[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Rules and Regulations]
[Pages 6321-6323]
[FR Doc No: 2019-03257]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-1003; Product Identifier 2018-NM-133-AD; Amendment
39-19567; AD 2019-03-15]
RIN 2120-AA64

Airworthiness Directives; Airbus SAS 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 certain
Airbus SAS Model A330-201, -202, and -203 airplanes, and Model A330-
301, -302, and -303 airplanes. This AD was prompted by reports of
damaged drain pipes located above the lower aft pylon fairing (LAPF),
caused by a contact between the drain pipe and the two u-shape ribs of
the LAPF. This AD requires a special detailed inspection for damage,
and corrective actions if necessary. We are issuing this AD to address
the unsafe condition on these products.

DATES: This AD is effective April 3, 2019.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of April 3,
2019.

ADDRESSES: For service information identified in this final rule,
contact Airbus SAS, Airworthiness Office--EAL, Rond-Point Emile
Dewoitine No: 2, 31700 Blagnac Cedex, France; phone: +33 5 61 93 36 96;
fax: +33 5 61 93 45 80; email<EMAIL_ADDRESS>
internet: http://www.airbus.com. You may view this service information
at the FAA, Transport Standards Branch, 2200 South 216th St., Des
Moines, WA. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>. It is also available on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
1003.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
1003; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, the regulatory evaluation, any comments received, and
other information. The address for Docket Operations (phone: 800-647-
5527) is U.S. Department of Transportation, Docket Operations, M-30,
West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Vladimir Ulyanov, Aerospace Engineer,
International Section, Transport Standards Branch, FAA, 2200 South
216th St., Des Moines, WA 98198; phone and fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain Airbus SAS Model
A330-201, -202, and -203 airplanes, and Model A330-301, -302, and -303
airplanes. The NPRM published in the Federal Register on December 6,
2018 (83 FR 62738). The NPRM was prompted by reports of damaged drain
pipes located above the LAPF, caused by a contact between the drain
pipe and the two u-shape ribs of the LAPF. The NPRM proposed to require
a special detailed inspection for damage, and corrective actions if
necessary.
    We are issuing this AD to address damaged drain pipes located above
the LAPF, which, combined with an additional independent failure, could
lead to hydraulic leakage in the LAPF box, possibly resulting in a
temporary uncontrolled fire and consequent reduced control of the
airplane.
    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA AD
2018-0198, dated September 6, 2018 (referred to after this as the
Mandatory Continuing Airworthiness Information, or ``the MCAI''), to
correct an unsafe condition for certain Airbus SAS Model A330-201, -
202, and -203 airplanes, and Model A330-301, -302, and -303 airplanes.
The MCAI states:

    Some cases of damaged drain pipes, Part Number F7173000700000,
located above the Lower Aft Pylon Fairing (LAPF) and dedicated to
drain pylon compartment A in case of hydraulic fluid leakage, were
reported. Subsequent examination identified that the cracks were
caused by a contact between the drain pipe and the two U-Shape Ribs
of the LAPF. This interference condition can be present during the
installation of the LAPF assembly to the pylon. The trailing edge
assembly of the fairing has an internal frame bracket and shear clip
which can cause chafing with the hydraulic drain pipes.
    This condition, if not detected and corrected, combined with an
additional independent failure as hydraulic leakage in

pylon compartment A, could lead to hydraulic leakage in the LAPF
box. In addition, the hydraulic fluid may flow forward of the LAPF
and leak above engine hot surfaces, possibly resulting in a
temporary uncontrolled fire in the pylon compartment A, and
consequent reduced control of the aeroplane.
    To address this unsafe condition, Airbus issued the inspection
SB [Airbus Service Bulletin A330-54-3042, dated May 17, 2018] to
provide instructions for a special detailed inspection (SDI) of the
LAPF drain pipes.
    For the reasons described above, this [EASA] AD requires a one-
time SDI (borescope inspection method) of the LAPF of each pylon
[for damage (including but not limited to cracks and leaks of the
hydraulic drain pipe, and contact, interference, and chafing of the
internal frame bracket and the shear clip of the trailing edge
assembly of the LAPF with the aircraft hydraulic drain pipe)] and,
depending on findings, replacement of the LAPF drain pipes and clamp
block, and rework of the U-shape ribs.

    You may examine the MCAI in the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
1003.

Comments

    We gave the public the opportunity to participate in developing
this final rule. We have considered the comment received. Air Line
Pilots Association, International (ALPA) indicated its support for the
NPRM.

Conclusion

    We reviewed the relevant data, considered the comment received, and
determined that air safety and the public interest require adopting
this final rule 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 for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    Airbus has issued the following service information.
     Airbus Service Bulletin A330-54-3041, dated May 17, 2018.
This service information describes procedures for replacement of the
pylon drain pipe clamp blocks of the LAPFs of the left-hand (LH) and
right-hand (RH) pylons and modification of the LAPFs.
     Airbus Service Bulletin A330-54-3042, dated May 17, 2018.
This service information describes procedures for a special detailed
inspection for damage (including but not limited to cracks and leaks of
the pylon drain pipe, and contact, interference, and chafing of the
internal frame bracket and the shear clip of the trailing edge assembly
of the LAPF with the aircraft pylon drain pipe), and corrective
actions. Corrective actions include replacement of the pylon drain pipe
at the LH or RH pylon.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects 10 airplanes of U.S. registry. We
estimate the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
                          Labor cost                              Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
2 work-hours x $85 per hour = $170...........................              $0             $170           $1,700
----------------------------------------------------------------------------------------------------------------

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

                                     Estimated Costs of On-Condition Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                                  Labor cost                                       Parts cost        product
----------------------------------------------------------------------------------------------------------------
29 work-hours x $85 per hour = $2,465.........................................          $1,640           $4,105
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some or all of the costs of this AD
may be covered under warranty, thereby reducing the cost impact on
affected individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all known costs in our cost
estimate.

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.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to transport category airplanes and
associated appliances to the Director of the System Oversight Division.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and

responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under 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.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2019-03-15 Airbus SAS: Amendment 39-19567; Docket No. FAA-2018-1003;
Product Identifier 2018-NM-133-AD.

(a) Effective Date

    This AD is effective April 3, 2019.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to the Airbus SAS airplanes identified in
paragraphs (c)(1) and (c)(2) of this AD, certificated in any
category, all manufacturer serial numbers, except those on which
Airbus modification 207430 has been embodied in production, or
Airbus Service Bulletin A330-54-3041 has been embodied in service.
    (1) Model A330-201, -202, and -203 airplanes.
    (2) Model A330-301, -302, and -303 airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 54, Nacelles/
pylons.

