des Moines, Washington, on October 6, 2021.
B.G. Chew,
Acting Group Manager, Operations Support Group, Western Service Center.
[FR Doc. 2021-22193 Filed 10-12-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 102 (Wednesday, May 28, 2014)]
[Notices]
[Pages 30623-30624]
[FR Doc No: 2014-12295]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2012-E-1246]

Determination of Regulatory Review Period for Purposes of Patent
Extension; RESOLUTE INTEGRITY ZOTAROLIMUS-ELUTING CORONARY STENT SYSTEM

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) has determined the
regulatory review period for RESOLUTE INTEGRITY ZOTAROLIMUS-ELUTING
CORONARY STENT SYSTEM and is publishing this notice of that
determination as required by law. FDA has made the determination
because of the submission of an application to the Director of Patents
and Trademarks, Department of Commerce, for the extension of a patent
which claims that medical device.

ADDRESSES: Submit electronic comments to http://www.regulations.gov.
Submit written petitions (two copies are required) and written comments
to the Division of Dockets Management (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
Submit petitions electronically to http://www.regulations.gov at Docket
No. FDA-2013-S-0610.

FOR FURTHER INFORMATION CONTACT: Beverly Friedman, Office of
Management, Center for Drug Evaluation and Research, Food and Drug
Administration, 10903 New Hampshire Ave., Bldg. 51, Rm. 6257, Silver
Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Drug Price Competition and Patent Term
Restoration Act of 1984 (Pub. L. 98-417) and the Generic Animal Drug
and Patent Term Restoration Act (Pub. L. 100-670) generally provide
that a patent may be extended for a period of up to 5 years so long as
the patented item (human drug product, animal drug product, medical
device, food additive, or color additive) was subject to regulatory
review by FDA before the item was marketed. Under these acts, a
product's regulatory review period forms the basis for determining the
amount of extension an applicant may receive.
    A regulatory review period consists of two periods of time: A
testing phase and an approval phase. For medical devices, the testing
phase begins with a clinical investigation of the device and runs until
the approval phase begins. The approval phase starts with the initial
submission of an application to market the device and continues until
permission to market the device is granted. Although only a portion of
a regulatory review period may count toward the actual amount of
extension that the Director of Patents and Trademarks may award (half
the testing phase must be subtracted as well as any time that may have
occurred before the patent was issued), FDA's determination of the
length of a regulatory review period for a medical device will include
all of the testing phase and approval phase as specified in 35 U.S.C.
156(g)(3)(B).
    FDA has approved for marketing the medical device, RESOLUTE
INTEGRITY ZOTAROLIMUS-ELUTING CORONARY STENT SYSTEM. RESOLUTE INTEGRITY
ZOTAROLIMUS-ELUTING CORONARY STENT SYSTEM is indicated for improving
coronary luminal diameters in patients, including those with diabetes
mellitus, with symptomatic ischemic heart disease due to de novo
lesions of length less than or equal to 27 millimeters (mm) in native

coronary arteries with reference vessel diameters of 2.25 mm to 4.2 mm.
Subsequent to this approval, the Patent and Trademark Office received a
patent term restoration application for RESOLUTE INTEGRITY ZOTAROLIMUS-
ELUTING CORONARY STENT SYSTEM (U.S. Patent No. 7,419,696) from
Medtronic, Inc., and the Patent and Trademark Office requested FDA's
assistance in determining this patent's eligibility for patent term
restoration. In a letter dated March 4, 2013, FDA advised the Patent
and Trademark Office that this medical device had undergone a
regulatory review period and that the approval of RESOLUTE INTEGRITY
ZOTAROLIMUS-ELUTING CORONARY STENT SYSTEM represented the first
permitted commercial marketing or use of the product. Thereafter, the
Patent and Trademark Office requested that FDA determine the product's
regulatory review period.
    FDA has determined that the applicable regulatory review period for
RESOLUTE INTEGRITY ZOTAROLIMUS-ELUTING CORONARY STENT SYSTEM is 1,586
days. Of this time, 1,263 days occurred during the testing phase of the
regulatory review period, while 323 days occurred during the approval
phase. These periods of time were derived from the following dates:
    1. The date an exemption under section 520(g) of the Federal Food,
Drug, and Cosmetic Act (the FD&C Act) (21 U.S.C. 360j(g)) involving
this device became effective: October 17, 2007. The applicant claims
that the investigational device exemption (IDE) required under section
520(g) of the FD&C Act for human tests to begin became effective on
June 13, 2008. However, FDA records indicate that the IDE was
determined substantially complete for clinical studies to have begun on
October 17, 2007, which represents the IDE effective date.
    2. The date an application was initially submitted with respect to
the device under section 515 of the FD&C Act (21 U.S.C. 360e): April 1,
2011. FDA has verified the applicant's claim that the premarket
approval application (PMA) for RESOLUTE INTEGRITY ZOTAROLIMUS-ELUTING
CORONARY STENT SYSTEM (PMA P110013) was initially submitted April 1,
2011.
    3. The date the application was approved: February 17, 2012. FDA
has verified the applicant's claim that PMA P110013 was approved on
February 17, 2012.
    This determination of the regulatory review period establishes the
maximum potential length of a patent extension. However, the Patent and
Trademark Office applies several statutory limitations in its
calculations of the actual period for patent extension. In its
application for patent extension, this applicant seeks 794 days of
patent term extension.
    Anyone with knowledge that any of the dates as published are
incorrect may submit to the Division of Dockets Management (see
ADDRESSES) either electronic or written comments and ask for a
redetermination by July 28, 2014. Furthermore, any interested person
may petition FDA for a determination regarding whether the applicant
for extension acted with due diligence during the regulatory review
period by November 24, 2014. To meet its burden, the petition must
contain sufficient facts to merit an FDA investigation. (See H. Rept.
857, part 1, 98th Cong., 2d sess., pp. 41-42, 1984.) Petitions should
be in the format specified in 21 CFR 10.30.
    Interested persons may submit to the Division of Dockets Management
(see ADDRESSES) electronic or written comments and written or
electronic petitions. It is only necessary to send one set of comments.
Identify comments with the docket number found in brackets in the
heading of this document. If you submit a written petition, two copies
are required. A petition submitted electronically must be submitted to
http://www.regulations.gov, Docket No. FDA-2013-S-0610. Comments and
petitions that have not been made publicly available on http://www.regulations.gov may be viewed in the Division of Dockets Management
between 9 a.m. and 4 p.m., Monday through Friday.

    Dated: May 21, 2014.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2014-12295 Filed 5-27-14; 8:45 am]
BILLING CODE 4160-01-P