(e) Reason

    This AD was prompted by reports of damaged drain pipes located
above the lower aft pylon fairing (LAPF), caused by a contact
between the drain pipe and the two u-shape ribs of the LAPF. We are
issuing this AD to address damaged drain pipes located above the
LAPF, which, combined with an additional independent failure, could
lead to hydraulic leakage in the LAPF box, possibly resulting in a
temporary uncontrolled fire and consequent reduced control of the
airplane.

(f) Compliance

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

(g) One-Time Inspections

    Within 26 months after the effective date of this AD, accomplish
a one-time special detailed inspection of the pylon drain pipes
(inside and outside) on the left-hand and right-hand pylons, located
above both LAPFs, for contact with the U-shaped ribs of the LAPF and
damage (including but not limited to cracks and leaks of the pylon
drain pipe, and contact, interference, and chafing of the internal
frame bracket and the shear clip of the trailing edge assembly of
the LAPF with the pylon drain pipe) in accordance with the
Accomplishment Instructions of Airbus Service Bulletin A330-54-3042,
dated May 17, 2018.

(h) Corrective Actions

    If, during any inspection required by paragraph (g) of this AD,
any damage is found, at the applicable time specified in Airbus
Service Bulletin A330-54-3042, dated May 17, 2018, accomplish the
applicable corrective actions on the affected pylon in accordance
with the Accomplishment Instructions of Airbus Service Bulletin
A330-54-3042, dated May 17, 2018; and Airbus Service Bulletin A330-
54-3041, dated May 17, 2018.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Section, Transport Standards Branch, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the International Section, send it to the attention of
the person identified in paragraph (j)(2) of this AD. Information
may be emailed to<EMAIL_ADDRESS>Before using any
approved AMOC, notify your appropriate principal inspector, or
lacking a principal inspector, the manager of the local flight
standards district office/certificate holding district office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, International
Section, Transport Standards Branch, FAA; or the European Aviation
Safety Agency (EASA); or Airbus SAS's EASA Design Organization
Approval (DOA). If approved by the DOA, the approval must include
the DOA authorized signature.
    (3) Required for Compliance (RC): If any service information
contains procedures or tests that are identified as RC, those
procedures and tests must be done to comply with this AD; any
procedures or tests that are not identified as RC are recommended.
Those procedures and tests that are not identified as RC may be
deviated from using accepted methods in accordance with the
operator's maintenance or inspection program without obtaining
approval of an AMOC, provided the procedures and tests identified as
RC can be done and the airplane can be put back in an airworthy
condition. Any substitutions or changes to procedures or tests
identified as RC require approval of an AMOC.

(j) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA AD 2018-0198, dated September 6, 2018, for related
information. This MCAI may be found in the AD docket on the internet
at http://www.regulations.gov by searching for and locating Docket
No. FAA-2018-1003.
    (2) For more information about this AD, contact Vladimir
Ulyanov, Aerospace Engineer, International Section, Transport
Standards Branch, FAA, 2200 South 216th St., Des Moines, WA 98198;
phone and fax:<PHONE_NUMBER>.

(k) 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 this AD specifies otherwise.
    (i) Airbus Service Bulletin A330-54-3041, dated May 17, 2018.
    (ii) Airbus Service Bulletin A330-54-3042, dated May 17, 2018.
    (3) For service information identified in this AD, contact
Airbus SAS, Airworthiness Office--EAL, Rond-Point Emile Dewoitine
No: 2, 31700 Blagnac Cedex, France; phone: +33 5 61 93 36 96; fax:
+33 5 61 93 45 80; email<EMAIL_ADDRESS>
internet: http://www.airbus.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call
206-231-3195.
    (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 Des Moines, Washington, on February 14, 2019.
Michael Kaszycki,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2019-03257 Filed 2-26-19; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: October 9, 2007 (Volume 72, Number 194)]
[Notices]
[Page 57362-57364]
[DOCID:fr09oc07-118]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56593; File No. SR-NYSEArca-2007-96]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Order Granting Accelerated Approval of Proposed Rule Change, as
Modified by Amendment No. 1 Thereto, To Amend the Initial Listing
Standards for Index-Linked Securities

October 1, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 17, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''),
through its wholly owned subsidiary, NYSE Arca Equities, Inc. (``NYSE
Arca Equities''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which items have been substantially prepared by the Exchange.
On September 27, 2007, the Exchange filed Amendment No. 1 to the
proposed rule change. This order provides notice of and approves the
proposed rule change, as modified by Amendment No. 1 thereto, on an
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6)(a)
to (i) permit the listing of Index-Linked Securities \3\ that do not
meet the one million publicly held trading units and/or the 400 minimum
number of public holders initial distribution requirements, subject to
certain conditions, (ii) decrease the minimum principal amount/market
value of $20 million to $4 million for an initial listing of Index-
Linked Securities, and (iii) make a non-substantive clarification to
the cross-reference to ``General Criteria.'' The text of the proposed
rule change is available at the Exchange, the Commission's Public
Reference Room, and http://www.nyse.com.

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    \3\ Index-Linked Securities are defined as securities that
provide for the payment at maturity of a cash amount based on the
performance of an underlying index or indexes. See NYSE Arca
Equities Rule 5.2(j)(6).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

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

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

1. Purpose
    The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6)(a)
to permit the listing of Index-Linked Securities that do not meet the
one million publicly held trading units and/or the 400 minimum number
of public holders initial distribution requirements, subject to certain
conditions. The Commission has approved a similar proposal filed by the
New York Stock Exchange LLC (``NYSE'').\4\
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    \4\ See Securities Exchange Act Release No. 56271 (August 16,
2007), 72 FR 47107 (August 22, 2007) (SR-NYSE-2007-74).
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    NYSE Arca Equities Rule 5.2(j)(6)(a) generally requires that each
issue of Index-Linked Securities have at least one million publicly
held trading units and that there be at least 400 public beneficial
holders of such securities, provided that, if the issue of Index-Linked
Securities is traded in thousand dollar denominations, the 400 minimum
public beneficial holders initial distribution requirement would not
apply. The Exchange proposes to add an additional exemption from the
general requirements of NYSE Arca Equities Rule 5.2(j)(6)(a) such that,
if an issue of Index-Linked Securities are redeemable at the option of
the holders thereof on at least a weekly basis, both the minimum one
million publicly held trading units and 400 beneficial holders initial
distribution requirements would not apply.
    The Exchange believes that, where there is such a weekly redemption
right, the same justification exists for an exemption from the
requirement to have one million units issued at the time of listing and
the minimum 400 public

beneficial holders requirement. The Exchange believes that a weekly
redemption right should ensure a strong correlation between the market
price of the Index-Linked Securities and the performance of the
underlying index or asset, as the case may be, as holders would be
unlikely to sell their securities for less than their redemption value
if they have a weekly right to be redeemed for their full value. In
addition, in the case of those Index-Linked Securities with a weekly
redemption feature that are currently listed, as well as all of those
that are currently proposed to be listed, the issuer has the ability to
issue new Index-Linked Securities from time to time at the indicative
value at the time of such sale. This provides a ready supply of new
Index-Linked Securities, thereby lessening the possibility that the
market price of such securities would be affected by a scarcity of
available Index-Linked Securities for sale. The Exchange believes that
it also assists in maintaining a strong correlation between the market
price and the indicative value, as investors would be unlikely to pay
more than the indicative value in the open market if they can acquire
Index-Linked Securities from the issuer at that price.
    The Exchange states that the ability to list Index-Linked
Securities with these characteristics without any minimum number of
units issued or holders is important to the successful listing of such
securities. Issuers distributing these types of Index-Linked Securities
generally do not intend to do so by way of an underwritten offering.
Rather, the distribution arrangement is analogous to that of an
exchange-traded fund issuance, in that the issue is launched without
any significant distribution event, and the float increases over time
as investors purchase additional securities from the issuer at the then
indicative value. Investors would generally seek to purchase the
securities at a point when the underlying index or asset is at a level
that they perceive would provide an attractive growth opportunity. In
the context of such a distribution arrangement, it is difficult for an
issuer to guarantee its ability to sell a specific number of units on
the listing date. However, the Exchange believes that this difficulty
in ensuring the sale of one million units on the listing date is not
indicative of a likely long-term lack of liquidity in the securities
or, for the reasons set forth above, of a difficulty in establishing a
pricing equilibrium in the securities or a successful two-sided market.
    With respect to each issue of Index-Linked Securities, NYSE Arca
Equities Rule 5.2(j)(1) generally requires a minimum principal amount/
market value of $20 million. The Exchange proposes to amend NYSE Arca
Equities Rule 5.2(j)(6)(a) to decrease the minimum principal amount/
market value from $20 million to $4 million. The Exchange seeks to
conform this minimum principal amount/market value requirement to
similar initial listing requirements for Index-Linked Securities of
other national securities exchanges.\5\
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    \5\ See, e.g., Section 703.22(B)(3) of the NYSE Listed Company
Manual; Section 107(A)(c) of the American Stock Exchange LLC Company
Guide; and Rule 4420(f)(1)(D) of The NASDAQ Stock Market LLC.
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    Finally, the Exchange proposes to make a non-substantive
clarification to NYSE Arca Equities Rule 5.2(j)(6)(a) to replace the
internal cross-reference to ``General Criteria'' with the reference to
NYSE Arca Equities Rule 5.2(j)(1), which sets forth the general initial
listing requirements for ``Other Securities,'' such as Index-Linked
Securities.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    Written comments on the proposed rule change were neither solicited
nor received.

III. Solicitation of Comments

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

Electronic Comments

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

Number SR-NYSEArca-2007-96 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2007-96. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments,

all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal 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-2007-96 and should
be submitted on or before October 30, 2007.

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

    After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to

a national securities exchange \8\ and, in particular, the requirements
of Section 6 of the Act.\9\ Specifically, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\10\
which requires, among other things, that the rules of a national
securities exchange be designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
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    \8\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the proposal should benefit investors
by providing an exception to the minimum public distribution
requirements for Index-Linked Securities with a weekly redemption
right. The Commission believes that the market price of Index-Linked
Securities with a weekly redemption right should exhibit a strong
correlation to the performance of the relevant underlying index or
asset, since holders of such securities would be unlikely to sell them
for less than their redemption value if they have a weekly right to be
redeemed for their full value. The Commission believes that this
exception is reasonable and should allow for the listing and trading of
certain Index-Linked Securities that would otherwise not be able to be
listed and traded on the Exchange.
    The Commission finds good cause for approving the proposed rule
change prior to the 30th day after the date of publication of the
notice of filing thereof in the Federal Register The Commission notes
that it has approved a similar proposal filed by NYSE \11\ and similar
initial distribution requirements for Index-Linked Securities of other
national securities exchanges \12\ and does not believe that this
proposal raises any novel regulatory issues. Accelerating approval of
this proposal should benefit investors by creating, without undue
delay, additional competition in the market for Index-Linked
Securities. Therefore, the Commission finds good cause, consistent with
Section 19(b)(2) of the Act,\13\ to approve the proposed rule change on
an accelerated basis.
---------------------------------------------------------------------------

    \11\ See supra note 4.
    \12\ See supra note 5.
    \13\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\14\ that the proposed rule change (SR-NYSEArca-2007-96) be, and it
hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \14\ Id.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
Nancy M. Morris,
Secretary.
---------------------------------------------------------------------------

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

 [FR Doc. E7-19764 Filed 10-5-07; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)]
[Proposed Rules]
[Pages 49934-49936]
[FR Doc No: 2015-20298]

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

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2015-1496; Notice No. 25-15-07-SC]

Special Conditions: Gulfstream Model GVII-G500 Airplanes, Side-
Stick Controllers; Controllability and Maneuverability

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed special conditions.

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SUMMARY: This action proposes special conditions for Gulfstream Model
GVII-G500 airplanes. These airplanes will have a novel or unusual
design feature associated with side-stick controllers, instead of
conventional-control wheel-and-column design, for pitch and roll
control. The applicable airworthiness regulations do not contain
adequate or appropriate safety standards for this design feature. These
proposed special conditions contain the additional safety standards
that the Administrator considers necessary to establish a level of
safety equivalent to that established by the existing airworthiness
standards.

DATES: Send your comments on or before October 2, 2015.

ADDRESSES: Send comments identified by docket number FAA-2015-1496
using any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.

    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov/ gov/.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington DC, between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Joe Jacobsen, FAA, Airplane and Flight
Crew Interface Branch, ANM-111, Transport Airplane Directorate,
Aircraft Certification Service, 1601 Lind Avenue SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; facsimile (425) 227-
1320.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite interested people to take part in this rulemaking by
sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.
    We will consider all comments we receive by the closing date for
comments. We may change these proposed special conditions based on the
comments we receive.

Background

    On March 29, 2012, Gulfstream Aerospace Corporation applied for a
type certificate for their new Model GVII-G500 airplane. The Model
GVII-G500 will be a large-cabin business jet with seating for 19
passengers. It will incorporate a low, swept-wing design with winglets
and a T-tail. The powerplant will consist of two aft-fuselage-mounted
Pratt & Whitney turbofan engines. Avionics will include four primary
display units and multiple touchscreen controllers. The flight-control
system is a three-axis, fly-by-wire (FBW) system incorporating active
control/coupled side sticks.
    The Model GVII-G500 will have a wingspan of approximately 87 ft.
and a length of just over 91 ft. Maximum takeoff weight will be
approximately 76,850 lbs and maximum takeoff thrust will be
approximately 15,135 lbs. Maximum range will be approximately 5,000 nm
and maximum operating altitude will be 51,000 ft.
    The Model GVII-G500 airplane will incorporate a FBW flight-control
system, through side-stick controllers, for pitch and roll control.
Regulatory requirements, such as the pilot-control forces prescribed in
the referenced regulations, are not applicable for the side-stick
controller design. In addition, pilot-control authority may be
uncertain because the side-stick controllers are not mechanically
interconnected to flight controls as are conventional wheel-and-column
controls.

Type Certification Basis

    Under Title 14, Code of Federal Regulations (14 CFR) 21.17,
Gulfstream must show that the Model GVII-G500 airplane meets the
applicable provisions of 14 CFR part 25, effective February 1, 1965,
including Amendments 25-1 through 25-137; 14 CFR part 34, as amended by
Amendments 34-1 through the most current amendment at time of design
approval; and 14 CFR part 36, Amendment 36-29.
    In addition, the certification basis includes other regulations,
special conditions, and exemptions that are not relevant to these
proposed special conditions. Type Certificate no. TC-01-2010-0024 will
be updated to include a complete description of the certification basis
for this airplane model.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Gulfstream Model GVII-G500
airplane because of a novel or unusual design feature, special
conditions are prescribed under Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same or similar
novel or unusual design feature, the proposed special conditions would
also apply to the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and
proposed special conditions, Gulfstream Model GVII-G500 airplanes must
comply with the fuel-vent and exhaust-emission requirements of 14 CFR
part 34, and the noise-certification requirements of 14 CFR part 36;
and the FAA must issue a finding of regulatory adequacy under Sec.  611
of Public Law 92-574, the ``Noise Control Act of 1972.''
    The FAA issues special conditions, as defined in 14 CFR 11.19,
under Sec.  11.38, and they become part of the type certification basis
under Sec.  21.17(a)(2).

Novel or Unusual Design Features

    Gulfstream Model GVII-G500 airplanes will incorporate the following
novel or unusual design feature:
    Side-stick controllers incorporating fly-by-wire technology for
pitch and roll control, in place of conventional wheel-and-column
controls.

Discussion

    These proposed special conditions for the Gulfstream Model GVII-
G500 airplane address the unique features of the side-stick
controllers. The Model GVII-G500 airplane will incorporate side-stick
controllers controlling a FBW flight-control system. The FBW control
laws are designed to provide conventional flying qualities such as
positive static longitudinal and lateral stability as prescribed in
part 25, subpart B. However, the pilot-control forces prescribed in the
referenced regulations are not applicable for the side-stick controller
design.
    Because current FAA regulations do not specifically address the use
of side-stick controllers for pitch and roll control, the unique
features of the side stick therefore must be demonstrated, through
flight and simulator tests, to have suitable handling and control
characteristics when considering the following:
     The handling-qualities tasks and requirements of the
Gulfstream Model GVII-G500 Special Conditions and other 14 CFR part 25
requirements for stability, control, and maneuverability, including the
effects of turbulence.
     General ergonomics: Armrest comfort and support, local
freedom of movement, displacement-angle suitability, and axis harmony.
     Inadvertent pilot input in turbulence.
     Inadvertent pitch and roll crosstalk from pilot inputs on
the side-stick controller.

Applicability

    As discussed above, these proposed special conditions apply to
Gulfstream Model GVII-G500 airplanes. Should Gulfstream apply later for
a change to the type certificate to include another model incorporating
the same or similar novel or unusual design feature, the proposed
special conditions would apply to that model as well.

Conclusion

    This action affects only certain novel or unusual design features
on Gulfstream Model GVII-G500 airplanes. It is not a rule of general
applicability.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701, 44702, 44704.

The Proposed Special Conditions

    The current airworthiness regulations pertaining to pilot strength
and controllability for conventional-control column-and-wheel designs
do not adequately address the side-stick controllers proposed for the
Gulfstream Model GVII-G500 airplane. Accordingly, the FAA proposes the
following special conditions as part of the type certification basis
for Gulfstream GVII-G500 airplanes, in lieu of Sec. Sec.  25.143(d),
25.143(i)(2), 25.145(b), 25.173(c), 25.175(b), and 25.175(d):
    Pilot strength: In lieu of the control-force limits shown in Sec.
25.143(d) for pitch and roll, and in lieu of specific pitch-force
requirements of Sec. Sec.  25.143(i)(2), 25.145(b), 25.173(c),
25.175(b), and 25.175(d), Gulfstream must show that the temporary and
maximum prolonged-force levels for the side-stick controllers are
suitable for all expected operating conditions and configurations,
whether normal or non-normal.
    Pilot-control authority: The electronic side-stick-controller
coupling design must provide for corrective and overriding control
inputs by either pilot with no unsafe characteristics. Annunciation of
the controller status must be provided, and must not be confusing to
the flightcrew.
    Pilot control: Gulfstream must show by flight tests that the use of
side-stick controllers does not produce unsuitable pilot-in-the-loop
control characteristics when considering precision path control and
tasks, and turbulence. In addition, pitch and roll control force and
displacement sensitivity must be compatible, so that normal pilot
inputs on one control axis will not cause significant unintentional
inputs (crossover) on the other.

    Issued in Renton, Washington, on August 5, 2015.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-20298 Filed 8-17-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 146 (Tuesday, July 30, 2019)]
[Notices]
[Pages 36987-36989]
[FR Doc No: 2019-16094]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86457; File No. SR-LCH SA-2019-004]

Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change, as Modified by
Amendments No. 1 and No. 2, Relating to the Extension to Clients of
CDSClear of the Fee Applicable by LCH SA on the Amount of Allocated
Securities Collateral

July 24, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 9, 2019, Banque Centrale de Compensation, which conducts
business under the name LCH SA (``LCH SA''), filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change
described in Items I, II and III below, which Items

have been prepared by LCH SA. On July 10, 2019, LCH SA filed Amendment
No. 1 to the proposed rule change.\3\ On July 24, 2019, LCH SA filed
Amendment No. 2 to the proposed rule change.\4\ LCH SA filed the
proposal pursuant to Section 19(b)(3)(A) of the Act,\5\ and Rule 19b-
4(f)(2) \6\ thereunder, so that the proposal was effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change, as modified by Amendments
No. 1 and No. 2 (hereafter referred to as the ``proposed rule
change''), from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 corrected a technical issue with the initial
filing of the proposed rule change but did not make any changes to
the substance of the filing or the text of the proposed rule change.
    \4\ Amendment No. 2 provided a confidential Exhibit 3 to further
substantiate statements made in the filing but did not make any
changes to the substance of the filing or the text of the proposed
rule change.
    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice

    The proposed rule change will extend to the clients of LCH SA
CDSClear service the current fee applicable on the amount of allocated
securities collateral posted by any clearing member or any other client
of LCH SA.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

A. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice

1. Purpose
    As specified in the table below, the current LCH SA fee grid
charges a 10bp fee on the amount of allocated securities collateral,
except for clients of LCH SA CDSClear service, which are free of
charge.

                                   Current LCH SA CDSClear Collateral Fee Grid
----------------------------------------------------------------------------------------------------------------
                                                                        Cash collateral fee/spread
             Currency               Unsecured overnight --------------------------------------------------------
                                           index                 House                       Client
----------------------------------------------------------------------------------------------------------------
EUR..............................  EONIA...............  30 bps..............  15 bps.
GBP..............................  SONIA...............  35 bps..............  20 bps.
USD..............................  FEDFUND.............  30 bps..............  15 bps.
----------------------------------------------------------------------------------------------------------------
Allocated securities collateral fee/spread               House...............  Client
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
                                                         10 bps..............  Free of charge.
----------------------------------------------------------------------------------------------------------------

    The purpose of the proposed fee change is to align the CDSClear fee
grid with other LCH SA business lines and introduce a new fee amount
for securities collateral posted by CDSClear clients.
    No amendments to the LCH SA CDS Clearing Rules are required to
effect these changes.
    As specified in Exhibit 5, the proposed change is for LCH SA
CDSClear to charge a 10bp fee on the amount of allocated securities
posted as collateral by the clients using CDSClear service.
2. Statutory Basis
    Section 17A(b)(3)(D) of the Act requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges.\7\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

    LCH SA believes that proposing such clearing fee change is
consistent with the requirements of Section 17A of the Act \8\ and the
regulations thereunder applicable to it, and in particular provides for
the equitable allocation of reasonable fees, dues, and other charges
among clearing members and market participants by ensuring that
clearing members and clients pay reasonable fees and dues for the
services provided by LCH SA, within the meaning of Section 17A(b)(3)(D)
of the Act.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    The proposed clearing fee change is already applicable by LCH SA on
the amount of allocated securities collateral posted by all clearing
members and clients of Non-US Business'.\9\ The objective is to extend
it to clients using CDSClear service and apply it equally to all market
participants within the CCP.
---------------------------------------------------------------------------

    \9\ See the definition under Order Granting Application for
Registration as a Clearing Agency and Request for Exemptive Relief,
Order, Securities Exchange Act Release No. 34-79707; File No. 600-36
(Dec. 29, 2016), 82 FR 1398 (Jan. 5, 2017) (available at https://www.federalregister.gov/documents/2017/01/05/2016-31940/self-regulatory-organizations-lch-sa-order-granting-application-for-registration-as-a-clearing).
---------------------------------------------------------------------------

    Further, LCH SA believes that the proposed fee amount is reasonable
and has been set up at an appropriate level given the costs, expenses
and revenues (to be) generated to LCH SA in providing such services.

B. Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\10\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    LCH SA does not believe that the proposed rule change would impose
any burden on competition, as it is already applicable within the CCP
and will also be extended to clients using CDSClear service for
consistency purposes.
    Additionally, the proposed fee change will apply equally to all
CDSClear clearing members and clients as well and does not adversely
affect the ability of such clients or other market participants
generally to engage in cleared transactions or to access clearing
services.
    Further, LCH SA believes that the fee amount has been set up at an
appropriate level given the costs and

expenses to LCH SA in offering the relevant clearing services.

C. Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments relating to the proposed rule change have not been
solicited or received but a consultation has been conducted with and
feedback sought from CDSClear members. No comment or question has been
received following this consultation. LCH SA will notify the Commission
of any written comments received by LCH SA.

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

    The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) \11\ of the Act and Rule 19b-4(f)(2)
\12\ thereunder because it establishes a fee or other charge imposed by
LCH SA on its Clearing Members. At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such proposed rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
     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-LCH SA-2019-004 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-LCH SA-2019-004. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of LCH SA and on LCH SA's website
at https://www.lch.com/resources/rules-and-regulations/proposed-rule-changes-0. All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-LCH SA-2019-004 and should
be submitted on or before August 20, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-16094 Filed 7-29-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 19, 2010 (Volume 75, Number 137)]
[Rules and Regulations]
[Page 41760-41762]
[DOCID:fr19jy10-7]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2010-0646]
RIN 1625-AA00

Safety Zone; Transformers 3 Movie Filming, Chicago River,
Chicago, IL

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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

SUMMARY: The Coast Guard is establishing a temporary safety zone on the
Chicago River near Chicago, Illinois. This zone is intended to restrict
vessels from a portion of the Chicago River due to the filming of a
major motion picture. This temporary safety zone is necessary to
protect the surrounding public and vessels from the hazards associated
with the different types of stunts that will be performed during the
filming of this movie.

DATES: Effective Date: this rule is effective in the CFR from July 19,
2010 until 9 p.m. on July 19, 2010. This rule is effective with actual
notice for purposes of enforcement beginning 7 a.m. on July 16, 2010.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2010-0646 and are available online
by going to http://www.regulations.gov, inserting USCG-2010-0646 in the
``Keyword'' box, and then clicking ``search.'' They are also available
for inspection or copying at the Docket Management Facility (M-30),
U.S. Department of Transportation, West Building Ground floor, Room
W12-140, 1200 New Jersey Avenue, SE., Washington DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary rule, contact or email BM1 Adam Kraft, U.S. Coast Guard
Sector Lake Michigan, at<PHONE_NUMBER> or<EMAIL_ADDRESS>If you
have questions on viewing the docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Regulatory Information

    The Coast Guard is issuing this temporary final rule without prior
notice and opportunity to comment pursuant to authority under section
4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when an agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under U.S.C. 553 (b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to the fact that the application for this event was not
submitted to our office in time to allow for publishing an NPRM. Based
on the hazards associated with the filming of this major motion
picture, delaying the publication of this rule to provide for a comment
would be contrary to public interest as immediate action is necessary
to protect the public.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register because delaying the effective date
would be contrary to the public interest since immediate action is
needed to protect the public and the event would be over by the time
the 30 day period is completed.

Basis and Purpose

    This temporary safety zone is necessary to protect vessels from the
hazards associated with the filming of the major motion picture,
Transformers 3. The combination of congested waterways and the filming
of dangerous stunts taking place on or near the water pose serious
risks of injury to persons and property. As such, the Captain of the
Port, Sector Lake Michigan, has determined that the filming of this
motion picture does pose significant risks to public safety and
property and that a temporary safety zone is necessary.

Discussion of Rule

    The safety zone will encompass all U.S. navigable waters of the
Chicago River between the Michigan Avenue Bridge, 41[deg]53'20'' N.
087[deg]37'27'' W. and the North Columbus Drive Bascule Bridge,
41[deg]53'19'' N. 087[deg]37'13'' W. [DATUM: NAD 83].
    All persons and vessels shall comply with the instructions of the
Coast Guard Captain of the Port, Sector Lake Michigan, or his or her
on-scene representative. Entry into, transiting, or anchoring within
the safety zone is prohibited unless authorized by the Captain of the
Port, Sector Lake Michigan, or his or her on-scene representative. The
Captain of the Port, Sector Lake Michigan, or his or her on-scene
representative may be contacted via VHF Channel 16.

Regulatory Analyses

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

Regulatory Planning and Review

    This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, and does not
require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order.
    This determination is based on the minimal time that vessels will
be restricted from the zone and the zone is an area where the Coast
Guard expects insignificant adverse impact to mariners from the zones'
activation.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule will have a significant economic impact on
a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will
not have a significant economic impact on a substantial number of small
entities.
    This rule will affect the following entities, some of which might
be small entities: The owners or operators of vessels intending to
transit or anchor in a portion of the Chicago River between 7 a.m. and
9 p.m. daily from July 16 through July 19, 2010.
    This safety zone will not have a significant economic impact on a
substantial number of small entities for the following reasons: This
rule will only be enforced while unsafe conditions exist. Traffic will
only be prohibited from passing through the zone when actual filming is
being conducted. Traffic will likely only be stopped for a short
duration. The entity filming the stunts has represented to the Coast
Guard that any given closure will last approximately ten minutes.
Although the responsible entity can give definite times of the
closures, all efforts will be made to open the waterway to vessel
traffic when closure is not necessary.
    In the event that this temporary safety zone affects shipping,
commercial vessels may request permission from the Captain of The Port,
Sector Lake Michigan, or his or her on scene representative to transit
through the safety zone. The Coast Guard will give notice to the public
via a Broadcast to Mariners that the regulation is in effect.

Assistance for Small Entities

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

Collection of Information

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

Federalism

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

Unfunded Mandates Reform Act

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

Taking of Private Property

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

Civil Justice Reform

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

Protection of Children

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

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

Energy Effects

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

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are

technical standards (e.g., specifications of materials, performance,
design, or operation; test methods; sampling procedures; and related
management systems practices) that are developed or adopted by
voluntary consensus standards bodies.
    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

Environment

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

List of Subjects in 33 CFR Part 165

    Harbors, Marine Safety, Navigation (water), Reporting and record
keeping requirements, Security measures, Waterways.

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

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

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

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

0
2. Add Sec.  165.T10-0646 to read as follows:

Sec.  165.T10-0646  Safety Zone; Transformers 3 Movie Filming, Chicago
River, Chicago, IL

    (a) Location. The safety zone will encompass all U.S. navigable
waters of the Chicago River between the Michigan Avenue Bridge,
41[deg]53'20'' N., 087[deg]37'27'' W. and the North Columbus Drive
Bascule Bridge, 41[deg]53'19'' N., 087[deg]37'13'' W. [DATUM: NAD 83].
    (b) Enforcement period. This regulation will be enforced between 7
a.m. and 9 p.m. daily from July 16 through July 19, 2010. The Captain
of the Port, Sector Lake Michigan, or the on-scene representative may
suspend and restart the enforcement of the safety zone during the
effective period at any time.
    (c) Regulations. (1) In accordance with the general regulations in
section 165.23 of this part, entry into, transiting, or anchoring
within this safety zone is prohibited unless authorized by the Captain
of the Port, Sector Lake Michigan, or his or her on-scene
representative.
    (2) This safety zone is closed to all vessel traffic, except as may
be permitted by the Captain of the Port, Sector Lake Michigan, or his
or her on-scene representative.
    (3) The ``on-scene representative'' of the Captain of the Port,
Sector Lake Michigan, is any Coast Guard commissioned, warrant or petty
officer who has been designated by the Captain of the Port, Sector Lake
Michigan, to act on his or her behalf. The on-scene representative of
the Captain of the Port, Sector Lake Michigan, will be on land in the
vicinity of the safety zone and will have constant communications with
the Chicago Marine Unit vessels that will be on-scene as the
enforcement vessels.
    (4) Vessel operators desiring to enter or operate within the safety
zone shall contact the Captain of the Port, Sector Lake Michigan, or
his or her on-scene representative to obtain permission to do so. The
Captain of the Port, Sector Lake Michigan, or his or her on-scene
representative may be contacted via VHF Channel 16. Vessel operators
given permission to enter or operate in the safety zone must comply
with all directions given to them by the Captain of the Port, Sector
Lake Michigan, or his or her on-scene representative.

    Dated: July 6, 2010.
L. Barndt,
Captain, U.S. Coast Guard, Captain of the Port, Sector Lake Michigan.
[FR Doc. 2010-17470 Filed 7-16-10; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)]
[Notices]
[Pages 46546-46548]
[FR Doc No: 2017-21400]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81771; File No. TP 17-11]

Order Granting Limited Exemptions From Exchange Act Rule 10b-17
and Rules 101 and 102 of Regulation M to VanEck Vectors NDR CMG Long/
Flat Allocation ETF Pursuant to Exchange Act Rule 10b-17(b)(2) and
Rules 101(d) and 102(e) of Regulation M

September 29, 2017.
    By letter dated September 29, 2017 (the ``Letter''), counsel for
VanEck Vectors ETF Trust (the ``Trust''), on behalf of the Trust,
VanEck Vectors NDR CMG Long/Flat Allocation ETF (the ``Fund''), any
national securities exchange on or through which shares issued by the
Fund (``Shares'') may subsequently trade, Van Eck Securities
Corporation (the ``Distributor''), and persons or entities engaging in
transactions in Shares (collectively, the ``Applicants''), requested
exemptions, or interpretive or no-action relief, from Rule 10b-17 of
the Securities Exchange Act of 1934, as amended (the ``Exchange Act''),
and Rules 101 and 102 of Regulation M, in connection with secondary
market transactions in Shares and the creation or redemption of
aggregations of Shares of at least 50,000 shares (``Creation Units'').
    The Trust is registered with the Securities and Exchange Commission
(``Commission'') under the Investment Company Act of 1940, as amended
(``1940 Act''), as an open-end management investment company. The Fund
is an exchange-traded fund (``ETF'') organized as a series of the
Trust. The Fund will seek to provide investment results that closely
correspond, before fees and expenses, to the performance of the Ned
Davis Research CMG US Large Cap Long/Flat Index (the ``Index'').\1\ The
Fund intends, at least initially, to operate as an ``ETF of ETFs'' by
seeking to track the performance of its underlying Index by holding
shares of one or more ETFs (each, an ``Underlying ETF'') whose
investment objective is to track the performance of the S&P 500.\2\
---------------------------------------------------------------------------

    \1\ The Index is a rules-based index that follows a proprietary
model developed by Ned Davis Research, Inc. in conjunction with
Capital Management Group, Inc. To help limit loss associated with
adverse market conditions, the model produces trade signals that
dictate the Index's equity allocation ranging from 100% fully
invested (i.e., ``long'') to 100% in cash (i.e., ``flat''). The
Index 100% replicates the S&P 500 Index (the ``S&P 500'') when the
Index is long and holds U.S. Treasury Bills when the Index is flat
(i.e., it will be allocated to the Solactive 13-week U.S. T-bill
Index). When the Index is not completely long or flat, either 80% or
40% of it will be allocated to the S&P 500, with the remaining
portion (20% or 60% respectively) allocated to U.S. Treasury Bills.
    \2\ The Fund will operate as an ETF of ETFs until the Fund
reaches, in the opinion of the Investment Adviser, an adequate asset
size. When the Fund reaches an adequate size and the Index has an
equity allocation, the Fund will then seek to track the Index by
investing directly in the shares of the 500 companies comprising the
S&P 500. In the rare event the Fund does not operate as an ETF of
ETFs for that day, the Fund will operate to meet the conditions of
the ETF Class Relief, including the Equity ETF Class Letter.
Applicants do not believe that either option will have an effect on
the efficacy of the arbitrage process for the Fund.
---------------------------------------------------------------------------

    In order to track the Index, the Fund will invest at least 80% of
its total assets (but typically far more) in component securities of
the Index (directly or by indirect investments through one or more
Underlying ETFs). The Fund may invest the remaining 20% of its total
assets in securities not included in the Index, money market
instruments, including repurchase agreements or other funds which
invest exclusively in money market instruments, convertible securities,
structured notes, and certain derivatives, which the Investment Advisor
believes will help the Fund track the Index. Depositary receipts not
included in the Index may also be used by the Fund in seeking
performance that

corresponds to the Index.\3\ Except for the fact that the Fund will
operate as an ETF of ETFs, the Fund will operate in a manner similar to
the Underlying ETFs.
---------------------------------------------------------------------------

    \3\ American depositary receipts not included in the Index may
be used by the Fund in seeking performance that corresponds to the
Index, and in managing cash flows, and may count towards compliance
with the Fund's 80% policy.
---------------------------------------------------------------------------

    The Applicants represent, among other things, the following:
     Shares of the Fund will be issued by the Trust, an open-
end management investment company that is registered with the
Commission;
     Creation Units will be continuously redeemable at the net
asset value (the ``NAV'') next determined after receipt of a request
for redemption by the Fund,\4\ and the secondary market price of the
Shares should not vary substantially from the NAV of such Shares;
---------------------------------------------------------------------------

    \4\ The NAV of the Fund generally is determined each business
day as of the close of trading (ordinarily 4:00 p.m., Eastern Time)
on the New York Stock Exchange.
---------------------------------------------------------------------------

     Shares of the Fund will be listed and traded on NYSE Arca,
Inc. or another exchange in accordance with exchange listing standards
that are, or will become, effective pursuant to Section 19(b) of the
Exchange Act (the ``Listing Exchange'');
     All Underlying ETFs in which the Fund invests will either
meet all conditions set forth in relevant class relief, will have
received individual relief from the Commission, or will be able to rely
upon individual relief even though they are not named parties;
     All of the components of the Index will have publicly
available last sale trade information;
     The intra-day indicative value of the Fund per share and
the intra-day value of the Index will be publicly disseminated every 15
seconds throughout the trading day through the facilities of the
Consolidated Tape Association;
     On each business day before the opening of business on the
Listing Exchange, the Fund's custodian, through the National Securities
Clearing Corporation, will make publicly available the list of the
names and the numbers of securities of the Fund's portfolio that will
be applicable that day to creation and redemption requests;
     The Listing Exchange will disseminate continuously every
15 seconds throughout the trading day, through the facilities of the
Consolidated Tape Association, the market value of a Share, and the
Listing Exchange, market data vendors, or other information providers
will disseminate, every 15 seconds throughout the trading day, a
calculation of the intra-day indicative value of a Share;
     The arbitrage mechanism will be facilitated by the
transparency of the Fund's portfolio and the availability of the intra-
day indicative value, the liquidity of securities and other assets held
by the Fund, the ability to acquire such securities, as well as the
arbitrageurs' ability to create workable hedges;
     The Fund will invest solely in liquid securities and
financial instruments;
     The Fund will invest in securities that will facilitate an
effective and efficient arbitrage mechanism and the ability to create
workable hedges;
     The Applicants believe that arbitrageurs are expected to
take advantage of price variations between the Fund's market price and
its NAV; and
     A close alignment between the market price of Shares and
the Fund's NAV is expected.

Regulation M

    While redeemable securities issued by an open-end management
investment company are excepted from the provisions of Rule 101 and 102
of Regulation M, the Applicants may not rely upon that exception for
the Shares.\5\ However, we find that it is appropriate in the public
interest and is consistent with the protection of investors to grant a
conditional exemption from Rules 101 and 102 to persons who may be
deemed to be participating in a distribution of Shares of the Fund as
described in more detail below.
---------------------------------------------------------------------------

    \5\ While ETFs operate under exemptions from the definitions of
``open-end company'' under Section 5(a)(1) of the 1940 Act and
``redeemable security'' under Section 2(a)(32) of the 1940 Act, the
Fund and its securities do not meet those definitions.
---------------------------------------------------------------------------

Rule 101 of Regulation M

    Generally, Rule 101 of Regulation M is an anti-manipulation rule
that, subject to certain exceptions, prohibits any ``distribution
participant'' and its ``affiliated purchasers'' from bidding for,
purchasing, or attempting to induce any person to bid for or purchase
any security which is the subject of a distribution until after the
applicable restricted period, except as specifically permitted in the
rule. Rule 100 of Regulation M defines ``distribution'' to mean any
offering of securities that is distinguished from ordinary trading
transactions by the magnitude of the offering and the presence of
special selling efforts and selling methods. The provisions of Rule 101
of Regulation M apply to underwriters, prospective underwriters,
brokers, dealers, or other persons who have agreed to participate or
are participating in a distribution of securities. The-Shares are in a
continuous distribution and, as such, the restricted period in which
distribution participants and their affiliated purchasers are
prohibited from bidding for, purchasing, or attempting to induce others
to bid for or purchase extends indefinitely.
    Based on the representations and facts presented in the Letter,
particularly that the Trust is a registered open-end management
investment company, that Creation Unit size aggregations of the Shares
of the Fund will be continuously redeemable at the NAV next determined
after receipt of a request for redemption by the Fund, and that a close
alignment between the market price of Shares and the Fund's NAV is
expected, the Commission finds that it is appropriate in the public
interest and consistent with the protection of investors to grant the
Trust an exemption under paragraph (d) of Rule 101 of Regulation M with
respect to the Fund, thus permitting persons participating in a
distribution of Shares of the Fund to bid for or purchase such Shares
during their participation in such distribution.\6\
---------------------------------------------------------------------------

    \6\ Additionally, we confirm the interpretation that a
redemption of Creation Unit size aggregations of Shares of the Fund
and the receipt of securities in exchange by a participant in a
distribution of Shares of the Fund would not constitute an ``attempt
to induce any person to bid for or purchase, a covered security
during the applicable restricted period'' within the meaning of Rule
101 of Regulation M and, therefore, would not violate that rule.
---------------------------------------------------------------------------

Rule 102 of Regulation M

    Rule 102 of Regulation M prohibits issuers, selling security
holders, and any affiliated purchaser of such person from bidding for,
purchasing, or attempting to induce any person to bid for or purchase a
covered security during the applicable restricted period in connection
with a distribution of securities effected by or on behalf of an issuer
or selling security holder.
    Based on the representations and facts presented in the Letter,
particularly that the Trust is a registered open-end management
investment company, that Creation Unit size aggregations of the Shares
of the Fund will be continuously redeemable at the NAV next determined
after receipt of a request for redemption by the Fund, and that a close
alignment between the market price of Shares and the Fund's NAV is
expected, the Commission finds that it is appropriate in the public
interest and consistent with the protection of investors to grant the
Trust an exemption under paragraph (e) of Rule 102 of Regulation M with
respect to the Fund, thus permitting the

Fund to redeem Shares of the Fund during the continuous offering of
such Shares.

Rule 10b-17

    Rule 10b-17, with certain exceptions, requires an issuer of a class
of publicly traded securities to give notice of certain specified
actions (for example, a dividend distribution) relating to such class
of securities in accordance with Rule 10b-17(b). Based on the
representations and facts in the Letter, and subject to the conditions
below, we find that it is appropriate in the public interest, and
consistent with the protection of investors to grant the Trust a
conditional exemption from Rule 10b-17 because market participants will
receive timely notification of the existence and timing of a pending
distribution, and thus the concerns that the Commission raised in
adopting Rule 10b-17 will not be implicated.\7\
---------------------------------------------------------------------------

    \7\ We also note that timely compliance with Rule 10b-
17(b)(1)(v)(a) and (b) would be impractical in light of the nature
of the Fund. This is because it is not possible for the Fund to
accurately project ten days in advance what dividend, if any, would
be paid on a particular record date. Further, the Commission finds,
based on the Applicants' representations in the Letter, that the
provision of notices as described in the Letter would not constitute
a manipulative or deceptive device or contrivance comprehended
within the purpose of Rule 10b-17.
---------------------------------------------------------------------------

Conclusion

    It is hereby ordered, pursuant to Rule 101(d) of Regulation M, that
the Trust, based on the representations and facts presented in the
Letter, is exempt from the requirements of Rule 101 with respect to the
Fund, thus permitting persons who may be deemed to be participating in
a distribution of Shares of the Fund to bid for or purchase such Shares
during their participation in such distribution.
    It is further ordered, pursuant to Rule 102(e) of Regulation M,
that the Trust, based on the representations and the facts presented in
the Letter, is exempt from the requirements of Rule 102 with respect to
the Fund, thus permitting the Fund to redeem Shares of the Fund during
the continuous offering of such Shares.
    It is further ordered, pursuant to Rule 10b-17(b)(2), that the
Trust, based on the representations and the facts presented in the
Letter and subject to the conditions below, is exempt from the
requirements of Rule 10b-17 with respect to transactions in the shares
of the Fund.
    This exemptive relief is subject to the following conditions:
     The Trust will comply with Rule 10b-17 except for Rule
10b-17(b)(1)(v)(a) and (b); and
     The Trust will provide the information required by Rule
10b-17(b)(1)(v)(a) and (b) to the Exchange as soon as practicable
before trading begins on the ex-dividend date, but in no event later
than the time when the Exchange last accepts information relating to
distributions on the day before the ex-dividend date.
    This exemptive relief is subject to modification or revocation at
any time the Commission determines that such action is necessary or
appropriate in furtherance of the purposes of the Exchange Act. Persons
relying upon this exemptive relief shall discontinue transactions
involving the Shares of the Fund, pending presentation of the facts for
the Commission's consideration, in the event that any material change
occurs with respect to any of the facts or representations made by the
Applicants and, consistent with all preceding letters, particularly
with respect to the close alignment between the market price of Shares
and the Fund's NAV. In addition, persons relying on this exemption are
directed to the anti-fraud and anti-manipulation provisions of the
Exchange Act, particularly Sections 9(a) and 10(b), and Rule 10b-5
thereunder.
    Responsibility for compliance with these and any other applicable
provisions of the federal securities laws must rest with the persons
relying on this exemption. This order should not be considered a view
with respect to any other question that the proposed transactions may
raise, including, but not limited to the adequacy of the disclosure
concerning, and the applicability of other federal or state laws to,
the proposed transactions.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(6) and (9).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21400 Filed 10-4-17; 8:45 am]
 BILLING CODE 8011-01-P